As the broader market bull looks ready to be put out to pasture, one beaten-down group may be about to turn higher.  Since we’re looking at the early stages of a potential multiyear uptrend for the sector, traders who get in now could see substantial gains. And one market leader that is trading at fire-sale prices and throws off a 5% dividend yield could be the perfect way to play this turnaround. #-ad_banner-#​Cycles Always Come Full Circle Agriculture is one of my favorite long-term themes, with global food demand set to outpace production capacity. This will drive the need… Read More

As the broader market bull looks ready to be put out to pasture, one beaten-down group may be about to turn higher.  Since we’re looking at the early stages of a potential multiyear uptrend for the sector, traders who get in now could see substantial gains. And one market leader that is trading at fire-sale prices and throws off a 5% dividend yield could be the perfect way to play this turnaround. #-ad_banner-#​Cycles Always Come Full Circle Agriculture is one of my favorite long-term themes, with global food demand set to outpace production capacity. This will drive the need for fertilizers — an extremely cyclical sector that has finally started to rebound. Fertilizer producers have felt a lot of pain over the past several years. Booming capacity in China was one culprit, as it led to price pressure from imports. Another was lower crop prices, due in part to record high harvests, which weakened demand for fertilizer. However, it looks like these pressures are set to ease, leaving U.S. fertilizer producers primed for a rebound.  Shares of CF Industries (NYSE: CF), the largest nitrogen fertilizer producer in North America, are more than 65% off their 2015 highs. But they are set… Read More

The primary way investors create long-term wealth in the stock market is by riding trends. I am not talking about price trends but rather the overall societal and technological macro-trends that come together to change the world.  Trillions of dollars have been made by identifying these macro trends and purchasing shares in companies riding them. The trick is identifying companies that are leaders in their niche — the companies that possess the momentum and fortitude to withstand resistance to change, and are the first movers into the space. These three fundamental factors are what distinguish long-term winners in the stock… Read More

The primary way investors create long-term wealth in the stock market is by riding trends. I am not talking about price trends but rather the overall societal and technological macro-trends that come together to change the world.  Trillions of dollars have been made by identifying these macro trends and purchasing shares in companies riding them. The trick is identifying companies that are leaders in their niche — the companies that possess the momentum and fortitude to withstand resistance to change, and are the first movers into the space. These three fundamental factors are what distinguish long-term winners in the stock market. #-ad_banner-#One major macro societal and technological trend right now is the move to a mobile society. This trend is driven by the ubiquitous use of smartphones powered by Apple (Nasdaq: AAPL) and other companies in the space. We are all familiar with the fortunes that were made by those who jumped aboard this trend as early investors.  The trend toward making everything mobile has also led to the development of various sub-trends. One of the most exciting and world changing sub-trends is the move toward decoupling the transfer of money from banks and other traditional financial institutions to upstart… Read More

A few days ago, I told you about a little-known indicator that’s making a small group of investors a lot of money. #-ad_banner-#Unlike other indicators, it’s precise and simple to use. You don’t have to interpret its meaning. It completely takes the guesswork out of investing. Frankly, I haven’t seen anything like it in all my years of working in the financial industry. We call this indicator the “Maximum Profit Score,” because it consistently beats the market and often with less risk than buy-and-hold investing. It can flag exactly which stocks are about to jump double and triple digits… Read More

A few days ago, I told you about a little-known indicator that’s making a small group of investors a lot of money. #-ad_banner-#Unlike other indicators, it’s precise and simple to use. You don’t have to interpret its meaning. It completely takes the guesswork out of investing. Frankly, I haven’t seen anything like it in all my years of working in the financial industry. We call this indicator the “Maximum Profit Score,” because it consistently beats the market and often with less risk than buy-and-hold investing. It can flag exactly which stocks are about to jump double and triple digits in the coming days… weeks… and months.  — Recommended Link — October 28th Announcement Takes Musk Out of Car Business​ You might think Tesla would be Elon’s cash cow… but it’s not. You’ll be surprised to find he’s got his eyes on an even more lucrative endeavor. One that’s potentially bigger than GM, Toyota, and even Apple…combined. Click here to grab a piece this trillion-dollar golden goose for yourself.​ For example, you are probably familiar with the discount airline Southwest Airlines (NYSE: LUV). Back in May 2014, the stock was going nowhere and there was no indication it would take… Read More

The Federal Reserve has been teasing the market with an interest rate hike for most of the last five years. Finally, it looks like the most powerful central bank in the world is finally ready to make good on its promise. And while that may be considered a threat to industries that rely on cheap cash, it would be a $1.5 billion profit trigger for one of the four largest banks in the United States. Let me explain. Expectations for a Fed rate hike in December recently spiked to a multi-month high. #-ad_banner-#The Federal Funds Futures, a contract traded at… Read More

