I have a friend named Tom who was fortunate enough to obtain a great-paying job out of college. He worked for a few years, saved some money with the employer’s retirement plan and slowly started climbing the corporate ladder. Tom lived in a one-bedroom… Read More

I sheepishly raised my hand to ask the real estate guru a simple question during a “no money down”-type investment seminar in Florida back in the 1990s. “What happens when real estate prices stop appreciating and banks refuse to lend to support your investments?” The guru literally jumped backward, visibly disturbed someone would even think in such a way. “Impossible!” he exclaimed. “That… Read More

I sheepishly raised my hand to ask the real estate guru a simple question during a “no money down”-type investment seminar in Florida back in the 1990s. “What happens when real estate prices stop appreciating and banks refuse to lend to support your investments?” The guru literally jumped backward, visibly disturbed someone would even think in such a way. “Impossible!” he exclaimed. “That will never happen!” Well, the guru couldn’t have been more wrong. The overheated real estate market collapsed in 2008, bringing down the house-of-cards mortgage market along with it. The largest casualty was the quasi-governmental mortgage giant Fannie Mae (OTC: FNMA).#-ad_banner-# The U.S. government had to take the once-thriving entity into conservatorship for its very survival. This allowed Fannie Mae to use Treasury funds to support… Read More

The land of the rising sun’s economic fortunes are turning around. Prime Minister Shinzo Abe’s aggressive monetary policies, known as “Abenomics,” are starting to work their magic on the economy, creating an opportunity for forward-thinking stock investors.#-ad_banner-# First-quarter results indicate Japan’s gross domestic product grew 3.5%, sparking hopes that a recovery is underway. Exports grew 3.8%, driven by strong auto sales and the weaker yen, which has fallen 20% against the U.S. dollar since… Read More

The land of the rising sun’s economic fortunes are turning around. Prime Minister Shinzo Abe’s aggressive monetary policies, known as “Abenomics,” are starting to work their magic on the economy, creating an opportunity for forward-thinking stock investors.#-ad_banner-# First-quarter results indicate Japan’s gross domestic product grew 3.5%, sparking hopes that a recovery is underway. Exports grew 3.8%, driven by strong auto sales and the weaker yen, which has fallen 20% against the U.S. dollar since November. Abe’s policy of weakening the yen, major fiscal spending and generating 2% inflation by 2014 has sent the Japanese stock markets soaring higher. The Nikkei has jumped 46% since Abe took office. Leading Japanese economists are projecting strong growth for the next three years thanks to Abe’s policies. I think these changes are strong signals for investors to look for opportunity within Japan. My eyes are on this pair of leading Japanese companies. Canon (NYSE: CAJ) Boasting a… Read More

We have all experienced the guy at the party who is always talking about his stock-picking skills. He will brag to anyone who will listen how he bought one stock or another near the lows, making a killing. I call this type of investor a “hot-stock chaser.” Hot-stock chasers are always looking for the next big thing in the market. They jump aboard whatever is moving or whatever is supposed to be the next… Read More

We have all experienced the guy at the party who is always talking about his stock-picking skills. He will brag to anyone who will listen how he bought one stock or another near the lows, making a killing. I call this type of investor a “hot-stock chaser.” Hot-stock chasers are always looking for the next big thing in the market. They jump aboard whatever is moving or whatever is supposed to be the next big thing. Jim Cramer is their hero, and their TV is always tuned to CNBC for the next sizzling tip. Jumping from stock to stock in a manic effort not to miss the stock of the day, week or month, hot-stock chasers are never satisfied.#-ad_banner-# When you first meet a hot-stock chaser, all you will hear about are his winning investments. Dig a little deeper, and you may discover that the hot-stock chaser also has a long history of money-losing investments. This is due to the tendency of the professional… Read More

These are truly days of wine and roses for stock market investors.#-ad_banner-# After being knocked down in the dot-com bubble of the late 1990s and again during the financial crisis of 2008, long-term investors are being rewarded for their persistence and dedication as stocks surge higher, breaking record after record. In fact, this bull market turned 4 years old in March and is showing no signs of letting up. Historically, the average bull market… Read More

These are truly days of wine and roses for stock market investors.#-ad_banner-# After being knocked down in the dot-com bubble of the late 1990s and again during the financial crisis of 2008, long-term investors are being rewarded for their persistence and dedication as stocks surge higher, breaking record after record. In fact, this bull market turned 4 years old in March and is showing no signs of letting up. Historically, the average bull market has lasted 4 1/2 years. In and of itself, this means little; for instance, the 1990s bull market lasted nearly seven years without a major correction. But according to my research, there are three distinct signs that make me think this bull market may be ending soon. Here’s what you need to know. 1. Irrational Exuberance This term is best known for its use by former Federal Reserve Chairman Alan Greenspan during… Read More

