President Trump’s tariffs have thrown the stock market into disarray. Hailed as a stock market miracle with his pro-business, anti-tax stance, investors have started to see another side of our controversial president. For nearly two years, the stock market has only moved higher — punctuated with only minor periods of flat price action. The Dow Jones Industrial Average had an explosive run, rocketing over 10,000 points from February 2016 to January 2018. #-ad_banner-#Volatility cratered during this same time frame with the VIX, or fear index, falling into the single digits as bullish fever swept the nation. Sophisticated market players were… Read More

President Trump’s tariffs have thrown the stock market into disarray. Hailed as a stock market miracle with his pro-business, anti-tax stance, investors have started to see another side of our controversial president. For nearly two years, the stock market has only moved higher — punctuated with only minor periods of flat price action. The Dow Jones Industrial Average had an explosive run, rocketing over 10,000 points from February 2016 to January 2018. #-ad_banner-#Volatility cratered during this same time frame with the VIX, or fear index, falling into the single digits as bullish fever swept the nation. Sophisticated market players were cranking in money on the famous “Short VIX” derivative trades, while everyday investors cranked in substantial profits on the long side. In my 25-plus years of investing, I have never witnessed a market quite like this one! Not far into 2018, the party came to a screeching halt when Trump started getting serious about his campaign promise. Since when does a president keeping the very promises that got him elected result in a sharp stock market selloff? It does when the pre-election pledge has to do with tariffs and trade wars. Trump’s strong “America First” rhetoric scored him massive points… Read More

Few sectors have been battered like retail. A trifecta of bearish pressure, including the explosive growth of online shopping, consumer burnout, and with a failure to change with the times, combined to knock the sector lower. #-ad_banner-#Retail stocks are lower by around 30% on average in the last three years. Some have plunged much more, and others have closed their doors permanently. Toys “R” Us is the latest casualty of the retail apocalypse. Over 6,700 retail locations closed their doors in 2017 — a staggering figure no matter how you look at it. Opportunity lays in adversity, and nowhere is… Read More

Few sectors have been battered like retail. A trifecta of bearish pressure, including the explosive growth of online shopping, consumer burnout, and with a failure to change with the times, combined to knock the sector lower. #-ad_banner-#Retail stocks are lower by around 30% on average in the last three years. Some have plunged much more, and others have closed their doors permanently. Toys “R” Us is the latest casualty of the retail apocalypse. Over 6,700 retail locations closed their doors in 2017 — a staggering figure no matter how you look at it. Opportunity lays in adversity, and nowhere is this more evident than the stock market. Buying when there is blood in the street is a time-proven way of earning outsized returns. However, the question has always been when and what to buy. To be sure, some retailers will not survive the current rout. Others will grow stronger and thrive in the face of the meltdown. This is where technical analysis makes sense. While far from 100% accurate, technical price charts can key you in to when trend changes may occur. Things appear to be slowly improving, with the S&P 500 Retail ETF (XRT) just slightly lower in 2018… Read More

The housing market remains on fire in many regions across the country.  Home prices have steadily climbed higher since the devastating global real estate crash a decade ago. In fact, the current market appears to be accelerating to the upside. A thriving job market, low interest rates, and consumers rushing to get a piece of the American Dream before mortgage rates potentially climb to unattainable levels are all powering the upward trajectory. #-ad_banner-#New home sales climbed 10% in 2017 to 615,000, with prices appreciating mid-single digits over the last half decade. Price growth was even higher in coastal areas and… Read More

The housing market remains on fire in many regions across the country.  Home prices have steadily climbed higher since the devastating global real estate crash a decade ago. In fact, the current market appears to be accelerating to the upside. A thriving job market, low interest rates, and consumers rushing to get a piece of the American Dream before mortgage rates potentially climb to unattainable levels are all powering the upward trajectory. #-ad_banner-#New home sales climbed 10% in 2017 to 615,000, with prices appreciating mid-single digits over the last half decade. Price growth was even higher in coastal areas and other hot markets. But what I find most bullish about the next few years is the housing shortage. According to Realtor.com, the United States is facing a housing shortage, particularly for first-time home buyers. Housing inventories are at the lowest level in two decades. Javier Vivas, director of economic research at Realtor.com, said, “It really is a shortage of historic proportions.” The housing shortage translates into longer-term profits for builders and others in the housing business as the low inventory assures continued stable to higher prices and therefore profits. Make no mistake: The SPDR S&P 500 Homebuilders ETF (XHB) is… Read More

“When rates are high, stocks will die, and when rates are low, stocks will grow.” I’ll never forget hearing this at a stock market seminar when I was around 12 years old.  Taken to the symposium by my investor grandfather, this was my first actual exposure to stock market wisdom. These were the days of 17%-plus interest rates and some Fidelity mutual funds posting massive returns of over 25%! #-ad_banner-#If someone had predicted rates near zero less than a generation in the future, they would have been laughed out of the room. However, the impossible has now happened, with rates… Read More

