It’s no coincidence that stocks sold off in the beginning of February, right as the market’s level of confidence about the Federal Reserve’s upcoming rate increases has grown. The inflation outlook and the outlook for stronger economic growth taken together do point to several rate increases this year. The latest FOMC minutes revealed that Fed officials are now positive on the economic outlook, with some having “marked up their forecasts for economic growth in the near term relative to those made for the December meeting.” Translation: More rate hikes this year. If interest rates rise, they will take a further… Read More

It’s no coincidence that stocks sold off in the beginning of February, right as the market’s level of confidence about the Federal Reserve’s upcoming rate increases has grown. The inflation outlook and the outlook for stronger economic growth taken together do point to several rate increases this year. The latest FOMC minutes revealed that Fed officials are now positive on the economic outlook, with some having “marked up their forecasts for economic growth in the near term relative to those made for the December meeting.” Translation: More rate hikes this year. If interest rates rise, they will take a further toll on bonds’ market prices down the road. —Sponsored Link— America’s Secret Weapon In The Oil War A tech revolution is taking place under the radar. And only a few investors know about it. Scientists have found a way to produce clean oil for only $23 per barrel and this tech breakthrough could lead the U.S. to energy independence.And one small company is at the center of it all… Get the story here. The good news is that these rate hikes are conditional on further economic growth. Stronger growth is generally… Read More

Note From the Editor: Veteran investment analyst Andy Obermueller just made an urgent announcement: A medical company that he’s tracking has made a startling discovery that may change medicine as we know it. He expects the stock to take off as word spreads across the news outlets. That’s why he’s released the full details about the situation this morning. So if you haven’t reserved your Fast-Track Millionaire membership — now is your last chance to do so. Watch the Fast-Track Millionaire Summit Here. Volatility has increased this year. And now that we have some data… Read More

Note From the Editor: Veteran investment analyst Andy Obermueller just made an urgent announcement: A medical company that he’s tracking has made a startling discovery that may change medicine as we know it. He expects the stock to take off as word spreads across the news outlets. That’s why he’s released the full details about the situation this morning. So if you haven’t reserved your Fast-Track Millionaire membership — now is your last chance to do so. Watch the Fast-Track Millionaire Summit Here. Volatility has increased this year. And now that we have some data on earnings, so we can gauge the probable direction of future volatility. Earnings were generally strong in the most recent quarter, but they were also largely distorted by the new tax rules. You see, companies are required to account for changes as soon as they can understand the impact those changes will have on their financials. This is one of the principles contained in the accounting standards known as GAAP, or generally accepted accounting principles. —Recommended Link— Fast-Track Millionaire Membership Closes Today We just released a new stock pick from the system that is proven… Read More

Look out below. That seems to be the prevailing opinion on Wall Street right now, as the major averages experienced a freefall — the likes of which we haven’t seen in quite some time. The Dow Jones shed more than 1,000 points last week, capped by a painful 666-point slide on Friday. After a brief respite over the weekend, the selling intensified on Monday. —Sponsored Link— This New Digital Currency Is Better Than Bitcoin — And You Can Get It For 95% Less If you’ve ever been turned off by Bitcoin’s eye-gouging price tag, please… Read More

Look out below. That seems to be the prevailing opinion on Wall Street right now, as the major averages experienced a freefall — the likes of which we haven’t seen in quite some time. The Dow Jones shed more than 1,000 points last week, capped by a painful 666-point slide on Friday. After a brief respite over the weekend, the selling intensified on Monday. —Sponsored Link— This New Digital Currency Is Better Than Bitcoin — And You Can Get It For 95% Less If you’ve ever been turned off by Bitcoin’s eye-gouging price tag, please read this urgent message about a much-cheaper “New Bitcoin,” as some are calling it. This new digital currency is cheaper, yet intrinsically more valuable than Bitcoin. That’s why we’re preparing for its price to soar… And it looks as though it has already begun. If you think you missed out on this opportunity, think again. When all was said and done, the Dow Jones Industrial Average fell 1,175.21 points, settling at 24,345.75, among the worst one-day point declines on record. Fortunately, on a percentage basis, the 4.6% pullback isn’t historically severe. Still, from the peak on… Read More

Ten years from now, I am fairly certain we will look back at this bull market and wonder how it kept going up for so long. By then, we should have a better understanding of where the problems were hiding. But, for now, we don’t have the benefit of hindsight. Some experts believe the future will be disappointing.  —Sponsored Link— Other Publishers Think I’m Crazy… But I’m Giving Away My Best Trading Advice FREE! For the next few hours, I’m giving you a chance to get the very best trading ideas from an all-star line-up… Read More

