If a Blue Chip stock suddenly drops 16% in one day, what do you do? Do you rush to buy? Do you step aside and wait for the dust to clear? Or do you give up on the stock altogether?  #-ad_banner-#There is no single one-size-fits-all answer. Even in our daily lives, we don’t generally buy something simply because it’s on sale. Still, many of us start our shopping trips with a sales rack and make our decisions on a case-by-case basis.  Similar logic applies to the stock market. Costs matter, but so do the reasons why a stock gets a… Read More

If a Blue Chip stock suddenly drops 16% in one day, what do you do? Do you rush to buy? Do you step aside and wait for the dust to clear? Or do you give up on the stock altogether?  #-ad_banner-#There is no single one-size-fits-all answer. Even in our daily lives, we don’t generally buy something simply because it’s on sale. Still, many of us start our shopping trips with a sales rack and make our decisions on a case-by-case basis.  Similar logic applies to the stock market. Costs matter, but so do the reasons why a stock gets a discount. In the case of one of the most recent recommendations in my premium newsletter, The Daily Paycheck, I think bargain-shopping is perfectly appropriate motivation.  —Recommended Link— Flexible Retirement Plan Lets You Schedule Payments When You Want Retirees love this program because they see in advance exactly how much income they’ll make AND exactly when they’ll make it. And it’s 37% safer than the stock market. Check it out here… When shares of Bristol-Myers Squibb (NYSE: BMY) plunged on August 5, there were good reasons why investors suddenly dumped the stock. On that Friday, the company announced that its… Read More

The holiday shopping season is coming, and soon attention will turn to the hot toys every child wants for Christmas.  Aside from being a retailer’s dream, these hot seasonal toys hold the potential to take the manufacturer’s shares skyward. Investors in LeapFrog Entertainment were thrilled in 2011 when the company’s LeapPad, one of the first digital mobile devices for kids, got huge sales leading into the holiday season. #-ad_banner-#One toy maker has already started to see shares surge this year on momentum in its turnaround plan, with cost savings of more than $153 million in 2015 alone.  The company also… Read More

The holiday shopping season is coming, and soon attention will turn to the hot toys every child wants for Christmas.  Aside from being a retailer’s dream, these hot seasonal toys hold the potential to take the manufacturer’s shares skyward. Investors in LeapFrog Entertainment were thrilled in 2011 when the company’s LeapPad, one of the first digital mobile devices for kids, got huge sales leading into the holiday season. #-ad_banner-#One toy maker has already started to see shares surge this year on momentum in its turnaround plan, with cost savings of more than $153 million in 2015 alone.  The company also just overhauled one of its biggest brands. The toy accounts for nearly 20% of total sales and has the potential to see big buying this holiday season. Investors may want to give themselves an early Christmas present before the company’s toys are sold out this holiday. Iconic Brands And Cost-Cutting Turn This Toy Maker Around Shares of Mattel Inc. (Nasdaq: MAT) had been recovering since September of last year, and jumped 14% on the company’s fourth quarter earnings in February. Management delivered $153 million in cost savings last year and stabilized sales as part of a multi-year turnaround.  The… Read More

You don’t need me to tell you that there are two parts to any trade. First, for long trades, we have to buy something. Then, to actually turn paper profits into real money, we have to sell it.  To me, biotech giant Amgen (Nasdaq: AMGN) is at that latter point. After a nearly 20% run since its late-June lows, it looks like it’s time to cash in or flip it around to an outright short. #-ad_banner-# Some may argue that the fundamentals still look decent and that AMGN is trading… Read More

You don’t need me to tell you that there are two parts to any trade. First, for long trades, we have to buy something. Then, to actually turn paper profits into real money, we have to sell it.  To me, biotech giant Amgen (Nasdaq: AMGN) is at that latter point. After a nearly 20% run since its late-June lows, it looks like it’s time to cash in or flip it around to an outright short. #-ad_banner-# Some may argue that the fundamentals still look decent and that AMGN is trading near its all-time high. However, the entire health care sector is in a precarious situation with drug and service providers at the greatest risk as politicians take a stand against their high prices. These groups are underperforming the market and some already display technical breakdowns on the charts.  The first item to take note of on Amgen’s chart is a small double-top formed by the July and August highs. Some may say that the pattern is not valid due to the fact that, after an initial breakdown, the stock moved back above the pattern’s lower border. But I say the… Read More

There’s been a trend emerging in the U.S. dollar (USD) for the past few weeks that makes little sense. At a time when the dollar should be gaining momentum, its value has been drained quicker than a keg of cheap beer at a frat party. According to several sources, the recent drop can be at least partially attributed to technical and algorithmic trading.  When you strip out the commotion and look only at the real data, though, it seems there could be a fair amount of upside in the USD over the next few months. But before I tell you… Read More

