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

It’s the number one question asked by first-time investors… Where do I start? It may seem simple, but unless you’re the one actually having to think strategically about your goals, doing the research and then deploying cash into a portfolio, it’s easy to forget just how paralyzing this situation can be. There are many reasons this paralysis sets in. With literally thousands of mutual funds, ETFs, bonds, stocks, and other financial products to choose from, it could simply be the tyranny of too many choices, as it were. It could also be that the memories of losses experienced during the… Read More

It’s the number one question asked by first-time investors… Where do I start? It may seem simple, but unless you’re the one actually having to think strategically about your goals, doing the research and then deploying cash into a portfolio, it’s easy to forget just how paralyzing this situation can be. There are many reasons this paralysis sets in. With literally thousands of mutual funds, ETFs, bonds, stocks, and other financial products to choose from, it could simply be the tyranny of too many choices, as it were. It could also be that the memories of losses experienced during the most recent financial crisis are still too raw. And now, especially with major market averages near all-time highs, it can be even more difficult to know what to do. #-ad_banner-#Whatever the reason, simply not knowing where to start is the single biggest problem investors face. It’s also the one I’m personally asked about most often — and one I was personally confronted with just recently yet again. My grandmother had asked me to help her invest a small sum of money for her. It’s certainly not a fortune — but it’s no small sum either, at least not to her… Read More

Last week, I wrote about Buffett’s bet with the hedge fund industry (for more on that, go here). I also advised readers to check out Buffett’s letter to Berkshire Hathaway shareholders, which was released last weekend. I hope you took the time to follow my advice. Despite amassing a $76 billion fortune, Buffett remains as folksy and accessible as ever. He’s not perfect — but then again, he’s also rarely wrong. #-ad_banner-#A few years ago, the Wall Street Journal reported that Buffett made an absolutely stunning $10 billion on investments he made at the height of… Read More

Last week, I wrote about Buffett’s bet with the hedge fund industry (for more on that, go here). I also advised readers to check out Buffett’s letter to Berkshire Hathaway shareholders, which was released last weekend. I hope you took the time to follow my advice. Despite amassing a $76 billion fortune, Buffett remains as folksy and accessible as ever. He’s not perfect — but then again, he’s also rarely wrong. #-ad_banner-#A few years ago, the Wall Street Journal reported that Buffett made an absolutely stunning $10 billion on investments he made at the height of the financial crisis. True to form, Buffett sheepishly commented that any average investor could have done just as well. In fact, more recently, he has stated that it should be possible for any individual investor to beat his performance at Berkshire Hathaway going forward. Does this mean Buffett has lost a step? Hardly. It’s simply a matter of the law of large numbers coming into effect. To earn that $10 billion, Buffett had to invest $26 billion. That put his return at about 38%, or 6.7% a year over five years. Now let’s put that into context. Buffett made his… Read More

In 1980, economist Julian Simon had had enough. For the past decade-plus, he had watched Stanford biologist Paul Ehrlich make all sorts of grim predictions about the human race. For example, in 1968, Ehrlich predicted that 20% of the world’s population would starve to death by 1985. Later, he predicted that England would not exist as a country by the year 2000. This kind of thinking has its roots in the theories of Thomas Malthus. (Not that you asked, but I think Malthusianism has had far too much influence in both academia and the larger public for far too long. Read More

In 1980, economist Julian Simon had had enough. For the past decade-plus, he had watched Stanford biologist Paul Ehrlich make all sorts of grim predictions about the human race. For example, in 1968, Ehrlich predicted that 20% of the world’s population would starve to death by 1985. Later, he predicted that England would not exist as a country by the year 2000. This kind of thinking has its roots in the theories of Thomas Malthus. (Not that you asked, but I think Malthusianism has had far too much influence in both academia and the larger public for far too long. It’s one of those theories that has a nasty habit of influencing some of history’s absolute worst ideas.) #-ad_banner-#Despite all of the hand-wringing and pearl-clutching, nothing seemed to ever come of these prognostications. So Simon thought it was time to make a little wager with Ehrlich… If the predicted world population explosion transpired, leading to the vast depletion of natural resources, then the prices of commodities would naturally skyrocket. So Simon challenged Ehrlich to buy $1,000 in any mix of commodities he chose. Then, after a 10-year period, if prices were higher, Simon would pay the difference. If prices were… Read More

