Next time you see your landlord ask him or her to buy you a beer.  If they’re like the millions of other landlords across the country, chances are they are having another great year. U.S. rents have reached another all-time high in 2016. A recent report from Apartment List, a rental market research company, showed that national rents hit a new all-time high in August of 2016. Take a look below. And 2% is just the national average. In many cities, the influx of new residents is outpacing the construction of new apartments. There just isn’t any space… Read More

Next time you see your landlord ask him or her to buy you a beer.  If they’re like the millions of other landlords across the country, chances are they are having another great year. U.S. rents have reached another all-time high in 2016. A recent report from Apartment List, a rental market research company, showed that national rents hit a new all-time high in August of 2016. Take a look below. And 2% is just the national average. In many cities, the influx of new residents is outpacing the construction of new apartments. There just isn’t any space to build in downtown Chicago or Boston, yet rental demand is climbing 6% to 7% annually. That leads to a shortage of available units, which inevitably exerts upward pressure on prices.  A decent unit runs about $1,500 per month in Denver and $2,200 in Washington. #-ad_banner-#Those price gains are being driven by simple economics — rising demand and limited supply. And looking forward there doesn’t appear to be any quick solution. U.S. housing inventories are near a record low and new home buyers are struggling to save enough cash to make a down payment. Also, tightened bank lending standards have… Read More

Quick, what’s 0.19% of $3.6 trillion? I’ll give you a hint: that’s how much, on average, passively “managed” mutual fund giant Vanguard Group collects in management fees annually. Since Vanguard is not a publicly traded entity, the actual revenue numbers are held pretty close to the vest. But the math comes out to be $6.8 billion in fees based on the average Vanguard fund expense ratio of 0.19%. #-ad_banner-#So, while the fund company prides itself on being shareholder owned, and pounds the table on passing value to the investor, make no mistake, Vanguard is a business and a profitable one… Read More

Quick, what’s 0.19% of $3.6 trillion? I’ll give you a hint: that’s how much, on average, passively “managed” mutual fund giant Vanguard Group collects in management fees annually. Since Vanguard is not a publicly traded entity, the actual revenue numbers are held pretty close to the vest. But the math comes out to be $6.8 billion in fees based on the average Vanguard fund expense ratio of 0.19%. #-ad_banner-#So, while the fund company prides itself on being shareholder owned, and pounds the table on passing value to the investor, make no mistake, Vanguard is a business and a profitable one at that. And while Vanguard founder John Bogle is nowhere close to being a Wall Street fat cat, his tenure at the company made him an incredibly wealthy man by most standards.  The other day while driving in to work, I listened to an interview with Mr. Bogle on Bloomberg radio, as always, trumpeting his case for cheap, passive index investing. He complained, like most of us, of the low-rate, low-growth environment. He said that the stock market is overvalued with a forward P/E of 20-plus (most estimates put it closer to 18), dividend yields barely around 2%, and U.S. Read More

It’s nearly over… With Election Day finally upon us, the rumblings from both sides regarding the “doomsday” scenario that will fall upon our economy should their opponent get elected continue to grow louder. But here’s the thing… both sides are probably right. Do I think we’re going fall into a recession in the future? Yes, absolutely. It’s part of the economic cycle. Now I know this sort of talk might anger folks, especially those who like to point fingers and give blame to the opposing party. But the truth is that the market doesn’t really care who you vote for. Read More

It’s nearly over… With Election Day finally upon us, the rumblings from both sides regarding the “doomsday” scenario that will fall upon our economy should their opponent get elected continue to grow louder. But here’s the thing… both sides are probably right. Do I think we’re going fall into a recession in the future? Yes, absolutely. It’s part of the economic cycle. Now I know this sort of talk might anger folks, especially those who like to point fingers and give blame to the opposing party. But the truth is that the market doesn’t really care who you vote for. —Recommended Link— The Best Place To Put Your Money In 2017 Since 1926, one collection of stocks has accounted for HALF of the S&P’s return — through every market environment imaginable. If you don’t have this group in your own portfolio, you could be missing out on the single best place to put your money this year and next. Get the details here… It’s true that the market has been more volatile than usual in the weeks leading up to today. The CBOE Volatility Index was at the top of its longest streak of gains since 2013 at the… Read More

There is more to successful dividend investing than just buying high yielding stocks and waiting. Many investors mistakenly believe that wealth is easily created by holding onto high dividend-paying companies. Nothing could be further from the truth.  #-ad_banner-#Wealth is created in the stock market by a combination of dividend reinvestment and buying solid companies at a discounted price — in other words, dividend paying companies that have been unfairly beaten lower by irrational investor fears. Using this tactic combines the very real compounding power of dividend reinvestment on top of a high potential for stock price appreciation, creating an unbeatable… Read More

