As any investor can attest to, things are not always what they seem. Take volatility in the market. It’s bad, right? Not necessarily. There is an often-misunderstood index that tracks the market’s volatility called the… Read More

Appearances can be deceiving. While on the surface everything these days seems to be moving along without a hitch, there is a huge underlying force steering the U.S. economy.  I am not talking about a dark and evil conspiracy plotting to overthrow the… Read More

Whenever I’m faced with a major change in my opinion regarding the market‘s long-term direction, I think of the English punk band the Clash.  In particular, the 1980s hit “Should I Stay or Should I Go” comes to mind. With apologies to the song’s writers:  “Should I buy or should I sell? If I buy, there will be trouble / If I sell, it will be double.” #-ad_banner-# Thinking of these altered lyrics might be a nod to being obsessed with music during my adolescence. It might also… Read More

Whenever I’m faced with a major change in my opinion regarding the market‘s long-term direction, I think of the English punk band the Clash.  In particular, the 1980s hit “Should I Stay or Should I Go” comes to mind. With apologies to the song’s writers:  “Should I buy or should I sell? If I buy, there will be trouble / If I sell, it will be double.” #-ad_banner-# Thinking of these altered lyrics might be a nod to being obsessed with music during my adolescence. It might also be a signal that it’s time to make a change. I like to think of them as the latter. Over the past week, I thought of those lyrics when looking at the price of gold. Regular StreetAuthority readers will remember my April 29 article on the precious metal. I had forecast that gold would drop below $1,200 an ounce before bouncing higher. This is exactly what has occurred with gold futures dropping to $1,179 prior to bouncing into the $1,250 range seven sessions later.  This has led me to turn… Read More

Buying on weakness and selling on strength is the hallmark of the professional trader. While the average Joe Investor attempts to buy stocks as they are climbing higher, the professional quietly waits for prices to drop in order to enter positions. Obviously, not… Read More

In this modern age of instant market access, high-frequency trading and real-time news, there really is nothing new under the sun. The stock market still goes up and goes down, investors still make and lose money, and the basic market dynamics between a buyer and a seller remain the same. Many market lessons taught a century ago still ring true today. One of the most influential and successful stock market speculators of all time… Read More

In this modern age of instant market access, high-frequency trading and real-time news, there really is nothing new under the sun. The stock market still goes up and goes down, investors still make and lose money, and the basic market dynamics between a buyer and a seller remain the same. Many market lessons taught a century ago still ring true today. One of the most influential and successful stock market speculators of all time is the legendary Jesse Livermore. Many lessons can be learned from both his successes and failures, which were epic in scale. He made and lost several fortunes over his career, and his life ended tragically.#-ad_banner-# Livermore was keenly aware of his own shortcomings. Although this knowledge wasn’t enough to save him, the wisdom he shared with the world is as much worth heeding today as it has ever been. Let’s take a closer look at the man once called the “Speculator King” and one of his powerful investing strategies. Fortunes Won, Fortunes Lost… Read More

When discussing the financial markets with fellow investors, I am often asked, “What book has had the most impact on your investing philosophy?” Without hesitation, I answer, “Triumph of the Optimists.” This 2002 book isn’t a how-to on investing or trading. Rather, it’s a treatise on the investment returns over the entire 20th century. The book has had a profound effect on the way I view the stock market. Read More

When discussing the financial markets with fellow investors, I am often asked, “What book has had the most impact on your investing philosophy?” Without hesitation, I answer, “Triumph of the Optimists.” This 2002 book isn’t a how-to on investing or trading. Rather, it’s a treatise on the investment returns over the entire 20th century. The book has had a profound effect on the way I view the stock market. This little-known book radically altered my thinking from focusing exclusively on narrow short-term results to a broad-based long-term view.#-ad_banner-# In other words, it has allowed me to see the forest rather than just the trees. It is through this prism that I feel confident in making this bold market prediction. “Triumph of the Optimists” looks at 101 years of global investment returns and teaches what is, to my thinking, the correct way to measure returns over time. What I found most profound is that from 1900 to 2000, in terms of returns,… Read More

Biotech investing is like the Wild West: Anything can — and does — happen.  Inexpensive stocks in this sector can shoot higher on signals of positive test results. By the same token, top-performing biotech shares can plummet when a flagship product fails to gain regulatory approval or is forced into irrelevancy by a competitor.  Even companies that appear to be up-and-coming industry leaders can quickly fade into… Read More

Biotech investing is like the Wild West: Anything can — and does — happen.  Inexpensive stocks in this sector can shoot higher on signals of positive test results. By the same token, top-performing biotech shares can plummet when a flagship product fails to gain regulatory approval or is forced into irrelevancy by a competitor.  Even companies that appear to be up-and-coming industry leaders can quickly fade into has-been status on news of a minor negative occurrence. In other words, while the biotech investing arena can sometimes offer rapid returns, it is only for investors who can stomach risk. One tactic used by the most successful investors in this arena is to spread risk across multiple stocks. This tactic relies on speculating that one or more will be a huge winner, creating profits for the portfolio despite the almost guaranteed losers.  The latest biotech company catching my attention is Exact… Read More

Biotech investing is like the Wild West: Anything can — and does — happen.  Inexpensive stocks in this sector can shoot higher on signals of positive test results. By the same token, top-performing biotech shares can plummet when a flagship product fails to gain regulatory approval or is forced into irrelevancy by a competitor.  Even companies that appear to be up-and-coming industry leaders can quickly fade into… Read More

Biotech investing is like the Wild West: Anything can — and does — happen.  Inexpensive stocks in this sector can shoot higher on signals of positive test results. By the same token, top-performing biotech shares can plummet when a flagship product fails to gain regulatory approval or is forced into irrelevancy by a competitor.  Even companies that appear to be up-and-coming industry leaders can quickly fade into has-been status on news of a minor negative occurrence. In other words, while the biotech investing arena can sometimes offer rapid returns, it is only for investors who can stomach risk. One tactic used by the most successful investors in this arena is to spread risk across multiple stocks. This tactic relies on speculating that one or more will be a huge winner, creating profits for the portfolio despite the almost guaranteed losers.  The latest biotech company catching my attention is Exact… Read More

When I was growing up in Pittsburgh, nearly everyone had some connection to the steel industry. If not your own parents, then it was your uncle or neighbor who was employed by the huge steel mills lining the riverbanks. Even the city’s pro football team is named in homage to… Read More

Take a moment to try to imagine the perfect business. It wouldn’t have any of the worries or costs associated with inventory. The business would be able to profit from any product or service in the… Read More