It’s been five years since the Financial Times first made use of one of the less flattering economic acronyms: PIIGS. Back then, Portugal, Ireland, Italy, Greece and Spain were seen as economic basket cases, and it was widely assumed that one or several of them would eventually default on their massive debt burdens. While such an event has yet to pass, Greece remains quite sickly, and Portugal and Italy continue to wrestle with profound economic dislocation. To varying degrees, these countries have failed to embrace the badly-needed economic reforms that are essential to sow the seeds of a lasting economic… Read More

It’s been five years since the Financial Times first made use of one of the less flattering economic acronyms: PIIGS. Back then, Portugal, Ireland, Italy, Greece and Spain were seen as economic basket cases, and it was widely assumed that one or several of them would eventually default on their massive debt burdens. While such an event has yet to pass, Greece remains quite sickly, and Portugal and Italy continue to wrestle with profound economic dislocation. To varying degrees, these countries have failed to embrace the badly-needed economic reforms that are essential to sow the seeds of a lasting economic recovery. Yet despite heavy odds, Ireland and Spain are clearly on the comeback trail. Thanks to broad-based reform packages, their economies have begun to turn the corner. And with the aid of a very competitive currency, their futures are looking far brighter than most would have suspected just a few years ago. For investors, exposure to these dynamic turnaround stories can be had through a pair of country-specific exchange-traded funds (ETFs). Ireland Is Back In Business Ireland and its citizens are remarkably resilient. They have been through myriad crises over the past two centuries, and always manage to bounce… Read More

In 2014, Forbes ranked Sergey Brin as the 18th-richest person in the world. The Google co-founder is worth an estimated $29.7 billion. In 1979, Brin’s family left the Soviet Union because of religious persecution and immigrated to the United States. Soon, he would attend Stanford University, meet Larry Page, begin working on search engine algorithms… and the rest is history. Today, in the dawn of the 21st century, it’s worth asking: will the United States be the destination for the next Sergey Brin?  #-ad_banner-#This is important. Politically stable countries have a history of attracting the best talent and the most… Read More

In 2014, Forbes ranked Sergey Brin as the 18th-richest person in the world. The Google co-founder is worth an estimated $29.7 billion. In 1979, Brin’s family left the Soviet Union because of religious persecution and immigrated to the United States. Soon, he would attend Stanford University, meet Larry Page, begin working on search engine algorithms… and the rest is history. Today, in the dawn of the 21st century, it’s worth asking: will the United States be the destination for the next Sergey Brin?  #-ad_banner-#This is important. Politically stable countries have a history of attracting the best talent and the most capital. It’s the difference between countries that lead the pack — and those that are seemingly always struggling to keep up. And for investors, politically stable countries have a demonstrated history of beating the market. The Fund for Peace is a federally-funded research institution dedicated to assessing global political risk. In 2005, it began publishing “The Fragile State Index.” The index uses 12 social, political and economic factors to rank 178 countries based on political stability. According to its 2014 update, Austria, Australia, the United Kingdom, Canada and Ireland are just a few of the countries that rank ahead of… Read More

Growing up in the 1970’s, I thought America was doomed. Inflation was on a path into double-digit territory, and unemployment rates remained stubbornly high. Economists even coined a term for our malaise, adding the unemployment and inflation rates together in a combined “misery index.”  By 1980, this figure briefly exceeded 20%. Misery Index Highs In The United States   Unemployment Rate + Inflation Rate = Misery Index May 1959 5.1% 0.3% 5.4% November 1965 4.1% 1.6% 5.7% June 1980 7.6% 14.4% 22.0% April 1998 4.3% 1.4% 5.7% October 2006 4.4% 1.3% 5.7%… Read More

Growing up in the 1970’s, I thought America was doomed. Inflation was on a path into double-digit territory, and unemployment rates remained stubbornly high. Economists even coined a term for our malaise, adding the unemployment and inflation rates together in a combined “misery index.”  By 1980, this figure briefly exceeded 20%. Misery Index Highs In The United States   Unemployment Rate + Inflation Rate = Misery Index May 1959 5.1% 0.3% 5.4% November 1965 4.1% 1.6% 5.7% June 1980 7.6% 14.4% 22.0% April 1998 4.3% 1.4% 5.7% October 2006 4.4% 1.3% 5.7% January 2015 5.7% -0.1% 5.6% Source: LPL Research, Haver Analytics   Although it may seem counter-intuitive, 1980 would have been a brilliant time to become bullish. Indeed the major stock market indices have risen so much in the past 35 years precisely because the misery index has fallen from its lofty heights. The reasoning is quite simple. Falling inflation helps boost the earnings multiple applied to stocks, because corporations generate higher profits when they operate in an environment of fuller employment. And higher multiples on higher profits always translates into market gains. #-ad_banner-# Misery Can Help Change The Status Quo… Read More

