Computers and the internet have become indispensable parts of our lives. From smart phones and automobiles to how we bank and even exercise, rarely does a day go by that we do not interface with the silicon chip-powered machines.  Most investors focus on the microprocessor when they think of computer chips. Giants such as Intel (Nasdaq: INTC) have built empires on the back of the microprocessor revolution.  Obviously, microprocessors are here to stay, but decent opportunities for investors in the space are rapidly diminishing. The mature industry is in the midst of a long-term plateau as manufacturing efficiencies, economies of… Read More

Computers and the internet have become indispensable parts of our lives. From smart phones and automobiles to how we bank and even exercise, rarely does a day go by that we do not interface with the silicon chip-powered machines.  Most investors focus on the microprocessor when they think of computer chips. Giants such as Intel (Nasdaq: INTC) have built empires on the back of the microprocessor revolution.  Obviously, microprocessors are here to stay, but decent opportunities for investors in the space are rapidly diminishing. The mature industry is in the midst of a long-term plateau as manufacturing efficiencies, economies of scale, and market saturation drive prices ever lower.  If you missed the microprocessor boom, it’s not too late to capitalize on the chip market. Today’s explosive trends, including artificial intelligence, machine learning, and the ubiquitous Internet of Things, all have one thing in common: An insatiable thirst for recalling and analyzing massive amounts of information.  We are in the infancy of the next technological revolution, and memory chips are at the core of these radical changes. Even better, their rise could bring investors the same results seen by early backers of microprocessors. What Are Memory Chips Memory chips are… Read More

It’s not hard to find quality income-producing stocks. Nearly every investor out there can screen for stocks based on dividend yields. However, there is far more to successful income investing than buying high-yielding dividend payers.  Many times, the highest yielding stocks are also the least reliable. Remember, the yield is inversely proportional to the share price. In other words, the lower the share price moves, the higher the yield (assuming the dividend payment stays the same). Therefore, high-yielding stocks may only provide the high yields due to a plunging stock price. Investors must now look beyond dividends for income. Stock… Read More

It’s not hard to find quality income-producing stocks. Nearly every investor out there can screen for stocks based on dividend yields. However, there is far more to successful income investing than buying high-yielding dividend payers.  Many times, the highest yielding stocks are also the least reliable. Remember, the yield is inversely proportional to the share price. In other words, the lower the share price moves, the higher the yield (assuming the dividend payment stays the same). Therefore, high-yielding stocks may only provide the high yields due to a plunging stock price. Investors must now look beyond dividends for income. Stock buybacks have become a popular way for companies to give excess cash back to investors.  Buybacks, or share repurchase programs, are a viable alternative for savvy investors. The trick is to find companies with long term buyback plans that also have growth catalysts. This combination is the key to finding ideal income stocks. Here are three income stocks with high growth potential over the long term. Today’s disconnect between revenue and share price make these stocks a welcome anomaly.  3 Income-Producing Stocks With Strong Buyback Plans 1. American International Group (NYSE: AIG)  This nearly $60 billion global insurance company… 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

Long second fiddle to the United States, China is racing to become the world’s largest economic power. Investors who heed the call are positioned to ride the bullish wave to handsome profits over the long term.  Make no mistake, China has and will continue to experience growing pains, but this is part of the economic expansion process. Savvy investors have used the short-lived bearish periods to snap up equities at deeply discounted prices.  And right now, it’s looking like the ideal time to buy into the Chinese financial sector.  The Current State Of The Chinese Economy Many investors were… Read More

Long second fiddle to the United States, China is racing to become the world’s largest economic power. Investors who heed the call are positioned to ride the bullish wave to handsome profits over the long term.  Make no mistake, China has and will continue to experience growing pains, but this is part of the economic expansion process. Savvy investors have used the short-lived bearish periods to snap up equities at deeply discounted prices.  And right now, it’s looking like the ideal time to buy into the Chinese financial sector.  The Current State Of The Chinese Economy Many investors were shaken by April’s nearly 3% decline in the Shanghai stock market.  The bearish volatility resulted from regulators clamping down on shadow banking and speculative trading. While short-term bearish, these moves will benefit patient investors.  The Xinhua News Agency recently stated that the changes toward stability, “have provided a good external environment and a window of opportunity to reduce leverage in the financial system, strengthen supervision and ward off risks… Over the past week, interbank rates trended higher, bond and capital markets suffered from sustained corrections and some institutions faced liquidity pressure. However, these have little impact on the stability of… Read More

