A perfect storm was brewing for the coal industry in 2008: carbon-capping climate legislation looked increasingly likely to be approved, demand for electricity began to fall sharply and natural gas — which can also replace coal in many power plants — saw a sharp price drop. In addition, the incoming… Read More

I was running through my colleague Brad Briggs’ recent look back at the silver crisis of the 1970s. He described a cautionary tale about investors chasing the commodity when its price was no longer connected to any sort of fundamental value. Needless to say, the silver bubble was eventually pricked: “With prices so high, people began selling all the silver they could get their hands on. Prices plummeted 50.0% in four days,” Briggs wrote. There is another metal that’s showing all the signs of a mania: copper. I don’t expect a sudden plunge as was… Read More

I was running through my colleague Brad Briggs’ recent look back at the silver crisis of the 1970s. He described a cautionary tale about investors chasing the commodity when its price was no longer connected to any sort of fundamental value. Needless to say, the silver bubble was eventually pricked: “With prices so high, people began selling all the silver they could get their hands on. Prices plummeted 50.0% in four days,” Briggs wrote. There is another metal that’s showing all the signs of a mania: copper. I don’t expect a sudden plunge as was the case with silver 30 years ago, but the price of this metal and of its key stocks are floating on a bed of complacency. This could all end soon thanks to a couple of occurrences that are happening offstage, but that may actually be advantageous in the short term. Copper prices have been steadily rebounding for the last two years as global demand perks up. The metal has many uses in construction, from plumbing to wiring to refrigeration coils. China, with its inexorable thirst for new building construction, has been a key driver for copper. This… Read More

It’s been a roller-coaster year for stocks, but one that will ultimately end well. Barring any unforeseen events, the S&P 500 will end the year with a gain of about 15.0%. This year brought with it a myriad of opportunities for profits and losses, from the commodities boom and M&A… Read More

This is the time of year when investors typically rebalance their portfolios and begin preparing for the year ahead. In preparation for the coming year, it helps to look back and think about the lessons learned from the previous year and how they can be applied for a profitable future. With that in mind, we asked some of StreetAuthority’s top experts what they learned in 2010 and how they hope to apply it in 2011. Here’s what they learned…  ———————————— Here’s what I learned this year: “It’s the economy, stupid.”… Read More

This is the time of year when investors typically rebalance their portfolios and begin preparing for the year ahead. In preparation for the coming year, it helps to look back and think about the lessons learned from the previous year and how they can be applied for a profitable future. With that in mind, we asked some of StreetAuthority’s top experts what they learned in 2010 and how they hope to apply it in 2011. Here’s what they learned…  ———————————— Here’s what I learned this year: “It’s the economy, stupid.” The market isn’t going to charge ahead no matter how good earnings look or how optimistic the Street may be when so many people remain out of work. Uncertainty over the tax code and health care hasn’t helped. But it’s one thing for the market to sputter or stall, it’s another thing entirely for such conditions to keep the best companies down. So while the S&P 500 didn’t blow up anyone’s skirt, there were plenty of big winners in 2010, despite the tough business climate. Cutting-edge technologies and products will always create value, and those companies’ shareholders will be… Read More

Most investors take a look at them before they leap into stocks, but analyst recommendations don’t necessarily have a great track record. So, before you take a buy/sell call on faith, you may want to consider the fact that the folks doing the ratings aren’t always right. But that’s not… Read More

Rising dividends… A share buyback program… And strategic acquisitions. This combination of strengths shows General Electric (NYSE: GE) — one of the world’s largest companies — is again on a roll. In mid-December, the blue-chip company announced a 17% dividend increase on… Read More

When it comes to handling the deepening European economic crisis, policy planners have no playbook. They’re winging it, coming up with repeated incremental steps to try and limit the spreading contagion. Thus far, they’ve failed. An increasing number of countries can’t seem to weather the storm on their own, yet there are clear limits to how much the stronger European countries can really help. In a worst case scenario, the economic crisis may deepen much further in the first half of 2011. Make no mistake, U.S. investors won’t be insulated from Europe’s problems. Here’s what you need… Read More

When it comes to handling the deepening European economic crisis, policy planners have no playbook. They’re winging it, coming up with repeated incremental steps to try and limit the spreading contagion. Thus far, they’ve failed. An increasing number of countries can’t seem to weather the storm on their own, yet there are clear limits to how much the stronger European countries can really help. In a worst case scenario, the economic crisis may deepen much further in the first half of 2011. Make no mistake, U.S. investors won’t be insulated from Europe’s problems. Here’s what you need to know… A tale of two regions The myth that Europe is one big economic zone is starting to come undone. France and Germany just reported notable increases in employment, while southern neighbors showed big spikes in unemployment. It wasn’t supposed to work that way. The decision to create an economic union and a common currency was expected to lead to balanced and mutually beneficial growth. Instead, the stronger countries are pulling away from the pack and the weaker countries have started to move into a self-reinforcing cycle of negative… Read More

My first rule of investing: never buy stock in a company simply because you think it will be bought out. Simply put, most rumored deals never happen. But I do like to keep an eye the rumor mill, because it can often point the way to intriguing companies that still… Read More

We’re entering the back half of December, which is one of the slowest times of the year in terms of market trading volume. And lower volume means higher volatility, as just a few traders can move a stock sharply if there’s no one around for the counter trade. That means this is no time to be complacent — especially when a key stock market indicator is signaling potential trouble. The Relative Strength Index (RSI), which helps investors determine whether the market is undervalued or overvalued in the near-term, is sending a clear signal: the market… Read More

We’re entering the back half of December, which is one of the slowest times of the year in terms of market trading volume. And lower volume means higher volatility, as just a few traders can move a stock sharply if there’s no one around for the counter trade. That means this is no time to be complacent — especially when a key stock market indicator is signaling potential trouble. The Relative Strength Index (RSI), which helps investors determine whether the market is undervalued or overvalued in the near-term, is sending a clear signal: the market is sharply overbought. The RSI compares recent gains with recent losses, dividing the trading days with gains by trading days with losses, and also accounts for the magnitude of those moves. [See our definition  in InvestingAnswers.com for more] After an extended period of mostly losing sessions, the RSI will slump, sometime below 30, which is used by many as a clear buying signal (also known as when the market is “oversold”). And when the market is steadily rising, this index moves well higher, and investors generally become concerned that we’re… Read More

The recent agreement in Washington to resolve the tax impasse has led many economists to re-check their assumptions about the economy in 2011. Their conclusion: the outlook for 2011 just got a little better. Let’s look at the specific economic indicators, and where most think they will be by… Read More