The Dow Jones had a great year in 2016. The leading index delivered a price return of 14% and paid a dividend yield of 2.7% for a total return of almost 17%. Any way you look at it that is an excellent year for U.S. stocks. However, you could have… Read More

The concepts, designs, gadgets — everything that is being showcased — provide a glimpse of the future. Every January thousands of people from around the globe converge on Las Vegas to attend the biggest trade show in the world. Incredible innovations and mind-boggling products are presented at the International Consumer… Read More

Things are finally turning around for income investors. Years of ultra-low interest rates forced income investors to crowd into just a few risky, relatively high-yielding investments. But in 2016, a trifecta of economic occurrences began to improve the income investing landscape for everyone. #-ad_banner-#The first reason is that the FOMC has started to raise interest rates. The December 2015 decision was the first time in a decade that this rate had been changed. The committee made a unanimous vote to increase the Fed’s main interest rate by a quarter-point, to the 0.25% to 0.50% range from the previous 0.00% to… Read More

Things are finally turning around for income investors. Years of ultra-low interest rates forced income investors to crowd into just a few risky, relatively high-yielding investments. But in 2016, a trifecta of economic occurrences began to improve the income investing landscape for everyone. #-ad_banner-#The first reason is that the FOMC has started to raise interest rates. The December 2015 decision was the first time in a decade that this rate had been changed. The committee made a unanimous vote to increase the Fed’s main interest rate by a quarter-point, to the 0.25% to 0.50% range from the previous 0.00% to 0.25%. This rate has since been increased again, this past December, to the range of 0.50% to 0.75%. The increase signals the FOMC’s confidence in the strengthening U.S. economy and what officials see as nascent signs of climbing inflation. Second, the election of Donald Trump resulted in a sharp increase in bond yields. This selloff augmented a trend that started before the presidential election. Yields on the benchmark U.S. bond, the 10-year Treasury note, have surged to 2.31% from a 52-week low of 1.32%. The new administration is expected to put policies in place that will increase inflation, which… Read More

While 2016 may have been the year for the FANG stocks, (Facebook, Amazon, Netflix and Google), a new year and new president mean there’s now a new group to focus on. According to researcher Tom Lee over at Fundstrat Global Advisors, 2017 is going to be the year of CRAP stocks. Although the term conjures a gross image, Lee and his team may actually be on to something in their latest research. Unlike the specific stocks called out in FANG, CRAP stocks are sector-oriented. The term stands for computers, resources, American banks and phone carriers. While I agree with his… Read More

While 2016 may have been the year for the FANG stocks, (Facebook, Amazon, Netflix and Google), a new year and new president mean there’s now a new group to focus on. According to researcher Tom Lee over at Fundstrat Global Advisors, 2017 is going to be the year of CRAP stocks. Although the term conjures a gross image, Lee and his team may actually be on to something in their latest research. Unlike the specific stocks called out in FANG, CRAP stocks are sector-oriented. The term stands for computers, resources, American banks and phone carriers. While I agree with his bullish logic on these sectors, it’s the American banking system that interests me most, and that’s where I’ve selected as the next target for my Profit Amplifier readers and I to trade. Unlike the other sectors, banking stocks can win in several different scenarios, where the others will most likely need a consumer or economic boom to succeed. If all the Trump rally hype turns out to be true, then banks are sure to benefit as consumers spend and borrow more. But even without a full-blown, Trump-fueled economic turnaround, there are still two very strong catalysts… Read More

Grab My New Book FREE! This Special Edition of Investing in the Next Big Thing tells you everything you need to know to get started in Pre-IPO Investing and includes an exclusive bonus chapter revealing 3 startups that I’m telling my clients to buy right now. They are 3 of the best bets for an explosive payoff that I’ve seen out of the 289 firms I’ve reviewed in the past three years. This Special Edition won’t be available on Amazon.com or anywhere else. It will only be available through StreetAuthority. Learn more.​ — Joseph Hogue, CFA I used to laugh when entrepreneurs would pitch… Read More

Grab My New Book FREE! This Special Edition of Investing in the Next Big Thing tells you everything you need to know to get started in Pre-IPO Investing and includes an exclusive bonus chapter revealing 3 startups that I’m telling my clients to buy right now. They are 3 of the best bets for an explosive payoff that I’ve seen out of the 289 firms I’ve reviewed in the past three years. This Special Edition won’t be available on Amazon.com or anywhere else. It will only be available through StreetAuthority. Learn more.​ — Joseph Hogue, CFA I used to laugh when entrepreneurs would pitch my venture capital clients for funding based on the idea that their product was in a new industry with no competition. After years of startup investing, I learned that “no competition” often means a market that just isn’t worth competing in. #-ad_banner-#I’m much more interested in the startup that can bring something new to an established industry. A company that can reinvent a product and take fast market share in a multi-billion dollar industry. Now, that’s a startup that is going to reward early investors. I recently found a company on one of the equity crowdfunding platforms I follow that… Read More

Circuit City, RadioShack, Blockbuster and Borders. The names read like an obituary for American retail over the last ten years. #-ad_banner-#The slow death of traditional brick-and-mortar retail has been one of the clearest trends over the last decade. The combination of slow economic growth and increasing e-commerce sales has already meant bankruptcy for many department stores and retailers will continue to face hard times. Investors have time and again been drawn into ‘value-plays’ on the hope of a rebound in retailers and stocks hit by the trend. Instead of trying to defy the trend, investors need to look for retailers… Read More

