Eat your peas! Wash your hands! Do your homework! Sounds familiar, right? None of us got to adulthood without following a set of simple rules. Of course, mom was right… Whether you’re a kid or an adult approaching retirement, all of these rules are important.  Especially the homework rule.  Doing your homework, knowing your investments and researching the new ones is a very important and necessary part of being a successful investor.  Worry not, though. If you’re a subscriber to my Daily Paycheck premium income newsletter service, I do the homework for you. Even if you sometimes don’t feel like… Read More

Eat your peas! Wash your hands! Do your homework! Sounds familiar, right? None of us got to adulthood without following a set of simple rules. Of course, mom was right… Whether you’re a kid or an adult approaching retirement, all of these rules are important.  Especially the homework rule.  Doing your homework, knowing your investments and researching the new ones is a very important and necessary part of being a successful investor.  Worry not, though. If you’re a subscriber to my Daily Paycheck premium income newsletter service, I do the homework for you. Even if you sometimes don’t feel like it… Besides researching stocks and funds, my own homework includes a healthy dose of staying on top of all the latest news and studying what others think about the market. Plus, when I can, I also look at what other experienced investors are doing, taking the opportunity to learn from the knowledge and practical experience of others.  But this doesn’t just mean we should blindly take positions in companies other experienced investors like, regardless of how rich and famous those investors happen to be.  —Sponsored Link— New ‘Perfect Retirement Business’ Could Make You $100s Per Week… Read More

Even with the market setting new highs day after day, we haven’t really seen the kind of celebratory mood that should come with such record-breaking performances. Don’t get me wrong, it’s great to see stocks rallying. In the past 12 months alone, defying skeptics, the S&P 500 index added some 18.7%, including dividends. The S&P’s annual return is impressive, but it’s still lagging behind the Nasdaq Composite’s 29%, and the blue-chip Dow Industrials, which returned 22% the past year. And this is on top of an already-strong showing, which became the second-longest bull market on record as of last May. Read More

Even with the market setting new highs day after day, we haven’t really seen the kind of celebratory mood that should come with such record-breaking performances. Don’t get me wrong, it’s great to see stocks rallying. In the past 12 months alone, defying skeptics, the S&P 500 index added some 18.7%, including dividends. The S&P’s annual return is impressive, but it’s still lagging behind the Nasdaq Composite’s 29%, and the blue-chip Dow Industrials, which returned 22% the past year. And this is on top of an already-strong showing, which became the second-longest bull market on record as of last May. Still, judging by the emails I’ve been getting, many investors are nervous. It’s not surprising that the memory of the last bear market is still fresh in the minds of many investors. After all, it’s only been eight years since the S&P 500 bottomed (along with many retirement accounts). And that crash came soon after the dot-com crash at the turn of the century. The investors who needed that money the most — recent retirees and those who were about to retire — suffered immensely through these two downturns. It’s quite possible that the stress of these two bear markets… Read More

What an incredible year it’s been in the stock market. The Nasdaq has soared over 29%, and the DJIA and the S&P 500 are both trading higher by more than 15% during the last 52 weeks.  Investors rejoiced as the Trump administration made one broad-reaching, bullish proclamation after another. Talk of revitalizing the American economy, major tax reform, and huge infrastructure spending has supercharged core industries, taking the stock market along for the ride.  It’s seemed like there’s been nowhere to go but up as Trump-driven enthusiasm sweeps the economy.  Investors Beware The old saying holds true for the… Read More

What an incredible year it’s been in the stock market. The Nasdaq has soared over 29%, and the DJIA and the S&P 500 are both trading higher by more than 15% during the last 52 weeks.  Investors rejoiced as the Trump administration made one broad-reaching, bullish proclamation after another. Talk of revitalizing the American economy, major tax reform, and huge infrastructure spending has supercharged core industries, taking the stock market along for the ride.  It’s seemed like there’s been nowhere to go but up as Trump-driven enthusiasm sweeps the economy.  Investors Beware The old saying holds true for the stock market: What goes up, must come down. Historically high levels hit a significant speed bump on May 17, with a sharp decline across the board. While the market quickly recovered, it revealed a major disconnect in the Trump-fueled rally.  Remember, the stock market is an anticipatory mechanism, meaning it moves based on what is expected to happen rather than what has occurred. The dramatic enthusiasm for change is being tempered by political challenges. The President’s rhetoric is no longer enough to power the economic boom — investors want the promised changes to actually materialize.  Frustration is starting to set… Read More

Around our house, the month of May always seems to be unusually hectic. My wife is a teacher, so she is buttoning up her school year. My teenagers are furiously studying for and taking exams. Often, it seems that this domestic volatility is also found in the market. There is some truth to the investing adage “sell in May and go away.” This 10-year chart is compelling evidence. Over the last 10 years, the S&P 500 has experienced noticeable volatility during the month of May 9 out of 10 times. Would you have been better off selling and… Read More

