The last two months have been good for U.S. aerospace and defense companies — and the next two years could mark a bull market for stocks of those best-positioned for this new environment. The turning point came in late October, when Congress and the Obama Administration agreed to a two-year budget deal that authorizes Pentagon spending over the next two years by about $37 billion more than the spending caps established by the so-called sequester budget agreement that began in 2012. That $37 billion was actually less than President Obama requested, but it’s still a major shot in the arm… Read More

The last two months have been good for U.S. aerospace and defense companies — and the next two years could mark a bull market for stocks of those best-positioned for this new environment. The turning point came in late October, when Congress and the Obama Administration agreed to a two-year budget deal that authorizes Pentagon spending over the next two years by about $37 billion more than the spending caps established by the so-called sequester budget agreement that began in 2012. That $37 billion was actually less than President Obama requested, but it’s still a major shot in the arm for the defense industry. #-ad_banner-#To understand why, let’s review the trend in U.S. defense spending this century. After an uninterrupted annual rise since 9/11 — due in large part to the wars in Iraq and Afghanistan but also to substantial spending on new weapons programs for every branch and the burgeoning Homeland Security sector — defense spending fell about 15% total from fiscal 2011 (ended September 2011) through fiscal 2015.  Part of the decrease was due to the U.S. winding down combat operations in Iraq, which corresponded to a contraction in the size of our armed forces. But the reduction… Read More

This year marks the 100th anniversary of Albert Einstein’s General Theory of Relativity. Einstein is often portrayed as a lone genius who made his historic scientific breakthrough while working as a patent clerk. But despite his lone genius label, Einstein was smart enough to know that collaboration was the best way to take on a challenge. He frequently discussed his ideas with friends and family. In fact, he referred to his friend and engineer Michele Besso as “the best sounding board in Europe.” #-ad_banner-#As I reflected on all that I was thankful for this… Read More

This year marks the 100th anniversary of Albert Einstein’s General Theory of Relativity. Einstein is often portrayed as a lone genius who made his historic scientific breakthrough while working as a patent clerk. But despite his lone genius label, Einstein was smart enough to know that collaboration was the best way to take on a challenge. He frequently discussed his ideas with friends and family. In fact, he referred to his friend and engineer Michele Besso as “the best sounding board in Europe.” #-ad_banner-#As I reflected on all that I was thankful for this year, I thought of all the subscribers to my premium newsletter, The Daily Paycheck. My readers are my sounding board — my touchstone. One of The Daily Paycheck’s primary missions is to help investors achieve a more financially secure retirement. While this is clearly an easier task than solving one of the great scientific mysteries of all time, it is a challenge that is made easier with a group of like-minded investors — and the helpful ideas and suggestions from The Daily Paycheck’s readers. While I can’t respond individually to the… Read More

According to the U.S. Department of Labor, the economy added 211,000 jobs for the month. That’s good growth right on the heels of October’s job report, which, at 298,000 jobs for the month, was the strongest job creation this year, shattering estimates for around 180,000.  This is just one report. Still, when taken with other indicators such as job postings and unemployment claims, the big picture suggests a labor market that is firmly on the mend. The unemployment rate has fallen to 5.0%, the lowest level since April 2008. I should note that this figure doesn’t reflect the number of… Read More

According to the U.S. Department of Labor, the economy added 211,000 jobs for the month. That’s good growth right on the heels of October’s job report, which, at 298,000 jobs for the month, was the strongest job creation this year, shattering estimates for around 180,000.  This is just one report. Still, when taken with other indicators such as job postings and unemployment claims, the big picture suggests a labor market that is firmly on the mend. The unemployment rate has fallen to 5.0%, the lowest level since April 2008. I should note that this figure doesn’t reflect the number of people on the sidelines that have stopped trying to look for work. The labor force participation rate of 62.4% is still the lowest in 38 years. But after a summer lull, recent strong job growth is an encouraging sign. Even better, average hourly wages have also ticked up by $0.09 (or 2.5%) to $25.50 per hour. It’s been a long time since we’ve seen any upward pressure on wages.  The main upshot of this is the U.S. Federal Reserve now has a stronger argument in favor of lifting interest rates at the December meeting. Based on testimony from Chair Janet… Read More