Many people have a false impression about the wealthy.#-ad_banner-# It’s often believed that the rich are somehow different than the rest of us. The media places them on a pedestal as fortunate people who don’t have any worries and spend their days in a fantasy world of luxury and pampering. But nothing could be further from the truth. Often, the greater the wealth, the larger the problems, worries and stress levels. The only thing that is different is the scale of the… Read More

Many people have a false impression about the wealthy.#-ad_banner-# It’s often believed that the rich are somehow different than the rest of us. The media places them on a pedestal as fortunate people who don’t have any worries and spend their days in a fantasy world of luxury and pampering. But nothing could be further from the truth. Often, the greater the wealth, the larger the problems, worries and stress levels. The only thing that is different is the scale of the issues; otherwise the rich are the same as everyone else. So just what is different about those with self-made wealth and those without? This subject fascinates me, so I decided to discover what characteristics and habits are common factors among the wealthy. Here are seven secrets of self-made wealth. 1. The Ability To Delay Gratification This is truly a key to wealth. The wealthy are able to concentrate on the future along with their everyday tasks. The ability to understand how actions today will affect the future… Read More

In his book “Telecosm,” author George Gilder called this financial titan “the key source of organizational changes that have impelled economic growth over the last 20 years.” He earned more than a billion dollars over a four-year period as an employee of Drexel Burnham Lambert in the late 1980s — at the time, the record for employee compensation in the United States.#-ad_banner-# His success was attributed to an incredible trading record of only four losing months out of 17 years — as well as the rise in public awareness of a financial product popularly known as junk bonds. Although like… Read More

In his book “Telecosm,” author George Gilder called this financial titan “the key source of organizational changes that have impelled economic growth over the last 20 years.” He earned more than a billion dollars over a four-year period as an employee of Drexel Burnham Lambert in the late 1980s — at the time, the record for employee compensation in the United States.#-ad_banner-# His success was attributed to an incredible trading record of only four losing months out of 17 years — as well as the rise in public awareness of a financial product popularly known as junk bonds. Although like most public figures he is not without his critics, over the years this financier has also been praised by Fortune magazine and other media outlets for his decades-long work as a philanthropist and innovator in medical research. If you haven’t already guessed it, I am talking about Michael Milken. Milken is credited with helping expand the market for junk bonds, which have transformed the way companies raise capital. Junk bonds are high-yielding bonds that are below investment grade, which means they have a higher risk of default than traditional investment-grade bonds. Therefore, junk bonds need to pay out a higher… Read More

Many investors are surprised to learn that a large percentage of the stock market gains over the past several decades is due to dividends. While the United States is a hotbed of stocks offering substantial dividend yield, international stocks can provide similar results. Although I would never suggest a portfolio made up of strictly of non-U.S. exchange-traded funds (ETFs), exposure to the international market makes good sense for diversification purposes. These under-the-radar ETFs have strong potential for growth as well as produce a respectable dividend yield while allowing for geographic diversification. DB X-trackers MSCI EAFE Hedged Equity Fund (NYSE: DBEF)… Read More

Many investors are surprised to learn that a large percentage of the stock market gains over the past several decades is due to dividends. While the United States is a hotbed of stocks offering substantial dividend yield, international stocks can provide similar results. Although I would never suggest a portfolio made up of strictly of non-U.S. exchange-traded funds (ETFs), exposure to the international market makes good sense for diversification purposes. These under-the-radar ETFs have strong potential for growth as well as produce a respectable dividend yield while allowing for geographic diversification. DB X-trackers MSCI EAFE Hedged Equity Fund (NYSE: DBEF) Hedged currency ETFs have earned a place in the spotlight this year. While the Federal Reserve has shown its appetite for aggressive easing measures, countries like Australia, New Zealand and a few emerging markets refuse to play along. This difference in strategy results in currency volatility.#-ad_banner-# Without going into unnecessary detail, suffice it to say that this volatility has created a demand for hedged currency ETFs. My favorite is the tiny DB X-trackers MSCI EAFE Hedged Equity Fund. With an average daily volume of about 12,000 shares, its relatively small size has kept it under the radar of many… Read More

I’ll never forget attending my first investing seminar with my uncle and grandfather back in the late 1970s. It was hosted by Charles Givens, who wrote the book “Wealth Without Risk.” I was about 15 at the time… Read More

As you probably know, we are in the midst of one of the greatest bull markets of all time. Fueled by an unfettered fiscal-easing policy with central-bank assurances that pro-growth intervention will continue until the economy is back… Read More