For the past three years, I’ve driven an SUV and a pickup. I got an unbelievable deal on the pickup (I always buy used), but it needed new tires. When I took the truck to the friendly neighborhood tire guys to replace them with similar all-terrain tires, I then understood why they were so friendly and why the truck was such a good deal. Ouch. I’m not alone. Currently, light trucks and SUVs represent 63% of 2016’s record year for U.S. vehicle sales, which came in at 17.55 million. Three years ago, the truck and SUV share of auto sales… Read More

For the past three years, I’ve driven an SUV and a pickup. I got an unbelievable deal on the pickup (I always buy used), but it needed new tires. When I took the truck to the friendly neighborhood tire guys to replace them with similar all-terrain tires, I then understood why they were so friendly and why the truck was such a good deal. Ouch. I’m not alone. Currently, light trucks and SUVs represent 63% of 2016’s record year for U.S. vehicle sales, which came in at 17.55 million. Three years ago, the truck and SUV share of auto sales was right at 50%. As far as cars on the road in the United States, the average age of a vehicle in the light truck/SUV category is around 6.1 years. Eventually, tens of millions of tires will be replaced to the tune of $800 to $1,400 a set. That’s why I’m looking at Cooper Tire and Rubber Company (NYSE: CTB). Cooper is the number five tire manufacturer in North America and number twelve worldwide, with 2016 sales of $2.92 billion. Why do I want to buy the middle of the pack? First, the stock is a genuine value with attractive… Read More

At my premium newsletter Game-Changing Stocks, I have the challenging but exciting task of identifying companies that are set to change the way the world operates. I’m talking about companies that hold the promise of revolutionizing their specific sectors of the economy or companies that create and nurture promising new businesses. And, of course, these are companies that will richly reward investors. #-ad_banner-#If there’s one thing true game-changers have in common, it’s the ability to innovate. But it’s not just companies that are innovative — countries can be, too. An innovation-friendly environment on a country level should, in theory, do… Read More

At my premium newsletter Game-Changing Stocks, I have the challenging but exciting task of identifying companies that are set to change the way the world operates. I’m talking about companies that hold the promise of revolutionizing their specific sectors of the economy or companies that create and nurture promising new businesses. And, of course, these are companies that will richly reward investors. #-ad_banner-#If there’s one thing true game-changers have in common, it’s the ability to innovate. But it’s not just companies that are innovative — countries can be, too. An innovation-friendly environment on a country level should, in theory, do wonders for companies domiciled in this country. Therefore, it should end up benefitting investors, too. So to complement my growing set of promising companies in Game-Changing Stocks, I recently featured a look at a highly innovative country that holds promise of fostering as many game-changing ideas as possible. It’s not a coincidence that so many revolutionary technologies, processes, consumer goods, medicines and devices originated here in the United States: Our country spends a big chunk of its GDP on research & development (R&D). The National Science Foundation put the number at a record $499 billion in 2015. Of that amount,… Read More

Now is the time to get long oil. This is a big change for me; I was a huge oil bear during the “peak oil” craze. It seemed clear that the new extraction technology and the ever-changing geopolitical climate would quickly eliminate the fear of oil becoming scarce. But my investment thesis, to buck oils upward trend, came to fruition faster than I expected. #-ad_banner-#The Light Crude Oil futures contract (WTI Crude) plunged from the $115.00 zone at the start of 2011 to just above $25.00 in the early months of 2016. The bulk of the dive began in mid-2014,… Read More

Now is the time to get long oil. This is a big change for me; I was a huge oil bear during the “peak oil” craze. It seemed clear that the new extraction technology and the ever-changing geopolitical climate would quickly eliminate the fear of oil becoming scarce. But my investment thesis, to buck oils upward trend, came to fruition faster than I expected. #-ad_banner-#The Light Crude Oil futures contract (WTI Crude) plunged from the $115.00 zone at the start of 2011 to just above $25.00 in the early months of 2016. The bulk of the dive began in mid-2014, with a precipitous fall to the lows. Fortunes were made by the oil bears who had the foresight and nerve to short in the face of massive bullish sentiment. The oil sell-off was the primarily the result of a trifecta of factors. First, technology led to a flood of product onto the market. New extraction techniques, such as fracking, allowed producers to access untold barrels of black gold never imagined by the oil bulls. The earth went from potentially running out of oil within our lifetime to virtually unlimited supplies. Second, political events drove prices down. At the start of… Read More

