At the start of 2015, investors could choose from 1,411 exchange-traded funds. And that figure keeps on growing as fund sponsors open three or four funds for every one that they close. These firms are launching funds simply because the demand is there. But how much is too much? After all, so many new ETFs these days seem to be quite similar to existing offerings. For example, there are now dozens of ETFs that track the S&P 500, or a basket of stocks that are substantively similar.  As far as I’m concerned, it’s much more interesting to discover new… Read More

At the start of 2015, investors could choose from 1,411 exchange-traded funds. And that figure keeps on growing as fund sponsors open three or four funds for every one that they close. These firms are launching funds simply because the demand is there. But how much is too much? After all, so many new ETFs these days seem to be quite similar to existing offerings. For example, there are now dozens of ETFs that track the S&P 500, or a basket of stocks that are substantively similar.  As far as I’m concerned, it’s much more interesting to discover new ETFs that aren’t simply the “same-old, same-old.” Here’s a look at five ETFs that have launched in 2015, and deserve clear consideration if you want the best lazy portfolio for 2015. Innovator IBD 50 ETF (NYSE: FFTY) Here at StreetAuthority, we are big fans of companies that seek out — and profit from — innovation.  In fact in our Top 10 Stocks newsletter, we have a portfolio of stocks that we call “American Innovators.” This new ETF, launched in April, holds a basket of 50 innovative companies, many of which are launching products. Top holdings include chipmaker, Avago Technologies… Read More

Income investments are an important portion of any retirement portfolio. Historically, they’ve provided retirees monthly or quarterly income distributions to help cover expenses, healthcare and any other living expenses. #-ad_banner-#The other morning I was perusing a Morgan Stanley Smith Barney report that outlined four different 401(k) allocations. While there are many factors that go into an individual investor’s asset allocation, the portfolios range from 25%-to-60% in income-producing bonds. Along with bonds, the portfolios invest anywhere from 10%-to-54% in large-cap stocks. Assuming that part of the… Read More

Income investments are an important portion of any retirement portfolio. Historically, they’ve provided retirees monthly or quarterly income distributions to help cover expenses, healthcare and any other living expenses. #-ad_banner-#The other morning I was perusing a Morgan Stanley Smith Barney report that outlined four different 401(k) allocations. While there are many factors that go into an individual investor’s asset allocation, the portfolios range from 25%-to-60% in income-producing bonds. Along with bonds, the portfolios invest anywhere from 10%-to-54% in large-cap stocks. Assuming that part of the reason for investing in these types of assets is to add income-producing securities to your portfolio, a logical question to ask is: Do these models account for the lower yields that we’re seeing in the current environment? I doubt it. If you’re trying to earn income by investing in large-cap stocks and bonds, you face serious obstacles. Mainly that yields are down across the board…   The average yield in the S&P 500 is only 1.9%. At that rate, you’re not even keeping up with inflation. It would… Read More

#-ad_banner-#Although the city of Detroit’s $18 billion bankruptcy declaration in 2013 was taken in stride by the stock market, bond insurance companies lost billions and saw their stocks slide in subsequent month. This time around, Puerto Rico’s current financial struggles might not be so easily digested by the markets. The island’s $72 billion debt burden is so vast that the  governor says it is “just not payable.” In response, investors are fleeing shares of the municipal bond insurers, with losses exceeding 35% for one of the stocks.   Yet demand for insurance in the $3.6 trillion… Read More

#-ad_banner-#Although the city of Detroit’s $18 billion bankruptcy declaration in 2013 was taken in stride by the stock market, bond insurance companies lost billions and saw their stocks slide in subsequent month. This time around, Puerto Rico’s current financial struggles might not be so easily digested by the markets. The island’s $72 billion debt burden is so vast that the  governor says it is “just not payable.” In response, investors are fleeing shares of the municipal bond insurers, with losses exceeding 35% for one of the stocks.   Yet demand for insurance in the $3.6 trillion municipal bond market won’t be drying up, and the recent selloff maybe a buying opportunity, at least for investors that can handle higher volatility and wait for the best of breed to emerge stronger. Bond Apocalypse Puerto Rico’s woes come as no surprise. The popular tax haven collects no capital gains tax and levies only a 4% tax on its residents’ income. Nearly a decade of economic stagnation has precipitated an historic migration of residents to the United States mainland. A third of those born in Puerto Rico now live on the mainland, and the… Read More

