You’ve undoubtedly heard of the robber barons. These affluent industrialists were considered some of the wealthiest — and most successful — businessmen of the 18th and 19th centuries. (The term originally appeared in the August 1870 issue of The Atlantic Monthly magazine.) The most famous robber barons have even become standard icons in American culture. The stories of wealth amassed by tycoons like J.P. Morgan, John D. Rockefeller and Andrew Carnegie are recounted in public school history classes throughout the United States each year. I’ll show you how you can get started in modern day Rockefeller investing… #-ad_banner-#Unfortunately, to most… Read More

You’ve undoubtedly heard of the robber barons. These affluent industrialists were considered some of the wealthiest — and most successful — businessmen of the 18th and 19th centuries. (The term originally appeared in the August 1870 issue of The Atlantic Monthly magazine.) The most famous robber barons have even become standard icons in American culture. The stories of wealth amassed by tycoons like J.P. Morgan, John D. Rockefeller and Andrew Carnegie are recounted in public school history classes throughout the United States each year. I’ll show you how you can get started in modern day Rockefeller investing… #-ad_banner-#Unfortunately, to most people the word robber baron is not a term of endearment. It’s generally used to contextualize a greedy Wall Street “fat cat” with an insatiable thirst for money — the kind of caricature you would expect a political cartoonist to feature in Sunday’s edition of The Washington Post. But that’s not how I look at them. When I picture the robber barons, I see some of the best investors the world has ever known. Rockefeller, for example, was said to have accumulated an inflation-adjusted net worth of $360 billion by the time he died in 1937. To put that in… Read More

I’m going to show you a simple strategy that has never lost money in the market. A recent study by mega-investment firm Oppenheimer proved just as much. Don’t worry, it’s not some “too good to be true” story. But there are some caveats. First, I could tell 100 people about this strategy… and I’d guess 99 of them would flat ignore it. That’s despite the evidence I’ll show you backing it up. “That strategy is for suckers.” “Its time has passed.” “You have to be an idiot to think that would work today.” I know some people will say this… Read More

I’m going to show you a simple strategy that has never lost money in the market. A recent study by mega-investment firm Oppenheimer proved just as much. Don’t worry, it’s not some “too good to be true” story. But there are some caveats. First, I could tell 100 people about this strategy… and I’d guess 99 of them would flat ignore it. That’s despite the evidence I’ll show you backing it up. “That strategy is for suckers.” “Its time has passed.” “You have to be an idiot to think that would work today.” I know some people will say this — because they already have. We asked some of our regular readers to give us their thoughts on this strategy. And those were the type of responses I heard from some people. I was shocked. #-ad_banner-#Second, you can’t use this strategy for every stock. Use it on the wrong ideas, and you can still lose money. But across the market as a whole, it hasn’t failed once in the past 60 years. The truth is, you don’t have to trade every day… or every week… or even every year to beat the market. In fact, your success actually increases with… Read More

Insiders in the natural resource business often talk about “shopping season” this time of year. But they’re not referring to Christmas presents. As I’ve discussed before, this is the time of year when many natural resource investments can be had at bargain prices. This is particularly true for the smaller firms that my premium natural resource newsletter, Scarcity & Real Wealth, was created to focus on — the kind of companies that offer potential for double or even triple-digit gains through the discovery of major mineral or petroleum deposits. #-ad_banner-#This month’s buying… Read More

Insiders in the natural resource business often talk about “shopping season” this time of year. But they’re not referring to Christmas presents. As I’ve discussed before, this is the time of year when many natural resource investments can be had at bargain prices. This is particularly true for the smaller firms that my premium natural resource newsletter, Scarcity & Real Wealth, was created to focus on — the kind of companies that offer potential for double or even triple-digit gains through the discovery of major mineral or petroleum deposits. #-ad_banner-#This month’s buying opportunity is upon us — ironically — because 2014 has been a difficult year for many resource companies. With commodities prices falling, a large number of firms have seen their share prices decline. Sentiment has in fact turned down to such a degree that many of these firms are selling for cash flow multiples lower than we’ve seen in decades. I’ve been purchasing a number of these companies for my portfolio over the past few months. The thing is, today we’re seeing even better prices on these already-cheap companies. That’s because many… Read More

All major U.S. stock indices finished in positive territory last week, led by the tech-heavy Nasdaq 100, which gained 2% and is up 20.8% so far in 2014. With small-cap stocks lagging all year, the broader market continues to rely heavily on technology to drag it higher. From a sector standpoint, last week’s advance was led by consumer discretionary and technology, which gained 2.5% and 2%, respectively. The energy sector collapsed 9.8% on fears of global oversupply in crude oil after Saudi Arabia blocked calls for output cuts from poorer OPEC members. #-ad_banner-#Globally, the recent recovery in European equity prices,… Read More

