The major U.S. indices extended the previous week’s huge post-election gains, led by the small-cap Russell 2000 (2.6%) and tech-heavy Nasdaq 100 (1.2%). Although the S&P 500 only added 0.8%, the modest advance was broad based, with all sectors of the index posting gains except health care and consumer staples. Financial, energy and consumer discretionary stocks were the week’s best performers. The focus of this holiday-shortened week will be two housing-related reports and the minutes of the early November Federal Open Market Committee meeting. Investors will be poring over the minutes on Wednesday afternoon for clues as to whether the… Read More

The major U.S. indices extended the previous week’s huge post-election gains, led by the small-cap Russell 2000 (2.6%) and tech-heavy Nasdaq 100 (1.2%). Although the S&P 500 only added 0.8%, the modest advance was broad based, with all sectors of the index posting gains except health care and consumer staples. Financial, energy and consumer discretionary stocks were the week’s best performers. The focus of this holiday-shortened week will be two housing-related reports and the minutes of the early November Federal Open Market Committee meeting. Investors will be poring over the minutes on Wednesday afternoon for clues as to whether the Federal Reserve will hike short-term interest rates at the Dec. 13-14 meeting. In last week’s Market Outlook, I pointed out that the post-election rally positioned the benchmark S&P 500 index just below overhead resistance at 2,180 to 2,194. That resistance is officially being tested, but it will take a sustained rise above it to confirm the broader market’s next leg higher is underway. Investor Asset Flows Testing Important Threshold One of the few market metrics that actually leads price sometimes is investor asset flows. And the latest asset flows data in the SPDR Dow Jones Industrial Average ETF (NYSE: DIA)… Read More

It was classic Washington protectionism… disguised, of course, as “looking out for the little guy.” Regulators claimed that this kind of investing was too dangerous for “regular people,” so they made it off limits. Well, you know how these things work… It turns out that this “off-limits” niche of the market has helped a privileged few walk away with fortunes. Meanwhile, the other 97% of Americans were completely shut out — simply because they didn’t meet the SEC’s strict net-worth requirements. In other words, they simply weren’t rich enough to enter the playground enjoyed by elite investors. But on May… Read More

It was classic Washington protectionism… disguised, of course, as “looking out for the little guy.” Regulators claimed that this kind of investing was too dangerous for “regular people,” so they made it off limits. Well, you know how these things work… It turns out that this “off-limits” niche of the market has helped a privileged few walk away with fortunes. Meanwhile, the other 97% of Americans were completely shut out — simply because they didn’t meet the SEC’s strict net-worth requirements. In other words, they simply weren’t rich enough to enter the playground enjoyed by elite investors. But on May 16, 2016 everything changed. —Recommended Link— The Greatest Commodity Shortage In History It’s no secret the world faces shortages in many commodities. The world’s diminishing supply of everything from cocoa to coffee. lithium to lumber. phosphate to plutonium. silver to sugar. is of great concern. But there’s an even bigger and more imminent commodity shortage at hand that no one is talking about. Details here. On that Monday, the SEC opened up these restricted opportunities to you, me and everyone else in America. Now, for the first time since 1933, the… Read More

Things are changing in America. In fact, change will likely be the single word best describing the next several years in future history books.  #-ad_banner-#We are expecting a new presidential administration with grand visions of a thriving domestic economy. There will be a House and Senate united under a single-party majority, and business and personal income taxes are expected to be slashed. All these changes combine to create an economy supercharged with expansion. And all of this growth will be incredibly beneficial to the American people.  However, to economists and investors, there will likely be a dark side to such… Read More

