Apple (Nasdaq: AAPL) surprised investors who were concerned about slowing iPhone sales when it reported its fiscal Q3 earnings in late July. While profits on the smartphone were down, Apple reported sales of 40.4 million iPhones, slightly beating projections by 400,000. The stock is up 9.5% since the earnings announcement, which is no doubt impressive. But I believe the key to understanding and profiting from AAPL going forward is acknowledging its shift from a high-growth business model to a mature one — and from a high-growth stock to a conservative investment. —Recommended Link— New Retirement Plan Lets You Schedule Payments… Read More

Apple (Nasdaq: AAPL) surprised investors who were concerned about slowing iPhone sales when it reported its fiscal Q3 earnings in late July. While profits on the smartphone were down, Apple reported sales of 40.4 million iPhones, slightly beating projections by 400,000. The stock is up 9.5% since the earnings announcement, which is no doubt impressive. But I believe the key to understanding and profiting from AAPL going forward is acknowledging its shift from a high-growth business model to a mature one — and from a high-growth stock to a conservative investment. —Recommended Link— New Retirement Plan Lets You Schedule Payments When You Want Retirees love this program because they see in advance exactly how much income they’ll make AND exactly when they’ll make it. And it’s 37% safer than the stock market. Check it out here. Unexpected growth isn’t entirely out of the question. The next iPhone could exceed sales expectations, or the company might introduce a new product that revolutionizes an industry. These events have happened before, and they explain why AAPL has one of the greatest growth histories of any stock. But shareholders have already been rewarded for those historic developments. New shareholders should expect their returns… Read More

I have a long time client who is always convinced that the financial sky is falling. Recently he called me, worried that the nation is $19 trillion in debt. He’s not alone in this worry — $19 trillion sounds like a lot. But is that a real number? And how fast is the debt train hurtling towards us? So I decided to do some research. #-ad_banner-# In the most recent audit of the Bureau of Fiscal Services for fiscal years 2014 and 2015 by the Government Accountability Office, the total gross federal debt outstanding is $18.138 trillion. That’s 4.5% less… Read More

I have a long time client who is always convinced that the financial sky is falling. Recently he called me, worried that the nation is $19 trillion in debt. He’s not alone in this worry — $19 trillion sounds like a lot. But is that a real number? And how fast is the debt train hurtling towards us? So I decided to do some research. #-ad_banner-# In the most recent audit of the Bureau of Fiscal Services for fiscal years 2014 and 2015 by the Government Accountability Office, the total gross federal debt outstanding is $18.138 trillion. That’s 4.5% less than $19 trillion. Don’t you feel better? Here’s one of the most interesting facts I uncovered. Nearly one third of the outstanding debt, 27.6% to be exact, is held by federal government agencies such as the Social Security Administration, FDIC, the Postal Service Retirees Fund, or the Department of Labor’s unemployment trust fund. If we subtract federally held debt then that means that $13.12 trillion of what the report refers to as marketable securities (they can be resold at any time) are held by the public. But all this debt is going to mature one day? Yes it is. In… Read More

If you invest in stocks, you probably love the thrill of buying an undervalued gem that rises 50% in a few months — or that triples over two years. Who doesn’t? It’s a great feeling. But it doesn’t happen every day. And counting on a big score is no substitute for a well-constructed, diversified portfolio that builds wealth over time. For most investors, the foundation of a long-term portfolio is a mix of large-, mid- and small-cap stocks that includes some dependable income payers. Dividend-paying stocks tend to be less volatile, and the income they generate provides ballast to a… Read More

If you invest in stocks, you probably love the thrill of buying an undervalued gem that rises 50% in a few months — or that triples over two years. Who doesn’t? It’s a great feeling. But it doesn’t happen every day. And counting on a big score is no substitute for a well-constructed, diversified portfolio that builds wealth over time. For most investors, the foundation of a long-term portfolio is a mix of large-, mid- and small-cap stocks that includes some dependable income payers. Dividend-paying stocks tend to be less volatile, and the income they generate provides ballast to a portfolio that also includes more aggressive offerings. #-ad_banner-#But in addition to those benefits, most dividend payers allow investors to generate wealth over time through an underrated strategy that couldn’t be simpler: using dividends to buy more shares by automatically reinvesting them. Dividend reinvestment is a common practice in retirement plans for investors under 59½. That’s because it allows for no-decision buy-and-hold investing in a portfolio that doesn’t allow withdrawals anyway. (Outside a retirement portfolio, it’s not a bad choice either — just remember that you’ll have to pay taxes on the dividend amounts, so you’ll need to use cash from… Read More

U.S. stocks are near record highs. Many analysts would have downplayed the possibility of such a feat back in January, when fears of a sharp slowdown in demand from China and rising interest rates caused a mini-panic among some investors (and an opportunity for the rest of us). The impressive rebound after the selloff came in recognition of the relative strength of the U.S. economy versus much of the rest of the world. Employment continued to rise, wages finally started inching higher, the Fed kept its power dry and energy prices rallied, but not so much as to cause harm… Read More

