It’s interesting how movies can be strangely prescient.#-ad_banner-#​ For example, take George Romero’s campy 1978 horror thriller, “Dawn of the Dead.” Filmed partially inside a north Pittsburgh shopping mall, it focused on murderous, undead zombies in search of human flesh to dine upon. Yes, I know, a ridiculous premise, but the movie contains a classic, prophetic scene of zombies being the only creatures inhabiting the local indoor shopping mall.  Surveying the mall full of zombies, one of the zombie hunters asks, “Why do they come here?” A zombie-hunting scientist answers: “Some kind of instinct. Memory of what they… Read More

It’s interesting how movies can be strangely prescient.#-ad_banner-#​ For example, take George Romero’s campy 1978 horror thriller, “Dawn of the Dead.” Filmed partially inside a north Pittsburgh shopping mall, it focused on murderous, undead zombies in search of human flesh to dine upon. Yes, I know, a ridiculous premise, but the movie contains a classic, prophetic scene of zombies being the only creatures inhabiting the local indoor shopping mall.  Surveying the mall full of zombies, one of the zombie hunters asks, “Why do they come here?” A zombie-hunting scientist answers: “Some kind of instinct. Memory of what they used to do. This was an important place in their lives.” Back when the movie was filmed, indoor malls were the most popular place for shopping. The movie was reflecting just how fashionable mall shopping had become in the ‘70s — but today, America is littered with dead and dying malls. Many indoor mall operators would be thrilled if even zombies showed up to shop.  Things have gotten so bad at indoor malls that Green Street Advisors, a research firm specializing in real estate investment trusts (REITs), has forecast that 10% of the nearly 1,000 large… Read More

On Sept. 24, I invested in one of the world’s leading automakers.#-ad_banner-# I liked that its valuation was cheap, that the stock had been keeping up with the market while offering about 30% less volatility, and that future growth prospects looked well above average. At about 2%, the dividend yield was a nice bonus. Of course, there are no guarantees with any stock, but I had hoped shares would at least continue pacing the market after I bought them. Well, if you invested when I did, you know that hasn’t been the case. Since then, the stock has been disappointing,… Read More

On Sept. 24, I invested in one of the world’s leading automakers.#-ad_banner-# I liked that its valuation was cheap, that the stock had been keeping up with the market while offering about 30% less volatility, and that future growth prospects looked well above average. At about 2%, the dividend yield was a nice bonus. Of course, there are no guarantees with any stock, but I had hoped shares would at least continue pacing the market after I bought them. Well, if you invested when I did, you know that hasn’t been the case. Since then, the stock has been disappointing, dropping about 7% versus about a 7% gain for the market.  I’m not worried, though, because the stock’s problems are related to an ongoing concern management is perfectly capable of resolving. Once it does, I expect the stock’s bullish run — shares are up 31% this year and more than 17% a year for the past three years — to resume. I’m talking about Toyota (NYSE: TM), and the company’s main issue now is recalls. You probably know recalls have plagued Toyota for some time now. One of the most publicized episodes occurred between 2009 and 2010, when more than… Read More

In any given year, you’ll come across “no-brainer” investments that are universally loved by the crowd. Trouble is, these stocks can be loved too much, and no matter how sales trends develop, some disappointment will be inevitable.#-ad_banner-# Indeed, one of the most popular stocks of the past few years has lost its way, buried under a set of unrealistic growth expectations. Yet, as shares bounce just above multi-year lows, contrarian investors finally see an opening. This “can’t miss” stock is Westport Innovations (Nasdaq: WPRT), which appeared set to dominate the burgeoning market for truck engines that can run on natural… Read More

In any given year, you’ll come across “no-brainer” investments that are universally loved by the crowd. Trouble is, these stocks can be loved too much, and no matter how sales trends develop, some disappointment will be inevitable.#-ad_banner-# Indeed, one of the most popular stocks of the past few years has lost its way, buried under a set of unrealistic growth expectations. Yet, as shares bounce just above multi-year lows, contrarian investors finally see an opening. This “can’t miss” stock is Westport Innovations (Nasdaq: WPRT), which appeared set to dominate the burgeoning market for truck engines that can run on natural gas. The appeal is evident. Natural gas is far cheaper than crude oil, and truckers could save thousands of dollars a year by moving away from pricey diesel fuel. Westport was also expected to benefit from legislation that provided huge subsidies for truckers to switch to natural gas. That legislation never arrived, and the company’s most bullish supporters had to concede that the loftiest sales forecasts simply couldn’t be met. As you can see in this chart, shares responded as you might expect. There are four key reasons for this stock’s slump. First, sales are expected to rise… Read More

As we close the books on 2013, one clear theme has emerged. Investors have flocked to developed economies and shunned emerging markets. The S&P 500 Index is on track for a nearly 30% gain this year, but many emerging markets have tumbled by double digits.#-ad_banner-# That kind of massive performance gap only emerges every decade or so, and for farsighted investors willing to look past near-term headwinds, emerging markets now represent tremendous relative value. You don’t need to tell that to the executives at major U.S. companies. They already know that emerging markets have generated — and will continue to… Read More