To most investors, what we do here at Maximum Profit doesn’t make sense… That’s because our investing strategy goes against nearly everything you’ve been told about becoming a successful investor: diversify your portfolio and buy low, sell high. That strategy simply doesn’t work for the vast majority of investors. How do I know? Market research from Dalbar — a company that’s been looking into investors’ buy and sell decisions since 1994 — found that investors have averaged a paltry 2.1% annualized return over the last 20 years… greatly lagging the broader market’s 8.2% return over that same time period. So… Read More

To most investors, what we do here at Maximum Profit doesn’t make sense… That’s because our investing strategy goes against nearly everything you’ve been told about becoming a successful investor: diversify your portfolio and buy low, sell high. That strategy simply doesn’t work for the vast majority of investors. How do I know? Market research from Dalbar — a company that’s been looking into investors’ buy and sell decisions since 1994 — found that investors have averaged a paltry 2.1% annualized return over the last 20 years… greatly lagging the broader market’s 8.2% return over that same time period. So it’s clear that beating the same old investing drum hasn’t worked for investors. So what does work? Buy high and sell higher… That’s the basic premise of momentum investing. Contrary to conventional wisdom, we want to be buying stocks that are near their 52-week highs, and selling them when the upward momentum runs out of steam. As I told my subscribers in an past issue: Often, new highs create uncertainty among investors. They tend to think that when a stock or the overall market reaches new highs, it’s time to take money off the table. Similarly, most investors would scoff… Read More

This is BIG… For the first time since 1933, the SEC is now allowing regular people like you and me to invest in brand-new explosive-growth companies BEFORE THEY GO PUBLIC. Imagine getting in on the next Facebook for 33 cents a share or the next Apple at 78 cents. In StreetAuthority’s Pre-IPO Millionaire, I vet six to eight deals like this one, and offer my exclusive in-depth analysis of a single opportunity that I believe could return 1,000% or more. Click here for more information. — Joseph Hogue, CFA For that half of the population who maybe didn’t already realize… Read More

This is BIG… For the first time since 1933, the SEC is now allowing regular people like you and me to invest in brand-new explosive-growth companies BEFORE THEY GO PUBLIC. Imagine getting in on the next Facebook for 33 cents a share or the next Apple at 78 cents. In StreetAuthority’s Pre-IPO Millionaire, I vet six to eight deals like this one, and offer my exclusive in-depth analysis of a single opportunity that I believe could return 1,000% or more. Click here for more information. — Joseph Hogue, CFA For that half of the population who maybe didn’t already realize this, let it be known that women’s fashion is not inexpensive. Luxury fashion prices have shot up 60% over the last decade, nearly twice the rate of overall consumer inflation. A single dress can cost several thousand dollars. To make matters worse, the rise of social media has shortened the season for luxury fashion. Whereas many designers used to produce a spring and fall season, now many are launching four product lines a year to keep up with changing tastes. #-ad_banner-#A 2015 survey of 1,500 women by Barnardo’s, a British charity, found that respondents considered an item ‘old’ after wearing… Read More

The technology sector isn’t known for paying out juicy dividends. Companies from the high-growth sector tend to re invest their cash into expanding instead of returning it to investors. However, 17 years after the dot-com bubble popped in March of 2000, a group of former tech highflyers is quietly evolving into some of the best dividend payers in the S&P 500. #-ad_banner-#Apple, Inc. (Nasdaq: AAPL) is a great example. Apple began paying a dividend in 2012, and now offers a 1.6% yield after growing its dividend by 27% in the last three years. With more than $200 billion in cash,… Read More

The technology sector isn’t known for paying out juicy dividends. Companies from the high-growth sector tend to re invest their cash into expanding instead of returning it to investors. However, 17 years after the dot-com bubble popped in March of 2000, a group of former tech highflyers is quietly evolving into some of the best dividend payers in the S&P 500. #-ad_banner-#Apple, Inc. (Nasdaq: AAPL) is a great example. Apple began paying a dividend in 2012, and now offers a 1.6% yield after growing its dividend by 27% in the last three years. With more than $200 billion in cash, I expect Apple to continue growing its dividend for years to come. While those stats are impressive, another legendary tech stock offers a better dividend yield and growth. This global leader pays out a 2.4% yield, a 50% premium to Apple’s 1.6% yield. It has grown its dividend by 44% in the last three years, a 63% premium to Apple. And finally, with just over $100 billion in cash on its balance sheet, I am expecting its dividend payment to grow more than 100% in the next five years. The company, Microsoft, (Nasdaq: MSFT) is one of the greatest growth… Read More