Some argue that America is on the decline. From ballooning government debt to prolonged conflict overseas to scandalous behavior on Wall Street, it’s easy to think that these talking heads might be on to something. #-ad_banner-#Likewise, conventional wisdom says that American industry is “over the hill.” Many observers today believe that U.S. firms simply can’t compete with the likes of the emerging Chinese and Brazilian markets. It’s certainly true that on a basic scale, those economies are growing faster. America’s 1.9% GDP growth last year doesn’t come close to China’s 7.7%. Read More

Some argue that America is on the decline. From ballooning government debt to prolonged conflict overseas to scandalous behavior on Wall Street, it’s easy to think that these talking heads might be on to something. #-ad_banner-#Likewise, conventional wisdom says that American industry is “over the hill.” Many observers today believe that U.S. firms simply can’t compete with the likes of the emerging Chinese and Brazilian markets. It’s certainly true that on a basic scale, those economies are growing faster. America’s 1.9% GDP growth last year doesn’t come close to China’s 7.7%. Sure, America has its problems. There’s no denying that. But if you look a little deeper, you’ll find that there’s one area — perhaps the most important area — where America still firmly leads the globe. Innovation. Across the Fortune 500 landscape, you’ll find hundreds of American companies allocating huge sums of money toward research & development (R&D). Just look at Forbes’ recent list of the world’s most innovative companies. Six firms out of the top 10 on the list are headquartered in the United States. Read More

Financial statements offer a great deal of insight into the complex process that is investment analysis. Successful analysis requires understanding what these statements say… but also what they don’t say. For example, the income statement offers insight into how much a company is earning, but it doesn’t tell us whether earnings are likely to grow. To answer questions about the quality of earnings and whether earnings growth is sustainable, we need to look at the cash flow statement.  Personally, I believe cash flow is one of the most important fundamental indicators. To understand the importance of cash flow, think of… Read More

Financial statements offer a great deal of insight into the complex process that is investment analysis. Successful analysis requires understanding what these statements say… but also what they don’t say. For example, the income statement offers insight into how much a company is earning, but it doesn’t tell us whether earnings are likely to grow. To answer questions about the quality of earnings and whether earnings growth is sustainable, we need to look at the cash flow statement.  Personally, I believe cash flow is one of the most important fundamental indicators. To understand the importance of cash flow, think of your own financial situation. How much you earn is important, but it’s not the only factor in play. The key to success is managing your cash flow. If you spend less cash than you take home, you’re probably not going to be dealing with money problems. But consistently having bills that exceed the amount of cash coming in is simply an unsustainable model and a recipe for bankruptcy. #-ad_banner-# The same is true of businesses. Whether you’re looking at the components of a personal or professional budget, it’s crucial to understand where the money is coming from,… Read More

Lofty valuations can be an enigma. While they often mean that a stock is overheated and set to correct, they can also reflect investor optimism. If investors think a company will outperform, then they’re often happy to pay a large premium for its stock. The final interpretation depends on the company. #-ad_banner-#Take Acuity Brands, Inc. (NYSE: AYI), for example, which is the world’s top producer of lighting fixtures and related accessories for commercial and other nonresidential settings. The firm’s price-to-earnings (P/E) ratio of 42 is about twice that of the broader stock market. But rather than being a sell signal,… Read More

Lofty valuations can be an enigma. While they often mean that a stock is overheated and set to correct, they can also reflect investor optimism. If investors think a company will outperform, then they’re often happy to pay a large premium for its stock. The final interpretation depends on the company. #-ad_banner-#Take Acuity Brands, Inc. (NYSE: AYI), for example, which is the world’s top producer of lighting fixtures and related accessories for commercial and other nonresidential settings. The firm’s price-to-earnings (P/E) ratio of 42 is about twice that of the broader stock market. But rather than being a sell signal, this relatively high P/E signals widespread confidence in Acuity’s future. The company has increased earnings by 20% annually since 2010, and the market sees it keeping up a similar pace of expansion in the coming years. Why should investors expect sustained strong growth? Because the company operates in a fragmented industry, and the company’s solid 20% market share should keep growing, thanks to a 1.7-million item product portfolio. Plus, the firm is far outclassing rivals in the industry’s premier growth segment: light-emitting diode (LED)-related products, which are gradually replacing those based on traditional fluorescent lightbulbs. Acuity capitalizes on this hot… Read More

