Prior to 1913, cashing a check in the United States was a hit-or-miss proposition. Many larger banks refused to clear checks from smaller, less well-known banks for fear that the originating bank might not be solvent. This was especially true in times of economic distress, such as the financial panic of 1907. #-ad_banner-#The refusal of some banks to cash the checks of other banks was one of the reasons the Federal Reserve was established in 1913. But it wasn’t until 1918 that Congress ordered the Fed to create a nationwide check-clearing system. For this, the Federal Reserve Banks created a… Read More

Prior to 1913, cashing a check in the United States was a hit-or-miss proposition. Many larger banks refused to clear checks from smaller, less well-known banks for fear that the originating bank might not be solvent. This was especially true in times of economic distress, such as the financial panic of 1907. #-ad_banner-#The refusal of some banks to cash the checks of other banks was one of the reasons the Federal Reserve was established in 1913. But it wasn’t until 1918 that Congress ordered the Fed to create a nationwide check-clearing system. For this, the Federal Reserve Banks created a telegraph network to transfer funds between member banks. Many Americans would be surprised to know that the check-clearing system created in 1918 is still in use today. It’s called the Federal Reserve Wire Network (Fedwire, for short). And it’s truly massive. Fedwire processed more than $835 trillion worth of transactions in 2015. In 2016, the value of the transactions dipped by 8.1% to $767 trillion due to a slow economy. Even so, that’s still more money changing hands every nine days than the entire GDP of the United States. But Change Is Coming Fedwire’s telegraph lines lasted into the… Read More

No matter how much we think we know what to expect, there are always surprises. As an investor, I know this means I have to look at all the information available, rather than assume I know what the data says. That’s what led me to find an investment opportunity in an unexpected place: retail. This is a sector filled with bad news. According to CNBC, “Retail bankruptcies march toward [a] post-recession high.” So far this year, we have seen nine major retailers file bankruptcy, including Limited Stores and the parent of Radio Shack, which already went bankrupt once before. Analysts… Read More

No matter how much we think we know what to expect, there are always surprises. As an investor, I know this means I have to look at all the information available, rather than assume I know what the data says. That’s what led me to find an investment opportunity in an unexpected place: retail. This is a sector filled with bad news. According to CNBC, “Retail bankruptcies march toward [a] post-recession high.” So far this year, we have seen nine major retailers file bankruptcy, including Limited Stores and the parent of Radio Shack, which already went bankrupt once before. Analysts believe other will follow. Moody’s Investors Service says that 19 retailers are distressed and may not survive the year. Their list includes 99 Cents Stores, Payless, Claire’s, David’s Bridal and, of course, Sears. Some investors may want to avoid the entire sector, but there must be some winners hidden among all the struggling stores because retailing can’t disappear completely. While looking over relative strength screens of the market, I was surprised to see one company doing well in one of the more beaten-down sectors. Best Buy (NYSE: BBY) has been a market leader for the past six months, the only… Read More

Alcoa (NYSE: AA) kicks off first-quarter earnings season on April 24. Analysts surveyed by FactSet Research expect S&P 500 companies to report 9.1% annual earnings growth. That’s down from the 12.5% growth expected when the first quarter began, but would still represent the strongest move in five years. Sales growth, expected at 7.2% for the market index, is also expected to post the strongest year-over-year growth since 2011. #-ad_banner-#On top of strong earnings growth, U.S. companies get a near-term boost from recent weakness in the dollar as they translate foreign earnings. Loosening regulations could also lift specific sectors. Against this… Read More

Alcoa (NYSE: AA) kicks off first-quarter earnings season on April 24. Analysts surveyed by FactSet Research expect S&P 500 companies to report 9.1% annual earnings growth. That’s down from the 12.5% growth expected when the first quarter began, but would still represent the strongest move in five years. Sales growth, expected at 7.2% for the market index, is also expected to post the strongest year-over-year growth since 2011. #-ad_banner-#On top of strong earnings growth, U.S. companies get a near-term boost from recent weakness in the dollar as they translate foreign earnings. Loosening regulations could also lift specific sectors. Against this strength in fundamentals we find a market that has stalled near record highs and investors hesitant to buy in at lofty valuations. After jumping 3.9% in February, the S&P 500 has flatlined as investors wait for earnings confirmation to push higher. The next few weeks could give us that confirmation — or it could bring the long overdue correction for which the bears have been waiting. I’ve found three sectors and three leaders in each with the potential to surprise to the upside, providing investors with a reason to send shares higher for the rest of the year. Three Value… Read More

