The truth will make you sick. Technically it’s public knowledge, but I can tell you — it’s Congress’ dirty little secret. #-ad_banner-#Congress is rich. Unbelievably rich. And until just recently, insider trading laws didn’t apply to Congress. So, what are the most popular stocks owned by Congress? I’ll tell you! I don’t know which is worse: The fact that insider trading was legal for some of our nation’s wealthiest politicians… or that Congress refused to do anything about it for decades.  “A few lawmakers proposed a bill that would prevent members and employees of Congress from trading securities based on… Read More

The truth will make you sick. Technically it’s public knowledge, but I can tell you — it’s Congress’ dirty little secret. #-ad_banner-#Congress is rich. Unbelievably rich. And until just recently, insider trading laws didn’t apply to Congress. So, what are the most popular stocks owned by Congress? I’ll tell you! I don’t know which is worse: The fact that insider trading was legal for some of our nation’s wealthiest politicians… or that Congress refused to do anything about it for decades.  “A few lawmakers proposed a bill that would prevent members and employees of Congress from trading securities based on nonpublic information they obtain. The legislation has languished since 2006,” according to The Wall Street Journal.  That was, the legislation languished until 60 Minutes — one of the most-respected investigative journalism programs on television — dedicated a segment to the issue. Here’s a portion of what they had to say…        “In mid-September 2008, with the Dow Jones Industrial Average still above 10,000, Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke were holding closed-door briefings with congressional leaders, and privately warning them that a global financial meltdown could occur within a few days. One of those… Read More

President Obama hasn’t come out with his own “crisis of confidence” speech as did President Carter, but there is definitely an air of economic malaise that is holding the country back.  Even as unemployment has dropped to below 5% and job numbers have risen, the U.S. economy has continued to struggle to post any kind of substantial growth. Four of the past five quarters have seen GDP growth of 2% or less, which is not the kind of progress you would expect in a bull market. #-ad_banner-#But there is a glass-is-half-full perspective to this new normal of slow growth. One… Read More

President Obama hasn’t come out with his own “crisis of confidence” speech as did President Carter, but there is definitely an air of economic malaise that is holding the country back.  Even as unemployment has dropped to below 5% and job numbers have risen, the U.S. economy has continued to struggle to post any kind of substantial growth. Four of the past five quarters have seen GDP growth of 2% or less, which is not the kind of progress you would expect in a bull market. #-ad_banner-#But there is a glass-is-half-full perspective to this new normal of slow growth. One sector may be in an economic sweet spot where it benefits from low input costs and enjoys pricing power that will help margins expand. There is one company within this sector not only benefits from the economic outlook but also from the potential for several big catalysts that could play out before the end of the year. Is The New Normal Of Weak Economic Growth Bad For All Stocks? The advance estimate for U.S. second quarter GDP growth will be released on July 29, with market expectations for 2.3% on a seasonally adjusted annual rate. That would be more… Read More

In today’s market, the energy sector is an enigma. On the one hand, oil and gas prices have rallied mightily since hitting historic lows in January — a strong data point for those who believe the multi-year energy cycle has turned northward. On the other hand, energy prices are down more than 10% since early June, providing fodder for those who argue that energy will remain in the doldrums a while longer.  #-ad_banner-#The ambiguity derives in part from the economic backdrop. In the United States, the world’s largest consumer of oil and gas, the economy is growing steadily though slowly,… Read More

In today’s market, the energy sector is an enigma. On the one hand, oil and gas prices have rallied mightily since hitting historic lows in January — a strong data point for those who believe the multi-year energy cycle has turned northward. On the other hand, energy prices are down more than 10% since early June, providing fodder for those who argue that energy will remain in the doldrums a while longer.  #-ad_banner-#The ambiguity derives in part from the economic backdrop. In the United States, the world’s largest consumer of oil and gas, the economy is growing steadily though slowly, with employment rising and personal incomes starting to inch up. That’s a bullish sign for consumption of oil and gas. But around the world, economic indicators are flashing yellow, not green. China, Brazil, Japan, Europe? Don’t look for strong demand growth there. And the UK’s shocking exit from the European Union has only made analysts more jittery. But economic factors explain only part of what drives energy prices — and the related, but not identical, earnings of energy companies. As with any commodity, energy prices tend to move in cycles that are driven not only by demand but by supply. Read More