Warning: Major Correction Could Begin July 8th ​One of our colleagues just showed us an urgent video warning of a major market correction. It features a millionaire trading prodigy who predicted and profited from the dot-com bubble and the 2008 crash, and he says hundreds of the most popular stocks could be in danger of plunging 10%-30%… overnight. To watch this free short video, click here. Sincerely, Brad Briggs Executive Editor, StreetAuthority Last… Read More

Warning: Major Correction Could Begin July 8th ​One of our colleagues just showed us an urgent video warning of a major market correction. It features a millionaire trading prodigy who predicted and profited from the dot-com bubble and the 2008 crash, and he says hundreds of the most popular stocks could be in danger of plunging 10%-30%… overnight. To watch this free short video, click here. Sincerely, Brad Briggs Executive Editor, StreetAuthority Last month I wrote about an industry that has not only outperformed all others since 1900, but also offered some of the best yields in the United States. And while I don’t advocate smoking, history shows that investing in tobacco companies is hugely profitable for investors looking for both capital gains and outsized dividends. #-ad_banner-#Today I’d like to share with you an even better way to play the industry… with an investment many tend to overlook. To reiterate how powerful tobacco stocks are, consider this: One dollar invested in… Read More

WARNING: A Major Correction Could Begin This Week A trading prodigy is predicting the biggest stock market correction since 2008.  In short, an important market event will take place on Wednesday that could trigger a freefall in stocks.  He’s been tracking this situation for months. I urge you to take a few seconds to listen to what he has to say. If he’s right, the information he’s going to share could help you save your portfolio and even make money in the coming correction. Click here to find out how to prepare yourself… Read More

WARNING: A Major Correction Could Begin This Week A trading prodigy is predicting the biggest stock market correction since 2008.  In short, an important market event will take place on Wednesday that could trigger a freefall in stocks.  He’s been tracking this situation for months. I urge you to take a few seconds to listen to what he has to say. If he’s right, the information he’s going to share could help you save your portfolio and even make money in the coming correction. Click here to find out how to prepare yourself now.  Sincerely,  Frank Bermea Publisher, Profitable Trading  It takes a lot to turn a bear market around, but for oil services stocks it seemed that the requirements for such a move were starting to gel in May.  The PHLX Oil Service Sector Index (OSX) had just made a tentative breakout from a bottoming pattern that was a cross between a double-bottom and an inverted head-and-shoulders. It even moved above its 50-day moving average, which itself was rising. #-ad_banner-# Paradoxically, OSX ran out of… Read More

WARNING: A Major Correction Could Begin This Week A trading prodigy is predicting the biggest stock market correction since 2008.  In short, an important market event will take place on Wednesday that could trigger a freefall in stocks.  He’s been tracking this situation for months. I urge you to take a few seconds to listen to what he has to say. If he’s right, the information he’s going to share could help you save your portfolio and even make money in the coming correction. Click here to find out how to prepare yourself… Read More

WARNING: A Major Correction Could Begin This Week A trading prodigy is predicting the biggest stock market correction since 2008.  In short, an important market event will take place on Wednesday that could trigger a freefall in stocks.  He’s been tracking this situation for months. I urge you to take a few seconds to listen to what he has to say. If he’s right, the information he’s going to share could help you save your portfolio and even make money in the coming correction. Click here to find out how to prepare yourself now.  Sincerely,  Frank Bermea Publisher, Profitable Trading  The major U.S. stock indices finished lower for the second consecutive week, led by the Russell 2000, which lost 2.5%. Since small caps, along with technology stocks, typically lead the broader market higher and lower, last week’s relative weakness in the Russell 2000 suggests investors were bracing for the potential implications of a “no” vote to Sunday’s bailout referendum in Greece. This Greek debt crisis has dominated both the headlines and recent market direction. From a trend standpoint, last week’s market… Read More