#-ad_banner-#With certain types of investments, you just know you’re in for a wild ride. But there’s no sense in assuming extra risk without a reasonable chance of a proportional reward. This is why I encourage investors to think twice about getting involved with Russian stocks. As anyone who follows emerging markets knows, Russian equities are exceptionally dangerous. Typically more than twice as volatile as U.S. stocks, they often vacillate between massive gains and dismal losses. However, investors willing to endure the extreme volatility haven’t gotten nearly enough in return. While they have done well lately, long-term investors have been pummeled. Read More

#-ad_banner-#With certain types of investments, you just know you’re in for a wild ride. But there’s no sense in assuming extra risk without a reasonable chance of a proportional reward. This is why I encourage investors to think twice about getting involved with Russian stocks. As anyone who follows emerging markets knows, Russian equities are exceptionally dangerous. Typically more than twice as volatile as U.S. stocks, they often vacillate between massive gains and dismal losses. However, investors willing to endure the extreme volatility haven’t gotten nearly enough in return. While they have done well lately, long-term investors have been pummeled. The largest exchange-traded fund to track Russian stocks, Market Vectors Russia ETF (NYSE: RSX), has gained nearly 25% year to date, but RSX has lost nearly half its value since inception in April 2007. And the problem isn’t fund-specific. Templeton Russia & Eastern Europe (NYSE: TRF), a closed-end mutual fund that focuses on Russia, plunged by more than 60% during the same eight-year period. Such data might trigger a Pavlovian response in contrarians, who often view deep pullbacks as buying opportunities. And with a forward price-to-earnings (P/E) ratio of around five, the Russian market… Read More

In February, I made the case to readers of my premium options service, Profit Amplifier, that a market correction could happen sometime this year. My analysis was primarily based on slowing economic data, downward revisions in corporate earnings growth and the S&P 500’s high price-to-earnings ratio. If I’m correct, then it means my readers and I have the chance to not only protect ourselves, but even profit handsomely from the fall. And we’ll do it in a very simple, easy-to-understand way: by using put options. #-ad_banner-#Given current market conditions, it’s crucial you understand how… Read More

In February, I made the case to readers of my premium options service, Profit Amplifier, that a market correction could happen sometime this year. My analysis was primarily based on slowing economic data, downward revisions in corporate earnings growth and the S&P 500’s high price-to-earnings ratio. If I’m correct, then it means my readers and I have the chance to not only protect ourselves, but even profit handsomely from the fall. And we’ll do it in a very simple, easy-to-understand way: by using put options. #-ad_banner-#Given current market conditions, it’s crucial you understand how options work. Earlier this month, I introduced you to the basics of call options. Today I’d like to discuss put options, which will be especially important when a market downturn occurs. If you’re completely new to buying put options, that’s okay. They’re one of the most basic and common of all options strategies. Puts 101 Puts are commonly used as a substitution for shorting stock. But with options, we have the opportunity to preserve our trading capital by risking less money upfront, while also amplifying our potential profits. You see,… Read More

#-ad_banner-#Since the 1950’s, computer data has been stored on spinning platters, known as hard disk drives. These drives consume a lot of energy and give off a lot of heat. A half century later, hard disk drives met their match in solid-state storage drives, which are much faster, have no moving parts and are available in DRAM and NAND flash memory (I’ll talk about the difference between the two shortly). But adoption of solid-state technology has been slow due to their relatively high price points. Yet the cost to build solid-state devices is slowly dropping, and over an extended time period, it… Read More

#-ad_banner-#Since the 1950’s, computer data has been stored on spinning platters, known as hard disk drives. These drives consume a lot of energy and give off a lot of heat. A half century later, hard disk drives met their match in solid-state storage drives, which are much faster, have no moving parts and are available in DRAM and NAND flash memory (I’ll talk about the difference between the two shortly). But adoption of solid-state technology has been slow due to their relatively high price points. Yet the cost to build solid-state devices is slowly dropping, and over an extended time period, it is increasingly the better choice. The Storage Networking Industry Association calculated the total cost of ownership for hard disk and solid-state storage. As the chart below illustrates, the cost to operate solid-state storage over five years is nearly a third that of hard disk drives. Hard disk drives still represent the majority of memory, but they are experiencing annualized unit sales declines in excess of 15% due to the new price advantage of solid state. Unit volume for solid-state drives is expected to grow at an annual pace of 59% to 3.9 million units over the three years… Read More

