We’re less than six weeks from the November elections, and election season usually has investors picking stocks based on the prospective policies of candidates, leading to a certain amount of market volatility. Uncertainty around the global economy and monetary policy has only helped to boost volatility this election season. But betting on stocks that win on one particular candidate is a crap shoot at best, especially in this election. Clinton and Trump differ so radically across nearly every talking point that betting on stocks favored by a particular party means the potential for massive losses if the other candidate wins. Read More

We’re less than six weeks from the November elections, and election season usually has investors picking stocks based on the prospective policies of candidates, leading to a certain amount of market volatility. Uncertainty around the global economy and monetary policy has only helped to boost volatility this election season. But betting on stocks that win on one particular candidate is a crap shoot at best, especially in this election. Clinton and Trump differ so radically across nearly every talking point that betting on stocks favored by a particular party means the potential for massive losses if the other candidate wins. #-ad_banner-#The Real Clear Politics aggregate of national polls puts Clinton’s lead at just 2.3%, close to the tightest the race has been for months. Nobody is able to call this one yet. Unbelievable as it may seem, the candidates actually do agree on one topic. They’ve both made one particular sector of the economy a key position of their platform. For that sector, the news after November could range from good to very good and a leader in the space is primed to takeoff. This Sector Is About To Get A Government Jumpstart While unprecedented monetary stimulus helped to… Read More

Shares of Apple (Nasdaq: AAPL) jumped more than 12% last week after telecom carriers reported stronger than expected preorders for the iPhone 7. Apple has said that it will break with tradition by not reporting first weekend sales of the iPhone, so carrier comments have been crucial in gauging demand for the new phones. One telecom carrier reported preorders up 375%, compared to those of last year’s 6s series. Another carrier set a single day sales record across its network. Inventory of the larger Plus model iPhone 7 in all colors was sold out through pre-orders before Friday’s release.  #-ad_banner-#By… Read More

Shares of Apple (Nasdaq: AAPL) jumped more than 12% last week after telecom carriers reported stronger than expected preorders for the iPhone 7. Apple has said that it will break with tradition by not reporting first weekend sales of the iPhone, so carrier comments have been crucial in gauging demand for the new phones. One telecom carrier reported preorders up 375%, compared to those of last year’s 6s series. Another carrier set a single day sales record across its network. Inventory of the larger Plus model iPhone 7 in all colors was sold out through pre-orders before Friday’s release.  #-ad_banner-#By most accounts, the release of the new phones should be a boon to wireless providers trying to get people back in their stores to renew contracts. But one carrier was noticeably more doubtful on its own preorder news, according to comments from an executive at a recent investor conference.  Weak iPhone sales may not be the company’s only problem, as costs to maintain its network escalate and its large fixed-line network continues to weigh on results.   The weakness in preorders may just be a turning point that takes this telecom leader lower, even if the market hasn’t… Read More

The $28 billion merger between Spectra Energy (NYSE: SE) and Enbridge (NYSE: ENB) may mark a turning point for master limited partnerships (MLPs). Over the past two years, asset prices in the sector have crumbled as oil prices plunged, but stabilization in energy prices and recent consolidation are breathing new life into the group. Most partnerships are at least marginally protected from falling energy prices through sales agreements based on the volume of products transported or stored. However, that doesn’t mean they’re entirely immune.  MLPs pay out almost all of their cash flow as distributions and must continuously issue partnership… Read More

The $28 billion merger between Spectra Energy (NYSE: SE) and Enbridge (NYSE: ENB) may mark a turning point for master limited partnerships (MLPs). Over the past two years, asset prices in the sector have crumbled as oil prices plunged, but stabilization in energy prices and recent consolidation are breathing new life into the group. Most partnerships are at least marginally protected from falling energy prices through sales agreements based on the volume of products transported or stored. However, that doesn’t mean they’re entirely immune.  MLPs pay out almost all of their cash flow as distributions and must continuously issue partnership units (stock) or debt to grow. Weakness in energy prices led to lower cash flows and increasing debt loads, scaring lenders for debt issues while investor sentiment fell faster than share prices. #-ad_banner-# Now energy prices are stabilizing and companies are positioning for the future. I’ve found a way to play this trend that can reduce the risk associated with individual names while providing a cash yield twice as large as other dividend plays. Buyers Coming Out As Energy Turns A Corner The deal between Spectra and Enbridge is the fourth… Read More

As a former economist, I’ve always loved following the macro themes when looking for breakaway good buys in the stock market. Find the big picture forces like rates, currency impact and trade that are moving markets and you’ve got a huge head start on where an investment is going. Over the last several years, it’s these economic forces that have been leading the markets.  #-ad_banner-#Consumer staples and shares of utility companies have easily beaten the S&P 500 over the last year, jumping 12.6% and 17.2% as the Fed held off on raising rates. The flip side has been the weakness… Read More

