Volatility is often assumed to be a useful indicator. Many traders follow the CBOE Volatility Index (VIX) because they expect it to help them spot changes in the direction of price trends. VIX is helpful in finding turning points in the S&P 500 index because futures on that index are used to calculate VIX. In general, traders look for high levels as… Read More

Volatility is often assumed to be a useful indicator. Many traders follow the CBOE Volatility Index (VIX) because they expect it to help them spot changes in the direction of price trends. VIX is helpful in finding turning points in the S&P 500 index because futures on that index are used to calculate VIX. In general, traders look for high levels as a sign of a market bottom and low levels as a sign of a potential top. While VIX provides information about the general market, it doesn’t say much about specific stocks in the market. To find the right stock at the right time, traders need an indicator like VIX that can be calculated for any stock. So we created one: the Income Trader Volatility (ITV) indicator, a tool Amber Hestla-Barnhart uses in her Income Trader… Read More

Many investors are surprised to learn that a large percentage of the stock market gains over the past several decades is due to dividends. While the United States is a hotbed of stocks offering substantial dividend yield, international stocks can provide similar results. Although I would never suggest a portfolio made up of strictly of non-U.S. exchange-traded funds (ETFs), exposure to the international market makes good sense for diversification purposes. These under-the-radar ETFs have strong potential for growth as well as produce a respectable dividend yield while allowing for geographic diversification. DB X-trackers MSCI EAFE Hedged Equity Fund (NYSE: DBEF)… Read More

Many investors are surprised to learn that a large percentage of the stock market gains over the past several decades is due to dividends. While the United States is a hotbed of stocks offering substantial dividend yield, international stocks can provide similar results. Although I would never suggest a portfolio made up of strictly of non-U.S. exchange-traded funds (ETFs), exposure to the international market makes good sense for diversification purposes. These under-the-radar ETFs have strong potential for growth as well as produce a respectable dividend yield while allowing for geographic diversification. DB X-trackers MSCI EAFE Hedged Equity Fund (NYSE: DBEF) Hedged currency ETFs have earned a place in the spotlight this year. While the Federal Reserve has shown its appetite for aggressive easing measures, countries like Australia, New Zealand and a few emerging markets refuse to play along. This difference in strategy results in currency volatility.#-ad_banner-# Without going into unnecessary detail, suffice it to say that this volatility has created a demand for hedged currency ETFs. My favorite is the tiny DB X-trackers MSCI EAFE Hedged Equity Fund. With an average daily volume of about 12,000 shares, its relatively small size has kept it under the radar of many… Read More

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality… Read More

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality of increased gold production reminds us of the immutable laws of supply and demand. If the world needs more gold, producers will simply mine more. Of course, the next time we get a temporary inflation scare, you’ll hear lots of talk about gold again, as fearful investors seek bullion. What should you do? Ignore the crowd. If you really want to hedge against inflation, look to the types of… Read More

As Europe emerges from recession, investors are flocking to the region’s stocks to take advantage of current low valuations. Since July, when European bankers pledged to prevent a eurozone collapse, funds flowing into European stocks have risen by $5.5 billion, which is nearly equal to the total investment last year and the first year of big inflows into European stocks since 2007.#-ad_banner-# Part of the appeal is the… Read More

As Europe emerges from recession, investors are flocking to the region’s stocks to take advantage of current low valuations. Since July, when European bankers pledged to prevent a eurozone collapse, funds flowing into European stocks have risen by $5.5 billion, which is nearly equal to the total investment last year and the first year of big inflows into European stocks since 2007.#-ad_banner-# Part of the appeal is the possibility of further interest-rate cuts. This month, the European Central Bank lowered its main rate to a record low. A weak currency also helps European exports. In the past five years, the euro has depreciated 20% against the U.S. dollar. The main appeal, however, is the bargain prices on some blue-chip European stocks, which currently trade at average price-to-earnings (P/E) ratio of 12.5 and well below the S&P’s P/E of 19. Income investors can take… Read More

