Stock investors have truly been blessed in 2016. The major averages have been rocketing higher despite dire predictions of a crash due to the uncertainty revolving around the current president-elect. Rather than dropping on this uncertainty, stocks have embraced the pro-business and nationalistic stance of the pending administration with an incredible vigor. But it poses the question: Is this the end of the bull market? To answer this vexing question, I decided to take a close look at the most popular stock market barometer for answers. What I discovered was surprising. While no one knows for certain what the future… Read More

Stock investors have truly been blessed in 2016. The major averages have been rocketing higher despite dire predictions of a crash due to the uncertainty revolving around the current president-elect. Rather than dropping on this uncertainty, stocks have embraced the pro-business and nationalistic stance of the pending administration with an incredible vigor. But it poses the question: Is this the end of the bull market? To answer this vexing question, I decided to take a close look at the most popular stock market barometer for answers. What I discovered was surprising. While no one knows for certain what the future holds, my research reveals that the bull market could easily last another two or more years. What Has Happened So Far? At the time of this writing, the Dow Jones Industrial Average (DJIA) has pushed another 100 points higher into the 19,900 area. Early in 2016, the DJIA hit a low in the 15,450 zone on pre-election jitters. Since that time, this index, affectionately known as the stock market barometer, has added over 14% in a steady climb higher. In the short time since the election, the index has risen by over 8%. #-ad_banner-#These figures mean that the DJIA… Read More

Legendary investor John Templeton had a simple explanation for the cycle of bull markets, saying they are “born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.” At 2,800-plus days and counting, the current bull market, which was born from the ashes of the 2008-2009 financial crises and has been the second-longest in history, seems to be exiting the skepticism stage and entering the optimism stage. Longtime subscribers of my premium investing service, Maximum Profit, know that I was very skeptical of how much longer the bull market would last at the beginning of the year. I… Read More

Legendary investor John Templeton had a simple explanation for the cycle of bull markets, saying they are “born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.” At 2,800-plus days and counting, the current bull market, which was born from the ashes of the 2008-2009 financial crises and has been the second-longest in history, seems to be exiting the skepticism stage and entering the optimism stage. Longtime subscribers of my premium investing service, Maximum Profit, know that I was very skeptical of how much longer the bull market would last at the beginning of the year. I cited slow economic growth, declining earnings in S&P 500 companies’ earnings, and the fact that my proprietary momentum-based investing system was finding very few companies that had the cash flow growth  needed to warrant a “buy” signal under my system’s rules. —Sponsored Link— New Gold Law To Impact 1.6 Billion People A new global law in effect this December could deliver an unexpected shock to the markets. No less than 32 major central banks are scrambling to prepare for the inevitable fallout. They’re shifting their money into one single asset that could explode in value,… Read More

The post-election rally stalled last week, following the prior week’s big advance. While most major U.S. indices closed relatively unchanged, the small-cap Russell 2000 was the exception. After hitting a high of 1,393 on Dec. 9, essentially meeting the 1,400 upside target I initiated in June, the index fell 1.7% last week. #-ad_banner-#Interestingly, all sectors of the S&P 500 finished last week in negative territory except for health care (+1.1%), utilities (+0.9%) and consumer staples (+0.02%), which are all defensive sectors. This was a complete reversal of the previous week’s broad-based rally. This internal weakness warns that a deeper decline… Read More

The post-election rally stalled last week, following the prior week’s big advance. While most major U.S. indices closed relatively unchanged, the small-cap Russell 2000 was the exception. After hitting a high of 1,393 on Dec. 9, essentially meeting the 1,400 upside target I initiated in June, the index fell 1.7% last week. #-ad_banner-#Interestingly, all sectors of the S&P 500 finished last week in negative territory except for health care (+1.1%), utilities (+0.9%) and consumer staples (+0.02%), which are all defensive sectors. This was a complete reversal of the previous week’s broad-based rally. This internal weakness warns that a deeper decline may be coming between now and early next year. Another Sign The Market Is Too Complacent In last week’s Market Outlook, I discussed the potential for an additional 3% rise in the Dow Jones Industrial Average to 20,400 before historically weak January/February seasonality kicks in. But I also pointed out that the market remains too complacent, according to the Volatility S&P 500 (VIX), for it to go much higher without a pullback first. This week’s first chart shows that put-to-call ratios are corroborating the extreme complacency in the VIX. The lower panel plots the 5-day moving average of the… Read More

For the past few weeks, I’ve been telling readers about the exciting opportunities that have recently opened up for regular, average investors to own a stake in some of the most innovative companies in the world before they issue shares on the major exchanges. And while an initial public offering (IPO) is the Holy Grail for early-stage investors, often fetching multiples of many times your investment and higher, acquisitions are by far the most common exit. In my years of experience of being involved in the pre-IPO world, investor exits by acquisition make up about two-thirds of exits. That makes… Read More

