There are many reasons to love the Chinese e-commerce darling Alibaba Group (NYSE: BABA). The stock has captured the imagination of investors around the world from its IPO in September 2014 to today. But the question is, does this behemoth still make sense as an investment? I, for one, firmly believe that the company has tremendous upside potential. Here are seven reasons to love BABA right now. 1. The Chinese Economy A barrage of negative press has caused many investors to sour on the Chinese economy. Talk of slowdowns and the possible implosion of the Chinese economy have dominated… Read More

There are many reasons to love the Chinese e-commerce darling Alibaba Group (NYSE: BABA). The stock has captured the imagination of investors around the world from its IPO in September 2014 to today. But the question is, does this behemoth still make sense as an investment? I, for one, firmly believe that the company has tremendous upside potential. Here are seven reasons to love BABA right now. 1. The Chinese Economy A barrage of negative press has caused many investors to sour on the Chinese economy. Talk of slowdowns and the possible implosion of the Chinese economy have dominated the discussion on Chinese investment in recent years. While it’s true that the massive economic expansion has settled down, the growth story remains as exciting as ever. Pay no attention to the naysayers! The Chinese economy began its expansion in 1978 after the government shifted to a market-based economy from a struggling, centrally-planned one. Since this time, China has averaged GDP increases of around 10% annually. That growth cements China’s claim to the fastest sustained development of any major economy ever. Since the 2008 financial crisis, the nation has quickly becomes the largest contributor to global fiscal growth. Despite its… Read More

Recently, much of my work had focused on the role interest rates play in the current state of financial markets. While the Federal Reserve has raised rates, the anticipated upward movement of real rates, mainly in bonds, has yet to solidly materialize.  Rising rates will affect financial sector stocks in different ways. Banks, especially regional banks, tend to preform better if rates are rising. Rising rates are indicative of an improving economy. A healthier economy points to rising consumer demand and business expansion. Regional bank margins usually improve with higher loan demand and accompanying higher rates.  Put… Read More

Recently, much of my work had focused on the role interest rates play in the current state of financial markets. While the Federal Reserve has raised rates, the anticipated upward movement of real rates, mainly in bonds, has yet to solidly materialize.  Rising rates will affect financial sector stocks in different ways. Banks, especially regional banks, tend to preform better if rates are rising. Rising rates are indicative of an improving economy. A healthier economy points to rising consumer demand and business expansion. Regional bank margins usually improve with higher loan demand and accompanying higher rates.  Put simply: banks can charge more therefore they make more. It’s rare that financial sector stocks can operate independent of interest rates. However, there are a select few that are good beds regardless of what rates are doing. And that’s what I want to focus on today… Business Development Companies — Over the last decade, these entities, also known as BDCs, have stepped in and become the nation’s middle market business lender. During the financial crisis, as traditional banks backed away from lending to small and mid-sized businesses, BDCs filled the gap thanks mainly to their ability to tap capital markets,… Read More

Warren Buffett is the 2nd richest person in the world in Forbes’s 2017 annual ranking, with a net worth of $76 billion. Buffett has accumulated his riches from investing in almost every sector — everything from candy companies to insurance companies. One notable exception from amassing his fortune? Technology stocks. Buffett is notorious for avoiding the technology sector altogether because he loves investing in companies that are easy to understand. #-ad_banner-#Buffett once commented on his distaste for tech, saying “I know about as much about semiconductors or integrated circuits as I do of the mating habits of the chrzaszcz (the… Read More

Warren Buffett is the 2nd richest person in the world in Forbes’s 2017 annual ranking, with a net worth of $76 billion. Buffett has accumulated his riches from investing in almost every sector — everything from candy companies to insurance companies. One notable exception from amassing his fortune? Technology stocks. Buffett is notorious for avoiding the technology sector altogether because he loves investing in companies that are easy to understand. #-ad_banner-#Buffett once commented on his distaste for tech, saying “I know about as much about semiconductors or integrated circuits as I do of the mating habits of the chrzaszcz (the polish word for Beetle). We will not go into businesses where technology which is way over my head is crucial to the investment decision.” However, this view came to a screeching halt in May of 2016. That’s when Buffett broke with tradition and bought 9.8 million shares of Apple. Since then, he’s kept on buying. In January Buffett bought another 72 million shares. Today, Buffett owns 2.5% of Apple, making it his 2nd largest holding. These moves have a lot of investors asking an important question. Is Apple stock a good buy? Absolutely. Let me explain why Buffett couldn’t resist… Read More

