Just when things seemed calm, investors found reason to panic. In a historic referendum vote, citizens of the United Kingdom narrowly voted to exit the European Union. The fallout was immediate, as markets around the world plummeted. #-ad_banner-#The UK’s blue-chip FTSE 100 index declined about 2.5% Friday, while its currency, the pound, fell to levels not seen since 1985. Other European exchanges fared even worse. The Stoxx Europe 600 tumbled 7%, while the German DAX fell 6.8% and the French CAC 40 dropped 7%. Even the Japanese Nikkei index closed down… Read More

Just when things seemed calm, investors found reason to panic. In a historic referendum vote, citizens of the United Kingdom narrowly voted to exit the European Union. The fallout was immediate, as markets around the world plummeted. #-ad_banner-#The UK’s blue-chip FTSE 100 index declined about 2.5% Friday, while its currency, the pound, fell to levels not seen since 1985. Other European exchanges fared even worse. The Stoxx Europe 600 tumbled 7%, while the German DAX fell 6.8% and the French CAC 40 dropped 7%. Even the Japanese Nikkei index closed down 7.9%. U.S. markets felt the pain, too, with the Dow falling more than 600 points, or 3.4%, while the S&P 500 lost 3.6%. But it was fear that had the biggest day of all. As I’ve discussed before, the Volatility S&P 500 (VIX) index is a measure of how much volatility premium is factored into the price of options, but it’s also commonly used as a gauge of investors’ level of fear. A low VIX signals traders expect a slow, steady rise in stocks. A high VIX means investors expect rough waters ahead. Read More

To paraphrase the late, great Hunter S. Thompson, “When the going in Europe gets weird, the weird go to Switzerland”. And now, thanks to the Brexit vote, things are officially weird in Europe. Throughout history, whenever things got dicey in Europe, people with assets have always fled to the safety of Swiss banks and even the country itself. Where were the von Trapps from “The Sound of Music” going to escape the Nazis? Yep. Switzerland. And my guess is that Captain von Trapp had some cash stashed in Geneva as well. #-ad_banner-#So will the new Brexit-induced cracks in the EU… Read More

To paraphrase the late, great Hunter S. Thompson, “When the going in Europe gets weird, the weird go to Switzerland”. And now, thanks to the Brexit vote, things are officially weird in Europe. Throughout history, whenever things got dicey in Europe, people with assets have always fled to the safety of Swiss banks and even the country itself. Where were the von Trapps from “The Sound of Music” going to escape the Nazis? Yep. Switzerland. And my guess is that Captain von Trapp had some cash stashed in Geneva as well. #-ad_banner-#So will the new Brexit-induced cracks in the EU stimulate asset migration to Switzerland? I think so. Switzerland is not part of the European Union (EU) or the common euro currency. However, the country maintains a solid, cooperative relationship with the EU — and having a stable, standalone currency in the Swiss franc and a well-regulated, albeit private, banking system make Swiss banks an attractive option for fearful wealthy Europeans.  Of course, customer and asset flows also mean profits which are why investors should have a look at Swiss bank stocks right now. Here are two timely ideas. With a global financial services footprint, Credit Suisse Group (NYSE: CS)… Read More

Jessie Livermore was one of the greatest traders of all time. He first began trading stocks nearly a hundred years ago, making and losing multi-million dollar fortunes several times over.  His life and trading methods are recounted in the 1923 book “Reminiscences of a Stock Operator,” by Edwin LeFerve. The book is considered a classic among traders and is still read to this day (the hardback retails for $187.95 on Amazon).  #-ad_banner-#Livermore began his career in what were called “bucket shops” — typically a warehouse or storefront where smaller speculators could make bets on the price movements of stocks (although… Read More

Jessie Livermore was one of the greatest traders of all time. He first began trading stocks nearly a hundred years ago, making and losing multi-million dollar fortunes several times over.  His life and trading methods are recounted in the 1923 book “Reminiscences of a Stock Operator,” by Edwin LeFerve. The book is considered a classic among traders and is still read to this day (the hardback retails for $187.95 on Amazon).  #-ad_banner-#Livermore began his career in what were called “bucket shops” — typically a warehouse or storefront where smaller speculators could make bets on the price movements of stocks (although actual shares were rarely bought or sold). Of course, this practice was highly risky, since corruption was rampant and the bucket shops allowed individuals to make bets on as little as 1% margin. But somehow, Livermore was able to make $1,000 at the age of 15 (a small fortune back then). Later in life, he moved to New York and began trading in more legitimate markets. Among his accomplishments: — He shorted Union Pacific Railroad before the 1906 San Francisco earthquake — Shorted the market before the Panic of 1907 — Made… Read More

