On a recent trip to Des Moines to teach a class for financial professionals, the weather didn’t cooperate. This kept me from flying.  So a road trip was in order. Now, it’s a 20-hour trip by car from Florida. While the plan wasn’t to drive straight through, tunnel vision kept… Read More

Utility stocks can best be described as the four-door, mid-sized sedan of equity investing: boring. Nothing sexy about them — they get you from point A to point B. Investors own utilities for the steady, above-average dividends just as people buy bland, mid-size sedans because they need something that just works. But sometimes both can seem overpriced. In 1987, the base price of a new, Honda Accord was around $9,795. Today, that base price is around $22,455, which implies an annual price increase of 4.3%; 33.5% more than the average annual inflation rate of 3.22% for the same time period. Read More

Utility stocks can best be described as the four-door, mid-sized sedan of equity investing: boring. Nothing sexy about them — they get you from point A to point B. Investors own utilities for the steady, above-average dividends just as people buy bland, mid-size sedans because they need something that just works. But sometimes both can seem overpriced. In 1987, the base price of a new, Honda Accord was around $9,795. Today, that base price is around $22,455, which implies an annual price increase of 4.3%; 33.5% more than the average annual inflation rate of 3.22% for the same time period. So, while that mid-sized sedan may still seem like a bargain, it’s gotten slightly more expensive over the longer haul. Utility stocks also outperformed inflation during a similar run. The average yield of utility stocks over the last 25 years has been 3.96% while inflation has averaged around 2.11% for the same period. Over the long haul, dividend paying-utility stocks delivered exactly what they should which is to keep pace with inflation. But sometimes utility stocks, like that boring sedan, can look expensive. The sector has been dealing with this recently. After a post-election dip that coincided with… Read More

A few years ago, I had the opportunity to visit the palatial Biltmore Estate in Asheville, North Carolina. Built near the turn of the century to rival the grandest European manors, this stately five-story mansion is the nation’s largest private residence. Commissioned by George Vanderbilt during the Gilded Age, the Biltmore was an open display of opulence and wealth. At a time when many homes lacked basic electricity and indoor plumbing, this one featured an elevator, gymnasium, library, pipe organ, billiards room, heated swimming pool, bowling alley and walk-in refrigerator. The Biltmore Estate in Asheville, North Carolina… Read More

A few years ago, I had the opportunity to visit the palatial Biltmore Estate in Asheville, North Carolina. Built near the turn of the century to rival the grandest European manors, this stately five-story mansion is the nation’s largest private residence. Commissioned by George Vanderbilt during the Gilded Age, the Biltmore was an open display of opulence and wealth. At a time when many homes lacked basic electricity and indoor plumbing, this one featured an elevator, gymnasium, library, pipe organ, billiards room, heated swimming pool, bowling alley and walk-in refrigerator. The Biltmore Estate in Asheville, North Carolina The impeccable grounds outside were equally impressive. The country chateau was located in the scenic Blue Ridge Mountains, surrounded by acres of lush flower gardens, vineyards and tree-lined pathways. Two generations earlier, George’s grandfather, Cornelius Vanderbilt, took control of the New York Central Railroad, the Michigan Southern Railway and several other lines, eventually building an empire worth $143 billion in today’s dollars — making him the second-richest man in history. That was a different era, of course. Railroads seem quaint these days next to driverless cars and other 21st century technologies. But don’t be fooled. They remain the cheapest way… Read More

Anyone who knows me knows that one of my favorite investing techniques is to find a trend to follow. Once found, I stay with it as long as possible. Of course it helps to find the trend early, too. But finding an early trend can be difficult. For example, finding an actionable trend in natural gas seems almost impossible. As you can see from the chart below, the median price of natural gas has trended around the $2.50 range for the past 18-months. And this lack of positive momentum in the price of natural gas makes gas stocks… Read More