As a former economist, I’ve always loved following the macro themes when looking for breakaway good buys in the stock market. Find the big picture forces like rates, currency impact and trade that are moving markets and you’ve got a huge head start on where an investment is going. Over the last several years, it’s these economic forces that have been leading the markets.  #-ad_banner-#Consumer staples and shares of utility companies have easily beaten the S&P 500 over the last year, jumping 12.6% and 17.2% as the Fed held off on raising rates. The flip side has been the weakness in financials as the net interest spread tightened, making it difficult for banks to make any money. As we come in to what could be the later innings of the business cycle, it won’t take much to tip the markets back into freefall.  The World Bank expects the global economy to grow just 2.4% this year, the same rate of growth booked last year, and next year is only expected to improve to 2.8% growth. Developed markets are expected to inch along at just 1.9% growth next year, less than half the 4.9% growth expected in emerging markets. On miserably… Read More

With more than a third of the global sovereign bonds market offering negative yields, it’s no surprise that investors have flocked to any source for cash yield.  The global hunt for yield has pushed prices up and rates down for everything from bonds to dividend stocks. You see it in the yield on the 10-year Treasury, which has fallen 1.26% over the last three years despite the fact that the Fed is aggressively trying to prepare investors for an increase in the Fed Funds Rate. You also see it in valuations for traditional dividend-paying sectors.  #-ad_banner-#Traditional dividend picks in consumer… Read More

With more than a third of the global sovereign bonds market offering negative yields, it’s no surprise that investors have flocked to any source for cash yield.  The global hunt for yield has pushed prices up and rates down for everything from bonds to dividend stocks. You see it in the yield on the 10-year Treasury, which has fallen 1.26% over the last three years despite the fact that the Fed is aggressively trying to prepare investors for an increase in the Fed Funds Rate. You also see it in valuations for traditional dividend-paying sectors.  #-ad_banner-#Traditional dividend picks in consumer staples and utilities are trading well above historic valuation multiples, creating a bubble that is destroying conventional views on safety sectors. The consumer staples sector is trading for almost 21-times expected earnings over the next year, a premium of 25% over its 10-year average, while utilities are trading 22% over their average at 17.8-times forward earnings. Those safety sectors offered no shelter in Friday’s 2.45% selloff in the S&P 500. Utilities fell more than any other sector with a 3.75% plunge on rate fears, and consumer staples underperformed the market with a 2.71% loss on the day.  In fact, the… Read More

Normally when investors think of stocks trading on the over-the-counter exchange, it’s only after reading the headline on some penny stock scam. Most OTC-traded companies are thinly-traded and offer very limited financial information available to shareholders. For this reason, most OTC stocks are not normally covered by analysts, and are usually completely ignored by regular investors. That can mean outsized gains for investors that are willing to dig deeper into financials to uncover the companies that are more than just a postal address for a pump-and-dump scheme. Screening through OTC stocks recently, I found one company that could be the… Read More

Normally when investors think of stocks trading on the over-the-counter exchange, it’s only after reading the headline on some penny stock scam. Most OTC-traded companies are thinly-traded and offer very limited financial information available to shareholders. For this reason, most OTC stocks are not normally covered by analysts, and are usually completely ignored by regular investors. That can mean outsized gains for investors that are willing to dig deeper into financials to uncover the companies that are more than just a postal address for a pump-and-dump scheme. Screening through OTC stocks recently, I found one company that could be the furthest from what you would normally expect on the market. It’s building a consumer internet empire, and is already the largest company in Asia. In fact, it’s bigger than Facebook (Nasdaq: FB). #-ad_banner-# Building A Consumer Internet Empire China internet usage jumped to 668 million users last year, posting growth of 5.7% from the prior year, but still only bringing the percentage of connected users to 49% of the population. Considering  that internet usage by people between the ages of 10 and 40 is above 75%, the country could see outsized growth for decades as the entire population comes online. Read More

Wearables were all tech investors could talk about last year, with innovations like the Apple Watch and fitness tracker products. This year, though, Apple’s (Nasdaq: AAPL) disappointing sales have tempered investor enthusiasm for the group.  New innovations in virtual reality seem to be getting a lot of attention, but we could still be years from a mass-market, profitable product.  #-ad_banner-#As investors search through patent applications and hunt for the next big consumer electronic craze, one trend has emerged under the radar. Industry demand is projected at double-digit growth over the next several years, with unit sales in the billions. Investors… Read More

Wearables were all tech investors could talk about last year, with innovations like the Apple Watch and fitness tracker products. This year, though, Apple’s (Nasdaq: AAPL) disappointing sales have tempered investor enthusiasm for the group.  New innovations in virtual reality seem to be getting a lot of attention, but we could still be years from a mass-market, profitable product.  #-ad_banner-#As investors search through patent applications and hunt for the next big consumer electronic craze, one trend has emerged under the radar. Industry demand is projected at double-digit growth over the next several years, with unit sales in the billions. Investors have completely missed the trend because it involves components hidden away inside the most popular tech gadgets. One company controls nearly two-thirds of the market for this hot tech trend and is doing what it takes to keep its lead through innovation. A Voice-Assist Future All of the major consumer electronics companies have a product push tied to voice-assist technology. Apple was one of the pioneers with Siri, but others have recently unveiled major innovations. Amazon’s (Nasdaq: AMZN) desktop speaker, Alexa, takes voice commands for everything from music to internet searches. Google’s (Nasdaq: GOOGL) Home can control the smoke alarm,… Read More