Around our house, the month of May always seems to be unusually hectic. My wife is a teacher, so she is buttoning up her school year. My teenagers are furiously studying for and taking exams. Often, it seems that this domestic volatility is also found in the market. There is some truth to the investing adage “sell in May and go away.” This 10-year chart is compelling evidence. Over the last 10 years, the S&P 500 has experienced noticeable volatility during the month of May 9 out of 10 times. Would you have been better off selling and sitting on cash? Maybe, maybe not. However, as we approach the mid-year point, there are a few things investors can do to ensure their portfolio is well positioned for the second half of the year. Here are three key steps to take for a summer portfolio checkup. 1. Review Non-Core Holdings Good portfolio construction should include both core and non-core stocks. Core stocks would be those purchased based on a long-term, strategic story like the rise of the global middle class, the Internet of things, the aging baby boomer population, or consistent dividend growth. These are phenomena that take… Read More

“Sometimes I wonder whether the world is being run by smart people who are putting us on or by imbeciles who really mean it.” The above is a quote by Laurence J. Peter, the man who formulated the Peter Principle. For the uninitiated, the Peter Principle states that an employee is promoted based on their performance in their current position — not on their ability to do the new job. This means the employee will continue to receive promotions until they get a job they can’t do.  Once they reach this level, they have gone as far as they can… Read More

“Sometimes I wonder whether the world is being run by smart people who are putting us on or by imbeciles who really mean it.” The above is a quote by Laurence J. Peter, the man who formulated the Peter Principle. For the uninitiated, the Peter Principle states that an employee is promoted based on their performance in their current position — not on their ability to do the new job. This means the employee will continue to receive promotions until they get a job they can’t do.  Once they reach this level, they have gone as far as they can in that organization. Peter called this level their “level of incompetence.” Unfortunately, once an employee reaches his level of incompetence, the organization begins to suffer. And by default, the customers of that organization are harmed by the incompetent person’s inability to do their job. What The Peter Principle Looks Like In Reality The Wall Street Journal has been taking comments in an online debate over the idea of investing the Social Security trust fund in stocks. The idea is that the Social Security trust fund has about $2.9 trillion in assets that, if invested in… Read More

If you’re like most investors, you have some kind of goal in mind. And while there are many specific goals and plans to reach them, at the end of the day, I’m willing to bet that the ultimate goal is long-term wealth. Specifically, you want to be a millionaire. If that’s your goal, then it simply can’t happen without dedicating a portion of your portfolio to aggressive growth stocks. Now don’t get me wrong. You should invest in stable, reliable assets like dividend-paying stocks, blue chips, index funds, and the like. In fact, most of your portfolio — let’s say… Read More

If you’re like most investors, you have some kind of goal in mind. And while there are many specific goals and plans to reach them, at the end of the day, I’m willing to bet that the ultimate goal is long-term wealth. Specifically, you want to be a millionaire. If that’s your goal, then it simply can’t happen without dedicating a portion of your portfolio to aggressive growth stocks. Now don’t get me wrong. You should invest in stable, reliable assets like dividend-paying stocks, blue chips, index funds, and the like. In fact, most of your portfolio — let’s say 80% — should go into these types of investments. But the other 20%? That’s different. Invest that other 20% of your money into big ideas that are changing the world. —Recommended Link— Leaked: Stock Indicator Predicts Market Crash This indicator avoided the 2008 market crash… and got you back into the market just four days after the bottom. To use it, click here. Why? Well, to put it simply, these are the companies that stand the best chance of dramatically increasing your profit potential. That special 20% is important. In fact, it’s the entire focus of y premium newsletter,… Read More

Let’s not beat around the bush… You’re probably not going to like what I have to say in today’s issue.  But that’s OK. Many of you need to hear it.  #-ad_banner-#It’s time for a little tough love in today’s issue. If you’ve been thinking to yourself lately that you could use a good pep talk, then today is your lucky day. As for everyone else, feel free to tune out.  Even ‘Perfect’ Portfolios Experience Painful Losses I’d like you to consider for a moment an interesting find made by the folks at AlphaArchitect, a prominent “robo-advisor”… Read More