Anyone who knows me knows that one of my favorite investing techniques is to find a trend to follow. Once found, I stay with it as long as possible. Of course it helps to find the trend early, too. But finding an early trend can be difficult. For example, finding an actionable trend in natural gas seems almost impossible. As you can see from the chart below, the median price of natural gas has trended around the $2.50 range for the past 18-months. And this lack of positive momentum in the price of natural gas makes gas stocks unattractive. But here’s the thing: Natural gas prices are at the beginning stages of a long-term trend that will prevent them from staying this way. Here’s Why While natural gas averaged $2.51 in 2016, the U.S. Energy Information Administration (EIA) estimates average prices will rise to $3.55 in 2017. This bodes well for natural gas companies as well as companies moving product across the United States and the globe. EIA predicts that commercial use of natural gas will rise by 6 percent in 2017. Even so, those kinds of numbers are not a trend that… Read More

If you listen to the talking heads on CNBC, gold’s move from $1,230/oz. to $1,280/oz. since last December occurred despite the threat of at least one, and possibly two, interest rate hikes in 2017. This reasoning has resulted in the idea that gold prices will have to decline from current levels unless the Fed fails to raise interest rates. And frankly, unless the United States enters a recession, the likelihood of at least one more rate increase in 2017 is inevitable. #-ad_banner-#But are the talking heads correct? I don’t think so. Here’s why… Gold prices correlate more to ‘real’ interest… Read More

If you listen to the talking heads on CNBC, gold’s move from $1,230/oz. to $1,280/oz. since last December occurred despite the threat of at least one, and possibly two, interest rate hikes in 2017. This reasoning has resulted in the idea that gold prices will have to decline from current levels unless the Fed fails to raise interest rates. And frankly, unless the United States enters a recession, the likelihood of at least one more rate increase in 2017 is inevitable. #-ad_banner-#But are the talking heads correct? I don’t think so. Here’s why… Gold prices correlate more to ‘real’ interest rates than to ‘nominal’ rates. Real interest rates are nominal rates less the rate of inflation. In simple terms, a nominal interest rate of 3% yields a real rate of 1% if the inflation rate is 2%. Now, nominal interest rates are likely to rise in 2017. But real rates are not, since expectations are for higher inflation, not less. What this means is that even if the Fed attempts to ‘normalize’ them, real interest rates have likely already hit their highs — meaning that gold prices are not likely to go significantly lower from here.   In fact, given… Read More

Is it time to invest in energy stocks? Oil prices have been volatile, and there is tremendous excitement in the energy space. The question has always been will oil continue to climb higher, or will the price momentum fade? Maybe the commodity will crash, or maybe it will just keep moving up. No one knows what will happen next, and with many energy stocks are dependent on oil prices, investors are unsure of where they can safely buy in the space. Believe it or not, not all oil company stocks are dependent on the price of crude. I have identified… Read More

Is it time to invest in energy stocks? Oil prices have been volatile, and there is tremendous excitement in the energy space. The question has always been will oil continue to climb higher, or will the price momentum fade? Maybe the commodity will crash, or maybe it will just keep moving up. No one knows what will happen next, and with many energy stocks are dependent on oil prices, investors are unsure of where they can safely buy in the space. Believe it or not, not all oil company stocks are dependent on the price of crude. I have identified five stocks that should continue to climb higher regardless of what happens to oil prices. A History Of Volatility Oil is among the most volatile commodities on earth. Just three years ago, it was trading for over $100 per barrel. Next time it hit the headlines, it had plunged to around $30 per barrel in early 2016. Prices have since climbed back up to around $53.00 per barrel. The volatility is custom made for active futures traders. This hyperactive subset of the investor population can change from long to short instantaneously and profit no matter which way the commodity… Read More

Editor’s Note: Today we’d like to feature a guest column from Nathan Slaughter, Chief Stock Market Strategist for Scarcity & Real Wealth, StreetAuthority’s premium newsletter that seeks to profit from the producers and processors of the rarest and most valuable assets on the planet — precious metals, energy and other natural resources. In this column, Nathan addresses what’s become something of a buzzword again this year: Infrastructure. As Nathan points out in the article that follows, President Trump has pledged to rebuild outdated infrastructure on a scale not seen since Dwight Eisenhower proposed the national interstate highway system in the… Read More