The holiday shopping season is coming, and soon attention will turn to the hot toys every child wants for Christmas.  Aside from being a retailer’s dream, these hot seasonal toys hold the potential to take the manufacturer’s shares skyward. Investors in LeapFrog Entertainment were thrilled in 2011 when the company’s LeapPad, one of the first digital mobile devices for kids, got huge sales leading into the holiday season. #-ad_banner-#One toy maker has already started to see shares surge this year on momentum in its turnaround plan, with cost savings of more than $153 million in 2015 alone.  The company also… Read More

The holiday shopping season is coming, and soon attention will turn to the hot toys every child wants for Christmas.  Aside from being a retailer’s dream, these hot seasonal toys hold the potential to take the manufacturer’s shares skyward. Investors in LeapFrog Entertainment were thrilled in 2011 when the company’s LeapPad, one of the first digital mobile devices for kids, got huge sales leading into the holiday season. #-ad_banner-#One toy maker has already started to see shares surge this year on momentum in its turnaround plan, with cost savings of more than $153 million in 2015 alone.  The company also just overhauled one of its biggest brands. The toy accounts for nearly 20% of total sales and has the potential to see big buying this holiday season. Investors may want to give themselves an early Christmas present before the company’s toys are sold out this holiday. Iconic Brands And Cost-Cutting Turn This Toy Maker Around Shares of Mattel Inc. (Nasdaq: MAT) had been recovering since September of last year, and jumped 14% on the company’s fourth quarter earnings in February. Management delivered $153 million in cost savings last year and stabilized sales as part of a multi-year turnaround.  The… Read More

Big pharma has some great long-term drivers, ranging from aging demographics to a growing middle-class around the world. Few products reach a level of importance as high as the drugs that keep us alive and healthy. It’s especially true as we get older, and that’s something happening to a record number of people these days. #-ad_banner-#Yet one more benefit of drug stocks is the counter-cyclical nature of sales. While people may skimp on everything from cars to tech when the economy turns sour, they aren’t going to stop taking their prescriptions.  In fact, my favorite pharma stock booked annualized growth… Read More

Big pharma has some great long-term drivers, ranging from aging demographics to a growing middle-class around the world. Few products reach a level of importance as high as the drugs that keep us alive and healthy. It’s especially true as we get older, and that’s something happening to a record number of people these days. #-ad_banner-#Yet one more benefit of drug stocks is the counter-cyclical nature of sales. While people may skimp on everything from cars to tech when the economy turns sour, they aren’t going to stop taking their prescriptions.  In fact, my favorite pharma stock booked annualized growth in sales of 11% over the three years through 2009. With a global economic outlook that’s looking pretty weak, that revenue resilience is a huge plus for investors. Looking at the industry, one company stood out for its pipeline of upcoming drugs and the potential for higher profits over the next few years. A Blockbuster Pipeline And Higher Profits Make This Leader My Top Pick Big pharma is all about the pipeline, and my top pick is no different. The company had a solid reputation for its R&D until a steep patent cliff in 2014 had investors worried. In… Read More

I’m sure it’s no shock to hear that stocks are expensive right now. But you might be surprised to find out just how expensive they are. Goldman Sachs (NYSE: GS) recently measured the market and found that the median stock trades in the 99th percentile of its historical valuation. Stocks are near historic highs on numerous valuation metrics, including price-to-earnings growth (PEG), enterprise-to-sales and forward price-to-earnings (P/E). You can argue that rock-bottom interest rates make stocks a “relatively” better investment than bonds and other asset types, but that argument sounds a little like every other excuse investors make… Read More

I’m sure it’s no shock to hear that stocks are expensive right now. But you might be surprised to find out just how expensive they are. Goldman Sachs (NYSE: GS) recently measured the market and found that the median stock trades in the 99th percentile of its historical valuation. Stocks are near historic highs on numerous valuation metrics, including price-to-earnings growth (PEG), enterprise-to-sales and forward price-to-earnings (P/E). You can argue that rock-bottom interest rates make stocks a “relatively” better investment than bonds and other asset types, but that argument sounds a little like every other excuse investors make at the height of a market bubble. #-ad_banner-# Investors with long time horizons can shift to cash and wait until the market rolls over, snapping up stocks at better valuations. Traders and shorter-term investors don’t have that luxury. They need to capitalize on weakness and hedge their long holdings. I’ve found a company that may be a perfect candidate for one of my favorite market-hedging strategies.  Insiders and an activist hedge fund are unloading millions of this company’s shares, which are trading at a 74% premium to the five-year average… Read More