In recent days, investors might not have noticed a very unusual trend playing out in global markets. A number of once-robust currencies are in freefall against the U.S. dollar — and counterintuitively, that spells opportunity for U.S. investors. Looking For A Bottom From the South African rand and the Brazilian real to the Australian dollar, a worldwide slump is emerging. It’s very unusual for currencies to gain or lose value in a rapid fashion, but the recent charts are quite humbling, as this chart of the Australian dollar shows. Read More

In recent days, investors might not have noticed a very unusual trend playing out in global markets. A number of once-robust currencies are in freefall against the U.S. dollar — and counterintuitively, that spells opportunity for U.S. investors. Looking For A Bottom From the South African rand and the Brazilian real to the Australian dollar, a worldwide slump is emerging. It’s very unusual for currencies to gain or lose value in a rapid fashion, but the recent charts are quite humbling, as this chart of the Australian dollar shows. For U.S. investors with exposure to these markets, the currency shift eats away at a stock or fund‘s value, which comes on top of existing weakness in many foreign markets when denominated in their own currencies. For example, the iShares MSCI Australia Index Fund ETF (NYSE: EWA) has underperformed the S&P 500 by a stunning 20 percentage points since the… Read More

On June 7, I watched the Internet video feed from Las Vegas as Mike “The Mouth” Matusow pocketed $266,503 by winning the 13th event in the 2013 World Series of Poker. Matusow has won nearly $9 million playing tournament poker, and I’ve studied nearly every hand he has ever played. I even sat next to his mother the night he won $1 million in the Championship Event of the 2005 World Series of Poker. During his recent tournament, Matusow seldom had the lead. But he played a disciplined game. He folded many hands while his opponents wasted chips, chasing after… Read More

On June 7, I watched the Internet video feed from Las Vegas as Mike “The Mouth” Matusow pocketed $266,503 by winning the 13th event in the 2013 World Series of Poker. Matusow has won nearly $9 million playing tournament poker, and I’ve studied nearly every hand he has ever played. I even sat next to his mother the night he won $1 million in the Championship Event of the 2005 World Series of Poker. During his recent tournament, Matusow seldom had the lead. But he played a disciplined game. He folded many hands while his opponents wasted chips, chasing after hands they didn’t have the odds to win. Matusow’s patience and premium hand selection over the course of the three-day event were rewarded with the first-prize gold bracelet. I’ve played poker for more than a decade. I’ve had the opportunity to study — and go up against — some of the best professionals in the world. I’ve seen players amass big leads in a tournament, only to turn right around and give every chip back. In my experience, both as a poker player and an investor, the decision to not play a mediocre hand can be the most profitable decision… Read More

In China, economic prosperity has created a new class of affluent consumers with a nearly insatiable appetite for goods and services. For example, consider the $7.1 billion bid that China’s largest meat processor made last week for America’s largest hog farmer and pork producer. Shuanghui International Holding is looking to… Read More

Last August, StreetAuthority analyst Nathan Slaughter made a bold prediction. At the time, the price of natural gas had reached decade-low prices just a few months before, falling below $2 per thousand cubic feet (Mcf) in April of 2012. Nathan predicted that natural gas was due for a rebound. He also spotted a huge disconnect between the rising price of natural gas and the share prices of the companies that produce it. Since June 2012, the price of natural gas has doubled, reaching $4.40 in… Read More

Last August, StreetAuthority analyst Nathan Slaughter made a bold prediction. At the time, the price of natural gas had reached decade-low prices just a few months before, falling below $2 per thousand cubic feet (Mcf) in April of 2012. Nathan predicted that natural gas was due for a rebound. He also spotted a huge disconnect between the rising price of natural gas and the share prices of the companies that produce it. Since June 2012, the price of natural gas has doubled, reaching $4.40 in April before tapering off. Now, if we were to take a look at the share price for the stock of a “pure play” natural gas company (as opposed to one that produces a combination of gas and oil), we might expect the share price to mirror the price of gas. After all, the spread between how much it costs for these companies to drill for gas and how much they are able to sell it for on the open… Read More

For many dividend-paying stocks, it appears as if a “great rotation” has begun. One of the most lucrative investing themes of the past few years may be coming to an end as interest rates start to rise, heightening the relative appeal of fixed-income assets compared with riskier equities. The question for investors: As others start to flee, how can you know when it’s time to go against the… Read More

