Rumors have circulated for decades that Albert Einstein once said that compound interest is the “eighth wonder of the world.” While there is no real evidence the famed theoretical physicist ever made the quote, the idea that compound interest is the most powerful force in investing rings true. —Recommended Link— Generate $40,653 Per Year (Starting Tomorrow) Here’s a brief tip on making sure you never run out of spending money. It’s called “Social Security Insurance.” Once you’ve got it, Social Security could go belly-up and it wouldn’t affect your payout one bit. My clients are generating an average of… Read More

Rumors have circulated for decades that Albert Einstein once said that compound interest is the “eighth wonder of the world.” While there is no real evidence the famed theoretical physicist ever made the quote, the idea that compound interest is the most powerful force in investing rings true. —Recommended Link— Generate $40,653 Per Year (Starting Tomorrow) Here’s a brief tip on making sure you never run out of spending money. It’s called “Social Security Insurance.” Once you’ve got it, Social Security could go belly-up and it wouldn’t affect your payout one bit. My clients are generating an average of $40,653 per year this way… deposited directly into their account every month. Check it out here. For novice investors, compound interest is ‘interest on interest.’ It’s based on the idea that interest earned on a sum of money is reinvested back into the principal to earn additional interest in the future. Thus, if an investor were to leave their interest to earn additional interest over a long period, a sum of money will grow exponentially — especially in the latter years. The following chart illustrates the wonder of compound interest compared to simple interest. Here, an investor earning… Read More

I recently met with some human resources personnel — long story, I’ll skip the whys and wherefores. They walked me through their services with a snazzy presentation. Some of the slides had video; they showed an HR representative (“Sally”) meeting with a new hire (“Kyle”). In one segment, they were talking about the 401(k) plan. Sally explained that for each dollar Kyle contributed to his 401(k) he received a company match, up to 7.5% of his salary, to a limit set by the IRS. It showed an animation of a pencil calculation of a 10% contribution. —Recommended Link— Idiot-Proof Investing… Read More

I recently met with some human resources personnel — long story, I’ll skip the whys and wherefores. They walked me through their services with a snazzy presentation. Some of the slides had video; they showed an HR representative (“Sally”) meeting with a new hire (“Kyle”). In one segment, they were talking about the 401(k) plan. Sally explained that for each dollar Kyle contributed to his 401(k) he received a company match, up to 7.5% of his salary, to a limit set by the IRS. It showed an animation of a pencil calculation of a 10% contribution. —Recommended Link— Idiot-Proof Investing Hack Proves You CAN Beat Wall Street at Their Game If you want to grow your retirement portfolio fast, there’s an under-the-radar system quietly making daily returns for a handful of cunning investors. If the thought of an extra $1,543… $2,184… even $4,200 each month in cash sounds good to you, this special report shows you how to get it… Okay so far. Then: Kyle: How much money should I put in my 401(k)? Sally: That’s up to you. There are some calculators on the website that let you try different scenarios. Kyle: I’ll have to check them out… Read More

It wasn’t the interest rate decision made by the Fed recently but what Chairman Powell said after the meeting that shocked the markets. In fact, a subtle change in expectations may have foreshadowed the single best predictor for economic recession. —Recommended Link— Life-Saving Drug In Phase 3 Trials — FDA Fast Track Our experts have uncovered a small pharmaceutical company with a life-saving drug that virtually cures the deadliest food allergy on the planet. It’s so important that the FDA has given it Fast Track Designation to speed up the review process. We’re talking about a triple-digit opportunity —… Read More