With the Brexit dominating the news and fraying traders’ nerves, it seems crazy to think a footwear maker would be poised to rally by double digits. However, the chart of Crocs (Nasdaq: CROX), the maker of some rather odd shoes, is beautifully set up to do so. Crocs is a love-to-hate brand. Its “ugly” shoes are revered by fans for their comfort and functionality much to the horror of anyone with a fashion sense. Fortunately, we don’t need to concern ourselves with the company’s reputation. The only thing that matters is gains, and that is what the stock is poised… Read More

With the Brexit dominating the news and fraying traders’ nerves, it seems crazy to think a footwear maker would be poised to rally by double digits. However, the chart of Crocs (Nasdaq: CROX), the maker of some rather odd shoes, is beautifully set up to do so. Crocs is a love-to-hate brand. Its “ugly” shoes are revered by fans for their comfort and functionality much to the horror of anyone with a fashion sense. Fortunately, we don’t need to concern ourselves with the company’s reputation. The only thing that matters is gains, and that is what the stock is poised to deliver. After being in a downtrend since 2011, which accelerated in 2015, Crocs stabilized in a range this year. Following an analyst downgrade in April, the stock fell sharply and even dipped below support to a new multiyear low. But within days, better-than-expected earnings caused shares to soar. The post-earnings rally left several seriously bullish markers on the chart. First, it negated the breakdown. Failed bearish signals are often new bullish signals, and within one day, CROX returned to the top of its range. The rally also left a bullish key outside-day reversal on the weekly charts. Read More

The financial world’s reaction to the UK vote to leave the European Union was dramatic and understandable: a huge selloff in the British pound, big drops in most major stock markets and significant gains for U.S. government bonds. After all, voters in the world’s fifth-largest economy decided to remove it from the largest free-trade zone in the world. It’s hard to find an economist who thinks Brexit isn’t a huge mistake. The financial world’s reaction was exacerbated by surprise: despite polls showing a “Leave” victory was quite possible, conventional wisdom in the world’s financial centers was that voters would act rationally… Read More

The financial world’s reaction to the UK vote to leave the European Union was dramatic and understandable: a huge selloff in the British pound, big drops in most major stock markets and significant gains for U.S. government bonds. After all, voters in the world’s fifth-largest economy decided to remove it from the largest free-trade zone in the world. It’s hard to find an economist who thinks Brexit isn’t a huge mistake. The financial world’s reaction was exacerbated by surprise: despite polls showing a “Leave” victory was quite possible, conventional wisdom in the world’s financial centers was that voters would act rationally and remain in the EU, which benefits the UK economy far more than it harms it. #-ad_banner-#U.S. stocks lost about 5% in the first two days following the vote, which makes sense given the potential impact on the global economy — and the importance of the UK and Europe as U.S. trade partners. Stocks in the financial and manufacturing sectors were the hardest hit. Note that the fall comes after a solid period of performance for the overall market; Thursday’s close for the S&P 500 was close to its high for 2016. It’s highly unlikely that Brexit — as significant a… Read More

The news out of the United Kingdom rocked global markets. In an historic referendum vote, citizens of the U.K. narrowly voted for a “Brexit” — a British exit from the European Union. Since joining the European Union in 1973, a fair number of Britons have been skeptical of the governing body. British attitudes toward European unity have been… complicated, to say the least. Winston Churchill advocated for “a kind of United States of Europe” during a speech in Zurich in 1946, while simultaneously setting the precedent for an arm’s length relationship with the continent throughout his career. Read More

The news out of the United Kingdom rocked global markets. In an historic referendum vote, citizens of the U.K. narrowly voted for a “Brexit” — a British exit from the European Union. Since joining the European Union in 1973, a fair number of Britons have been skeptical of the governing body. British attitudes toward European unity have been… complicated, to say the least. Winston Churchill advocated for “a kind of United States of Europe” during a speech in Zurich in 1946, while simultaneously setting the precedent for an arm’s length relationship with the continent throughout his career. #-ad_banner-#Now that the votes are cast, questions remain about what this will mean for trade, immigration, travel and a host of other issues. What is certain right now, however, is that the market is treating this development in a negative light. On Friday, the FTSE 100 (the main British stock index) closed down about 3.15%, while its currency (the pound) fell to levels not seen since 1985. Meanwhile, European exchanges fared even worse. The German DAX was down 6.8%, the French CAC 40 was down 8%… Even the Japanese Nikkei Index was down nearly… Read More

