Will they or won’t they raise interest rates? It’s the question at the forefront of investors’ minds going into the next Federal Open Market Committee meeting. The board has considered hiking the federal funds rate for the past year, but hasn’t yet made a move. Many believe that the upcoming December meeting could be the one where we finally see a bump… I’m not here to predict whether or not the Fed will raise rates in December. I don’t know what their plan is… I’m not sure they do either. I do, however, want to give… Read More

Will they or won’t they raise interest rates? It’s the question at the forefront of investors’ minds going into the next Federal Open Market Committee meeting. The board has considered hiking the federal funds rate for the past year, but hasn’t yet made a move. Many believe that the upcoming December meeting could be the one where we finally see a bump… I’m not here to predict whether or not the Fed will raise rates in December. I don’t know what their plan is… I’m not sure they do either. I do, however, want to give you an idea of what may happen if the rates do rise.  It’s important to know what sectors could benefit from a possible rate hike — and which ones will suffer — if you want your portfolio to end the year in the black, and not in the red. Thanks to the folks at Bloomberg, I can run different economic scenarios and see the effects on a variety of financial instruments. So I looked at how a 25 basis point increase would impact the S&P 500. I was astonished to find that one of the best performing sectors is currently… Read More

The current stock market is throwing a lot of surprises investors’ way, but one piece of market advice still rings true: Buy stocks that are already going up. Even in shaky markets, the leaders still tend to lead. And by simply following the trend, we can avoid having to pick tops and bottoms.  Although it is not one of the glamorous stocks we see in the headlines daily, Lithia Motors (NYSE: LAD) exhibits the same sort of leadership qualities, and that shows an innate demand for its shares. One of the largest automotive retailers in the United States,… Read More

The current stock market is throwing a lot of surprises investors’ way, but one piece of market advice still rings true: Buy stocks that are already going up. Even in shaky markets, the leaders still tend to lead. And by simply following the trend, we can avoid having to pick tops and bottoms.  Although it is not one of the glamorous stocks we see in the headlines daily, Lithia Motors (NYSE: LAD) exhibits the same sort of leadership qualities, and that shows an innate demand for its shares. One of the largest automotive retailers in the United States, Lithia’s stock has handily outperformed the market. While the S&P 500 was trapped in a trading range for the first six months of the year, LAD gained roughly 40%. And now that the market seems to be backing down after six strong weeks, Lithia is holding tight to resistance near its all-time highs. On the chart, the stock has formed a variation of a “W” pattern with two intermediate rallies instead of one between two larger rallies. Normally, such patterns — also called double- or triple-bottoms — appear after declines. However, they can appear after rallies as consolidation… Read More

In the past few weeks I’ve received emails from subscribers to my premium newsletter, The Daily Paycheck, who are worried about their energy and energy-related holdings. I’ve also heard from others who are wondering if beleaguered energy securities represent a buying opportunity. Just a year ago, West Texas Intermediate (WTI) crude oil was running at about $87 a barrel. But a strong U.S. dollar and concerns about a slowing Chinese economy have pushed the price of a barrel of WTI down to about $46 dollars. #-ad_banner-#All oil exploration and production company stocks have been hit hard. Their revenues… Read More

In the past few weeks I’ve received emails from subscribers to my premium newsletter, The Daily Paycheck, who are worried about their energy and energy-related holdings. I’ve also heard from others who are wondering if beleaguered energy securities represent a buying opportunity. Just a year ago, West Texas Intermediate (WTI) crude oil was running at about $87 a barrel. But a strong U.S. dollar and concerns about a slowing Chinese economy have pushed the price of a barrel of WTI down to about $46 dollars. #-ad_banner-#All oil exploration and production company stocks have been hit hard. Their revenues are directly impacted by the price of oil. This period of lower oil prices is probably less of a problem for large multinational companies such as ConocoPhillips and Exxon Mobil, which have strong balance sheets and good credit ratings. They are likely able to ride it out. But prolonged low oil prices could be a significant problem for small oil producers — and for investors who hold their stock or bonds. With revenues dropping, oil companies are paying out a higher percentage of their operating cash flow to service their existing debt. Just take a look at this chart from… Read More

The personal computer, the Internet and mobile devices all revolutionized our society. But over the past two or three years, it seems the pace of innovation has slowed — at least for consumers. Yes, we’ve seen the introduction of better, faster smartphones and variations on the theme such as smart watches. But what’s next? The answer, technologists say, is the “Internet of Things” — a new wave of real-world uses for smart technologies such as networking, sensors, GPS, data collection and management, and the like. The idea is to make more machines “smart.” The most commonly cited examples are Fitbits,… Read More