It wasn’t the interest rate decision made by the Fed recently but what Chairman Powell said after the meeting that shocked the markets. In fact, a subtle change in expectations may have foreshadowed the single best predictor for economic recession. —Recommended Link— Life-Saving Drug In Phase 3 Trials — FDA Fast Track Our experts have uncovered a small pharmaceutical company with a life-saving drug that virtually cures the deadliest food allergy on the planet. It’s so important that the FDA has given it Fast Track Designation to speed up the review process. We’re talking about a triple-digit opportunity — but only if you act quickly. Good news could break any day and send the stock soaring! Click here to see why this is the best chance at triple digit gains we’ve seen in a long time. In fact, this recession indicator is seven-for-seven over nearly half a century. Top it all off with market jitters over a trade war and other geopolitical problems and the bear could be coming sooner than you think. The Real Danger Last Week Wasn’t The Rate Increase The Federal Open Market Committee (FOMC) increased its target fed funds rate 0.25% as expected at… Read More

Even long-term crypto bulls have been shaken to the core with the recent selloff. I can relate. #-ad_banner-#I feel the pain of holding a portfolio of cryptocurrency assets while fighting a strong emotional urge to dump everything. I know this pain well after being involved in the financial markets for nearly three decades. Having experienced the internet bubble, the market chaos of 9-11, and the mortgage meltdown triggered financial crisis of 2008, I have learned a few things about how to deal with this painful feeling. First, don’t let emotions rule your decision making. Second, stay objective — even if… Read More

Even long-term crypto bulls have been shaken to the core with the recent selloff. I can relate. #-ad_banner-#I feel the pain of holding a portfolio of cryptocurrency assets while fighting a strong emotional urge to dump everything. I know this pain well after being involved in the financial markets for nearly three decades. Having experienced the internet bubble, the market chaos of 9-11, and the mortgage meltdown triggered financial crisis of 2008, I have learned a few things about how to deal with this painful feeling. First, don’t let emotions rule your decision making. Second, stay objective — even if it’s your money on the line — and, lastly, look for reasons behind the market turmoil. Ask yourself the following questions: Why is the sell off happening? Does it makes sense? Is the selling due to systemic, long-term problems, or is it merely part of the natural market? Before we start answering these questions, it is critical to note that cryptocurrency is a different beast than the traditional financial markets for multiple reasons. The crypto market is very young and untested. There is so much hype and vaporware in the crypto business. It is extraordinarily difficult to determine what is… Read More

Technical analysis is a hot topic in investment circles.  Everyone from internet forum participants to billion dollar hedge fund managers seem to have a strong opinion about its value. The advent of online investing with its free access to trading platforms offering every type of technical indicator and chart type has made technical analysis the default analysis tool for the average investor. However, many investors do not understand how to properly utilize or even view technical analysis as an investing tool. #-ad_banner-#First, why am I qualified to talk about this? Well, I have been observing, investing, and… Read More

Technical analysis is a hot topic in investment circles.  Everyone from internet forum participants to billion dollar hedge fund managers seem to have a strong opinion about its value. The advent of online investing with its free access to trading platforms offering every type of technical indicator and chart type has made technical analysis the default analysis tool for the average investor. However, many investors do not understand how to properly utilize or even view technical analysis as an investing tool. #-ad_banner-#First, why am I qualified to talk about this? Well, I have been observing, investing, and actively trading the financial markets since 1990. I have studied technical analysis both as a practitioner and academically, in addition to interacting with and sometimes interviewing many of the giants in the investment business. The following five points are my conclusions about this controversial investment subject. 1. Art Not A Science Since the start of the financial markets, investors have tried, mostly in vain, to quantify technical analysis and turn it into a science. Price charts are open to interpretation by the observer. One technical analyst will think a particular pattern is bullish, while another will… Read More

The current smackdown in the cryptocurrency markets has many investors questioning the wisdom of holding through the selling. I, however, remain a crypto bull in the major currencies. Here’s why: 1. Nasdaq Embraces Cryptocurrency The market just took a vast but underappreciated step toward the legitimization of cryptocurrency.  The Nasdaq stock exchange stated that it is open to becoming a cryptocurrency exchange.  An established and respected financial marketplace, such as the Nasdaq, embracing cryptocurrency is another bullish step in making the burgeoning blockchain world mainstream.   #-ad_banner-#While roadblocks, such as an accepted regulation framework, remain a stumbling block for… Read More