There’s been a trend emerging in the U.S. dollar (USD) for the past few weeks that makes little sense. At a time when the dollar should be gaining momentum, its value has been drained quicker than a keg of cheap beer at a frat party. According to several sources, the recent drop can be at least partially attributed to technical and algorithmic trading.  When you strip out the commotion and look only at the real data, though, it seems there could be a fair amount of upside in the USD over the next few months. But before I tell you about how to profit from this situation, let’s break down the basics of my thesis… — Recommended Link — It Won’t Matter Who Wins In November… The right thinks Democrats will sink this country’s economy. The left thinks Republicans will bring economic destruction. Truth is: They’re both right. It doesn’t matter who takes office in January, because history says the market could drop up to 58%. But these three investments are a shoo-in for double and triple-digit returns no matter what happens. The U.S. dollar can have dramatic effects on basically everything in our economy, including the value of other… Read More

“Only when the tide goes out do you discover who’s been swimming naked.” That’s one of my favorite Warren Buffet quotes. It could probably mean lots of things when it comes to investing. But I think it’s a great analogy for earnings seasons. #-ad_banner-#Earnings season is when shareholders and fund managers find out which companies have been connecting and which have been striking out. Right now, it looks like most of the S&P 500 has been swimming naked. America’s largest and most powerful companies are struggling to grow revenue and earnings. According to data from Zacks… Read More

“Only when the tide goes out do you discover who’s been swimming naked.” That’s one of my favorite Warren Buffet quotes. It could probably mean lots of things when it comes to investing. But I think it’s a great analogy for earnings seasons. #-ad_banner-#Earnings season is when shareholders and fund managers find out which companies have been connecting and which have been striking out. Right now, it looks like most of the S&P 500 has been swimming naked. America’s largest and most powerful companies are struggling to grow revenue and earnings. According to data from Zacks Investment research, with 482 companies from the S&P 500 reporting second-quarter results, revenue is up 0.1% from the same period last year while earnings are down 3.6%.  That marks the fifth consecutive quarter that earnings have contracted compared to the same period last year. The last time that happened was in 2008 and 2009 during the financial crisis. However, despite the slow overall growth, a good investor knows there’s always a bull market somewhere. That includes the S&P 500. Despite earnings recession, there are a handful of companies that are bucking the trend. These companies are reporting record revenue and… Read More

For the first time since 1999, all three major U.S. stock indices — the S&P 500, the Dow Jones Industrial Average, and the Nasdaq 100 — all closed at record-high levels on the same day, August 11. One component continues to be missing, however, especially for those who remember the late 1990s: the atmosphere of celebration.  But maybe that’s not so surprising, given that there are fewer people at the party.  According to a Gallup poll in April, only a little more than half of Americans said they had any money invested in the stock market. The 52% that did… Read More

For the first time since 1999, all three major U.S. stock indices — the S&P 500, the Dow Jones Industrial Average, and the Nasdaq 100 — all closed at record-high levels on the same day, August 11. One component continues to be missing, however, especially for those who remember the late 1990s: the atmosphere of celebration.  But maybe that’s not so surprising, given that there are fewer people at the party.  According to a Gallup poll in April, only a little more than half of Americans said they had any money invested in the stock market. The 52% that did fess up to owning stocks matched the lowest level in the 19-year history of Gallup’s survey. Here’s a look at the trend: Percentage of U.S. Adults Invested in the Stock Market   Source: Gallup   To be sure, many investors and potential and former investors remain spooked by the two vicious bear markets the past two decades, along with the psychological — and real — impact of the Great Recession in 2008-2009. Not exactly a confidence booster.  #-ad_banner-#Still, the beat goes on — many of us who have taken the plunge in recent years have… Read More

Sometimes, you’d think that the worst diseases to threaten mankind come from tropical environments. They do.  #-ad_banner-#AIDS came from sub equatorial Africa, as did the Ebola virus. Malaria, tropical. Yellow fever, for which there is no cure or vaccine, tropical. Now the Zika virus which, like Malaria and Yellow Fever, is mosquito borne. With multiple cases and one death being reported in the continental United States, it’s becoming a major public health concern, specifically due to the threat it poses to pregnant women. The babies of pregnant women infected with the virus face the risk of a birth defect known… Read More

Sometimes, you’d think that the worst diseases to threaten mankind come from tropical environments. They do.  #-ad_banner-#AIDS came from sub equatorial Africa, as did the Ebola virus. Malaria, tropical. Yellow fever, for which there is no cure or vaccine, tropical. Now the Zika virus which, like Malaria and Yellow Fever, is mosquito borne. With multiple cases and one death being reported in the continental United States, it’s becoming a major public health concern, specifically due to the threat it poses to pregnant women. The babies of pregnant women infected with the virus face the risk of a birth defect known as microcephaly or a smaller-than-normal skull which can lead to developmental disabilities, brain damage and death. There has been a speculative run up in a handful of biotech companies working on vaccines or treatment. But I’ve been buying shares of a large cap, deeply discounted global pharmaceutical giant who is currently working with the U.S. Army to develop a Zika vaccine that should be ready for human trials by October of this year. You should, too. Sanofi (NYSE: SNY), isn’t exactly a household name when compared to peers such as Pfizer (NYSE: PFE), Eli Lilly (NYSE: LLY) or Merck (NYSE:… Read More

