As companies emerge from a rough stretch, their shares can quickly move back into favor with investors. Trouble is, the rebounding share price can often overshoot the mark and move into overvalued territory, especially… Read More

Subscribers send me dozens of questions and comments every month. While I can’t always address each one individually, I do read them all. One question we income investors are asking ourselves right now is “Should I own bonds?” The answer is yes, but for reasons I’m about to explain, you will need to be cautious. After all, major stock market averages are soaring, with both the S&P 500… Read More

Subscribers send me dozens of questions and comments every month. While I can’t always address each one individually, I do read them all. One question we income investors are asking ourselves right now is “Should I own bonds?” The answer is yes, but for reasons I’m about to explain, you will need to be cautious. After all, major stock market averages are soaring, with both the S&P 500 and the Dow surpassing all-time closing highs set back in October 2007. The bull run in stocks is also flying in the face of continued uncertainty about interest rates staying low if a divided Federal Reserve starts to phase out its $85 billion-a-month bond-buying program — not to mention trouble in Japan and already high valuations for many dividend-paying stocks. So that leaves one question: Why do many analysts still think equities will keep… Read More

How high can stocks go? Since breaking through a record closing high on March 5, the Dow Jones industrial average has continued to post fresh highs. The broader S&P 500 index has more recently done the same. … Read More

A bird in the hand is worth two in the bush. If the two market crashes since the turn of the century have taught us one thing, it is that this proverb is extremely relevant to investing. Investors relying only to future growth in stock prices for their returns were badly burned as they saw their portfolios decimated by the dot-com bust and the Great Recession. Those investors holding portfolios with an even mix… Read More

A bird in the hand is worth two in the bush. If the two market crashes since the turn of the century have taught us one thing, it is that this proverb is extremely relevant to investing. Investors relying only to future growth in stock prices for their returns were badly burned as they saw their portfolios decimated by the dot-com bust and the Great Recession. Those investors holding portfolios with an even mix of dividends and growth were certainly not immune, but they could at least look to past cash returns for overall performance.#-ad_banner-# On average since 1962, the market has suffered crashes of more than 20% in a year once every seven and a half years. Still, investing is about long-term returns, and even the best dividend stocks may not get your portfolio to its goal. So what’s an investor to do? The answer lies… Read More

There’s no question the U.S. unemployment rate remains high by historical standards. But it’s also undeniable that it has continued to improve, holding steady at 7.6% after the July jobs report, which showed the economy adding 195,000 jobs last month. Improving employment trends are a big boost for the economy, fueling both consumer spending and sentiment. While that’s good for every company in the S&P 500, there is one that is really cashing in on the trend. In fact, this little-known business-services company has many of the characteristics… Read More

There’s no question the U.S. unemployment rate remains high by historical standards. But it’s also undeniable that it has continued to improve, holding steady at 7.6% after the July jobs report, which showed the economy adding 195,000 jobs last month. Improving employment trends are a big boost for the economy, fueling both consumer spending and sentiment. While that’s good for every company in the S&P 500, there is one that is really cashing in on the trend. In fact, this little-known business-services company has many of the characteristics of what we call a “Forever Stock” at StreetAuthority: high barriers to entrance, a strong balance sheet, attractive valuation and sustainable growth. Portfolio Recovery Associates (Nasdaq: PRAA) is a $2.5 billion company that purchases, collects and manages portfolios of defaulted consumer receivables in the United States and United Kingdom. As a debt collector, Portfolio Recovery Associates has seen big gains from falling… Read More

With the S&P 500 posting new highs, it’s become difficult to find stocks with decent yields as well as ones that aren’t priced for perfection. Until I found this solution… Stocks are on fire. With nearly three-quarters of the S&P 500 stocks posting new highs in the past few months, it’s become increasingly difficult to find stocks with decent yields as well as ones that aren’t priced for perfection. The solution?  By using a conservative strategy that involves selling put options contracts, you can in effect get paid to buy stocks at a… Read More

