After a 25%-plus move higher this year, many investors are starting to get nervous about the odds of additional upside in emerging-market equities. The market, however, is sending far different signals. The upward surge is far from over. In fact, it may still be in its infancy. There are seven important factors telling me to hold on to my bullish expectations for the sector.  Why I Think Emerging Markets Are Only Going Up 1. Economic Growth Developed markets are experiencing a growth slowdown while emerging markets are in a long-term expansion phase.  While developed markets are forecasted… Read More

After a 25%-plus move higher this year, many investors are starting to get nervous about the odds of additional upside in emerging-market equities. The market, however, is sending far different signals. The upward surge is far from over. In fact, it may still be in its infancy. There are seven important factors telling me to hold on to my bullish expectations for the sector.  Why I Think Emerging Markets Are Only Going Up 1. Economic Growth Developed markets are experiencing a growth slowdown while emerging markets are in a long-term expansion phase.  While developed markets are forecasted to grow by just 2% in 2017, emerging markets are projected to hit 4.5% growth this year. The growth is predicted to climb nearly 5% in 2018.  #-ad_banner-#The BRIC nations (Brazil, Russia, India, and China) create 22% of the global GDP, a figure that continues to climb. An expected 80% of total world GDP growth will come from emerging markets over the next five years, according to the International Monetary Fund (IMF).  India and China’s portion of world GDP has grown by six times since 1970. The G7 nations’ share of world trade has declined from 50% to 30% during… Read More

I’ve been doing a lot of reading these days about my own generation: the millennials. While I’m at the older end of the cohort, and don’t necessarily identify as one, even I will admit that we’re a tough bunch to figure out. You’ve heard the stereotypes — and many of them are true. We’re notoriously fickle, embrace irony at every opportunity, and were colored markedly by technology (as well as the financial crisis). But here’s what you might not know… the millennial population is now 75.4 million, according to the Pew Research Center. That group (born roughly between 1980 and 2000, depending… Read More

I’ve been doing a lot of reading these days about my own generation: the millennials. While I’m at the older end of the cohort, and don’t necessarily identify as one, even I will admit that we’re a tough bunch to figure out. You’ve heard the stereotypes — and many of them are true. We’re notoriously fickle, embrace irony at every opportunity, and were colored markedly by technology (as well as the financial crisis). But here’s what you might not know… the millennial population is now 75.4 million, according to the Pew Research Center. That group (born roughly between 1980 and 2000, depending on the source) now outnumber the 74.9 million baby boomers (late 1940s to 1964). Given this data — especially the fact that older millennials (like myself) are in their early 30s (prime years of consumption) — companies have been trying to wrap their heads around just what it is that makes us tick. There’s big money in that, after all… From my perspective, here’s how the media tends to portray millennials (maybe you’ve found yourself thinking this, too): — Very tech-savvy. — Hate being labeled. — Easily bored, distracted, crave instant gratification, and constantly on the move. — Waiting longer to get married,… Read More

The Republican Party’s attempts to “fix” the Affordable Care Act (Obamacare) have been nothing short of disastrous. And if it weren’t for the seriousness of the issue, it would be downright hilarious. Whether you agree the government has a role in healthcare or not, it should be clear to everyone that the federal government has no idea how to solve the myriad problems they themselves create. Incompetent Washington bureaucrats have only made health care worse in America. And sadly, these same bureaucrats will do everything in their power to maintain the status quo. But their incompetence isn’t just relegated to… Read More

The Republican Party’s attempts to “fix” the Affordable Care Act (Obamacare) have been nothing short of disastrous. And if it weren’t for the seriousness of the issue, it would be downright hilarious. Whether you agree the government has a role in healthcare or not, it should be clear to everyone that the federal government has no idea how to solve the myriad problems they themselves create. Incompetent Washington bureaucrats have only made health care worse in America. And sadly, these same bureaucrats will do everything in their power to maintain the status quo. But their incompetence isn’t just relegated to the healthcare debate.  The problems in healthcare mirror the problems of Social Security (OASDI) — although social security’s unfunded liabilities are orders of magnitude the size and scope of healthcare. Unfortunately, the end-result will be the same. —Sponsored Link— Big Tobacco’s Punishment: A Long Time Coming In November of 1998, the “Big Four of Big Tobacco” were sued for using misleading advertisements and manipulating scientific research. And in a landmark settlement they agreed to pay a historic sum of money in perpetuity to those affected. We estimate they’ve been paying out about $686 million a… Read More

Baby steps.  This is how most investors start, with a smallish sum of money and only a few positions.  Over time, these holdings appreciate, and investors put additional money to work. The portfolio grows, and with that, so does its complexity. Sooner or later, many investors begin to feel the need to get organized. And for that, they need to understand the basic rules of portfolio building.  Of course, as a finance professional, I think this should be filed under the category “the sooner, the better.” Investing is a serious affair, and it’s good to follow the basics from the… Read More

