Circuit City, RadioShack, Blockbuster and Borders. The names read like an obituary for American retail over the last ten years. #-ad_banner-#The slow death of traditional brick-and-mortar retail has been one of the clearest trends over the last decade. The combination of slow economic growth and increasing e-commerce sales has already meant bankruptcy for many department stores and retailers will continue to face hard times. Investors have time and again been drawn into ‘value-plays’ on the hope of a rebound in retailers and stocks hit by the trend. Instead of trying to defy the trend, investors need to look for retailers… Read More

Circuit City, RadioShack, Blockbuster and Borders. The names read like an obituary for American retail over the last ten years. #-ad_banner-#The slow death of traditional brick-and-mortar retail has been one of the clearest trends over the last decade. The combination of slow economic growth and increasing e-commerce sales has already meant bankruptcy for many department stores and retailers will continue to face hard times. Investors have time and again been drawn into ‘value-plays’ on the hope of a rebound in retailers and stocks hit by the trend. Instead of trying to defy the trend, investors need to look for retailers that can survive and thrive within it. I’ve found two companies that will do just that with experience-oriented products that can still draw shoppers. These two aren’t waiting around to develop their e-commerce platforms either, and in-store demand will help support sales as online revenue picks up. Rumors Of American Retail’s Untimely Demise Are Not Exaggerated Holiday spending rose 3.6% in 2016 according to the National Retail Federation, a solid gain over the previous year, but the breakout shows a far weaker picture for traditional brick-and-mortar stores. Most of the increase is due to a 12% jump in online… Read More

It’s hard to believe, but we just wrapped up the first full week of trading since Christmas. And one of the major questions for 2017 has been when the Dow Jones Industrial Average will hit the major psychological milestone of 20,000. #-ad_banner-#The Dow has been flirting with the 20K mark since December, moving as close as 50 points on Wednesday, January 11. But what does hitting 20,000 really mean for investors? The short answer is “nothing.” It’s simply our fascination with large round numbers — Y2K, when your odometer clicks to 100,000 miles, making over $100,000 or $1 million in… Read More

It’s hard to believe, but we just wrapped up the first full week of trading since Christmas. And one of the major questions for 2017 has been when the Dow Jones Industrial Average will hit the major psychological milestone of 20,000. #-ad_banner-#The Dow has been flirting with the 20K mark since December, moving as close as 50 points on Wednesday, January 11. But what does hitting 20,000 really mean for investors? The short answer is “nothing.” It’s simply our fascination with large round numbers — Y2K, when your odometer clicks to 100,000 miles, making over $100,000 or $1 million in annual income, etc. On a more psychological front, Dow 20,000 means that those large 1,000 point moves aren’t what they used to be. You see, when the Dow finally doubled from 1,000 to 2,000 in 1987, that move represented a 100% advance. But a climb to 20,000 from 19,000 is a meager 5% rise.  It just so happens that the Dow nearing 20,000 comes at the beginning of a New Year, when analysts and investors try to predict what’s in store for the next 12 months. If you’re interested in this sort of “fortune-telling,” here are a few predictions:… Read More

If I had to provide just two words of guidance to investors about 2017, I would say “expect change.” The new administration will soon be shaking things up in a manner not seen for many decades. There will likely be a loosening of regulatory oversight, a massive uptick in infrastructure spending, and a substantial increase in defense spending as America takes a more hawkish stance on global affairs. #-ad_banner-#While each of these expected macro changes will create opportunity and risk for investors, some of the best opportunities will be created in the defense sector. Over the last five years, defense… Read More

If I had to provide just two words of guidance to investors about 2017, I would say “expect change.” The new administration will soon be shaking things up in a manner not seen for many decades. There will likely be a loosening of regulatory oversight, a massive uptick in infrastructure spending, and a substantial increase in defense spending as America takes a more hawkish stance on global affairs. #-ad_banner-#While each of these expected macro changes will create opportunity and risk for investors, some of the best opportunities will be created in the defense sector. Over the last five years, defense spending has been stifled under the Budget Control Act of 2011. Despite the cuts, the largest firms in the aerospace and defense sector have weathered the storm remarkably well. If you look carefully, this success was only possible with aggressive management action. Stock buybacks, workforce cuts, and ramping up efficiency have all been effectively used to survive. Defense firms have also sought profits via foreign markets and commercial businesses while neglecting their core defense competencies. Even worse, budget cuts have curtailed long term planning, as it’s difficult to take on contracts in an uncertain funding environment. But this tide might… Read More

