#-ad_banner-#In the face of historic monetary stimulus from nearly every major central bank in the world over the past few years, an investment in gold would have seemed to be a “no-brainer.” Yet the precious metal’s price, around $1,178 per ounce, has barely budged. Now may be the time to give gold a fresh look.  Fundamental drivers appear in place for long-term upside, and technical support could provide a near-term catalyst. Moreover, shares of gold mining companies are selling at steep discounts to historical multiples and the slightest hint of stabilization could bring investors back in… Read More

#-ad_banner-#In the face of historic monetary stimulus from nearly every major central bank in the world over the past few years, an investment in gold would have seemed to be a “no-brainer.” Yet the precious metal’s price, around $1,178 per ounce, has barely budged. Now may be the time to give gold a fresh look.  Fundamental drivers appear in place for long-term upside, and technical support could provide a near-term catalyst. Moreover, shares of gold mining companies are selling at steep discounts to historical multiples and the slightest hint of stabilization could bring investors back in a big way. A confirmation of fundamentals for gold prices would send gold mining shares soaring. Fundamentals May Finally Be Turning Higher For Gold Gold’s recent subdued performance can be attributed to tepid global growth that has kept inflation at bay. Yet there are signs that both are on the way up. The World Bank estimates global growth of 2.8% this year and 3.3% in 2016. Economic growth in the stagnant eurozone is expected to jump 1.5%, the fastest pace since 2010. Prices in the eurozone… Read More

I still get goose bumps when I recall the first time I saw them live. The year was 1987. I was 10 years old, and a buddy of mine — whose father had season tickets to the Chicago Bulls — asked me if I wanted to go to a game. “Heck yeah!” I replied. #-ad_banner-#The fans… the atmosphere… the scale and intensity of Chicago Stadium blew me away. But now, looking back 28 years later, I realize it was one of my first lessons in investing. And if… Read More

I still get goose bumps when I recall the first time I saw them live. The year was 1987. I was 10 years old, and a buddy of mine — whose father had season tickets to the Chicago Bulls — asked me if I wanted to go to a game. “Heck yeah!” I replied. #-ad_banner-#The fans… the atmosphere… the scale and intensity of Chicago Stadium blew me away. But now, looking back 28 years later, I realize it was one of my first lessons in investing. And if you’ve ever been to a professional sporting event, then you too have witnessed the secret behind some of the most consistently profitable businesses in the world. It’s the reason some investments can shower you with wealth for the long haul, while knockoff competitors come and go. It’s a simple secret, but if you understand it you’ll know how to find the best values in any industry. Professional sports teams are what I like to call “irreplaceable assets.” You can’t simply come along and create it from scratch. A cheap knockoff can’t be developed in… Read More

These five stocks are widely owned and featured prominently in the media. You have, without a doubt, heard of them, and it’s very possible you even own a few. But I wouldn’t touch any of them with a 10-foot pole. One of the stocks is a struggling retailer that has failed to turn a profit in the past 12 quarters despite the intervention of deep-pocketed hedge fund manager turned corporate raider Edward Lampert. Bottom fishers may be looking to cast a line after the steep 35% decline in the past month, but it’s much too dangerous to own,… Read More

These five stocks are widely owned and featured prominently in the media. You have, without a doubt, heard of them, and it’s very possible you even own a few. But I wouldn’t touch any of them with a 10-foot pole. One of the stocks is a struggling retailer that has failed to turn a profit in the past 12 quarters despite the intervention of deep-pocketed hedge fund manager turned corporate raider Edward Lampert. Bottom fishers may be looking to cast a line after the steep 35% decline in the past month, but it’s much too dangerous to own, even at these depressed levels. I’m also recommending you stay far away from a mega-cap tech company with heavy mutual fund ownership that collectively lost those funds billions since missing earnings estimates earlier this month. Plus, a well-known package delivery service, retailer and Internet content company that all have precarious charts.  #-ad_banner-# Although these companies are very different, they have two things in common. First, each of these stocks has low relative strength (RS). Relative strength compares the price performance of a stock against every other stock in the market over the past six months. A stock’s RS… Read More