Eat your peas! Wash your hands! Do your homework! Sounds familiar, right? None of us got to adulthood without following a set of simple rules. Of course, mom was right… Whether you’re a kid or an adult approaching retirement, all of these rules are important.  Especially the homework rule.  Doing your homework, knowing your investments and researching the new ones is a very important and necessary part of being a successful investor.  Worry not, though. If you’re a subscriber to my Daily Paycheck premium income newsletter service, I do the homework for you. Even if you sometimes don’t feel like… Read More

Eat your peas! Wash your hands! Do your homework! Sounds familiar, right? None of us got to adulthood without following a set of simple rules. Of course, mom was right… Whether you’re a kid or an adult approaching retirement, all of these rules are important.  Especially the homework rule.  Doing your homework, knowing your investments and researching the new ones is a very important and necessary part of being a successful investor.  Worry not, though. If you’re a subscriber to my Daily Paycheck premium income newsletter service, I do the homework for you. Even if you sometimes don’t feel like it… Besides researching stocks and funds, my own homework includes a healthy dose of staying on top of all the latest news and studying what others think about the market. Plus, when I can, I also look at what other experienced investors are doing, taking the opportunity to learn from the knowledge and practical experience of others.  But this doesn’t just mean we should blindly take positions in companies other experienced investors like, regardless of how rich and famous those investors happen to be.  —Sponsored Link— New ‘Perfect Retirement Business’ Could Make You $100s Per Week… Read More

Biotech and pharmaceutical stocks have been in the political crosshairs for more than a year. The threat of government controls left the group attractively valued into 2017 but the potential for headline risks has kept most investors on the sidelines.  That is, until last week. Biotech shares jumped last week on rumors of the President’s executive order supporting industry-friendly measures that address drug prices. Prices were also boosted by the industry escaping targeted pricing measures in the Senate’s draft healthcare bill. With the headline risk of regulatory action against pricing all but off the table, shares of drug makers can… Read More

Biotech and pharmaceutical stocks have been in the political crosshairs for more than a year. The threat of government controls left the group attractively valued into 2017 but the potential for headline risks has kept most investors on the sidelines.  That is, until last week. Biotech shares jumped last week on rumors of the President’s executive order supporting industry-friendly measures that address drug prices. Prices were also boosted by the industry escaping targeted pricing measures in the Senate’s draft healthcare bill. With the headline risk of regulatory action against pricing all but off the table, shares of drug makers can finally get back to trading at fair values.  While investors have already started to come back to the group, the market still isn’t fully pricing in leadership or drug pipeline potential.  Biotech Steps Up To Lead The Market The Biotech industry got hammered last year, with several companies spotlighted for triple-digit price increases on drugs and non-stop rhetoric against the industry from both sides of the race for president.  #-ad_banner-#Shares of the SPDR S&P Biotech ETF (NYSE: XBI) plunged 25%, even with the late-year rally after the November election. Investors have been cautiously optimistic this year, noting low valuations… Read More

Not too long ago, I took a cross-country trip to Florida. I had to pick up a few items before departing, and it just so happened that a “Super” Target was right on my way. So, in the name of research and curiosity, I decided to check out the store. It was Thursday, around 6 p.m., a time when my neighborhood supermarket is slammed and the mall is usually busy. (I only know this because I might have a small shopping addiction.) As I walked through the cavernous store, I passed 25 checkout stations that were almost completely devoid of… Read More

Not too long ago, I took a cross-country trip to Florida. I had to pick up a few items before departing, and it just so happened that a “Super” Target was right on my way. So, in the name of research and curiosity, I decided to check out the store. It was Thursday, around 6 p.m., a time when my neighborhood supermarket is slammed and the mall is usually busy. (I only know this because I might have a small shopping addiction.) As I walked through the cavernous store, I passed 25 checkout stations that were almost completely devoid of activity. It felt a little like that Twilight Zone episode where a man finds himself completely alone in a normally bustling town. The lights were on… the music was playing… but there were no shoppers (or employees, for that matter) in sight.  After 15 minutes of strolling along aisles packed with goods designed by B-list TV stars, one thought nagged at my brain.  How is this company still in business? I know that may sound a bit dramatic, but I’ve been following Target (NYSE: TGT) for more than a decade and this has always amazed me.  And not in a… Read More