I want to let you in on a secret… Wall Street doesn’t make most of its money from the stock market. While trading equities constitutes a large part of “big banking,” if you were to add the value of all the stocks in the world it would only come out $36.6 trillion. Don’t get me wrong, that’s a big number. It’s also one reason brokerage commissions have been the bread and butter of Wall Street firms since the New York Stock Exchange was founded in 1817. But the truth is there’s a much bigger market out there. This market, which… Read More

I want to let you in on a secret… Wall Street doesn’t make most of its money from the stock market. While trading equities constitutes a large part of “big banking,” if you were to add the value of all the stocks in the world it would only come out $36.6 trillion. Don’t get me wrong, that’s a big number. It’s also one reason brokerage commissions have been the bread and butter of Wall Street firms since the New York Stock Exchange was founded in 1817. But the truth is there’s a much bigger market out there. This market, which is valued at over $790 trillion, has grown exponentially since the Securities and Exchange Commission deregulated it in the 1990s. And the best part about this market is that it’s open to everybody. You don’t have to be a multi-million-dollar hedge fund manager or a Wall Street guru to take advantage of it. All you need is a brokerage account and a few thousand dollars to get started. —Recommended Link— Breaking Story: $4.3 Billion Awarded To Fight New Epidemic In an unprecedented move, the Department of Health and Human Services has just green-lighted $4.3 billion to fight this threat. Read More

Major U.S. indices advanced modestly last week, with most tacking on 0.5% or less. This suggests expectations for lower corporate taxes and fewer regulations from a Trump presidency may be fully priced into the market.  If this is indeed the case, I believe it will open the door for a period of seasonal weakness during the first quarter, similar to the one we saw last year, which resulted in an almost 19% decline in the broader market S&P 500 from the Dec. 29 high to the Feb. 11 low. #-ad_banner-#From a sector standpoint, the market was essentially split down the… Read More

Major U.S. indices advanced modestly last week, with most tacking on 0.5% or less. This suggests expectations for lower corporate taxes and fewer regulations from a Trump presidency may be fully priced into the market.  If this is indeed the case, I believe it will open the door for a period of seasonal weakness during the first quarter, similar to the one we saw last year, which resulted in an almost 19% decline in the broader market S&P 500 from the Dec. 29 high to the Feb. 11 low. #-ad_banner-#From a sector standpoint, the market was essentially split down the middle last week, indicating investor indecision. Financials, technology, industrials and utilities outperformed the S&P 500, while real estate, materials, health care, energy, and consumer discretionary underperformed.  Keep Watching Overhead Resistance In last week’s Market Outlook, I pointed out that the Dow Jones Transportation Average was testing major overhead resistance at its 9,310 November 2014 high. I said that as long as this level continued to hold, it suggested the correction I’ve been expecting may finally be beginning. This week’s first chart shows the NYSE Composite also recently tested and failed to break overhead resistance at its 11,255 May 2015… Read More

Some sectors are just naturally prone to multi-year, boom-and-bust cycles. Higher demand boosts prices and sets forth a rush in exploration or production. Profits soar and investors book market-beating gains until supply starts to overwhelm demand. #-ad_banner-#When the bust begins, prices sink and weaker stock prices can persist for years. Companies all but stop spending on capital investments in their haste to protect cash flows. The years of underperformance can end abruptly when the cycle resets. It’s easy to miss out on the initial rebound as stock prices surge. Industrial metals and miners are currently in the middle of such… Read More

Some sectors are just naturally prone to multi-year, boom-and-bust cycles. Higher demand boosts prices and sets forth a rush in exploration or production. Profits soar and investors book market-beating gains until supply starts to overwhelm demand. #-ad_banner-#When the bust begins, prices sink and weaker stock prices can persist for years. Companies all but stop spending on capital investments in their haste to protect cash flows. The years of underperformance can end abruptly when the cycle resets. It’s easy to miss out on the initial rebound as stock prices surge. Industrial metals and miners are currently in the middle of such a comeback, staging what could be part of a multi-year boom in 2016. And many players have already zoomed higher. Stocks are being priced on the continued rebound in profits and it’s becoming difficult to find value left in the space. But one market leader hasn’t participated in the rally. It benefits from some of the lowest production costs in its industry and could soon be getting a boost from government policy. Are Miners Due For A Multi-Year Run? Metals and mining stocks have been one of the best performers this year after trailing for nearly five years. The… Read More