All major U.S. stock indices finished in positive territory last week, led by the tech-heavy Nasdaq 100, which gained 2% and is up 20.8% so far in 2014. With small-cap stocks lagging all year, the broader market continues to rely heavily on technology to drag it higher. From a sector standpoint, last week’s advance was led by consumer discretionary and technology, which gained 2.5% and 2%, respectively. The energy sector collapsed 9.8% on fears of global oversupply in crude oil after Saudi Arabia blocked calls for output cuts from poorer OPEC members. #-ad_banner-#Globally, the recent recovery in European equity prices, particularly in Germany, points to more strength in the U.S. stock market into early next year. Failed Pattern Bodes Well for U.S. Market In mid-October, I pointed out a bearish chart pattern in the German DAX Index that targeted an 11% decline to 7,800. This particular chart pattern, a head-and-shoulders, is a common and typically reliable indication of a major bearish change in the price trend of an asset. However, on the rare occasion this pattern fails, it shows that investors have had a sudden and strong collective change of opinion on market direction. The chart… Read More

There was a period of time over the last couple of months where a form of corporate engineering dominated headlines. Apple was one of the most high-profile examples of companies taking advantage of this practice. But a number of other lesser-known firms were doing the same, either by relocating their operations abroad or acquiring an internationally-based competitor. I’m talking about tax inversions. #-ad_banner-#This practice has caused some controversy because it has allowed the companies to lower their taxable earnings in the U.S. and shift them abroad to countries with lower tax rates. Needless to say, the U.S. Government was not… Read More

There was a period of time over the last couple of months where a form of corporate engineering dominated headlines. Apple was one of the most high-profile examples of companies taking advantage of this practice. But a number of other lesser-known firms were doing the same, either by relocating their operations abroad or acquiring an internationally-based competitor. I’m talking about tax inversions. #-ad_banner-#This practice has caused some controversy because it has allowed the companies to lower their taxable earnings in the U.S. and shift them abroad to countries with lower tax rates. Needless to say, the U.S. Government was not happy — it wanted its tax dollars. But just over a month ago the U.S. Department of Treasury updated five sections of the tax code to make inversions more difficult to execute, and less profitable. The news from the Treasury tossed a wet blanket on the boom in tax inversions. The headlines began to wane and it seemed as if tax inversions were dead and gone. So last month as I was preparing the next issue of my premium newsletter, High-Yield International, I was surprised when I came across news of a small acquisition, where another company was planning to… Read More

All major U.S. stock indices finished in positive territory last week except for the small-cap Russell 2000, which lost 0.1% and is up just 0.8% this year. On the other end of the spectrum, the tech heavy Nasdaq 100 — which has powered the 2014 broad market advance — gained 0.6% and is up 18.4% year to date. From a sector standpoint, previously downtrodden energy and materials led, which suggests that cyclical sectors may be making a comeback. If this is indeed the case, it bodes well for a strengthening global economy as we head into 2015. #-ad_banner-#Also significant is… Read More

All major U.S. stock indices finished in positive territory last week except for the small-cap Russell 2000, which lost 0.1% and is up just 0.8% this year. On the other end of the spectrum, the tech heavy Nasdaq 100 — which has powered the 2014 broad market advance — gained 0.6% and is up 18.4% year to date. From a sector standpoint, previously downtrodden energy and materials led, which suggests that cyclical sectors may be making a comeback. If this is indeed the case, it bodes well for a strengthening global economy as we head into 2015. #-ad_banner-#Also significant is the recent recovery in European equity prices, which had previously been a drag on U.S. performance, as I discussed in the Oct. 13 Market Outlook. As long as European stocks remain strong, which my analysis suggests is likely at least in the near term, it will help support further strength here in the States. Technology Continues to Lead Market Higher In last week’s Market Outlook, I said Cisco Systems’ (NASDAQ: CSCO) mid-November breakout targeted a run to $32 in the stock and also signaled more strength to come in the market. CSCO… Read More

Some call Prem Watsa the Warren Buffett of Canada. He is the CEO of Fairfax Financial (OTC: FRFHF), an insurance holding company modeled in much the same way as Berkshire Hathaway. And over the last 30 years, he compounded the book value of this business by more than 21%. Not only does he have a remarkable track record, but as early as 2004 he accurately predicted, and was warning of, the impending doom facing the housing market. #-ad_banner-#Recently, he began warning of a new danger to the markets: deflation. The United States… Read More

Some call Prem Watsa the Warren Buffett of Canada. He is the CEO of Fairfax Financial (OTC: FRFHF), an insurance holding company modeled in much the same way as Berkshire Hathaway. And over the last 30 years, he compounded the book value of this business by more than 21%. Not only does he have a remarkable track record, but as early as 2004 he accurately predicted, and was warning of, the impending doom facing the housing market. #-ad_banner-#Recently, he began warning of a new danger to the markets: deflation. The United States is six years into an incredible bull market: the S&P 500 has nearly tripled from its March 2009 bottom, and the markets continue reaching new highs every month. On the surface everything looks rosy. Underneath, though, Watsa warns of serious trouble brewing. In Fairfax’s most recent investor conference call, Watsa referred to the fact that current levels of inflation are now at 60-year lows. That by itself is somewhat alarming, but remember that those low levels were reached despite the fact that the United States and almost the entire world has been engaged in easy-money policies on an unprecedented level. Read More