There is more to successful dividend investing than just buying high yielding stocks and waiting. Many investors mistakenly believe that wealth is easily created by holding onto high dividend-paying companies. Nothing could be further from the truth.  #-ad_banner-#Wealth is created in the stock market by a combination of dividend reinvestment and buying solid companies at a discounted price — in other words, dividend paying companies that have been unfairly beaten lower by irrational investor fears. Using this tactic combines the very real compounding power of dividend reinvestment on top of a high potential for stock price appreciation, creating an unbeatable wealth-building strategy.  I have discovered three dividend-paying stocks trading well off their highs that will make excellent candidates for this approach. The Power Of Dividend Reinvestment Dividends alone make up a huge part of the overall total returns of the stock market. In fact, the numbers astounded me. Morgan Stanley published a study revealing that, since 1930, 42% of all U.S. stock market returns were due to dividends! Talk about a powerful stock market force that cannot be ignored. Dividend reinvestment means plowing the cash earned from the dividends back into the stock. Simply stated, it means buying more… Read More

Sixteen years ago I was thinner and had more hair. I also had a front-row seat to watch what was billed at the time as “the merger of the century”: AOL and Time Warner. What began as a perfect marriage of one of the best content and broadcast distribution complexes on the planet to the media distribution platform of tomorrow — a combo that would have an initial market cap of $350 billion (unheard of at the time) — ended in a whimpering split with both entities deeply discounted.  #-ad_banner-#After the divorce, AOL evolved from its original persona as an… Read More

Sixteen years ago I was thinner and had more hair. I also had a front-row seat to watch what was billed at the time as “the merger of the century”: AOL and Time Warner. What began as a perfect marriage of one of the best content and broadcast distribution complexes on the planet to the media distribution platform of tomorrow — a combo that would have an initial market cap of $350 billion (unheard of at the time) — ended in a whimpering split with both entities deeply discounted.  #-ad_banner-#After the divorce, AOL evolved from its original persona as an internet service provider to an actual, online content destination featuring sites such as the Huffington Post and MapQuest. AOL was acquired by AT&T’s chief wireless rival Verizon (NYSE: VZ) in 2015. Time Warner carried on business as usual, creating a seemingly endless stream of media content and distributing it via its cable networks and movie studios. But the more things change, the more they stay the same. Now, as a dominant force in wireless telecom, internet, and television distribution with its recent acquisition of DIRECTV, AT&T (NYSE: T) is determined to not only control every screen we watch but what… Read More

I’m the lucky dad of teenage boys. Financial markets remind me of teenage boys: brilliant, rewarding, inspiring at times and other times frustrating, erratic, and just plain stupid. I’ve found the key to dealing with both is consistency, clear objectives, and conviction. #-ad_banner-#And although many market observers may describe the language of the Federal Reserve as vague and obtuse, I’m starting to think that Dr. Yellen and Company share my “the market as teenage boy” philosophy. They want rates to return to some form of normalcy, but the economic conditions must warrant the action first. They waited and waited before… Read More

I’m the lucky dad of teenage boys. Financial markets remind me of teenage boys: brilliant, rewarding, inspiring at times and other times frustrating, erratic, and just plain stupid. I’ve found the key to dealing with both is consistency, clear objectives, and conviction. #-ad_banner-#And although many market observers may describe the language of the Federal Reserve as vague and obtuse, I’m starting to think that Dr. Yellen and Company share my “the market as teenage boy” philosophy. They want rates to return to some form of normalcy, but the economic conditions must warrant the action first. They waited and waited before finally taking action in December 2015, raising the base federal funds rate a quarter of a percent. This signaled a desire to return to more realistic interest rates while reiterating that it will be an exceedingly long process to get back to their target rates. And the market, like a teenager, pouted as the S&P 500 pulled back 11% from December 2015 to February 2016. Do we expect the market to go down when the fed raises the rate again? Maybe not as much, as perhaps it’s “learned” the consequences. Then again, I’m an optimist. No, any pullback will be… Read More

My dad is an attorney who’s practiced for over 50 years and has specialized in commercial real estate law on the builder and developer side. Many of my clients are part of successful, multi-generational, family real estate businesses. Being around it for as long as I have, I know enough to be dangerous mainly through osmosis. #-ad_banner-# Real estate investment trusts (REIT’s) are a bit of a different animal than traditional real estate investing, because the investors only hold a securitization of physical real estate. However, the idea is the same: a steady income stream derived from rents and leases… Read More