The Federal Reserve has been teasing the market with an interest rate hike for most of the last five years. Finally, it looks like the most powerful central bank in the world is finally ready to make good on its promise. And while that may be considered a threat to industries that rely on cheap cash, it would be a $1.5 billion profit trigger for one of the four largest banks in the United States. Let me explain. Expectations for a Fed rate hike in December recently spiked to a multi-month high. #-ad_banner-#The Federal Funds Futures, a contract traded at the Chicago Mercantile Exchange that calculates the probability of a rate hike, just hit a multi-month high of 64%. Minutes from the Fed’s September 20-21 meetings reveal that its 7-3 vote to leave rates unchanged was a “close call” and that voting members planned to raise rates “relatively soon.”Both of these indicators point to a high probability that the Fed will finally pull the trigger on raising interest rates before the end of the year. For industries such as real estate and building that rely on low interest rates, this isn’t great news. It threatens to restrict the easy flow… Read More

When I first noticed a bearish triangle formation on the chart of the S&P 500, I had a strong sense that a sell-off was coming. This is one of the more powerful bearish signals, and sure enough, the dramatic drop on October 11 and lack of an immediate bounce demonstrated underlying weakness. With market fundamentals still shaky, this could very well be the start of a larger correction. An Earnings Downturn To Rival The Great Recession Even though earnings growth is expected to turn positive in the fourth quarter, it’s much too soon to break out the champagne. Analysts expect Q3… Read More

When I first noticed a bearish triangle formation on the chart of the S&P 500, I had a strong sense that a sell-off was coming. This is one of the more powerful bearish signals, and sure enough, the dramatic drop on October 11 and lack of an immediate bounce demonstrated underlying weakness. With market fundamentals still shaky, this could very well be the start of a larger correction. An Earnings Downturn To Rival The Great Recession Even though earnings growth is expected to turn positive in the fourth quarter, it’s much too soon to break out the champagne. Analysts expect Q3 to be the sixth straight quarter of declining earnings growth, tying the Great Recession for the longest earnings recession on record, according to data compiled by Bloomberg. #-ad_banner-# Goldman Sachs (NYSE: GS) Chief U.S. Equity Strategist David Kostin wrote in a note to clients that they should expect a below-average number of companies to report positive earnings surprises.  What’s more, he said: “We see a weak third-quarter reporting season coupled with negative fourth-quarter EPS revisions pushing stocks 2 percent lower to our year-end target of 2,100.”  Earnings growth has been negative… Read More

We are a nation of discount shoppers. Just like stock market investors love to buy shares at a discount, consumers love to find bargains when shopping. Retailers exploit this discount purchasing desire in numerous ways. Consumer savvy sellers do everything from issuing discount coupons and participating in loss-leader Groupon-type programs, to holding sales events and carefully setting price amounts to psychologically pleasing figures. Discount shopping is such a dominant force that the International Monetary Fund listed discount retailer Walmart (NYSE: WMT) as 28th on the list of the world’s largest economies in 2013. This means that the discount retailer’s economic… Read More

We are a nation of discount shoppers. Just like stock market investors love to buy shares at a discount, consumers love to find bargains when shopping. Retailers exploit this discount purchasing desire in numerous ways. Consumer savvy sellers do everything from issuing discount coupons and participating in loss-leader Groupon-type programs, to holding sales events and carefully setting price amounts to psychologically pleasing figures. Discount shopping is such a dominant force that the International Monetary Fund listed discount retailer Walmart (NYSE: WMT) as 28th on the list of the world’s largest economies in 2013. This means that the discount retailer’s economic power is greater than most nations, serving as a testament to the success of the discount shopping model.   #-ad_banner-#The Next Level Of Discount Shopping An entire industry has emerged pushing the discount concept to the extreme in the brick & mortar space. Known as dollar stores, these deep-discount retailers have become a thriving industry, while creating over $25 billion in annual revenue. Dollar stores are defined as stores that sell most of their merchandise at a single low price. As the name suggests, the price is generally $1.00 or so per item. These retailers focus on regions that… Read More

Third quarter earnings have begun to come in, and an end to the five-quarter earnings recession for companies in the S&P 500 isn’t likely. Investors have continued to bid up stocks on the hope that earnings could rebound this quarter and that higher profits would overcome the wave of geopolitical and economic hurdles facing the market. But can the market continue higher without an earnings turnaround? If revenue and profits fail to grow as expected, how long can investors rationalize valuations well above historical averages? #-ad_banner-#I’m always looking for quality names and value, but put my search into overtime when… Read More

Third quarter earnings have begun to come in, and an end to the five-quarter earnings recession for companies in the S&P 500 isn’t likely. Investors have continued to bid up stocks on the hope that earnings could rebound this quarter and that higher profits would overcome the wave of geopolitical and economic hurdles facing the market. But can the market continue higher without an earnings turnaround? If revenue and profits fail to grow as expected, how long can investors rationalize valuations well above historical averages? #-ad_banner-#I’m always looking for quality names and value, but put my search into overtime when I start asking these questions. If the market fails to get all it wanted out of earnings season, companies that have proven their business models through good times and bad may be the only safe investments in the ensuing selloff. Can The Market Break Its Earnings Recession? Alcoa (NYSE: AA) shocked the market last Tuesday missing on both sales and earnings, as questions arise about whether companies in the S&P 500 can break their long-running earnings drought. The miss sent shares tumbling more than 11%, while the S&P 500 fell by 1.25%, for its biggest daily drop in a… Read More