While headlines of the new presidential administration’s various actions have dominated the news since the start of the year, the stock market has quietly been on a tear. According to Bespoke Investment Group, 36 stocks in the S&P 500 reached all-time highs last Monday. Another 24 new highs followed on Tuesday. Wednesday saw 40. Here is a full list of S&P 500 companies that have set new all-time highs as of last week, courtesy of Bespoke: Hopefully, you’ve personally benefitted from this. The question is: How long can this last? —Sponsored Link— Turn $500… Read More

While headlines of the new presidential administration’s various actions have dominated the news since the start of the year, the stock market has quietly been on a tear. According to Bespoke Investment Group, 36 stocks in the S&P 500 reached all-time highs last Monday. Another 24 new highs followed on Tuesday. Wednesday saw 40. Here is a full list of S&P 500 companies that have set new all-time highs as of last week, courtesy of Bespoke: Hopefully, you’ve personally benefitted from this. The question is: How long can this last? —Sponsored Link— Turn $500 Into $650,000 Without Risking A Single Dollar In The Market The Wall Street Journal reports that this innovation “blows open the doors to investing.” Forbes says that “this changes everything.” And if you click here now, we’ll share the details behind this investing breakthrough. If this article from the Wall Street Journal is to be believed, one disconcerting sign about the economy could come from the National Federation of Independent Business. Last month, its survey of small business optimism reached its highest level in 12 years. At a reading of 105.9,… Read More

Last week, I told you that my colleague Joseph Hogue had just put the finishing touches on his new book about investing in innovative startup companies before they go public. Joseph is one of the foremost experts in what’s known as “pre-IPO investing” through the relatively new form of online crowdfunding. I also explained how we are extending a special offer to StreetAuthority readers who want to get their hands on Joseph’s new book. (To read that article, go here.) For newcomers, I won’t be spending much time going over the basics of how this works today. Frankly, we’ve covered… Read More

Last week, I told you that my colleague Joseph Hogue had just put the finishing touches on his new book about investing in innovative startup companies before they go public. Joseph is one of the foremost experts in what’s known as “pre-IPO investing” through the relatively new form of online crowdfunding. I also explained how we are extending a special offer to StreetAuthority readers who want to get their hands on Joseph’s new book. (To read that article, go here.) For newcomers, I won’t be spending much time going over the basics of how this works today. Frankly, we’ve covered this topic extensively and I don’t want to get too much into the weeds. Suffice it to say, as we’ve pointed out many, many times before, we think pre-IPO crowdfunding represents one of the absolute best chances to make the kinds of life-changing returns every regular investor has always dreamed about. —Sponsored Link— Did Elon Musk Just Lock In FAST 985% Gains For HZNM? Tesla Motors needs as much lithium as they can get to keep up with demand for their electric cars. Recently discovered Horizon Minerals (HZNM) could give them exactly what they need!… Read More

A few weeks ago, I was on an exciting phone call with Joseph Hogue, Chief Investment Strategist for StreetAuthority’s newest premium newsletter, Pre-IPO Millionaire. The call was regarding his latest project — and believe me when I say, it’s something that should have every investor excited about what’s in store. I’ll get to the details of that call in a moment, but first, allow me to recap… Joseph is a research analyst who has written for StreetAuthority for years. He’s also a respected expert in the burgeoning field of pre-IPO investing — that is, investing in “startup”-stage companies before they… Read More

