David Sterman has worked as an investment analyst for nearly two decades. He started his Wall Street career in equity research at Smith Barney, culminating in a position as Senior Analyst covering European banks. While at Smith Barney, he learned of all the tricks used by Wall Street to steer the best advice to their top clients and their own trading desk. David has also served as Managing Editor at TheStreet.com and Director of Research at Individual Investor. In addition, David worked as Director of Research for Jesup & Lamont Securities. David has made numerous media appearances over the years, primarily on CNBC and Bloomberg TV, and has a master's degree in management from Georgia Tech. David Stermanon

Analyst Articles

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality… Read More

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality of increased gold production reminds us of the immutable laws of supply and demand. If the world needs more gold, producers will simply mine more. Of course, the next time we get a temporary inflation scare, you’ll hear lots of talk about gold again, as fearful investors seek bullion. What should you do? Ignore the crowd. If you really want to hedge against inflation, look to the types of… Read More

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality… Read More

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality of increased gold production reminds us of the immutable laws of supply and demand. If the world needs more gold, producers will simply mine more. Of course, the next time we get a temporary inflation scare, you’ll hear lots of talk about gold again, as fearful investors seek bullion. What should you do? Ignore the crowd. If you really want to hedge against inflation, look to the types of… Read More

There are many good reasons to look for stocks that the top hedge fund managers like. Activist managers such as Carl Icahn can shake a company up until shareholder value is unlocked. Warren Buffett‘s best ideas often have great long-term potential. But some fund managers can actually destroy value for other shareholders. During the past half decade, fund manager and Sears Holdings (Nasdaq: SHLD) CEO and Chairman Eddie Lampert… Read More

There are many good reasons to look for stocks that the top hedge fund managers like. Activist managers such as Carl Icahn can shake a company up until shareholder value is unlocked. Warren Buffett‘s best ideas often have great long-term potential. But some fund managers can actually destroy value for other shareholders. During the past half decade, fund manager and Sears Holdings (Nasdaq: SHLD) CEO and Chairman Eddie Lampert has taken millions of dollars out of his investment in the faltering retailer through a series of one-time payments to his investment firm, ESL Investments. And while Lampert was giving himself robust paydays, he’s virtually ignored the operational trends at Sears and Kmart, the company’s two major retail divisions.#-ad_banner-# Those stores have fared so badly that Standard & Poor’s kicked Sears out of its S&P 500 index last year, where Sears had been… Read More

When I write about micro-cap stocks (which typically have market values of less than $200 million), I always focus on several at once. This approach highlights the necessity of ensuring that any one of these speculative stocks doesn’t account for more than a sliver of a portfolio. Some micro-caps can fare quite well, while others sink like a stone. I was thinking about this basket approach to micro-caps recently while reviewing a column I wrote early last… Read More

When I write about micro-cap stocks (which typically have market values of less than $200 million), I always focus on several at once. This approach highlights the necessity of ensuring that any one of these speculative stocks doesn’t account for more than a sliver of a portfolio. Some micro-caps can fare quite well, while others sink like a stone. I was thinking about this basket approach to micro-caps recently while reviewing a column I wrote early last year. Since then, GSE Systems (NYSE: GVP) has been a dud, dropping 26% as the company’s focus on nuclear power-plant training services has fallen out of favor. But the other two picks in that column are faring quite well and appear to still have ample upside. Looking at the reasons why that’s the case can also point the way to the pillars of success in micro-cap investing. 1. Biolase Technology (Nasdaq:… Read More

During the past half decade, few industries have suffered as much as the for-profit education industry.#-ad_banner-# Congress took these companies to task when it became apparent that their students had poor graduation rates and many of those students were unable to find jobs and repay government-backed… Read More

After reading through hundreds of press releases in the just-completed earnings season, I’m not surprised that CEOs are quite excited about their company’s prospects. However, with every company putting a positive spin on its operations and outlook, it can be hard to separate the wheat from the chaff. One distinguishing factor: the executives and directors who back up their words with actual insider buying. Committing thousands of dollars to buy company stock is a huge… Read More

After reading through hundreds of press releases in the just-completed earnings season, I’m not surprised that CEOs are quite excited about their company’s prospects. However, with every company putting a positive spin on its operations and outlook, it can be hard to separate the wheat from the chaff. One distinguishing factor: the executives and directors who back up their words with actual insider buying. Committing thousands of dollars to buy company stock is a huge vote of confidence. Throughout the past winter, insider buying activity was relatively dormant as an ever-rising market led most insiders to think about cashing in options rather than buying fresh shares. Yet in the past month, we’ve seen a notable upturn in insider buying activity. Here are three stocks that have seen renewed interest from insiders. (Credit to InsiderInsights.com for data on insider activity.) 1. Read More