I recently announced a major shift in my premium newsletter, High-Yield Investing. To put it simply, I’m going global. Now, a decent number of the current holdings in my premium newsletter, High-Yield Investing, are based abroad. But we simply haven’t made looking for foreign yielders a major focus. We’re going to change that. #-ad_banner-#Most investors automatically assume that U.S. dividend payers are the best. Not so fast. As I’ll explain in a moment, by only looking at American companies for income, you’re severely limiting your choices. By changing the directive of my newsletter from primarily U.S.-focused to a global focus… Read More

I recently announced a major shift in my premium newsletter, High-Yield Investing. To put it simply, I’m going global. Now, a decent number of the current holdings in my premium newsletter, High-Yield Investing, are based abroad. But we simply haven’t made looking for foreign yielders a major focus. We’re going to change that. #-ad_banner-#Most investors automatically assume that U.S. dividend payers are the best. Not so fast. As I’ll explain in a moment, by only looking at American companies for income, you’re severely limiting your choices. By changing the directive of my newsletter from primarily U.S.-focused to a global focus means I now have the freedom to leave no stone unturned in the search for income. That means my subscribers can now rely on one source to build a well-rounded portfolio and truly earn the highest dividends the world has to offer.  The Case For International Income For a variety of reasons, the average publicly traded large-cap U.S. firm carries a lower dividend yield than those in many other countries. That doesn’t mean you can’t find plenty of excellent high-yield opportunities on American soil; some of the world’s best high-income stocks are U.S.-based. But to truly maximize the income-generating… Read More

My friends all know that I’m not a new car buyer. I can’t rationalize the instant depreciation signing new car paperwork creates. It would probably keep me up at night. Recently, a client came to me dead set on buying a new Lexus ES. Then she asked my opinion. She wasn’t pleased with my answer, which ended with me saying “… a complete waste of money you and I have worked so hard together to preserve and grow.” It was clear she had made up her mind on a new car. So I suggested and alternative: why not by a… Read More

My friends all know that I’m not a new car buyer. I can’t rationalize the instant depreciation signing new car paperwork creates. It would probably keep me up at night. Recently, a client came to me dead set on buying a new Lexus ES. Then she asked my opinion. She wasn’t pleased with my answer, which ended with me saying “… a complete waste of money you and I have worked so hard together to preserve and grow.” It was clear she had made up her mind on a new car. So I suggested and alternative: why not by a brand new Toyota Avalon? It’s the same car. #-ad_banner-#Everyone knows that Lexus is the luxury brand of Toyota Motor Corp. (NYSE: TM). And, like their American counterparts, Toyota builds its brands on the same basic platform. A 2016 Lexus ES 350, built on the Avalon platform, has a base price of around $39,000. The Toyota Avalon has a base price of around $33,000. An 18% premium for basically the same automobile. Not a good way to deploy money. I’m also seeing similar behavior as equity markets grind higher. As markets hiccupped recently with the Brexit crisis, cautious investors who wanted… Read More

Recently I’ve 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. Earlier this 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… Read More

Recently I’ve 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. Earlier this 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. #-ad_banner-#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… Read More

After a record-setting rally in bonds, the better-than-expected June jobs report gave bond traders an excuse to bank some fat profits. However, a look under the hood shows that, structurally, nothing has really changed. The bull market in bonds and trend toward lower interest rates remain intact. And that is why I’m now looking for a good place to buy the dip… in the utilities sector. #-ad_banner-# Despite this week’s pause in bond prices, the yield curve — the yield on the 10-year Treasury note minus the yield on the… Read More

