Investors are creatures of habit. They do the same thing over and over again without a thought of approaching the market differently. Whether they invest in stocks, bonds, commodities or even currencies, everyone has their own entrenched way of choosing investments.  However, the best investors think outside of the box… Read More

The Russell 2000 had a good year — all things considered. The index has gained 13.7% in 2017 compared to a 19.6% return for the broader S&P 500 index. Both indices are charted in the graph below. But something doesn’t pass the smell test. While both indices have solid gains for the year, it’s interesting to note that most of the Russell 2000’s gains occurred since August 21, 2017, when the index closed at 1356.90. That means that more than 77% of the year’s gains have occurred in just the past 120 days. This is likely a result… Read More

The Russell 2000 had a good year — all things considered. The index has gained 13.7% in 2017 compared to a 19.6% return for the broader S&P 500 index. Both indices are charted in the graph below. But something doesn’t pass the smell test. While both indices have solid gains for the year, it’s interesting to note that most of the Russell 2000’s gains occurred since August 21, 2017, when the index closed at 1356.90. That means that more than 77% of the year’s gains have occurred in just the past 120 days. This is likely a result of an influx of retail investors. While that in and of itself isn’t too troubling, there’s something ominous about the valuation of the small-cap market index of the bottom 2,000 stocks in the Russell 3000 Index. You see, at its current value of roughly 1545, the stocks of the Russell 2000 have a combined value of approximately $4.5 trillion. #-ad_banner-#What’s so ominous about that? Well, the net income from these 2000 stocks is just $42 billion, meaning the Russell 2000 is priced at more than 107 times earnings. It doesn’t matter how you look at the markets today, but any… Read More

28 years ago, everyone was talking about how great the Japanese economy was performing. Its stock market was hitting all-time high after all-time high, and investor money was flowing freely into the island nation.  Then, the market crashed.  #-ad_banner-#Capital fled like roaches running from the light. And while things have improved significantly since these dark days, the Nikkei remains the lowest valued index in all the major world markets. Investors remain afraid to expose themselves to Japanese equities.  It’s within this value-depressed environment that the greatest opportunities lie. In fact, a strong argument can be made that Japan’s expanding economy… Read More

28 years ago, everyone was talking about how great the Japanese economy was performing. Its stock market was hitting all-time high after all-time high, and investor money was flowing freely into the island nation.  Then, the market crashed.  #-ad_banner-#Capital fled like roaches running from the light. And while things have improved significantly since these dark days, the Nikkei remains the lowest valued index in all the major world markets. Investors remain afraid to expose themselves to Japanese equities.  It’s within this value-depressed environment that the greatest opportunities lie. In fact, a strong argument can be made that Japan’s expanding economy is about to boom. The smart money is already positioning itself to capture long-term profits.  Here’s why now is the best time to invest in Japan. 3 Forces Lining Up Behind Japanese Equities 1. The Weak Yen A powerful central bank program of negative interest rates has returned the Japanese economy to a growth path. Low to negative interest rates have led to a weak currency, which promotes exports and works to lift the stock market. The Financial Times reported that net exports added a full percentage point to Japan’s annualized growth in the first quarter of 2017. Just… Read More

It’s amazing to think that most investors fight major trends in the markets. Despite countless volumes of academic and professional research extolling the virtues of a long-term investment outlook, most investors still attempt to grow their portfolios by betting on short- and medium-term shifts in the markets. This is reinforced by the preoccupation of the talking heads on the financial networks. I mean, why would anyone buy or sell a stock based on the quarterly performance of any company? It doesn’t make any sense. #-ad_banner-#If an investor bought a stock correctly, the shares were purchased based on some basic investment… Read More

It’s amazing to think that most investors fight major trends in the markets. Despite countless volumes of academic and professional research extolling the virtues of a long-term investment outlook, most investors still attempt to grow their portfolios by betting on short- and medium-term shifts in the markets. This is reinforced by the preoccupation of the talking heads on the financial networks. I mean, why would anyone buy or sell a stock based on the quarterly performance of any company? It doesn’t make any sense. #-ad_banner-#If an investor bought a stock correctly, the shares were purchased based on some basic investment thesis. And as long as that thesis holds true, the stock should be held. On the other hand, once an investment thesis no longer holds true, the stock should go away faster than Venezuelan prosperity.   But a long-term outlook isn’t to be used in isolation… Real wealth is created when investors anticipate long-term trends in combination with long-term outlooks. You see, large capital gains occur when investors follow the long-term social, political, and technological trends that are changing the world.  These trends, by default, significantly increase the likelihood of capital gains. That’s why it’s almost axiomatic that investors looking… Read More

