If you’ve been watching the market action in recent days, you’ll notice a growing sense of unease. The S&P 500 has repeatedly scaled past 2,000, only to be rebuffed. Is it simply buyers’ fatigue or instead the result of growing concerns about the economies in China and Europe and military action in the Middle East? Frankly, the news outside our borders has been mostly negative, and we may be hearing about the rising set of challenges being faced by export-focused U.S. multinationals as earnings season gets underway in a few weeks. To be sure, the stocks that comprise the S&P… Read More

If you’ve been watching the market action in recent days, you’ll notice a growing sense of unease. The S&P 500 has repeatedly scaled past 2,000, only to be rebuffed. Is it simply buyers’ fatigue or instead the result of growing concerns about the economies in China and Europe and military action in the Middle East? Frankly, the news outside our borders has been mostly negative, and we may be hearing about the rising set of challenges being faced by export-focused U.S. multinationals as earnings season gets underway in a few weeks. To be sure, the stocks that comprise the S&P 500 aren’t in crisis mode — most of them trade near their all-time highs. Yet further down the food chain, small caps and micro caps are quickly breaking down. The Russell 2000 index has begun to drift steadily lower, and many of the underlying components in that index are now 30%, 40% or more from their 52-week highs.  In fact, more than 140 stocks hit 52-week lows on Monday, September 22, on each the Nasdaq and the New York Stock Exchange. That’s the largest number we’ve seen all year. The divergence between small cap stocks and their larger peers… Read More

Wonder why the U.S. economic recovery feels so tenuous? Blame the housing construction industry, which typically accounts for 4%-to-5% of GDP, but represents just 2% of the economy these days. Though home prices in many markets have moved up from their 2008-2010 lows, the pace of new home construction has remained extremely low. According to the St. Louis branch of the Federal Reserve, residential construction permits are at roughly half the levels seen from 1995 through 2007. The impact: Simply returning to the long-term average would likely add around 1.5 million jobs to the… Read More

Wonder why the U.S. economic recovery feels so tenuous? Blame the housing construction industry, which typically accounts for 4%-to-5% of GDP, but represents just 2% of the economy these days. Though home prices in many markets have moved up from their 2008-2010 lows, the pace of new home construction has remained extremely low. According to the St. Louis branch of the Federal Reserve, residential construction permits are at roughly half the levels seen from 1995 through 2007. The impact: Simply returning to the long-term average would likely add around 1.5 million jobs to the economy, shaving the unemployment rate by roughly a percentage point.   Note: not all permit applications lead to actual construction, and actual new home builds are lower. What makes the housing slump especially remarkable is that borrowing costs are quite low and bank lending standards have been gradually easing.  And if you are wondering about supply and demand, know that the U.S. population has grown by roughly 20 million since 2006. Potential first-time homebuyers are still traumatized by the last economic downturn — many of them remain at home with their parents or… Read More

All the world is abuzz over the Alibaba (NYSE: BABA) initial public offering last Friday. The company came to the market with the largest IPO in history — raising $25 billion from the sale of shares. #-ad_banner-#I haven’t seen this much fanfare since the Facebook (Nasdaq: FB) IPO and we all know what happened with shares of the social networking platform. The stock plummeted more than 50% from its first trading days until the company could prove its monetary worth. No doubt Wall Street will provide innumerable price targets for shares of Alibaba and the stock could surge as investors vie for a… Read More

All the world is abuzz over the Alibaba (NYSE: BABA) initial public offering last Friday. The company came to the market with the largest IPO in history — raising $25 billion from the sale of shares. #-ad_banner-#I haven’t seen this much fanfare since the Facebook (Nasdaq: FB) IPO and we all know what happened with shares of the social networking platform. The stock plummeted more than 50% from its first trading days until the company could prove its monetary worth. No doubt Wall Street will provide innumerable price targets for shares of Alibaba and the stock could surge as investors vie for a piece of the Chinese e-commerce marketplace. There are 302 million internet shoppers in China, nearly equal to the entire population of the United States, and the company’s F-1 SEC filing shows 279 million active buyers as of June. The company has grown mobile revenue by 923% and facilitated the sale of $296 billion in merchandise over the last year. Despite the huge growth awaiting the company, shares of Alibaba may not be where the real money will be made. Beyond the nearly $22 billion in IPO funds, Alibaba will have easy access to debt as a public… Read More

In the post-financial crisis world, many cherished technical indicators and techniques stopped working as expected. The poster child is trading volume, which has been nearly useless on a market-wide basis. And for individual stocks, many basic chart setups led to false starts and quick stop outs. #-ad_banner-#It is therefore refreshing to see a chart pattern working as it is supposed to work, even with the little glitches that seem to linger. That does not guarantee success, but for a stock such as semiconductor maker Altera (NASDAQ: ALTR), the technicals are lining up nicely. Before getting into the chart, Altera benefits… Read More

