Today I want to tell you about an investing strategy that defies logic. It shouldn’t work based on everything you’ve learned about the stock market. Yet it does. In fact, for over half a century, investors and traders have used this strategy to produce unparalleled results. #-ad_banner-#And no, for those of you who may be wondering, this strategy doesn’t involve options, derivatives or any other obscure financial product. What’s more, what I’m about to show you can be used as part of any general investing strategy — regardless of whether you’re focusing on income, growth, blue chips, small caps or… Read More

Today I want to tell you about an investing strategy that defies logic. It shouldn’t work based on everything you’ve learned about the stock market. Yet it does. In fact, for over half a century, investors and traders have used this strategy to produce unparalleled results. #-ad_banner-#And no, for those of you who may be wondering, this strategy doesn’t involve options, derivatives or any other obscure financial product. What’s more, what I’m about to show you can be used as part of any general investing strategy — regardless of whether you’re focusing on income, growth, blue chips, small caps or commodities. Specifically, I’m talking about relative-strength investing. Longtime readers might already be familiar with relative-strength investing. We’ve talked about it before in previous StreetAuthority Daily issues. But for those who need a refresher, allow me to provide a brief recap. Relative-strength investing is simply a type of momentum investing. It involves buying the best-performing stocks (relative to the market) and holding them until their momentum changes course. To most investors, especially those considered value investors, this strategy probably sounds ridiculous. After all, most people have heard the phrase “buy low, sell high.” Since relative-strength investors buy stocks that are already… Read More

Earlier this week, I told you that the market is poised to take a bearish turn and cited three main reasons:  1. Weak fundamentals 2. Lofty market valuation 3. Investor complacency But I also told traders that when I say the market is likely to pull back, that doesn’t mean they need to sell everything or stop trading. #-ad_banner-#There’s a common saying on Wall Street: “There’s always a bull market somewhere.” In my experience, that’s definitely true. Read More

Earlier this week, I told you that the market is poised to take a bearish turn and cited three main reasons:  1. Weak fundamentals 2. Lofty market valuation 3. Investor complacency But I also told traders that when I say the market is likely to pull back, that doesn’t mean they need to sell everything or stop trading. #-ad_banner-#There’s a common saying on Wall Street: “There’s always a bull market somewhere.” In my experience, that’s definitely true. And to expand on that, I want to share some research from Tom Vician, Chief Investment Strategist of Alpha Trader, for a look at what stocks are most likely to go up in today’s market.  For those who aren’t familiar with Tom, he’s a 20-year veteran of the financial industry. He’s done everything from managing hedge funds to private wealth accounts and more. And as the man behind our successful Alpha Trader system — which delivered 16 double-digit winners last year — he’s the perfect choice to identify what’s working in today’s market. According to Tom’s… Read More

Few countries trade with so much volatility in investor sentiment as China. Investors are manic about watching economic reports from the world’s second largest economy, and the slightest change in statistics can mean a plunge in sentiment.  Shares trading on the Shanghai Stock Exchange are up 74% over the last ten years, but the long-term note masks some spectacular ups and downs over shorter periods. The index lost 28% of its value over the last nine months of 2011. And who can forget the meteoric boom over the year to June 2015 when the market surged 140%? #-ad_banner-#Investors have once… Read More

Few countries trade with so much volatility in investor sentiment as China. Investors are manic about watching economic reports from the world’s second largest economy, and the slightest change in statistics can mean a plunge in sentiment.  Shares trading on the Shanghai Stock Exchange are up 74% over the last ten years, but the long-term note masks some spectacular ups and downs over shorter periods. The index lost 28% of its value over the last nine months of 2011. And who can forget the meteoric boom over the year to June 2015 when the market surged 140%? #-ad_banner-#Investors have once again abandoned shares of Chinese companies despite strong economic fundamentals and valuation. I’ve already put together two trades on the theme for a gain of 54% and 45% in less than three months’ time. Now I’m going for the long-term trade on China for even stronger gains as fundamentals come back to drive shares higher.  Recent Economic Reports Have Investors Fleeing The release of three economic reports late May renewed fears of a hard landing for the Chinese economy. The official May manufacturing PMI was unchanged from April at 50.1 to mark the third month just barely above the… Read More

The table is set. After hitting all-time highs this month, markets are poised for a pullback. I’ll have more on that in a moment. First, it’s important to remember that pullbacks, corrections — and yes, even recessions — are normal occurrences for healthy, functioning markets. Legendary investor Warren Buffett reminded us of this when, during the darkest days of the financial crisis in 2008, he wrote in an op-ed for the New York Times:         “Over the long term, the stock market… Read More

The table is set. After hitting all-time highs this month, markets are poised for a pullback. I’ll have more on that in a moment. First, it’s important to remember that pullbacks, corrections — and yes, even recessions — are normal occurrences for healthy, functioning markets. Legendary investor Warren Buffett reminded us of this when, during the darkest days of the financial crisis in 2008, he wrote in an op-ed for the New York Times:         “Over the long term, the stock market news will be good,” he said. “In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.” That long-term bullish sentiment is still as valid today as it was then. Few investors, if any, have made money betting against the United States over the long arc of time. But that doesn’t mean we can’t protect ourselves — or… Read More