There is a growing fear among investors, both at home and abroad, that a long-overdue market correction is round the corner. The current bull market is approximately 76 months old, far longer than the historical average duration of 48 months. The Greek debt crisis has created uncertainty for the future of the European Union, at times causing ripples through the global markets. And over the last month, the Chinese markets have been reeling after nearly $4 trillion of value was lost. All the while, the U.S. Federal Reserve is still toying with the idea of raising interest rates sometime this… Read More

There is a growing fear among investors, both at home and abroad, that a long-overdue market correction is round the corner. The current bull market is approximately 76 months old, far longer than the historical average duration of 48 months. The Greek debt crisis has created uncertainty for the future of the European Union, at times causing ripples through the global markets. And over the last month, the Chinese markets have been reeling after nearly $4 trillion of value was lost. All the while, the U.S. Federal Reserve is still toying with the idea of raising interest rates sometime this year. The result: an uneasy feeling about the market’s near-term future. In uncertain times like today, investors should focus on high-quality stocks that have historically shown resilience no matter the market conditions. That being said, it is also time for investors to take a long-term view of their investments and keep in mind that a correction is a buying opportunity, not a time to panic. First, let’s examine how macro trends could affect the investment playing field and what this means for investment opportunities. Currency Tailwinds If and when the economy shows signs of sustained strength, the Fed will… Read More

WARNING: A Major Correction Could Begin This Week A trading prodigy is predicting the biggest stock market correction since 2008.  In short, an important market event will take place on Wednesday that could trigger a freefall in stocks.  He’s been tracking this situation for months. I urge you to take a few seconds to listen to what he has to say. If he’s right, the information he’s going to share could help you save your portfolio and even make money in the coming correction. Click here to find out how to prepare yourself… Read More

WARNING: A Major Correction Could Begin This Week A trading prodigy is predicting the biggest stock market correction since 2008.  In short, an important market event will take place on Wednesday that could trigger a freefall in stocks.  He’s been tracking this situation for months. I urge you to take a few seconds to listen to what he has to say. If he’s right, the information he’s going to share could help you save your portfolio and even make money in the coming correction. Click here to find out how to prepare yourself now.  Sincerely,  Frank Bermea Publisher, Profitable Trading  For many of the world’s migrants, the United States is the ideal destination. Since its founding, the country has been dubbed “The Land of Opportunity.” Thousands flocked to the continent to settle the West, avoid famine and oppression or merely chase “The American Dream.” This openness has led to one of the wealthiest, most successful (and diverse) civilizations in history. But while people the world over try to move here, lately U.S. companies have… Read More

I still get goose bumps when I recall the first time I saw them live. The year was 1987. I was 10 years old, and a buddy of mine — whose father had season tickets to the Chicago Bulls — asked me if I wanted to go to a game. “Heck yeah!” I replied. #-ad_banner-#The fans… the atmosphere… the scale and intensity of Chicago Stadium blew me away. But now, looking back 28 years later, I realize it was one of my first lessons in investing. And if… Read More

I still get goose bumps when I recall the first time I saw them live. The year was 1987. I was 10 years old, and a buddy of mine — whose father had season tickets to the Chicago Bulls — asked me if I wanted to go to a game. “Heck yeah!” I replied. #-ad_banner-#The fans… the atmosphere… the scale and intensity of Chicago Stadium blew me away. But now, looking back 28 years later, I realize it was one of my first lessons in investing. And if you’ve ever been to a professional sporting event, then you too have witnessed the secret behind some of the most consistently profitable businesses in the world. It’s the reason some investments can shower you with wealth for the long haul, while knockoff competitors come and go. It’s a simple secret, but if you understand it you’ll know how to find the best values in any industry. Professional sports teams are what I like to call “irreplaceable assets.” You can’t simply come along and create it from scratch. A cheap knockoff can’t be developed in… Read More

#-ad_banner-#With certain types of investments, you just know you’re in for a wild ride. But there’s no sense in assuming extra risk without a reasonable chance of a proportional reward. This is why I encourage investors to think twice about getting involved with Russian stocks. As anyone who follows emerging markets knows, Russian equities are exceptionally dangerous. Typically more than twice as volatile as U.S. stocks, they often vacillate between massive gains and dismal losses. However, investors willing to endure the extreme volatility haven’t gotten nearly enough in return. While they have done well lately, long-term investors have been pummeled. Read More