In the post-financial crisis world, many cherished technical indicators and techniques stopped working as expected. The poster child is trading volume, which has been nearly useless on a market-wide basis. And for individual stocks, many basic chart setups led to false starts and quick stop outs. #-ad_banner-#It is therefore refreshing to see a chart pattern working as it is supposed to work, even with the little glitches that seem to linger. That does not guarantee success, but for a stock such as semiconductor maker Altera (NASDAQ: ALTR), the technicals are lining up nicely. Before getting into the chart, Altera benefits by being a member of the technology sector, which is a leader in the market today. It further benefits by being in the semiconductor group, which itself is breaking out to fresh multi-year highs. Studies have shown that group action is a very big portion of an individual stock’s move. Theoretically, if there is enough business for the sector then there is enough for the company, assuming of course that the company is healthy. And if prices are rising and hurdles, i.e. resistance, are being overcome, then there is a good chance the stock is ready for even more gains. Read More

Although the hottest car company of the 21st century made him famous, electrical engineer Nicola Tesla may also soon be as well known for a technology he pioneered in the late 19th century. #-ad_banner-#Back then, Tesla stunned the world by transmitting power over vast distances — without any wires. In the year ahead, his wireless power transfer (WPT) technology stands to become the hottest new technology in a whole range of industries. And investors need to brush up on this game-changing technology now, if they want to profit from it in the years ahead. Look ma, no wires We’ve… Read More

Although the hottest car company of the 21st century made him famous, electrical engineer Nicola Tesla may also soon be as well known for a technology he pioneered in the late 19th century. #-ad_banner-#Back then, Tesla stunned the world by transmitting power over vast distances — without any wires. In the year ahead, his wireless power transfer (WPT) technology stands to become the hottest new technology in a whole range of industries. And investors need to brush up on this game-changing technology now, if they want to profit from it in the years ahead. Look ma, no wires We’ve all suffered from the same fate. Our cellphone batteries die right at a time when we’re expecting an important phone call. Yet in recent quarters, WPT has already emerged as a solution. Simply place your phone in the vicinity of a WPT port, known as a “powermat,” and the need to remember to plug your phone in becomes a thing of the past. But we’re not just talking about phones. Toyota (NYSE: TM), for example, plans to roll out car-based WPT for homeowners, shopping mall operators and office parks. And it won’t stop there. Over the coming years, look for… Read More

Looking at a recent chart of share prices, you’d think shares of some Latin American companies were on fire and might be tempted to jump in for double-digit gains. #-ad_banner-#Shares of the Global X MSCI Argentina Fund (NYSEMKT: ARGT) are up 28% since February lows, only bested by a 31% gain in the iShares MSCI Brazil Capped ETF (NYSEMKT: EWZ). As an analyst, and someone who lives in the region, I follow the markets and political moods pretty closely. Last November, I warned investors about Brazilian companies and a 21% decline in the market followed. In July, I wrote another… Read More

Looking at a recent chart of share prices, you’d think shares of some Latin American companies were on fire and might be tempted to jump in for double-digit gains. #-ad_banner-#Shares of the Global X MSCI Argentina Fund (NYSEMKT: ARGT) are up 28% since February lows, only bested by a 31% gain in the iShares MSCI Brazil Capped ETF (NYSEMKT: EWZ). As an analyst, and someone who lives in the region, I follow the markets and political moods pretty closely. Last November, I warned investors about Brazilian companies and a 21% decline in the market followed. In July, I wrote another article warning investors about Brazil. To those warnings, I am now adding shares of Argentine Banks. Don’t get me wrong, I like double-digit stock returns as much as the next investor. And I believe that emerging markets offer the best opportunity for long-term profits. But if you are not following the political and economic situation closely in these markets, you are setting yourself up for big losses. A downward spiral in Argentina If you have not been following developments in Argentina lately, you’ve missed drama to rival any day-time soap opera. The country defaulted on its debt… Read More

Global demographic history is being written at this very moment. #-ad_banner-#It’s no secret that the U.S. population nearing senior citizen status is at all-time highs — an aging Baby Boomer population has been news for years now. The same demographic wave is playing out in Europe, Japan, China, Australia and countries the world over. And whenever there is a wave of change in society, there is usually an investment opportunity as well. Perhaps the biggest opportunity that comes with it is in medical care. Even better, the opportunity is further bolstered by the fact that the global population growth is… Read More