A few weeks ago, I was on an exciting phone call with Joseph Hogue, Chief Investment Strategist for StreetAuthority’s newest premium newsletter, Pre-IPO Millionaire. The call was regarding his latest project — and believe me when I say, it’s something that should have every investor excited about what’s in store. I’ll get to the details of that call in a moment, but first, allow me to recap… Joseph is a research analyst who has written for StreetAuthority for years. He’s also a respected expert in the burgeoning field of pre-IPO investing — that is, investing in “startup”-stage companies before they go public. These are the kinds of deals that have delivered incredible gains to wealthy investors in companies like Facebook and Twitter before they went public. We’re talking about seriously innovative companies and potentially life-changing opportunities for investors here. Thanks to the recent loosening of regulations that allow practically anyone to invest in these companies, we quickly saw an opportunity to partner with Joseph and educate the public about this exciting new way of investing. —Sponsored Link— SHOCKING: Is Your Pension A Ticking Time Bomb? American public pensions are now $5.6 TRILLION in debt. The… Read More

As an analyst who spends every day looking at numbers, I have a tendency to try and quantify everything. We humans, as a species, tend to do this all the time. For the most part, it serves us well. But it can also sometimes be a trap, diminishing the value… Read More

In yesterday’s edition of StreetAuthority Daily, I made the case that investors should look to increased military spending by the new Trump administration and Republican-controlled congress as a strong catalyst for investing in the sector. The pick I shared in that article was a company that’s responsible for the construction of the bulk of the current U.S. Navy fleet. And since the Navy itself has said it will need at least 82 new vessels to maintain operational capacity, it is very likely that this company will continue to benefit. Another way to indirectly benefit from increased military spending in general… Read More

In yesterday’s edition of StreetAuthority Daily, I made the case that investors should look to increased military spending by the new Trump administration and Republican-controlled congress as a strong catalyst for investing in the sector. The pick I shared in that article was a company that’s responsible for the construction of the bulk of the current U.S. Navy fleet. And since the Navy itself has said it will need at least 82 new vessels to maintain operational capacity, it is very likely that this company will continue to benefit. Another way to indirectly benefit from increased military spending in general is with a recent pick made by my colleague Jimmy Butts, Chief Investment Strategist of Maximum Profit. —Recommended Link— 10 Stocks That Will Survive (And THRIVE) In The Era Of Trump Prime your portfolio for a chaotic 2017 with these rock solid, profit-packed stocks. They’re set to soar no matter which direction the market turns, so check out the list here… For those who are unfamiliar, Jimmy’s system uses two important momentum-based indicators to deliver “buy” signals on stocks when they are entering a period of rapid growth, and “sell” signals for when it’s time to book profits and… Read More

Last Friday, Donald J. Trump was officially sworn in as the 45th president of the United States. As the news coverage last week focused on the inaugural festivities, demonstrations and cabinet confirmation hearings, I spent a considerable amount of time thinking about what the new administration will mean for investors — namely, what sectors will likely benefit the most? #-ad_banner-#In general, I don’t believe in starting investment research based on politics. But it is undeniable that the agendas set by any given administration sometimes have profound effects on the American economy and the companies that do business here. And so… Read More

Last Friday, Donald J. Trump was officially sworn in as the 45th president of the United States. As the news coverage last week focused on the inaugural festivities, demonstrations and cabinet confirmation hearings, I spent a considerable amount of time thinking about what the new administration will mean for investors — namely, what sectors will likely benefit the most? #-ad_banner-#In general, I don’t believe in starting investment research based on politics. But it is undeniable that the agendas set by any given administration sometimes have profound effects on the American economy and the companies that do business here. And so far, there is good reason to believe that will be especially true with the Trump administration. While you may or may not have supported President Trump when he was campaigning, one thing is clear: this administration is likely going to be very friendly to the military.  Just take a look at some of the cabinet-level officials that have been nominated and note their military experience: – Gen. James Mattis – Secretary of Defense (retired Marine Corps General, U.S. Central Command) – Gen. Michael Flynn – National Security Advisor (retired U.S. Army Lt. General, former director of Defense Intelligence Agency) –… Read More