There are many investing maxims, but my favorite one will always be “love stocks when they’re hated.” That usually refers to bear markets being great buying opportunities, as we saw in early 2009 when the market finally began to turn around. Yet, the… Read More

The unfolding events in Japan are distressing and saddening. We all hope that the social, environmental and economic impact of the recent earthquake will prove to be not as bad as is currently feared. In times like this, one can become a bit squeamish talking about investing. The sheer notion… Read More

As impressive as the stock market looked when it is was rising ever higher in 2009 and 2010, recent trading action has been even more impressive. Sure, the S&P 500 has gone nowhere for the past six weeks, but it has hung in there despite a series of shocks that… Read More

When oil prices surged through 2007 and into 2008, many airlines ran for the hills, taking many planes out of service, cancelling orders for new planes and gearing up to conserve cash in case oil prices failed to fall back down. Boeing Co. (NYSE: BA), the world’s largest aircraft manufacturer,… Read More

Virtually every blue-chip company has been focusing on a key issue for the past two years: Costs. Trimming expenses wherever possible was an absolute necessity during the scariest phases of the economic downturn. Those cost cuts, in turn, powered a remarkable expansion in profit margins and enabled many companies… Read More

With each passing week, there is a little more progress in Washington as a bi-partisan group of legislators seeks to find a middle ground solution to our fiscal morass. Just this week, Senator Chuck Schumer (D-NY) and Peter Peterson, a retired billionaire who is spending a chunk of his fortune… Read More

The era of very low inflation seems to be coming to an end. Food prices started to perk up in 2010, oil prices are on the rise now and, before long, a wide range of companies may need to push up their prices to account for their own rising costs. This can end in one of two ways: with higher — but still manageable — inflation, or it could trigger a vicious cycle of rising inflation expectations that create even greater inflationary pressures. It’s not just about food, oil… Read More

The era of very low inflation seems to be coming to an end. Food prices started to perk up in 2010, oil prices are on the rise now and, before long, a wide range of companies may need to push up their prices to account for their own rising costs. This can end in one of two ways: with higher — but still manageable — inflation, or it could trigger a vicious cycle of rising inflation expectations that create even greater inflationary pressures. It’s not just about food, oil and other raw materials, either. There’s a also a macro-economic concern: if the United States starts to struggle to find buyers for its debt, it will need to offer far higher bond yields, the dollar would come under pressure and imports into the U.S. would be subject to major inflation pressures. Right now, this doomsday scenario is no sure thing. And it would take several years of pressure to really put inflation on the boil. But you need to start thinking about it now, gradually adjusting your investment exposure as any… Read More

Judging by the number of companies that have lined up to pull off an initial public offering (IPO) in coming weeks and months, we may be looking at a banner year. If the performance of IPOs that made their debut since the year began is any guide, investor interest is likely to be quite strong. That’s because virtually every company that has come public in 2011 is already trading up (except for Netherlands-based Tornier (Nasdaq: TRNX) which is off just 2%). In fact, the biggest… Read More

Judging by the number of companies that have lined up to pull off an initial public offering (IPO) in coming weeks and months, we may be looking at a banner year. If the performance of IPOs that made their debut since the year began is any guide, investor interest is likely to be quite strong. That’s because virtually every company that has come public in 2011 is already trading up (except for Netherlands-based Tornier (Nasdaq: TRNX) which is off just 2%). In fact, the biggest IPO of the year has just gone public. Hospital chain HCA (NYSE: HCA), which is going public for the third time, sold $3.79 billion worth of stock today. The fact that enough investors were corralled for the deal is a sure sign of investor appetite for new issues. [My colleague Andy Obermueller profiled HCA just last week. Read his article here.] It always pays to look over the list of recent IPOs. First, you may find companies that have only moved up slowly since their debut, even as analysts are… Read More

Careful readers of my articles will note a clear trend: I always want to buy the best companies, but I want them at bargain prices. That means watching and waiting and identifying positive potential catalysts when everyone else is running away. And right now, I can’t think of any $100… Read More

Throughout the past few years, I’ve been focusing on the remarkable turnaround at Ford Motor Co. (NYSE: F). Management’s rejuvenation efforts will be talked about in business schools for decades to come. Yet, as shares marched from below $2 in early 2009… Read More