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

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

There aren’t any players with a bigger impact on the market than hedge funds. Not only are hedge funds thought leaders, employing thousands of forensic analysts to sniff out the best investment opportunities, they are also huge, frequently carrying multibillion-dollar positions that can single-handedly move a market. That’s why hedge funds have gained a cult following, watched closely by investors trying to gain insight into what the biggest players… Read More

There aren’t any players with a bigger impact on the market than hedge funds. Not only are hedge funds thought leaders, employing thousands of forensic analysts to sniff out the best investment opportunities, they are also huge, frequently carrying multibillion-dollar positions that can single-handedly move a market. That’s why hedge funds have gained a cult following, watched closely by investors trying to gain insight into what the biggest players on the Street are up to. A signal that a hedge fund or the entire industry is hot for a new stock can send shares soaring. And that’s exactly what is happening to the most popular stock among hedge funds during the first quarter. This market leader has been on a tear, up 36% on the year after hedge funds poured $1.6 billion into its shares in the first quarter. Read More

There aren’t any players with a bigger impact on the market than hedge funds. Not only are hedge funds thought leaders, employing thousands of forensic analysts to sniff out the best investment opportunities, they are also huge, frequently carrying multibillion-dollar positions that can single-handedly move a market. That’s why hedge funds have gained a cult following, watched closely by investors trying to gain insight into what the biggest players on the Street… Read More

There aren’t any players with a bigger impact on the market than hedge funds. Not only are hedge funds thought leaders, employing thousands of forensic analysts to sniff out the best investment opportunities, they are also huge, frequently carrying multibillion-dollar positions that can single-handedly move a market. That’s why hedge funds have gained a cult following, watched closely by investors trying to gain insight into what the biggest players on the Street are up to. A signal that a hedge fund or the entire industry is hot for a new stock can send shares soaring. And that’s exactly what is happening to the most popular stock among hedge funds during the first quarter. This market leader has been on a tear, up 36% on the year after hedge funds poured $1.6 billion into its shares in the first quarter. I’m… Read More

When I write about micro-cap stocks (which typically have market values of less than $200 million), I always focus on several at once. This approach highlights the necessity of ensuring that any one of these speculative stocks doesn’t account for more than a sliver of a portfolio. Some micro-caps can fare quite well, while others sink like a stone. I was thinking about this basket approach to micro-caps recently while reviewing a column I wrote early last… Read More

When I write about micro-cap stocks (which typically have market values of less than $200 million), I always focus on several at once. This approach highlights the necessity of ensuring that any one of these speculative stocks doesn’t account for more than a sliver of a portfolio. Some micro-caps can fare quite well, while others sink like a stone. I was thinking about this basket approach to micro-caps recently while reviewing a column I wrote early last year. Since then, GSE Systems (NYSE: GVP) has been a dud, dropping 26% as the company’s focus on nuclear power-plant training services has fallen out of favor. But the other two picks in that column are faring quite well and appear to still have ample upside. Looking at the reasons why that’s the case can also point the way to the pillars of success in micro-cap investing. 1. Biolase Technology (Nasdaq:… Read More