Editor’s Note: Today we’d like to feature a guest column from Nathan Slaughter, Chief Stock Market Strategist for Scarcity & Real Wealth, StreetAuthority’s premium newsletter that seeks to profit from the producers and processors of the rarest and most valuable assets on the planet — precious metals, energy and other natural resources. In this column, Nathan addresses what’s become something of a buzzword again this year: Infrastructure. As Nathan points out in the article that follows, President Trump has pledged to rebuild outdated infrastructure on a scale not seen since Dwight Eisenhower proposed the national interstate highway system in the 1950s. If Trump and his allies have their way, it could lead to as much as $1 trillion in infrastructure-related spending over the next 10 years. That’s a lot of cement (and other resources and services), but it’s just icing on the cake when it comes to the appeal these companies hold for investors. So… Which companies are likely to profit the most? Here’s Nathan’s take on some of the opportunities for investors — and it’s actually a prelude to his next issue, which is due out in a couple weeks. If you’re interested in learning more about Scarcity &… Read More

Now is the time to get long oil. This is a big change for me; I was a huge oil bear during the “peak oil” craze. It seemed clear that the new extraction technology and the ever-changing geopolitical climate would quickly eliminate the fear of oil becoming scarce. But my investment thesis, to buck oils upward trend, came to fruition faster than I expected. #-ad_banner-#The Light Crude Oil futures contract (WTI Crude) plunged from the $115.00 zone at the start of 2011 to just above $25.00 in the early months of 2016. The bulk of the dive began in mid-2014,… Read More

Now is the time to get long oil. This is a big change for me; I was a huge oil bear during the “peak oil” craze. It seemed clear that the new extraction technology and the ever-changing geopolitical climate would quickly eliminate the fear of oil becoming scarce. But my investment thesis, to buck oils upward trend, came to fruition faster than I expected. #-ad_banner-#The Light Crude Oil futures contract (WTI Crude) plunged from the $115.00 zone at the start of 2011 to just above $25.00 in the early months of 2016. The bulk of the dive began in mid-2014, with a precipitous fall to the lows. Fortunes were made by the oil bears who had the foresight and nerve to short in the face of massive bullish sentiment. The oil sell-off was the primarily the result of a trifecta of factors. First, technology led to a flood of product onto the market. New extraction techniques, such as fracking, allowed producers to access untold barrels of black gold never imagined by the oil bulls. The earth went from potentially running out of oil within our lifetime to virtually unlimited supplies. Second, political events drove prices down. At the start of… Read More

At no other time in modern U.S. history has a new administration intervened so directly in the business environment. Whether you agree with President Trump’s policies or not, it’s difficult to ignore that the new administration is reshaping the American economy. Any time you get such a dramatic shift in policy and the business environment, there are bound to be industries that benefit. #-ad_banner-#Positioning in those industries before the good times begin could be one of the strongest investment themes over the next four years. President Trump reiterated his call for a $1 trillion infrastructure plan in his… Read More

At no other time in modern U.S. history has a new administration intervened so directly in the business environment. Whether you agree with President Trump’s policies or not, it’s difficult to ignore that the new administration is reshaping the American economy. Any time you get such a dramatic shift in policy and the business environment, there are bound to be industries that benefit. #-ad_banner-#Positioning in those industries before the good times begin could be one of the strongest investment themes over the next four years. President Trump reiterated his call for a $1 trillion infrastructure plan in his recent speech to Congress. He also reinforced his pledge to boost American manufacturing with a mandate that requires new energy pipelines to be made with domestically-produced U.S. steel. In that mandate, the President may have signaled one of the best investments of the year and made one group some of the top stocks of 2017. Steel Benefits From Increased Demand And Decreased Competition Not only could U.S. steel producers get a sales boost from pipeline projects already approved, but any major infrastructure improvement could mean a surge in non-residential and construction steel. Steel gets a further boost… Read More

“This could be one of our best shots at a triple-digit return in 2017.” This was what I said at the start of this month. And it remains true. Despite a recent hiccup in the stock price, I still believe a rebound in uranium prices will propel my pick in… Read More