Ask most investors where the next big consumer story will be and the answer is usually China. More than 400 million shoppers went online last year in the world’s second largest economy, more than the entire U.S. population. Besides natural growth in middle-class buying power, the government is doing all it can to transition the economy to a model fueled by consumer spending.  There’s a lot to like about companies that can sell into the Chinese consumer theme — but uncertainty over the country’s economic growth is destroying sentiment even on strong long-term potential. The Global X China Consumer ETF… Read More

Ask most investors where the next big consumer story will be and the answer is usually China. More than 400 million shoppers went online last year in the world’s second largest economy, more than the entire U.S. population. Besides natural growth in middle-class buying power, the government is doing all it can to transition the economy to a model fueled by consumer spending.  There’s a lot to like about companies that can sell into the Chinese consumer theme — but uncertainty over the country’s economic growth is destroying sentiment even on strong long-term potential. The Global X China Consumer ETF (NYSE: CHIQ) is 35% off its 52-week high and just 13% above the all-time low. #-ad_banner-#What if there were a company that would be one of the biggest long-term beneficiaries of the China consumer story but that had hidden exposure to the developed U.S. consumer story to boot? What if that same company was becoming indispensable to its main competitor, a critical part of the supply chain for one of the competitor’s fastest growing segments? The company exists and its shares are on sale. This Pick Gets Huge Support From Amazon And The American Consumer Fulfillment by Amazon (FBA)… Read More

In January I warned StreetAuthority’s premium newsletter subscribers against overreacting. The markets were in a tailspin, officially crossing into correction territory just two weeks into the year.  However, I also said in a follow-up that it would be prudent to begin making a shopping list. #-ad_banner-#Today, we find ourselves in a market that has shown some signs of strength. Oil prices have rallied about 31% since mid-February, propelling the Dow Jones Industrial Average on a 1366-point rally. The S&P 500, meanwhile, is up roughly 8.8% since then. Aside from firming oil prices, there are other developments I’ve… Read More

In January I warned StreetAuthority’s premium newsletter subscribers against overreacting. The markets were in a tailspin, officially crossing into correction territory just two weeks into the year.  However, I also said in a follow-up that it would be prudent to begin making a shopping list. #-ad_banner-#Today, we find ourselves in a market that has shown some signs of strength. Oil prices have rallied about 31% since mid-February, propelling the Dow Jones Industrial Average on a 1366-point rally. The S&P 500, meanwhile, is up roughly 8.8% since then. Aside from firming oil prices, there are other developments I’ve seen that lead me to believe that the rampant selling is beginning to abate. Back on January 15 (the very same day I warned readers to not overreact to the market by panic), my colleague Jimmy Butts noticed that his Maximum Profit system was throwing up some major warning flags. (I’ve covered how Jimmy and his readers use the Maximum Profit system to identify fundamentally-sound stocks with momentum to deliver quick gains. I won’t recap the mechanics of the entire system today. But for more, read this or this.) When he… Read More

The world economy is constantly on the move. Emerging countries struggle to shift into consumer-driven industries, while developed countries continue to push the boundaries of new technology. And if there’s one thing that’s become clear over the past few years, it’s this: Data is big business. The globalization of data accounted for $2.8 trillion of the world’s GDP in 2014, and it’s the result of an astronomical rise in technology. That’s good for a 10.1% rise in global GDP over 10 years.  McKinsey & Co.’s report “Digital Globalization: The New Era Of Global Flows” says that “[data… Read More

The world economy is constantly on the move. Emerging countries struggle to shift into consumer-driven industries, while developed countries continue to push the boundaries of new technology. And if there’s one thing that’s become clear over the past few years, it’s this: Data is big business. The globalization of data accounted for $2.8 trillion of the world’s GDP in 2014, and it’s the result of an astronomical rise in technology. That’s good for a 10.1% rise in global GDP over 10 years.  McKinsey & Co.’s report “Digital Globalization: The New Era Of Global Flows” says that “[data flow] is projected to increase by an additional nine times over the next five years as flows of information, searches, communication, video, transactions, and intracompany traffic continue to surge.” #-ad_banner-#But what does that really mean? Data flows include things like digital transactions, communications, digital information and networks. It’s a vast “economy” that doesn’t necessarily stand on its own, like, say global trade does. Physical goods are easy to understand. Someone wants to buy a widget, so they buy one from a company that makes widgets. What the digital economy does is allow that customer to find that widget on the… Read More

Donald Trump, the real estate mogul and reality TV star, continues to gain ground in his quest to become the 45th President of the United States. He also continues to face opposition, as leaders of the Republican party lash out against Trump’s seemingly bombastic tactics.  #-ad_banner-#Granted, Trump has laid out some aggressive tax and national security plans, but he’s resonating with a large number of supporters.  Trump is leading all other Republican candidates in both delegate count and in popularity polls. And in some general election polls, Trump has been neck-and-neck with Democratic front-runner Hillary Clinton. Whether Trump can maintain… Read More