For many dividend-paying stocks, it appears as if a “great rotation” has begun. One of the most lucrative investing themes of the past few years may be coming to an end as interest rates start to rise, heightening the relative appeal of fixed-income assets compared with riskier equities. The question for investors: As others start to flee, how can you know when it’s time to go against the grain and load up on dividend-paying stocks?#-ad_banner-# Let’s be clear: Not all investors think we’re on the cusp of a sea change in interest rates. The global economy remains quite weak, with Europe stumbling to find an economic floor and China showing increasing signs of weakness. As long as the global economy is in a funk, some strategists expect that U.S. investors will continue to benefit from an environment of ultra-low interest rates. A few have suggested that… Read More

Supply and demand is what drives the global economic engine.#-ad_banner-# Imagine owning a company whose products and services have nearly guaranteed steady demand and government-regulated supply. Add in the beauty of government-supported monopoly-like power and steady dividend yields — and you’ve attained investor nirvana. Although these companies may be considered boring and overlooked by investors seeking rapid capital appreciation, they remain an ace in the hole for long-term stock investors. If you haven’t guessed, I’m talking about utility… Read More

Supply and demand is what drives the global economic engine.#-ad_banner-# Imagine owning a company whose products and services have nearly guaranteed steady demand and government-regulated supply. Add in the beauty of government-supported monopoly-like power and steady dividend yields — and you’ve attained investor nirvana. Although these companies may be considered boring and overlooked by investors seeking rapid capital appreciation, they remain an ace in the hole for long-term stock investors. If you haven’t guessed, I’m talking about utility stocks. Despite a recent pullback, these consistent and proven dividend machines are ideal “buy” candidates for any long-term portfolio. With this in mind, here are my two favorite utility stocks: Southern Co. (NYSE: SO) A leading U.S. provider of electricity, this large-cap public electric utility has a market capitalization of more than $38 billion and boasts a price-to-earnings (P/E) ratio of nearly 19. Southern has subsidiaries in four states, including Mississippi Power, Georgia Power, Gulf Power and Alabama Power. The company’s… Read More

Recently, I told you about the simple strategy that’s never lost money. Put simply, the longer you hold an investment, the better your chances of making a profit. The S&P 500 has never had a losing 20-year span, going all the way back to the 1950s. The key is finding a handful of companies that enjoy huge (and lasting) advantages over the competition… companies that pay their investors each and every… Read More

Recently, I told you about the simple strategy that’s never lost money. Put simply, the longer you hold an investment, the better your chances of making a profit. The S&P 500 has never had a losing 20-year span, going all the way back to the 1950s. The key is finding a handful of companies that enjoy huge (and lasting) advantages over the competition… companies that pay their investors each and every year by dishing out fat dividends… and companies buying back massive amounts of their own stock. Once you find them, the strategy is simple — just buy their shares and hold “Forever.” But if you want to see the best reason why investing “Forever” is the smartest way to let the market make you wealthy, pay attention to the… Read More

When it comes to assessing the outlook for drugmakers, investors really only care about the pipeline of new drugs. After all, existing drugs eventually lose patent protection, and when that happens, a large hole in the income statement… Read More

For many dividend-paying stocks, it appears as if a “great rotation” has begun. One of the most lucrative investing themes of the past few years may be coming to an end as interest rates start to rise, heightening the relative appeal of fixed-income assets compared with riskier equities. The question for investors: As others start to flee, how can you know when it’s time to go against the… Read More

For many dividend-paying stocks, it appears as if a “great rotation” has begun. One of the most lucrative investing themes of the past few years may be coming to an end as interest rates start to rise, heightening the relative appeal of fixed-income assets compared with riskier equities. The question for investors: As others start to flee, how can you know when it’s time to go against the grain and load up on dividend-paying stocks?#-ad_banner-# Let’s be clear: Not all investors think we’re on the cusp of a sea change in interest rates. The global economy remains quite weak, with Europe stumbling to find an economic floor and China showing increasing signs of weakness. As long as the global economy is in a funk, some strategists expect that U.S. investors will continue to benefit from an environment of ultra-low interest rates. A few have suggested that… Read More

My investing career has come nearly full circle from where I started. Back in the early 1990s, day trading was just coming into vogue as a viable way to make a living. The advent of the personal computer, discount… Read More