Even if you believe economic growth and corporate earnings will pick up, it’s difficult to make the case that shares of U.S. companies are fairly-valued. Companies in the S&P 500 are expected to book earnings growth of 9.9% through 2017 according to analysts surveyed by FactSet Research.  That brings the index’s valuation to 17.7 times forward earnings, a premium of 26% on the S&P’s average of 14.0 over the last decade. Against this pricey environment, evidence has started to build that could disrupt the market.  We’ve already seen the eight-year bull market waver, with the S&P… Read More

Even if you believe economic growth and corporate earnings will pick up, it’s difficult to make the case that shares of U.S. companies are fairly-valued. Companies in the S&P 500 are expected to book earnings growth of 9.9% through 2017 according to analysts surveyed by FactSet Research.  That brings the index’s valuation to 17.7 times forward earnings, a premium of 26% on the S&P’s average of 14.0 over the last decade. Against this pricey environment, evidence has started to build that could disrupt the market.  We’ve already seen the eight-year bull market waver, with the S&P 500 struggling to move higher through March and April. A few tech stocks managed to drag the market higher in May but investors seem to be getting skittish. When the music stops on the second-longest bull market in history, the only investors left with chairs may be the ones that looked for growth outside U.S. markets. How Long Can The U.S. Bull Market Last? Just last week we got disappointing retail sales growth, and job growth has slowed this year compared to last. The Federal Reserve held to its outlook last week, withdrawing monetary support by raising rates and… Read More

Long second fiddle to the United States, China is racing to become the world’s largest economic power. Investors who heed the call are positioned to ride the bullish wave to handsome profits over the long term.  Make no mistake, China has and will continue to experience growing pains, but this is part of the economic expansion process. Savvy investors have used the short-lived bearish periods to snap up equities at deeply discounted prices.  And right now, it’s looking like the ideal time to buy into the Chinese financial sector.  The Current State Of The Chinese Economy Many investors were… Read More

Long second fiddle to the United States, China is racing to become the world’s largest economic power. Investors who heed the call are positioned to ride the bullish wave to handsome profits over the long term.  Make no mistake, China has and will continue to experience growing pains, but this is part of the economic expansion process. Savvy investors have used the short-lived bearish periods to snap up equities at deeply discounted prices.  And right now, it’s looking like the ideal time to buy into the Chinese financial sector.  The Current State Of The Chinese Economy Many investors were shaken by April’s nearly 3% decline in the Shanghai stock market.  The bearish volatility resulted from regulators clamping down on shadow banking and speculative trading. While short-term bearish, these moves will benefit patient investors.  The Xinhua News Agency recently stated that the changes toward stability, “have provided a good external environment and a window of opportunity to reduce leverage in the financial system, strengthen supervision and ward off risks… Over the past week, interbank rates trended higher, bond and capital markets suffered from sustained corrections and some institutions faced liquidity pressure. However, these have little impact on the stability of… Read More

I love discovering alpha in the stock market. Alpha, in this context, means excess returns relative to the return of a passive index fund over the same time period.  Alpha is the goal of every investor regardless of size, from the largest hedge funds to everyday investors. Sometimes, it takes looking outside of your comfort zone to find alpha. And right now, the emerging markets are where it’s at.  Emerging markets have soared over 17% this year. This is nearly 300% higher performance than the 6% or so year-to-date return of the S&P 500.  How Do I Invest In Emerging… Read More

I love discovering alpha in the stock market. Alpha, in this context, means excess returns relative to the return of a passive index fund over the same time period.  Alpha is the goal of every investor regardless of size, from the largest hedge funds to everyday investors. Sometimes, it takes looking outside of your comfort zone to find alpha. And right now, the emerging markets are where it’s at.  Emerging markets have soared over 17% this year. This is nearly 300% higher performance than the 6% or so year-to-date return of the S&P 500.  How Do I Invest In Emerging Markets? Don’t worry, it’s easy! Today’s stock market investors can capture emerging markets alpha via ETFs. Once reserved for wealthy and connected investors, ETFs are now available for every investor. Investing in ETFs is no different than buying any stock. ETFs provide ready-built diversification, liquidity, and access to a wide variety of markets.  There are genuinely diversified ETFs holding a basket of stocks across the emerging markets, and there are others that are nation- or even industry-specific.  3 Ways To Play Emerging Markets  1. India India is my favorite emerging market right now. The once-struggling economy has gained… Read More

