And just like that, the market forgot all about tariffs. #-ad_banner-#In one shaky four-day stretch in early June, the Dow surrendered nearly 800 points amid heightened trade war fears. Flash forward a few weeks, and the large-cap market barometer has recouped all those losses and then some — adding roughly 1,200 points since June 3. The bearish to bullish shift in investor sentiment coincides with dovish talk from the world’s central banks and a growing probability of monetary tightening by the end of summer.  Earlier last week, futures traders were pricing in a 55% chance that the Fed would lower… Read More

And just like that, the market forgot all about tariffs. #-ad_banner-#In one shaky four-day stretch in early June, the Dow surrendered nearly 800 points amid heightened trade war fears. Flash forward a few weeks, and the large-cap market barometer has recouped all those losses and then some — adding roughly 1,200 points since June 3. The bearish to bullish shift in investor sentiment coincides with dovish talk from the world’s central banks and a growing probability of monetary tightening by the end of summer.  Earlier last week, futures traders were pricing in a 55% chance that the Fed would lower rates by 50 basis points at its September meeting. The next most likely outcome (23%) was a quarter-point cut, followed by a 19% chance of a 75-basis point cut and a slim 3% probability that rates remain unchanged. While it wasn’t specifically stated (you can do the math), that implied a zero percent chance of a rate hike. The Fed didn’t make any moves at last week’s meeting, leaving short-term lending rates at 2.25% to 2.50%. But post-game comments from Fed chief Jerome Powell suggested that rate cuts could be coming sooner rather than later. Citing the cooler global economy… Read More

We have just passed the one-year anniversary of my initial recommendation of Hoegh LNG Partners (NYSE: HMLP) in my premium newsletter, High-Yield Investing. #-ad_banner-#Back then, the company was hauling in $35 million in quarterly revenues. Twelve months later, quarterly revenues now stand at $36 million. Some might call that lackluster. I call it remarkably consistent. When you offer a double-digit dividend yield, growth isn’t necessary — just stability.  Even with zero share-price appreciation, the 10% yield alone is better than the 8% or so the stock market returns on average annually. And while double-digit yields can sometimes be dangerous, this… Read More

We have just passed the one-year anniversary of my initial recommendation of Hoegh LNG Partners (NYSE: HMLP) in my premium newsletter, High-Yield Investing. #-ad_banner-#Back then, the company was hauling in $35 million in quarterly revenues. Twelve months later, quarterly revenues now stand at $36 million. Some might call that lackluster. I call it remarkably consistent. When you offer a double-digit dividend yield, growth isn’t necessary — just stability.  Even with zero share-price appreciation, the 10% yield alone is better than the 8% or so the stock market returns on average annually. And while double-digit yields can sometimes be dangerous, this is one that’s actually worth a further look… An Inside Look At Hoegh LNG As a reminder, Hoegh owns floating storage and regasification units (FSRUs). Basically, these are ships anchored off the coast that have been mounted with regasification equipment. In the simplest terms, they turn liquefied natural gas (LNG) back into a usable product, which is then pumped via pipeline to the shore where it can be distributed to utilities or other end users. (The U.S. Energy Information Administration has a good primer on LNG, which you can read here.)  So, when an LNG… Read More

More than usual, the markets have been very sensitive as to what the Federal Open Market Committee (FOMC) will do in terms of interest rates. Analysts and investors alike hang on every word and action that the FOMC makes.  Will they increase rates? And if so by how much? Or will economic data and market sensitivity cause them to once again cut rates? These are the questions at the top of investors’ minds.  We’ve enjoyed a decade of low interest rates, which has arguably provided a boost to the stock market as well as helped millions lock in record-low mortgage… Read More

More than usual, the markets have been very sensitive as to what the Federal Open Market Committee (FOMC) will do in terms of interest rates. Analysts and investors alike hang on every word and action that the FOMC makes.  Will they increase rates? And if so by how much? Or will economic data and market sensitivity cause them to once again cut rates? These are the questions at the top of investors’ minds.  We’ve enjoyed a decade of low interest rates, which has arguably provided a boost to the stock market as well as helped millions lock in record-low mortgage rates.  But it has come at a cost… —Recommended Link— SECRET: Add $8,760 Extra to Any Retirement Account ​Finally revealed! This “long lost” secret turns a quick 3-minute phone call into the opportunity to collect $8,760 checks. Every payment is backed by the full authority of the U.S. Government… and over $1.75 billion will be delivered to income-seeking Americans. But your action is required TODAY while the enrollment window is open. You must click here right now to get started. Interest earned in savings accounts, money market accounts, Certificates of Deposit (CDs),… Read More

We definitely experienced volatility last week. I had spotted a signal to expect volatility, and we met that target in just a week.  The S&P 500 gained more than 2% for the week. That’s a significant move, but looking ahead, it’s time to consider what will create the next big price trend in the stock market.  The weekly chart below shows why we will see a significant trend. This is the fourth time since January 2018 that the S&P 500 has challenged the 2,900 level.  A significant trend followed the previous three times we reached this level. In fact, prices… Read More

We definitely experienced volatility last week. I had spotted a signal to expect volatility, and we met that target in just a week.  The S&P 500 gained more than 2% for the week. That’s a significant move, but looking ahead, it’s time to consider what will create the next big price trend in the stock market.  The weekly chart below shows why we will see a significant trend. This is the fourth time since January 2018 that the S&P 500 has challenged the 2,900 level.  A significant trend followed the previous three times we reached this level. In fact, prices pulled back quickly after each of the previous attempts to break through 2,900. That could be important information when considering what could happen next.  When looking at a chart, it’s important to remember that someone bought and sold at each point of the chart. So, some investors bought at the highs in January 2018 and saw the stock market sell off almost immediately.  Let me explain why that’s important to remember.  Another Lesson The Army Taught Me About Trading As some of you may know, I served in the Army. During my time in the Middle East, I noticed… Read More