Donald Trump, the real estate mogul and reality TV star, continues to gain ground in his quest to become the 45th President of the United States. He also continues to face opposition, as leaders of the Republican party lash out against Trump’s seemingly bombastic tactics.  #-ad_banner-#Granted, Trump has laid out some aggressive tax and national security plans, but he’s resonating with a large number of supporters.  Trump is leading all other Republican candidates in both delegate count and in popularity polls. And in some general election polls, Trump has been neck-and-neck with Democratic front-runner Hillary Clinton. Whether Trump can maintain his momentum and dispel the naysayers remains to be seen. However, investors would be foolhardy not to consider what a Trump presidency may hold for their portfolios.  So which companies could benefit from President Trump’s policies?  Discretionary Stocks Could See A Boost One of Trump’s planned tax breaks includes increasing the number of low income households that don’t pay taxes. Additionally, his platform includes a rate cut for corporations, to 15% from 35%. These cuts have the potential to spur economic growth.  More money in people’s pockets means that consumer discretionary stocks should do well. The best play on… Read More

Warren Buffett’s 2015 Letter to Shareholders is out and all investors are talking about is the Oracle’s losing bet in IBM (NYSE: IBM) and his warning of widespread earnings manipulation in the market.  #-ad_banner-#While both of these may be interesting and important topics, most investors have completely missed one of the most important ideas in the letter. In fact, this one idea contributed to 85% of Berkshire Hathaway’s (NYSE: BRK-B) increase in net worth and it did it with just five investments. Buffett talk just briefly about his Powerhouse Five portfolio this year on page four… Read More

Warren Buffett’s 2015 Letter to Shareholders is out and all investors are talking about is the Oracle’s losing bet in IBM (NYSE: IBM) and his warning of widespread earnings manipulation in the market.  #-ad_banner-#While both of these may be interesting and important topics, most investors have completely missed one of the most important ideas in the letter. In fact, this one idea contributed to 85% of Berkshire Hathaway’s (NYSE: BRK-B) increase in net worth and it did it with just five investments. Buffett talk just briefly about his Powerhouse Five portfolio this year on page four of the letter. These are the five most profitable non-insurance businesses owned by Berkshire Hathaway and has been a focus of the legendary investor for nearly two decades.  The group is a critical component of the Berkshire portfolio and accounted for 85% of the 2015 increase in Berkshire’s net worth. The $13.1 billion earned by just five companies represented a 5.2% gain over the year before and well above the 12.5% loss the Berkshire portfolio suffered in market value during the period. How To Create Your Own Powerhouse Portfolio Buffett doesn’t talk at length about his Powerhouse Portfolio and… Read More

If you’re like me, then you never want to worry about money again… whether that means merely being financially independent or becoming filthy rich is beside the point. And while blue-chip stocks, index funds and dividend payers can keep the income flowing, the truth is these securities will take decades to amass real wealth. You’ll need something else if you’re after a seven-figure bank account: a “swing for the fences” strategy. #-ad_banner-#So today I’m going to show you how to position yourself for ‘out-of-the-park’ gains without jeopardizing your safer investments. I call it the “20% solution.” The idea behind it… Read More

If you’re like me, then you never want to worry about money again… whether that means merely being financially independent or becoming filthy rich is beside the point. And while blue-chip stocks, index funds and dividend payers can keep the income flowing, the truth is these securities will take decades to amass real wealth. You’ll need something else if you’re after a seven-figure bank account: a “swing for the fences” strategy. #-ad_banner-#So today I’m going to show you how to position yourself for ‘out-of-the-park’ gains without jeopardizing your safer investments. I call it the “20% solution.” The idea behind it is simple: dedicate a portion of your portfolio to aggressive growth stocks. Let me explain. My daughter is in private school. In a few years she may go to college. Eventually she’ll need a car, an apartment and someday a wedding. All of which cost money. For her and the rest of my family, I’ve allocated 80% of my portfolio to safe, reliable assets. These are securities that I know will allow me to keep living comfortably and adequately provide for my family. We want this money to grow hands-free. So in this section of our portfolio, we want investments… Read More

The 2016 general election looks to be a close one, with no presidential candidates claiming an insurmountable lead and the Democrats within just five seats of regaining control of the Senate. Political spending during presidential election years has consistently smashed total spending in previous years and it looks like this year could top the $6.3 billion mark set in 2012. #-ad_banner-#And that spending could be heading into overdrive with the Super Tuesday primaries in 14 states on March 1. Both sides of the aisle have seen multiple candidates come out on top in other state races. Clinton and Cruz topped… Read More

The 2016 general election looks to be a close one, with no presidential candidates claiming an insurmountable lead and the Democrats within just five seats of regaining control of the Senate. Political spending during presidential election years has consistently smashed total spending in previous years and it looks like this year could top the $6.3 billion mark set in 2012. #-ad_banner-#And that spending could be heading into overdrive with the Super Tuesday primaries in 14 states on March 1. Both sides of the aisle have seen multiple candidates come out on top in other state races. Clinton and Cruz topped the Iowa caucuses while Trump and Sanders ran away with the New Hampshire primary.  Candidates and political action committees (PACs) will be opening their pockets to get their candidate nominated and sent to Washington. Rather than picking the winners of each race, investors should be focusing on picking the winners in the election spending race. Super Spending Ahead Of Super Tuesday Political spending has surged ever since the 2010 Supreme Court decision that campaign spending by independent groups, i.e. PACs, was protected by the First Amendment. The 2012 election hit an historic $6.3 billion with the cost of the… Read More