I hope this finds you and your family well as the holidays approach. As a kid, I used to spend this time frantically flipping through the Sears catalog in search of last-minute ideas for my Christmas list. I may be dating myself here, as the iconic catalog was discontinued in 1993 after more than a century in print.  This is one tradition that today’s youth won’t get to experience. But that doesn’t mean retailers can’t reach them (or their parents) through other channels. Print advertising might be in decay, but sellers have adopted other inventive ways of separating us from… Read More

I hope this finds you and your family well as the holidays approach. As a kid, I used to spend this time frantically flipping through the Sears catalog in search of last-minute ideas for my Christmas list. I may be dating myself here, as the iconic catalog was discontinued in 1993 after more than a century in print.  This is one tradition that today’s youth won’t get to experience. But that doesn’t mean retailers can’t reach them (or their parents) through other channels. Print advertising might be in decay, but sellers have adopted other inventive ways of separating us from our money, particularly in the digital realm. A good chunk of corporate ad budgets is spent in November and December as retailers gear up for the holiday rush. Few disclose exactly how much they spend trying to sway shoppers, but the Guardian (a British media group) estimates that U.K. companies plowed a record 5.6 billion pounds into fourth-quarter advertising last year.  You can bet their larger U.S. counterparts spend even more.  — Recommended Link — The Secure Way To Add $19,632 To Your Bankroll This Year This “Daily Paycheck Retirement Solution” is so powerful, it’s generating more than $1,600 in income… Read More

While looking for a place to sit near the Great Wall of China, my Chinese interpreter snatched a plate of food from my hands. She immediately tossed it into the trash. Stunned that the only food available in the last 14 hours was now sitting in a trashcan, I was… Read More

2016 has been a great year to be a stock market investor. All the major indexes have moved solidly higher, providing profits for short-term traders and long-term investors alike. Dark, bearish fears of the regulatory regime change have been proven wrong as the indexes accelerate on the upside. There is even a chance for the DJIA to break 20,000 before 2017, an unthinkable accomplishment just a few months ago. Thanks to the monster bull market of 2016, nearly everyone is sitting on substantial profits as the year winds down. I can feel the excitement and anticipation whenever I speak with… Read More

2016 has been a great year to be a stock market investor. All the major indexes have moved solidly higher, providing profits for short-term traders and long-term investors alike. Dark, bearish fears of the regulatory regime change have been proven wrong as the indexes accelerate on the upside. There is even a chance for the DJIA to break 20,000 before 2017, an unthinkable accomplishment just a few months ago. Thanks to the monster bull market of 2016, nearly everyone is sitting on substantial profits as the year winds down. I can feel the excitement and anticipation whenever I speak with my fellow investors. The optimism and positive energy are truly off the charts wherever stock market investors gather. One thing that I have noticed is that many investors are so excited about their success, they forget about the taxes due by April 15. Investors of all types still must return a portion of their gains to Uncle Sam come Tax Day.  And some will be shocked at the amount owed! The good news is that there are several legal ways to mitigate your 2016 federal tax bill. Before we get started, it is critical to note that I am not… Read More

In November 1906, Teddy Roosevelt found himself working the controls of a large steam shovel. Crowds of press members, natives and curious onlookers watched as flash bulbs went off, preserving the peculiar image for posterity.  Beneath the President’s handshakes and famous toothy grin was a sense of worry. After all, his legacy was on the line. Nearly two years in, workers had little to show in the way of progress. The inhospitable jungles and swamps, combined with sweltering temperatures, snakes, mosquitoes, smallpox, yellow fever and malaria meant that the work was not only back-breaking, but treacherous. Roosevelt was hoping his… Read More

