Growing up in the decidedly hardscrabble union town of Pittsburgh, Pennsylvania, becoming a millionaire was nothing but fantasy. Not only was there very little information on how to reach the lofty goal, but neither myself nor any of my friends actually knew a real millionaire. It was just something we read about in magazines or saw in movies — nearly everyone had the same economic status in our blue collar neighborhood.  My uncle and grandfather were small-time real estate investors, and they gave me my first exposure to investment markets. But the real turning point for me was being invited… Read More

Growing up in the decidedly hardscrabble union town of Pittsburgh, Pennsylvania, becoming a millionaire was nothing but fantasy. Not only was there very little information on how to reach the lofty goal, but neither myself nor any of my friends actually knew a real millionaire. It was just something we read about in magazines or saw in movies — nearly everyone had the same economic status in our blue collar neighborhood.  My uncle and grandfather were small-time real estate investors, and they gave me my first exposure to investment markets. But the real turning point for me was being invited to a Charles Givens seminar while in high school.  Charles Givens was one of the first traveling motivational speakers focused on how the average person could build wealth. I was impressed seeing him pull up in a Rolls Royce with his staff in tow. After the seminar, I was fortunate to chat with Mr. Givens. I had met an actual millionaire!  Fast-forward several decades and being a millionaire is commonplace. Today, with nearly 11 million millionaires in the United States, some pundits claim that being a millionaire is the new middle class.  #-ad_banner-#The Wall Street rally of the past year… Read More

Consumer and corporate borrowing has rebounded this year, and the economy looks to book its third consecutive quarter over 3% growth for the final three months of the year. That would have shares of financial institutions booming were it not for two factors working against the industry. Shares of banks have underperformed this year on a narrow net interest margin, the difference between long-term and short-term rates, and continued regulatory costs from post-crisis legislation. The SPDR S&P Bank ETF (NYSE: KBE) has returned just 3.3% this year versus a 15% increase in the broader S&P 500 index. Despite increases in… Read More

Consumer and corporate borrowing has rebounded this year, and the economy looks to book its third consecutive quarter over 3% growth for the final three months of the year. That would have shares of financial institutions booming were it not for two factors working against the industry. Shares of banks have underperformed this year on a narrow net interest margin, the difference between long-term and short-term rates, and continued regulatory costs from post-crisis legislation. The SPDR S&P Bank ETF (NYSE: KBE) has returned just 3.3% this year versus a 15% increase in the broader S&P 500 index. Despite increases in the short-term benchmark rate by the Federal Reserve and more on the way, higher rates on the short end of the yield curve haven’t translated to higher long-term rates. Subdued inflation and fears over long-term economic growth have kept the rate on the 10-year Treasury well under 3% all year. That means the net interest spread, the difference between the rate paid by banks on deposits and what they collect on longer-term loans, has held back profits. #-ad_banner-#The other factor holding banks back is high regulatory costs for compliance and capital requirements, especially for banks listed as systemically important financial… Read More

Elon Musk is perhaps one of the greatest marketers of our time. The optimistic showman, with his hand on the pulse of consumers’ desires, knows how to excite investors. He can dance around setbacks and keep most of us sold on his grandiose ideas that may or may not ever come to fruition.  It goes without saying that I have an immense amount of respect for the man. His work ethic and his innovations are unparalleled in modern society. But at the same time, investors can’t continue to ignore the very real problems plaguing Tesla (Nasdaq: TSLA) just because he’s… Read More

Elon Musk is perhaps one of the greatest marketers of our time. The optimistic showman, with his hand on the pulse of consumers’ desires, knows how to excite investors. He can dance around setbacks and keep most of us sold on his grandiose ideas that may or may not ever come to fruition.  It goes without saying that I have an immense amount of respect for the man. His work ethic and his innovations are unparalleled in modern society. But at the same time, investors can’t continue to ignore the very real problems plaguing Tesla (Nasdaq: TSLA) just because he’s the smartest guy in the room.  —Sponsored Link— Tech Breakthrough To Transform The Oil Sector After years of market domination, OPEC finds itself losing the oil war and a breakthrough tech is about to put U.S. oil companies in pole-position. Drillers, Oil Traders And Motorists are buzzing about this blockchain powered innovation. This is how U.S. becomes energy independent… Read the full report now. Tesla’s most recent earnings miss confirmed my doubts about the company’s growth. Weeks ago, while we were having a small debate about Tesla, my uncle explained to… Read More

“When the going gets weird, the weird turn pro.” – Hunter S. Thompson I know I’ve used this quote before, but it so applicable to so many situations, especially now considering the lofty state of equity markets. Markets do seem to be in weird place. Pundits are almost split down the middle as to whether the current bull run has any more steam left. Some argue that valuations are stretched thin while others continue to pound the table, goading investors to pile in. I’m splitting the difference. The S&P 500 trades at 19.4 times expected earnings. We’ve seen it much richer… Read More

“When the going gets weird, the weird turn pro.” – Hunter S. Thompson I know I’ve used this quote before, but it so applicable to so many situations, especially now considering the lofty state of equity markets. Markets do seem to be in weird place. Pundits are almost split down the middle as to whether the current bull run has any more steam left. Some argue that valuations are stretched thin while others continue to pound the table, goading investors to pile in. I’m splitting the difference. The S&P 500 trades at 19.4 times expected earnings. We’ve seen it much richer in the past. However, there are some visible cracks showing. #-ad_banner-#Some sectors, such as energy and telecom services, are negative for the year. But despite news to the contrary, there are bargains in the market. Previously, I highlighted a consumer staples stock that stood out in another lackluster sector.  One of the most consistently successful value investing strategies is the venerable Dogs of the Dow. Created in 1972, the year I started kindergarten, the remarkable beauty of the Dogs as an investment strategy is its simplicity: Buy the ten highest dividend yielders in the Dow Jones Industrial Average (DJIA).  Here is… Read More

Clues are emerging to what could be one of the biggest trends in 2018. The rate on the 10-year Treasury has jumped 15% since early September and is causing an investor exodus from one segment of the market. The selloff could get worse as rates rise further and a wave of debt threatens these companies’ already precarious financial health. In fact, as investors anxiously wait for tax reform, one proposal could actually cause taxes on this segment of the market to increase. It’s all lining up to be a harsh wake-up from years of debt-fueled growth and is certain to… Read More

Clues are emerging to what could be one of the biggest trends in 2018. The rate on the 10-year Treasury has jumped 15% since early September and is causing an investor exodus from one segment of the market. The selloff could get worse as rates rise further and a wave of debt threatens these companies’ already precarious financial health. In fact, as investors anxiously wait for tax reform, one proposal could actually cause taxes on this segment of the market to increase. It’s all lining up to be a harsh wake-up from years of debt-fueled growth and is certain to create winners and losers. #-ad_banner-#The Next Debt Crisis Threatens An Entire Segment Of The Market High-yield bonds saw 1% of their value wiped out in the first half of November. That may not sound like much, but it’s on pace for the worst month since January 2016.  Investor fears of rising rates and weak earnings for some sectors have caused an exodus out of highly leveraged companies. High-yield bonds in the telecom sector have lost 3.3% so far this month and investors pulled more than $2 billion from high-yield ETFs in just the second week… Read More