There are few things that can light a fire under a stock like a positive earnings surprise. When a company beats expectations it sends a powerful message to the Street that business is good. #-ad_banner-#For example, Apple (Nasdaq: AAPL) jumped almost 10% in one day on January 31 after reporting record first-quarter results and a 5% positive earnings surprise. However, it is difficult to predict which stocks will beat and which will disappoint. It’s kind of like throwing darts in the dark. Today, I am going to reveal a better way to profit from an earnings surprise with one of… Read More

There are few things that can light a fire under a stock like a positive earnings surprise. When a company beats expectations it sends a powerful message to the Street that business is good. #-ad_banner-#For example, Apple (Nasdaq: AAPL) jumped almost 10% in one day on January 31 after reporting record first-quarter results and a 5% positive earnings surprise. However, it is difficult to predict which stocks will beat and which will disappoint. It’s kind of like throwing darts in the dark. Today, I am going to reveal a better way to profit from an earnings surprise with one of Wall Street’s best kept secrets. Even better, this is the perfect time to capitalize. Let me explain… First Quarter Earnings Season Is About To Kick Off This is a pivotal quarter for S&P 500 earnings. After being trapped in an earnings recession for a year and a half, S&P 500 earnings are finally returning to sustained growth. First-quarter earnings are expected to grow 6.5% and then steadily accelerate from there. Take a look below. I am expecting the S&P 500’s return to earnings growth to fuel some very nice positive earnings surprises this season. But don’t worry… Read More

A barrage of telephone calls, from everyone from my credit card company to the local auto dealer, annoyed me over the last week. Remembering back when telemarketing was ubiquitous, I decided to look closer at this resurrected form of marketing — customer contact. We Have All Experienced It You’ve just finished a long day a work and are relaxing around the dinner table with your family. Suddenly, your phone rings and the caller ID shows a number that looks oddly familiar. Reluctant but inquisitive, you take the call. The voice on the other end is pleasant and sounds curiously… Read More

A barrage of telephone calls, from everyone from my credit card company to the local auto dealer, annoyed me over the last week. Remembering back when telemarketing was ubiquitous, I decided to look closer at this resurrected form of marketing — customer contact. We Have All Experienced It You’ve just finished a long day a work and are relaxing around the dinner table with your family. Suddenly, your phone rings and the caller ID shows a number that looks oddly familiar. Reluctant but inquisitive, you take the call. The voice on the other end is pleasant and sounds curiously friendly, asking you non-intrusive questions about your credit card account. However, your intuition tells you that something is not right about this caller. #-ad_banner-#In this case, your intuition is correct. The “person” you were just speaking to isn’t a person at all. It is the latest iteration of artificial intelligence-powered voice recognition and response software. You answered the phone since the number looked familiar, this is not random chance — the number was spoofed to look one you would recognize to increase the likelihood that you would answer the phone. We are in the midst of a revolution in the… Read More

As the U.S. wireless telecom backbone has evolved since its infancy of the late 1990s, the game, save for a few minor players, has been dominated by two companies: AT&T (NYSE: T) and Verizon (NYSE: VZ). Combined, the two own about 65% of the U.S. market. With 142.7 million subscribers, Verizon holds the top spot over AT&T’s 131.8 million customers. It’s also common knowledge that the stocks of both companies are perennial favorites among dividend investors. Many hold both in their portfolios. After all, it makes sense to own both number one and two. But does it make more sense… Read More

As the U.S. wireless telecom backbone has evolved since its infancy of the late 1990s, the game, save for a few minor players, has been dominated by two companies: AT&T (NYSE: T) and Verizon (NYSE: VZ). Combined, the two own about 65% of the U.S. market. With 142.7 million subscribers, Verizon holds the top spot over AT&T’s 131.8 million customers. It’s also common knowledge that the stocks of both companies are perennial favorites among dividend investors. Many hold both in their portfolios. After all, it makes sense to own both number one and two. But does it make more sense to hold just one of them? At first glance, the two stocks look almost identical. As of this writing, T shares trade around $41.50 with a 4.7% dividend yield, while VZ shares seem a little pricier at about $49.20 per share with a 4.7% yield. But a look underneath the hood on both stocks tells a much different story. Here’s what I found. Stronger Signal?   AT&T Verizon Two-Year ROE 11.66% 95.90% Two-Year Div. Payout Ratio 97.13% 47.70% Two-Year EPS Growth 43.50% 27.02% Two-Year Avg. Total Return 18.60% 12.00%   While AT&T’s earnings per share (EPS) growth blew past… Read More

