Cryptocurrencies have been red-hot in 2017.  Bitcoin, the most valuable cryptocurrency, with a market cap of $72 billion, is up 359%. Ether, the currency traded on the Ethereum platform and the second-largest cryptocurrency with a market cap of $33 billion, is up a mind boggling 4,231%. Even litecoin, with a market cap of $3.3 billion, is up 1,278%. These mind-blowing gains have not gone unnoticed. Everyday investors now want to learn how they can get in on the action. Google trends shows that searches for “bitcoin” just hit a new all-time high. Looking forward, I am bullish on… Read More

Cryptocurrencies have been red-hot in 2017.  Bitcoin, the most valuable cryptocurrency, with a market cap of $72 billion, is up 359%. Ether, the currency traded on the Ethereum platform and the second-largest cryptocurrency with a market cap of $33 billion, is up a mind boggling 4,231%. Even litecoin, with a market cap of $3.3 billion, is up 1,278%. These mind-blowing gains have not gone unnoticed. Everyday investors now want to learn how they can get in on the action. Google trends shows that searches for “bitcoin” just hit a new all-time high. Looking forward, I am bullish on cryptocurrencies. I think there is plenty of upside left, even with the massive gains we’ve seen already.  However, as someone who has bought and currently owns bitcoin, ether, and litecoin, the reality is that buying and holding cryptocurrencies is still extremely risky. #-ad_banner-#Not only is it more complicated to buy cryptocurrencies than stocks, but both crypto exchanges and personal crypto wallets are vulnerable to hackers. For example, in early July more than 150,000 ether coins, worth more than $32 million at the time, were stolen from three ether projects being developed by Edgeless Casino, Aeternity, and Swarm City. That theft… Read More

Over the past decade or so, we’ve seen a major shift in the way we eat out. While I still like a good ol’ McNugget, the rest of country apparently wanted something more… and fast-casual dining chains — Chipotle, Potbelly, Red Robin, SmashBurger, Shake Shack and so many more — were happy to oblige. This new evolution of “fast food” has elevated the market with higher-quality, arguably better tasting foods. These companies have also permanently stolen market share away from legacy brands in this already oversaturated industry. As these new companies opened up thousands of locations across the country, “old… Read More

Over the past decade or so, we’ve seen a major shift in the way we eat out. While I still like a good ol’ McNugget, the rest of country apparently wanted something more… and fast-casual dining chains — Chipotle, Potbelly, Red Robin, SmashBurger, Shake Shack and so many more — were happy to oblige. This new evolution of “fast food” has elevated the market with higher-quality, arguably better tasting foods. These companies have also permanently stolen market share away from legacy brands in this already oversaturated industry. As these new companies opened up thousands of locations across the country, “old school” fast-food chains found it harder and harder to make money. As a result, they too opened new stores! Now, we are stuck with way too many fast-casual restaurants, all of which are experiencing slowing sales growth and rising food costs that are cutting into margins, compounding the competition factor. McDonald’s (NYSE: MCD) — with its deep pockets, precise cost controls and profound brand recognition — has been able to successfully fight back and retain its market share. Privately-owned Burger King, Mickey-D’s chief competitor, is also fighting back with creative advertising, unique flavor combinations and discounts. But when a market… Read More

It’s amazing to think that most investors fight major trends in the markets. Despite countless volumes of academic and professional research extolling the virtues of a long-term investment outlook, most investors still attempt to grow their portfolios by betting on short- and medium-term shifts in the markets. This is reinforced by the preoccupation of the talking heads on the financial networks. I mean, why would anyone buy or sell a stock based on the quarterly performance of any company? It doesn’t make any sense. #-ad_banner-#If an investor bought a stock correctly, the shares were purchased based on some basic investment… Read More

