The beaches were closed here in the New York City area this past Labor Day weekend as the slow-moving and dangerous tropical storm Hermine approached the area. People were told to expect stormy conditions, strong winds and rain, and to prepare for flash floods.  After the devastation of Superstorm Sandy nearly four years ago, nobody wanted to take any chances. Fortunately, this time, the storm took a slightly different path than was predicted, and its effects on the city were more or less contained to the beaches.  So even though the sun was shining and the winds were calm, there… Read More

The beaches were closed here in the New York City area this past Labor Day weekend as the slow-moving and dangerous tropical storm Hermine approached the area. People were told to expect stormy conditions, strong winds and rain, and to prepare for flash floods.  After the devastation of Superstorm Sandy nearly four years ago, nobody wanted to take any chances. Fortunately, this time, the storm took a slightly different path than was predicted, and its effects on the city were more or less contained to the beaches.  So even though the sun was shining and the winds were calm, there weren’t many complaints about the extra steps that officials took in response to the National Weather Service’s (NWC) warnings. It’s still prudent to be prepared for all eventualities rather than ignore the clear signs of an impending danger — even if it might not materialize.  These days, it feels like it’s the Federal Reserve that serves as some kind of National Weather Service for the stock market. The Fed does not know if there will be a storm — but what Fed governors do know is that the market conditions might be changing, and they keep telling us as much. … Read More

If a Blue Chip stock suddenly drops 16% in one day, what do you do? Do you rush to buy? Do you step aside and wait for the dust to clear? Or do you give up on the stock altogether?  #-ad_banner-#There is no single one-size-fits-all answer. Even in our daily lives, we don’t generally buy something simply because it’s on sale. Still, many of us start our shopping trips with a sales rack and make our decisions on a case-by-case basis.  Similar logic applies to the stock market. Costs matter, but so do the reasons why a stock gets a… Read More

If a Blue Chip stock suddenly drops 16% in one day, what do you do? Do you rush to buy? Do you step aside and wait for the dust to clear? Or do you give up on the stock altogether?  #-ad_banner-#There is no single one-size-fits-all answer. Even in our daily lives, we don’t generally buy something simply because it’s on sale. Still, many of us start our shopping trips with a sales rack and make our decisions on a case-by-case basis.  Similar logic applies to the stock market. Costs matter, but so do the reasons why a stock gets a discount. In the case of one of the most recent recommendations in my premium newsletter, The Daily Paycheck, I think bargain-shopping is perfectly appropriate motivation.  —Recommended Link— Flexible Retirement Plan Lets You Schedule Payments When You Want Retirees love this program because they see in advance exactly how much income they’ll make AND exactly when they’ll make it. And it’s 37% safer than the stock market. Check it out here… When shares of Bristol-Myers Squibb (NYSE: BMY) plunged on August 5, there were good reasons why investors suddenly dumped the stock. On that Friday, the company announced that its… Read More

For the first time since 1999, all three major U.S. stock indices — the S&P 500, the Dow Jones Industrial Average, and the Nasdaq 100 — all closed at record-high levels on the same day, August 11. One component continues to be missing, however, especially for those who remember the late 1990s: the atmosphere of celebration.  But maybe that’s not so surprising, given that there are fewer people at the party.  According to a Gallup poll in April, only a little more than half of Americans said they had any money invested in the stock market. The 52% that did… Read More

For the first time since 1999, all three major U.S. stock indices — the S&P 500, the Dow Jones Industrial Average, and the Nasdaq 100 — all closed at record-high levels on the same day, August 11. One component continues to be missing, however, especially for those who remember the late 1990s: the atmosphere of celebration.  But maybe that’s not so surprising, given that there are fewer people at the party.  According to a Gallup poll in April, only a little more than half of Americans said they had any money invested in the stock market. The 52% that did fess up to owning stocks matched the lowest level in the 19-year history of Gallup’s survey. Here’s a look at the trend: Percentage of U.S. Adults Invested in the Stock Market   Source: Gallup   To be sure, many investors and potential and former investors remain spooked by the two vicious bear markets the past two decades, along with the psychological — and real — impact of the Great Recession in 2008-2009. Not exactly a confidence booster.  #-ad_banner-#Still, the beat goes on — many of us who have taken the plunge in recent years have… Read More

It’s been nearly three decades since the prefix “robo” entered the popular lexicon, thanks to the 1987 film RoboCop, in which a fatally wounded policeman returns to fight crime as a powerful cyborg. (My own initial viewing of the movie came courtesy of a bootlegged VHS tape in a basement in Ukraine, but that’s another story.) Since then, we’ve been exposed to robopets, robosigners, robocallers, and robochefs, among others. And now the investing community has a “robo” of its own, and it’s emerging as one of the biggest trends in the money-management business: robo-advising.  —Sponsored Link—… Read More

It’s been nearly three decades since the prefix “robo” entered the popular lexicon, thanks to the 1987 film RoboCop, in which a fatally wounded policeman returns to fight crime as a powerful cyborg. (My own initial viewing of the movie came courtesy of a bootlegged VHS tape in a basement in Ukraine, but that’s another story.) Since then, we’ve been exposed to robopets, robosigners, robocallers, and robochefs, among others. And now the investing community has a “robo” of its own, and it’s emerging as one of the biggest trends in the money-management business: robo-advising.  —Sponsored Link— The Greatest Commodity Shortage In History It’s no secret the world faces shortages in many commodities. The world’s diminishing supply of everything from cocoa to coffee… lithium to lumber… phosphate to plutonium… silver to sugar… is of great concern. But there’s an even bigger and more imminent commodity shortage at hand that no one is talking about. Details here. Mostly thanks to their rock-bottom costs — robo-advisers have progressed from relative obscurity just a few years ago to a becoming a significant force in the industry.  Management consulting firm A.T. Kearney recently predicted that robo-advisors… Read More

When it comes to income, I’m a fan of real estate investment trusts (REITs). After all, what’s not to like? This sector was almost custom-made for dividend investors.  It’s still a relatively young asset class, with main legislative documents regulating its functioning only signed in 1960. The general idea: allow individuals with smaller capital an opportunity to invest in commercial real estate and benefit from its income generation and other opportunities without actually buying properties.  This income has the potential to grow — as does the value of the properties. By law, REITs are required to pay out at least… Read More

When it comes to income, I’m a fan of real estate investment trusts (REITs). After all, what’s not to like? This sector was almost custom-made for dividend investors.  It’s still a relatively young asset class, with main legislative documents regulating its functioning only signed in 1960. The general idea: allow individuals with smaller capital an opportunity to invest in commercial real estate and benefit from its income generation and other opportunities without actually buying properties.  This income has the potential to grow — as does the value of the properties. By law, REITs are required to pay out at least 90% of their annual taxable income to investors. This too is attractive, especially today, as bond yields continue to slide.  —Sponsored Link— 6% Yields On Stocks That Doubled Only the strongest stocks pay regular 4% to 6% yields while growing your savings, too. Discover 9 stocks with a solid record of raising dividends on a regular basis — and each one passed tests with flying colors. Get the list, free. REITs are also excellent portfolio diversifiers. This asset class has relatively low correlation with other financial assets, which is unique. This… Read More