Bill Gates walks up to you in a bar. He sits down and says he wants you to make an important financial decision. “Would you rather accept a check for one million dollars right now, or a penny today that will double in value every day for the next 30 days?” Without pulling out a calculator, what would you do? #-ad_banner-#According to my own personal survey, most people would take the million dollars. However, this option leaves quite a bit of money on the table. By quite a bit I mean about $4 million. After 30 days, that one penny… Read More

Bill Gates walks up to you in a bar. He sits down and says he wants you to make an important financial decision. “Would you rather accept a check for one million dollars right now, or a penny today that will double in value every day for the next 30 days?” Without pulling out a calculator, what would you do? #-ad_banner-#According to my own personal survey, most people would take the million dollars. However, this option leaves quite a bit of money on the table. By quite a bit I mean about $4 million. After 30 days, that one penny doubling every day would be worth $5 million. This financial brain teaser is the reason the dividend aristocrats are enriching so many investors. Let me explain. The dividend aristocrats is the small group of S&P 500 companies that have raised their dividend every year for 20 years. In 2016, just 53 of the S&P 500 qualified for this elite distinction — a little more than 10% of the index. On the surface, most investors go for the higher yield, just like the lure of taking the $1 million from Bill Gates. I know because as an investment advisor, my clients… Read More

As you might expect, I get lots of requests from StreetAuthority readers looking to supercharge their income with payouts that are three to four times higher than the market average. I think one of my recent recommendations in my premium newsletter, High-Yield Investing, fits the bill (the stock has a yield of 8%).  #-ad_banner-#But I also receive letters from retirees willing to accept half of that in exchange for lower volatility and reliable “all-weather” performance. With capital preservation as the foremost goal, they don’t want to take risks with their nest egg. As such, these readers are mostly interested in… Read More

As you might expect, I get lots of requests from StreetAuthority readers looking to supercharge their income with payouts that are three to four times higher than the market average. I think one of my recent recommendations in my premium newsletter, High-Yield Investing, fits the bill (the stock has a yield of 8%).  #-ad_banner-#But I also receive letters from retirees willing to accept half of that in exchange for lower volatility and reliable “all-weather” performance. With capital preservation as the foremost goal, they don’t want to take risks with their nest egg. As such, these readers are mostly interested in rock-solid companies built to deliver consistent profit and dividend growth even in tough conditions.  We have a diverse audience in High-Yield Investing, so I try to provide a mix of recommendations that will speak to everybody. And the stock screen I’d like to share with you today is primarily aimed at more conservative investors. However, even younger subscribers with aggressive goals should tune in — because we’re looking at blue-chips that can help anchor your portfolio.  Why Consumer-Staple Stocks Belong In Your Portfolio There are many wild cards that could rattle the market in the weeks and months ahead…… Read More

Mark Zuckerberg is worth $60 billion, making him one of the richest people in the world. As the founder and CEO of Facebook, Inc. (Nasdaq: FB), one of the most successful technology companies ever, Zuckerberg is a genius when it comes to technology. #-ad_banner-#But despite Zuckerberg’s financial resources and tech smarts, the young billionaire recently fell prey to hackers. In early June, Zuckerberg’s Twitter and Pinterest accounts were hacked. The perpetrators found Zuckerberg’s passwords –“dadada” — in a database of more than 100 million usernames and passwords that were stolen from LinkedIn in 2012. Although Zuckerberg suffered little reputation damage… Read More