We considered it “one of the biggest areas of opportunity in the coming years.” We even said, “this portfolio could provide some very lucrative picks…”  That was back in January 2015, when I first introduced the my International Opportunities portfolio to my premium newsletter, Maximum Profit.  At the time, I knew that the international space was fraught with rick — and opportunity. And with the power of the Maximum Profit system — which relies on two proven indicators (one fundamental and one technical) — I’d be able to sift through to find the real gems of this space. To be… Read More

We considered it “one of the biggest areas of opportunity in the coming years.” We even said, “this portfolio could provide some very lucrative picks…”  That was back in January 2015, when I first introduced the my International Opportunities portfolio to my premium newsletter, Maximum Profit.  At the time, I knew that the international space was fraught with rick — and opportunity. And with the power of the Maximum Profit system — which relies on two proven indicators (one fundamental and one technical) — I’d be able to sift through to find the real gems of this space. To be frank, however, the portfolio hasn’t quite lived up to my expectations. But I believe that’s beginning to change. I’ll touch on that in a moment… The portfolio started off booking a string of winners. Of the first six closed positions, five were winners with an average gain of 9% — nothing to write home about until you consider the fact that the average holding period was only 40 days. The only loss came in at 3%.  —Recommended Link— Use These ‘Rockefeller Stocks’ To Unlock Your Natural Resource Fortune! Rockefeller’s favorite thing in the world was to “see his dividends coming… Read More

The eurozone is experiencing a perfect storm of bullish catalysts. Tremendous profits are available for risk-embracing investors who heed the clear economic signals.  The Risk Make no mistake, political risk, although improving, remains high in Europe. The eurozone has experienced quite a bit of volatility this year. Greece, Brexit, and fears of a nationalist French state following Brexit out of the European Union added tremendous political uncertainty to the financial markets.  The Bullish Case Fortunately, many of these fears have proven unfounded. The recent French election resulted in the victory of the pro-eurozone candidate, improving sentiment across the… Read More

The eurozone is experiencing a perfect storm of bullish catalysts. Tremendous profits are available for risk-embracing investors who heed the clear economic signals.  The Risk Make no mistake, political risk, although improving, remains high in Europe. The eurozone has experienced quite a bit of volatility this year. Greece, Brexit, and fears of a nationalist French state following Brexit out of the European Union added tremendous political uncertainty to the financial markets.  The Bullish Case Fortunately, many of these fears have proven unfounded. The recent French election resulted in the victory of the pro-eurozone candidate, improving sentiment across the board.  Due to the political uncertainty, on a price-to-book ratio European equities are nearing levels equivalent to U.S. equities’ 40-year lows. Eurozone equities have severely underperformed the U.S. market since the 2008 rout. As a result, full value has not been realized and opportunities exist for profit-seeking investors.  Analysts are forecasting EU stock earnings growth of 11 percent in 2017 due to the commodity recovery, small margins, and improved currency environment. When compared to expected growth of just 9 percent in the United States, it’s obvious where the opportunity lies. 5 Ways To Ride The European Bull Market 1. Federated… Read More

Canada is a weird place. Having lived in Ottawa for several years, I have experienced first-hand both the differences and similarities between the United States and Canada. But while the popular food, styles, and music are very different from the United States, investment styles are very similar. Canadian stock market investors utilize similar investment criteria to locate winning stock picks. The crucial difference is in the philosophy of Canadian investors. Canadians tend to be much more conservative and risk averse than their American cousins. However, this observation is countered by the infamous Vancouver Stock Exchange (VSE). Although it is now… Read More

Canada is a weird place. Having lived in Ottawa for several years, I have experienced first-hand both the differences and similarities between the United States and Canada. But while the popular food, styles, and music are very different from the United States, investment styles are very similar. Canadian stock market investors utilize similar investment criteria to locate winning stock picks. The crucial difference is in the philosophy of Canadian investors. Canadians tend to be much more conservative and risk averse than their American cousins. However, this observation is countered by the infamous Vancouver Stock Exchange (VSE). Although it is now defunct, the VSE was notorious for shaky companies, bad accounting, and investors getting wiped out! Talk about a weird juxtaposition. One of the riskiest stock exchanges on earth was found in the conservative, buttoned-down-investment nation of Canada. But now, one of the world’s most respected exchanges is domiciled in Canada. The Toronto Stock Exchange (TSX) is an ideal place to locate the best Canadian stocks. I particularly like the security of stocks traded on both the NYSE and TSX. To be clear, I am in no way saying that cross-exchange listings mitigate all risk in a stock. That said, knowing… Read More