During bull markets, Wall Street traders like to “buy the dips.” This mantra was the order of the day, literally, when I was a hedge fund trader during the tech bull of the 1990s. Over the past year, the buy-the-dip philosophy has served traders well, as stocks have largely rebounded from every minor incursion into the red.#-ad_banner-#​ Now, however, the market is experiencing much more than mere dips. Today, we are getting something akin to “air pockets,” meaning we are seeing some very sharp sell-offs in stocks in reaction to the news. The latest of these… Read More

During bull markets, Wall Street traders like to “buy the dips.” This mantra was the order of the day, literally, when I was a hedge fund trader during the tech bull of the 1990s. Over the past year, the buy-the-dip philosophy has served traders well, as stocks have largely rebounded from every minor incursion into the red.#-ad_banner-#​ Now, however, the market is experiencing much more than mere dips. Today, we are getting something akin to “air pockets,” meaning we are seeing some very sharp sell-offs in stocks in reaction to the news. The latest of these air pockets came during Wednesday’s trading, as the market dropped sharply on the Federal Open Market Committee’s release of its October policy statement before rebounding off the session lows. The culprit here was fear that the Federal Reserve still hadn’t ruled out the possibility of a December tapering of its current $85 billion-a-month bond-buying program. Basically, I think traders got a little too complacent over the prospect of the Fed holding off tapering until 2014. The possibility, however remote, of a taper in December caused some skittish money to cash in. Still, there are a lot of underinvested money managers… Read More

I make about 90% of my purchases through the Internet. I have grown weary of pushy, obnoxious salespeople who don’t know the product, fighting traffic in parking lots, and the general schlepping that’s required when shopping the old-fashioned way.#-ad_banner-#​ Online shopping not only eliminates most of the headaches of dealing with the world of retail, but it enables wise price shopping and a mind-boggling array of choices, as well as virtually unlimited product information. Combine these benefits with an often sales-tax-free environment, and online shopping makes for a superior method on multiple levels.  However, a… Read More

I make about 90% of my purchases through the Internet. I have grown weary of pushy, obnoxious salespeople who don’t know the product, fighting traffic in parking lots, and the general schlepping that’s required when shopping the old-fashioned way.#-ad_banner-#​ Online shopping not only eliminates most of the headaches of dealing with the world of retail, but it enables wise price shopping and a mind-boggling array of choices, as well as virtually unlimited product information. Combine these benefits with an often sales-tax-free environment, and online shopping makes for a superior method on multiple levels.  However, a recent very pleasant experience at a big-box retailer has started to change my mind about the superiority of online shopping. I needed to purchase a break-resistant and waterproof case for my son’s tablet computer. He had already left it outside on several occasions and managed to cause a slight crack on the corner of the screen. I knew if I didn’t get him a case soon, the $400 device would soon be damaged beyond repair. I didn’t want to wait to an online order to be delivered, so I went to a local Best Buy (NYSE: BBY) to make the… Read More

It started snowing early in Siberia.#-ad_banner-#​ According to Rutgers University’s Global Snow Lab, there is already more than 10 inches of snow on the ground in the massive tundra north of Moscow. That’s the first time 10 inches had already fallen by the end of October since 2002. Roughly 900,000 square miles are covered in snow right now, much higher than the 50-year average of 573,000 square miles. Why should you care? Because the Siberian snowpack provides an uncanny correlation with our winter weather. Scientists call it the negative phase of arctic oscillation. As… Read More

It started snowing early in Siberia.#-ad_banner-#​ According to Rutgers University’s Global Snow Lab, there is already more than 10 inches of snow on the ground in the massive tundra north of Moscow. That’s the first time 10 inches had already fallen by the end of October since 2002. Roughly 900,000 square miles are covered in snow right now, much higher than the 50-year average of 573,000 square miles. Why should you care? Because the Siberian snowpack provides an uncanny correlation with our winter weather. Scientists call it the negative phase of arctic oscillation. As the National Snow and Ice Data Center notes, “A strongly negative phase of the arctic oscillation brings warm weather to high latitudes, and cold, stormy weather to the more temperate regions where people live.”  These climatologists add that in 2009, the arctic oscillation phase was the most negative on record. What was the impact? The U.S. and Europe had brutally cold winters in 2009 and 2010. According to the National Oceanic and Atmospheric Administration, nine of the 10 coldest Januarys in New York City since 1950 have coincided with negative arctic oscillations. Read More