Federal Reserve Chairwoman Janet Yellen gave a speech in Jackson Hole, Wyoming, on Friday, saying that the central bank will likely raise short-term interest rates at least once by the end of the year. The first possible increase could be during the Fed’s policy meeting on Sept. 20-21. But according to the Wall Street Journal, any announcement will likely depend on the results of the Sept. 2 jobs report. If the data disappoint, then the door is still open for a possible rate hike in November or December. #-ad_banner-#From the Journal: “The Fed pushed rates to near zero in December… Read More

Federal Reserve Chairwoman Janet Yellen gave a speech in Jackson Hole, Wyoming, on Friday, saying that the central bank will likely raise short-term interest rates at least once by the end of the year. The first possible increase could be during the Fed’s policy meeting on Sept. 20-21. But according to the Wall Street Journal, any announcement will likely depend on the results of the Sept. 2 jobs report. If the data disappoint, then the door is still open for a possible rate hike in November or December. #-ad_banner-#From the Journal: “The Fed pushed rates to near zero in December 2008, kept them there for seven years and then nudged them up a quarter percentage point last December. Officials began the year expecting to raise rates four times in quarter-point increments but have delayed moving them because economic growth disappointed in the first half of the year and because they were uncertain about developments overseas and about the strength of the U.S. job market after some soft reports. Ms. Yellen said her worries had dissipated. ‘While economic growth has not been rapid, it has been sufficient to generate further improvement in the labor market,’ Ms. Yellen said. Broad measures of… Read More

All major U.S. indices closed lower last week, except for the small-cap Russell 2000. This followed two weeks of mostly sideways, non-directional trading. #-ad_banner-# The Nasdaq continues to negotiate its March 2000 tech-bubble highs amid historically low volatility. Both of these factors continue to warn of the broader market’s vulnerability to at least a minor pullback between now and the end of the third quarter.  Internally, the market may actually be more vulnerable than it looks. All sectors of the S&P 500 except for financials and technology finished in negative… Read More

All major U.S. indices closed lower last week, except for the small-cap Russell 2000. This followed two weeks of mostly sideways, non-directional trading. #-ad_banner-# The Nasdaq continues to negotiate its March 2000 tech-bubble highs amid historically low volatility. Both of these factors continue to warn of the broader market’s vulnerability to at least a minor pullback between now and the end of the third quarter.  Internally, the market may actually be more vulnerable than it looks. All sectors of the S&P 500 except for financials and technology finished in negative territory last week, led lower by utilities (-2.2%) and health care (-1.7%).  However, there is one potential bright spot. The table below, which displays Asbury Research’s metric for tracking investor asset flows in the State Street SPDR sector ETFs, shows that the largest inflows over the past one-week and one-month periods went into energy.   As long as these inflows into energy stocks continue, it bodes well for more strength from this economically sensitive sector, which, like materials and industrials, is correlated to the U.S. economy and the broader stock market. Seasonality Turns Negative In September For the… Read More

Don’t look now, but commodities are finally making a big comeback.  If you peruse the Lifetime Wealth Generators and Undiscovered High-Yielders portfolios in my High-Yield Investing premium newsletter, you won’t find a single stock tied directly to the production of energy or metals. There are several midstream partnerships that transport the stuff, but none that actually dig it out of the ground.  #-ad_banner-#That underweighting has served us well, as commodities have been stuck in a multi-year swoon. Everyone knows that oil plunged from $100 to around $25 per barrel. And gold bugs were dismayed last November when the metal sunk… Read More

Don’t look now, but commodities are finally making a big comeback.  If you peruse the Lifetime Wealth Generators and Undiscovered High-Yielders portfolios in my High-Yield Investing premium newsletter, you won’t find a single stock tied directly to the production of energy or metals. There are several midstream partnerships that transport the stuff, but none that actually dig it out of the ground.  #-ad_banner-#That underweighting has served us well, as commodities have been stuck in a multi-year swoon. Everyone knows that oil plunged from $100 to around $25 per barrel. And gold bugs were dismayed last November when the metal sunk to a 6-year low of $1,070 per ounce, about half its former highs above $1,900.  Copper, platinum, coal, iron ore and many other resources have all been in the same leaky boat.  Just look at the PowerShares DB Commodity Tracking ETF (NYSE: DBC), which reflects the prices of everything from gasoline to zinc to sugar. From the beginning of 2014 through the end of 2015, the fund lost half its value, sliding from $25.08 to $13.36. Along the way, investors yanked out more than $1 billion in assets.  But this cyclical group is making a strong recovery in 2016. In… Read More