At the risk of sounding anti-American, I have to begin by saying this… I don’t like Budweiser. #-ad_banner-#But if I have a redeeming, patriotic leg to stand on, it’s that I’m a huge fan of craft beers, and really, what’s more American than a little upstart with passion and hops? One of my good friends is a master brewer in the midst of opening his own brewery in Milwaukee, Wisconsin, home of the Brewers, and, yes, the Champagne of Beers, Miller High Life, along with many, many others. There are already a number of popular craft beers in the area,… Read More

At the risk of sounding anti-American, I have to begin by saying this… I don’t like Budweiser. #-ad_banner-#But if I have a redeeming, patriotic leg to stand on, it’s that I’m a huge fan of craft beers, and really, what’s more American than a little upstart with passion and hops? One of my good friends is a master brewer in the midst of opening his own brewery in Milwaukee, Wisconsin, home of the Brewers, and, yes, the Champagne of Beers, Miller High Life, along with many, many others. There are already a number of popular craft beers in the area, but the market just keeps growing. That may be one reason why such big beer behemoths like Anheuser Busch-InBev (NYSE: BUD) and SABMiller (OTC: SBMRY) are making a deal. News of the potential deal came out last November, but needed approval from a number of bodies, including the U.S. Justice Department. That approval could come as early as this month. The combined companies would then account for almost a third of the world’s beer, according to Reuters. The deal is worth a reported $107 billion, making it the biggest brewer by capitalization. But why are these two companies merging? As… Read More

Last week, I looked at stocks that could be worth buying if the Federal Reserve raises interest rates in June. Since then, Fed Chair Janet Yellen confirmed that a rate hike is likely this summer, either in June or July. Fed economists’ view that the economy is picking up steam got some validation this week when U.S. consumer spending rose 1% in April, the largest percentage in more than six years. Personal income was up 0.4% and wages rose 0.5% — both signs that American households will continue to have more money to spend in the coming months. As I’ve… Read More

Last week, I looked at stocks that could be worth buying if the Federal Reserve raises interest rates in June. Since then, Fed Chair Janet Yellen confirmed that a rate hike is likely this summer, either in June or July. Fed economists’ view that the economy is picking up steam got some validation this week when U.S. consumer spending rose 1% in April, the largest percentage in more than six years. Personal income was up 0.4% and wages rose 0.5% — both signs that American households will continue to have more money to spend in the coming months. As I’ve written in recent months, consumer durable stocks should benefit from this trend. Another area that should thrive in a low-unemployment, rising-wage environment is the housing market. Indeed, home sales have shown signs of picking up in recent months as the sector’s long, slow recovery from the financial crisis continues. #-ad_banner-#Stocks associated with home sales, such as homebuilders, should be hurt by rising mortgage rates, but often are helped in the short run, as home buyers move to lock in existing rates before the Fed decides on additional rate hikes. That’s especially likely in the current environment, as consumers with cash… Read More

A couple months ago, I had an interesting phone call with Frank Bermea, publisher of our sister company, Profitable Trading. I could tell he was excited. “We’re changing the way we do business,” he said. I perked up and asked him to tell me more. It only took 90 seconds for me to realize that what he was talking about was an absolute game-changer. But I was afraid it would never happen. #-ad_banner-#Yet after weeks of planning — and countless late nights at the office — his vision has finally become a reality. If… Read More

A couple months ago, I had an interesting phone call with Frank Bermea, publisher of our sister company, Profitable Trading. I could tell he was excited. “We’re changing the way we do business,” he said. I perked up and asked him to tell me more. It only took 90 seconds for me to realize that what he was talking about was an absolute game-changer. But I was afraid it would never happen. #-ad_banner-#Yet after weeks of planning — and countless late nights at the office — his vision has finally become a reality. If you’ll excuse me for departing from the usual fare we cover here in StreetAuthority Daily, I’d like to tell you all about it today. I guarantee it’ll be worth it. First, let me start off by telling you a little bit about how our business works. If you’re getting this newsletter, then it means you’re a subscriber to one of StreetAuthority’s free newsletters. We offer a range of newsletters with different investment strategies in mind (income, buy-and-hold, momentum, options, etc.) written by some of the top experts in their field. When… Read More

It’s been said that trading is the hardest way to make easy money. And after more than two decades in the markets, I wholeheartedly agree. The vast majority of investment advisors, brokers and portfolio managers concentrate nearly all of their efforts on what to buy. They do extensive research and create compelling narratives describing why this or that stock is an excellent choice to own.  Picking the right investment vehicle is certainly an important part of the process. What goes into your portfolio is absolutely critical for success; poor prospects lead to poor results.  #-ad_banner-#Personally, I rely on a proprietary… Read More

It’s been said that trading is the hardest way to make easy money. And after more than two decades in the markets, I wholeheartedly agree. The vast majority of investment advisors, brokers and portfolio managers concentrate nearly all of their efforts on what to buy. They do extensive research and create compelling narratives describing why this or that stock is an excellent choice to own.  Picking the right investment vehicle is certainly an important part of the process. What goes into your portfolio is absolutely critical for success; poor prospects lead to poor results.  #-ad_banner-#Personally, I rely on a proprietary indicator called the Alpha Score to find the best stocks to own. It delivered 16 double-digit winners last year — despite the deteriorating market in the second half of 2015. (You can learn how it did that here.) But picking the right time to buy is only part of the process. You also have to know the right time to sell.  I’m not the only one who thinks this, either. While very few newsletters or investing services discuss the importance of selling, it’s a popular topic among many of the best investors and traders on the… Read More