Ten years from now, I am fairly certain we will look back at this bull market and wonder how it kept going up for so long. By then, we should have a better understanding of where the problems were hiding. But, for now, we don’t have the benefit of hindsight. Some experts believe the future will be disappointing.  —Sponsored Link— Other Publishers Think I’m Crazy… But I’m Giving Away My Best Trading Advice FREE! For the next few hours, I’m giving you a chance to get the very best trading ideas from an all-star line-up of six trading pros delivered to your inbox each and every trading day, FREE. There are no strings attached… you won’t pay one red cent-not ever-for these trades. Our one of a kind Trade of the Day service is truly 100% free. Sign up for Trade of the Day right now and get your first free trading tip tomorrow. Jeremy Grantham, a noted value investor with about $74 billion under management, has studied bubbles and believes we are about to see one in stocks.  He recently published a paper called “Bracing Yourself for a Possible Near-Term… Read More

When financial markets are on the upswing, it’s often said that a “rising tide lifts all boats”. That’s not exactly true.  Yes, many stocks go up during a broad market rally. But keep in mind that for an investor to buy a share of a stock another investor must be willing to sell that share of stock. The money has to go SOMEWHERE. That being said, certain groups of stocks just won’t participate in a rally for one reason or another. While the S&P 500 Index is enjoying a 6%-plus gain year-to-date, the S&P 500 Real Estate Sector Index doesn’t… Read More

When financial markets are on the upswing, it’s often said that a “rising tide lifts all boats”. That’s not exactly true.  Yes, many stocks go up during a broad market rally. But keep in mind that for an investor to buy a share of a stock another investor must be willing to sell that share of stock. The money has to go SOMEWHERE. That being said, certain groups of stocks just won’t participate in a rally for one reason or another. While the S&P 500 Index is enjoying a 6%-plus gain year-to-date, the S&P 500 Real Estate Sector Index doesn’t have much to celebrate. The index has given up around 3.4% so far this year, and has pulled back over 5% from its peak in November. What’s the reason? #-ad_banner-#One obvious concern is the much-hyped brick-and-mortar retail Armageddon. Last year, large retailers were shellacked as they lost market share to the likes of Amazon (Nasdaq: AMZN) and other virtual shopping entities.  Whether traditional retail’s death spiral is intensifying is up for debate. But, in typical crowd-driven market form, real estate stocks that focus on renting space to the retail industry experienced the fallout. And while that is a… Read More

More than 50 years ago, Charlie Munger told his partner that, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” This would become a sort of guiding principle as Munger and Warren Buffett built their empire, Berkshire Hathaway. Like many fans of Munger and Buffett, I keep these sage words in mind when looking for my next investment. And of course, there’s no shortage of “wonderful businesses” in the stock market; the problem is that most of them are trading at a premium in today’s lofty market environment.  Last… Read More

More than 50 years ago, Charlie Munger told his partner that, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” This would become a sort of guiding principle as Munger and Warren Buffett built their empire, Berkshire Hathaway. Like many fans of Munger and Buffett, I keep these sage words in mind when looking for my next investment. And of course, there’s no shortage of “wonderful businesses” in the stock market; the problem is that most of them are trading at a premium in today’s lofty market environment.  Last August, I told my premium Top Stock Advisor readers about the numerous indicators pointing toward high market valuations. More specifically, I mentioned that the S&P 500 was sporting a forward 12-month P/E ratio of 17.7, which is higher than the five-year average of 15.4 and the 10-year average of 14. On top of that, the cyclically adjusted price-to-earnings ratio, or CAPE, had surpassed the levels of 2008 and was nearing Great Depression-era levels. —Sponsored Link— Trump’s Set To Send This $0.24 Stock Exploding Higher! Investors in this tiny company will love Trump for what he’s… Read More

Stocks appear to be overvalued, but there is still room for additional gains. In part, that is due to all the uncertainty in the markets at the beginning of the year. Even analysts at Wall Street’s biggest firms find themselves trying to understand the new environment. Tax reform is now being factored into earnings estimates. And while analysts still aren’t sure what the full impact will be, there is consensus that earnings will be higher.  —Sponsored Link— The ‘Picks And Shovels’ Of Marijuana The real money during the Gold Rush was in the picks and… Read More

Stocks appear to be overvalued, but there is still room for additional gains. In part, that is due to all the uncertainty in the markets at the beginning of the year. Even analysts at Wall Street’s biggest firms find themselves trying to understand the new environment. Tax reform is now being factored into earnings estimates. And while analysts still aren’t sure what the full impact will be, there is consensus that earnings will be higher.  —Sponsored Link— The ‘Picks And Shovels’ Of Marijuana The real money during the Gold Rush was in the picks and shovels. With California legalizing recreational use and Canada coming online this year, pot stocks are up over 400% in months. But which are best long term? Where is the real money and how can we profit? Read the full story. You can see that consensus in the chart below, which shows earnings per share (EPS) estimates for the S&P 500 from three large financial firms. To develop these estimates, analysts weight the earnings of individual companies using the same weights used in the price index. Increases range from just $7 per share… Read More