Mark Zuckerberg is worth $60 billion, making him one of the richest people in the world. As the founder and CEO of Facebook, Inc. (Nasdaq: FB), one of the most successful technology companies ever, Zuckerberg is a genius when it comes to technology. #-ad_banner-#But despite Zuckerberg’s financial resources and tech smarts, the young billionaire recently fell prey to hackers. In early June, Zuckerberg’s Twitter and Pinterest accounts were hacked. The perpetrators found Zuckerberg’s passwords –“dadada” — in a database of more than 100 million usernames and passwords that were stolen from LinkedIn in 2012. Although Zuckerberg suffered little reputation damage from the incident, the hacking was a bit embarrassing. After all, his company warns its users not to use their Facebook passwords anywhere else online. However, the hacking actually places Mark Zuckerberg in good company. Hacking is going viral in 2016. The headlines have been filled with high-profile hackings threatening the most powerful private and public institutions in the world. In May, Myspace was hacked and had 360 million email addresses and passwords stolen. Experts are saying it could be the largest hack ever. Last week Dropbox, one of the world’s largest suppliers of cloud storage, had more than 68… Read More

With the Federal Reserve seemingly conflicted about when to raise short-term interest rates, it is no wonder the market has been chopping sideways for weeks, unsure of which direction to break out. Some interest-rate sensitive sectors have fared worse, but this now sets up a buying opportunity.  Looking at the Treasury bond market, long-term interest rates have not budged since July. Currently, the benchmark 10-year rate appears ready to break down, which will send note and bond prices higher, as well as boost prices of interest-rate sensitive stocks. Read More

With the Federal Reserve seemingly conflicted about when to raise short-term interest rates, it is no wonder the market has been chopping sideways for weeks, unsure of which direction to break out. Some interest-rate sensitive sectors have fared worse, but this now sets up a buying opportunity.  Looking at the Treasury bond market, long-term interest rates have not budged since July. Currently, the benchmark 10-year rate appears ready to break down, which will send note and bond prices higher, as well as boost prices of interest-rate sensitive stocks. #-ad_banner-# Aside from all these intermarket machinations, the chart of the Dow Jones Utility Average looks ready to break out to the upside.  Traders can buy a utilities ETF to participate in the potential upside, but digging a little deeper into component stocks reveals some even better bets. Top on my list is Southern Company (NYSE: SO), which operates power-generating and transmission facilities throughout the southeastern states. The stock offers a 4.2% dividend yield and a bullish setup on the charts. SO fell from its 52-week high of $54.64, made on July 22, to an intraday low of $50 on… Read More

I think it’s safe to say market sentiment is not particularly positive these days. Billionaire investor Ken Fisher says this is the “most joyless” bull market ever seen, while my research has been warning for some time that we are headed for a market correction… or worse. When investors are worried about a sell-off, and even when stocks begin to correct, they flock to defensive sectors such as consumer staples and utilities. The companies in these sectors provide the goods and services people need whether we are in an economic boom or a recession. — Sponsored Link —… Read More

I think it’s safe to say market sentiment is not particularly positive these days. Billionaire investor Ken Fisher says this is the “most joyless” bull market ever seen, while my research has been warning for some time that we are headed for a market correction… or worse. When investors are worried about a sell-off, and even when stocks begin to correct, they flock to defensive sectors such as consumer staples and utilities. The companies in these sectors provide the goods and services people need whether we are in an economic boom or a recession. — Sponsored Link — This Shocking ‘September Surprise’ Could End Hillary’s Chances There’s evidence from an ex-advisor to the CIA that an event in September could derail any chance Hillary ever had of beating Donald Trump. It’s not another ISIS attack. It’s not another scandal. This is a planned financial announcement that could turn millions of Americans against the Obama legacy… and against Hillary, the one candidate who clings to it. Click here to get a sneak peek. Most defensive names also distribute dividends, allowing investors to park money in shares and collect a check even though… Read More

Normally when investors think of stocks trading on the over-the-counter exchange, it’s only after reading the headline on some penny stock scam. Most OTC-traded companies are thinly-traded and offer very limited financial information available to shareholders. For this reason, most OTC stocks are not normally covered by analysts, and are usually completely ignored by regular investors. That can mean outsized gains for investors that are willing to dig deeper into financials to uncover the companies that are more than just a postal address for a pump-and-dump scheme. Screening through OTC stocks recently, I found one company that could be the… Read More

