“When the going gets weird, the weird turn pro.” – Hunter S. Thompson I know I’ve used this quote before, but it so applicable to so many situations, especially now considering the lofty state of equity markets. Markets do seem to be in weird place. Pundits are almost split down the middle as to whether the current bull run has any more steam left. Some argue that valuations are stretched thin while others continue to pound the table, goading investors to pile in. I’m splitting the difference. The S&P 500 trades at 19.4 times expected earnings. We’ve seen it much richer… Read More

“When the going gets weird, the weird turn pro.” – Hunter S. Thompson I know I’ve used this quote before, but it so applicable to so many situations, especially now considering the lofty state of equity markets. Markets do seem to be in weird place. Pundits are almost split down the middle as to whether the current bull run has any more steam left. Some argue that valuations are stretched thin while others continue to pound the table, goading investors to pile in. I’m splitting the difference. The S&P 500 trades at 19.4 times expected earnings. We’ve seen it much richer in the past. However, there are some visible cracks showing. #-ad_banner-#Some sectors, such as energy and telecom services, are negative for the year. But despite news to the contrary, there are bargains in the market. Previously, I highlighted a consumer staples stock that stood out in another lackluster sector.  One of the most consistently successful value investing strategies is the venerable Dogs of the Dow. Created in 1972, the year I started kindergarten, the remarkable beauty of the Dogs as an investment strategy is its simplicity: Buy the ten highest dividend yielders in the Dow Jones Industrial Average (DJIA).  Here is… Read More

Clues are emerging to what could be one of the biggest trends in 2018. The rate on the 10-year Treasury has jumped 15% since early September and is causing an investor exodus from one segment of the market. The selloff could get worse as rates rise further and a wave of debt threatens these companies’ already precarious financial health. In fact, as investors anxiously wait for tax reform, one proposal could actually cause taxes on this segment of the market to increase. It’s all lining up to be a harsh wake-up from years of debt-fueled growth and is certain to… Read More

Clues are emerging to what could be one of the biggest trends in 2018. The rate on the 10-year Treasury has jumped 15% since early September and is causing an investor exodus from one segment of the market. The selloff could get worse as rates rise further and a wave of debt threatens these companies’ already precarious financial health. In fact, as investors anxiously wait for tax reform, one proposal could actually cause taxes on this segment of the market to increase. It’s all lining up to be a harsh wake-up from years of debt-fueled growth and is certain to create winners and losers. #-ad_banner-#The Next Debt Crisis Threatens An Entire Segment Of The Market High-yield bonds saw 1% of their value wiped out in the first half of November. That may not sound like much, but it’s on pace for the worst month since January 2016.  Investor fears of rising rates and weak earnings for some sectors have caused an exodus out of highly leveraged companies. High-yield bonds in the telecom sector have lost 3.3% so far this month and investors pulled more than $2 billion from high-yield ETFs in just the second week… Read More

Most Americans don’t realize the world’s largest securities market is not the stock market. According to the World Bank, the global value of all publicly traded stocks is somewhere north of $70 trillion. But that’s more than one-third less than the value of the bond market – worth roughly $110 trillion. More importantly, with the explosion of debt financing, bond markets are growing much faster than global stock markets. For the uninitiated, bonds are a type of loan where companies and governments borrow money from investors. In exchange, investors receive interest payments based on the bond’s coupon (interest) rate. The… Read More

Most Americans don’t realize the world’s largest securities market is not the stock market. According to the World Bank, the global value of all publicly traded stocks is somewhere north of $70 trillion. But that’s more than one-third less than the value of the bond market – worth roughly $110 trillion. More importantly, with the explosion of debt financing, bond markets are growing much faster than global stock markets. For the uninitiated, bonds are a type of loan where companies and governments borrow money from investors. In exchange, investors receive interest payments based on the bond’s coupon (interest) rate. The investor continues receiving interest payments until the bond matures. At maturity, the investor receives the final interest payment as well as a return of the original investment. Should the borrower fail to return the principal at maturity, the borrower faces bankruptcy. Now, while the bond market has been growing rapidly, there’s an underlying problem of liquidity bubbling just beneath the surface. You see, prior to the financial crisis, large banks used their balance sheets to facilitate trading in the bond markets. They did this by purchasing large blocks of debt to hold until they could find a buyer for the… Read More