As I’ve said before, it’s best to approach ultra-high yields above 10% with a healthy amount of skepticism. More often than not, the lofty rate stems from a plunging share price, not from a rising distribution. And stocks seldom get cut in half without a reason — particularly when the major averages are setting new highs almost daily.  I found 170 candidates in this month’s screen offering rich payouts of 10% to 15%. Frankly, most of these obscure businesses aren’t worth your time or money. Many are irreparably damaged and in terminal decline. But if you dig through enough rubble,… Read More

As I’ve said before, it’s best to approach ultra-high yields above 10% with a healthy amount of skepticism. More often than not, the lofty rate stems from a plunging share price, not from a rising distribution. And stocks seldom get cut in half without a reason — particularly when the major averages are setting new highs almost daily.  I found 170 candidates in this month’s screen offering rich payouts of 10% to 15%. Frankly, most of these obscure businesses aren’t worth your time or money. Many are irreparably damaged and in terminal decline. But if you dig through enough rubble, you sometimes get rewarded with a diamond in the rough. —Sponsored Link— Your Financial Planner Will NEVER Tell You This Income Trick… But those that know stand to make as much as $1,400 per week. That’s why nearly 65,000 Americans use this every day. But still, MILLIONS more could do this, yet don’t take advantage of it… DO NOT miss out on this opportunity… Click here for the full details. Occasionally, I run across solid businesses facing threats that are real, but over-exaggerated and surmountable. They might have temporarily drifted off… Read More

Today’s vernacular is riddled with acronyms ending in the letter “O”: IMO, YOLO, BOGO, and the newest one that’s most relevant to the investing racket, FOMO, which stands for “Fear of Missing Out”.  FOMO can often drive the type of investment behavior that can lead to bubbles and mania. We saw lots of FOMO during the dot-com bubble of the late 90s.  However, professionally speaking, “fear of missing out” sounds almost as absurd as “fear of success”. FOMO in relation to investment behavior is the notion that an investor will chase prices without regard to valuation or fundamentals, driven solely… Read More

Today’s vernacular is riddled with acronyms ending in the letter “O”: IMO, YOLO, BOGO, and the newest one that’s most relevant to the investing racket, FOMO, which stands for “Fear of Missing Out”.  FOMO can often drive the type of investment behavior that can lead to bubbles and mania. We saw lots of FOMO during the dot-com bubble of the late 90s.  However, professionally speaking, “fear of missing out” sounds almost as absurd as “fear of success”. FOMO in relation to investment behavior is the notion that an investor will chase prices without regard to valuation or fundamentals, driven solely by the fear of not being able to participate in a rally. When this happens on a widespread scale, many hearts are broken, and a lot of money is lost. Pundits and talking heads contend that the market is entering this phase. I can neither confirm nor deny this. However, there are a few late-cycle bargains level-headed investors can take advantage of at the expense of FOMO lemmings. #-ad_banner-#The Financials I Like Right Now If you’ve followed my writing on StreetAuthority, you’ll know that I’m a frequent fan of asset manager stocks and master limited partnerships (MLPs). These firms… Read More

The year is still young, but the S&P 500 has already run up more than 6%. That’s not bad at all — especially considering that we’re only two weeks into the year!  For such a short time, this is outstanding. And this should make you happy, especially if you subscribe to the so-called “January Theory,” which states that a strong (positive) month of January will often be followed by a strong year in the markets.  —Sponsored Link— The Only 5 Stocks To Buy And Hold For 2018 It may be one of the most controversial… Read More

The year is still young, but the S&P 500 has already run up more than 6%. That’s not bad at all — especially considering that we’re only two weeks into the year!  For such a short time, this is outstanding. And this should make you happy, especially if you subscribe to the so-called “January Theory,” which states that a strong (positive) month of January will often be followed by a strong year in the markets.  —Sponsored Link— The Only 5 Stocks To Buy And Hold For 2018 It may be one of the most controversial stories gripping the U.S. at the moment. But it’s already turned smart investors into millionaires. The best part — stocks that once returned 200%, 300%, even 500% are offering us another ground floor opportunity to double, if not triple our returns this year. To learn more about these stocks, check out the full story here. But the truth is that, as much as every investor’s situation is unique, every year in the stock market’s history is quite different from the rest, too. This year’s set of circumstances range from the enactment of the new corporate tax… Read More