By just about any measure, one of the hardest things for an investor to do is decide when the time is ripe to start selling some, or all, of a portfolio. For me, that time has arrived. Now, don’t get me wrong. I’m not selling my entire portfolio and moving to cash. But it is time to sell some of my holdings because, for me, the market is getting into dangerous territory.  And I’m becoming more convinced a correction is coming. Here’s why… #-ad_banner-#The Federal Reserve has acted stupidly in keeping interest rates at artificially low levels for such a… Read More

By just about any measure, one of the hardest things for an investor to do is decide when the time is ripe to start selling some, or all, of a portfolio. For me, that time has arrived. Now, don’t get me wrong. I’m not selling my entire portfolio and moving to cash. But it is time to sell some of my holdings because, for me, the market is getting into dangerous territory.  And I’m becoming more convinced a correction is coming. Here’s why… #-ad_banner-#The Federal Reserve has acted stupidly in keeping interest rates at artificially low levels for such a long time. And because real long-term interest rates remain artificially low, any sudden bond market sneeze could blow the lid off the stock market. You see, should the bubble burst in the bond market, rates are likely to rocket higher over a relatively short time. Now, you may ask what might precipitate such an event? Janet Yellen has made known her desire to unwind the Fed’s balance sheet. I say “amen” to that. But doing so at a time when interest rates are rising is fraught with danger. That’s because when the central bank withdraws liquidity by selling its bond… Read More

It’s on every investor’s mind…   “When is this bull market going to end?”   I wish I knew. But I can’t predict the future any better than you can.   What I can tell you is that I’ve been keeping a close eye on a handful of indicators that have historically provided signs of a looming pullback, correction and/or recession — and they’re telling me that we’re not quite there yet.   But the cracks are beginning to show…   Back in June, I told readers of my premium Maximum Profit service about how my system can identify underlying… Read More

It’s on every investor’s mind…   “When is this bull market going to end?”   I wish I knew. But I can’t predict the future any better than you can.   What I can tell you is that I’ve been keeping a close eye on a handful of indicators that have historically provided signs of a looming pullback, correction and/or recession — and they’re telling me that we’re not quite there yet.   But the cracks are beginning to show…   Back in June, I told readers of my premium Maximum Profit service about how my system can identify underlying trends on Wall Street and in the market. I covered how it spotted the feverish pace of share buybacks, the soaring number of stocks with high nominal prices and, of course, how my system had 60% of our portfolio in cash before the market fell as much as 9% at the beginning of 2016.   This week it flashed something a bit more alarming… Something that flies directly in the face of what all the major financial news outlets are telling us.  —Recommended Link— The Best Thing That Ever Came Out Of Washington You know what IRAs and 401(k)s can… Read More

Recently my team and I have been telling my readers about a quiet revolution that’s taking place thanks to eccentric billionaire Elon Musk and his band of scientists at Tesla Motors (Nasdaq: TSLA). You see, for years they’ve been working feverishly at their lab in Fremont, California on a battery that could provide enough energy to power a house. Last year, news came along that they’d finally broken through. And now, for the first time in decades, we could see the entire utility sector turned on its head as a result — leading to massive gains for early investors. As… Read More

Recently my team and I have been telling my readers about a quiet revolution that’s taking place thanks to eccentric billionaire Elon Musk and his band of scientists at Tesla Motors (Nasdaq: TSLA). You see, for years they’ve been working feverishly at their lab in Fremont, California on a battery that could provide enough energy to power a house. Last year, news came along that they’d finally broken through. And now, for the first time in decades, we could see the entire utility sector turned on its head as a result — leading to massive gains for early investors. As you can see, Tesla’s battery storage device looks nothing like your old-fashioned AA battery. It’s a sleek, compact unit that you can mount on the wall in your garage. One single, stand-alone unit delivers enough power to take an entire home completely off the grid. Simply charge it with a solar panel, windmill or any other power source, and you’ve got all the energy you need. Thanks to Tesla, the world is about to see that an energy sea-change has been quietly unfolding before their eyes for several years now. And many of the world’s greatest investors are… Read More

Many people seem to believe that history began when they first became aware of the world around them. At least, that’s how everyone acts. In some areas, we never seem to learn from history. Too many of us believe everything we see is unprecedented. While that may truly apply to a few things — I, for one, cannot find a historical precedent for the idea of “Keeping Up with the Kardashians” — much of what we are seeing now has happened before. In the stock market, we also see familiar patterns. Stocks are overvalued — certainly not the first time… Read More

Many people seem to believe that history began when they first became aware of the world around them. At least, that’s how everyone acts. In some areas, we never seem to learn from history. Too many of us believe everything we see is unprecedented. While that may truly apply to a few things — I, for one, cannot find a historical precedent for the idea of “Keeping Up with the Kardashians” — much of what we are seeing now has happened before. In the stock market, we also see familiar patterns. Stocks are overvalued — certainly not the first time that’s happened. However, this time, we are seeing a rather extreme valuation. Below is a chart comparing the value of the stocks in the S&P 500 to the gross domestic product (GDP). That ratio is shown as the red line. The blue line is a broader indicator that compares the value of exchange-listed stocks to GDP.  Both measures show stocks are more overvalued now than then they were even before the 2008 bear market. Valuation is not a timing tool. Stocks can remain overvalued for years. But it is a warning. History tells us that, when stocks do… Read More