One broker I know was fond of saying, “If you hold on to a good stock long enough, you’ll end up making money.” Coming from a stock broker, this was meant to be a bit tongue-in-cheek, but it actually makes sense: In the long term, strong stocks with good fundamentals win. So the key word here is “good.” For the stock to move higher, investors must have reasons to like it. They look at the business’ future promise and determine whether or not today’s price fully reflects those expectations. #-ad_banner-#Investing isn’t a game of chance. Days, weeks and sometimes months… Read More

One broker I know was fond of saying, “If you hold on to a good stock long enough, you’ll end up making money.” Coming from a stock broker, this was meant to be a bit tongue-in-cheek, but it actually makes sense: In the long term, strong stocks with good fundamentals win. So the key word here is “good.” For the stock to move higher, investors must have reasons to like it. They look at the business’ future promise and determine whether or not today’s price fully reflects those expectations. #-ad_banner-#Investing isn’t a game of chance. Days, weeks and sometimes months of painstaking research go into figuring out what’s good and what’s not, and millions of active investors do this work constantly. What makes it more complicated is that we all invest based on the outlook for the future, and the future is good at delivering surprises. But because so many analysts and investors do their homework, they are rarely collectively wrong. Without having a special knowledge of the future, the market processes all available information and makes a determination about the company’s future — and a stock’s ultimate direction is a reflection of that collective opinion. Of course, the markets… Read More

When I first started investing, outside of a few books, there was very limited information on how to pick winning stocks. Today, things are radically different. There is a tremendous number of stock screeners, advice gurus, and stock rating services. But the trick is to find one that works… #-ad_banner-#Investors are always looking for an edge. This is an advantage or unique tactic for locating winning stocks. Some stock market investors choose to find an edge on their own. While this can be a lucrative method, it is often very costly, and may lead down a never-ending rabbit hole of… Read More

When I first started investing, outside of a few books, there was very limited information on how to pick winning stocks. Today, things are radically different. There is a tremendous number of stock screeners, advice gurus, and stock rating services. But the trick is to find one that works… #-ad_banner-#Investors are always looking for an edge. This is an advantage or unique tactic for locating winning stocks. Some stock market investors choose to find an edge on their own. While this can be a lucrative method, it is often very costly, and may lead down a never-ending rabbit hole of misinformation and dead ends. Other investors prefer to take the easy way out by following proven stock rating services to help locate potential winning stocks in a sea of mediocrity. Personally, I utilize nearly every credible resource available, including self-developed screening criteria to pick winning stocks. When I do use a stock rating service, I like to know how it works. In other words, I want to understand the secret sauce behind the stock picks. One of the most popular stock rating services is TheStreet.com’s TheStreet Ratings, which specializes in providing winning stock picks for investors. If you’re already familiar… Read More

2016 was a record year at the box office, with sales hitting $11.2 billion. This success is expected to continue this year, with sales projected to eclipse $12 billion. Hollywood is pretty much booming. Today, I want to reveal the best way to profit. This global media giant owns the industry’s best portfolio of media companies and brands. I expect it to achieve record revenue in 2017. Even better, shares are trading at one of the biggest discount to sales in the last five years. The Walt Disney Corporation (NYSE: DIS) should be a familiar name. Disney is the second-largest… Read More

2016 was a record year at the box office, with sales hitting $11.2 billion. This success is expected to continue this year, with sales projected to eclipse $12 billion. Hollywood is pretty much booming. Today, I want to reveal the best way to profit. This global media giant owns the industry’s best portfolio of media companies and brands. I expect it to achieve record revenue in 2017. Even better, shares are trading at one of the biggest discount to sales in the last five years. The Walt Disney Corporation (NYSE: DIS) should be a familiar name. Disney is the second-largest media company in the world by revenue, behind only Comcast (Nasdaq: CMCSA). Disney owns one of the most valuable portfolios of companies in the entire global media industry. Its valuable properties include Walt Disney Studios, Pixar Animation Studios, ESPN, ABC, the Disney Channel, Lucasfilms, and the Star Wars franchise. #-ad_banner-#Beyond its media properties, Disney operates Disney Theme Parks, a collection of 14 theme parks with locations around the world. The company also owns the merchandising rights for its collection of brands under its consumer brands division, another huge source of revenue. Despite its industry-leading portfolio of media companies, Disney shares… Read More