Believe it or not, solar stocks have been some of the best performers in the second half of 2013.#-ad_banner-#​ Earlier this year, analysts began to see an uptick in global demand for solar energy as Japan began transitioning from nuclear power to renewable energy, and other developed nations began increasing purchases of solar energy components. Last quarter, a number of high-profile solar companies reported increasing shipments of solar panels, and this led to a significant rise in stock prices. This rally was from a very depressed base, due to weakness over the past several years that was caused… Read More

Believe it or not, solar stocks have been some of the best performers in the second half of 2013.#-ad_banner-#​ Earlier this year, analysts began to see an uptick in global demand for solar energy as Japan began transitioning from nuclear power to renewable energy, and other developed nations began increasing purchases of solar energy components. Last quarter, a number of high-profile solar companies reported increasing shipments of solar panels, and this led to a significant rise in stock prices. This rally was from a very depressed base, due to weakness over the past several years that was caused by overcapacity, an inventory glut and falling prices for solar components. A number of solar manufacturers were put out of business or forced to merge with competitors due to the challenging environment. At this point, it is a bit difficult to determine how high solar stocks could ultimately trade, because there is so much uncertainty regarding future profits. Aside from industry leader First Solar (Nasdaq: FSLR), most solar manufacturers are still operating at a loss. But over the next few years, the profit picture is expected to change. For example, Yingli Green Energy (NYSE: YGE) is expected to cut its… Read More

Consumer credit is a double-edged sword. Used wisely, it enables smart money management and expense tracking. Misused, it can easily become a crushing financial burden that can only end in lifetime poverty and or bankruptcy.#-ad_banner-#​ While the levels of consumer debt have dropped after hitting a high of $1 trillion in July 2008, this number is still about $855 billion. The standard way consumers access this credit is through the ubiquitous plastic credit card. Although the technological infrastructure has changed greatly, the basic card concept has been in use since the 1950s. Today, there are 1.5 billion credit… Read More

Consumer credit is a double-edged sword. Used wisely, it enables smart money management and expense tracking. Misused, it can easily become a crushing financial burden that can only end in lifetime poverty and or bankruptcy.#-ad_banner-#​ While the levels of consumer debt have dropped after hitting a high of $1 trillion in July 2008, this number is still about $855 billion. The standard way consumers access this credit is through the ubiquitous plastic credit card. Although the technological infrastructure has changed greatly, the basic card concept has been in use since the 1950s. Today, there are 1.5 billion credit cards in the United States; the average credit card user has 3.5 cards. The most popular card is Visa (NYSE: V), with 36% of the market, followed by MasterCard (NYSE: MA), with 27% market penetration, and American Express (NYSE: AXP), with a 6.5% market share.   While consumers’ embrace of debt has declined slightly, it shows no signs of abating. However, the way we access our credit lines is about to undergo a revolutionary change. Let me explain. I stopped into my local Starbucks (NYSE: SBUX) recently to pick up a drink and morning snack. The customer in line in… Read More

With each passing quarter, Wall Street analysts tweak their forecasts and price targets, trying their best to predict what a company’s sales and profits will look like three or six months from now. That myopia has led them to miss out one of the greatest long-term success stories in the U.S. economy. It isn’t found in the engineering labs in Silicon Valley or the canyons of Wall Street. Instead, it’s in places like Iowa, Nebraska, Texas and Pennsylvania. That’s where our nation’s most dynamic export opportunities have emerged on vast tracts of arable land. Consider this stat: The U.S. exported… Read More

With each passing quarter, Wall Street analysts tweak their forecasts and price targets, trying their best to predict what a company’s sales and profits will look like three or six months from now. That myopia has led them to miss out one of the greatest long-term success stories in the U.S. economy. It isn’t found in the engineering labs in Silicon Valley or the canyons of Wall Street. Instead, it’s in places like Iowa, Nebraska, Texas and Pennsylvania. That’s where our nation’s most dynamic export opportunities have emerged on vast tracts of arable land. Consider this stat: The U.S. exported $29 billion in corn, wheat, soybeans, apples, pistachios and many other farm products in 1985. A decade later, that figure had doubled, and by 2010, surpassed $115 billion. The U.S. also imports many farm items as well. But in 2012, the farm belt ran a $38 billion trade surplus. How many industries can say that? And there’s no reason to expect this trend to reverse course. Simply put, heavy investments in technology have enabled our farmers to become the most productive in the world. Here’s a look at three companies that should prosper in the years… Read More

