Federal Reserve action gave stocks a short-term boost last week, but without additional news, trading volume is expected to be low through the holidays. Traders Cheer the Fed SPDR S&P 500 (NYSE: SPY) gained 1.94% last week after the Fed gave traders everything they seemed to want. Asset purchases will continue, but instead of buying $85 billion worth of bonds every month, the Fed will only be buying $75 billion a month starting next month.#-ad_banner-# The general expectation seems to be that there will be a gradual decrease in the purchase amount announced at future Fed meetings unless the… Read More

Federal Reserve action gave stocks a short-term boost last week, but without additional news, trading volume is expected to be low through the holidays. Traders Cheer the Fed SPDR S&P 500 (NYSE: SPY) gained 1.94% last week after the Fed gave traders everything they seemed to want. Asset purchases will continue, but instead of buying $85 billion worth of bonds every month, the Fed will only be buying $75 billion a month starting next month.#-ad_banner-# The general expectation seems to be that there will be a gradual decrease in the purchase amount announced at future Fed meetings unless the economy weakens. Even though the amount of the purchases will be smaller, the Fed should still be adding a significant amount of money to the economy through this program. Reducing purchases by $10 billion after every meeting would result in $460 billion in monetary stimulus to the economy next year. The Fed is a bullish factor for the stock market in 2014. However, earnings and economic growth will probably be the factors that determine how stocks actually do in the next year. For now, those factors are bullish and gains for the full year seem likely unless earnings disappoint or… Read More

Anytime you can boast a 100% win-rate in anything, it’s nothing short of remarkable. The best political pundits struggle to predict how an election will turn out… Meteorologists often miss forecasts for where and when the next hurricane will hit… even the best baseball players only manage to get a hit 30% of the time.  And when it comes to the stock market, as we all know, even the brightest minds in the business can get it dead wrong.  But somehow, Amber Hestla, Chief Investment Strategist of our recently-launched Income Trader newsletter, has managed to pull… Read More

Anytime you can boast a 100% win-rate in anything, it’s nothing short of remarkable. The best political pundits struggle to predict how an election will turn out… Meteorologists often miss forecasts for where and when the next hurricane will hit… even the best baseball players only manage to get a hit 30% of the time.  And when it comes to the stock market, as we all know, even the brightest minds in the business can get it dead wrong.  But somehow, Amber Hestla, Chief Investment Strategist of our recently-launched Income Trader newsletter, has managed to pull off a 100% win-rate on every single one of her recommended trades. #-ad_banner-#I challenge you to find a single stock picker, market pundit or investment manager that can say the same thing about their record in 2013. Can Amber’s run continue? Well, nothing last forever. But one thing is for certain — her record so far has been nothing short of impressive. But how has she managed such an amazing streak?  We’ve talked a lot about Amber’s Income Trader newsletter recently. You can view our previous articles on the subject here… Read More

Following the basic rules of supply and demand can yield winning investment strategies — regardless of the industry.#-ad_banner-#​ Of course, this rule holds more weight in the commodities sector than any other. Falling supply and rising demand can yield robust gains, though this entire asset class has gone the wrong way in 2013. Supply has overwhelmed demand, and the prices for most commodities have been flat to down. The PowerShares DB Commodity Index ETF (NYSE: DBC), which tracks energy, mining and agricultural commodity prices, is off nearly 10% this year, badly lagging the S&P 500’s 25% gain. Read More

Following the basic rules of supply and demand can yield winning investment strategies — regardless of the industry.#-ad_banner-#​ Of course, this rule holds more weight in the commodities sector than any other. Falling supply and rising demand can yield robust gains, though this entire asset class has gone the wrong way in 2013. Supply has overwhelmed demand, and the prices for most commodities have been flat to down. The PowerShares DB Commodity Index ETF (NYSE: DBC), which tracks energy, mining and agricultural commodity prices, is off nearly 10% this year, badly lagging the S&P 500’s 25% gain. In response to falling prices for many commodities, producers have been restraining output, and if the laws of economics apply, then supply should fall below the levels of demand, leading prices to firm up. That process is surely underway in many areas, but unfortunately will take a considerable amount of time to play out. Here’s a deeper breakdown of specific commodity trends, and how they will likely fare in 2014. Gold And Silver​ When companies decide to invest millions to develop a gold or silver mine, then they better have a long-term focus. It can take years… Read More