It’s been nearly eight years since the financial crisis, yet interest rates remain at recession-like levels. That’s good news for economic growth — but it’s a dismal situation for conservative investors relying on income, including millions of retirees who don’t want to take big risks to achieve a decent yield. The traditional safe havens — savings accounts, money market funds, CDs — offer yields that are laughably low. Money market mutual funds investing in government paper currently yield only around 0.33%. Your bank may offer 0.6% on a money market account, which invests in corporate debt but is FDIC-insured up… Read More

It’s been nearly eight years since the financial crisis, yet interest rates remain at recession-like levels. That’s good news for economic growth — but it’s a dismal situation for conservative investors relying on income, including millions of retirees who don’t want to take big risks to achieve a decent yield. The traditional safe havens — savings accounts, money market funds, CDs — offer yields that are laughably low. Money market mutual funds investing in government paper currently yield only around 0.33%. Your bank may offer 0.6% on a money market account, which invests in corporate debt but is FDIC-insured up to $250,000. Five-year CDs pay 1.2%, which is a paltry annual return for the privilege of locking up your money for half a decade. And recall that these rates were even lower before the Fed raised short-term rates by 25 basis points (0.25 percentage points) in December. #-ad_banner-#Now, it’s true that part of the reason that yields are low is that inflation has been close to nonexistent for years; some important goods and services — such as gasoline, natural gas and flat-screen TVs — have declined in price. So low yields haven’t been devastating in terms of purchasing power. But… Read More

The Wall Street Journal calls it “world-changing.” Both the Financial Times and CNBC say it’s a “game-changer.” And Business Insider calls it the “next trillion dollar industry.” #-ad_banner-#Stop me if you’ve heard this before. Longtime readers know I’ve written a lot about ground-breaking companies, trends and products that end up attracting this kind of copy from the financial press. But as I’ve said before, it’s often not the large, well-known company getting all the headlines that makes the outsized gains for investors. After all, when the mainstream press… Read More

The Wall Street Journal calls it “world-changing.” Both the Financial Times and CNBC say it’s a “game-changer.” And Business Insider calls it the “next trillion dollar industry.” #-ad_banner-#Stop me if you’ve heard this before. Longtime readers know I’ve written a lot about ground-breaking companies, trends and products that end up attracting this kind of copy from the financial press. But as I’ve said before, it’s often not the large, well-known company getting all the headlines that makes the outsized gains for investors. After all, when the mainstream press gets a hold of the kinds of ideas I regularly discuss in my newsletter, it’s often too late. Instead, it’s the smaller, lesser-known companies behind the innovation that savvy investors should put their money into — and it’s important to get in on the early stages before things really kick off. That’s where the real money is made. For example, up until recently I’ve dedicated a lot of time to telling readers of my Game-Changing Stocks newsletter about the revolutionary advances being made by Apple with its payment technology — Apple… Read More

Two weeks ago, I warned that rising market volatility, a low put/call ratio and June seasonality collectively warned of a near-term pullback. A week later, I said the market was gearing up for a major move with a bias to the downside. My worst fears were realized on Friday when the much-anticipated Brexit vote shocked global markets as Britain chose to leave the European Union (EU), triggering a massive decline in stocks around the world. It is particularly noteworthy that Friday’s collapse pushed all major U.S. indices back into negative territory for the year. Read More

Two weeks ago, I warned that rising market volatility, a low put/call ratio and June seasonality collectively warned of a near-term pullback. A week later, I said the market was gearing up for a major move with a bias to the downside. My worst fears were realized on Friday when the much-anticipated Brexit vote shocked global markets as Britain chose to leave the European Union (EU), triggering a massive decline in stocks around the world. It is particularly noteworthy that Friday’s collapse pushed all major U.S. indices back into negative territory for the year. #-ad_banner-# Last week’s decline was led by the tech-heavy Nasdaq 100, which lost 2%. And every sector of the S&P 500 finished lower for the week thanks to the one-day market rout. The hardest hit sectors were financial services (-3.3%), materials (-2.5%) and industrials (-2.4%).  The weakness in financial services was directly attributable to the sharp decline in U.S. interest rates, which adversely affects the profitability of lending institutions, as investors flocked to the relative safety of U.S. Treasuries. A Bearish Resolution To Recent Indecision In last week’s report, I pointed out that the Dow Jones… Read More