#-ad_banner-#With certain types of investments, you just know you’re in for a wild ride. But there’s no sense in assuming extra risk without a reasonable chance of a proportional reward. This is why I encourage investors to think twice about getting involved with Russian stocks. As anyone who follows emerging markets knows, Russian equities are exceptionally dangerous. Typically more than twice as volatile as U.S. stocks, they often vacillate between massive gains and dismal losses. However, investors willing to endure the extreme volatility haven’t gotten nearly enough in return. While they have done well lately, long-term investors have been pummeled. The largest exchange-traded fund to track Russian stocks, Market Vectors Russia ETF (NYSE: RSX), has gained nearly 25% year to date, but RSX has lost nearly half its value since inception in April 2007. And the problem isn’t fund-specific. Templeton Russia & Eastern Europe (NYSE: TRF), a closed-end mutual fund that focuses on Russia, plunged by more than 60% during the same eight-year period. Such data might trigger a Pavlovian response in contrarians, who often view deep pullbacks as buying opportunities. And with a forward price-to-earnings (P/E) ratio of around five, the Russian market… Read More

If you’re a regular StreetAuthority reader, then you may now consider yourself an income expert. Just this past few months, we’ve show you why dividends are the key to wealth (here), that international stocks offer the best yields on the market (here) and given you copious examples of dividend-payers worth owning (here, here and here). But today I’m going to tell you all about a class of stocks that combines the very best qualities of top dividend stocks: High-yielding international companies that you can buy today, forget about tomorrow and own… Read More

If you’re a regular StreetAuthority reader, then you may now consider yourself an income expert. Just this past few months, we’ve show you why dividends are the key to wealth (here), that international stocks offer the best yields on the market (here) and given you copious examples of dividend-payers worth owning (here, here and here). But today I’m going to tell you all about a class of stocks that combines the very best qualities of top dividend stocks: High-yielding international companies that you can buy today, forget about tomorrow and own for the rest of your life. I think you’ll love them. You see, if you’re after high yields, there’s no better place to look than foreign stocks. Because in fact, more than 79% of the world’s highest-yielding stocks are based in international markets. #-ad_banner-#The average stock in the United Kingdom yields 3.9%. Australia’s average yield is 4.7%. And New Zealand pays 4.7%. By contrast, the average U.S. stock yields about 2%. But my research team and I dug through these stocks looking for something more. Read More

As cross-border trade expands, U.S.-based healthcare providers are increasingly finding customers around the globe. Source: Abbott Labs 2014 Annual Report In the United States, healthcare spending is a whopping 18% of GDP. On the other hand, in emerging economies healthcare makes up only 6% of GDP. A growing middle class in developing nations means that number is rising. Companies focusing overseas are going to grow faster than U.S.-focused counterparts. Here are three companies following the growth around the world: Abbott Laboratories (NYSE: ABT) Abbott is a global provider of branded pharmaceuticals and other healthcare… Read More

As cross-border trade expands, U.S.-based healthcare providers are increasingly finding customers around the globe. Source: Abbott Labs 2014 Annual Report In the United States, healthcare spending is a whopping 18% of GDP. On the other hand, in emerging economies healthcare makes up only 6% of GDP. A growing middle class in developing nations means that number is rising. Companies focusing overseas are going to grow faster than U.S.-focused counterparts. Here are three companies following the growth around the world: Abbott Laboratories (NYSE: ABT) Abbott is a global provider of branded pharmaceuticals and other healthcare products. It operates in more than 100 countries and generates close to 70% of its revenue outside the United States. Asia represents Abbott’s fastest-growing region. #-ad_banner-#The Asia-Pacific region’s healthcare spending is expected to grow at a rate of 7.1 percent from 2013 to 2017, according to The Economist. China is one of the firm’s major markets, where Abbott Labs is excelling  despite a complex regulatory environment. The firm has grown sales in the country 24% per year since 2012, and China is now the company’s second-largest market behind the United States. Its third-largest market is India. Sales in the country… Read More

When it comes to stock markets, China’s sure marches to the beat of its own drum.  The Shanghai Composite gained 145% in the past year, compared to about 7% for the S&P 500. Now, though, things may be unraveling in China — and given what happened there just a few years ago, it is not likely to be pretty. In the chart below, we can see the recent nearly vertical rise in the Chinese market after a slow, multiyear drift lower.  The same thing happened at the start of this century. It was as if sellers… Read More

When it comes to stock markets, China’s sure marches to the beat of its own drum.  The Shanghai Composite gained 145% in the past year, compared to about 7% for the S&P 500. Now, though, things may be unraveling in China — and given what happened there just a few years ago, it is not likely to be pretty. In the chart below, we can see the recent nearly vertical rise in the Chinese market after a slow, multiyear drift lower.  The same thing happened at the start of this century. It was as if sellers just gave up and buyers pushed valuations to impossible levels. Chinese stocks peaked in 2007 and then fell off a cliff when the magic of the Chinese economy faded, taking commodity markets down with them.  Experience shows that when a market trend continually accelerates, affectionately called “going parabolic,” the gain is often mirrored by the decline on the other side. Most of the time, the accelerated rally is erased completely.  If that happens again now, the resulting decline could be on the order of 55% to 60% from current levels — devastating by any definition.  Domestic investors cannot easily short… Read More