In April, the technology sector looked like it was about to break down in a big way. However, it turned out to be a false alarm that merely let bulls buy at better prices.  Within the sector, there was also something bullish going on just below the surface: Semiconductor stocks, which were the tech standard in the 1990s, were finally participating… and in a good way.  #-ad_banner-# Some semi stocks soared in May after releasing earnings, and that should have been a tip… Read More

In April, the technology sector looked like it was about to break down in a big way. However, it turned out to be a false alarm that merely let bulls buy at better prices.  Within the sector, there was also something bullish going on just below the surface: Semiconductor stocks, which were the tech standard in the 1990s, were finally participating… and in a good way.  #-ad_banner-# Some semi stocks soared in May after releasing earnings, and that should have been a tip off that things were improving for most of the group. After all, if there is enough business for some companies to thrive, chances are there is enough to go around, even in a sector that is as diverse as this one.  So now I’m on the lookout for laggards in the sector that are on the move, and the one I like is Maxim Integrated Products (Nasdaq: MXIM), a manufacturer of linear and mixed-signal integrated circuits.  Although the stock now trades in the middle of its 52-week range and is still only a shadow of its pre-2000 tech bubble self,… Read More

While the market has started pricing in a June rate hike by the Federal Reserve, it’s still putting odds of the Fed actually raising rates at less than a third. This contrasts with the hawkish commentary from several Fed officials lately, however, which leaves me with the feeling that the Fed is trying to ready markets for a change.  Merely the threat of a rate hike has forced a selloff in stocks over the last several years, and investors need to come to grips with the fact that the market may be underestimating the potential for higher rates sooner rather… Read More

While the market has started pricing in a June rate hike by the Federal Reserve, it’s still putting odds of the Fed actually raising rates at less than a third. This contrasts with the hawkish commentary from several Fed officials lately, however, which leaves me with the feeling that the Fed is trying to ready markets for a change.  Merely the threat of a rate hike has forced a selloff in stocks over the last several years, and investors need to come to grips with the fact that the market may be underestimating the potential for higher rates sooner rather than later. #-ad_banner-#A look at historical data and correlations to bond prices shows that in an environment of rising rates not all sectors are created equal, and some sectors may actually benefit from higher rates. Is your portfolio ready? Will A Surprise Rate Hike Spell Disaster For Stocks? Market expectations of a June hike have come up, but are still low despite evidence of a stronger economy and comments from Fed members. The CME Group FedWatch tool shows a market-based chance of just 28% for a June hike, up from 13% last month. While a June hike is still… Read More

There’s a saying on Wall Street: If you get into a cab and the driver begins talking to you about the market or a supposedly “hot” stock tip, it’s time to sell. #-ad_banner-#I remember during the dot-com bubble, when it seemed like everyone and their dog was playing the market, nearly every dinner conversation with acquaintances and friends would inevitably turn from sports or politics to the market. We all know how that turned out… Recently, my colleague Jared Levy had a similar experience. I’ll let him share the story with… Read More

There’s a saying on Wall Street: If you get into a cab and the driver begins talking to you about the market or a supposedly “hot” stock tip, it’s time to sell. #-ad_banner-#I remember during the dot-com bubble, when it seemed like everyone and their dog was playing the market, nearly every dinner conversation with acquaintances and friends would inevitably turn from sports or politics to the market. We all know how that turned out… Recently, my colleague Jared Levy had a similar experience. I’ll let him share the story with you…       After a nice dinner last week, a friend and I were enjoying a couple mezcal margaritas when a 21-year-old bar back overheard our market-centric conversation and excitedly told us that he had just bought his first shares of stock after hearing how strong the market was from a friend. Nothing against the 21-year-old bar backs of the world, but after five minutes of chatting, I realized he was mostly clueless as to how stocks derive their value. Worse still was his extraordinary confidence. But his behavior is quite common among… Read More

Last week, the major U.S. stock indices closed in positive territory for the second consecutive week. Once again, they were led by the small-cap Russell 2000 and tech-heavy Nasdaq 100, which both gained 3.4% for the week.   #-ad_banner-# As I have stated in this space on numerous occasions, technology and, to a lesser degree, small caps, typically lead the broader market both higher and lower. So, the quality of the recent rally is encouraging.   Another encouraging sign is that all sectors… Read More

Last week, the major U.S. stock indices closed in positive territory for the second consecutive week. Once again, they were led by the small-cap Russell 2000 and tech-heavy Nasdaq 100, which both gained 3.4% for the week.   #-ad_banner-# As I have stated in this space on numerous occasions, technology and, to a lesser degree, small caps, typically lead the broader market both higher and lower. So, the quality of the recent rally is encouraging.   Another encouraging sign is that all sectors of the S&P 500 finished in positive territory last week. After technology, financials were the best-performing sector. Financial stocks are a direct beneficiary of the sharp rise in long-term interest rates following the minutes of the April 26-27 Federal Open Market Committee meeting.  Ironically, the recent rise in interest rates — which the stock market has lived in fear of since the Federal Reserve’s quantitative easing program came to an end in October 2014 — may have helped fuel the current stock market rally. Investors now seem to be taking rising rates as an indication that the extremely cautious Fed… Read More