The major U.S. stock indices finished last week fractionally lower despite very strong housing data, as anxiety over a potential debt default in Greece this week undoubtedly triggered some defensive liquidation heading into the weekend. Despite the day-to-day volatility that has kept investors on edge for months, the S&P 500 is only up 2.1% for the year. #-ad_banner-# The week’s strongest and weakest sectors were both influenced by the recent rise in long-term U.S. interest rates. Financials put in the best showing, as increasing rates and a widening yield curve both make banks more profitable. Moreover, Asbury Research’s own ETF-based… Read More

The major U.S. stock indices finished last week fractionally lower despite very strong housing data, as anxiety over a potential debt default in Greece this week undoubtedly triggered some defensive liquidation heading into the weekend. Despite the day-to-day volatility that has kept investors on edge for months, the S&P 500 is only up 2.1% for the year. #-ad_banner-# The week’s strongest and weakest sectors were both influenced by the recent rise in long-term U.S. interest rates. Financials put in the best showing, as increasing rates and a widening yield curve both make banks more profitable. Moreover, Asbury Research’s own ETF-based metric shows that, on a percentage basis, the biggest inflow of sector bet-related investor assets over the past one-month and three-month periods again went into financials. This trend has fueled the sector’s outperformance. Utilities were the weakest sector, as rising yields in risk-free Treasuries continued to lure yield-seeking investor assets away from utility stocks. Stocks’ Pinball Game Poised To Continue This Week  In the June 15 Market Outlook, I pointed out that the bellwether S&P 500 was testing minor support at 2,072 amid near-term oversold conditions. I said this level should become the springboard for… Read More

I look over hundreds of financial statements week in and week out, and I’ve come to one important conclusion: There’s a lot of unintentional financial trickery that goes on when corporations report their annual financial performance. #-ad_banner-#It’s a simple result of the fact that financial reporting has become so complex that few people — even those preparing the numbers — truly understand what’s behind the figures. And while on some level that’s concerning, I think it actually creates a major opportunity for investors who are willing to dig into the numbers… Read More

I look over hundreds of financial statements week in and week out, and I’ve come to one important conclusion: There’s a lot of unintentional financial trickery that goes on when corporations report their annual financial performance. #-ad_banner-#It’s a simple result of the fact that financial reporting has become so complex that few people — even those preparing the numbers — truly understand what’s behind the figures. And while on some level that’s concerning, I think it actually creates a major opportunity for investors who are willing to dig into the numbers and find out what they really mean. Let me show you. Most corporate financial announcements usually focus on one number: earnings. They typically compare this figure to the previous quarter or the year-ago period (ex. “profits were down 5% as compared to Q1 2014”). Now don’t get me wrong, it is an important metric, but here’s the problem: earnings are affected by a lot of things that may or may not make a difference to the business, such as non-cash charges for things like stock options or depreciation… Read More

#-ad_banner-# ​Competition is a given in any business, but it’s white hot for convenience stores. This crowded field includes scads of mom and pop operations, as well as the massive nationwide chains of 7-Eleven, Hess Corp. (NYSE: HES), Exxon Mobil Corp. (NYSE: XOM) and others. With so little to set them apart, industry participants can usually command little in the way of pricing power or customer loyalty. Profit margins are typically scant. So it’s the rare gem that’s able to develop lasting competitive advantages and consistently deliver superior financial metrics. And I’ve found… Read More

#-ad_banner-# ​Competition is a given in any business, but it’s white hot for convenience stores. This crowded field includes scads of mom and pop operations, as well as the massive nationwide chains of 7-Eleven, Hess Corp. (NYSE: HES), Exxon Mobil Corp. (NYSE: XOM) and others. With so little to set them apart, industry participants can usually command little in the way of pricing power or customer loyalty. Profit margins are typically scant. So it’s the rare gem that’s able to develop lasting competitive advantages and consistently deliver superior financial metrics. And I’ve found such a gem: Casey’s General Stores, Inc. (Nasdaq: CASY) is a thriving Midwestern chain operating both self-service gas stations and convenience stores. This business model is common, but Casey’s turned it into something special. The company’s sales have historically grown at an 11% pace and are nearing $8 billion, up from $2.8 billion in fiscal (April) 2005. Profits climbed by more than sixfold during that time to $181 million annually. Not surprisingly, Casey’s stock is demolishing the S&P 500. How did Casey’s become such a standout? For one thing, by taking the road less traveled. Read More