I love discovering alpha in the stock market. Alpha, in this context, means excess returns relative to the return of a passive index fund over the same time period.  Alpha is the goal of every investor regardless of size, from the largest hedge funds to everyday investors. Sometimes, it takes looking outside of your comfort zone to find alpha. And right now, the emerging markets are where it’s at.  Emerging markets have soared over 17% this year. This is nearly 300% higher performance than the 6% or so year-to-date return of the S&P 500.  How Do I Invest In Emerging… Read More

I love discovering alpha in the stock market. Alpha, in this context, means excess returns relative to the return of a passive index fund over the same time period.  Alpha is the goal of every investor regardless of size, from the largest hedge funds to everyday investors. Sometimes, it takes looking outside of your comfort zone to find alpha. And right now, the emerging markets are where it’s at.  Emerging markets have soared over 17% this year. This is nearly 300% higher performance than the 6% or so year-to-date return of the S&P 500.  How Do I Invest In Emerging Markets? Don’t worry, it’s easy! Today’s stock market investors can capture emerging markets alpha via ETFs. Once reserved for wealthy and connected investors, ETFs are now available for every investor. Investing in ETFs is no different than buying any stock. ETFs provide ready-built diversification, liquidity, and access to a wide variety of markets.  There are genuinely diversified ETFs holding a basket of stocks across the emerging markets, and there are others that are nation- or even industry-specific.  3 Ways To Play Emerging Markets  1. India India is my favorite emerging market right now. The once-struggling economy has gained… Read More

The eurozone is experiencing a perfect storm of bullish catalysts. Tremendous profits are available for risk-embracing investors who heed the clear economic signals.  The Risk Make no mistake, political risk, although improving, remains high in Europe. The eurozone has experienced quite a bit of volatility this year. Greece, Brexit, and fears of a nationalist French state following Brexit out of the European Union added tremendous political uncertainty to the financial markets.  The Bullish Case Fortunately, many of these fears have proven unfounded. The recent French election resulted in the victory of the pro-eurozone candidate, improving sentiment across the… Read More

The eurozone is experiencing a perfect storm of bullish catalysts. Tremendous profits are available for risk-embracing investors who heed the clear economic signals.  The Risk Make no mistake, political risk, although improving, remains high in Europe. The eurozone has experienced quite a bit of volatility this year. Greece, Brexit, and fears of a nationalist French state following Brexit out of the European Union added tremendous political uncertainty to the financial markets.  The Bullish Case Fortunately, many of these fears have proven unfounded. The recent French election resulted in the victory of the pro-eurozone candidate, improving sentiment across the board.  Due to the political uncertainty, on a price-to-book ratio European equities are nearing levels equivalent to U.S. equities’ 40-year lows. Eurozone equities have severely underperformed the U.S. market since the 2008 rout. As a result, full value has not been realized and opportunities exist for profit-seeking investors.  Analysts are forecasting EU stock earnings growth of 11 percent in 2017 due to the commodity recovery, small margins, and improved currency environment. When compared to expected growth of just 9 percent in the United States, it’s obvious where the opportunity lies. 5 Ways To Ride The European Bull Market 1. Federated… Read More

What goes up must come down. These words are true in many places, but especially in the stock market. High-flying stocks can quickly reverse, destroying portfolios and dreams on the way back down. The urge to keep holding huge gains for even more is strong in all investors. This urge is called greed and greed crushes profits. Controlling greed is vital for success in the stock market. The trick is knowing when to sell. Remember, no one has ever gone broke taking profits. Careful observation of internal and external factors affecting share price can provide an educated guess as to… Read More

What goes up must come down. These words are true in many places, but especially in the stock market. High-flying stocks can quickly reverse, destroying portfolios and dreams on the way back down. The urge to keep holding huge gains for even more is strong in all investors. This urge is called greed and greed crushes profits. Controlling greed is vital for success in the stock market. The trick is knowing when to sell. Remember, no one has ever gone broke taking profits. Careful observation of internal and external factors affecting share price can provide an educated guess as to when it is time to take profits. 2 Stocks You Need To Dump Now I have identified two ultra-popular, highly profitable stocks that need to be dumped now. Could these stocks continue to move higher? Sure, anything is possible in the stock market, but these two in particular show all the signs of being severely overvalued and ready to plunge. Risk-embracing experienced investors could short these monster gainers, but that’s not what this article is about. This article will lay out the case for why it is time to take profits in these two favorite companies. Believe it or… Read More