Canada continues to be a standout player in the global economy. While Europe and China struggle with recessionary conditions, Canada’s February GDP (gross domestic product) showed a solid 1.7% gain, its fastest pace since July 2012. January’s growth was also revised higher, giving the economy its two strongest back-to-back gains since July and August of 2011, causing many analysts to raise first-quarter GDP growth estimates to… Read More

Canada continues to be a standout player in the global economy. While Europe and China struggle with recessionary conditions, Canada’s February GDP (gross domestic product) showed a solid 1.7% gain, its fastest pace since July 2012. January’s growth was also revised higher, giving the economy its two strongest back-to-back gains since July and August of 2011, causing many analysts to raise first-quarter GDP growth estimates to 2.3% from 1.5%. The Canada economy continues to get a big boost from its mining and energy industries, with growth in mining, quarrying, and oil and gas extraction expanding 2.2%, the fifth straight increase. Mining and quarrying alone expanded 6.4% on higher output at potash mines. Output in oil and gas extraction rose 1% from higher oil production.#-ad_banner-# Canada is also benefiting from the fact that it didn’t fall as deeply into recession as many other countries did during the financial crisis. No Canadian bank needed a… Read More

There are many good reasons to look for stocks that the top hedge fund managers like. Activist managers such as Carl Icahn can shake a company up until shareholder value is unlocked. Warren Buffett‘s best ideas often have great long-term potential. But some fund managers can actually destroy value for other shareholders. During the past half decade, fund manager and Sears Holdings (Nasdaq: SHLD) CEO and Chairman Eddie Lampert… Read More

There are many good reasons to look for stocks that the top hedge fund managers like. Activist managers such as Carl Icahn can shake a company up until shareholder value is unlocked. Warren Buffett‘s best ideas often have great long-term potential. But some fund managers can actually destroy value for other shareholders. During the past half decade, fund manager and Sears Holdings (Nasdaq: SHLD) CEO and Chairman Eddie Lampert has taken millions of dollars out of his investment in the faltering retailer through a series of one-time payments to his investment firm, ESL Investments. And while Lampert was giving himself robust paydays, he’s virtually ignored the operational trends at Sears and Kmart, the company’s two major retail divisions.#-ad_banner-# Those stores have fared so badly that Standard & Poor’s kicked Sears out of its S&P 500 index last year, where Sears had been… Read More

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality… Read More

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality of increased gold production reminds us of the immutable laws of supply and demand. If the world needs more gold, producers will simply mine more. Of course, the next time we get a temporary inflation scare, you’ll hear lots of talk about gold again, as fearful investors seek bullion. What should you do? Ignore the crowd. If you really want to hedge against inflation, look to the types of… Read More

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality… Read More

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality of increased gold production reminds us of the immutable laws of supply and demand. If the world needs more gold, producers will simply mine more. Of course, the next time we get a temporary inflation scare, you’ll hear lots of talk about gold again, as fearful investors seek bullion. What should you do? Ignore the crowd. If you really want to hedge against inflation, look to the types of… Read More

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality… Read More

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality of increased gold production reminds us of the immutable laws of supply and demand. If the world needs more gold, producers will simply mine more. Of course, the next time we get a temporary inflation scare, you’ll hear lots of talk about gold again, as fearful investors seek bullion. What should you do? Ignore the crowd. If you really want to hedge against inflation, look to the types of… Read More

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality… Read More

Question: I’ve read that inflation could pick up in coming years. What can I do about it? The Investing Answer: Every few decades, investors start to grow concerned about the runaway effects of inflation. In response, they reflexively place their funds into gold, silver and other precious metals. But that’s a huge mistake — gold and these other hard assets are simply “perceived” hedges against inflation. As we’ve recently seen, gold prices have tumbled as the reality of increased gold production reminds us of the immutable laws of supply and demand. If the world needs more gold, producers will simply mine more. Of course, the next time we get a temporary inflation scare, you’ll hear lots of talk about gold again, as fearful investors seek bullion. What should you do? Ignore the crowd. If you really want to hedge against inflation, look to the types of… Read More