The post-election rally stalled last week, following the prior week’s big advance. While most major U.S. indices closed relatively unchanged, the small-cap Russell 2000 was the exception. After hitting a high of 1,393 on Dec. 9, essentially meeting the 1,400 upside target I initiated in June, the index fell 1.7% last week. #-ad_banner-#Interestingly, all sectors of the S&P 500 finished last week in negative territory except for health care (+1.1%), utilities (+0.9%) and consumer staples (+0.02%), which are all defensive sectors. This was a complete reversal of the previous week’s broad-based rally. This internal weakness warns that a deeper decline… Read More

The post-election rally stalled last week, following the prior week’s big advance. While most major U.S. indices closed relatively unchanged, the small-cap Russell 2000 was the exception. After hitting a high of 1,393 on Dec. 9, essentially meeting the 1,400 upside target I initiated in June, the index fell 1.7% last week. #-ad_banner-#Interestingly, all sectors of the S&P 500 finished last week in negative territory except for health care (+1.1%), utilities (+0.9%) and consumer staples (+0.02%), which are all defensive sectors. This was a complete reversal of the previous week’s broad-based rally. This internal weakness warns that a deeper decline may be coming between now and early next year. Another Sign The Market Is Too Complacent In last week’s Market Outlook, I discussed the potential for an additional 3% rise in the Dow Jones Industrial Average to 20,400 before historically weak January/February seasonality kicks in. But I also pointed out that the market remains too complacent, according to the Volatility S&P 500 (VIX), for it to go much higher without a pullback first. This week’s first chart shows that put-to-call ratios are corroborating the extreme complacency in the VIX. The lower panel plots the 5-day moving average of the… Read More

Initial public offerings (IPOs) can be the most profitable stock market investments on the face of the earth. Every investor has heard tales of, or been fortunate enough to participate in, newly issued stocks that have returned gains in the hundreds of percentage points over the holding period. Often, it’s only the insiders who can earn those incredible returns from an IPO. This is because the underwriter of the IPO deal allocates shares to its ideal institutional client, who in turn typically distributes them to their best customers at the public offering price. Unless you are a major customer of… Read More

Initial public offerings (IPOs) can be the most profitable stock market investments on the face of the earth. Every investor has heard tales of, or been fortunate enough to participate in, newly issued stocks that have returned gains in the hundreds of percentage points over the holding period. Often, it’s only the insiders who can earn those incredible returns from an IPO. This is because the underwriter of the IPO deal allocates shares to its ideal institutional client, who in turn typically distributes them to their best customers at the public offering price. Unless you are a major customer of the institution or have insider connections there, the odds of getting in first are slim to none. #-ad_banner-#Those lucky enough to obtain an allocation can sell the shares for a fast profit, a tactic known as flipping. Fortunes have been made by investors who get the chance to participate in this lucrative technique. However, it is important to note that employees and company officials are barred from flipping their shares for a profit. Called a lock-up, this SEC rule mandates that employees and management not sell their IPO shares for a minimum of 90 days after the IPO date. The… Read More

In a recent article, I discussed how to profit from an “Uber Moment”, referencing the wildly successful and revolutionary ridesharing app that has changed the transportation industry. Most industries are currently experiencing some sort of significant cultural or technological upheaval, an “Uber moment,” that will rapidly transform how they do business. And nowhere is that more apparent than in an industry that I know intimately, the financial advice business. #-ad_banner-#Historically dominated by large brokerage firms, the business of providing financial and investment advice and accompanying products to individuals has seen constant evolution in recent years. The rise of discount brokerage… Read More

In a recent article, I discussed how to profit from an “Uber Moment”, referencing the wildly successful and revolutionary ridesharing app that has changed the transportation industry. Most industries are currently experiencing some sort of significant cultural or technological upheaval, an “Uber moment,” that will rapidly transform how they do business. And nowhere is that more apparent than in an industry that I know intimately, the financial advice business. #-ad_banner-#Historically dominated by large brokerage firms, the business of providing financial and investment advice and accompanying products to individuals has seen constant evolution in recent years. The rise of discount brokerage houses, internet-enabled stock trading, and financial deregulation has enabled many other financial intermediaries to scramble after a slice of the pie. However, while these changes have shaped the business significantly over the past 30 years or so, no single moment has had a bigger impact than the forthcoming Department of Labor Fiduciary Rule. Issued by the DOL in April of this year, the rule sets guidelines for financial services firms in providing advice and products related to client retirement accounts. Put simply, financial intermediaries must act in their clients’ best interest when managing retirement money. The catalyst for this rule… Read More

The cybersecurity market is projected to be worth over $200 billion by 2021. This translates to a 10% compound annual growth rate (CAGR) over the next five years. Now is the perfect time to grab a piece of this burgeoning industry. I have identified three perfect stocks primed to ride the wave to long-term profits. #-ad_banner-#First, let’s take a closer look at the market. The rapid expansion of cybersecurity is in response to a major problem facing our internet-connected society. Many incidents of fraud, theft, and other illegal activities have moved from the physical world to a far more difficult… Read More

