After a 25%-plus move higher this year, many investors are starting to get nervous about the odds of additional upside in emerging-market equities. The market, however, is sending far different signals. The upward surge is far from over. In fact, it may still be in its infancy. There are seven important factors telling me to hold on to my bullish expectations for the sector.  Why I Think Emerging Markets Are Only Going Up 1. Economic Growth Developed markets are experiencing a growth slowdown while emerging markets are in a long-term expansion phase.  While developed markets are forecasted… Read More

After a 25%-plus move higher this year, many investors are starting to get nervous about the odds of additional upside in emerging-market equities. The market, however, is sending far different signals. The upward surge is far from over. In fact, it may still be in its infancy. There are seven important factors telling me to hold on to my bullish expectations for the sector.  Why I Think Emerging Markets Are Only Going Up 1. Economic Growth Developed markets are experiencing a growth slowdown while emerging markets are in a long-term expansion phase.  While developed markets are forecasted to grow by just 2% in 2017, emerging markets are projected to hit 4.5% growth this year. The growth is predicted to climb nearly 5% in 2018.  #-ad_banner-#The BRIC nations (Brazil, Russia, India, and China) create 22% of the global GDP, a figure that continues to climb. An expected 80% of total world GDP growth will come from emerging markets over the next five years, according to the International Monetary Fund (IMF).  India and China’s portion of world GDP has grown by six times since 1970. The G7 nations’ share of world trade has declined from 50% to 30% during… Read More

I’ve been doing a lot of reading these days about my own generation: the millennials. While I’m at the older end of the cohort, and don’t necessarily identify as one, even I will admit that we’re a tough bunch to figure out. You’ve heard the stereotypes — and many of them are true. We’re notoriously fickle, embrace irony at every opportunity, and were colored markedly by technology (as well as the financial crisis). But here’s what you might not know… the millennial population is now 75.4 million, according to the Pew Research Center. That group (born roughly between 1980 and 2000, depending… Read More

I’ve been doing a lot of reading these days about my own generation: the millennials. While I’m at the older end of the cohort, and don’t necessarily identify as one, even I will admit that we’re a tough bunch to figure out. You’ve heard the stereotypes — and many of them are true. We’re notoriously fickle, embrace irony at every opportunity, and were colored markedly by technology (as well as the financial crisis). But here’s what you might not know… the millennial population is now 75.4 million, according to the Pew Research Center. That group (born roughly between 1980 and 2000, depending on the source) now outnumber the 74.9 million baby boomers (late 1940s to 1964). Given this data — especially the fact that older millennials (like myself) are in their early 30s (prime years of consumption) — companies have been trying to wrap their heads around just what it is that makes us tick. There’s big money in that, after all… From my perspective, here’s how the media tends to portray millennials (maybe you’ve found yourself thinking this, too): — Very tech-savvy. — Hate being labeled. — Easily bored, distracted, crave instant gratification, and constantly on the move. — Waiting longer to get married,… Read More

I’m convinced that no one gets a bargain when it comes to buying a new car or showroom furniture. Those deals just don’t exist. But when some investors say the market is too expensive, I’m not convinced. There’s always a bargain somewhere. Granted, it may be a bargain for a reason that will ensure it becomes even cheaper. But it’s usually the case that those who can’t find anything to buy aren’t looking hard enough. Yes, I agree that stock markets are at record highs. Making a broad-based bet on the market moving up could make an investor wonder aloud… Read More

I’m convinced that no one gets a bargain when it comes to buying a new car or showroom furniture. Those deals just don’t exist. But when some investors say the market is too expensive, I’m not convinced. There’s always a bargain somewhere. Granted, it may be a bargain for a reason that will ensure it becomes even cheaper. But it’s usually the case that those who can’t find anything to buy aren’t looking hard enough. Yes, I agree that stock markets are at record highs. Making a broad-based bet on the market moving up could make an investor wonder aloud if he’s paying too much. If he was focusing on the most widely-held names, he’d would be correct. If a bond investor was seeking income, he’d have to buy the longest maturities available to get paid anything. Even then, those yields would be miserly, not to mention the principal risk involved with a longer maturity and the threat of rising rates. Despite those challenges, I’ve found a closed-end fund (CEF) that trades at an attractive discount relative to its net asset value (NAV) and the market, throws off a well above average income stream, and can hedge an entire portfolio… Read More

The current housing market in the United States is undergoing dramatic changes, and there are very few ways for the average American to capitalize on it. Today’s trade is one of them. Most of you probably know that real estate prices have been on the rise for the past few years. Just take a look at the below chart of the S&P Case-Shiller 30 City Index, which recently made a new all-time high. And yes, you are seeing that correctly… real estate prices have now exceeded their previous 2006 highs… the height of the housing boom. Unfortunately, the… Read More

