Federal Reserve Chairwoman Janet Yellen gave a speech in Jackson Hole, Wyoming, on Friday, saying that the central bank will likely raise short-term interest rates at least once by the end of the year. The first possible increase could be during the Fed’s policy meeting on Sept. 20-21. But according to the Wall Street Journal, any announcement will likely depend on the results of the Sept. 2 jobs report. If the data disappoint, then the door is still open for a possible rate hike in November or December. #-ad_banner-#From the Journal: “The Fed pushed rates to near zero in December… Read More

Federal Reserve Chairwoman Janet Yellen gave a speech in Jackson Hole, Wyoming, on Friday, saying that the central bank will likely raise short-term interest rates at least once by the end of the year. The first possible increase could be during the Fed’s policy meeting on Sept. 20-21. But according to the Wall Street Journal, any announcement will likely depend on the results of the Sept. 2 jobs report. If the data disappoint, then the door is still open for a possible rate hike in November or December. #-ad_banner-#From the Journal: “The Fed pushed rates to near zero in December 2008, kept them there for seven years and then nudged them up a quarter percentage point last December. Officials began the year expecting to raise rates four times in quarter-point increments but have delayed moving them because economic growth disappointed in the first half of the year and because they were uncertain about developments overseas and about the strength of the U.S. job market after some soft reports. Ms. Yellen said her worries had dissipated. ‘While economic growth has not been rapid, it has been sufficient to generate further improvement in the labor market,’ Ms. Yellen said. Broad measures of… Read More

Today I’d like to dust off one of our favorite strategies for dealing with a pullback: getting paid to buy stocks at a discount. If you’ve followed along with StreetAuthority Daily for a while, then you’re probably familiar with my colleague Amber Hestla and the put-selling strategy she uses in her premium newsletter, Income Trader. For those that are unfamiliar, you can in effect get paid for the chance to buy stocks at a discount by utilizing a conservative strategy that involves selling put options contracts. And in a market making new all-time highs week after week, I don’t have… Read More

Today I’d like to dust off one of our favorite strategies for dealing with a pullback: getting paid to buy stocks at a discount. If you’ve followed along with StreetAuthority Daily for a while, then you’re probably familiar with my colleague Amber Hestla and the put-selling strategy she uses in her premium newsletter, Income Trader. For those that are unfamiliar, you can in effect get paid for the chance to buy stocks at a discount by utilizing a conservative strategy that involves selling put options contracts. And in a market making new all-time highs week after week, I don’t have to tell you that the available “discounts” on quality companies are far and few between. Here’s how it works. Let’s say you really want to buy software giant Microsoft (Nasdaq: MSFT). But at a recent price of just over $57.50 per share, you feel like the stock is a little expensive. At that price, the stock has a price-to-earnings ratio of 27.6, which is pretty rich when compared to its five-year average of 20. Consequently, that P/E is also a good deal above the broader market’s current valuation (the S&P 500’s P/E is about 20). You’d feel a lot… Read More

It’s easy to like Warren Buffett. Despite amassing a nearly $66 billion fortune, he remains folksy and accessible. He’s not perfect — but then again, he’s also rarely wrong.  But one important thing to keep in mind when studying Warren Buffett is understanding that Buffett would not be where he is today without Charlie Munger, his business partner.  Munger may not be as famous as Buffett, but he has been instrumental in not only Berkshire Hathaway’s success — but also Buffett’s evolution as an investor. #-ad_banner-# Warren Buffett came up as a disciple of Ben Graham, the father of “value… Read More

It’s easy to like Warren Buffett. Despite amassing a nearly $66 billion fortune, he remains folksy and accessible. He’s not perfect — but then again, he’s also rarely wrong.  But one important thing to keep in mind when studying Warren Buffett is understanding that Buffett would not be where he is today without Charlie Munger, his business partner.  Munger may not be as famous as Buffett, but he has been instrumental in not only Berkshire Hathaway’s success — but also Buffett’s evolution as an investor. #-ad_banner-# Warren Buffett came up as a disciple of Ben Graham, the father of “value investing”. This can be basically defined as buying stocks trading for dirt-cheap valuations. And it was this approach that led Buffett’s investment partnership to acquire Berkshire Hathaway in 1965. Back then, Berkshire was a failing textile manufacturer. The stock was selling for around $7.50 per share, a major discount from the per-share working capital of $10.25 and book value of $20.20. Buffett also noticed that the company was using the proceeds from closing down some of its plants to repurchase shares.  So Buffett quietly began purchasing shares until Berkshire’s then-CEO issued a tender offer to buy back shares for $11.375. Read More