Baby steps.  This is how most investors start, with a smallish sum of money and only a few positions.  Over time, these holdings appreciate, and investors put additional money to work. The portfolio grows, and with that, so does its complexity. Sooner or later, many investors begin to feel the need to get organized. And for that, they need to understand the basic rules of portfolio building.  Of course, as a finance professional, I think this should be filed under the category “the sooner, the better.” Investing is a serious affair, and it’s good to follow the basics from the beginning. But it’s never too late to start.  The first decision any investor should make is all about asset allocation. The exact portfolio allocation for stocks, bonds and cash should largely depend on an investor’s own time horizon and risk tolerance. General guidelines can be applied , however, nobody knows your situation better than you do, and the process of determining where you want your money to go is much more personal than any newsletter allows.  —Recommended Link— Make This Move For A Millionaire Retirement If you want a millionaire retirement, you need to check this move out. It… Read More

Eat your peas! Wash your hands! Do your homework! Sounds familiar, right? None of us got to adulthood without following a set of simple rules. Of course, mom was right… Whether you’re a kid or an adult approaching retirement, all of these rules are important.  Especially the homework rule.  Doing your homework, knowing your investments and researching the new ones is a very important and necessary part of being a successful investor.  Worry not, though. If you’re a subscriber to my Daily Paycheck premium income newsletter service, I do the homework for you. Even if you sometimes don’t feel like… Read More

Eat your peas! Wash your hands! Do your homework! Sounds familiar, right? None of us got to adulthood without following a set of simple rules. Of course, mom was right… Whether you’re a kid or an adult approaching retirement, all of these rules are important.  Especially the homework rule.  Doing your homework, knowing your investments and researching the new ones is a very important and necessary part of being a successful investor.  Worry not, though. If you’re a subscriber to my Daily Paycheck premium income newsletter service, I do the homework for you. Even if you sometimes don’t feel like it… Besides researching stocks and funds, my own homework includes a healthy dose of staying on top of all the latest news and studying what others think about the market. Plus, when I can, I also look at what other experienced investors are doing, taking the opportunity to learn from the knowledge and practical experience of others.  But this doesn’t just mean we should blindly take positions in companies other experienced investors like, regardless of how rich and famous those investors happen to be.  —Sponsored Link— New ‘Perfect Retirement Business’ Could Make You $100s Per Week… Read More

Even with the market setting new highs day after day, we haven’t really seen the kind of celebratory mood that should come with such record-breaking performances. Don’t get me wrong, it’s great to see stocks rallying. In the past 12 months alone, defying skeptics, the S&P 500 index added some 18.7%, including dividends. The S&P’s annual return is impressive, but it’s still lagging behind the Nasdaq Composite’s 29%, and the blue-chip Dow Industrials, which returned 22% the past year. And this is on top of an already-strong showing, which became the second-longest bull market on record as of last May. Read More

Even with the market setting new highs day after day, we haven’t really seen the kind of celebratory mood that should come with such record-breaking performances. Don’t get me wrong, it’s great to see stocks rallying. In the past 12 months alone, defying skeptics, the S&P 500 index added some 18.7%, including dividends. The S&P’s annual return is impressive, but it’s still lagging behind the Nasdaq Composite’s 29%, and the blue-chip Dow Industrials, which returned 22% the past year. And this is on top of an already-strong showing, which became the second-longest bull market on record as of last May. Still, judging by the emails I’ve been getting, many investors are nervous. It’s not surprising that the memory of the last bear market is still fresh in the minds of many investors. After all, it’s only been eight years since the S&P 500 bottomed (along with many retirement accounts). And that crash came soon after the dot-com crash at the turn of the century. The investors who needed that money the most — recent retirees and those who were about to retire — suffered immensely through these two downturns. It’s quite possible that the stress of these two bear markets… Read More

What an incredible year it’s been in the stock market. The Nasdaq has soared over 29%, and the DJIA and the S&P 500 are both trading higher by more than 15% during the last 52 weeks.  Investors rejoiced as the Trump administration made one broad-reaching, bullish proclamation after another. Talk of revitalizing the American economy, major tax reform, and huge infrastructure spending has supercharged core industries, taking the stock market along for the ride.  It’s seemed like there’s been nowhere to go but up as Trump-driven enthusiasm sweeps the economy.  Investors Beware The old saying holds true for the… Read More