I was one of the lucky few to be chosen by Google (Nasdaq: GOOG) to be a beta tester for the revolutionary Google Glass product.#-ad_banner-#​ Glass is a wearable computer screen that sits on the user’s face like a pair of glasses. Glass can be worn while other tasks are being completed, and all the user needs to do is glance upward to see the data on the screen. The beta testers are called Glass Explorers and use the product in everyday life while reporting likes and dislikes to Google. This is… Read More

I was one of the lucky few to be chosen by Google (Nasdaq: GOOG) to be a beta tester for the revolutionary Google Glass product.#-ad_banner-#​ Glass is a wearable computer screen that sits on the user’s face like a pair of glasses. Glass can be worn while other tasks are being completed, and all the user needs to do is glance upward to see the data on the screen. The beta testers are called Glass Explorers and use the product in everyday life while reporting likes and dislikes to Google. This is so the company can tweak the system prior to it actually going on the market, supposedly in early 2014.  After posting about my Google Glass Explorer invite on social media, I was inundated with offers to buy it. I could not believe how much money some folks were willing to pay just to obtain the invitation to purchase Glass and participate in Google’s program. I reasoned that I could purchase several pairs of Glass once it went on the market for the offers I was receiving. Therefore, I made the decision to trade the invite for a decent sum of… Read More

It’s been a good year for stocks that make up the Dow Jones Industrial Average, as 28 of the 30 components have risen in value (with IBM (NYSE: IBM) and Caterpillar (NYSE: CAT) as the only laggards).#-ad_banner-#​ And it’s been an even better year for the Dogs of the Dow. These are the 10 stocks that had the highest dividend yields when the year began, and this group has gained 25.5% in 2013 against a 24% gain for the broader index, according to DogsoftheDow.com. To be sure, that is not a significant… Read More

It’s been a good year for stocks that make up the Dow Jones Industrial Average, as 28 of the 30 components have risen in value (with IBM (NYSE: IBM) and Caterpillar (NYSE: CAT) as the only laggards).#-ad_banner-#​ And it’s been an even better year for the Dogs of the Dow. These are the 10 stocks that had the highest dividend yields when the year began, and this group has gained 25.5% in 2013 against a 24% gain for the broader index, according to DogsoftheDow.com. To be sure, that is not a significant level of outperformance. History has shown that this approach works best in so-so markets, and is not primed for relatively better gains when then market slumps badly or soars sharply. Considering the market has fared very well in 2013, 2014 gains may be much more muted, and if so, the Dow of the Dogs approach may again lead to sharp outperformance. Why Hated Is Good The appeal of this approach is self-evident. High dividend yields are a sign that a company is out of favor. And it’s a lot easier for a stock that has no supporters to win… Read More

“The greatness of America lies not in being more enlightened than any other nation, but rather in her ability to repair her faults.” – Alexis de Tocqueville#-ad_banner-#​ Old Alex, a noted French political thinker and writer, hit it on the screws with his observations of the American spirit during the early days of the Republic. Americans are good at recognizing (eventually) what’s broken, fixing it, and moving on. We’re also very good at figuring out how to profit from that change and evolution.  America has seen enormous change during the first decade of the 21st century. From the… Read More

“The greatness of America lies not in being more enlightened than any other nation, but rather in her ability to repair her faults.” – Alexis de Tocqueville#-ad_banner-#​ Old Alex, a noted French political thinker and writer, hit it on the screws with his observations of the American spirit during the early days of the Republic. Americans are good at recognizing (eventually) what’s broken, fixing it, and moving on. We’re also very good at figuring out how to profit from that change and evolution.  America has seen enormous change during the first decade of the 21st century. From the bursting of the tech bubble to the devastation of 9/11 to the financial crisis of 2008, the nation has struggled to get its economy and status as a global leader back on solid footing. But the seeds sown in that recovery process are beginning to bear fruit. It can only be described as an American Renaissance. Old line companies thought to be dead or dying are transforming themselves as leaders in new technology. All sorts of businesses are rushing to build infrastructure to support and transport America’s new found energy resources. Large manufacturers once caught up in the allure of… Read More