The current smackdown in the cryptocurrency markets has many investors questioning the wisdom of holding through the selling. I, however, remain a crypto bull in the major currencies. Here’s why: 1. Nasdaq Embraces Cryptocurrency The market just took a vast but underappreciated step toward the legitimization of cryptocurrency.  The Nasdaq stock exchange stated that it is open to becoming a cryptocurrency exchange.  An established and respected financial marketplace, such as the Nasdaq, embracing cryptocurrency is another bullish step in making the burgeoning blockchain world mainstream.   #-ad_banner-#While roadblocks, such as an accepted regulation framework, remain a stumbling block for the mainstreaming of crypto, Nasdaq’s openness to the market is a definite first step. Nasdaq CEO Adena Friedman told CNBC, “I believe that digital currencies will continue to persist, it’s just a matter of how long it will take for that space to mature. Once you look at it and say, ‘do we want to provide a regulated market for this?’ Certainly, Nasdaq would consider it.” Additional bullish news from Nasdaq includes a collaboration with the Gemini crypto exchange.  Founded by the Winklevoss Twins of Facebook fame,  Gemini is on the forefront of making crypto trading safer and less prone… Read More

Have President Trump’s protectionist policies gone overboard?   Once heralded as the most pro-business U.S. president since Ronald Reagan, Trump’s zeal to shelter American businesses from global competition has caused many free-market economists to question his wisdom.   The stock market has benefitted wildly from the White House’s corporate tax reform.  Bulls remain in charge, but things are rapidly changing. #-ad_banner-#Trump’s protectionist actions, combined with his erratic nature, have cast doubt on the markets. The stock market hates uncertainty and doubts beyond all else. Trump’s negotiating style has dumped uncertainty into the markets at an unprecedented degree.   Nowhere is… Read More

Have President Trump’s protectionist policies gone overboard?   Once heralded as the most pro-business U.S. president since Ronald Reagan, Trump’s zeal to shelter American businesses from global competition has caused many free-market economists to question his wisdom.   The stock market has benefitted wildly from the White House’s corporate tax reform.  Bulls remain in charge, but things are rapidly changing. #-ad_banner-#Trump’s protectionist actions, combined with his erratic nature, have cast doubt on the markets. The stock market hates uncertainty and doubts beyond all else. Trump’s negotiating style has dumped uncertainty into the markets at an unprecedented degree.   Nowhere is this economic uncertainty more vivid than the rapidly deteriorating U.S.-China trade relations.   Make no mistake, Trump’s idea of fighting China’s unfair trade practices is noble.  However, his heavy-handed uncertainty in execution is resulting in greater economic harm than good.  In fact, it may completely erase his tax reform-fueled market gains overtime.   The proposal of hitting the world’s second-largest economy with 25% tariffs on $50 billion of imports will not only hurt the Chinese economy, it will have severe effects domestically.   China will not quietly sit still and accept the new tariffs; it will retaliate with a slate… Read More

Berkshire Hathaway recently reported its equity holdings through Form 13-F and caught the market by surprise with some additions and sales. As the market fixates on individual purchases and sales, I’ve found looking more broadly at the portfolio reveals valuable insight into Warren Buffett’s outlook on stocks. #-ad_banner-#In fact, Buffett’s portfolio is surprisingly concentrated in just three industries. Combining this with position changes in individual stocks, investors may be able to get ahead of The Oracle of Omaha by investing in best-of-breed companies within the industries. What’s In Warren Buffett’s Portfolio? Buffett took the lead in 1965 and has… Read More

