As we move into 2011, economists increasingly believe that the United States and Europe will start to see an economic rebound, joining China, Brazil, India and other emerging economies in a full-fledged global economic upturn. A closer look at recent price action in the crude oil markets underscores a risk that rising economic activity brings — and an opportunity for investors… Just as when oil prices moved below $40 a barrel when the economy hit the skids a few years ago, the price reflected a sense that demand for oil… Read More

As we move into 2011, economists increasingly believe that the United States and Europe will start to see an economic rebound, joining China, Brazil, India and other emerging economies in a full-fledged global economic upturn. A closer look at recent price action in the crude oil markets underscores a risk that rising economic activity brings — and an opportunity for investors… Just as when oil prices moved below $40 a barrel when the economy hit the skids a few years ago, the price reflected a sense that demand for oil would collapse in the face of an even deeper economic meltdown. But it also created some clear winners and losers. When it became apparent that no such cataclysm would emerge, oil prices rebounded back to the $50-75 range, reflecting a global economy that was lukewarm. That set the stage for a reversal of winners and losers as oil approaches $100 a barrel (more on that in a bit). Like the proverbial frog in the boiling pot of water, rising oil prices are already starting to impact the economy in various subtle ways. Read More

As part of your ongoing investment research, it pays to periodically check in with company insiders. When they are buying or selling a company’s stock, you’ll get a first-hand suggestion on whether shares are a bargain, or possibly ripe for a fall. Decisions on when to… Read More

Companies are doing everything in their power to make investors focus on the long-term. Monthly sales reports have been replaced by quarterly sales updates by many retailers, and quarterly forward guidance is increasingly being replaced by once-a-year outlooks that get incrementally adjusted throughout the year. That’s why this coming… Read More

You can’t blame a number of retailers for waving the white flag. Already battered by tight-fisted consumers throughout the year, they had to contend with a traffic-sapping massive East coast snowstorm as the year came to an end. The predictable result: same-store sales for many retailers were pretty lousy in December. The unpredictable reaction: investors seemed caught off-guard by the results, handing some stocks their biggest pounding in quite some time in Thursday trading. Wet Seal (Nasdaq: WTSLA) and Pacific Sunwear (Nasdaq: PSUN) shed more than 10% on Thursday, while Zumiez (Nasdaq: ZUMZ) and Gap Inc. (NYSE:… Read More

You can’t blame a number of retailers for waving the white flag. Already battered by tight-fisted consumers throughout the year, they had to contend with a traffic-sapping massive East coast snowstorm as the year came to an end. The predictable result: same-store sales for many retailers were pretty lousy in December. The unpredictable reaction: investors seemed caught off-guard by the results, handing some stocks their biggest pounding in quite some time in Thursday trading. Wet Seal (Nasdaq: WTSLA) and Pacific Sunwear (Nasdaq: PSUN) shed more than 10% on Thursday, while Zumiez (Nasdaq: ZUMZ) and Gap Inc. (NYSE: GPS) fell by almost as much. Yet for investors willing to take a broader view than monthly sales trends, these sell-offs have created a compelling entry point for some of these stocks. As a quick recap of an article I wrote six months ago, many retailers have taken advantage of the downturn to tighten up their operations by reducing inventories, throttling back risky growth plans and cutting any fat from overhead. Some retail stocks are already benefiting from this trend, especially the ones that cater to upscale shoppers. But many teen-focused retailers have yet to mark… Read More

A growing chorus of investors has started to talk of a China bubble. These folks think the Chinese government will be unable to glide the economy onto a slower plane of growth without unexpected stumbles. And they expect Chinese stocks to move sharply lower if this rising giant loses… Read More

With each passing year, investors need to change up their playbook. What worked in the prior year may not work this time around [See: “5 Pitfalls for Investors in 2011”] It’s pretty easy to find out what didn’t work in the past year. I ran a screen… Read More

When it comes to microprocessors, the discussion often begins and ends with Intel (Nasdaq: INTC), the $115 billion colossus (in market value) that has dominated the industry since it began. Following in Intel’s wake is lowly Advanced Micro Devices (NYSE: AMD), which has had innumerable brushes with death as… Read More

While you were away celebrating the holidays, the economy sprang to life. I can’t blame you for not noticing. After all, the holidays are supposed to be a festive time. And the U.S. economy has been stuck in the mud for an extended period. Read More

What worked for investors in 2010 won’t necessarily work in 2011. And in light of StreetAuthority’s recent look at “8 Valuable Lessons We Learned About Investing” in 2010, I decided to take a look at how I would apply some of the lessons I’ve learned over the years to 2011. Here are five things you should look out for this year… 1. Look out for portfolio creep One of the challenges of a rising market is to know when to take profits. Instead, many of us hold on to our winners and bring… Read More

What worked for investors in 2010 won’t necessarily work in 2011. And in light of StreetAuthority’s recent look at “8 Valuable Lessons We Learned About Investing” in 2010, I decided to take a look at how I would apply some of the lessons I’ve learned over the years to 2011. Here are five things you should look out for this year… 1. Look out for portfolio creep One of the challenges of a rising market is to know when to take profits. Instead, many of us hold on to our winners and bring in fresh ammo to buy yet more stocks. Before you know it, you’re holding 15 or 20 stocks. (I once counseled an investor that asked me to look at his statement — and I told him right away that the 40 stocks he owned were far too many.) With the ever-rising market of the last two years, some investors likely have been buying a lot more than they have been selling. Yet you really need to own just six to 10 stocks that have a truly diversified portfolio. So if you’re above that figure, you should spend… Read More

Ironically, some of the most highly-valued stocks in the Dow appear to hold some of the highest risk. That may come as a surprise when you consider that the broader markets (as measured by the S&P 500) have risen more than 80% from their early 2009 lows. Then again, if… Read More