If you’re frustrated with the low yields this market has to offer, you’re not alone. Finding dependable yields over 4%, much less double-digit yields, is nearly impossible in the current market environment. For instance, the S&P 500 throws off a yield of just 2.1%. Even after the December hike, bonds are barely beating inflation, and the yields on blue-chip stocks are pathetic. This had led some investors to “reach for yield,” i.e., buy risky stocks with higher payouts. More often than not, this strategy leads to big losses. To make matters worse, stocks are trading near all-time highs and carry… Read More

If you’re frustrated with the low yields this market has to offer, you’re not alone. Finding dependable yields over 4%, much less double-digit yields, is nearly impossible in the current market environment. For instance, the S&P 500 throws off a yield of just 2.1%. Even after the December hike, bonds are barely beating inflation, and the yields on blue-chip stocks are pathetic. This had led some investors to “reach for yield,” i.e., buy risky stocks with higher payouts. More often than not, this strategy leads to big losses. To make matters worse, stocks are trading near all-time highs and carry lofty valuations. This makes owning them a riskier proposition than usual. For conservative income investors in particular, this is an incredibly tough market to navigate. Fortunately, there is still a way to generate more income than you ever thought possible from the safest stocks out there. —Recommended Link— You May Not Like Hearing This… Everyone knows that Social Security is in bad shape. But most people don’t realize just how desperate the situation is… to fix Social Security benefits have to be cut by 22% immediately. Or payroll taxes have to jump by 32%. So you’re facing pain whether… Read More

If you Google the phrase, “is the stock market overpriced,” you’ll get more than 600,000 hits on how the market is ready to fall off a cliff. That search will find you article after article comparing today’s market to 1999 and even 1929. #-ad_banner-#Several articles try convincing their readers that the market is as much as 80% overvalued — as if that statement has any real meaning. Others say prudent investors should stay away from the stock market after it hits a new high. They reason that the market must revert to some mean level before it can sustain a… Read More

If you Google the phrase, “is the stock market overpriced,” you’ll get more than 600,000 hits on how the market is ready to fall off a cliff. That search will find you article after article comparing today’s market to 1999 and even 1929. #-ad_banner-#Several articles try convincing their readers that the market is as much as 80% overvalued — as if that statement has any real meaning. Others say prudent investors should stay away from the stock market after it hits a new high. They reason that the market must revert to some mean level before it can sustain a move higher. On that, I call BS. Here’s why… It turns out that, historically, the best time to buy stocks is after a new 12-month high as opposed to a new 12-month low. Now this may seem illogical or counterintuitive. After all, you’d think the market would have more upside potential after hitting a new low than a new high. But I have 90-years of data to prove that hypothesis incorrect. You see, the historical record going back to 1928 shows that stocks perform 160% better after hitting an all-time new high. Take a look at the chart below. The… Read More

It’s hard to argue with the claim that retail chain Victoria’s Secret brought sexy lingerie to the mainstream, out from the backwater of catalogs and specialty stores that most consumers wouldn’t be caught dead in. Ironically, however, Victoria’s Secret’s original incarnation was as a specialty catalog. #-ad_banner-#Founded in 1977, the original target customers of the brand were men who were too embarrassed to buy lingerie for their wives or girlfriends at department stores. But after struggling to the edge of bankruptcy, the business was bought in 1982 by rising mall retailer The Limited, now L Brands (NYSE: LB). The new… Read More