Rockwell-Collins (NYSE: COL) might not be as popular as Boeing (NYSE: BA) or Lockheed Martin (NYSE: LMT), but the company’s roots can be traced back to WWII and the venerable P-51 Mustang. In the ’60s, it produced the Apollo spacecraft that put Neil Armstrong on the moon. By the late ’70s, it was commissioned to spearhead NASA’s Space Shuttle program, starting with “Challenger,” and eventually building four other orbiters that made hundreds of trips into outer space. #-ad_banner-#The GPS systems used by so many of our electronic, automotive and aviation products might not even exist without Rockwell-Collins. Its “Navstar” GPS… Read More

Rockwell-Collins (NYSE: COL) might not be as popular as Boeing (NYSE: BA) or Lockheed Martin (NYSE: LMT), but the company’s roots can be traced back to WWII and the venerable P-51 Mustang. In the ’60s, it produced the Apollo spacecraft that put Neil Armstrong on the moon. By the late ’70s, it was commissioned to spearhead NASA’s Space Shuttle program, starting with “Challenger,” and eventually building four other orbiters that made hundreds of trips into outer space. #-ad_banner-#The GPS systems used by so many of our electronic, automotive and aviation products might not even exist without Rockwell-Collins. Its “Navstar” GPS satellites were among the first commissioned by the Pentagon. By many measures, it has produced some of the most impressive and influential aerospace and communications technology of the 20th century. And even after several mergers and acquisitions, and an eventual spinoff in 2001, Rockwell-Collins is still an aviation, defense and technological force to be reckoned with. But this is more than just a company with an impressive lineage. It is the “best-in-breed” for its sector, heavily integrated into aerospace, defense, infrastructure and even rail. Growth in these sectors equals earnings growth for COL. Given President Trump’s effect on consumer and… Read More

In May 2013, then Federal Reserve Chairman Ben Bernanke hinted to Congress that the Fed would consider tapering its $70 billion monthly bond-buying program. The markets reacted swiftly and violently to the news. Investors immediately began pulling money from the bond markets. Bond yield pushed significantly higher as money outflows scared investors. The event became known as the “taper tantrum.” #-ad_banner-#The reaction in the U.S. REIT market was just as swift. The total returns of the FTSE NAREIT All REIT Index fell sharply, ending the month down 6.6%. The index lost another 8.5% over the next six months. The volatility… Read More

In May 2013, then Federal Reserve Chairman Ben Bernanke hinted to Congress that the Fed would consider tapering its $70 billion monthly bond-buying program. The markets reacted swiftly and violently to the news. Investors immediately began pulling money from the bond markets. Bond yield pushed significantly higher as money outflows scared investors. The event became known as the “taper tantrum.” #-ad_banner-#The reaction in the U.S. REIT market was just as swift. The total returns of the FTSE NAREIT All REIT Index fell sharply, ending the month down 6.6%. The index lost another 8.5% over the next six months. The volatility in the REIT sector illustrated the conventional wisdom among investors about REIT prices and interest rates. REIT prices usually decline when interest rates rise. This is because higher interest rates reduce the present value of future cash flows. As such, asset prices must come down — all other things being equal. And that’s exactly what happened. But that doesn’t mean some economic law is in place here. Nor does it mean that all REITs should experience declines equally. Residential and office REITs can actually rise with interest rates, thanks to the higher demand and rising rents that come with economic… Read More

As stocks start to wobble after a nine-year bull market, one industry looks like it could break higher over the next few years. This industry missed out on the spectacular bull market gains because of overbuilding, but last year’s collapse in prices could bring a rebound off multi-decade lows. An ETF tracking the industry plunged 63% to its low last year from a high in 2011, but has since rebounded 20% as early evidence of a recovery becomes clear. The selloff was so drastic that even the largest players in the space are now small-cap companies. But now industry is… Read More

As stocks start to wobble after a nine-year bull market, one industry looks like it could break higher over the next few years. This industry missed out on the spectacular bull market gains because of overbuilding, but last year’s collapse in prices could bring a rebound off multi-decade lows. An ETF tracking the industry plunged 63% to its low last year from a high in 2011, but has since rebounded 20% as early evidence of a recovery becomes clear. The selloff was so drastic that even the largest players in the space are now small-cap companies. But now industry is clearing its overcapacity issues and demand fundamentals are picking up. This confluence of events could just make it one of the biggest investing themes of the year. Shakeout In Shipping Helps Fuel A Recovery The boom in commodity prices just after the Great Recession drove many in the shipping industry to rapidly expand their fleets. Fleet growth exploded from 2009 through 2012, with the industry increasing the number of ships in service by an average of 14% a year. The oversupply in shipping caused the Baltic Dry Index (BDI), an assessment of the price to move major raw materials… Read More