Back when I was a rookie in the investment biz, the internet bubble was in full inflation mode. There were scores of terrible ideas; pets.com, for one. But there were also a few ideas that would change the world and how we communicate. #-ad_banner-#The area of the internet buildout I was most interested in at the time was what some observers referred to as the “backbone,” which, as it turned out, was just another term for “network”. But it seemed like this was the place to be, much as steel and ancillary services were where the real money was made… Read More

Back when I was a rookie in the investment biz, the internet bubble was in full inflation mode. There were scores of terrible ideas; pets.com, for one. But there were also a few ideas that would change the world and how we communicate. #-ad_banner-#The area of the internet buildout I was most interested in at the time was what some observers referred to as the “backbone,” which, as it turned out, was just another term for “network”. But it seemed like this was the place to be, much as steel and ancillary services were where the real money was made during the American railroad boom of the mid-nineteenth century. Companies at the top of the backbone buildout food chain included Cisco Systems (Nasdaq: CSCO), the scandalous and now-defunct Worldcom, Nokia (NYSE: NOK), Ericsson (Nasdaq: ERIC), and old-tech-turned-new-tech Corning (NYSE: GLW). I’ve owned, traded, and written about Corning in the past. It’s time to have another look. Once commanding triple-digit valuations during the mania of the late 90s Tech Bubble, GLW traded in a normal range until the return of volatility earlier this year. An unforgiving reckoning shaved 24% off the stock’s price as tech names across the board… Read More

There’s a long list of headwinds facing the stock market. They include everything from rising interest rates and oil prices to Donald Trump’s Twitter account. But the most important question facing investors right now is whether these headwinds are hazardous to investor portfolios. #-ad_banner-#So, let’s look at some of the most important headwinds facing the stock market. Specifically, which of them pose the greatest threat to the market and which are mostly no cause for alarm. Interest Rates The 10-year Treasury hit the 3% mark last Tuesday. It’s the first time since 2014 the 10-year has hit this level. Read More

There’s a long list of headwinds facing the stock market. They include everything from rising interest rates and oil prices to Donald Trump’s Twitter account. But the most important question facing investors right now is whether these headwinds are hazardous to investor portfolios. #-ad_banner-#So, let’s look at some of the most important headwinds facing the stock market. Specifically, which of them pose the greatest threat to the market and which are mostly no cause for alarm. Interest Rates The 10-year Treasury hit the 3% mark last Tuesday. It’s the first time since 2014 the 10-year has hit this level. Of course, higher rates means increased borrowing costs are on tap for American consumers and corporations alike. Now, most analysts believe the 10-year yield above 3% puts the bull market run in jeopardy. And while there is data to indicate rising rates do materially impact stock market returns, it is more complicated than that. You see, investors price a company’s stock as the value of all its future cash flows discounted to today. If interest rates go up, those future cash flows are worth materially less today. As such, the market value of stock must fall to compensate for the… Read More

This stock’s low price isn’t going to last forever — it’s time to get in while the getting’s good. —Sponsored Link— Motley Fool Issues Rare Triple-Buy Alert This three-time recommendation from the Motley Fool looks a lot like Berkshire in 1992. Click here to learn more. One of the main goals of my premium newsletter High-Yield Investing is stability. I like industries that don’t go through unpredictable hot and cold cycles. Student Transportation (NYSE: STB) is a textbook example. Millions of kids must travel to and from school each day, rain… Read More

This stock’s low price isn’t going to last forever — it’s time to get in while the getting’s good. —Sponsored Link— Motley Fool Issues Rare Triple-Buy Alert This three-time recommendation from the Motley Fool looks a lot like Berkshire in 1992. Click here to learn more. One of the main goals of my premium newsletter High-Yield Investing is stability. I like industries that don’t go through unpredictable hot and cold cycles. Student Transportation (NYSE: STB) is a textbook example. Millions of kids must travel to and from school each day, rain or shine. With a national fleet of school buses and a stack of contracts with various school districts, the company generates consistent, recurring income to share with its stockholders. That, along with its current yield of 5.9%, is why STB remains one of my readers’ favorite stocks. #-ad_banner-#My next recommendation enjoys similar stability thanks to another fact of life — babies. In the unpredictable financial world, there are few things as guaranteed as birth rates. There were approximately 4 million births in the U.S. last year, 4 million give or take in 2016, 4 million in 2015, 4 million in… Read More

