Record sales since the recession are starting to weigh on the automotive industry, signaling that the group may be entering a deep cyclical crisis. Prices on used cars and new trade-ins are plunging and new car sales are down nearly 8% this year. It’s a price the industry is paying for its runaway success over last eight years. After jumping post-recession on “clash for clunkers” and low interest rates, the First Trust Nasdaq Global Auto ETF (Nasdaq: CARZ) is up just 7.6% over the last two years versus a gain of 26% in the S&P 500. #-ad_banner-#And the pain may… Read More

Record sales since the recession are starting to weigh on the automotive industry, signaling that the group may be entering a deep cyclical crisis. Prices on used cars and new trade-ins are plunging and new car sales are down nearly 8% this year. It’s a price the industry is paying for its runaway success over last eight years. After jumping post-recession on “clash for clunkers” and low interest rates, the First Trust Nasdaq Global Auto ETF (Nasdaq: CARZ) is up just 7.6% over the last two years versus a gain of 26% in the S&P 500. #-ad_banner-#And the pain may just be getting started as a record number of auto leases signed over the last several years expire, further depressing prices for new and used cars alike. It could be an industry drought like we haven’t seen since the early 80s, when back-to-back economic recessions and foreign competition nearly destroyed U.S. carmakers. There will be one segment of the market that could survive, and even thrive, in the evolving scenario. In fact, this segment may be about to book a revenue bonanza as the new cars sold over the last few years come back to the shop for repairs. It’s… Read More

28 years ago, everyone was talking about how great the Japanese economy was performing. Its stock market was hitting all-time high after all-time high, and investor money was flowing freely into the island nation.  Then, the market crashed.  #-ad_banner-#Capital fled like roaches running from the light. And while things have improved significantly since these dark days, the Nikkei remains the lowest valued index in all the major world markets. Investors remain afraid to expose themselves to Japanese equities.  It’s within this value-depressed environment that the greatest opportunities lie. In fact, a strong argument can be made that Japan’s expanding economy… Read More

28 years ago, everyone was talking about how great the Japanese economy was performing. Its stock market was hitting all-time high after all-time high, and investor money was flowing freely into the island nation.  Then, the market crashed.  #-ad_banner-#Capital fled like roaches running from the light. And while things have improved significantly since these dark days, the Nikkei remains the lowest valued index in all the major world markets. Investors remain afraid to expose themselves to Japanese equities.  It’s within this value-depressed environment that the greatest opportunities lie. In fact, a strong argument can be made that Japan’s expanding economy is about to boom. The smart money is already positioning itself to capture long-term profits.  Here’s why now is the best time to invest in Japan. 3 Forces Lining Up Behind Japanese Equities 1. The Weak Yen A powerful central bank program of negative interest rates has returned the Japanese economy to a growth path. Low to negative interest rates have led to a weak currency, which promotes exports and works to lift the stock market. The Financial Times reported that net exports added a full percentage point to Japan’s annualized growth in the first quarter of 2017. Just… Read More

In July, on my instruction, a few thousand traders walked away with thousands of dollars in cash.  I’m not saying that to brag or boast — I wasn’t brought up that way.  I’m telling you because I want to help ordinary investors and retirees everywhere.  With today’s climate of economic uncertainty and global unrest, we need the best tools available to ensure a high, sustainable income… no matter what happens on Capitol Hill, to the economy, or to the American dollar. —Sponsored Link— My #1 Rule: Don’t Buy Options Most options traders place high-risk trades,… Read More

In July, on my instruction, a few thousand traders walked away with thousands of dollars in cash.  I’m not saying that to brag or boast — I wasn’t brought up that way.  I’m telling you because I want to help ordinary investors and retirees everywhere.  With today’s climate of economic uncertainty and global unrest, we need the best tools available to ensure a high, sustainable income… no matter what happens on Capitol Hill, to the economy, or to the American dollar. —Sponsored Link— My #1 Rule: Don’t Buy Options Most options traders place high-risk trades, hoping for a big payout. But they lose… a LOT! That’s why Jim Fink flips options trading on its head, allowing him to make money more than 85% of the time. For a brief window, he’s offering his personal strategy guide to readers which could unlock $67,548 in extra income for you in the next 12 months. Get your copy now by clicking here. That’s why I use a put selling strategy that targets the lowest-risk opportunities to make the highest gains possible.  Selling puts is how I generate an incredible supplemental income, often reaching into… Read More

U.S. equity markets have had a good year. The prices of the indices themselves sit at all-time highs while year-to-date returns have given investors reason to celebrate. The Dow Jones Industrial Average has gained 10.5%, the S&P 500 better than 9% and the tech-heavy Nasdaq is up nearly 17%. However, unless you were smart enough to take the passive index-following route or stick with the much hyped FAANG (Facebook, Apple, Amazon, Netflix, Google) names, you may be among the frustrated. In previous articles, I’ve called out some of those frustrated investors moaning about the lack of quality bargains in stocks. Again,… Read More