The current housing market in the United States is undergoing dramatic changes, and there are very few ways for the average American to capitalize on it. Today’s trade is one of them. Most of you probably know that real estate prices have been on the rise for the past few years. Just take a look at the below chart of the S&P Case-Shiller 30 City Index, which recently made a new all-time high. And yes, you are seeing that correctly… real estate prices have now exceeded their previous 2006 highs… the height of the housing boom. Unfortunately, the average American isn’t celebrating this achievement, as wage increases haven’t kept up with these costs. For many, the American Dream of owning your house has become exactly that — a dream. ––Recommended Link— Clues From The Ultra-Rich To Grow Your Wealth Billionaires and institutional investors are dumping hedge funds. They’ve already pulled a record $100 billion. What they’re doing with their money now could be the one clue you need to secure your wealth forever… Full story here. In fact, only the wealthiest of the wealthy are seeing their household income increase on the same trajectory as real estate… Read More

The Republican Party’s attempts to “fix” the Affordable Care Act (Obamacare) have been nothing short of disastrous. And if it weren’t for the seriousness of the issue, it would be downright hilarious. Whether you agree the government has a role in healthcare or not, it should be clear to everyone that the federal government has no idea how to solve the myriad problems they themselves create. Incompetent Washington bureaucrats have only made health care worse in America. And sadly, these same bureaucrats will do everything in their power to maintain the status quo. But their incompetence isn’t just relegated to… Read More

The Republican Party’s attempts to “fix” the Affordable Care Act (Obamacare) have been nothing short of disastrous. And if it weren’t for the seriousness of the issue, it would be downright hilarious. Whether you agree the government has a role in healthcare or not, it should be clear to everyone that the federal government has no idea how to solve the myriad problems they themselves create. Incompetent Washington bureaucrats have only made health care worse in America. And sadly, these same bureaucrats will do everything in their power to maintain the status quo. But their incompetence isn’t just relegated to the healthcare debate.  The problems in healthcare mirror the problems of Social Security (OASDI) — although social security’s unfunded liabilities are orders of magnitude the size and scope of healthcare. Unfortunately, the end-result will be the same. —Sponsored Link— Big Tobacco’s Punishment: A Long Time Coming In November of 1998, the “Big Four of Big Tobacco” were sued for using misleading advertisements and manipulating scientific research. And in a landmark settlement they agreed to pay a historic sum of money in perpetuity to those affected. We estimate they’ve been paying out about $686 million a… Read More

Cash is the lifeblood of every company. It is the core ingredient that enables corporations to enrich their shareholders and thrive as a business. Without cash flow, a business will wither on the vine even faster than a plant without water.  #-ad_banner-#However, many fail to consider a company’s cash position when evaluating investments. Cash-rich stocks not only often boast higher dividends but can allow a company to support its own stock price through buybacks. Cash can also build a strong moat that provides the strength needed to make it through economic downturns. Finding a company with a cash-heavy balance sheet… Read More

Cash is the lifeblood of every company. It is the core ingredient that enables corporations to enrich their shareholders and thrive as a business. Without cash flow, a business will wither on the vine even faster than a plant without water.  #-ad_banner-#However, many fail to consider a company’s cash position when evaluating investments. Cash-rich stocks not only often boast higher dividends but can allow a company to support its own stock price through buybacks. Cash can also build a strong moat that provides the strength needed to make it through economic downturns. Finding a company with a cash-heavy balance sheet in a defensive sector is a powerful way to protect your wealth from market downturns. My favorite defensive sector is consumer staples. Consumers will always spend on necessities like food and beverages regardless of economic conditions. In fact, the sector is up over 10% this year and is poised to continue its solid performance, even as the “Trump trade” starts to unwind.  That’s why I expect these five stocks to be productive investments well into the future.  1. Coca Cola (NYSE: KO) This lynchpin stock in the American economy has suffered lackluster performance recently, with losing 1.5%  over the… Read More

So far, it hasn’t been a very good year for real estate investment trusts (REITs).  However, this isn’t to say these stocks have performed badly as a whole.  So far this year, the Dow Jones Equity REIT Total Return Index is up about 3.8%. Even though it’s less than the return of the market — the S&P 500 index is up more than 13% over the same period — these aren’t the numbers to really complain about. Especially in the context of this market environment. As we move a little more than six months into the year, the U.S. Federal… Read More

So far, it hasn’t been a very good year for real estate investment trusts (REITs).  However, this isn’t to say these stocks have performed badly as a whole.  So far this year, the Dow Jones Equity REIT Total Return Index is up about 3.8%. Even though it’s less than the return of the market — the S&P 500 index is up more than 13% over the same period — these aren’t the numbers to really complain about. Especially in the context of this market environment. As we move a little more than six months into the year, the U.S. Federal Reserve has already hiked interest rates twice — something that many had anticipated would trigger a REIT sell-off.  So, the good news is that the sector and its investors are taking the rate hikes in stride — so far, at least. But bad news is hiding in plain sight. The performance among REIT subsectors has been widely divergent, as the sector’s investors sold off stocks impacted by some of the major economic shifts. I’m talking about the retail business, the big changes that this industry faces, and the subsequent reaction of the market.  According to REIT.com, the weakest two sectors… Read More