Circuit City, RadioShack, Blockbuster and Borders. The names read like an obituary for American retail over the last ten years. #-ad_banner-#The slow death of traditional brick-and-mortar retail has been one of the clearest trends over the last decade. The combination of slow economic growth and increasing e-commerce sales has already meant bankruptcy for many department stores and retailers will continue to face hard times. Investors have time and again been drawn into ‘value-plays’ on the hope of a rebound in retailers and stocks hit by the trend. Instead of trying to defy the trend, investors need to look for retailers that can survive and thrive within it. I’ve found two companies that will do just that with experience-oriented products that can still draw shoppers. These two aren’t waiting around to develop their e-commerce platforms either, and in-store demand will help support sales as online revenue picks up. Rumors Of American Retail’s Untimely Demise Are Not Exaggerated Holiday spending rose 3.6% in 2016 according to the National Retail Federation, a solid gain over the previous year, but the breakout shows a far weaker picture for traditional brick-and-mortar stores. Most of the increase is due to a 12% jump in online… Read More

It’s hard to believe, but we just wrapped up the first full week of trading since Christmas. And one of the major questions for 2017 has been when the Dow Jones Industrial Average will hit the major psychological milestone of 20,000. #-ad_banner-#The Dow has been flirting with the 20K mark since December, moving as close as 50 points on Wednesday, January 11. But what does hitting 20,000 really mean for investors? The short answer is “nothing.” It’s simply our fascination with large round numbers — Y2K, when your odometer clicks to 100,000 miles, making over $100,000 or $1 million in… Read More

It’s hard to believe, but we just wrapped up the first full week of trading since Christmas. And one of the major questions for 2017 has been when the Dow Jones Industrial Average will hit the major psychological milestone of 20,000. #-ad_banner-#The Dow has been flirting with the 20K mark since December, moving as close as 50 points on Wednesday, January 11. But what does hitting 20,000 really mean for investors? The short answer is “nothing.” It’s simply our fascination with large round numbers — Y2K, when your odometer clicks to 100,000 miles, making over $100,000 or $1 million in annual income, etc. On a more psychological front, Dow 20,000 means that those large 1,000 point moves aren’t what they used to be. You see, when the Dow finally doubled from 1,000 to 2,000 in 1987, that move represented a 100% advance. But a climb to 20,000 from 19,000 is a meager 5% rise.  It just so happens that the Dow nearing 20,000 comes at the beginning of a New Year, when analysts and investors try to predict what’s in store for the next 12 months. If you’re interested in this sort of “fortune-telling,” here are a few predictions:… Read More

If I had to provide just two words of guidance to investors about 2017, I would say “expect change.” The new administration will soon be shaking things up in a manner not seen for many decades. There will likely be a loosening of regulatory oversight, a massive uptick in infrastructure spending, and a substantial increase in defense spending as America takes a more hawkish stance on global affairs. #-ad_banner-#While each of these expected macro changes will create opportunity and risk for investors, some of the best opportunities will be created in the defense sector. Over the last five years, defense… Read More

If I had to provide just two words of guidance to investors about 2017, I would say “expect change.” The new administration will soon be shaking things up in a manner not seen for many decades. There will likely be a loosening of regulatory oversight, a massive uptick in infrastructure spending, and a substantial increase in defense spending as America takes a more hawkish stance on global affairs. #-ad_banner-#While each of these expected macro changes will create opportunity and risk for investors, some of the best opportunities will be created in the defense sector. Over the last five years, defense spending has been stifled under the Budget Control Act of 2011. Despite the cuts, the largest firms in the aerospace and defense sector have weathered the storm remarkably well. If you look carefully, this success was only possible with aggressive management action. Stock buybacks, workforce cuts, and ramping up efficiency have all been effectively used to survive. Defense firms have also sought profits via foreign markets and commercial businesses while neglecting their core defense competencies. Even worse, budget cuts have curtailed long term planning, as it’s difficult to take on contracts in an uncertain funding environment. But this tide might… Read More

If you’re frustrated with the low yields this market has to offer, you’re not alone. Finding dependable yields over 4%, much less double-digit yields, is nearly impossible in the current market environment. For instance, the S&P 500 throws off a yield of just 2.1%. Even after the December hike, bonds are barely beating inflation, and the yields on blue-chip stocks are pathetic. This had led some investors to “reach for yield,” i.e., buy risky stocks with higher payouts. More often than not, this strategy leads to big losses. To make matters worse, stocks are trading near all-time highs and carry… Read More

If you’re frustrated with the low yields this market has to offer, you’re not alone. Finding dependable yields over 4%, much less double-digit yields, is nearly impossible in the current market environment. For instance, the S&P 500 throws off a yield of just 2.1%. Even after the December hike, bonds are barely beating inflation, and the yields on blue-chip stocks are pathetic. This had led some investors to “reach for yield,” i.e., buy risky stocks with higher payouts. More often than not, this strategy leads to big losses. To make matters worse, stocks are trading near all-time highs and carry lofty valuations. This makes owning them a riskier proposition than usual. For conservative income investors in particular, this is an incredibly tough market to navigate. Fortunately, there is still a way to generate more income than you ever thought possible from the safest stocks out there. —Recommended Link— You May Not Like Hearing This… Everyone knows that Social Security is in bad shape. But most people don’t realize just how desperate the situation is… to fix Social Security benefits have to be cut by 22% immediately. Or payroll taxes have to jump by 32%. So you’re facing pain whether… Read More