After losing over 20% in 2015, David Einhorn is back with a vengeance.  For Einhorn’s Greenlight Capital hedge fund, 2015 was only the fourth time in its history that it experienced what it calls outsized losses — the previous three being in 1998, 2000 and 2008.  #-ad_banner-#Many have been quick to write off Einhorn, criticizing him for owning some of the worst performing stocks in the S&P 500 during 2015, including SunEdison (Nasdaq: SUNE) and CONSOL Energy (NYSE: CNX).  But since starting Greenlight in 1996, Einhorn’s fund has managed to generate an annualized return of 16.5%. Einhorn is one of… Read More

After losing over 20% in 2015, David Einhorn is back with a vengeance.  For Einhorn’s Greenlight Capital hedge fund, 2015 was only the fourth time in its history that it experienced what it calls outsized losses — the previous three being in 1998, 2000 and 2008.  #-ad_banner-#Many have been quick to write off Einhorn, criticizing him for owning some of the worst performing stocks in the S&P 500 during 2015, including SunEdison (Nasdaq: SUNE) and CONSOL Energy (NYSE: CNX).  But since starting Greenlight in 1996, Einhorn’s fund has managed to generate an annualized return of 16.5%. Einhorn is one of the best investors around, and for good reason.  So how will he be positioning himself to beat the market in 2016? Here are his recent moves:  These Big Names No Longer Make The Grade First and foremost, Einhorn sold off a large chunk of his top holding, Apple (Nasdaq: AAPL). He dumped 44% of his stake during the fourth quarter of 2015.  Einhorn has been an Apple bull since 2010, when he first purchased shares. And since the third quarter of 2013, Apple has made up more than 10% of the Greenlight Capital portfolio. But shares of Apple are… Read More

Earlier this month, Russian Prime Minister Dmitry Medvedev said his country was in a new Cold War with the United States and its allies in a speech at the Munich Security Conference. Tensions have been building since the beginning of Syrian civil war in 2011 but came to a boil when Russia supported Ukrainian separatists in 2014. Conflict in hot spots around the world have meant a resurgence of U.S. military involvement and even the Obama Administration is talking about an increased military role around the globe. In the five years through 2015, President Obama has overseen a nearly 20%… Read More

Earlier this month, Russian Prime Minister Dmitry Medvedev said his country was in a new Cold War with the United States and its allies in a speech at the Munich Security Conference. Tensions have been building since the beginning of Syrian civil war in 2011 but came to a boil when Russia supported Ukrainian separatists in 2014. Conflict in hot spots around the world have meant a resurgence of U.S. military involvement and even the Obama Administration is talking about an increased military role around the globe. In the five years through 2015, President Obama has overseen a nearly 20% reduction in the defense budget — but escalating tensions look to ignite another era of military build-up.  #-ad_banner-#Is the United States entering another arms race? Are you ready for the windfall for companies in the Aerospace & Defense industry? Global Hot Spots Mean Military Spending Is Heating Up PM Medvedev’s comments stirred memories of the arms race as it and the United States spar over joint-cooperation to end the five-year Syrian conflict. Russia has blamed the United States and NATO for fueling regional conflicts while the United States and allies contend that Russia is focusing its bombing runs on… Read More

Most investors know well that healthcare spending is on the rise. But it’s less well publicized that one of the fastest-growing subsets of healthcare is mental health and addiction treatment, often combined under the umbrella moniker “behavioral health.” Spending on mental health and substance abuse treatment more than doubled over the past 12 years and now represents a $250 billion market in the United States; analysts expect the sector to grow in the high-single-digit percentages for the next several years. One reason is the growing awareness and diagnosis of psychiatric illnesses, along with declining stigma associated with seeking treatment. More… Read More

Most investors know well that healthcare spending is on the rise. But it’s less well publicized that one of the fastest-growing subsets of healthcare is mental health and addiction treatment, often combined under the umbrella moniker “behavioral health.” Spending on mental health and substance abuse treatment more than doubled over the past 12 years and now represents a $250 billion market in the United States; analysts expect the sector to grow in the high-single-digit percentages for the next several years. One reason is the growing awareness and diagnosis of psychiatric illnesses, along with declining stigma associated with seeking treatment. More than 18% of American adults suffer from diagnosable mental illnesses; about 4% have been diagnosed with a serious mental illness. Depression alone is a $23 billion industry. And four of the 10 leading causes of disability in the United States are mental illnesses. #-ad_banner-#Government policy has also helped the sector grow: in 2008, the federal Mental Health Parity and Addiction Equity Act required insurance companies to cover mental illness and addiction as medical problems. The Affordable Care Act required mental health coverage as part of the new exchange system as well. Substance abuse treatment, while a relatively small part of… Read More