With the market hitting new highs recently, investors should be weary of small-cap stocks. That’s because when the market inevitably turns, it’s usually smaller stocks that lead the charge in either direction. #-ad_banner-#But while investors should be cautious about small-cap stocks in general, my colleague Andy Obermueller has identified one that could be an exception. Back in August of last year, Andy highlighted a little-known company called Amplify (NYSE: BETR), an Austin, Texas-based snack food company. Amplify’s best-selling product is Skinny Pop, a healthy form of popcorn. But it also makes a host of other health-conscious foods for consumers. When… Read More

With the market hitting new highs recently, investors should be weary of small-cap stocks. That’s because when the market inevitably turns, it’s usually smaller stocks that lead the charge in either direction. #-ad_banner-#But while investors should be cautious about small-cap stocks in general, my colleague Andy Obermueller has identified one that could be an exception. Back in August of last year, Andy highlighted a little-known company called Amplify (NYSE: BETR), an Austin, Texas-based snack food company. Amplify’s best-selling product is Skinny Pop, a healthy form of popcorn. But it also makes a host of other health-conscious foods for consumers. When Andy originally wrote about Amplify, he issued an immediate “buy” recommendation on the stock, which had recently gone public. Andy recently confessed to his Game-Changing Stocks readers that his timing was perhaps a little bit off, but anyone who followed his recommendation is still sitting on a nice gain:       “Looking back, I can see — and feel obligated to confess — that I made an error in my timing. As with many IPOs, the market created future entry points far more attractive than the pricing available at the time of my recommendation. I erred further in failing… Read More

Fox Business recently tapped our resident options expert Jared Levy to discuss earnings results and debate a recent research report on the future of the U.S. economy from Morgan Stanley. The report’s headline: “No Fed Rate Hike Until 2018.” That’s news enough, but as Jared dug deeper, he found some troubling signs relating to the American consumer as well…… Read More

Fox Business recently tapped our resident options expert Jared Levy to discuss earnings results and debate a recent research report on the future of the U.S. economy from Morgan Stanley. The report’s headline: “No Fed Rate Hike Until 2018.” That’s news enough, but as Jared dug deeper, he found some troubling signs relating to the American consumer as well… Here’s what Jared told readers of his premium newsletter, Pro Trader, about the report:       “The Morgan Stanley report forecast 2017 U.S. GDP growth at only 1.5%, which is 35% lower than the consensus of 2.3%. The report detailed just how bad things are for American consumers and how many were skimping on expenditures and saving in record numbers. Morgan Stanley explained that the Fed would be working overtime just to… Read More

#-ad_banner-#I have some important news to share with you today. Readers of our premium income advisory, The Daily Paycheck, know that longtime Chief Investment Strategist Amy Calistri recently learned that her mother has cancer. In light of this difficult news, Amy decided to step away from her role and focus on caring for her family. I’ll introduce Amy’s replacement in a moment, but first, I’d be remiss if I didn’t say a few things about my colleague and what she’s meant to us as well as her valued subscribers. We’ve learned much from Amy over the years. And… Read More

#-ad_banner-#I have some important news to share with you today. Readers of our premium income advisory, The Daily Paycheck, know that longtime Chief Investment Strategist Amy Calistri recently learned that her mother has cancer. In light of this difficult news, Amy decided to step away from her role and focus on caring for her family. I’ll introduce Amy’s replacement in a moment, but first, I’d be remiss if I didn’t say a few things about my colleague and what she’s meant to us as well as her valued subscribers. We’ve learned much from Amy over the years. And there’s perhaps no greater testament to that by looking at the results she’s produced in The Daily Paycheck. Here’s how she recapped her experience with the Daily Paycheck system in a parting note to her subscribers:       “It takes a bit of patience to be a Daily Paycheck investor. It’s not a get-rich-quick scheme. But with a little time and patience, The Daily Paycheck strategy can make a significant difference in anyone’s life. Let’s see how patience has paid off for us so far… In the roughly six and a half years… Read More

Do you follow the 80/20 rule? During the past century this simple ratio has developed into one of the most useful concepts and tools of modern-day routine. In a moment, I’ll show you how you can use a version of the 80/20 rule to help take your portfolio to a whole other level. #-ad_banner-#First, some background… The 80/20 rule assumes that most of the results in any situation — sales, finance and even personal relationships — are determined by a small number of events. The… Read More