“Jared Levy is insatiable,” I thought to myself. Between appearances on CNBC, Fox Business, flying his private airplane around the country and helming Profitable Trading’s successful options newsletter, Profit Amplifier, it would be easy for someone in his position to want to take a beat and enjoy the fruits of their labor. But if you know Jared, then you know that simply kicking back is not his style. A few weeks ago, I told our premium subscribers to be on the lookout for details regarding a secret project Jared has been… Read More

“Jared Levy is insatiable,” I thought to myself. Between appearances on CNBC, Fox Business, flying his private airplane around the country and helming Profitable Trading’s successful options newsletter, Profit Amplifier, it would be easy for someone in his position to want to take a beat and enjoy the fruits of their labor. But if you know Jared, then you know that simply kicking back is not his style. A few weeks ago, I told our premium subscribers to be on the lookout for details regarding a secret project Jared has been working on. I couldn’t reveal too much just then — other that it was going to be “big,” according to Profitable Trading’s publisher. Today, I’m pleased to announce that “all systems are go” for Jared’s big reveal. It will officially be launching Friday, December 18. And I promise… you won’t want to miss it. For the first time ever, Jared will be sharing his all-time personal favorite trading strategy — the one responsible for most of his personal fortune. But that’s not all… We’re putting a total of up to $1… Read More

Like position sizing, “sell” rules are one of the most underrated, ignored and overlooked areas of investing. You can find nearly anyone giving their opinion on whether to buy this stock or that stock. But when it comes to actually selling a position, you’ll often hear nothing but… Read More

The U.S. stock market has been in a holding pattern of sorts, awaiting the Federal Reserve Board’s decision about whether or not to raise short-term interest rates. By tomorrow, we’ll likely hear the announcement of their decision to boost rates by 25 basis points (0.25 percentage points). The move has been telegraphed so effectively, it would be almost dangerous for the Fed not to move at this point — that’s how much the world expects the hike. Investors probably will take the much-predicted news calmly, though it’s possible that some higher-yielding stocks fall on the news. That’s because some money… Read More

The U.S. stock market has been in a holding pattern of sorts, awaiting the Federal Reserve Board’s decision about whether or not to raise short-term interest rates. By tomorrow, we’ll likely hear the announcement of their decision to boost rates by 25 basis points (0.25 percentage points). The move has been telegraphed so effectively, it would be almost dangerous for the Fed not to move at this point — that’s how much the world expects the hike. Investors probably will take the much-predicted news calmly, though it’s possible that some higher-yielding stocks fall on the news. That’s because some money will be shifted toward money market and short-term fixed-income instruments, which will become relatively more attractive as yields rise. #-ad_banner-#The short-term selloff could represent an opportunity to snatch up shares of high-quality, dividend-paying stocks that take a hit on the news. To improve my odds, I’ll be focusing on stocks that are already somewhat unloved, for short-term reasons that won’t matter much in the long run. Here are two such candidates to consider for both capital appreciation and income: Emerson Electric (NYSE: EMR) is one of the most diversified electrical-equipment conglomerates in the United States, a $25-billion global manufacturing leader… Read More

I get a lot of questions each month from subscribers to my premium income newsletter, High-Yield Investing. With such a devoted following, I make it a point to read every single message. And every once in a while, I’ll come across a question from a subscriber that I think is worth sharing. #-ad_banner-#The following came across my desk from a subscriber, Megan P. from Phoenix, asking whether the strong dollar would present some attractive opportunities for investors. Q: Are there any high-quality dividend payers temporarily hurt by the strong U.S. dollar that could be attractive turnaround candidates? Here was my… Read More

I get a lot of questions each month from subscribers to my premium income newsletter, High-Yield Investing. With such a devoted following, I make it a point to read every single message. And every once in a while, I’ll come across a question from a subscriber that I think is worth sharing. #-ad_banner-#The following came across my desk from a subscriber, Megan P. from Phoenix, asking whether the strong dollar would present some attractive opportunities for investors. Q: Are there any high-quality dividend payers temporarily hurt by the strong U.S. dollar that could be attractive turnaround candidates? Here was my answer… Yes, there are some strong turnaround candidates that have taken a hit recently, and I’m tracking a few of them for my portfolio. For some background, the strong dollar has been a thorn in the side of many large multinational companies over the past few quarters. A stronger greenback not only makes exported goods less competitive overseas, but also erodes the value of sales conducted in foreign markets when revenues denominated in yen, euros and rubles are converted back into dollars. One such opportunity is Genuine Parts Company (NYSE: GPC). This specialty retailer is best known for… Read More