With the S&P 500 posting new highs, it’s become difficult to find stocks with decent yields as well as ones that aren’t priced for perfection. Until I found this solution… Stocks are on fire. With nearly three-quarters of the S&P 500 stocks posting new highs in the past few months, it’s become increasingly difficult to find stocks with decent yields as well as ones that aren’t priced for perfection. The solution?  By using a conservative strategy that involves selling put options contracts, you can in effect get paid to buy stocks at a discount. #-ad_banner-#Here’s how it works. Let’s say you want to add computer maker Hewlett-Packard (NYSE: HPQ) to your portfolio. However, the price you’re willing to pay is closer to the recent low of $23.43 a share than to the current $25.73 level. You could place a limit buy order for HPQ at $23 a share. Maybe Hewlett-Packard will drop to your buy price sometime soon, or maybe it won’t. Maybe you’ll find some place to park your cash in the meantime where it will return more than… Read More

It’s absolutely amazing the cultural changes that can take place within just a few decades.  Several years ago, I was excited to have been given tickets for box seats at a crucial baseball game at Yankee Stadium. As I enjoyed a beautiful day at the ballpark, I noticed that smoking was permitted and that several of my fellow fans had lit cigarettes to enjoy with their beer and hot dogs. I decided to join them by lighting one of my favorite mild Dominican cigars to savor during the last few innings.#-ad_banner-# After a… Read More

It’s absolutely amazing the cultural changes that can take place within just a few decades.  Several years ago, I was excited to have been given tickets for box seats at a crucial baseball game at Yankee Stadium. As I enjoyed a beautiful day at the ballpark, I noticed that smoking was permitted and that several of my fellow fans had lit cigarettes to enjoy with their beer and hot dogs. I decided to join them by lighting one of my favorite mild Dominican cigars to savor during the last few innings.#-ad_banner-# After a few puffs, I heard an angry, high-pitched voice ordering me to extinguish the cigar. On my right, I noticed a small child scowling at me. He informed me that his school had taught him that smoking is bad for you. Not wanting to get into a philosophical argument with a child (or to upset his rather large father), I extinguished the cigar and returned to enjoying the game.  This encounter reminded me of just how fast cultural trends can change. For instance, in my middle school days, kids not much older than my young anti-smoking friend were smoking so much… Read More

If you lost a chunk of your portfolio during the Great Recession or were late to the party as the market recovered, you might be trying to make up that lost ground with aggressive investments. With the market steadily climbing upward, you would probably be less likely to go for safe, defensive plays intended to protect your money rather than grow it. While that’s a good strategy at this point in the economic cycle, it… Read More

If you lost a chunk of your portfolio during the Great Recession or were late to the party as the market recovered, you might be trying to make up that lost ground with aggressive investments. With the market steadily climbing upward, you would probably be less likely to go for safe, defensive plays intended to protect your money rather than grow it. While that’s a good strategy at this point in the economic cycle, it might also pay to consider one particular real estate investment trust (REIT) that owns, operates and develops retail properties, including a sizable representation of grocery-anchored retail properties in its portfolio. The grocery-anchored retail component provides the safe defensive play, while the REIT also stands to benefit from rising construction activity as the economy improves. Regency Centers Corp. (NYSE: REG) grows by acquiring new properties, developing properties and investing in partnership with others. Typically, the REIT… Read More

Among the 100 wealthiest investors in the world, Ray Dalio cuts an iconic figure in the sometimes cookie-cutter arena of hedge funds and finance.  Not only does he manage the world’s biggest hedge fund, Bridgewater Associates, with approximately $140 billion under management, he is also a big-game bow hunter, meditation practitioner, and firm believer in radical honesty. Dalio didn’t earn his $12 billion net worth by following anyone but himself, and now you can discover the Ray Dalio Investment Strategy for yourself.#-ad_banner-# Ray Dalio’s Biography Dalio wasn’t… Read More

Among the 100 wealthiest investors in the world, Ray Dalio cuts an iconic figure in the sometimes cookie-cutter arena of hedge funds and finance.  Not only does he manage the world’s biggest hedge fund, Bridgewater Associates, with approximately $140 billion under management, he is also a big-game bow hunter, meditation practitioner, and firm believer in radical honesty. Dalio didn’t earn his $12 billion net worth by following anyone but himself, and now you can discover the Ray Dalio Investment Strategy for yourself.#-ad_banner-# Ray Dalio’s Biography Dalio wasn’t born with a silver spoon and was far from a gifted student, but he learned from an early age to work for what he wanted. The son of a jazz musician and a stay-at-home mom, he knew he wanted spending money. His first jobs were the mundane employment of many suburban youths: He ran a paper route, shoveled snow, and washed dishes in a restaurant. When he was 12 years old, his life took a turn that would place him on the road to vast wealth: He started working as a golf caddy. Carrying… Read More