The personal computer, the Internet and mobile devices all revolutionized our society. But over the past two or three years, it seems the pace of innovation has slowed — at least for consumers. Yes, we’ve seen the introduction of better, faster smartphones and variations on the theme such as smart watches. But what’s next? The answer, technologists say, is the “Internet of Things” — a new wave of real-world uses for smart technologies such as networking, sensors, GPS, data collection and management, and the like. The idea is to make more machines “smart.” The most commonly cited examples are Fitbits, which monitor exercise stats and store them as data for later analysis. When you use your smartphone to turn up the thermostat remotely, you’re using the Internet of Things. Less popular so far, but on the market: smart tennis rackets, saucepans and silverware (spoons that tell you how much soup or ice cream you’ve eaten). While some of these products seem more fanciful than practical, experts agree that there’s huge room for growth in Internet of Things (or “IOT”) applications. For example, manufacturing costs may be reduced significantly by efficiency improvements brought by machines that are not only automated but… Read More

Google’s multi-million dollar real estate gambit… The solution to the water crisis in California… a “nightmare pandemic” and the one company that holds the key to preventing it… These are some of the latest “shocking” predictions Game-Changing Stocks analyst Andy Obermueller is making for 2016. If you aren’t familiar with Andy or his annual predictions report, then you’re missing out on one of the most controversial (yet insightful) pieces of research that our company regularly publishes. As StreetAuthority’s resident expert in what he calls “the next big thing,” it’s Andy’s job to track down the market’s hottest growth opportunities —… Read More

Google’s multi-million dollar real estate gambit… The solution to the water crisis in California… a “nightmare pandemic” and the one company that holds the key to preventing it… These are some of the latest “shocking” predictions Game-Changing Stocks analyst Andy Obermueller is making for 2016. If you aren’t familiar with Andy or his annual predictions report, then you’re missing out on one of the most controversial (yet insightful) pieces of research that our company regularly publishes. As StreetAuthority’s resident expert in what he calls “the next big thing,” it’s Andy’s job to track down the market’s hottest growth opportunities — especially ones that aren’t on most investors’ radars yet.  We’re talking about the kinds of returns you’ve always dreamed about… In fact, Andy won’t even consider making a recommendation unless it offers at least “double-bagger” potential. Longtime StreetAuthority readers are probably familiar with Andy by now. I’ve known Andy personally for the past seven years, and he is without a doubt one of the most well-read, curious minds you’ll ever come across. He’s not afraid to put himself out there with big, bold proclamations on what he thinks hold the most potential for investors to make life-changing gains in the… Read More

The energy market is officially broken. That’s according to the International Energy Agency (IEA). On November 10, the group announced that oil prices will remain low for a long time. Next year, the agency is forecasting a barrel of crude will go for just $60… and only $80 by 2020. For hundreds of U.S. companies caught up in the shale oil boom over the last decade, that’s disastrous news. At $60 a barrel, many oil companies will not generate enough revenue to break even. The root cause of this extended period of uneconomic oil prices, according to the IEA, is… Read More

The energy market is officially broken. That’s according to the International Energy Agency (IEA). On November 10, the group announced that oil prices will remain low for a long time. Next year, the agency is forecasting a barrel of crude will go for just $60… and only $80 by 2020. For hundreds of U.S. companies caught up in the shale oil boom over the last decade, that’s disastrous news. At $60 a barrel, many oil companies will not generate enough revenue to break even. The root cause of this extended period of uneconomic oil prices, according to the IEA, is the decision by the Organization of the Petroleum Exporting Countries (OPEC) to continue producing at 2014 levels. OPEC is made up of member countries like Saudi Arabia, Iran and Kuwait. The idea behind OPEC’s production mandate is to force many of the newer unconventional producers out of the market. While this will greatly impact OPEC’s own budgets, that strategy might end up bearing fruit. Nonetheless, there’s a far different winner in this story… one OPEC might not have even considered. To understand this side of the equation we have to first look at a completely different part of the energy… Read More