In November 1906, Teddy Roosevelt found himself working the controls of a large steam shovel. Crowds of press members, natives and curious onlookers watched as flash bulbs went off, preserving the peculiar image for posterity.  Beneath the President’s handshakes and famous toothy grin was a sense of worry. After all, his legacy was on the line. Nearly two years in, workers had little to show in the way of progress. The inhospitable jungles and swamps, combined with sweltering temperatures, snakes, mosquitoes, smallpox, yellow fever and malaria meant that the work was not only back-breaking, but treacherous. Roosevelt was hoping his visit would boost morale. He was no stranger to hardship — and he had insisted that “No single great material work which remains to be undertaken on this continent is as of such consequence to the American people.”  —Sponsored Link— Here’s A Rare Chance To Build Unbelievable Wealth! When the stock market crashed in 1929, millions were devastated. But a savvy few used the crisis to catapult themselves into unprecedented wealth and fortune. How?  Inheritance? Business ventures? A deal with the devil?  No, they became some of the richest, most influential Americans in history by… Read More

Stock investors have truly been blessed in 2016. The major averages have been rocketing higher despite dire predictions of a crash due to the uncertainty revolving around the current president-elect. Rather than dropping on this uncertainty, stocks have embraced the pro-business and nationalistic stance of the pending administration with an incredible vigor. But it poses the question: Is this the end of the bull market? To answer this vexing question, I decided to take a close look at the most popular stock market barometer for answers. What I discovered was surprising. While no one knows for certain what the future… Read More

Stock investors have truly been blessed in 2016. The major averages have been rocketing higher despite dire predictions of a crash due to the uncertainty revolving around the current president-elect. Rather than dropping on this uncertainty, stocks have embraced the pro-business and nationalistic stance of the pending administration with an incredible vigor. But it poses the question: Is this the end of the bull market? To answer this vexing question, I decided to take a close look at the most popular stock market barometer for answers. What I discovered was surprising. While no one knows for certain what the future holds, my research reveals that the bull market could easily last another two or more years. What Has Happened So Far? At the time of this writing, the Dow Jones Industrial Average (DJIA) has pushed another 100 points higher into the 19,900 area. Early in 2016, the DJIA hit a low in the 15,450 zone on pre-election jitters. Since that time, this index, affectionately known as the stock market barometer, has added over 14% in a steady climb higher. In the short time since the election, the index has risen by over 8%. #-ad_banner-#These figures mean that the DJIA… Read More

They said they would do it, and they did it. And they just told us to brace for more. The U.S. central bankers last week hiked the main interest rate for just the second time since the Great Recession.  This 25 basis-point increase in the Fed Funds rate, which just happened to come about a year after the first one tripped up the stock market rally, was telegraphed well in advance. Almost everyone expected this result as the Federal Open Market Committee (FOMC) meeting concluded on Wednesday, Dec. 14.  Even before the December meeting, U.S. Treasuries of all maturities came… Read More

They said they would do it, and they did it. And they just told us to brace for more. The U.S. central bankers last week hiked the main interest rate for just the second time since the Great Recession.  This 25 basis-point increase in the Fed Funds rate, which just happened to come about a year after the first one tripped up the stock market rally, was telegraphed well in advance. Almost everyone expected this result as the Federal Open Market Committee (FOMC) meeting concluded on Wednesday, Dec. 14.  Even before the December meeting, U.S. Treasuries of all maturities came under selling pressure, with interest rates rallying. One reason was the widespread optimism about economic growth and the ensuing equity rally. Another reason was the market speculating that the economy was strong, and that economic data would mean the Fed guiding for more than two rate hikes in 2017. In fact, it’s likely that not two but three interest rate hikes are in the cards for 2017. This is what the Fed signaled at the December meeting, and, given the latest economic data combined with policy outlook, this scenario seems plausible.  Investors, especially income-starved retirees, have many questions: What will… Read More