During my former days as a financial advisor, I’d occasionally get a call or email from someone in our “Alternative Investments” department trying to drum up business. Invariably, they wanted me to deposit my clients’ assets into a specialized hedge fund utilizing one esoteric strategy or another. Quite… Read More

When the stock market is on the upswing, private companies get in line to sell their shares and become members of the new crop of initial public offerings (IPOs). Bankers like to know that investors are in a buying mood when taking these companies… Read More

You can’t blame investors for bagging profits on big winners. Many investors that bought into Ford Motor Co. (NYSE: F) back when shares traded for the price of a Big Mac have been exiting the stock recently as it looked like the fast gains had been made. But for those focused on the long-term, the recent -20% drop in the stock creates an opportunity to jump in before shares post their next round of gains. Much ink has been spilled about Ford’s impressive management team led by CEO Alan Mullaly. They… Read More

You can’t blame investors for bagging profits on big winners. Many investors that bought into Ford Motor Co. (NYSE: F) back when shares traded for the price of a Big Mac have been exiting the stock recently as it looked like the fast gains had been made. But for those focused on the long-term, the recent -20% drop in the stock creates an opportunity to jump in before shares post their next round of gains. Much ink has been spilled about Ford’s impressive management team led by CEO Alan Mullaly. They had exquisite timing in 2008, leveraging every asset the company had to raise cash, right before the economy contracted. Had they not done so, Ford would likely have needed to declare bankruptcy along with its beleaguered peers in Detroit. Even more remarkably, Ford didn’t skimp on product development spending even when money was tight, and is now bearing the fruits of that gutsy move. To be sure, Ford’s car and truck plans are the keys to this stock. As investors saw the strong promise of its new Focus, Fiesta and… Read More

As the Obama administration gets set to spell out the restrictions placed on offshore drilling, one thing is clear: The domestic supply of oil and natural gas is bound to be cut — at least in the near-term. This should have little impact on oil prices, as the commodity is global in nature, and the Gulf contributes only a tiny fraction of the world’s output. Natural gas — that’s a different story. It’s not a fungible commodity. Natural gas costs more to transport from distant lands and the Gulf accounts… Read More

As the Obama administration gets set to spell out the restrictions placed on offshore drilling, one thing is clear: The domestic supply of oil and natural gas is bound to be cut — at least in the near-term. This should have little impact on oil prices, as the commodity is global in nature, and the Gulf contributes only a tiny fraction of the world’s output. Natural gas — that’s a different story. It’s not a fungible commodity. Natural gas costs more to transport from distant lands and the Gulf accounts for about 12% of all domestic gas production. That means the market for natural gas, which has recently had greater supply than demand, could come into balance. If that happens, the folks digging for gas on dry land would finally have a reason to cheer. Land-based drillers were euphoric a few years ago when they discovered that the United States was sitting on massive pockets of underground gas that could now be tapped thanks to new technology. The euphoria was short-lived as it quickly became apparent there was perhaps too much gas yet to be tapped. Prices… Read More

How many times has this happened to you lately? You carefully research and buy a stock. The company announces unexpectedly good financial results. But the stock’s price plummets, caught up in one of the market’s now-frequent downdrafts. You curse high-frequency traders. Your sleep suffers as the market… Read More

Investors tend to buy stocks when the market is on the upswing and avoid them when the market is flashing red. But if you focus simply on value, then you should be buying at lows. And right now, a whole host of stocks are trading at lows for the year,… Read More

On April 26, the Dow hit a 52-week high of 11,258.01. It lost -11.0% through June 2 and has since clawed back some ground but remains -8.5% below its late-April high point. We lived through some big swings in May. Those big moves don’t look like they will abate in the near-term: The “Fear Index,” a measure of investor sentiment based on options trading, has risen to 30 today from 22 in late April, signaling investors are increasingly edgy and uncertain. The soft economic recovery at home and troubles in… Read More

On April 26, the Dow hit a 52-week high of 11,258.01. It lost -11.0% through June 2 and has since clawed back some ground but remains -8.5% below its late-April high point. We lived through some big swings in May. Those big moves don’t look like they will abate in the near-term: The “Fear Index,” a measure of investor sentiment based on options trading, has risen to 30 today from 22 in late April, signaling investors are increasingly edgy and uncertain. The soft economic recovery at home and troubles in Greece and Spain and elsewhere aren’t helping anything, nor is the oil spill in the Gulf of Mexico. In a climate like this, when the market has the opportunity to cathartically dispel its anxiety, it will generally take it — and send prices plummeting. But despite the challenging environment, a select basket of stocks are still delivering tremendous returns. Even on the market’s worst days, some securities are actually rising in price, sometimes substantially. Great stocks can see their shares gain a lot of ground in a… Read More

After plunging steadily in recent weeks, share prices in the oil and gas exploration appear to have finally found a floor. Some stocks such as Halliburton (NYSE: HAL) and Schlumberger (NYSE: SLB) sharply rose on Wednesday after falling close to their 52-week lows, while other stocks such as Diamond Offshore… Read More

For most investors, the health of the U.S. economy should be the most important item to track. How the economy fares will directly correlate with how the Nasdaq, NYSE and S&P 500 perform — over the long-term. But right now, attention is focused on… Read More

Earlier this month, gold prices hit an all-time high, as the yellow metal fetched more than $1,240 an ounce. Yet gold bugs still think the price can hit even higher highs, back to the nearly $2,000 per ounce figure hit in the 1980s, on an inflation-adjusted basis. That could spell… Read More