The S&P 500 has been on fire in 2013 — up an impressive 30%. But the question I’m getting the most from readers right now is, “Is the market about to correct?”  It’s not hard to see why. The S&P 500 is up more than 160% since the bull market started in March 2009. But I’m not worried about a correction… and neither should followers of my “Instant Income” strategy. Rather than engaging in panic selling or trying to buy on a dip (potentially catching a “falling knife”), they’re taking the emotion out… Read More

The S&P 500 has been on fire in 2013 — up an impressive 30%. But the question I’m getting the most from readers right now is, “Is the market about to correct?”  It’s not hard to see why. The S&P 500 is up more than 160% since the bull market started in March 2009. But I’m not worried about a correction… and neither should followers of my “Instant Income” strategy. Rather than engaging in panic selling or trying to buy on a dip (potentially catching a “falling knife”), they’re taking the emotion out of investing by telling the market exactly what they want to pay for quality stocks they want to own.​ Even better, they get paid to wait until they buy. By utilizing a conservative strategy that involves selling put options contracts, you can in effect get paid to buy stocks at a discount. To recap, “put” options give investors the right — but not the obligation — to sell a stock at a specified price before a specified date, known as the expiration date. Selling a put obligates us to purchase that stock from the put… Read More

Popular apparel brands like Andrew Marc, Wilson Leather, Cole Haan, Levi’s, Nine West, Sean John, Calvin Klein and even Tommy Hilfiger all have a secret. If this secret was widely known, it might change many consumers’ perceptions of their favorite clothing brand. Years of expensive and highly effective marketing have differentiated each brand into a specific demographic, price range and even perceived quality.#-ad_banner-#​ One of the more extreme examples of brand marketing differentiation is the high-end swimsuit brand Vilebrequin. These swimsuits start at around $200 and go to… Read More

Popular apparel brands like Andrew Marc, Wilson Leather, Cole Haan, Levi’s, Nine West, Sean John, Calvin Klein and even Tommy Hilfiger all have a secret. If this secret was widely known, it might change many consumers’ perceptions of their favorite clothing brand. Years of expensive and highly effective marketing have differentiated each brand into a specific demographic, price range and even perceived quality.#-ad_banner-#​ One of the more extreme examples of brand marketing differentiation is the high-end swimsuit brand Vilebrequin. These swimsuits start at around $200 and go to over $8,000 for a pair of swim trunks embroidered with 24-karat gold thread. Marketed to the international jet-setters who party in Ibiza or Saint-Tropez, Vilebrequin swim trunks are truly high end.  On the other end of the exclusivity scale is a brand like Tommy Hilfiger. Hilfiger swim trunks look very similar to Vilebrequin, but can often be found in discount outlets for around $25 or full-price retail for about $55. Even when compared side by side, it’s difficult to see much of a quality difference between the two brands. Other than the label and the fact… Read More

Despite an impression that too many investors focus only on quarterly results, most investors assess a stock’s value on future trends. The notion that “the market looks ahead” is based on the idea that 2013 share prices reflect projected financial results in 2014 and 2015.#-ad_banner-# That’s the only way you can explain the stunning gains for casual dining stocks. Recently, they’ve been continually setting new all-time highs, even as consumer confidence and spending remain in a funk.  According to Deutsche Bank, this group of stocks trades for 24 times 2014 profits. That’s well above the five-year average of… Read More

Despite an impression that too many investors focus only on quarterly results, most investors assess a stock’s value on future trends. The notion that “the market looks ahead” is based on the idea that 2013 share prices reflect projected financial results in 2014 and 2015.#-ad_banner-# That’s the only way you can explain the stunning gains for casual dining stocks. Recently, they’ve been continually setting new all-time highs, even as consumer confidence and spending remain in a funk.  According to Deutsche Bank, this group of stocks trades for 24 times 2014 profits. That’s well above the five-year average of 18. “Our biggest concern heading into 2014 is that investors decide restaurant stocks are too expensive and seek out better values elsewhere,” Deutsche Bank’s analysts noted in a recent report. To my mind, such a rotation appears inevitable. Better Days Ahead? To be sure, restaurants are expected to benefit from falling agricultural prices. On an aggregated basis, these restaurant operators predict that their food costs will rise just 2% in 2014, which would be the lowest rate since 2010. “However, lower food inflation can be a double-edged sword to the extent this leads to heightened discounting,” note the Deutsche… Read More