At the end of World War II, G.Is. had a little time to linger in Europe before heading home, so they embarked on the all-American pastime: shopping. The U.S. dollar was so strong, these soldiers could buy small items like boxes of chocolate — and big items like British motorcycles — at shockingly low prices. #-ad_banner-#Fifty years later, U.S. consumers found out what happens when a super-strong currency loses its luster. The U.S. dollar no longer buys as much abroad as it once did, and a shopping spree in Paris or London… Read More

At the end of World War II, G.Is. had a little time to linger in Europe before heading home, so they embarked on the all-American pastime: shopping. The U.S. dollar was so strong, these soldiers could buy small items like boxes of chocolate — and big items like British motorcycles — at shockingly low prices. #-ad_banner-#Fifty years later, U.S. consumers found out what happens when a super-strong currency loses its luster. The U.S. dollar no longer buys as much abroad as it once did, and a shopping spree in Paris or London will cost a lot of dough. Of course, the investment world has been feeling similar effects as well. The long-term fall in the dollar means U.S. companies can no longer snap up foreign rivals for a cheap price. But a falling dollar also means that any foreign assets that companies and investors own have risen in value. (Note that since the Great Recession of 2008, the… Read More

The only constant in life is change. This fact is doubly true when it comes to the fickle world of fashion and retail. Fads will come and go as stores open and close. Consumers are always looking for the next hot item.  It’s a… Read More

It’s no news that gold has been one of the hottest investments in the past decade. With the dollar on a steady decline, gold has gained more than 500% in the past 12 years, crushing the S&P 500’s paltry 12% return. Take a look… Read More

Walk around virtually any city in Europe, and you’ll get a glimpse of deep economic strains.#-ad_banner-# Many store fronts are boarding up, people are walking the streets with hopes of finding employment and landlords are evicting tenants who are far behind in rent. Yet,… Read More

Because of new higher tax rates on dividends and capital gains for upper-bracket earners this year, it’s more important than ever to choose investments that are worth holding for the long-term and that grow their dividends. The best way to offset the negative… Read More

The only constant in life is change. This fact is doubly true when it comes to the fickle world of fashion and retail. Fads will come and go as stores open and close. Consumers are always looking for the next hot item.  It’s a constant struggle for fashion retailers to stay one step ahead of the curve and know what customers want before they even know. Many retailers are constantly looking for the next fad — which are good for business as they’re fast sellers — just to keep customers happy (think mood rings… Read More

The only constant in life is change. This fact is doubly true when it comes to the fickle world of fashion and retail. Fads will come and go as stores open and close. Consumers are always looking for the next hot item.  It’s a constant struggle for fashion retailers to stay one step ahead of the curve and know what customers want before they even know. Many retailers are constantly looking for the next fad — which are good for business as they’re fast sellers — just to keep customers happy (think mood rings or the Silly Bandz).#-ad_banner-# So it’s no wonder that in this Internet era where consumers are much more retail-savvy, traditional retailers are struggling for survival.  And this well-known retailer, which has been operating for more than 100 years, is a great example. I’m talking about JC Penney (NYSE: JCP). This once-leading retailer has been struggling to get out hole for a long time. In the third quarter of 2012, despite many business-transformation measures implemented throughout the year, the company still posted a loss of $123 million, after booking a $186 million profit in… Read More

It’s no news that gold has been one of the hottest investments in the past decade. With the dollar on a steady decline, gold has gained more than 500% in the past 12 years, crushing the S&P 500’s paltry 12% return. Take a look at the meteoric gains below. Anyone who’s invested in the yellow metal has made a lot of money… And the trends that have been driving gold higher in the past 12 years are still… Read More

It’s no news that gold has been one of the hottest investments in the past decade. With the dollar on a steady decline, gold has gained more than 500% in the past 12 years, crushing the S&P 500’s paltry 12% return. Take a look at the meteoric gains below. Anyone who’s invested in the yellow metal has made a lot of money… And the trends that have been driving gold higher in the past 12 years are still well in play. The U.S. dollar continues to depreciate under heavy stimulation from the Federal Reserve and lingering trade deficits. And the world still views gold as a safe haven against inflation and social instability, with political events in Europe and the Middle East fueling more demand. But owning bullion is unrealistic for most investors. Not only is it incredibly difficult and dangerous to store bullion, but it’s also capital-intensive at $1,650 an ounce. That’s why many investors, including former Texas congressman Ron Paul, are focusing on gold-mining… Read More

Stocks were generally higher last week, with the notable exception of Apple (Nasdaq: AAPL). Traders often expect a pullback or a consolidation after a big gain like we’ve seen in the past few weeks. The big… Read More

Walk around virtually any city in Europe, and you’ll get a glimpse of deep economic strains.#-ad_banner-# Many store fronts are boarding up, people are walking the streets with hopes of finding employment and landlords are evicting tenants who are far behind in rent. Yet, economists increasingly expect the gloom to lift slowly. And if history is any guide, then you want to invest in troubled Europe before the region’s economy is back in full force.  This notion hasn’t been lost on some investors who are already profiting from increased… Read More

Walk around virtually any city in Europe, and you’ll get a glimpse of deep economic strains.#-ad_banner-# Many store fronts are boarding up, people are walking the streets with hopes of finding employment and landlords are evicting tenants who are far behind in rent. Yet, economists increasingly expect the gloom to lift slowly. And if history is any guide, then you want to invest in troubled Europe before the region’s economy is back in full force.  This notion hasn’t been lost on some investors who are already profiting from increased exposure to Europe. But these investors were mostly focused on the riskiest stocks that appeared to be the most distressed. Many Italian bank stocks, for example, have risen 50% or even 100% since bottoming out last summer. But for investors looking to commit fresh funds to European investments, it may be wiser to take a different tack.  Focus on stocks and funds that remain near lows, but have a high degree of economic sensitivity. Once investors have become convinced that Europe… Read More

Because of new higher tax rates on dividends and capital gains for upper-bracket earners this year, it’s more important than ever to choose investments that are worth holding for the long-term and that grow their dividends. The best way to offset the negative effects of these new tax hikes is through a rising dividend, which also offers inflation protection and support for the share price. Consider the example of a stock yielding 5% with… Read More

Because of new higher tax rates on dividends and capital gains for upper-bracket earners this year, it’s more important than ever to choose investments that are worth holding for the long-term and that grow their dividends. The best way to offset the negative effects of these new tax hikes is through a rising dividend, which also offers inflation protection and support for the share price. Consider the example of a stock yielding 5% with a $100 share price and $5 per-share dividend. An increase in the dividend tax rate from 15% to 20% reduces this stock’s after-tax income to $4 per share from $4.25 ($5 – 20% = $4). But if the stock also grows its dividend by a 5% annual rate, then income quickly rises despite the tax hike. Within five years, this stock will be paying a $6.38 per-share dividend that yields after-tax income of $5.11. That’s considerably more than the $4.25 per share of income collected initially at the… Read More