Whenever you short a stock, there’s always one huge risk: that your fellow short-sellers will get spooked, buy to cover their positions and unwittingly push the stock up. Indeed, that’s what appears to have happened in the days after I predicted a big pullback (and shorting opportunity) in… Read More

For a number of decades, it made little sense to invest in emerging markets. These markets would do very well when the U.S. stock market rose, and they would get crushed when it tanked. Who needs that… Read More

We’re inching ever closer to an official “market correction.” The S&P 500 is down almost 10% from its recent peak, which means we’ll soon hear that phrase bandied about in the financial media.  These pullbacks are painful but bring a… Read More

As the market moved steadily higher throughout the fourth quarter of 2011 and the first quarter of 2012, insider buying slowed to a crawl and eventually ground to a halt. That’s just how… Read More

Reckless actions will get you punished. That’s what JP Morgan’s (NYSE: JPM) CEO, Jamie Dimon, was surely thinking after he learned that a key employee at his firm had lost roughly $2 billion on an ill-conceived trading strategy. In fact, his firm’s losses from this debacle could easily reach twice or three times as much as that initial amount, causing Dimon more sleepless nights ahead. But was this misstep really worth $30 billion? That’s the stunning amount of market value that this venerable bank… Read More

Reckless actions will get you punished. That’s what JP Morgan’s (NYSE: JPM) CEO, Jamie Dimon, was surely thinking after he learned that a key employee at his firm had lost roughly $2 billion on an ill-conceived trading strategy. In fact, his firm’s losses from this debacle could easily reach twice or three times as much as that initial amount, causing Dimon more sleepless nights ahead. But was this misstep really worth $30 billion? That’s the stunning amount of market value that this venerable bank has lost in recent weeks since the trading scandal was announced. Shares have been tarred and feathered so badly that they now trade below tangible book value. Twin pressures That steep drop in shareholder value also likely stems from a pair of other factors. First, the trading losses make it more likely that the entire banking sector will be put in handcuffs when it comes to risky trading for the firms’ own accounts. The Volcker Rule, banking legislation which was likely to be… Read More

With all of the headwinds swirling around stocks today, many investors are seeking the safety of cash. It’s a wise move, but not for the reasons you may think. Cash is not just “safe,” but it is also firepower for the next major upward move in the stock market. Read More

Stocks are on a major losing streak. The S&P 500 has fallen for five straight sessions and has risen on only three occasions this month. The lift from a solid earnings season has passed, scary headlines from Europe are splashed across the front pages… Read More

Here at StreetAuthority, we often talk about “catalyst investing.” Simply put, it’s not enough to find stocks that are inexpensive — hundreds of stocks can bubble up on various value screens. This often leads to the question “Why now?” After all, will this stock… Read More

Investors looking at energy stocks may have a bit of whiplash these days. Oil prices appear fairly firm while natural gas prices still remain near multi-year lows. In other countries, natural gas prices are surging, as demand rises in places that have de-commissioned nuclear power plants, such as Japan and… Read More

It’s so important to learn from the nation’s top investors. You don’t need to tell that to the thousands that flock to Omaha, Nebraska once a year to glean fresh wisdom from Warren Buffett. Many others follow the actions of George Soros, Carl Icahn or others. These top investors have… Read More