It’s amazing to think that most investors fight major trends in the markets. Despite countless volumes of academic and professional research extolling the virtues of a long-term investment outlook, most investors still attempt to grow their portfolios by betting on short- and medium-term shifts in the markets. This is reinforced by the preoccupation of the talking heads on the financial networks. I mean, why would anyone buy or sell a stock based on the quarterly performance of any company? It doesn’t make any sense. #-ad_banner-#If an investor bought a stock correctly, the shares were purchased based on some basic investment thesis. And as long as that thesis holds true, the stock should be held. On the other hand, once an investment thesis no longer holds true, the stock should go away faster than Venezuelan prosperity.   But a long-term outlook isn’t to be used in isolation… Real wealth is created when investors anticipate long-term trends in combination with long-term outlooks. You see, large capital gains occur when investors follow the long-term social, political, and technological trends that are changing the world.  These trends, by default, significantly increase the likelihood of capital gains. That’s why it’s almost axiomatic that investors looking… Read More

I’d like to share a little story with you today. I’ve told this one before, so if you’ve heard it, please bear with me. But I think it’s appropriate for today’s issue… A newlywed couple is on their honeymoon in Las Vegas.  They had a sensible budget for gambling: a thousand dollars. However, by the third night that money was gone.  When the husband settled into bed for the night, he noticed something on the dresser. It was a $5 chip that he decided to save as a souvenir earlier in the day as their gambling budget evaporated. Then, suddenly,… Read More

I’d like to share a little story with you today. I’ve told this one before, so if you’ve heard it, please bear with me. But I think it’s appropriate for today’s issue… A newlywed couple is on their honeymoon in Las Vegas.  They had a sensible budget for gambling: a thousand dollars. However, by the third night that money was gone.  When the husband settled into bed for the night, he noticed something on the dresser. It was a $5 chip that he decided to save as a souvenir earlier in the day as their gambling budget evaporated. Then, suddenly, a vision appeared in his mind’s eye. The number 17. It had to be a sign. The husband quickly threw on his hotel bathrobe and went downstairs to the roulette wheel. He placed the chip on number 17. Sure enough, the wheel hit 17 and the 35-1 bet paid $175.  He decided to let his winnings ride, and once again it landed on 17, paying $6,125. And so it went, again and again, until the lucky groom was about to wager $7.5 million. The pit boss intervenes, claiming the casino would not pay out the winnings on such a large… Read More

One of my favorite scenes from the brilliant Steve Martin film The Jerk was when the deranged sniper played by C. Emmett Walsh is firing at Martin’s character, the hapless gas station attendant Navin Johnson, yelling “Die milk face!” The sniper’s aim is poor and as the bullets whiz past him, Martin yells, “He hates these cans!” Having been a long-time bull on the seven-million-pound networking gorilla Cisco Systems (Nasdaq: CSCO) and for quite a while, I’ve felt a little like Navin Johnson where the market is the sniper and I’m running around yelling “It hates this stock!” What am… Read More

One of my favorite scenes from the brilliant Steve Martin film The Jerk was when the deranged sniper played by C. Emmett Walsh is firing at Martin’s character, the hapless gas station attendant Navin Johnson, yelling “Die milk face!” The sniper’s aim is poor and as the bullets whiz past him, Martin yells, “He hates these cans!” Having been a long-time bull on the seven-million-pound networking gorilla Cisco Systems (Nasdaq: CSCO) and for quite a while, I’ve felt a little like Navin Johnson where the market is the sniper and I’m running around yelling “It hates this stock!” What am I missing? Big Tech, Low Price On average, the company has grown earnings per share at an 11% annual rate over the last four years. The common dividend per share has grown at a 13% annual rate for the same time period. Total cash per share is a staggering $14.12, representing 45% of Cisco’s current share price. #-ad_banner-#Rationally, this is a stock investors looking for high quality, blue-chip brand names should own. But investors and markets are rarely, if ever, rational. The biggest concern the herd has is revenue weakness. For fiscal year 2017 (Cisco’s ends in… Read More