Normally when investors think of stocks trading on the over-the-counter exchange, it’s only after reading the headline on some penny stock scam. Most OTC-traded companies are thinly-traded and offer very limited financial information available to shareholders. For this reason, most OTC stocks are not normally covered by analysts, and are usually completely ignored by regular investors. That can mean outsized gains for investors that are willing to dig deeper into financials to uncover the companies that are more than just a postal address for a pump-and-dump scheme. Screening through OTC stocks recently, I found one company that could be the furthest from what you would normally expect on the market. It’s building a consumer internet empire, and is already the largest company in Asia. In fact, it’s bigger than Facebook (Nasdaq: FB). #-ad_banner-# Building A Consumer Internet Empire China internet usage jumped to 668 million users last year, posting growth of 5.7% from the prior year, but still only bringing the percentage of connected users to 49% of the population. Considering  that internet usage by people between the ages of 10 and 40 is above 75%, the country could see outsized growth for decades as the entire population comes online. Read More

Today, we are in the midst of a technological renaissance. The power of a semiconductor (the heart of most of today’s technological innovation) doubles every two years, according to Moore’s Law.  #-ad_banner-#Elon Musk, the visionary behind PayPal, Tesla, Space X and more, recently remarked in an interview that the average smartphone user arguably has more power than the president of the United States had 20 years ago. If you think about it for a second, you can see how he has a point. You can answer any question, video conference or message practically anyone, anytime, anywhere — all… Read More

Today, we are in the midst of a technological renaissance. The power of a semiconductor (the heart of most of today’s technological innovation) doubles every two years, according to Moore’s Law.  #-ad_banner-#Elon Musk, the visionary behind PayPal, Tesla, Space X and more, recently remarked in an interview that the average smartphone user arguably has more power than the president of the United States had 20 years ago. If you think about it for a second, you can see how he has a point. You can answer any question, video conference or message practically anyone, anytime, anywhere — all in an instant.  Nearly every aspect of life is now digitized: from family photos and funny videos to medical records and bank statements. And while the convenience of our daily lives has grown exponentially thanks to the advances of digital technologically, so have the potential threats against individual Americans.  — Recommended Link — If You Get This Letter In The Mail, It Could Cost You $25,000 400,000 Americans just received notice that their retirement benefits could be slashed by 50%. Millions more could get their letters in the mail any day now. Click here to find out if your benefits are… Read More

The major U.S. indices posted modest gains last week, led by the Russell 2000, which rose 1.1%. Last week’s rally puts the small-cap index up 10.2% for 2016, which is by far the best year-to-date performance for any of “the majors.”  The mid-July breakout in the Russell 2000 continues to target a move to 1,400 — almost 12% above Friday’s close — that will remain valid as long as the late-June, post-Brexit lows are not broken. #-ad_banner-# Last week’s broad-based advance was once again led by the financial sector. The… Read More

The major U.S. indices posted modest gains last week, led by the Russell 2000, which rose 1.1%. Last week’s rally puts the small-cap index up 10.2% for 2016, which is by far the best year-to-date performance for any of “the majors.”  The mid-July breakout in the Russell 2000 continues to target a move to 1,400 — almost 12% above Friday’s close — that will remain valid as long as the late-June, post-Brexit lows are not broken. #-ad_banner-# Last week’s broad-based advance was once again led by the financial sector. The only sectors of the S&P 500 to post losses were health care, energy and consumer discretionary.  Lack Of Fear Keeping Stocks Afloat I first warned Market Outlook readers that near-term downside risk exceeded upside potential in the July 18 report, and I have continued to beat that drum ever since. Seven weeks later, the benchmark S&P 500 is essentially unchanged, up less than 1% and apparently still stuck in neutral.   There are a number of reasons why the rally has stalled, including historically low volatility according to the Volatility S&P 500 Index (VIX) and formidable overhead resistance at the… Read More