It’s hard to argue with the claim that retail chain Victoria’s Secret brought sexy lingerie to the mainstream, out from the backwater of catalogs and specialty stores that most consumers wouldn’t be caught dead in. Ironically, however, Victoria’s Secret’s original incarnation was as a specialty catalog. #-ad_banner-#Founded in 1977, the original target customers of the brand were men who were too embarrassed to buy lingerie for their wives or girlfriends at department stores. But after struggling to the edge of bankruptcy, the business was bought in 1982 by rising mall retailer The Limited, now L Brands (NYSE: LB). The new owner shifted the brand’s focus toward women and translated the catalog into physical stores. And this strategy worked wonders; Victoria’s Secret was off to the races with over 300 locations by 1987. Why the focus on this division of L Brands? Because Victoria’s Secret is L Brands. The chain contributes 63% of the company’s annual revenue, which has averaged nearly $11.5 billion over the last three years. And the stock is on sale. As a whole, the retail sector has had a rough go, especially recently due to lackluster holiday sales reports. The performance of the Retail Sector SPDR ETF… Read More

Welcome to the first issue of Disruptor Deals & Cool Concepts, an unfiltered look at the crowdfunding deals on the major platforms I regularly monitor. All courtesy of your subscription to Pre-IPO Millionaire, the newsletter that opens up the world of startup investing through… Read More

There are few things more profitable in the stock market than finding a long-term bullish economic trend and identifying a backdoor way to invest in the trend. #-ad_banner-#Major economic trends are often well known the observant investor, and many of them invest directly into the major companies riding the trend. While this tactic can and does work miracles at the start of any economic or societal trend, the profit potential becomes diluted when the trend matures. Shifting consumer tastes can turn one company’s products from a huge hit into a has-been at the drop of a hat. The key to… Read More

There are few things more profitable in the stock market than finding a long-term bullish economic trend and identifying a backdoor way to invest in the trend. #-ad_banner-#Major economic trends are often well known the observant investor, and many of them invest directly into the major companies riding the trend. While this tactic can and does work miracles at the start of any economic or societal trend, the profit potential becomes diluted when the trend matures. Shifting consumer tastes can turn one company’s products from a huge hit into a has-been at the drop of a hat. The key to long-term success is to locate those under the radar, backdoor companies that are crucial for supporting the overall trend but aren’t the obvious financial media darlings. These companies are often those that support or complement the more obvious ones. Today’s Big Trend A major trend that appears poised to continue is the shift to dining out and away from at-home meals. In 2015, for the first time, restaurant spending surpassed grocery store expenditures. The U.S. Department of Commerce reported that Americans spent $52.3 billion at restaurants and bars compared to $49.7 billion in grocery stores. It is the first… Read More

When it comes to international exposure, investors have literally thousands of mutual funds, closed-end funds, and exchange-traded funds to choose from. European small-cap stocks, Latin American dividend stocks, Asian government bonds — you name it. Vanguard alone offers 19 different equity funds with either global or purely foreign portfolios. But investing in individual securities is a different matter entirely. While the introduction of online trading platforms has facilitated the buying and selling of foreign stocks, it’s still an onerous process. Many brokers can’t help you buy shares of a company trading on the Toronto Stock Exchange, for example — and… Read More

When it comes to international exposure, investors have literally thousands of mutual funds, closed-end funds, and exchange-traded funds to choose from. European small-cap stocks, Latin American dividend stocks, Asian government bonds — you name it. Vanguard alone offers 19 different equity funds with either global or purely foreign portfolios. But investing in individual securities is a different matter entirely. While the introduction of online trading platforms has facilitated the buying and selling of foreign stocks, it’s still an onerous process. Many brokers can’t help you buy shares of a company trading on the Toronto Stock Exchange, for example — and Canada is a relatively accessible market. Want to buy or sell a stock on exchanges in Copenhagen, Stockholm, Brussels or Tokyo? You’ll have to submit specific paperwork and pay substantially higher brokerage commissions. There will also be foreign currency exchange fees if you choose to settle positions in U.S. dollars, as well as foreign tax withholding in some countries. Heck, even getting a ticker symbol and price quote can be tricky. —Recommended Link— The Government Can’t Hide This Forever There’s a secret way to increase your portfolio exponentially. A former secretary used it to turn $200 into $7 million. Read More