U.S. stocks are near record highs. Many analysts would have downplayed the possibility of such a feat back in January, when fears of a sharp slowdown in demand from China and rising interest rates caused a mini-panic among some investors (and an opportunity for the rest of us). The impressive rebound after the selloff came in recognition of the relative strength of the U.S. economy versus much of the rest of the world. Employment continued to rise, wages finally started inching higher, the Fed kept its power dry and energy prices rallied, but not so much as to cause harm to pocketbooks or corporate earnings. Investors also couldn’t help but recognize the solid financial and competitive positions many large global companies have established since the financial crisis. #-ad_banner-#Investors have overlooked several worrisome signs: continued sluggishness in China, Europe, Brazil and Russia; an apparently stepped-up pace of terrorist attacks from ISIS; turmoil in the Middle East; Great Britain’s shocking vote to leave the European Union; an unpredictable, even bizarre, U.S. presidential race; and, most recently, a disturbing series of shootings in the United States that put the nation on edge. As the old expression goes, the market climbs a wall of… Read More

#-ad_banner-#I have some important news to share with you today. Readers of our premium income advisory, The Daily Paycheck, know that longtime Chief Investment Strategist Amy Calistri recently learned that her mother has cancer. In light of this difficult news, Amy decided to step away from her role and focus on caring for her family. I’ll introduce Amy’s replacement in a moment, but first, I’d be remiss if I didn’t say a few things about my colleague and what she’s meant to us as well as her valued subscribers. We’ve learned much from Amy over the years. And… Read More

#-ad_banner-#I have some important news to share with you today. Readers of our premium income advisory, The Daily Paycheck, know that longtime Chief Investment Strategist Amy Calistri recently learned that her mother has cancer. In light of this difficult news, Amy decided to step away from her role and focus on caring for her family. I’ll introduce Amy’s replacement in a moment, but first, I’d be remiss if I didn’t say a few things about my colleague and what she’s meant to us as well as her valued subscribers. We’ve learned much from Amy over the years. And there’s perhaps no greater testament to that by looking at the results she’s produced in The Daily Paycheck. Here’s how she recapped her experience with the Daily Paycheck system in a parting note to her subscribers:       “It takes a bit of patience to be a Daily Paycheck investor. It’s not a get-rich-quick scheme. But with a little time and patience, The Daily Paycheck strategy can make a significant difference in anyone’s life. Let’s see how patience has paid off for us so far… In the roughly six and a half years… Read More

Markets have recovered their post-Brexit selloff, but that doesn’t mean the United Kingdom’s decision to leave the European Union won’t have some big effects on corporate profits.  While the actual process to leave the EU could take years, corporations will be positioning ahead of the new environment and clear winners will emerge before the separation is final.  #-ad_banner-#One group will be looking to capitalize on the power shift in the global financial market — U.S. banks. Not only will this group benefit as UK and EU competitors struggle with uncertainty, but its own government may be getting out of the… Read More

Markets have recovered their post-Brexit selloff, but that doesn’t mean the United Kingdom’s decision to leave the European Union won’t have some big effects on corporate profits.  While the actual process to leave the EU could take years, corporations will be positioning ahead of the new environment and clear winners will emerge before the separation is final.  #-ad_banner-#One group will be looking to capitalize on the power shift in the global financial market — U.S. banks. Not only will this group benefit as UK and EU competitors struggle with uncertainty, but its own government may be getting out of the way as well, something that’s weighed on the industry since 2009. One company in particular looks poised to benefit from the new scenario, and it’s just tripled its dividend in victory. London’s Pain Is The New World’s Gain As London sees its power as a major financial hub weaken one of the few winners of the Brexit vote could be U.S.-based banks. At risk are the current privileges enjoyed by UK-based firms to easily move staff around the European Union. EU leaders are saying “no” to trade negotiations without immigration concessions by the Britons, which could hold up a… Read More

The S&P 500 has already gained back much of its Brexit-related selloff, down just 0.7% from its June 23 close, but that doesn’t mean investors are out of the woods yet.  The market still has to deal with a myriad of problems from a slowing China to a seven-year bull market that has stretched valuations. Earnings for S&P 500 companies are expected to drop 5.2% when second quarter results start coming out next week, the fifth consecutive quarter of lower earnings and the worst run since 2009. #-ad_banner-#Even as the UK negotiates its exit from the European Union over the… Read More