Cryptocurrency bears have had a field day since the price plunge. Every social media platform and even mainstream news services have been overrun with negative commentary as cryptocurrencies gave back 50% or more of their gains over the last few months. #-ad_banner-#Even the mighty bitcoin nosedived from nearly $20,000 per coin to around $6,300 per coin in just a few weeks.  During the price crash, even avid crypto bulls started to question the wisdom of holding onto newly their minted wealth.   What’s Going On? Being such a young market, there is genuinely no history to determine what is… Read More

Cryptocurrency bears have had a field day since the price plunge. Every social media platform and even mainstream news services have been overrun with negative commentary as cryptocurrencies gave back 50% or more of their gains over the last few months. #-ad_banner-#Even the mighty bitcoin nosedived from nearly $20,000 per coin to around $6,300 per coin in just a few weeks.  During the price crash, even avid crypto bulls started to question the wisdom of holding onto newly their minted wealth.   What’s Going On? Being such a young market, there is genuinely no history to determine what is normal and what is abnormal price behavior. One thing is for sure:  volatility is the nature of the beast. The millions of new traders who entered the market during the massive uptrend loved the volatility when it was making 12-year-olds millionaires in a matter of months. However, once the volatility turned the tables on the bullish masses, all the noobs panicked, declaring that the bubble had burst. Fueled by the sensation-seeking media machines, the panic selling resulted in downside volatility soaring and prices plummeting. At the same time, those who understand how markets really work waited patiently for the ideal… Read More

Market volatility has increased, and that is likely to be a recurring theme in the market for at least the next few weeks. Actually, I believe volatility will remain elevated for some time. That’s because the current level of volatility isn’t unsustainable… —Sponsored Link— Startup Founder Predicts What’s Next For America He’s invested in 1,000 companies and set stock market records. Today, he begins a controversial project that every American investor should see. Click here to read more. In fact, it’s not even really that high. It’s simply higher than it… Read More

Market volatility has increased, and that is likely to be a recurring theme in the market for at least the next few weeks. Actually, I believe volatility will remain elevated for some time. That’s because the current level of volatility isn’t unsustainable… —Sponsored Link— Startup Founder Predicts What’s Next For America He’s invested in 1,000 companies and set stock market records. Today, he begins a controversial project that every American investor should see. Click here to read more. In fact, it’s not even really that high. It’s simply higher than it was in the recent past. We enjoyed low volatility throughout 2017, so after a year of such calm waters, a little market movement is normal. In fact, it’s the recent calm we experienced throughout 2017 that was abnormal. #-ad_banner-#While volatility can coincide with price declines, as it has in the past two months, volatility can also create trading opportunities. The High-Yield Market You Can’t Ignore Recent volatility has created an opportunity in an entire sector — Master Limited Partnerships (MLPs). If you’re not familiar with MLPs, don’t worry! They’re securities that trade just like stocks, but they have a… Read More

There are many investment strategies available for investors to find actionable stocks. And as you might expect, some are better than others. But there are two strategies that vie for the title of best strategy. And while the winner is undisputed, the debate still sparks strong opinion between investors and academics. On the one hand, we have growth investing. Growth investing is a strategy whereby an investor seeks out companies with greater potential for capital appreciation. These companies rarely pay dividends. Instead, every dollar of profit goes back into the company in an attempt to generate even more profits. #-ad_banner-#Paradoxically,… Read More

