The S&P 500 index rose another 3% last week, continuing a winning stretch that began last fall.  Since Nov. 7, the S&P has risen 22%. That works out to be a roughly 35% annualized gain. Trouble is, the rally is increasingly due to a perception by individual investors that stocks can only move in one direction: up. In its most recent survey, the American Association of Individual Investors… Read More

The S&P 500 index rose another 3% last week, continuing a winning stretch that began last fall.  Since Nov. 7, the S&P has risen 22%. That works out to be a roughly 35% annualized gain. Trouble is, the rally is increasingly due to a perception by individual investors that stocks can only move in one direction: up. In its most recent survey, the American Association of Individual Investors (AAII) noted that the percentage of investors who are currently bearish is now less than 20%. That’s the lowest reading in 18 months, yet as legendary fund manager Sir John Templeton once noted, “The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.”#-ad_banner-# I’ve already researched one half of that maxim. Back in 2010, I noted that stocks tend to rally when that AAII survey finds few bullish… Read More

In investing, there is one rule that supersedes all others. And this rule should be the first thing you consider when building the core holdings in your portfolio. Legendary investor Warren Buffett put it best: “Rule No. 1: Never lose money. Rule No. 2: Don’t forget rule No. 1.” There is no sure thing in investing, and every investment comes with certain risks. However, today I would like to… Read More

In investing, there is one rule that supersedes all others. And this rule should be the first thing you consider when building the core holdings in your portfolio. Legendary investor Warren Buffett put it best: “Rule No. 1: Never lose money. Rule No. 2: Don’t forget rule No. 1.” There is no sure thing in investing, and every investment comes with certain risks. However, today I would like to share with you five funds that I believe are some of the safest, most stable investments on the market.#-ad_banner-# But first, let’s take a look at the investment that most people consider the benchmark of safety: U.S. Treasury bonds. Treasurys are considered the safest investments in the world because the U.S. government has never defaulted on any debt it has… Read More

Every intelligent investor’s portfolio must devote assets to aggressive growth. No exceptions. Because finding a winning aggressive growth stock isn’t easy, I want to share with you how I do it…#-ad_banner-# I look for companies with products, technologies or other innovations that materially change… Read More

Fixed-income investments seem like a losing bet for now. Interest rates are low resulting in a small amount of income in dollar terms for even the largest investors. A $1 million investment in 30-year Treasury bonds offers about $36,000 a year in income. This might seem low, but Treasury bonds really have not been a… Read More

Fixed-income investments seem like a losing bet for now. Interest rates are low resulting in a small amount of income in dollar terms for even the largest investors. A $1 million investment in 30-year Treasury bonds offers about $36,000 a year in income. This might seem low, but Treasury bonds really have not been a source of high income since about 1986, when rates fell below 9%. Gains for fixed-income investors have come from rising bond prices that accompanied falling rates. When rates rise, prices will fall, and those losses could destroy several years’ of worth of low-income payments. While even investors with million-dollar accounts are earning low income, most investors are earning even less income in dollar terms. To increase income, many investors have accepted more risk. An… Read More

In investing, there is one rule that supersedes all others. And this rule should be the first thing you consider when building the core holdings in your portfolio. Legendary investor Warren Buffett put it best: “Rule No. 1: Never lose money. Rule No. 2: Don’t forget rule No. 1.” There is no sure thing in investing, and every investment comes with certain risks. However, today I would like to… Read More

In investing, there is one rule that supersedes all others. And this rule should be the first thing you consider when building the core holdings in your portfolio. Legendary investor Warren Buffett put it best: “Rule No. 1: Never lose money. Rule No. 2: Don’t forget rule No. 1.” There is no sure thing in investing, and every investment comes with certain risks. However, today I would like to share with you five funds that I believe are some of the safest, most stable investments on the market.#-ad_banner-# But first, let’s take a look at the investment that most people consider the benchmark of safety: U.S. Treasury bonds. Treasurys are considered the safest investments in the world because the U.S. government has never defaulted on any debt it has… Read More

Fixed-income investments seem like a losing bet for now. Interest rates are low resulting in a small amount of income in dollar terms for even the largest investors. A $1 million investment in 30-year Treasury bonds offers about $36,000 a year in income. This might seem low, but Treasury bonds really have not been a… Read More

Fixed-income investments seem like a losing bet for now. Interest rates are low resulting in a small amount of income in dollar terms for even the largest investors. A $1 million investment in 30-year Treasury bonds offers about $36,000 a year in income. This might seem low, but Treasury bonds really have not been a source of high income since about 1986, when rates fell below 9%. Gains for fixed-income investors have come from rising bond prices that accompanied falling rates. When rates rise, prices will fall, and those losses could destroy several years’ of worth of low-income payments. While even investors with million-dollar accounts are earning low income, most investors are earning even less income in dollar terms. To increase income, many investors have accepted more risk. An… Read More

I love James Bond flicks, preferably from the Sean Connery era. “Goldfinger” is one of my favorites. I am often reminded by the classic scene in which a captive James Bond is seconds away from being charred by a laser. James Bond: “Do you expect me to talk?” Goldfinger: “No, Mr. Bond — I expect you to die!” Quintessential 007: Ridiculous stunts and jams, sports cars, beautiful women and a dastardly, almost clownish villain — in this case, one whose plan was to poison the U.S. gold supply at Fort Knox to create… Read More

I love James Bond flicks, preferably from the Sean Connery era. “Goldfinger” is one of my favorites. I am often reminded by the classic scene in which a captive James Bond is seconds away from being charred by a laser. James Bond: “Do you expect me to talk?” Goldfinger: “No, Mr. Bond — I expect you to die!” Quintessential 007: Ridiculous stunts and jams, sports cars, beautiful women and a dastardly, almost clownish villain — in this case, one whose plan was to poison the U.S. gold supply at Fort Knox to create global financial chaos. His endgame? Simply to drive up the value of his own gold holdings.#-ad_banner-# Frankly, it sounds like walking around the block to get across the street. But hey, it’s a James Bond movie. Since the financial crisis of 2008, the global villain that seemed destined to wreak havoc wasn’t a fat guy who liked to cheat at golf. The perceived villain was hard-core, runaway, Weimar/Zimbabwe-style global hyperinflation caused by central bank quantitative easing programs. However, that scary train hasn’t arrived at the station yet… Read More

Federal Reserve Chairman Ben Bernanke ignited another stock market rally and stocks ended last week near all-time highs. Traders will stay focused on Bernanke for at least the next week. All Eyes Will Stay On the Fed Last week, SPDR S&P 500 (NYSE: SPY) gained 2.75% as traders… Read More

Federal Reserve Chairman Ben Bernanke ignited another stock market rally and stocks ended last week near all-time highs. Traders will stay focused on Bernanke for at least the next week. All Eyes Will Stay On the Fed Last week, SPDR S&P 500 (NYSE: SPY) gained 2.75% as traders once again cheered the Fed’s easy money policy. This week, monetary policy should remain in focus as Bernanke makes his semi-annual visit to Capitol Hill. During the past month, the chairman’s words have sparked a sell-off (in mid-June) and a recovery (last week) in stock prices. It is unlikely he will add any new information about policy in his testimony, but his words will be scrutinized. A 30-minute chart of SPY shows the impact Bernanke had on prices last week. A speech after the close on Wednesday, where… Read More