U.S. equity markets have had a good year. The prices of the indices themselves sit at all-time highs while year-to-date returns have given investors reason to celebrate. The Dow Jones Industrial Average has gained 10.5%, the S&P 500 better than 9% and the tech-heavy Nasdaq is up nearly 17%. However, unless you were smart enough to take the passive index-following route or stick with the much hyped FAANG (Facebook, Apple, Amazon, Netflix, Google) names, you may be among the frustrated. In previous articles, I’ve called out some of those frustrated investors moaning about the lack of quality bargains in stocks. Again, I will say that they’re just not looking hard enough. Using a screen for large-cap stocks based on forward price-to-earnings ratio (P/E) discounts and dividend yields greater than 2%, I’ve uncovered a list of high-quality, big-name, franchise stocks that are trading at deep discounts to the market. Here are three of the strongest. The Blackstone Group (NYSE: BX) With a market cap of nearly $40 billion, Blackstone is the undisputed heavyweight champ of what we in the wealth management business refer to as alternative asset management. Alternative assets run the spectrum from long-short, hedge-fund style products to real estate… Read More

Before I get into today’s essay, I want to send my thoughts and prayers to all those affected by Hurricane Harvey. Last week, I made countless calls to friends in the Houston area to ensure everyone was OK. Many had fled their homes, but those who stayed told me they’d never seen flooding or devastation like this.  Ever.  As the days tick by, the full extent of the damage is yet to be revealed. While the storm’s high-powered winds fizzled quickly, the torrential rains persisted. By mid-week, Harvey had dumped more than 50 inches of rain on across a large… Read More

Before I get into today’s essay, I want to send my thoughts and prayers to all those affected by Hurricane Harvey. Last week, I made countless calls to friends in the Houston area to ensure everyone was OK. Many had fled their homes, but those who stayed told me they’d never seen flooding or devastation like this.  Ever.  As the days tick by, the full extent of the damage is yet to be revealed. While the storm’s high-powered winds fizzled quickly, the torrential rains persisted. By mid-week, Harvey had dumped more than 50 inches of rain on across a large swath of Houston. (If you’re wondering, that’s 26% more rain in a few days than Seattle gets in an entire year.) —Sponsored Link— Be FIRST To Tech’s Next Big Breakout Stocks You can settle for 20% returns in Apple… or seize 200% in fast-growing start-ups that haven’t been discovered by Wall Street yet! These stocks are sure to soar in the next 12 months, and the only question is who will get there first. Get their names TODAY before these tech stocks break out. As I write this, search and rescue… Read More

Calling a market top is a game for fools and overconfident pundits with no skin in the game. Right now, with the Dow Jones Industrial Average trading around 200 points off its all-time highs, crash calls and bearish sentiment are increasing by the day.   Make no mistake; the market top will print eventually. There are many signals indicating that the top is in or at the very least close.  Smart stock investors will keep an eye to the signs when deciding how to position their portfolios going forward. Even though we don’t know how long the market will keep… Read More

Calling a market top is a game for fools and overconfident pundits with no skin in the game. Right now, with the Dow Jones Industrial Average trading around 200 points off its all-time highs, crash calls and bearish sentiment are increasing by the day.   Make no mistake; the market top will print eventually. There are many signals indicating that the top is in or at the very least close.  Smart stock investors will keep an eye to the signs when deciding how to position their portfolios going forward. Even though we don’t know how long the market will keep pushing higher, utilizing bearish signals as a data point when making decisions is simply intelligent investing.  #-ad_banner-#One of the more widely used sentiment signals has been flashing a top alert for the last several months. This article will explore the indicator, delve into what is happening right now, and provide stocks that have set up to be great shorts.  The bearish indicator is money flow. As capital (money) flows in and out of the stock market, prices fluctuate. While this is common sense and doesn’t mean much on a day-to-day basis, over the longer term trends in money flow can… Read More

It’s been a soggy week here in northern Louisiana, but it’s nothing compared to the torrential rains and devastating storm damage brought ashore by Harvey. The monster category 4 hurricane slammed into the Texas coast late last Friday, unleashing 130 mile-per-hour winds — the strongest storm to make landfall in this part of the country since 1961.  Meteorologists will tell you the warm 85 degree seawater and absence of upper-atmosphere wind shear provided perfect conditions for rapid intensification. But unlike other storms that barrel in and quickly move out, this one has stalled out — dumping what some have described… Read More

It’s been a soggy week here in northern Louisiana, but it’s nothing compared to the torrential rains and devastating storm damage brought ashore by Harvey. The monster category 4 hurricane slammed into the Texas coast late last Friday, unleashing 130 mile-per-hour winds — the strongest storm to make landfall in this part of the country since 1961.  Meteorologists will tell you the warm 85 degree seawater and absence of upper-atmosphere wind shear provided perfect conditions for rapid intensification. But unlike other storms that barrel in and quickly move out, this one has stalled out — dumping what some have described as “biblical” amounts of rain.  My sister in-law, who lives on the coast in Galveston (just south of Houston), reported 20 inches of rain… and that was just over the weekend. Some nearby counties saw more than 30 inches over the same time. Incredibly, this week has seen the storm hover over an already devastated Houston — dumping additional feet of rain in many areas.  Anytime you get a year’s worth of rain in the span of a few days, epic flooding is to be expected. You’ve probably seen some of the pictures. Of course, my first concern is for… Read More