Global demographic history is being written at this very moment. #-ad_banner-#It’s no secret that the U.S. population nearing senior citizen status is at all-time highs — an aging Baby Boomer population has been news for years now. The same demographic wave is playing out in Europe, Japan, China, Australia and countries the world over. And whenever there is a wave of change in society, there is usually an investment opportunity as well. Perhaps the biggest opportunity that comes with it is in medical care. Even better, the opportunity is further bolstered by the fact that the global population growth is increasing  too — meaning there will be more people tomorrow, next year and next decade in need of medical care than ever before. Medical care represents an unprecedented level of investment potential.and the burgeoning field of medical technology shows the greatest growth promise — more specifically,  the medical robotics sector. This includes surgical robots, non-invasive radiosurgery, rehabilitation robots, prosthetics and robotics in the pharmacy and emergency response areas. These machines can be used to conduct minimally invasive surgeries and tests, and is increasingly being utilized by hospitals for a host of duties from treating neurological and orthopedic problems to providing… Read More

Do you remember when the doomsayers were calling for a financial meltdown in China? Turns out fears of a banking system collapse and economic slowdown were greatly exaggerated. But traders are right to pay close attention to what goes on in China, as it is an important barometer of global economic activity. #-ad_banner-#China and other Asian nations are expected to lead global spending for capital projects and infrastructure, which is estimated to top $9 trillion a year by 2025, according to a new report by PwC and Oxford Economics. Beneficiaries of this trend include companies that make heavy… Read More

Do you remember when the doomsayers were calling for a financial meltdown in China? Turns out fears of a banking system collapse and economic slowdown were greatly exaggerated. But traders are right to pay close attention to what goes on in China, as it is an important barometer of global economic activity. #-ad_banner-#China and other Asian nations are expected to lead global spending for capital projects and infrastructure, which is estimated to top $9 trillion a year by 2025, according to a new report by PwC and Oxford Economics. Beneficiaries of this trend include companies that make heavy machinery, such as American icons Deere & Company (NYSE: DE) and Caterpillar (NYSE: CAT).  This brings me to an interesting chart. Below you can see how closely correlated the two stocks have been for much of the past five years. Yet, in 2014, CAT is up 15% while DE is down 9%.  This divergence presents a near-term bullish opportunity in Deere. Shares of DE appear to have made a higher low this week versus their 52-week lows. If they can break through the midpoint of the sell-off from the… Read More

With each passing month, it’s becoming evident that the current bull market has slowed from a gallop to a trot. The S&P 500, which rose 29% in 2013, will likely trail such a gain this year, as it is up only 7% in 2014 as of September 15. And by one key measure, the bulls advance may cease altogether, potentially resulting in a market reversal. Make no mistake, the market has been in rally mode for more than five years in large part due to the Fed’s easing hand, which is fueling ultra-low interest rates and ample liquidity… Read More

With each passing month, it’s becoming evident that the current bull market has slowed from a gallop to a trot. The S&P 500, which rose 29% in 2013, will likely trail such a gain this year, as it is up only 7% in 2014 as of September 15. And by one key measure, the bulls advance may cease altogether, potentially resulting in a market reversal. Make no mistake, the market has been in rally mode for more than five years in large part due to the Fed’s easing hand, which is fueling ultra-low interest rates and ample liquidity for stock buying. Yet it’s always wise to keep an eye on traditional market metrics, in case the market starts to become fully disconnected from the fundamentals. #-ad_banner-#Each investor can focus on their own sense of fair value. For example:  — Some investors like to compare the dividend yield on the S&P 500 to federal fund rates. The current dividend yield stands at around 2%, higher than short-term interest rates. Still an eventual upward move in short rates will pressure this valuation gauge. — Other investors like to see how stocks are trading in relation to their private market value… Read More

My family, like many others, has been impacted by breast cancer. We got off lucky and still have our loved one around, but many others haven’t been as fortunate. #-ad_banner-#As an analyst and investor, I would love to profit from a company that is working to save lives. TapImmune, Inc. (OTC: TPIV) is attempting to do exactly that. The firm is developing a treatment to greatly reduce the mortality rate of breast cancer — a disease with existing medicines that generate billions in revenue each year but only treat 20% of the afflicted population. I want to state upfront: TPIV… Read More

My family, like many others, has been impacted by breast cancer. We got off lucky and still have our loved one around, but many others haven’t been as fortunate. #-ad_banner-#As an analyst and investor, I would love to profit from a company that is working to save lives. TapImmune, Inc. (OTC: TPIV) is attempting to do exactly that. The firm is developing a treatment to greatly reduce the mortality rate of breast cancer — a disease with existing medicines that generate billions in revenue each year but only treat 20% of the afflicted population. I want to state upfront: TPIV is not an investment for widows or orphans. With analyst targets that are, in some instances, seven times the current share price, this opportunity might merit a small position in a diversified portfolio. TapImmune is trying to open a new frontier in immunotherapy, or the prevention and treatment of disease with substances that stimulate the body’s immune response. What that means is that instead of trying to kill cancer cells with an outside agent, immunotherapy uses materials that improve, target and restore the patient’s immune system to help slow the cancer’s growth, stop its spread and kill… Read More