It finally ended… The Federal Reserve recently announced that it would end its third (and possibly final) round of quantitative easing (QE). #-ad_banner-#This brings to close the $1.7 trillion that was pumped into the economy in this round alone. October marked the last month of the $15 billion in monthly bond purchases — down from $85 billion when QE3 started in 2012 — and ends the nearly six-year bond purchasing program. You can see what the program has done to the balance sheet of the Federal Reserve: The central bank’s bond purchasing program has sent the… Read More

It finally ended… The Federal Reserve recently announced that it would end its third (and possibly final) round of quantitative easing (QE). #-ad_banner-#This brings to close the $1.7 trillion that was pumped into the economy in this round alone. October marked the last month of the $15 billion in monthly bond purchases — down from $85 billion when QE3 started in 2012 — and ends the nearly six-year bond purchasing program. You can see what the program has done to the balance sheet of the Federal Reserve: The central bank’s bond purchasing program has sent the stock market soaring… and hopefully you’ve been able to capitalize on this tremendous bull market. To put the recent bull market in perspective, we only need to look at the returns from what is considered the “lost decade” and compare that time frame when the Fed turned on the printing presses. The term “lost decade” stemmed from the sluggish performance of the Japanese economy after its real estate bubble burst in the 1980s and has also been used to describe the state of the U.S. economy from 2000 to 2009. Our analysts have surely enjoyed this latest bull… Read More

The wave of Republican victories in mid-term elections blew past everyone’s expectations and sparked a rally in the markets. Investors are hoping for a range of business-friendly changes in Washington from a less intrusive energy policy to a partial repeal of some Obamacare regulations. The market may be disappointed next year as Republicans find many areas on their wish list off limits against a Presidential veto. The President looks to be crafting his legacy on environmental and healthcare issues and will not give up easily. #-ad_banner-#There is one area where the President and Congress may find balance, and it could mean… Read More

The wave of Republican victories in mid-term elections blew past everyone’s expectations and sparked a rally in the markets. Investors are hoping for a range of business-friendly changes in Washington from a less intrusive energy policy to a partial repeal of some Obamacare regulations. The market may be disappointed next year as Republicans find many areas on their wish list off limits against a Presidential veto. The President looks to be crafting his legacy on environmental and healthcare issues and will not give up easily. #-ad_banner-#There is one area where the President and Congress may find balance, and it could mean big savings for companies and even bigger profits for investors. Both the President and the Republicans in Congress have talked up the need for tax reform. The President has pointed out the many tax breaks incorporated in the tax code, while Republicans point out high statutory rates. If the two sides can come together for a bipartisan deal, then it could mean hundreds of billions in tax savings for companies and a wave of special dividends for investors. That’s because any reform will likely include some form of a repatriation holiday, allowing companies to bring back overseas profits without paying… Read More

All major U.S. stock indices finished in positive territory for the third consecutive week, but just barely, led by the broad market S&P 500, which gained just 0.7%. All are also in the black for 2014, led by the technology-heavy Nasdaq 100, but the small-cap Russell 2000 has trailed the pack all year and is currently up just 0.8%. #-ad_banner-#The defensive consumer staples and utilities sectors led last week, which is uncharacteristic of a healthy and sustainable broad market advance. Moreover, my own ETF-based metric shows that the biggest inflow of sector bet-related investor assets over the past one-week, one-month… Read More

All major U.S. stock indices finished in positive territory for the third consecutive week, but just barely, led by the broad market S&P 500, which gained just 0.7%. All are also in the black for 2014, led by the technology-heavy Nasdaq 100, but the small-cap Russell 2000 has trailed the pack all year and is currently up just 0.8%. #-ad_banner-#The defensive consumer staples and utilities sectors led last week, which is uncharacteristic of a healthy and sustainable broad market advance. Moreover, my own ETF-based metric shows that the biggest inflow of sector bet-related investor assets over the past one-week, one-month and three-month periods were into consumer staples. This establishes favorable conditions for its trend of relative outperformance versus the S&P 500, which began in August, to potentially extend through year end. The longer defensive sectors lead the market higher, the more likely the current advance will be short lived. However, for the time being, things look good as all major indices except for the Russell 2000 set fresh 2014 highs last week. Nasdaq 100 Hits 14-Year High Since the Aug. 25 Market Outlook, I have pointed to important overhead resistance at 4,147 as a major obstacle… Read More