Last week, I told you about our latest report — The Top Stocks For 2018 — and how our subscribers have found it to be the most consistently profitable piece of annual research we publish. I even gave away one of the picks from this year’s report. (To read the issue, go here.) —Sponsored Link— Who Will Emerge As The Largest Marijuana Grower In Canada? As of July 2018, Marijuana will be fully legal in Canada and cannabis stocks are starting to fire back up as a result. But which will emerge as the giants of… Read More

Last week, I told you about our latest report — The Top Stocks For 2018 — and how our subscribers have found it to be the most consistently profitable piece of annual research we publish. I even gave away one of the picks from this year’s report. (To read the issue, go here.) —Sponsored Link— Who Will Emerge As The Largest Marijuana Grower In Canada? As of July 2018, Marijuana will be fully legal in Canada and cannabis stocks are starting to fire back up as a result. But which will emerge as the giants of industry and which will be flash in the pan stocks that are left behind in the bubble? Read this special report to learn more. I know everyone likes a free stock pick, but I really want to drive home just exactly why we believe this report is so important. Because the truth is, it’s not just about the stock picks.  It’s about the investing principles that lead to the stock picks. #-ad_banner-#To recap, I said that we like to focus on companies with the following three traits: 1) Companies that enjoy huge, long-term, advantages over their… Read More

Second chances are rare in the financial world. Once the whole market knows about a price run, it’s often too late to participate. However, there are a few exceptions to the rule. Right now, there’s a massive bull market taking shape that’s similar to the raging dot-com boom of the turn of the century.  While there are significant differences between the two booms, the differences make the new bull market less risky and longer lasting than the original.  If you missed the internet boom of 1997 to 2001, you are not alone. Believe it or not, many investors failed to… Read More

Second chances are rare in the financial world. Once the whole market knows about a price run, it’s often too late to participate. However, there are a few exceptions to the rule. Right now, there’s a massive bull market taking shape that’s similar to the raging dot-com boom of the turn of the century.  While there are significant differences between the two booms, the differences make the new bull market less risky and longer lasting than the original.  If you missed the internet boom of 1997 to 2001, you are not alone. Believe it or not, many investors failed to participate in the exploding stock market during those heady times.  The good news is it’s not too late to participate in the next booming tech market!  #-ad_banner-#Lessons Of The Dot-Com Bubble I can’t say I blame the majority of those who missed the monster profits of the first internet boom. The Nasdaq soared from 1,000 to 5,100-plus, and stocks like Qualcomm (Nasdaq: QCOM) rocketed nearly 3,000% in value. At the end of the frenzy, the Nasdaq hit an outrageous price-to-earnings ratio of 200.  Rightfully fearful of the extreme valuations and warnings from luminaries like Warren Buffett, the majority of… Read More

There are few things that can send a stock soaring like a positive earnings surprise. When a company exceeds expectations, it sends a powerful message to the street that business is booming — or at least improving. High, positive earnings surprises can have a dramatic effect on share price. This effect is on display now, as third-quarter earnings season wraps up. Amazon (Nasdaq: AMZN) delivered one of the best reports of the quarter, with earnings of $0.52 per share blowing past expectations of $0.01. The news sent shares of Amazon soaring 13% in one day, adding a mind-boggling $66 billion… Read More

There are few things that can send a stock soaring like a positive earnings surprise. When a company exceeds expectations, it sends a powerful message to the street that business is booming — or at least improving. High, positive earnings surprises can have a dramatic effect on share price. This effect is on display now, as third-quarter earnings season wraps up. Amazon (Nasdaq: AMZN) delivered one of the best reports of the quarter, with earnings of $0.52 per share blowing past expectations of $0.01. The news sent shares of Amazon soaring 13% in one day, adding a mind-boggling $66 billion to Amazon’s market cap in less than 24 hours. One way to profit from a positive earnings surprise is to predict which companies will beat the Street before it happens. #-ad_banner-#As you can see in the case of Amazon, this can be very profitable. However, it’s also a tricky move to pull off. It’s difficult to predict which companies will beat expectations. After all, you’re going up against the predictions of the world’s most successful and well-informed investment institutions.  Even if you’re right, it’s also difficult to predict how the Street will react to a report. But don’t… Read More