#-ad_banner-#It’s tough out there for a value investor. The market has shrugged off worries of a Greek bond default, and the major stock market indices remain near peak levels.  A clear sign of robust markets:  The S&P trades for more than 20 times trailing earnings. Luckily, the market aphorism, “It’s not a stock market, it’s a market of stocks” holds true. There are bargains out there waiting to be found, especially in one key sector. The uncertainty about interest rates has pushed the prices of real estate down, but one of the most consistently profitable real estate companies has fallen… Read More

#-ad_banner-#It’s tough out there for a value investor. The market has shrugged off worries of a Greek bond default, and the major stock market indices remain near peak levels.  A clear sign of robust markets:  The S&P trades for more than 20 times trailing earnings. Luckily, the market aphorism, “It’s not a stock market, it’s a market of stocks” holds true. There are bargains out there waiting to be found, especially in one key sector. The uncertainty about interest rates has pushed the prices of real estate down, but one of the most consistently profitable real estate companies has fallen too far, and a golden opportunity for long-term investors has emerged. A True Blue-Chip Company Ventas, Inc. (NYSE: VTR) is a large healthcare-focused real estate investment trust (REIT), and with a market value of $21 billion, it is one of the largest REITs in the healthcare industry. The company is extremely well diversified, owning a broad portfolio of senior housing facilities, medical office buildings and hospitals. This company’s funds from operations (FFO) have  grown 10% annually since 2004, and that has made shareholders rich along the way. Despite the announcement of a strong 8% increase in FFO… Read More

Let’s make a wager. You have five days to drive across the country. If you make it in less than five days, you will win $20,000. If you don’t, then you owe me $10,000. There are some caveats to this deal: First, you have no map, compass, GPS unit or directions — nothing that will assist you on your journey. Second, there are no road signs; only mile markers. #-ad_banner-#Are you still willing to blindly drive across the country risking $10,000 at the chance you’ll make $20,000? In this scenario, it’s… Read More

Let’s make a wager. You have five days to drive across the country. If you make it in less than five days, you will win $20,000. If you don’t, then you owe me $10,000. There are some caveats to this deal: First, you have no map, compass, GPS unit or directions — nothing that will assist you on your journey. Second, there are no road signs; only mile markers. #-ad_banner-#Are you still willing to blindly drive across the country risking $10,000 at the chance you’ll make $20,000? In this scenario, it’s easy to tell that taking this bet is a bad idea, but this sort of blind gambling is indicative of how many average investors navigate the markets. Most investors buy a stock and hope that it goes up. When it doesn’t and the stock plummets 20%, 30% even 50%, they continue to hold on… clinging to that hope that it will soon rebound. Well I’m here to tell you: hope isn’t a strategy. If there’s one thing you need to learn when it comes to investing, it’s how to invest with… Read More

One of my favorite types of stocks is those that have recently hit new all-time highs. That’s because with no overhead resistance in their path there is nothing to stop them from moving even higher from a technical perspective. And when that stock has an upbeat fundamental outlook to support the strong technical picture, I know I have likely found a winner. That’s why I’m enthusiastic about Dollar General (NYSE: DG), the largest U.S. discount retailer by store count. The stock is in a powerful uptrend, making new high after new high this year. A quick note before we get… Read More

One of my favorite types of stocks is those that have recently hit new all-time highs. That’s because with no overhead resistance in their path there is nothing to stop them from moving even higher from a technical perspective. And when that stock has an upbeat fundamental outlook to support the strong technical picture, I know I have likely found a winner. That’s why I’m enthusiastic about Dollar General (NYSE: DG), the largest U.S. discount retailer by store count. The stock is in a powerful uptrend, making new high after new high this year. A quick note before we get to the trade: Many investors are reluctant to buy stocks near 52-week highs, regardless of any positive news or information about the company. This is due to “buy low, sell high” conditioning. Yet, there is proven reason why this is a huge mistake. If you’re serious about momentum investing, there is a presentation I think you should see. #-ad_banner-# Dollar General — which sells everything from A to Z (apparel to Ziplock bags) — has over 12,000… Read More