Do you follow the 80/20 rule? During the past century this simple ratio has developed into one of the most useful concepts and tools of modern-day routine. In a moment, I’ll show you how you can use a version of the 80/20 rule to help take your portfolio to a whole other level. #-ad_banner-#First, some background… The 80/20 rule assumes that most of the results in any situation — sales, finance and even personal relationships — are determined by a small number of events. The notion of the “vital few” has its origins in 1906 in Italy, where economist Vilfredo Pareto observed that 80% of the wealth was controlled by 20% of the population. Pareto reportedly developed the principle after observing similar scenarios in everyday life, including the fact that 80% of the peas in his garden came from only 20% of the pea pods. Then came Joseph Juran, a quality management pioneer in the United States in the 1930s and ’40s. In citing the “Pareto Principle,” Juran postulated that 20% of product defects caused 80% of product problems. Read More

Jessie Livermore was one of the greatest traders of all time. He first began trading stocks nearly a hundred years ago, making and losing multi-million dollar fortunes several times over.  His life and trading methods are recounted in the 1923 book “Reminiscences of a Stock Operator,” by Edwin LeFerve. The book is considered a classic among traders and is still read to this day (the hardback retails for $187.95 on Amazon).  #-ad_banner-#Livermore began his career in what were called “bucket shops” — typically a warehouse or storefront where smaller speculators could make bets on the price movements of stocks (although… Read More

Jessie Livermore was one of the greatest traders of all time. He first began trading stocks nearly a hundred years ago, making and losing multi-million dollar fortunes several times over.  His life and trading methods are recounted in the 1923 book “Reminiscences of a Stock Operator,” by Edwin LeFerve. The book is considered a classic among traders and is still read to this day (the hardback retails for $187.95 on Amazon).  #-ad_banner-#Livermore began his career in what were called “bucket shops” — typically a warehouse or storefront where smaller speculators could make bets on the price movements of stocks (although actual shares were rarely bought or sold). Of course, this practice was highly risky, since corruption was rampant and the bucket shops allowed individuals to make bets on as little as 1% margin. But somehow, Livermore was able to make $1,000 at the age of 15 (a small fortune back then). Later in life, he moved to New York and began trading in more legitimate markets. Among his accomplishments: — He shorted Union Pacific Railroad before the 1906 San Francisco earthquake — Shorted the market before the Panic of 1907 — Made… Read More

The news out of the United Kingdom rocked global markets. In an historic referendum vote, citizens of the U.K. narrowly voted for a “Brexit” — a British exit from the European Union. Since joining the European Union in 1973, a fair number of Britons have been skeptical of the governing body. British attitudes toward European unity have been… complicated, to say the least. Winston Churchill advocated for “a kind of United States of Europe” during a speech in Zurich in 1946, while simultaneously setting the precedent for an arm’s length relationship with the continent throughout his career. Read More

The news out of the United Kingdom rocked global markets. In an historic referendum vote, citizens of the U.K. narrowly voted for a “Brexit” — a British exit from the European Union. Since joining the European Union in 1973, a fair number of Britons have been skeptical of the governing body. British attitudes toward European unity have been… complicated, to say the least. Winston Churchill advocated for “a kind of United States of Europe” during a speech in Zurich in 1946, while simultaneously setting the precedent for an arm’s length relationship with the continent throughout his career. #-ad_banner-#Now that the votes are cast, questions remain about what this will mean for trade, immigration, travel and a host of other issues. What is certain right now, however, is that the market is treating this development in a negative light. On Friday, the FTSE 100 (the main British stock index) closed down about 3.15%, while its currency (the pound) fell to levels not seen since 1985. Meanwhile, European exchanges fared even worse. The German DAX was down 6.8%, the French CAC 40 was down 8%… Even the Japanese Nikkei Index was down nearly… Read More

I recently spent Memorial Day in Las Vegas on the tail-end of a road trip through Nevada and Utah. And while I didn’t win big in Sin City, I’m happy to report that I did well enough to pay for a nice dinner that night with a little bit left to spare. (Hey, if Vegas doesn’t get you one way, they get you another.) #-ad_banner-# As I was caught up in the action, I was reminded of how similar gambling and investing. It’s often the things we focus on least that are the biggest markers of success in… Read More

I recently spent Memorial Day in Las Vegas on the tail-end of a road trip through Nevada and Utah. And while I didn’t win big in Sin City, I’m happy to report that I did well enough to pay for a nice dinner that night with a little bit left to spare. (Hey, if Vegas doesn’t get you one way, they get you another.) #-ad_banner-# As I was caught up in the action, I was reminded of how similar gambling and investing. It’s often the things we focus on least that are the biggest markers of success in either endeavor. Think about it… Just like in poker, for example, long-term success in investing is more about not losing than winning. Avoiding losing investments is perhaps even more important than finding big winners. And knowing when to sell is just as important as knowing what to buy. My colleague Jimmy Butts recently touched on this idea in a recent issue of his premium newsletter, Maximum Profit:         “Ask Warren Buffett what it takes to be a successful investor and he’ll likely tell you this: “Rule No. Read More