What do you consider when looking to purchase a new dividend-paying security? If you’re like most income investors, you probably search out its yield or investigate whether it can maintain its dividend. #-ad_banner-#These are important criteria, but there’s another trait that many investors overlook that is just as important: dividend frequency. On one hand, I understand why it’s often overlooked. After all, if a security pays an annual dividend of $1.20 per share, what difference does it make if it pays $1.20 per share once a year or $0.10 per share… Read More

What do you consider when looking to purchase a new dividend-paying security? If you’re like most income investors, you probably search out its yield or investigate whether it can maintain its dividend. #-ad_banner-#These are important criteria, but there’s another trait that many investors overlook that is just as important: dividend frequency. On one hand, I understand why it’s often overlooked. After all, if a security pays an annual dividend of $1.20 per share, what difference does it make if it pays $1.20 per share once a year or $0.10 per share 12 times a year? All else being equal, however, a more frequent dividend payer is better than a less frequent dividend payer… especially if you are reinvesting your dividends. Earn More Income The fact is if you reinvest your dividends as I do, you will ultimately make more money with a monthly dividend payer than an annual dividend payer. To see what I mean, take a look at the chart below. It contrasts the growth of $100,000 invested in securities yielding 7%. One security makes monthly distributions while the other… Read More

European stock markets have come under heavy pressure over the slow-motion train wreck of Greece’s potential default. All of the major European indices have dropped below their 50-day moving averages. The markets in France, Spain, Austria and Germany became so weak that they touched long-term support of their 200-day moving averages. This pressure from across the pond weighed on U.S. markets with the S&P 500 briefly slipping below its 50-day moving average twice in the past two weeks. Yet while things here at home looked wobbly, they didn’t break down. On Thursday, the S&P 500 saw a bullish… Read More

European stock markets have come under heavy pressure over the slow-motion train wreck of Greece’s potential default. All of the major European indices have dropped below their 50-day moving averages. The markets in France, Spain, Austria and Germany became so weak that they touched long-term support of their 200-day moving averages. This pressure from across the pond weighed on U.S. markets with the S&P 500 briefly slipping below its 50-day moving average twice in the past two weeks. Yet while things here at home looked wobbly, they didn’t break down. On Thursday, the S&P 500 saw a bullish break above a resistance line on heavy volume. On the chart I’ve also marked an important support level going back to April that has stopped four declines. On the same day, the Nasdaq followed suit with an even sharper rally to a new high on heavy volume in what is known as a “follow-through day.” Coined by William O’Neill of Investor’s Business Daily, it is a sign of a new intermediate-term uptrend.  #-ad_banner-# While not every follow-though day has led to a sustained rally — no indicator is perfect — no rally of significance has… Read More

Successful companies don’t always need to target large markets. In some cases, a very narrow focus on a small niche market can also lead to huge profits. It certainly has for Alexion Pharmaceuticals, Inc. (Nasdaq: ALXN). The company’s blockbuster drug, called Soliris, received FDA approval in 2007 and now accounts for more than $2 billion in annual sales (Annual net income now averages an impressive $600 million). #-ad_banner-#Soliris doesn’t target a leading malady such as diabetes or high cholesterol. Instead, this drug is aimed at people with very rare genetic… Read More

Successful companies don’t always need to target large markets. In some cases, a very narrow focus on a small niche market can also lead to huge profits. It certainly has for Alexion Pharmaceuticals, Inc. (Nasdaq: ALXN). The company’s blockbuster drug, called Soliris, received FDA approval in 2007 and now accounts for more than $2 billion in annual sales (Annual net income now averages an impressive $600 million). #-ad_banner-#Soliris doesn’t target a leading malady such as diabetes or high cholesterol. Instead, this drug is aimed at people with very rare genetic blood disorders, which cause the body to destroy its own red blood cells. If these disorders sound deadly, it’s because they are. Left untreated, they’re highly likely to kill within five years of diagnosis. But those affected can live a normal life with proper therapy, and at present Soliris is the only option. Like many rare-disease treatments, the drug carries an eye-popping price tag:currently $400,000-to-$500,000 a year per patient. Since these patients can’t survive without Soliris, governments and other third-party payers are typically willing to shoulder the cost, ensuring blockbuster status… Read More