Berkshire Hathaway recently reported its equity holdings through Form 13-F and caught the market by surprise with some additions and sales. As the market fixates on individual purchases and sales, I’ve found looking more broadly at the portfolio reveals valuable insight into Warren Buffett’s outlook on stocks. #-ad_banner-#In fact, Buffett’s portfolio is surprisingly concentrated in just three industries. Combining this with position changes in individual stocks, investors may be able to get ahead of The Oracle of Omaha by investing in best-of-breed companies within the industries. What’s In Warren Buffett’s Portfolio? Buffett took the lead in 1965 and has rewarded investors ever since. Returns on shares of Berkshire Hathaway have climbed 20% annually over the last 38 years, easily beating the S&P 500. That means instant market buzz anytime the company files its Form 13-F, a regulatory disclosure of portfolio holdings, which was released  May 15 showing first-quarter activity. The media loves to go straight to the individual stocks and changes in Buffett’s portfolio when a new 13-F is filed each quarter,  but a wider view can be just as instructive in revealing his outlook on the market. The Berkshire equity portfolio includes just 42 companies for a total… Read More

One of my favorite TV shows of the ’80s was “The A-Team.” While short on being highbrow entertainment, the show was long on stuff blowing up and catchphrases. While Mr. T’s “Fool!” was the fan favorite, I was always partial to the cigar chomping Colonel Hannibal Smith’s “I love it when a plan comes together.” If he had been long in oil in mid-March, he’d be breaking out the stogies. Two months ago, I published an article profiling oil and where it was going. It came in right on target. #-ad_banner-#After a big move in a short time is the… Read More

One of my favorite TV shows of the ’80s was “The A-Team.” While short on being highbrow entertainment, the show was long on stuff blowing up and catchphrases. While Mr. T’s “Fool!” was the fan favorite, I was always partial to the cigar chomping Colonel Hannibal Smith’s “I love it when a plan comes together.” If he had been long in oil in mid-March, he’d be breaking out the stogies. Two months ago, I published an article profiling oil and where it was going. It came in right on target. #-ad_banner-#After a big move in a short time is the run done? Not yet. Let me add a caveat to that. While the upside in the actual black, dead dinosaur and plant matter stuff may be limited, a lot of oil-related stocks have not participated in the move for one reason or another. Here are some that make sense and are trading at attractive levels. Enbridge Energy Partners LP (NYSE: EEP) — Focusing on petroleum liquids gathering, transportation and storage.While the unit price took a painful 27% hit after the Federal Energy Regulatory Commission’s tax policy ruling regarding master limited partnerships (MLP’s), analysts are confident that Enbridge can cover its… Read More

The U.S. dollar has exploded, forcing stock investors to pay attention. The strength or weakness of the currency can have tremendous influence over stock prices, making it critical for investors to understand the correlation. Market prices are influenced — both positively and negatively — depending on the sector and direction of the U.S. dollar.  A strong dollar benefits some industries while hurting others. Right now, the USD is on its way back up. #-ad_banner-#After 2017 was spent in an aggressive downward trend, the greenback bottomed in January 2018, proceeding to build a technical price base for the next 12-plus weeks. Read More

The U.S. dollar has exploded, forcing stock investors to pay attention. The strength or weakness of the currency can have tremendous influence over stock prices, making it critical for investors to understand the correlation. Market prices are influenced — both positively and negatively — depending on the sector and direction of the U.S. dollar.  A strong dollar benefits some industries while hurting others. Right now, the USD is on its way back up. #-ad_banner-#After 2017 was spent in an aggressive downward trend, the greenback bottomed in January 2018, proceeding to build a technical price base for the next 12-plus weeks. At the start of April 2018, the currency started to tick higher until technical resistance at both the 50 and 200-day simple moving averages were broken on the upside. Now, with the support of both major moving averages, there is little doubt that a substantial uptrend has been established. I have little doubt that the greenback’s climb will continue for the rest of 2018 at a minimum. The combined factors of upside technical price momentum, advancing interest rates, and improving economy provide little choice for the U.S. currency to do anything but gain strength. Now that we have established that… Read More