The market is new all-time highs, unemployment is near its record low, the U.S. economy is in its longest-ever expansion cycle, and the Federal Reserve is discussing a rate cut. Welcome to the new normal. #-ad_banner-#I am not going to start a long-winded discussion about the virtues or risks of extending the expansion phase or about the cyclicality of the economy, even though interest rate cuts have been historically reserved for when the economy is in a slump or turmoil. After all, monetary policies are out of investors’ control. Of course, with almost the entire world on the easing path… Read More

The market is new all-time highs, unemployment is near its record low, the U.S. economy is in its longest-ever expansion cycle, and the Federal Reserve is discussing a rate cut. Welcome to the new normal. #-ad_banner-#I am not going to start a long-winded discussion about the virtues or risks of extending the expansion phase or about the cyclicality of the economy, even though interest rate cuts have been historically reserved for when the economy is in a slump or turmoil. After all, monetary policies are out of investors’ control. Of course, with almost the entire world on the easing path and with strong economic growth relatively scarce, it would be rational to believe that the Fed may about to reverse its recent tightening policies. Fed Chair Jerome Powell said as much Wednesday in prepared testimony to the House Financial Services Committee, hinting strongly that in light of the U.S. economy not drastically improving over the past few weeks and the world’s growth slowing, a rate cut is in the cards. The market is now pricing in a 100% probability of a cut in the July 30-31 meeting. Whether or not we will remain on the easing path after that meeting… Read More

It’s hard to predict whether a stock will do well. Many investors simply follow the trend: buying high in order to sell even higher. This momentum strategy is a valid one. Like a freight train, a moving stock is hard to stop — there must be a very good reason for a high-momentum stock to stop in its tracks and head in the opposite direction. This is a strategy that can be surprisingly difficult to execute, though. Fundamentally, good stock analysis is still required. You cannot simply buy the hottest ticket out there on the expectation that it will continue… Read More

It’s hard to predict whether a stock will do well. Many investors simply follow the trend: buying high in order to sell even higher. This momentum strategy is a valid one. Like a freight train, a moving stock is hard to stop — there must be a very good reason for a high-momentum stock to stop in its tracks and head in the opposite direction. This is a strategy that can be surprisingly difficult to execute, though. Fundamentally, good stock analysis is still required. You cannot simply buy the hottest ticket out there on the expectation that it will continue moving — not if you take investing seriously. A big picture, too, can change on a dime: the world out there is unpredictable, and nobody can know whether bad news is coming. And psychologically, it might be difficult to keep buying an uptrend when the market trades at fresh all-time highs amid a barrage of macroeconomic worries. Another strategy is to look for bargains. Those stocks might not be the market’s darlings and might not have the trend-related wind at their backs, but it should not necessarily mean that they have no potential. A real bargain — a fundamentally strong… Read More

Not every company is created the same, and not every cybersecurity system works to protect against the same set of threats.  For example, some of you may remember Mimecast (Nasdaq: MIME) — a company I’ve mentioned before and also a former Game-Changing Stocks holding. (We owned it for more than a year and sold this past May for a gain of better than 80%.) This company specializes in securing corporate emails — and has been quite successful in advancing that franchise (hence our strong gain on the position). But the threats that any modern business now faces range far and… Read More

Not every company is created the same, and not every cybersecurity system works to protect against the same set of threats.  For example, some of you may remember Mimecast (Nasdaq: MIME) — a company I’ve mentioned before and also a former Game-Changing Stocks holding. (We owned it for more than a year and sold this past May for a gain of better than 80%.) This company specializes in securing corporate emails — and has been quite successful in advancing that franchise (hence our strong gain on the position). But the threats that any modern business now faces range far and wide. Clearly, a company that does its business online, has a website or communicates via the cloud can be exposed to a number of cybersecurity threats. These include malware (any type of software that can harm a computer or its user) or ransomware (software specifically designed to deny access to a computer system or data unless a specific ransom is paid). Market research and consulting firm Global Market Insights says the cybersecurity market will grow exponentially over the next few years, propelled by the need to minimize security risks and rapid growth in cloud-based platforms and other networking technologies. Indeed,… Read More

Biotech is hot. A number of sizeable deals — and expectations of more — keep the sector in the headlines and in the minds of investors.  Just a few days ago, on June 17, Pfizer (NYSE: PFE), which had not made a major acquisition for a couple of years, announced an agreement to buy Array BioPharma (Nasdaq: ARRY) for $10.6 billion (a 62% premium).  And PFE is not alone in its attempts to beef up its drug pipeline.  —Recommended Link— The Incredible Dividend Map Where Stocks Yield 67% a Year What’s the highest-yielding stock you’ve ever… Read More

Biotech is hot. A number of sizeable deals — and expectations of more — keep the sector in the headlines and in the minds of investors.  Just a few days ago, on June 17, Pfizer (NYSE: PFE), which had not made a major acquisition for a couple of years, announced an agreement to buy Array BioPharma (Nasdaq: ARRY) for $10.6 billion (a 62% premium).  And PFE is not alone in its attempts to beef up its drug pipeline.  —Recommended Link— The Incredible Dividend Map Where Stocks Yield 67% a Year What’s the highest-yielding stock you’ve ever owned? Did it pay you 8%… 10%… maybe even 12%?  Well these stocks blow all of those out of the water. Their dividends have risen so fast over the years that they’re now yielding us an average of 67%. You need to see this for yourself. because when you start getting paid 67% on your money your financial problems pretty much evaporate.   Click here to get started.   Novartis (NYSE: NVS) is planning to spend as much as $10 billion per year on acquisitions. GlaxoSmithKline (NYSE: GSK) — which, just six months ago bought oncology-focused Tesaro… Read More