Let’s not beat around the bush… You’re probably not going to like what I have to say in today’s issue.  But that’s OK. Many of you need to hear it.  #-ad_banner-#It’s time for a little tough love in today’s issue. If you’ve been thinking to yourself lately that you could use a good pep talk, then today is your lucky day. As for everyone else, feel free to tune out.  Even ‘Perfect’ Portfolios Experience Painful Losses I’d like you to consider for a moment an interesting find made by the folks at AlphaArchitect, a prominent “robo-advisor” firm. (A robo-advisor is an online wealth management firm that uses complex algorithms to custom design portfolios for clients.) The question: If you were God, could you create a hedge fund so good that you would never get fired? The study assumes you are able to know the returns for all stocks in the S&P 500 for the next five years ahead of time. This level of omniscience comes with a catch, though. You have to hold your positions for the entire five-year duration. Only then can you rebalance the portfolio by selling those… Read More

Flying an airplane is one of my passions. The view from 4,500 feet on a clear day is just unbelievably refreshing. Despite my passion for flying, there are inherent risks in taking an aircraft 10,000 feet above the earth. Everything from weather to mechanical issues can provide a brutal end to an otherwise beautiful day. #-ad_banner-#So safety is paramount when planning a trip. Whether the trip is to practice landings or a cross-country trip, emergency planning is the rule. Now, think about what equipment you’d want when flying — beyond the most basic stuff like fuel and a properly functioning… Read More

Flying an airplane is one of my passions. The view from 4,500 feet on a clear day is just unbelievably refreshing. Despite my passion for flying, there are inherent risks in taking an aircraft 10,000 feet above the earth. Everything from weather to mechanical issues can provide a brutal end to an otherwise beautiful day. #-ad_banner-#So safety is paramount when planning a trip. Whether the trip is to practice landings or a cross-country trip, emergency planning is the rule. Now, think about what equipment you’d want when flying — beyond the most basic stuff like fuel and a properly functioning aircraft. The most obvious piece of equipment is a GPS. A good GPS provides the pilot with information about the position of the aircraft in relation to the earth, but most models today provide weather data as well as charts identifying backup airports in the event of an emergency. Another piece of equipment essential to the safe operation of an aircraft is a radio. The ability to communicate with air traffic control — especially when the weather unexpectedly turns — is critical. And that alone has saved thousands of lives. So what does flying have to do with investing? It… Read More

Many investors spend their time trying to find a dark horse stock that will come out of nowhere to provide monster gains. While this can yield spectacular results for a lucky few, the majority of investors fail most of the time. I take the exact opposite approach to investing. In my premium newsletter, Maximum Profit, I look for stocks that have already proven themselves to be winners, waiting till they have a big lead before placing my bet. To most investors, especially those considered value investors, this probably sounds ludicrous. We have all been taught we need to… Read More

Many investors spend their time trying to find a dark horse stock that will come out of nowhere to provide monster gains. While this can yield spectacular results for a lucky few, the majority of investors fail most of the time. I take the exact opposite approach to investing. In my premium newsletter, Maximum Profit, I look for stocks that have already proven themselves to be winners, waiting till they have a big lead before placing my bet. To most investors, especially those considered value investors, this probably sounds ludicrous. We have all been taught we need to “buy low, sell high.” So how can buying “high” possibly make for a sound investing strategy? #-ad_banner-#Well, I’ve never been a big gambler, but I do know a thing or two about odds. And I’d like to explain my strategy using a horse racing analogy.  Imagine you’re at a horse race, and while everyone else is placing their bets before the race, you get to bet after the race has already begun. In fact, you get to place your bet when there’s already a clear leader who looks likely to win the race. After all, experienced bettors know horses that… Read More

This may sound obvious (or not), but my Maximum Profit system profits from what’s working in the market at any given time — stocks that are already winning. After all, who would you rather pick in a straight-up contest, the hot team with the 10-game winning streak or the opponent who hasn’t won a game in the last four tries? The two picks I’m about to reveal come from the S&P 500’s strongest sector year-to-date: technology. Now, there’s a lot that goes into the system and its algorithms, but in simplest terms it finds winning trades by using two of… Read More

This may sound obvious (or not), but my Maximum Profit system profits from what’s working in the market at any given time — stocks that are already winning. After all, who would you rather pick in a straight-up contest, the hot team with the 10-game winning streak or the opponent who hasn’t won a game in the last four tries? The two picks I’m about to reveal come from the S&P 500’s strongest sector year-to-date: technology. Now, there’s a lot that goes into the system and its algorithms, but in simplest terms it finds winning trades by using two of the most powerful indicators from the worlds of technical and fundamental analysis. The first of these is known as relative strength. Relative strength (RS) — not to be confused with the relative strength index (RSI) — forms the foundation of my system. Relative strength is one of the few true edges available in the investing world. Even Eugene Fama, father of the Efficient Market Hypothesis (EMH) — which says that markets efficiently price stocks using all available information — called relative strength an “anomaly” (in a good way!). It’s been proven that stocks with high RS scores — stocks that… Read More