Retirees searching for income have been forced to make an uncomfortable compromise. With bond yields trading near a record low for most of the last eight years because of the financial crisis, many retirees were forced to shift out of bonds and into dividend stocks. This solved the problem in the short run. But in the long run stock dividends are much less reliable than bond yields. Depressions, world wars, and recessions have forced even the best companies to cut their dividend payments. That’s why I want to share one of the most reliable dividend payers in the history of… Read More

Retirees searching for income have been forced to make an uncomfortable compromise. With bond yields trading near a record low for most of the last eight years because of the financial crisis, many retirees were forced to shift out of bonds and into dividend stocks. This solved the problem in the short run. But in the long run stock dividends are much less reliable than bond yields. Depressions, world wars, and recessions have forced even the best companies to cut their dividend payments. That’s why I want to share one of the most reliable dividend payers in the history of the stock market. This S&P 500 leader has been paying a dividend for 132 years, surviving all the traumatic global events of the last century and then some.  If you’re looking for one of the most reliable dividends on the planet, this is a good place to start. Consolidated Edison (NYSE: ED) is one of the oldest utility companies in the United States, founded all the way back in 1823 — almost 200 years ago. Since then, Con Ed has evolved into one of the largest energy companies in the country, reporting revenue of $13 billion in 2016 and assets… Read More

The much-heralded “Trump Trade” has started to unravel. Despite our new President’s best efforts, the economic reality of implementing policies has begun to weigh on market sentiment.  Despite 2017 being a successful year for the stock market so far, investors are scrambling to locate the next hot sector and stock. It seems new highs in the major indexes are being hit on an almost daily basis without a significant pull back. At this point, professional investors are asking just how much more upside the market can offer. The small-cap sector, however, has not kept up with the rest of the… Read More

The much-heralded “Trump Trade” has started to unravel. Despite our new President’s best efforts, the economic reality of implementing policies has begun to weigh on market sentiment.  Despite 2017 being a successful year for the stock market so far, investors are scrambling to locate the next hot sector and stock. It seems new highs in the major indexes are being hit on an almost daily basis without a significant pull back. At this point, professional investors are asking just how much more upside the market can offer. The small-cap sector, however, has not kept up with the rest of the market this year. While the S&P 500 is higher by 9%, the small-cap-based Russell 2000 is only higher by about 1%. Small caps with solid fundamentals riding on developing trends may represent an untapped bastion of upside potential. 5 Small-Caps Poised For Gains 1. MACOM Technology Solutions (Nasdaq: MTSI) Shares of this analog semiconductor company plunged into the deep value zone on a third-quarter miss, setting up an ideal buying opportunity for forward-looking investors. Boasting a market cap of just under $3 billion, this Lowell, Massachusetts-based technology company specializes in telecom optical components and data centers. MACOM’s primary… Read More

One type of investment that’s typically shunned in a rising interest rate environment is real estate investment trusts, or REITs. That’s because higher rates mean higher borrowing costs — literally the price of doing business for REITs — which can weigh on returns for investors. Also, as rates move higher, lower-risk fixed-income investments, including Treasuries, become attractive again. But not all REITs are created equal. Many can withstand the higher rates because the rising rates usually accompany an improving economy, which in turn is good for business.  And lest you think real estate is only condos and office buildings, say… Read More

One type of investment that’s typically shunned in a rising interest rate environment is real estate investment trusts, or REITs. That’s because higher rates mean higher borrowing costs — literally the price of doing business for REITs — which can weigh on returns for investors. Also, as rates move higher, lower-risk fixed-income investments, including Treasuries, become attractive again. But not all REITs are created equal. Many can withstand the higher rates because the rising rates usually accompany an improving economy, which in turn is good for business.  And lest you think real estate is only condos and office buildings, say hello to Crown Castle International Corp. (NYSE: CCI), the largest provider of shared wireless infrastructure in the United States. Crown Castle is dominant in a sector where barriers to entry are high and the threat of excessive supply is minimal. It’s also in a position to improve its business standing because demand for its properties is growing.  And the good news for investors is that Crown Castle recently committed to increase its dividend — good news in any kind of market, but especially in this dividend-starved one.  And because it’s a REIT, which means it has to distribute at least… Read More

The president’s call for a $1 trillion increase in infrastructure spending seems to have been put on hold, depressing investor sentiment for construction and infrastructure stocks this year.  While we wait for the legislative agenda to clear the way for increased fiscal stimulus, Mother Nature may soon be sending a natural force to boost spending. The National Oceanic and Atmospheric Administration (NOAA) recently upgraded its forecast for this year’s hurricane season — and it could be one of the worst in more than a decade. Weather patterns in the Atlantic continue to build, and all the… Read More

The president’s call for a $1 trillion increase in infrastructure spending seems to have been put on hold, depressing investor sentiment for construction and infrastructure stocks this year.  While we wait for the legislative agenda to clear the way for increased fiscal stimulus, Mother Nature may soon be sending a natural force to boost spending. The National Oceanic and Atmospheric Administration (NOAA) recently upgraded its forecast for this year’s hurricane season — and it could be one of the worst in more than a decade. Weather patterns in the Atlantic continue to build, and all the ingredients are there for another superstorm. #-ad_banner-#When Superstorm Sandy hit the east coast in October 2012, the S&P 500 tumbled 4% over two weeks and it took the rest of the year to recover as the nation assessed the damage. But I’ve found five infrastructure and power companies that have continuously outperformed the market during high-activity hurricane years. Not only have these five stocks outperformed the S&P 500 by an average of 18% during the worst four hurricane seasons of the past decade, but they also outperformed during the six-weeks after hurricane season when higher sales started showing through in… Read More