The S&P 500 has already gained back much of its Brexit-related selloff, down just 0.7% from its June 23 close, but that doesn’t mean investors are out of the woods yet.  The market still has to deal with a myriad of problems from a slowing China to a seven-year bull market that has stretched valuations. Earnings for S&P 500 companies are expected to drop 5.2% when second quarter results start coming out next week, the fifth consecutive quarter of lower earnings and the worst run since 2009. #-ad_banner-#Even as the UK negotiates its exit from the European Union over the next two years, it will have to deal with an immediate recession in the second half of this year according to most economists. The effect on the global economy should be muted, but the uncertainty around trade could weigh on already sluggish growth.  There is one sector that stands to benefit from the Brexit vote and inevitable aftermath. Prices were hit hard after the vote, and it could be the next target for yield-hungry global investors.  Don’t Fight The Global Fed The S&P 500 is up just 2.6% since January 2015, months after the U.S. Federal Reserve ended its… Read More

Last week, U.S. stocks reached their high water marks for the year. Then on Friday, they were in freefall after UK voters narrowly voted to leave the European Union. The historic vote will have far-reaching political, social and economic ramifications. Stock markets around the globe were reeling amid the uncertainty surrounding Britain’s departure from the EU, which will influence everything from mortgage rates to foreign currency exchange. #-ad_banner-#Fortunately, we have limited direct exposure in High-Yield Investing. Most of my remaining holdings either have tangential exposure to UK markets or are well-positioned to ride out… Read More

Last week, U.S. stocks reached their high water marks for the year. Then on Friday, they were in freefall after UK voters narrowly voted to leave the European Union. The historic vote will have far-reaching political, social and economic ramifications. Stock markets around the globe were reeling amid the uncertainty surrounding Britain’s departure from the EU, which will influence everything from mortgage rates to foreign currency exchange. #-ad_banner-#Fortunately, we have limited direct exposure in High-Yield Investing. Most of my remaining holdings either have tangential exposure to UK markets or are well-positioned to ride out this storm. Still, even if my portfolio wasn’t directly in the line of fire, there was plenty of collateral damage. Bank lenders and businesses that rely on cross-continental trade were among the hardest hit. The ripple effects of this vote will be felt for many months to come. As is typically the case in turbulent times, cash is flowing into reliable safe harbors like gold and U.S. government bonds. From my vantage, the biggest upshot for us is that the current turmoil will likely stay the Federal Reserve’s hand and rule out any further… Read More

It’s been nearly eight years since the financial crisis, yet interest rates remain at recession-like levels. That’s good news for economic growth — but it’s a dismal situation for conservative investors relying on income, including millions of retirees who don’t want to take big risks to achieve a decent yield. The traditional safe havens — savings accounts, money market funds, CDs — offer yields that are laughably low. Money market mutual funds investing in government paper currently yield only around 0.33%. Your bank may offer 0.6% on a money market account, which invests in corporate debt but is FDIC-insured up… Read More

It’s been nearly eight years since the financial crisis, yet interest rates remain at recession-like levels. That’s good news for economic growth — but it’s a dismal situation for conservative investors relying on income, including millions of retirees who don’t want to take big risks to achieve a decent yield. The traditional safe havens — savings accounts, money market funds, CDs — offer yields that are laughably low. Money market mutual funds investing in government paper currently yield only around 0.33%. Your bank may offer 0.6% on a money market account, which invests in corporate debt but is FDIC-insured up to $250,000. Five-year CDs pay 1.2%, which is a paltry annual return for the privilege of locking up your money for half a decade. And recall that these rates were even lower before the Fed raised short-term rates by 25 basis points (0.25 percentage points) in December. #-ad_banner-#Now, it’s true that part of the reason that yields are low is that inflation has been close to nonexistent for years; some important goods and services — such as gasoline, natural gas and flat-screen TVs — have declined in price. So low yields haven’t been devastating in terms of purchasing power. But… Read More

Last year, Federal Reserve Board officials spent weeks telegraphing their first increase in short-term interest rates in years. When it finally happened in December no one was surprised. That’s how it should be.  The Fed’s job is to manage the nation’s money supply, in part by setting short-term interest rates, with a goal of balancing economic stimulus with inflation risk. If money supply is too loose, inflation can result; if it’s too tight, one might see a recession. But any interest rate change can be disruptive, altering business plans at companies around the world. So the Fed moves best when… Read More

Last year, Federal Reserve Board officials spent weeks telegraphing their first increase in short-term interest rates in years. When it finally happened in December no one was surprised. That’s how it should be.  The Fed’s job is to manage the nation’s money supply, in part by setting short-term interest rates, with a goal of balancing economic stimulus with inflation risk. If money supply is too loose, inflation can result; if it’s too tight, one might see a recession. But any interest rate change can be disruptive, altering business plans at companies around the world. So the Fed moves best when it’s deliberate and transparent, discussing moves for weeks or months before they happen. No surprises. #-ad_banner-#Last week’s decision not to change interest rate policy was no surprise, though a rate hike had been telegraphed and expected just a few weeks ago. The unexpectedly weak May employment report forced the Fed’s hand; the risk of recession if interest rates rise is too high. While not shocking, the Fed’s non-hike has significant consequences for stocks for the rest of the year. Here’s why: the only other opportunities to raise rates will be at one of the three remaining Fed Board meetings, in… Read More