Things are changing in America. In fact, change will likely be the single word best describing the next several years in future history books.  #-ad_banner-#We are expecting a new presidential administration with grand visions of a thriving domestic economy. There will be a House and Senate united under a single-party majority, and business and personal income taxes are expected to be slashed. All these changes combine to create an economy supercharged with expansion. And all of this growth will be incredibly beneficial to the American people.  However, to economists and investors, there will likely be a dark side to such rapid expansion. This dark side will be the Federal Reserve aggressively stepping in to slow the growth via interest rate increases. Rates have already started to ease higher, as evidenced by the 0.25% advance last December, in response to a successful fiscal stimulus program. We all know that higher interest rates are thought to slow economic growth and strengthen the U.S. dollar. However, don’t despair. Opportunities will abound in a climbing-rate environment. Stock market investors can profit from a climbing interest rate environment by going long greenback ETF’s like PowerShares DB US Dollar Index Bullish ETF (NYSE: UUP). Other sectors… Read More

While most polls got the outcome of the presidential election wrong, one prominent analyst called it exactly right.  On Oct. 31, Sam Stovall, chief investment strategist at CFRA, told CNBC that the S&P 500’s 2.2% decline from the end of July through the end of October indicated that Trump should win. Historically, a decline in stock prices over those three months has forecast a win for the candidate from the party that is not in the White House. Stovall noted this indicator was correct in seven of the eight past instances, a win rate of more than 87%. Statistically, you… Read More

While most polls got the outcome of the presidential election wrong, one prominent analyst called it exactly right.  On Oct. 31, Sam Stovall, chief investment strategist at CFRA, told CNBC that the S&P 500’s 2.2% decline from the end of July through the end of October indicated that Trump should win. Historically, a decline in stock prices over those three months has forecast a win for the candidate from the party that is not in the White House. Stovall noted this indicator was correct in seven of the eight past instances, a win rate of more than 87%. Statistically, you could argue the sample size is too small to be meaningful, but the logic behind the indicator is simple.  A rising stock market reflects a public that is most likely happy with the economy. Because they are generally satisfied with the way things are, they vote for more of the same. On the other hand, a declining stock market reflects pessimism. People are either selling or not buying stocks because they’re worried about the future. When they vote, they want a change. ​This indicator proved to be right once again, and even though we now know Donald Trump will be… Read More

If there is one certainty during a Trump presidency it’s that America’s relationship with its southern neighbor will be changing.  President-elect Trump has not only promised to reassess America’s trade agreements, most of all the North American Free Trade Agreement (NAFTA), but to also reinforce the nation’s border with Mexico. Read More

There are three primary factors that should come into play whenever choosing a winning stock for a long-term investment.  The shares must be undervalued, they must possess a solid dividend yield, and there must be internal and external catalysts that will push shares higher. #-ad_banner-#I have identified a company that… Read More

May 2016 marked an historic event for individual investors, yet it was largely neglected by Wall Street and the mainstream media.  The new opportunity revolves around an asset class that has meant out-sized returns for the wealthy and has remained off-limits to everyone else. Regulations around access to this investment have also meant limited funding for entrepreneurship in America. Now for the first time since 1933, individual investors have been given the same access to this market, and it could be bigger than the Internet boom of the 1990s. — Recommended Link — Which Stock Indicator Is Most Accurate? Click here for… Read More

May 2016 marked an historic event for individual investors, yet it was largely neglected by Wall Street and the mainstream media.  The new opportunity revolves around an asset class that has meant out-sized returns for the wealthy and has remained off-limits to everyone else. Regulations around access to this investment have also meant limited funding for entrepreneurship in America. Now for the first time since 1933, individual investors have been given the same access to this market, and it could be bigger than the Internet boom of the 1990s. — Recommended Link — Which Stock Indicator Is Most Accurate? Click here for the revealing answer. I’m talking about the concept of investing in companies before they go public on the major stock exchanges — specifically, investing in pre-IPO companies with equity crowdfunding. #-ad_banner-#If this sounds new to you, then pay close attention, because it’s going to change the very idea of investing as you know it. And understanding this new opportunity means looking deeper and knowing where to find the analysis you need to move the odds in your favor. Your Ticket To ‘The Next Big Thing’ Until this year, by law, only the wealthiest among us could invest in “pre-IPO”… Read More