Biotechnology is among the most exciting and lucrative sectors for investors. Perhaps the only market that provides greater volatility and profit potential is the derivatives market.  With prices driven at a breakneck pace by research and FDA approvals, today’s golden company can be tomorrow’s stock market disaster. But the opposite has also proven to be true.  Sometimes the forgotten dogs of the biotech world can quickly morph into great long-term investments.  I have identified 3 biotech companies that have fallen on hard times, but have recently experienced a rash of buying by large stock market players. Make no mistake, these… Read More

Biotechnology is among the most exciting and lucrative sectors for investors. Perhaps the only market that provides greater volatility and profit potential is the derivatives market.  With prices driven at a breakneck pace by research and FDA approvals, today’s golden company can be tomorrow’s stock market disaster. But the opposite has also proven to be true.  Sometimes the forgotten dogs of the biotech world can quickly morph into great long-term investments.  I have identified 3 biotech companies that have fallen on hard times, but have recently experienced a rash of buying by large stock market players. Make no mistake, these stocks are very risky, but they have tremendous upside potential, and clearly I am not the only one who thinks so. What Caused The 2016 Biotech Bear Market? If you own biotech stocks, you know that 2016 was a difficult year for the segment. Riding high from averaging 34% annual returns from 2012 to 2015, the biotechnology index gave up 16% in 2016. And the 16% loss included a substantial recovery from the devastating plunge of 28% in January 2016.  #-ad_banner-#The primary cause of the 2016 biotech bear market was shifting investor sentiment. Fear of new regulations that could… Read More

Monthly gains of nearly 70%, 100%, and even nearing 200% occur on a regular basis in this market segment. I’m not talking about options, futures, or risky foreign stocks of any kind. The gains are homegrown right here in the United States and can be had for under $5 per share. These stocks, which typically represent new, growing companies, are in the small-cap sector. And I’ve found three stocks under $5 that are set up to be great buy opportunities. How Small-Caps Produce Outsized Gains The definition of a small-cap stock is not set in stone — it depends… Read More

Monthly gains of nearly 70%, 100%, and even nearing 200% occur on a regular basis in this market segment. I’m not talking about options, futures, or risky foreign stocks of any kind. The gains are homegrown right here in the United States and can be had for under $5 per share. These stocks, which typically represent new, growing companies, are in the small-cap sector. And I’ve found three stocks under $5 that are set up to be great buy opportunities. How Small-Caps Produce Outsized Gains The definition of a small-cap stock is not set in stone — it depends who you ask. But according to the most commonly accepted definition, small-caps are any public company with a market capitalization of $500 million to $2.5 billion.  I know this sounds like big money, but in the world of public enterprises, it is indeed minuscule. To put things in perspective, microcaps are any stocks with a sub-$500 million valuation, and midcaps are widely considered to have a capitalization greater than $2.5 billion but less than $10 billion. Anything over $10 billion places the firm in the large-cap space.  Over time, the small-cap sector outperforms the overall stock market. However, this tried… Read More

The more things change, the more they stay the same. We are undergoing tremendous changes in government, the tax system, and even in our lives. Everything seems to be getting faster. Even the stock market is not immune to the rapid-fire changes taking place. Despite the all the changes, the one thing that remains the same is the process of identifying the best dividend stocks. It’s a straightforward and consistent formula that is not affected by high-frequency trading, computer algorithms, or any of the other newfangled trading strategies. When it comes to identifying the… Read More

The more things change, the more they stay the same. We are undergoing tremendous changes in government, the tax system, and even in our lives. Everything seems to be getting faster. Even the stock market is not immune to the rapid-fire changes taking place. Despite the all the changes, the one thing that remains the same is the process of identifying the best dividend stocks. It’s a straightforward and consistent formula that is not affected by high-frequency trading, computer algorithms, or any of the other newfangled trading strategies. When it comes to identifying the best dividend stocks of 2017, the same criteria that have worked for decades can be used. It doesn’t matter who the President is, the state of the economy, or even how high or low the Dow moves. If you have not started on your path to creating a passive income from the stock market, don’t worry, it’s not too late. Even during this year’s craziest days, you can still find incredible value and reliable income. Identifying Quality Income Stocks The first sign of a top-notch dividend-payer is consistency in paying dividends. Earning a… Read More