There are many investment strategies available for investors to find actionable stocks. And as you might expect, some are better than others. But there are two strategies that vie for the title of best strategy. And while the winner is undisputed, the debate still sparks strong opinion between investors and academics. On the one hand, we have growth investing. Growth investing is a strategy whereby an investor seeks out companies with greater potential for capital appreciation. These companies rarely pay dividends. Instead, every dollar of profit goes back into the company in an attempt to generate even more profits. #-ad_banner-#Paradoxically, growth stocks outperform most other strategies when the underlying economy is struggling. This is because during times of economic stagnation, interest rates are usually quite low — and growth companies need access to cheap capital. This explains why growth stocks have outperformed other strategies since the Great Recession. On the other hand, value investors seek to find actionable stocks that are trading at a discount to their intrinsic value. These companies usually have mature business models looking to maintain strong pricing power and modest growth. And they typically pay dividends to reward shareholders. Interestingly, value stocks outperform other strategies when… Read More

Let me start by offering my deepest condolences to the family of Jennifer Riordan, who was fatally injured during last Tuesday’s in-flight engine breakup on Southwest Flight 1380. A faulty blade on one of the plane’s CFM56 turbofan engines snapped off, causing the engine to fail and sending debris flying toward a window. —Sponsored Link— Traders Daily Lets You ‘Pick The Brain’ Of One Of America’s Foremost Trading Pros Each daily issue delivers all this to your email: — Exciting trading tips on high potential stocks, options and ETFs… Read More

Let me start by offering my deepest condolences to the family of Jennifer Riordan, who was fatally injured during last Tuesday’s in-flight engine breakup on Southwest Flight 1380. A faulty blade on one of the plane’s CFM56 turbofan engines snapped off, causing the engine to fail and sending debris flying toward a window. —Sponsored Link— Traders Daily Lets You ‘Pick The Brain’ Of One Of America’s Foremost Trading Pros Each daily issue delivers all this to your email: — Exciting trading tips on high potential stocks, options and ETFs — Precise and revealing, easy-to-follow charts — Market insights that keep you current and point you to additional opportunities — Exact trade set-ups with entry and exit points — Go long, go short and when to hold strategies — Plus much more You also gain instant access to the complete Traders Daily track record that’s already produced an average gain of 38% per trade. Sign up for your FREE, no-obligation subscription now! Captain Tammie Jo Shults also deserves recognition for executing a perfect emergency landing and remaining calm, cool and collected… Read More

Buying beat down stocks is a time-honored way to earn significant returns in the stock market. However, the question is always the same: Which stocks are worth buying and which aren’t? #-ad_banner-#Here are five of the most prominent losing stocks of 2018, along with my thoughts on which ones to buy and which to avoid or short. 1. L Brands (NYSE: LB) This female-focused retailer is leading the retail apocalypse. Shares have been crushed this year by plunging over 40% in the last four months.  Already suffering from the overall retail malaise, L Brands exasperated the downside by issuing… Read More

Buying beat down stocks is a time-honored way to earn significant returns in the stock market. However, the question is always the same: Which stocks are worth buying and which aren’t? #-ad_banner-#Here are five of the most prominent losing stocks of 2018, along with my thoughts on which ones to buy and which to avoid or short. 1. L Brands (NYSE: LB) This female-focused retailer is leading the retail apocalypse. Shares have been crushed this year by plunging over 40% in the last four months.  Already suffering from the overall retail malaise, L Brands exasperated the downside by issuing weak guidance at the end of 2017. Combined with analyst downgrades, the stock only collapsed under the pressure.   However, it appears that the worst is over for the $10 billion market cap company. Here’s why: Best known via its consumer-facing brand stores Victoria’s Secret, PINK, Bath & Body Works, La Senza and Henri Bendel, the company operates 3,067 specialty stores in the United States, Canada, the United Kingdom and Greater China, and its brands are sold in more than 800 additional franchised locations worldwide.   Boasting nearly $13 billion in annual revenue, bullish signals are starting to emerge. In… Read More