As we close the books on 2013, one clear theme has emerged. Investors have flocked to developed economies and shunned emerging markets. The S&P 500 Index is on track for a nearly 30% gain this year, but many emerging markets have tumbled by double digits.#-ad_banner-# That kind of massive performance gap only emerges every decade or so, and for farsighted investors willing to look past near-term headwinds, emerging markets now represent tremendous relative value. You don’t need to tell that to the executives at major U.S. companies. They already know that emerging markets have generated — and will continue to generate — robust growth rates, thanks in large part to ever-rising middle classes. While developed economies are growing at a 2% pace, emerging-market economies are growing at a 4% to 5% pace. Asian emerging markets are rising an even more impressive 6%, according the International Monetary Fund (IMF). The key takeaway: Even if you’re wary of investing in volatile emerging markets directly, you can focus on the U.S. companies that are positioned to derive a rising level of sales and profits in these countries. Thankfully, the strategists at Citigroup have already done the heavy lifting. In a recent report, Citi’s… Read More

It may seem like a long time ago, but the epic stock market meltdown of half a decade ago is again worth pondering.#-ad_banner-# From around 1,300 in August 2008, the S&P 500 Index plummeted to 1,100 by late September and below 900 by the end of November. By the time we hit bottom in March 2009, the index had tumbled below the 700 mark. A nearly 50% plunge in just seven months is virtually unprecedented. Now, with the S&P back up to around 1,800, we’ve seen a five-year rebound that should make us all quite thankful. This year has been… Read More

It may seem like a long time ago, but the epic stock market meltdown of half a decade ago is again worth pondering.#-ad_banner-# From around 1,300 in August 2008, the S&P 500 Index plummeted to 1,100 by late September and below 900 by the end of November. By the time we hit bottom in March 2009, the index had tumbled below the 700 mark. A nearly 50% plunge in just seven months is virtually unprecedented. Now, with the S&P back up to around 1,800, we’ve seen a five-year rebound that should make us all quite thankful. This year has been especially fruitful, as the S&P 500 has tacked on more value this year (on the basis of market cap) than in any year in its history. The market hasn’t even needed any breather this year on its path to record heights. S&P 500 By Quarter But such success can breed hubris. As Warren Buffett said back in 2011, “Once you reach the point where everybody has made money no matter what system he or she followed, a crowd is attracted into the game that is responding not to interest rates and profits but simply to the fact… Read More

Legendary investor Carl Icahn recently added a “sizable position” of Apple to his $16 billion holding company — Icahn Enterprises. Since he announced his purchase Sept. 11, Apple is up about 20%. After making the purchase, Icahn was quoted saying it was a “no-brainer” investment, citing that the company’s valuation was “extremely cheap” by the numbers. Icahn should know, too. Unlike most of today’s billionaires, he made his fortune entirely by investing in the stock market. Since he founded Icahn Enterprises less than 30 years ago, his company has enjoyed total returns in excess of 288,000%. To put that in… Read More

Legendary investor Carl Icahn recently added a “sizable position” of Apple to his $16 billion holding company — Icahn Enterprises. Since he announced his purchase Sept. 11, Apple is up about 20%. After making the purchase, Icahn was quoted saying it was a “no-brainer” investment, citing that the company’s valuation was “extremely cheap” by the numbers. Icahn should know, too. Unlike most of today’s billionaires, he made his fortune entirely by investing in the stock market. Since he founded Icahn Enterprises less than 30 years ago, his company has enjoyed total returns in excess of 288,000%. To put that in perspective, if you had invested $1,500 with him back in 1987, the size of your position would be worth over $4.3 million today That kind of performance is one reason Chartered Market Technician Michael J. Carr recently designed a trading system to leverage the financial genius of investing gurus, like Icahn. By applying his proprietary trading system to stocks that are held by the market’s 20 most successful gurus — including Warren Buffett, George Soros and David Einhorn — Michael has earned big gains betting alongside the world’s most renowned investors. For example, on Sept. 12,… Read More

The most successful investors on Earth all share a common trait: the ability to see and act on long-term trends.#-ad_banner-# While the majority of investors are focused on short-term results, the top investors are primarily concerned with being on the correct side of global economic growth patterns. Finding and investing in companies that are riding these global growth trends is a recipe for long-term investing success. Right now, China is attracting substantial investor interest due to its demographic shift toward a consumer-driven economy. Following the emerging Chinese bull hasn’t always been easy, thanks to the government’s tight control over the… Read More

The most successful investors on Earth all share a common trait: the ability to see and act on long-term trends.#-ad_banner-# While the majority of investors are focused on short-term results, the top investors are primarily concerned with being on the correct side of global economic growth patterns. Finding and investing in companies that are riding these global growth trends is a recipe for long-term investing success. Right now, China is attracting substantial investor interest due to its demographic shift toward a consumer-driven economy. Following the emerging Chinese bull hasn’t always been easy, thanks to the government’s tight control over the economy. However, this situation is well on its way to changing as China’s leaders are turning their formidable powers toward spurring the economy rather than being strictly focused on rigid controls. Most importantly for investors, the government’s focus on economic growth is combining with the power of the Internet to create one of the most exciting investment opportunities I’ve ever seen. The goal of China’s current five-year economic plan is to increase domestic demand and reduce the population’s high rate of savings. They are accomplishing these goals by increasing incomes, improving social safety nets, altering the tax structure, and actively… Read More