When he buys a stock, Warren Buffett places more emphasis on one factor above almost any other. Since 1986 he has mentioned this single trait more than 20 times in his annual shareholder letters. He calls it “essential for sustained success.” However, you won’t find it listed on a company’s balance sheet. Its value doesn’t rise and fall with the market. And even if a company reports great earnings, the worth of this one advantage still can’t be calculated. But that doesn’t keep it from being a company’s most valuable possession. Take the nasty bear market of 2008 and 2009. Read More

When he buys a stock, Warren Buffett places more emphasis on one factor above almost any other. Since 1986 he has mentioned this single trait more than 20 times in his annual shareholder letters. He calls it “essential for sustained success.” However, you won’t find it listed on a company’s balance sheet. Its value doesn’t rise and fall with the market. And even if a company reports great earnings, the worth of this one advantage still can’t be calculated. But that doesn’t keep it from being a company’s most valuable possession. Take the nasty bear market of 2008 and 2009. From its peak to trough, the S&P lost more than 55%. No investment completely avoided the downfall. Well, almost no investment. Of the 500 stocks in the S&P, only nine made money during that period. Of those nine stocks, six of them (two-thirds) had this advantage. But this advantage also helps these stocks beat the market in uptrends, too. After all, Buffett has made billions thanks to companies with this trait. So what single advantage can capture the attention of Warren Buffett… help a stock beat the market in an uptrend… and help it fall less in a downtrend? That… Read More

Whole Foods Market (Nasdaq: WFM) isn’t winning any popularity contests lately. On top of being sardonically dubbed “Whole Paycheck,” the natural and organic foods grocery chain has seen its stock price nearly cut in half this year. A pricing scandal, expansion costs, growing competition and slowing same-store sales have weighed on the stock. And last week, shares got hammered when the company reported earnings that missed analysts’ estimates and posted its first same-store quarterly sales decline since 2009. The post-earnings headlines were dismal, and many investors probably wouldn’t touch Whole Foods with a 10-foot pole right now. But… Read More

Whole Foods Market (Nasdaq: WFM) isn’t winning any popularity contests lately. On top of being sardonically dubbed “Whole Paycheck,” the natural and organic foods grocery chain has seen its stock price nearly cut in half this year. A pricing scandal, expansion costs, growing competition and slowing same-store sales have weighed on the stock. And last week, shares got hammered when the company reported earnings that missed analysts’ estimates and posted its first same-store quarterly sales decline since 2009. The post-earnings headlines were dismal, and many investors probably wouldn’t touch Whole Foods with a 10-foot pole right now. But based on its attractive valuation and two bullish catalysts, I think the stock is a screaming “buy.” #-ad_banner-# An Oversold Turnaround Ironically, Whole Foods’ recent poor performance may be the key to the company’s success. This latest earnings miss really puts management in the hot seat. They must take dramatic action or face more retaliation from investors. And management has already begun to take steps in the right direction. Last month, in an effort to cut costs, the company said it would eliminate 1,500 jobs, about 1.6% of its workforce. Then, on Wednesday, management announced a $1 billion… Read More

All major U.S. indices closed higher again last week, logging the sixth straight week of overall strength. The rally was led by the beleaguered small-cap Russell 2000, which gained 3.3%.  This is a good overall sign because small-cap and technology stocks typically lead the broader market higher and lower. However, the Russell 2000 still has more work to do. It is the only major index still in negative territory for 2015. The two strongest sectors last week were financial services, up 3.7%, and financials, up 2.7%. The weakest sector was utilities, which lost 3.4%. #-ad_banner-# These sector-related gains… Read More

All major U.S. indices closed higher again last week, logging the sixth straight week of overall strength. The rally was led by the beleaguered small-cap Russell 2000, which gained 3.3%.  This is a good overall sign because small-cap and technology stocks typically lead the broader market higher and lower. However, the Russell 2000 still has more work to do. It is the only major index still in negative territory for 2015. The two strongest sectors last week were financial services, up 3.7%, and financials, up 2.7%. The weakest sector was utilities, which lost 3.4%. #-ad_banner-# These sector-related gains and losses were a direct result of last week’s big jump in long-term U.S. interest rates. The yield on the benchmark 10-year Treasury note rose by 18 basis points to finish the week at 2.34%. Rising long-term interest rates benefit lending institutions while attracting yield-seeking investor assets away from riskier utilities.   I’ll talk in more detail about the direction of long-term interest rates and the effect they could have on financial asset prices later in this report. Tech Stocks Front And Center Again This Week Three weeks ago, I pointed out a bullish chart pattern in the S&P 500… Read More