For the past few weeks, I’ve been telling readers about the exciting opportunities that have recently opened up for regular, average investors to own a stake in some of the most innovative companies in the world before they issue shares on the major exchanges. And while an initial public offering (IPO) is the Holy Grail for early-stage investors, often fetching multiples of many times your investment and higher, acquisitions are by far the most common exit. In my years of experience of being involved in the pre-IPO world, investor exits by acquisition make up about two-thirds of exits. That makes the ability to analyze what makes a good acquisition target critical to your success as an early-stage investor. This isn’t an aptitude you’re born with, but it’s a skill you can learn. It’s a technique I’ve picked up in almost ten years working with venture capital firms and angel investors to find the best new startups. —Recommended Link— 96% Of Americans Are Missing Out On This Few people realize it, but the IRS offers a program that can eliminate your taxes in retirement. This escape clause is open to anyone. All you have to do is file a one-page… Read More

In the first part of this article, I highlighted two main aspects of the investment research that — if used correctly — can maximize investors’ time when scouring for quality companies in which to invest. The first rule I outlined is the simple fact that an investor shouldn’t attempt to follow everything. The second is that you should keep company relationships — such as supplier-customer and competitor relationships — in mind when analyzing a stock. With these two established rules in hand, we are now ready to cast our net into the market to attempt to reel in possible investment… Read More

In the first part of this article, I highlighted two main aspects of the investment research that — if used correctly — can maximize investors’ time when scouring for quality companies in which to invest. The first rule I outlined is the simple fact that an investor shouldn’t attempt to follow everything. The second is that you should keep company relationships — such as supplier-customer and competitor relationships — in mind when analyzing a stock. With these two established rules in hand, we are now ready to cast our net into the market to attempt to reel in possible investment candidates that will fit nicely in our portfolios. Research Rule No. 3: Learn to Discriminate While we’re primarily looking for good fits, it’s just as important to know the companies we don’t want in our portfolios. In essence, the investor must learn to discriminate between companies that are “good,” “great” and “outstanding.” And inversely, we must identify the difference between “bad,” “terrible” and “horrific.” #-ad_banner-#Of course, there are more technical descriptions than the ones above that can be used to describe and categorize certain companies. But the point is, it’s important to have a process when deciding on the… Read More

Editor’s Note: Before you get to this week’s Market Outlook, there is a two-part investment strategy that has delivered extra payouts of $365, $520, $700 and even $1,000 to investors in addition to dividends and capital gains. The next payout could be worth as much as $500, and it’s available in the next 48 hours. Of course, there are a few restrictions, but it’s highly likely you qualify for this program. To see if you qualify for it, click here. After a one-week breather, the U.S. stock market resumed its post-election romp last week, with many… Read More

Editor’s Note: Before you get to this week’s Market Outlook, there is a two-part investment strategy that has delivered extra payouts of $365, $520, $700 and even $1,000 to investors in addition to dividends and capital gains. The next payout could be worth as much as $500, and it’s available in the next 48 hours. Of course, there are a few restrictions, but it’s highly likely you qualify for this program. To see if you qualify for it, click here. After a one-week breather, the U.S. stock market resumed its post-election romp last week, with many indices setting new all-time highs. The rally was led by the small-cap Russell 2000 (5.6%) and tech-heavy Nasdaq 100 (3.3%).   The advance was driven by expectations that a Trump presidency will be extremely favorable to U.S. businesses, with the loosening of government regulations and dismantling of Dodd-Frank being two expected changes. Last week’s rally was about as broad-based as they come. Every sector of the S&P 500 ended the week deep in positive territory, led by financials (4.9%), technology (4.2%) and real estate (3.8%).   Dow Industrials Closing In On 20,400 Target In last week’s Market Outlook, I… Read More

Many investors are familiar with Buffett’s famous holding of Coca-Cola (NYSE: KO). He began buying shares in 1988. At the time, Buffett said he expected to hang on to this “outstanding business” for “a long time.” And over the ensuing years, he continued to build his position in the iconic company. Today, Coca-Cola is one of Buffett’s largest holdings. As of February 19, Berkshire Hathaway owned 400 million shares of Coca-Cola, valued at roughly $17.2 billion. That’s nearly a fifth of the company’s equity portfolio. But what many investors don’t know is the story about when Buffett used options on… Read More

Many investors are familiar with Buffett’s famous holding of Coca-Cola (NYSE: KO). He began buying shares in 1988. At the time, Buffett said he expected to hang on to this “outstanding business” for “a long time.” And over the ensuing years, he continued to build his position in the iconic company. Today, Coca-Cola is one of Buffett’s largest holdings. As of February 19, Berkshire Hathaway owned 400 million shares of Coca-Cola, valued at roughly $17.2 billion. That’s nearly a fifth of the company’s equity portfolio. But what many investors don’t know is the story about when Buffett used options on Coca-Cola. —-Recommended Link-— The Single Best Group Of Stocks To Buy NOW 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. Learn which stocks can… That’s right. The king of buy-and-hold uses options. More importantly, it’s the way Buffett used options in the case of Coca-Cola — which happens to be a safe, conservative way — that too many investors… Read More