My dad is an attorney who’s practiced for over 50 years and has specialized in commercial real estate law on the builder and developer side. Many of my clients are part of successful, multi-generational, family real estate businesses. Being around it for as long as I have, I know enough to be dangerous mainly through osmosis. #-ad_banner-# Real estate investment trusts (REIT’s) are a bit of a different animal than traditional real estate investing, because the investors only hold a securitization of physical real estate. However, the idea is the same: a steady income stream derived from rents and leases with capital appreciation thanks to sales and increased property values. In the current, multi- year, sub-basement interest rate environment, REITs have been a default go to sector for yield hungry investors. Naturally, the sector has performed well. The other day, I stumbled across (literally) a recent research report from Lazard’s (NYSE: LAZ) asset management arm. Looks like REITs have delivered some strong as rope five year numbers. So does it make sense to put new money to work in the sector? I believe so. Drilling down a bit more into the report, Lazard sees net operating income (NOI)… Read More

I recently had the honor of taking over the reins for one of the most successful premium investment services in StreetAuthority’s 15-year history. For those who may not be familiar, this service is called The Daily Paycheck. And although I just took over this service, to be quite honest, I’ve been a big believer in the principles behind it for years. Many of our followers see the merits of the system, too. In fact, a large number of subscribers who have been with us since Day 1 — all the way back in December 2009. They’ve seen firsthand as the… Read More

I recently had the honor of taking over the reins for one of the most successful premium investment services in StreetAuthority’s 15-year history. For those who may not be familiar, this service is called The Daily Paycheck. And although I just took over this service, to be quite honest, I’ve been a big believer in the principles behind it for years. Many of our followers see the merits of the system, too. In fact, a large number of subscribers who have been with us since Day 1 — all the way back in December 2009. They’ve seen firsthand as the portfolio’s initial $200,000 stake has grown into the $330,000-plus portfolio it is today. New subscribers are now greeted with a portfolio of more than 50 securities. And the questions we get asked most are 1) How do I get started? and 2) Can I use this strategy if I have less than $200,000 to invest? The short answers to those questions are: slowly and absolutely.  Let me explain… — Sponsored Link — Why Do Dividend Payers Beat Other Stocks?​ Everyone knows that dividend payers crush other stocks. It’s not a matter of opinion. You can just look at the stats. Read More

As income investors, the goal for most of us is to find a solid stock with an above-average yield and stay for the long haul.  #-ad_banner-#Anyone who is familiar with my premium newsletter, The Daily Paycheck, knows we try to do just that by searching for securities that will do one of three things: maximize income, maximize growth or minimize risk. We consider these key traits the three interlocking gears of our retirement system’s engine. They work together to ensure our portfolio runs as smoothly and efficiently as possible.  But we’ve also found a way to turbocharge that engine. By… Read More

As income investors, the goal for most of us is to find a solid stock with an above-average yield and stay for the long haul.  #-ad_banner-#Anyone who is familiar with my premium newsletter, The Daily Paycheck, knows we try to do just that by searching for securities that will do one of three things: maximize income, maximize growth or minimize risk. We consider these key traits the three interlocking gears of our retirement system’s engine. They work together to ensure our portfolio runs as smoothly and efficiently as possible.  But we’ve also found a way to turbocharge that engine. By adding one simple feature, we’re able to greatly multiply our portfolio’s capacity to generate consistent income. I’m talking about reinvesting dividends.  Dividend reinvestment is a powerful strategy that too few investors take advantage of, largely because it rarely gets talked about by the financial community. Dividend reinvestment pays you more over the long haul because it puts your dividends to work. When you use your dividends to purchase more shares, those additional shares pay you higher dividends, which in turn buy you more shares. In a nutshell, dividend reinvestment compounds your growth and can increase your income potential exponentially.  But… Read More

As investors, we face a great deal of uncertainty. We don’t know who the next President will be or which party will control the House or Senate. We don’t know when, or even if, the Federal Reserve will raise rates. We don’t know how far other central banks around the world will take negative interest rates.  Personally, I don’t expect much to change in the next few months. Interest rates will remain low and elections will continue to be held. Any changes to the current political and economic environment are likely to be small. This means, as investors, we can… Read More

As investors, we face a great deal of uncertainty. We don’t know who the next President will be or which party will control the House or Senate. We don’t know when, or even if, the Federal Reserve will raise rates. We don’t know how far other central banks around the world will take negative interest rates.  Personally, I don’t expect much to change in the next few months. Interest rates will remain low and elections will continue to be held. Any changes to the current political and economic environment are likely to be small. This means, as investors, we can remain focused on finding high-quality stocks with higher-than-average income, like the recent recommendation I made to my Maximum Income premium readers, Ford Motor (NYSE: F). —Recommended Link— The Next Epidemic (It Isn’t Zika Or Ebola)… While Zika and Ebola steal headlines, a much more dangerous epidemic has been developing in our hospitals. The CDC barely mentions it. But a NASA scientist, a Harvard MD, and a Johns Hopkins surgeon have shown that it’s claiming more lives than strokes, Alzheimer’s, and diabetes — combined… Full story here.  Ford is a company that needs no introduction. That, in a nutshell, is… Read More