How do you catch a falling safe? As a physics student, I was taught that the simplest solution is usually the right one, and I have a simple answer to this question. I’ll tell you in a moment, but it’s so obvious that it may seem worthless, even though the opposite is true, and critically important during times of extreme market volatility. Consider the old saying: You can’t judge a book by its cover. “Everyone” knows this truth, but people judge books by their covers every day. This is important for investors, because… Read More

How do you catch a falling safe? As a physics student, I was taught that the simplest solution is usually the right one, and I have a simple answer to this question. I’ll tell you in a moment, but it’s so obvious that it may seem worthless, even though the opposite is true, and critically important during times of extreme market volatility. Consider the old saying: You can’t judge a book by its cover. “Everyone” knows this truth, but people judge books by their covers every day. This is important for investors, because while “everyone” knows something is true, they don’t always act accordingly. The fact that so many people will follow the herd rather than think for themselves is what creates opportunities for independent thinkers to make a lot of money. Given that investors in many market sectors are suffering shock from recent volatility and feeling as though they’ve been trying to catch a falling safe, it’s a good time to share my simple but almost universally neglected solution: don’t! If you try,… Read More

The saying that a rising tide lifts all boats is doubly true for the economy.  As the Federal Reserve’s loose monetary policy pours fuel on an already combustible economy, the stock market spirals higher and higher. The Dow Jones Industrial Average surged to a high of 15,604 recently before consolidating in a tight channel near the highs. Meanwhile, the S&P 500 and Nasdaq indexes are flirting with new… Read More

The saying that a rising tide lifts all boats is doubly true for the economy.  As the Federal Reserve’s loose monetary policy pours fuel on an already combustible economy, the stock market spirals higher and higher. The Dow Jones Industrial Average surged to a high of 15,604 recently before consolidating in a tight channel near the highs. Meanwhile, the S&P 500 and Nasdaq indexes are flirting with new highs on a near-daily basis.#-ad_banner-# As the fireworks continue on Wall Street, Main Street is also reaping the rewards of low interest rates and supportive governmental policy. I have noticed local high-end restaurants packed to the gills with diners not afraid to drop a few hundred dollars for dinner and drinks for two couples. I tried to get reservations at a nearby hotspot and was told they were taking reservations for September and were completely booked during the month of August. Read More

A big part of my job as managing editor of StreetAuthority involves talking with our premium newsletter experts to get a sense of what they like in the market, where they think it’s headed and how they plan to help their followers profit. That means I get paid to hear from some of the top investing minds in the country on a regular basis. What could be better? I… Read More

A big part of my job as managing editor of StreetAuthority involves talking with our premium newsletter experts to get a sense of what they like in the market, where they think it’s headed and how they plan to help their followers profit. That means I get paid to hear from some of the top investing minds in the country on a regular basis. What could be better? I want to share some of that wisdom. I’m featuring insights and top picks from each of our experts over the next couple of weeks as a way of saying thanks for being a StreetAuthority.com reader. Today’s pick comes courtesy of Michael J. Carr.             Michael J. Carr   Michael… Read More

This week, we looked at three stocks in position to profit — in an under-the-radar way — from the coming shift in U.S. demographics and the developed world. These three companies sell to the needs of the… Read More

Many people would call my favorite food choice boring and predictable. However, I consider myself a connoisseur of the lowly hamburger.  I have had burgers all over North America from down-and-dirty burger shacks to the finest restaurants such as Daniel Boulud’s DBGB Kitchen &… Read More

Ever since I was a child, I have been fascinated by advertising, marketing and brand logos.  I distinctly remember often enjoying TV commercials and magazine ads more than the actual shows and articles. This near-obsession with brand logos and marketing has been beneficial to my businesses and… Read More

When it comes to the stock market, bigger isn’t always better.#-ad_banner-# Everyone heard the phrase “too big to fail” during the most recent financial crisis. The phrase referred to financial institutions that are so large and interconnected that they have become critical cogs in the economy. The idea is that if a “too big to fail” institution were to falter, it could bring down the entire financial system. Therefore, the government needs to step in to help prop up the failing… Read More

When it comes to the stock market, bigger isn’t always better.#-ad_banner-# Everyone heard the phrase “too big to fail” during the most recent financial crisis. The phrase referred to financial institutions that are so large and interconnected that they have become critical cogs in the economy. The idea is that if a “too big to fail” institution were to falter, it could bring down the entire financial system. Therefore, the government needs to step in to help prop up the failing company to prevent systemwide damage.  Large banks are being pressured by multiple sources to decrease their size. For example, Federal Reserve Chairman Ben Bernanke has called “too big to fail” banks a moral hazard, and Mervyn King, the former governor of the Bank of England, has suggested large banks be cut down to size. Former Fed Chairman Alan Greenspan has said that large banking institutions should be broken up by regulators because taxation and fees aren’t sufficient to control their influence and… Read More

Facebook (Nasdaq: FB) jumped to over $34 last week, marking the first time since its IPO that the stock has traded that high. This came after a one-day climb of nearly 30%. A great one-day move, right? But let’s put it in perspective: Since its May 2012 IPO, FB is still down more than 3%.#-ad_banner-# The social network blew through both earnings and… Read More

Facebook (Nasdaq: FB) jumped to over $34 last week, marking the first time since its IPO that the stock has traded that high. This came after a one-day climb of nearly 30%. A great one-day move, right? But let’s put it in perspective: Since its May 2012 IPO, FB is still down more than 3%.#-ad_banner-# The social network blew through both earnings and revenue expectations. Second-quarter earnings per share came in at 19 cents, compared with the consensus forecast of 14 cents and the 12 cents a share posted during the second quarter last year. In reality, all of Facebook’s numbers were up big-time: Total monthly active users were up to 1.15 billion, up 20% year over year; mobile monthly active users were up to 819 million, up 51%; and daily active users were up to 699 million, up 27%. The real gem? Mobile… Read More

More than 10,000 Americans reach the age of 65 every day and move the demographic needle further to a change in spending power, preferences and political clout. In five years, over 50% of the U.S. population will be over the age of 50. But you’ve already heard this story, right? The demographic boom is just building up steam, and for years, investors have been rushing to find every retirement housing and health care stock under the sun. Wall Street has been… Read More

More than 10,000 Americans reach the age of 65 every day and move the demographic needle further to a change in spending power, preferences and political clout. In five years, over 50% of the U.S. population will be over the age of 50. But you’ve already heard this story, right? The demographic boom is just building up steam, and for years, investors have been rushing to find every retirement housing and health care stock under the sun. Wall Street has been talking up the coming change for quite a while, and the usual suspects all trade at pricey levels. Senior Housing Properties (NYSE: SNH) trades at almost 34 times trailing earnings and has missed earnings expectations in 11 of the past 12 quarters. The SPDR S&P Pharmaceuticals Fund (NYSE: XPH) trades for an expensive 19 times trailing earnings, a premium of almost 20% on the rest of the… Read More

Just a few days ago, prosecutors in New York issued indictments in what is being described as the biggest computer hacking scheme in U.S. history. Paul Fishman, the U.S. attorney for New Jersey, was quoted by Bloomberg describing a “worldwide scheme that targeted major corporate networks, stole more than 160… Read More