The cybersecurity market is projected to be worth over $200 billion by 2021. This translates to a 10% compound annual growth rate (CAGR) over the next five years. Now is the perfect time to grab a piece of this burgeoning industry. I have identified three perfect stocks primed to ride the wave to long-term profits. #-ad_banner-#First, let’s take a closer look at the market. The rapid expansion of cybersecurity is in response to a major problem facing our internet-connected society. Many incidents of fraud, theft, and other illegal activities have moved from the physical world to a far more difficult place to discover. While crime is still rampant in the physical world, a clear majority of white collar crime has moved into cyberspace. Police departments, and even many government agencies, are powerless to fight this hidden epidemic in the traditional fashion. In 2014, it was estimated that $445 billion is lost annually due to cybercrime. Cybercrime is targeted is at companies, governments, and individuals. Bloomberg reports that 40 million people in the United States had their personal information stolen within the last year. Also last year, an unnamed oil company lost hundreds of millions of dollars in business opportunities when… Read More

For the past few weeks, I’ve been telling readers about the exciting opportunities that have recently opened up for regular, average investors to own a stake in some of the most innovative companies in the world before they issue shares on the major exchanges. And while an initial public offering (IPO) is the Holy Grail for early-stage investors, often fetching multiples of many times your investment and higher, acquisitions are by far the most common exit. In my years of experience of being involved in the pre-IPO world, investor exits by acquisition make up about two-thirds of exits. That makes… Read More

For the past few weeks, I’ve been telling readers about the exciting opportunities that have recently opened up for regular, average investors to own a stake in some of the most innovative companies in the world before they issue shares on the major exchanges. And while an initial public offering (IPO) is the Holy Grail for early-stage investors, often fetching multiples of many times your investment and higher, acquisitions are by far the most common exit. In my years of experience of being involved in the pre-IPO world, investor exits by acquisition make up about two-thirds of exits. That makes the ability to analyze what makes a good acquisition target critical to your success as an early-stage investor. This isn’t an aptitude you’re born with, but it’s a skill you can learn. It’s a technique I’ve picked up in almost ten years working with venture capital firms and angel investors to find the best new startups. —Recommended Link— 96% Of Americans Are Missing Out On This Few people realize it, but the IRS offers a program that can eliminate your taxes in retirement. This escape clause is open to anyone. All you have to do is file a one-page… 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… Read More

Shares of jet-maker and defense specialist The Boeing Company (NYSE: BA) haven’t delivered the level of returns in 2016 that investors expected. As of Thursday, December 8, the stock had risen 7.5% for the year, compared to gains of 12.5% and 9.9% in the Dow Jones Industrial Average (DJI) and the S&P 500 Index (SPX), respectively. The Seattle-based aerospace giant attracted unwelcome attention after President-elect Donald Trump complained on Twitter about the cost of the new Air Force One, currently in development. Driven by the resulting negative headlines, Boeing stock fell more than more than 1%, though the shares ended… Read More

Shares of jet-maker and defense specialist The Boeing Company (NYSE: BA) haven’t delivered the level of returns in 2016 that investors expected. As of Thursday, December 8, the stock had risen 7.5% for the year, compared to gains of 12.5% and 9.9% in the Dow Jones Industrial Average (DJI) and the S&P 500 Index (SPX), respectively. The Seattle-based aerospace giant attracted unwelcome attention after President-elect Donald Trump complained on Twitter about the cost of the new Air Force One, currently in development. Driven by the resulting negative headlines, Boeing stock fell more than more than 1%, though the shares ended in positive territory after cooler heads prevailed. Despite these setbacks, Boeing stock can still take off in 2017 if the company can achieve a few operational objectives. Where Things Stand Today It’s become a challenge for Wall Street to celebrate Boeing’s recent accomplishments, which include two straight earnings beats and raised guidance. This is because, when looking at the company’s strong earnings reports, it comes with the understanding that Boeing also benefits from favorable tax adjustments. And its third-quarter earnings report, which resulted in a beat on both the top and bottoms lines, was the perfect example. #-ad_banner-#While the… Read More

Talk about game-changers… Back in late September, I told StreetAuthority readers about Twitter (Nasdaq: TWTR). The “other” social network, as we called it, was ripe for a turnaround — and possibly even a buyout, which is why my premium Game-Changing Stocks subscribers and I had recently added it to our portfolio. Whether you’re a fan, neophyte or doubter, you can’t help but notice that the company has now been in the news daily, courtesy of our president-elect. Donald Trump uses Twitter to instantly communicate to his 17 million followers, not to mention the media and millions of others who are… Read More

Talk about game-changers… Back in late September, I told StreetAuthority readers about Twitter (Nasdaq: TWTR). The “other” social network, as we called it, was ripe for a turnaround — and possibly even a buyout, which is why my premium Game-Changing Stocks subscribers and I had recently added it to our portfolio. Whether you’re a fan, neophyte or doubter, you can’t help but notice that the company has now been in the news daily, courtesy of our president-elect. Donald Trump uses Twitter to instantly communicate to his 17 million followers, not to mention the media and millions of others who are looking in — all serving to bring further attention to the platform. The same features that made Twitter indispensable in bringing social change have already made it a political tool and quite possibly a governing one, too. As investors, we cannot ignore this development. —Sponsored Link— By The Time Obama Hands Over The Keys, It Will Be TOO Late We’ve got evidence — from an ex-advisor to the CIA — that 19 days before Donald Trump takes the Oath of Office it will already be too late to “fix” America. How so? For the last… Read More