I would bet few investors really understand what’s behind the success of technology behemoth, Apple, Inc. (Nasdaq: AAPL). The rags-to-riches story of Steve Jobs and Steve Wozniak building the first Apple computer in a garage is widely known. And of course, its products like the iPod, iPhone and Macbook are undeniably popular. #-ad_banner-#But today I want to share with you the secret that’s led Apple to become the world’s largest company by market capitalization and helped its share price sky rocket more than 12,600% since 2001. Despite what most people think,… Read More

I would bet few investors really understand what’s behind the success of technology behemoth, Apple, Inc. (Nasdaq: AAPL). The rags-to-riches story of Steve Jobs and Steve Wozniak building the first Apple computer in a garage is widely known. And of course, its products like the iPod, iPhone and Macbook are undeniably popular. #-ad_banner-#But today I want to share with you the secret that’s led Apple to become the world’s largest company by market capitalization and helped its share price sky rocket more than 12,600% since 2001. Despite what most people think, it’s not the company’s revolutionary products that drive its success… The key to understanding Apple’s success can be seen in a simple pattern. Once you identify this pattern, the catalyst to future growth for Apple — and the way investors can make money from the company today — will be apparent. After Apple sold the first iPod in October 2001, it was not received well by critics, consumers and investors. Just look at this chart showing Apple’s share price in the 18 months following the iPod launch: Not what you’d expect,… Read More

The surge in natural gas production has changed the energy landscape in the United States. Production jumped 44% between 2005 and 2014 compared to a decline of 4.5% over the previous nine-year period. Prices for natural gas at the Henry Hub in Louisiana jumped 162% between 2002 and 2008 on lower production and an economic boom in emerging markets. By 2012, prices had fallen nearly 70% to $2.75 per million BTU. Beyond a few spikes on colder weather, prices have flatlined between $2.50 and $3.50 for the past two and a half years.  Futures prices on… Read More

The surge in natural gas production has changed the energy landscape in the United States. Production jumped 44% between 2005 and 2014 compared to a decline of 4.5% over the previous nine-year period. Prices for natural gas at the Henry Hub in Louisiana jumped 162% between 2002 and 2008 on lower production and an economic boom in emerging markets. By 2012, prices had fallen nearly 70% to $2.75 per million BTU. Beyond a few spikes on colder weather, prices have flatlined between $2.50 and $3.50 for the past two and a half years.  Futures prices on the Chicago Mercantile Exchange (CME) suggest traders are not expecting much to change this year, with the December contract priced at $3.17. But two catalysts may prove speculators wrong and spark a rally in natural gas prices. Traders who get positioned now stand to make up to 50% profits without ever touching a futures contract.  #-ad_banner-# Natural Gas Exports About to Surge Natural gas exports have increased along with the production surge, but regulations that prohibit export to non-free trade agreement countries without approval seriously limit how much can be exported.  Price differences between… Read More

Note from the Publisher: As a valued StreetAuthority reader, I’d like to cordially invite you to a special event.Two of StreetAuthority’s leading analysts sat down for a one-on-one interview about three epic market trends Wall Street is completely missing. This free 30-minute online conference will touch on 1) why inside information points to an epic commodities rebound, 2) what China is hiding from U.S. investors and 3) the next big tech revolution that will rival smartphones… as well as which stocks have the potential to soar from these events. Registration spots are going quickly for our June 23 broadcast. To… Read More

Note from the Publisher: As a valued StreetAuthority reader, I’d like to cordially invite you to a special event.Two of StreetAuthority’s leading analysts sat down for a one-on-one interview about three epic market trends Wall Street is completely missing. This free 30-minute online conference will touch on 1) why inside information points to an epic commodities rebound, 2) what China is hiding from U.S. investors and 3) the next big tech revolution that will rival smartphones… as well as which stocks have the potential to soar from these events. Registration spots are going quickly for our June 23 broadcast. To sign up, click here right now. ____________________________________ The U.S. stock market finished modestly higher last week as the tech-heavy Nasdaq Composite and small-cap Russell 2000 set new all-time highs. The bellwether S&P 500 and Dow Jones Industrial Average moved back to the upper end of their recent ranges.   #-ad_banner-# Although last week’s new highs by market-leading technology and small-cap stocks are certainly encouraging, almost halfway through 2015 the broad market S&P 500 is only up 2.5%. Critical resistance just above the market and underlying support just below it continue to get closer and closer… Read More