When people around the world want something to eat, there’s a good chance they reach for a  product made by Kraft Heinz. And for investors looking for a combination of value and quality, Kraft Heinz (Nasdaq: KHC) should be on your menu right now. #-ad_banner-#Formed by the mega-merger of Kraft Foods Group and H.J. Heinz in July 2015, Kraft Heinz is the third largest food and beverage company in North America, and the fifth largest in the world. The company boasts more than 200 brands, including Kraft, Heinz, Oscar Mayer, Jell-O, Kool-Aid, and Lunchables. Eight of the company’s brands… Read More

When people around the world want something to eat, there’s a good chance they reach for a  product made by Kraft Heinz. And for investors looking for a combination of value and quality, Kraft Heinz (Nasdaq: KHC) should be on your menu right now. #-ad_banner-#Formed by the mega-merger of Kraft Foods Group and H.J. Heinz in July 2015, Kraft Heinz is the third largest food and beverage company in North America, and the fifth largest in the world. The company boasts more than 200 brands, including Kraft, Heinz, Oscar Mayer, Jell-O, Kool-Aid, and Lunchables. Eight of the company’s brands each generate $1 billion a year in sales, and the combined company’s overall revenue was $27.4 billion in 2015. Kraft Heinz sells products in dozens of countries around the world, but the United States accounts for just over 70% of earnings, with the rest focused in Canada, Europe and Latin America. That’s a big plus, because it implies that the company has room to grow by increasing market share overseas. (Some of this expansion may take a few years, because of noncompete agreements made with former Kraft sibling Mondelez when the companies split.) Strong brands don’t guarantee a string of… Read More

Mark Twain understood the mind of an investor. The world-renowned author once proclaimed: “A dollar picked up in the road is more satisfaction to us than the 99 which we had to work for, and the money won in the stock market snuggles into our hearts in the same way.” #-ad_banner-#Twain acknowledged the rush that can accompany earning money without any labor. He understood that the human brain is not wired for clear thinking in regard to money. That’s because the area of the brain that responds to financial reward is the same part… Read More

Mark Twain understood the mind of an investor. The world-renowned author once proclaimed: “A dollar picked up in the road is more satisfaction to us than the 99 which we had to work for, and the money won in the stock market snuggles into our hearts in the same way.” #-ad_banner-#Twain acknowledged the rush that can accompany earning money without any labor. He understood that the human brain is not wired for clear thinking in regard to money. That’s because the area of the brain that responds to financial reward is the same part that lights up from cocaine. This presents a major problem. Investors can become insatiable, searching high and low for the next “big winners.” What they’re really interested in is a get-rich-quick scheme. That’s a terrific way to lose money — and quickly. However, if you are a regular reader of my Game-Changing Stocks newsletter, then you know that I have been making a habit of finding stocks with the most “big winner” potential for a while. In fact, I’ve found more than 23 triple-digit winners since joining StreetAuthority… Read More

#-ad_banner-# The major U.S. stock indices finished last week essentially unchanged, on the heels of back-to-back positive weeks, as the benchmark S&P 500 ran into a wall of formidable overhead resistance. The market is now at a major decision point, pressured by the well-known seasonal influence of “sell in May and go away.” However, I’m starting to see some positive signs that suggest unexpected strength in the market. Interestingly, the three strongest sectors of the S&P 500 last week were all defensive ones:… Read More

#-ad_banner-# The major U.S. stock indices finished last week essentially unchanged, on the heels of back-to-back positive weeks, as the benchmark S&P 500 ran into a wall of formidable overhead resistance. The market is now at a major decision point, pressured by the well-known seasonal influence of “sell in May and go away.” However, I’m starting to see some positive signs that suggest unexpected strength in the market. Interestingly, the three strongest sectors of the S&P 500 last week were all defensive ones: utilities (2.6%), health care (1.6%) and consumer staples (1.1%). The table below shows that, according to Asbury Research’s own ETF-based metric, the biggest positive change to inflows over the past one-week and one-month periods was in financials, while the biggest outflows were from energy. The outflows from energy support my contention that oil and energy-related asset prices are vulnerable to a corrective pullback, which I discussed in last week’s report. Stocks Leaning Higher The S&P 500 finished last week at 2,099, above both its 200-day (major trend proxy) and 50-day (minor trend… Read More

In February 2013, my Dad called. It was unusual. I talk to my father a few times each week, but it’s generally me calling him. Then my Dad said something that really scared me. He asked me to have my wife join the call. At the time, my Dad was in his late 60s. He’d been a smoker all his life — and a fairly heavy one — and my heart sank. Dad had been in excellent health his whole life. He ran hospitals for years and has an immune system that would eat… Read More

In February 2013, my Dad called. It was unusual. I talk to my father a few times each week, but it’s generally me calling him. Then my Dad said something that really scared me. He asked me to have my wife join the call. At the time, my Dad was in his late 60s. He’d been a smoker all his life — and a fairly heavy one — and my heart sank. Dad had been in excellent health his whole life. He ran hospitals for years and has an immune system that would eat the Ebola virus like a midnight snack. There was something going on, though, and I feared that the old man’s luck had run out. #-ad_banner-#Thankfully, Dad’s lungs were fine. But one of his kidneys was loaded with cancer. He’d experienced an unusual symptom and went to the doc the next day. A lot of my friends’ folks have had things go wrong and done nothing, which in some cases has turned out badly. But Dad doesn’t mess around. I like that about him. God help us all if I ever have to put him in a home,… Read More