What an incredible year it’s been in the stock market. The Nasdaq has soared over 29%, and the DJIA and the S&P 500 are both trading higher by more than 15% during the last 52 weeks.  Investors rejoiced as the Trump administration made one broad-reaching, bullish proclamation after another. Talk of revitalizing the American economy, major tax reform, and huge infrastructure spending has supercharged core industries, taking the stock market along for the ride.  It’s seemed like there’s been nowhere to go but up as Trump-driven enthusiasm sweeps the economy.  Investors Beware The old saying holds true for the stock market: What goes up, must come down. Historically high levels hit a significant speed bump on May 17, with a sharp decline across the board. While the market quickly recovered, it revealed a major disconnect in the Trump-fueled rally.  Remember, the stock market is an anticipatory mechanism, meaning it moves based on what is expected to happen rather than what has occurred. The dramatic enthusiasm for change is being tempered by political challenges. The President’s rhetoric is no longer enough to power the economic boom — investors want the promised changes to actually materialize.  Frustration is starting to set… Read More

Around our house, the month of May always seems to be unusually hectic. My wife is a teacher, so she is buttoning up her school year. My teenagers are furiously studying for and taking exams. Often, it seems that this domestic volatility is also found in the market. There is some truth to the investing adage “sell in May and go away.” This 10-year chart is compelling evidence. Over the last 10 years, the S&P 500 has experienced noticeable volatility during the month of May 9 out of 10 times. Would you have been better off selling and… Read More

Around our house, the month of May always seems to be unusually hectic. My wife is a teacher, so she is buttoning up her school year. My teenagers are furiously studying for and taking exams. Often, it seems that this domestic volatility is also found in the market. There is some truth to the investing adage “sell in May and go away.” This 10-year chart is compelling evidence. Over the last 10 years, the S&P 500 has experienced noticeable volatility during the month of May 9 out of 10 times. Would you have been better off selling and sitting on cash? Maybe, maybe not. However, as we approach the mid-year point, there are a few things investors can do to ensure their portfolio is well positioned for the second half of the year. Here are three key steps to take for a summer portfolio checkup. 1. Review Non-Core Holdings Good portfolio construction should include both core and non-core stocks. Core stocks would be those purchased based on a long-term, strategic story like the rise of the global middle class, the Internet of things, the aging baby boomer population, or consistent dividend growth. These are phenomena that take… Read More

“Sometimes I wonder whether the world is being run by smart people who are putting us on or by imbeciles who really mean it.” The above is a quote by Laurence J. Peter, the man who formulated the Peter Principle. For the uninitiated, the Peter Principle states that an employee is promoted based on their performance in their current position — not on their ability to do the new job. This means the employee will continue to receive promotions until they get a job they can’t do.  Once they reach this level, they have gone as far as they can… Read More

“Sometimes I wonder whether the world is being run by smart people who are putting us on or by imbeciles who really mean it.” The above is a quote by Laurence J. Peter, the man who formulated the Peter Principle. For the uninitiated, the Peter Principle states that an employee is promoted based on their performance in their current position — not on their ability to do the new job. This means the employee will continue to receive promotions until they get a job they can’t do.  Once they reach this level, they have gone as far as they can in that organization. Peter called this level their “level of incompetence.” Unfortunately, once an employee reaches his level of incompetence, the organization begins to suffer. And by default, the customers of that organization are harmed by the incompetent person’s inability to do their job. What The Peter Principle Looks Like In Reality The Wall Street Journal has been taking comments in an online debate over the idea of investing the Social Security trust fund in stocks. The idea is that the Social Security trust fund has about $2.9 trillion in assets that, if invested in… Read More

If you’re like most investors, you have some kind of goal in mind. And while there are many specific goals and plans to reach them, at the end of the day, I’m willing to bet that the ultimate goal is long-term wealth. Specifically, you want to be a millionaire. If that’s your goal, then it simply can’t happen without dedicating a portion of your portfolio to aggressive growth stocks. Now don’t get me wrong. You should invest in stable, reliable assets like dividend-paying stocks, blue chips, index funds, and the like. In fact, most of your portfolio — let’s say… Read More

If you’re like most investors, you have some kind of goal in mind. And while there are many specific goals and plans to reach them, at the end of the day, I’m willing to bet that the ultimate goal is long-term wealth. Specifically, you want to be a millionaire. If that’s your goal, then it simply can’t happen without dedicating a portion of your portfolio to aggressive growth stocks. Now don’t get me wrong. You should invest in stable, reliable assets like dividend-paying stocks, blue chips, index funds, and the like. In fact, most of your portfolio — let’s say 80% — should go into these types of investments. But the other 20%? That’s different. Invest that other 20% of your money into big ideas that are changing the world. —Recommended Link— Leaked: Stock Indicator Predicts Market Crash This indicator avoided the 2008 market crash… and got you back into the market just four days after the bottom. To use it, click here. Why? Well, to put it simply, these are the companies that stand the best chance of dramatically increasing your profit potential. That special 20% is important. In fact, it’s the entire focus of y premium newsletter,… Read More