[This is a continuation of “10 Bold Predictions for 2011: Part 1”] 6. Individual investors finally start to re-enter U.S. equities in a major way in 2011 as the need to build savings in the face of looming retirements becomes a major consumer concern, and rising savings levels… Read More

The remarkable run in gold and silver prices this year has had me thinking lately — particularly silver’s run. Recently, gold’s poorer cousin reached 30 year highs, with prices reaching $30 per ounce on the futures market. It reminded me of a story… Read More

You can still practically smell the wreckage. Stocks of the nation’s largest banks, most of which were overexposed to toxic subprime assets, crashed and burned during the financial crisis. The KBW Bank Index (an index of the largest American banks) fell from a high… Read More

Just a little more than a decade ago, most investors wouldn’t put a dime in this emerging country, even if they were using someone else’s money. But plenty can change in a short amount of time, and today the story is vastly different. Now… Read More

In global economics, there are several emerging truisms. Growth is likely to be somewhat muted in the West as efforts to reverse massive budget deficits will create a drag as governments tax more than they spend. A second truism: emerging market economies have come a very long way in a very short time, and they’re unlikely to revert to their old habits that stifled growth. [See: “Forget About BRIC — Buy These Emerging Economies Instead”] The third truism: these upstart economies are likely to stumble on their way to a higher plane. The biggest concern:… Read More

In global economics, there are several emerging truisms. Growth is likely to be somewhat muted in the West as efforts to reverse massive budget deficits will create a drag as governments tax more than they spend. A second truism: emerging market economies have come a very long way in a very short time, and they’re unlikely to revert to their old habits that stifled growth. [See: “Forget About BRIC — Buy These Emerging Economies Instead”] The third truism: these upstart economies are likely to stumble on their way to a higher plane. The biggest concern: inflation. It’s just appearing now, and could well get much worse in 2011. And if that happens, many of the world’s hottest stock markets — many of which have doubled or even tripled in the past two years — could be hit by profit-taking. In recent days China has expressed increasing concern that inflation is starting to percolate. The government is seeking to rein in bank lending and has also started to impose price controls on key foodstuffs. But China is lucky. Its economy has so many hidden strengths, its… Read More

Which sector is going to be hot in 2011? If history is any clue, it won’t be what was hot in 2010. In fact, a look back through history tells us the leading groups in one year often become disappointments the next. Moreover, lagging sectors in one particular year often blaze bullish trails in the next. Technology is one such example. Though the sector led the way in 2009 with a whopping +57% jump — and attracted a lot of buyers based on that strength — these stocks have actually scored in the bottom half of all… Read More

Which sector is going to be hot in 2011? If history is any clue, it won’t be what was hot in 2010. In fact, a look back through history tells us the leading groups in one year often become disappointments the next. Moreover, lagging sectors in one particular year often blaze bullish trails in the next. Technology is one such example. Though the sector led the way in 2009 with a whopping +57% jump — and attracted a lot of buyers based on that strength — these stocks have actually scored in the bottom half of all sectors during 2010, trailing the market by more than a little. Before identifying what’s waiting in the wings for 2011 though, let’s just walk through the industry ebb and flow for 2010 — using iShares’ major sector exchange-traded funds (ETFs) as a proxy to verify the premise. For the year so far, while basic materials haven’t surprised anyone as a leading group, it has not actually been the hottest sector of 2010. That title belongs to consumer services, up +18% year-to-date. Basic materials stocks are up an average of +14% for the year,… Read More

China hogs most of the headlines these days, given it represents an extremely compelling growth market for investors. I recently explained why investing in other countries can make more sense, naming India as an example of a country that may have more compelling long-term prospects for investors. But it doesn’t… Read More

It’s become a bit of a holiday tradition. Each year in October, I step back and take a long hard look at where I think the market will be heading for the next year. It’s easy to get caught up in the trivial aspects of day-to-day market… Read More

Investing guru Warren Buffett doesn’t think much of diversification . In his view, it’s for investors who don’t really know what they’re doing. Those who do can actually lessen risk by betting big on a few investments they thoroughly understand, Buffett asserts, and will earn the greatest returns in the… Read More

Since the financial crisis in 2008, corporate executives have taken a cautious approach to making big decisions. This has been especially the case with mergers & acquisitions (M&A). But according to a recent survey from Thomson Reuters and Freeman (a consulting firm), it looks like 2011 is… Read More