After a record-setting rally in bonds, the better-than-expected June jobs report gave bond traders an excuse to bank some fat profits. However, a look under the hood shows that, structurally, nothing has really changed. The bull market in bonds and trend toward lower interest rates remain intact. And that is why I’m now looking for a good place to buy the dip… in the utilities sector. #-ad_banner-# Despite this week’s pause in bond prices, the yield curve — the yield on the 10-year Treasury note minus the yield on the two-year note — is still in a flattening trend and narrower than it has been in years. The flatter it gets, the more likely the economy will see problems. Banks in particular find it more difficult to profit when their cost of money, borrowed at the short-term rate, is close to or even greater than revenue received at the long-term loan or mortgage rate. The trend around the world is for government bonds to offer negative interest rates. Given the choice between German or Swiss bonds at negative yields and the 10-year U.S. Treasury note at 1.5%, it’s pretty obvious… Read More

The Brexit selloff has turned to gains for the major indices, but a few sectors are still trading lower and with an air of uncertainty around unknown risks. In response to the uncertainty about the regional economy, trade and the ability to move workers easily investors are focusing on the negative consequences of the vote.  #-ad_banner-#One company in particular could see an upside in overall sales, as well as a higher market share in its business segment.  If the potential for stronger sales were not enough, shares are trading at a 35% discount to the long-term price multiple. Air Traffic… Read More

The Brexit selloff has turned to gains for the major indices, but a few sectors are still trading lower and with an air of uncertainty around unknown risks. In response to the uncertainty about the regional economy, trade and the ability to move workers easily investors are focusing on the negative consequences of the vote.  #-ad_banner-#One company in particular could see an upside in overall sales, as well as a higher market share in its business segment.  If the potential for stronger sales were not enough, shares are trading at a 35% discount to the long-term price multiple. Air Traffic Is Improving And Could Be Ready To Jump Ryanair Holdings (Nasdaq: RYAAY) is Europe’s largest airline by passenger traffic with service throughout the region, counting Britain as its single largest market. Shares plunged 17.6% after the Brexit vote and are still 19% off their 52-week high set in December.  Shares have tumbled despite strong passenger traffic growth. June traffic was up nearly one million passengers to 10.6 million compared to 9.5 million in June 2015 even after having to cancel hundreds of French flights due to a strike by air traffic controllers. The company’s load factor, the percentage of… Read More

#-ad_banner-#I have some important news to share with you today. Readers of our premium income advisory, The Daily Paycheck, know that longtime Chief Investment Strategist Amy Calistri recently learned that her mother has cancer. In light of this difficult news, Amy decided to step away from her role and focus on caring for her family. I’ll introduce Amy’s replacement in a moment, but first, I’d be remiss if I didn’t say a few things about my colleague and what she’s meant to us as well as her valued subscribers. We’ve learned much from Amy over the years. And… Read More

#-ad_banner-#I have some important news to share with you today. Readers of our premium income advisory, The Daily Paycheck, know that longtime Chief Investment Strategist Amy Calistri recently learned that her mother has cancer. In light of this difficult news, Amy decided to step away from her role and focus on caring for her family. I’ll introduce Amy’s replacement in a moment, but first, I’d be remiss if I didn’t say a few things about my colleague and what she’s meant to us as well as her valued subscribers. We’ve learned much from Amy over the years. And there’s perhaps no greater testament to that by looking at the results she’s produced in The Daily Paycheck. Here’s how she recapped her experience with the Daily Paycheck system in a parting note to her subscribers:       “It takes a bit of patience to be a Daily Paycheck investor. It’s not a get-rich-quick scheme. But with a little time and patience, The Daily Paycheck strategy can make a significant difference in anyone’s life. Let’s see how patience has paid off for us so far… In the roughly six and a half years… Read More