Everyone grew up hearing the story of the shepherd boy who frequently lied to the local townspeople about the threat of wolves on his flock. Time after time, the people rushed to his aid after hearing shouts that wolves were threatening his sheep. However, each time, the townspeople found the shepherd had lied about the presence of wolves. #-ad_banner-#Eventually, the townspeople become immune to the boy’s calls. When real wolves appeared and the boy cried for help, the people of the town assumed the cries were another hoax and ignored him. Later the townspeople realized the cries were real, but… Read More

Everyone grew up hearing the story of the shepherd boy who frequently lied to the local townspeople about the threat of wolves on his flock. Time after time, the people rushed to his aid after hearing shouts that wolves were threatening his sheep. However, each time, the townspeople found the shepherd had lied about the presence of wolves. #-ad_banner-#Eventually, the townspeople become immune to the boy’s calls. When real wolves appeared and the boy cried for help, the people of the town assumed the cries were another hoax and ignored him. Later the townspeople realized the cries were real, but it was too late. The wolves killed the sheep, and in one version of the story, the shepherd, too. Centuries later, we have a similar refrain… Aesop’s story of “The Boy Who Cried Wolf” reminds me of Michael Hartnett’s message from five years ago. Mr. Hartnett is the chief investment strategist for Bank of America Merrill Lynch who famously coined the term the “great rotation.” If you’re not familiar with the term, Mr. Hartnett believed that a great rotation out of bonds and into stocks was just beginning in 2011. He sounded the alarm. But it wasn’t true. Since then,… Read More

Repositioning. That’s the best word I’ve heard to describe what’s going on in the markets right now. The minute the 2016 election was called, investors on both sides immediately put their party affiliation aside and began trying to figure out what comes next. And the prevailing outlook can only be described as optimistic. The S&P 500 enjoyed a gain of 3.8% between November 7-11, while the blue-chip Dow Jones Industrial Average bounced 5.4% and the Russell 2000 Index surged 10%. That’s a decent year’s worth of gains in just five trading sessions. Overall, it was the strongest week for both… Read More

Repositioning. That’s the best word I’ve heard to describe what’s going on in the markets right now. The minute the 2016 election was called, investors on both sides immediately put their party affiliation aside and began trying to figure out what comes next. And the prevailing outlook can only be described as optimistic. The S&P 500 enjoyed a gain of 3.8% between November 7-11, while the blue-chip Dow Jones Industrial Average bounced 5.4% and the Russell 2000 Index surged 10%. That’s a decent year’s worth of gains in just five trading sessions. Overall, it was the strongest week for both small-cap stocks and giant blue-chip stocks since December 2011. And the rally continues. It’s almost forgotten now, but the market suffered a 9-day losing streak leading up to the election. Oh, how quickly investor sentiment changes. But to gain real insight into how the market views a Trump presidency, you have to examine performance on a more granular level. With that in mind, I want to spend some time today pinpointing the areas of the market that will most likely be affected. —Recommended Link— The Top ‘Crash Protection’ Stock To Buy Now? We’ve identified the top “Crash-Protection” stock to… Read More

Editor’s Note: In the past year, one expert has used market pullbacks similar to the one John is predicting to capture huge returns in a matter of days. These include 62.4% in nine days, 33.8% in four days and 18.5% in a single day. As you read John’s report, consider how this strategy could help you get positioned for the next market sell-off. Stocks took a breather this past week following three consecutive weekly gains in the major indices. The decline was led by the tech-heavy Nasdaq 100 (-2.7%) and small-cap Russell 200 (-2.4%), which were both leaders… Read More

Editor’s Note: In the past year, one expert has used market pullbacks similar to the one John is predicting to capture huge returns in a matter of days. These include 62.4% in nine days, 33.8% in four days and 18.5% in a single day. As you read John’s report, consider how this strategy could help you get positioned for the next market sell-off. Stocks took a breather this past week following three consecutive weekly gains in the major indices. The decline was led by the tech-heavy Nasdaq 100 (-2.7%) and small-cap Russell 200 (-2.4%), which were both leaders on the way up. #-ad_banner-#One catalyst for last week’s decline was yet another failed attempt by the Nasdaq 100 to remain above its March 2000 tech-bubble high, which it has been negotiating since August. I’ll talk about this in more detail later in the report. From a sector standpoint, all sectors of the S&P 500 ended in negative territory for the week except financials, energy, materials and industrials. Much, if not all of this, was related to the recent spike in long-term interest rates, which has boosted financial stocks while driving investors into hard assets as a hedge against what… Read More