“When rates are high, stocks will die, and when rates are low, stocks will grow.” I’ll never forget hearing this at a stock market seminar when I was around 12 years old.  Taken to the symposium by my investor grandfather, this was my first actual exposure to stock market wisdom. These were the days of 17%-plus interest rates and some Fidelity mutual funds posting massive returns of over 25%! #-ad_banner-#If someone had predicted rates near zero less than a generation in the future, they would have been laughed out of the room. However, the impossible has now happened, with rates pushed to zero in a valiant effort to save the U.S. economy. Fast forward to the early part of 2018 and the low rates and massive quantitative easing measures have worked their magic, with the stock market making record high after record high. Now, with the economy potentially going into overdrive, the Fed has slowly started to bump up rates. Rates have begun to climb with up to four increases possible for this year. Will the old saying about stocks dying when rates climb pan out this year? Does the rate rise regime mean the bull market will soon be… Read More

The recent extreme volatility and the downward trend of bitcoin have many investors wondering how to make money from its potential collapse. Here are five ways to do just that. 1. Futures As a nod to the mainstream acceptance of bitcoin, the Chicago Board Options Exchange (CBOE) and the Chicago Mercantile Exchange (CME) launched futures for the currency last fall. Futures provide the investor the ability to buy or sell a contract. #-ad_banner-#A future contract is purchased if you are expecting the price of the underlying asset — in this case, bitcoin — to increase in value. Future contracts… Read More

The recent extreme volatility and the downward trend of bitcoin have many investors wondering how to make money from its potential collapse. Here are five ways to do just that. 1. Futures As a nod to the mainstream acceptance of bitcoin, the Chicago Board Options Exchange (CBOE) and the Chicago Mercantile Exchange (CME) launched futures for the currency last fall. Futures provide the investor the ability to buy or sell a contract. #-ad_banner-#A future contract is purchased if you are expecting the price of the underlying asset — in this case, bitcoin — to increase in value. Future contracts are sold with the hope that the price will drop in value. Selling a bitcoin futures contract is an efficient way to take a short position in its price. First, let’s take a look at the futures offered by the CME. Traded under the symbol BTC, each contract represents five bitcoins. The minimum price fluctuation, or tic, is $25.00 per contract. Unlike bitcoin itself, which trades 24/7, the CME futures’ trading hours are 5:00 p.m. to 4:00 p.m. CST Sunday-Friday. The CME bitcoin futures price is based on CME’s bitcoin reference rate. The reference rate is built on bitcoin prices… Read More

Finding hidden gems in the stock market is every investor’s dream.  Those stocks with massive upside potential that no one is paying attention to yet are like needles in the market’s haystack of investible names. Many times these diamonds in the rough are found in the small-cap market.   #-ad_banner-#Small-caps are public companies with a market cap of roughly $300 million to $4 billion.  Above $4 billion, a company moves into the mid-cap category. Below $300 million, a company is considered to be part of the micro-cap or even penny stock segments. Read More

Finding hidden gems in the stock market is every investor’s dream.  Those stocks with massive upside potential that no one is paying attention to yet are like needles in the market’s haystack of investible names. Many times these diamonds in the rough are found in the small-cap market.   #-ad_banner-#Small-caps are public companies with a market cap of roughly $300 million to $4 billion.  Above $4 billion, a company moves into the mid-cap category. Below $300 million, a company is considered to be part of the micro-cap or even penny stock segments. The small-cap sector is indeed the sweet spot of the stock market.  While penny stocks and micro-caps have greater volatility, and therefore more potential, the risk factor is just too high for most conservative investors.  Despite recently lagging, the small-cap market is well known for outperforming the overall market in the long term.   I have identified three under-the-radar small-cap stocks boasting colossal upside potential: 1. Albany International (NYSE: AIN) Sitting on a $2 billion market capitalization, Albany is solidly in the small-cap category. Launched in 1895, the company’s primary focus is… Read More

The recent stock market volatility has many investors questioning the wisdom of being bullish on the stock market. Massive point swings and the soaring CBOE Volatility Index (VIX) have placed fear deep inside the hearts of long-term stock investors. Should you be concerned about the newfound bearish market action?  Is it time to sell and move into different asset classes? Or is every dip another buying opportunity? RELAX! My research discovered there is no reason to be concerned just yet. #-ad_banner-#I welcome the volatility and strongly think every… Read More

The recent stock market volatility has many investors questioning the wisdom of being bullish on the stock market. Massive point swings and the soaring CBOE Volatility Index (VIX) have placed fear deep inside the hearts of long-term stock investors. Should you be concerned about the newfound bearish market action?  Is it time to sell and move into different asset classes? Or is every dip another buying opportunity? RELAX! My research discovered there is no reason to be concerned just yet. #-ad_banner-#I welcome the volatility and strongly think every market dip is a new buying opportunity — at least until August 2018. Here’s why: 1. Monetary Easing Worked I don’t want to bore you with facts and figures so I will paint with a broad brush. The massive quantitative easing program implemented after the financial crisis of 2008 has worked its magic. The economy has been kick-started and is currently expanding under its power. In fact, growth has been so impressive the Federal Reserve has started to raise rates, which is one of the reasons for… Read More