Look over a typical dividend investor portfolio, and you’ll probably find the usual utility stock suspects: Southern Co. (NYSE: SO), American Electric Power (NYSE: AEP), Consolidated Edison (NYSE: ED). These are the biggest of the big domestic power generators. You can set your watch by their cash flow, which means you know what kind of dividends to expect. But they don’t grow much. Because of the highly regulated nature of the business, there’s little opportunity to expand their footprint or unlock special value for shareholders. When this happens, stock prices don’t move much. Just look at the price action of… Read More

Look over a typical dividend investor portfolio, and you’ll probably find the usual utility stock suspects: Southern Co. (NYSE: SO), American Electric Power (NYSE: AEP), Consolidated Edison (NYSE: ED). These are the biggest of the big domestic power generators. You can set your watch by their cash flow, which means you know what kind of dividends to expect. But they don’t grow much. Because of the highly regulated nature of the business, there’s little opportunity to expand their footprint or unlock special value for shareholders. When this happens, stock prices don’t move much. Just look at the price action of the Dow Jones Utility Average over the past half-decade: #-ad_banner-#A five-year average annual return of better than 13% is nothing to sneeze at. Investors have always gravitated toward utilities for their stable income and safety during turbulent markets. However, when equity markets are in full-tilt boogie, utility stocks typically underperform. What about the best of both worlds? Is there an investment that provides dependably high income with growth superior to that of the Dow Jones Utilities? I’ve found a utility stock that provides a great, safe income stream and has outperformed the Dow Jones Utilities by over 70%… Read More

One thing about the stock market is that it is never boring.#-ad_banner-# Just last month, casino operator Wynn Resorts (Nasdaq: WYNN) broke down below a rising trendline, and within days it changed its mind. This week, the stock not only moved higher to break out from a bullish flag pattern, but it is once again challenging all-time highs. With Lady Luck smiling on Wynn once again, it is time to buy this recovered sector and WYNN in particular. Last month’s false breakdown below both the rising July trendline and the 50-day moving average did indeed look bearish. After all, the… Read More

One thing about the stock market is that it is never boring.#-ad_banner-# Just last month, casino operator Wynn Resorts (Nasdaq: WYNN) broke down below a rising trendline, and within days it changed its mind. This week, the stock not only moved higher to break out from a bullish flag pattern, but it is once again challenging all-time highs. With Lady Luck smiling on Wynn once again, it is time to buy this recovered sector and WYNN in particular. Last month’s false breakdown below both the rising July trendline and the 50-day moving average did indeed look bearish. After all, the stock already failed at resistance supplied by its all-time highs set by the 2007 and 2011 peaks. And with momentum indicators also heading south, things did not look so good. But two days after its breakdown, WYNN suddenly surged with exceptionally heavy volume. It also set a low in place that helped define a newly emerging and bullish flag pattern. Flags are simply countertrend moves that usually provide a period of rest in a rally. If and when the upper border is pierced, the buy signal is triggered as the bulls are back in control. That breakout arguably… Read More

When the Dow Jones Industrial Average was reformulated in September, former technology leader Hewlett-Packard (NYSE: HPQ) was quietly replaced. It was yet another tough blow for a firm that is on track for its third straight year of sales declines. CEO Meg Whitman, who was just celebrating her second full year at the company’s helm, could not have been pleased. But Whitman is surely getting the last laugh. Because against the odds, Hewlett-Packard has turned out to be one of the top-performing tech stocks of 2013. Shares have doubled in value, putting the S&P 500 Index’s 25% gain to shame. Read More

When the Dow Jones Industrial Average was reformulated in September, former technology leader Hewlett-Packard (NYSE: HPQ) was quietly replaced. It was yet another tough blow for a firm that is on track for its third straight year of sales declines. CEO Meg Whitman, who was just celebrating her second full year at the company’s helm, could not have been pleased. But Whitman is surely getting the last laugh. Because against the odds, Hewlett-Packard has turned out to be one of the top-performing tech stocks of 2013. Shares have doubled in value, putting the S&P 500 Index’s 25% gain to shame. More than $25 billion in market value has been added, and Whitman has less need to worry about job security. #-ad_banner-#Yet a deeper look reveals a company that remains mired in a deep slump, and a stock price that is now sharply overvalued. As UBS’ Steve Milunovich noted in a recent report, “The stock has rebounded as fundamentals improved from very poor to mediocre,” adding that “HP appears secularly challenged with too much hardware and a paucity of software revenue.” Indeed, the only good news for Hewlett-Packard is that it isn’t performing as poorly as many had expected. Read More