It’s time to face the music: As I explained in yesterday’s essay, the Social Security system is broken. And neither political party wants the fallout from enacting the reforms to make it solvent once again — advocating for a reduction in benefits is tantamount to political suicide. That’s bad news for regular Americans, but there is a way you can fight back — by taking charge of your retirement with what I call “Social Security Insurance.” —Sponsored Link— Breaking: New Marijuana Legislation Just Released A new government announcement could completely change the legalization of marijuana… Read More

It’s time to face the music: As I explained in yesterday’s essay, the Social Security system is broken. And neither political party wants the fallout from enacting the reforms to make it solvent once again — advocating for a reduction in benefits is tantamount to political suicide. That’s bad news for regular Americans, but there is a way you can fight back — by taking charge of your retirement with what I call “Social Security Insurance.” —Sponsored Link— Breaking: New Marijuana Legislation Just Released A new government announcement could completely change the legalization of marijuana — forever. In fact, if you haven’t already dipped your toes into cannabis investing, now is the time. You see, thanks to this historic announcement, tiny pot stocks trading for under $5 are getting set to double, triple, or quadruple. And by putting a couple hundred bucks into these penny stocks, you could pocket life-changing gains — turning a fortune overnight. America’s leading pot stock expert shares all the good news — including details on five tiny weed stocks — right here. Here’s How It Works…  There is no complicated system to learn. All you have to do is… Read More

Fidelity recently released its annual study of retirement health care costs. The news, as it has been for the last decade, is not good.  A newly-retired, 65-year old couple will need an estimated $275,000 in savings just to pay for healthcare. That’s a 6% jump from last year’s estimate and more than three times the general rate of consumer inflation. If that sounds like a hard pill to swallow for those trying to retire, it’s only going to get worse. At the rate of expected increases in health care costs, a 45-year old couple could need… Read More

Fidelity recently released its annual study of retirement health care costs. The news, as it has been for the last decade, is not good.  A newly-retired, 65-year old couple will need an estimated $275,000 in savings just to pay for healthcare. That’s a 6% jump from last year’s estimate and more than three times the general rate of consumer inflation. If that sounds like a hard pill to swallow for those trying to retire, it’s only going to get worse. At the rate of expected increases in health care costs, a 45-year old couple could need as much as $800,000 just to pay for medical expenses when they prepare to retire in 20 years! Health Care Costs Are Doubling Every Decade While health care cost inflation has slowed from an 11.9% surge in 2007, costs have increased at a compound rate of 7.85% annually over the last decade. In another report, HealthView Services estimated health care expenses could rise at an annual average rate of 5.5% over the next decade, more than double the 2.6% annual projected cost-of-living adjustment (COLA) on Social Security benefits.  That gap between cost-of-living adjustments and health… Read More

Over the years I have discovered a technical buy entry signal that is highly useful in timing stock entries. While nothing is foolproof in the financial markets, this tool provides a serious edge when combined with common sense and the application of basic fundamental concepts.  The purpose of technical analysis to attempt to time trades based on movements and patterns in the price of a stock. Understanding when price trends are about to reverse is the secret to successful trades. Most investors wait for a trend to be well underway before purchasing the stock. This tactic can work in strongly… Read More

Over the years I have discovered a technical buy entry signal that is highly useful in timing stock entries. While nothing is foolproof in the financial markets, this tool provides a serious edge when combined with common sense and the application of basic fundamental concepts.  The purpose of technical analysis to attempt to time trades based on movements and patterns in the price of a stock. Understanding when price trends are about to reverse is the secret to successful trades. Most investors wait for a trend to be well underway before purchasing the stock. This tactic can work in strongly trending markets, but trends have an uncanny way of ending as soon as they are identified. Smart investors attempt to get a jump on the crowd before a significant trend starts to maximize the potential profit from the move. And the perfect technical tool for timing this type of move is called the Parabolic SAR.  #-ad_banner-#Created by Welles Wilder, the Parabolic SAR consists of a series of dots on top of and below price bars on a chart. There is no practical need to understand how the indicator is derived since most online investing platforms have Parabolic SAR built into… Read More