“Wow!” is the only appropriate expression for the wild cryptocurrency ride over the last year. Bitcoin soared from around $1,000.00 at the start of 2017 to a high of over $19,000 on December 18, 2017. Other cryptocurrencies like Ripple and Ethereum exploded with even more power. Ethereum moved from around $10.00 to over $1,300.00 in a year’s time. During the same period, Ripple went from pennies to over $3.00 in a similar mind-blowing move. #-ad_banner-#These massive moves created instant millionaires from small-time investors. Everyone from the barista at Starbucks and Uber drivers to hedge… Read More

“Wow!” is the only appropriate expression for the wild cryptocurrency ride over the last year. Bitcoin soared from around $1,000.00 at the start of 2017 to a high of over $19,000 on December 18, 2017. Other cryptocurrencies like Ripple and Ethereum exploded with even more power. Ethereum moved from around $10.00 to over $1,300.00 in a year’s time. During the same period, Ripple went from pennies to over $3.00 in a similar mind-blowing move. #-ad_banner-#These massive moves created instant millionaires from small-time investors. Everyone from the barista at Starbucks and Uber drivers to hedge fund managers and corporate executives were talking about and buying cryptocurrencies. Next, the inevitable happened as prices started to decline. The massive crypto bubble began to unravel as prices plunged lower. Late-stage investors were left speechless as their “can’t lose” investments just kept dropping. Terrified of further losses, many of these first-time investors rushed to dump their holdings, exasperating an already dire situation. Declines of 50% to 75% from the highs shook the crypto market to its core. But a bottom was found, with prices rocketing back from… Read More

The February stock market rout created a tremendous opportunity for long-term investors. Everyone is asking which stocks make sense for the rest of 2018 and beyond. The following five stocks are my favorite large-cap names for a buy-and-hold portfolio. 1. United Parcel Service (NYSE: UPS) Shares of this package delivery service have plunged around 30% from their January 2018 highs. The February market plunge resulted in a steep gap, exasperating an already dire situation. #-ad_banner-#Currently, shares are building a base in the $105.00 zone, setting up an ideal technical buy opportunity. Let’s take a closer look. Fundamentals supporting the… Read More

The February stock market rout created a tremendous opportunity for long-term investors. Everyone is asking which stocks make sense for the rest of 2018 and beyond. The following five stocks are my favorite large-cap names for a buy-and-hold portfolio. 1. United Parcel Service (NYSE: UPS) Shares of this package delivery service have plunged around 30% from their January 2018 highs. The February market plunge resulted in a steep gap, exasperating an already dire situation. #-ad_banner-#Currently, shares are building a base in the $105.00 zone, setting up an ideal technical buy opportunity. Let’s take a closer look. Fundamentals supporting the bullish call include the dividend increase of 10% in February. The company has increased dividends every year since 1969, and they have quadrupled since 1999. UPS boasts a healthy cash flow to support the ever-growing payout to investors. CEO David Abney stated, “Dividends remain a high priority at UPS. Our strong cash flow from operations has enabled us to pay a stable or growing dividend for nearly 50 years.” Next, the company has been knocked lower due to a perceived Amazon threat; however, it still boasts the top margins in the industry. Also, it has posted a compound annual growth… Read More

The multi-thousand point decline in the Dow Jones Industrial Average shook many investors to the core. Unsophisticated market participants were dumping stocks and moving quickly into supposed safe asset classes as “end of the world” pundits stoked the flames of fear. At the same time, the radical plunge set up the best buying opportunity of the decade for those who understand how markets really work. #-ad_banner-#This article will lay out seven compelling reasons why right now is the buying opportunity of the decade. 1. The Stock Market Is Designed To Move… Read More

The multi-thousand point decline in the Dow Jones Industrial Average shook many investors to the core. Unsophisticated market participants were dumping stocks and moving quickly into supposed safe asset classes as “end of the world” pundits stoked the flames of fear. At the same time, the radical plunge set up the best buying opportunity of the decade for those who understand how markets really work. #-ad_banner-#This article will lay out seven compelling reasons why right now is the buying opportunity of the decade. 1. The Stock Market Is Designed To Move Higher The very design of the stock market creates a tremendous upward bias. Take a look at any significant index chart from the inception of the U.S. stock market. Every single long-term chart reveals an upward trending pattern punctuated by short pullbacks. All sell offs are bought, and the market ends higher than it was before the pullback. Now, to be sure, I am talking about the long term, not the short term price gyrations that appear random. No one can consistently time market moves successfully, therefore long-term investing is the only proven wealth-creating strategy. Read More