Twenty-four billion dollars. That’s how much the political theater in Washington cost the American public according to Standard and Poor’s. The agency expects the loss will shave about 1% off fourth quarter GDP growth. But alas, investors can breathe a sigh of relief as it’s now apparent the U.S. won’t be defaulting on its Treasury payments — at least not yet. According to estimates by the Congressional Budget Office, the bill that raised the debt ceiling and reopened the government should keep the U.S. funded for at least another four months. While the short-term resolution is akin to the proverbial… Read More

Twenty-four billion dollars. That’s how much the political theater in Washington cost the American public according to Standard and Poor’s. The agency expects the loss will shave about 1% off fourth quarter GDP growth. But alas, investors can breathe a sigh of relief as it’s now apparent the U.S. won’t be defaulting on its Treasury payments — at least not yet. According to estimates by the Congressional Budget Office, the bill that raised the debt ceiling and reopened the government should keep the U.S. funded for at least another four months. While the short-term resolution is akin to the proverbial “kicking the can down the road” (setting us up for the same debate come February), the markets have nonetheless rejoiced on the news… #-ad_banner-#In the weeks that followed the debt agreement, the S&P touched a record level of 1,766… gold rallied 7% to $1,350 per ounce and the yield on the 10-year treasury fell to 2.5%. As the euphoria from the announcement wears off, the market is turning its attention to what will likely be the biggest financial event over the next few weeks… earnings season. In case you didn’t know, third quarter earning season is alive and well… And… Read More

Like stars in the sky, the sheer number of differing opinions and interpretations of the same financial data is simply mind-boggling. It is said that if you ask three analysts their opinion on the market, you’ll get five different answers. I can’t think of another field of human endeavor that garners so many different ideas from the same data. Even weather forecasting isn’t as open to interpretation as the financial markets. However, this uncertainty is how the market exists. If everyone had the same opinion, there would be no one to buy the selling or sell into the buying. Read More

Like stars in the sky, the sheer number of differing opinions and interpretations of the same financial data is simply mind-boggling. It is said that if you ask three analysts their opinion on the market, you’ll get five different answers. I can’t think of another field of human endeavor that garners so many different ideas from the same data. Even weather forecasting isn’t as open to interpretation as the financial markets. However, this uncertainty is how the market exists. If everyone had the same opinion, there would be no one to buy the selling or sell into the buying.#-ad_banner-#​ The number and range of differing opinions is why I pay particular attention when two ultra-successful investors agree on the same premise. The famed commodity investor Jim Rogers and Fidelity Investments’ best-known mutual fund manager, Peter Lynch, emphasize investing in what you know. The thinking behind this advice is that if you are familiar with a particular business, service or product, not only are you an expert of sorts, but many others are also likely interested in the same things, which helps create a bullish environment. I took this advice to heart when I realized that a… Read More

Ever wonder how the super-rich manage their investments and retire on that private island with afternoon mojitos? A big part of it is investing in the assets not available to regular people like you and me.#-ad_banner-# I’m talking about private equity. Yes, the same asset class that made Mitt Romney and Carl Icahn mega-superstars of finance. The problem is, unless you have a net worth in excess of seven figures or a salary above $200,000, then you are not allowed to invest in private equity deals.  These investments in… Read More

Ever wonder how the super-rich manage their investments and retire on that private island with afternoon mojitos? A big part of it is investing in the assets not available to regular people like you and me.#-ad_banner-# I’m talking about private equity. Yes, the same asset class that made Mitt Romney and Carl Icahn mega-superstars of finance. The problem is, unless you have a net worth in excess of seven figures or a salary above $200,000, then you are not allowed to invest in private equity deals.  These investments in struggling or new companies can go bust or can produce triple-digit returns in a matter of years, but you and I are not allowed on the playground. An analysis of 146 public pension funds over the past year showed that private equity investments have earned a 10% annualized return over the past decade, well above the 5.8% return the funds made on the general stock market. The pension for Texas’ Teacher Retirement System scored a whopping 15.5% annual rate over the past 10 years. In fact, even the worst quartile of private equity returns outperformed almost all (75%) of manager… Read More