It costs about five times as much to insure a Ferrari than a regular car. That’s partly because with top speeds above 200 mph, the probability of an accident is much higher in a Ferrari.#-ad_banner-#​ The options market is built on that same principle of risk versus reward — except instead of fast cars, it’s all about the VIX. Also known as the “fear index,” the VIX measures investors’ expectations for volatility in the S&P 500 Index in the next 30 days. When the VIX is high, the market is expecting lots of volatility — and for options… Read More

It costs about five times as much to insure a Ferrari than a regular car. That’s partly because with top speeds above 200 mph, the probability of an accident is much higher in a Ferrari.#-ad_banner-#​ The options market is built on that same principle of risk versus reward — except instead of fast cars, it’s all about the VIX. Also known as the “fear index,” the VIX measures investors’ expectations for volatility in the S&P 500 Index in the next 30 days. When the VIX is high, the market is expecting lots of volatility — and for options traders, there is nothing more important than the VIX. It is the single most important factor affecting options pricing.  With the Federal Reserve crushing expectations of weakness in the S&P 500, the VIX has been near record lows: That low reading on the VIX is both good and bad for put sellers. It’s good because it lowers the probability of being put shares. But it’s bad because it reduces the value of the premium I collect when selling a put. And with the VIX falling for the past few years, it has become less profitable to sell puts. … Read More

In most places, swallowing microchips and wearing sensors to monitor back posture wouldn’t be cool. But the annual International Consumer Electronics Show isn’t most places. #-ad_banner-#It’s more like an episode of “Star Trek” — fueled by a couple trillion dollars and 100,000 mad scientists. The annual Consumer Electronics Show in Las Vegas is the Super Bowl for the technology industry. As the hottest industry event of the year, CES is the place where tech’s biggest brands and boldest startups come to show off. That makes the event a window into the mind of the technology industry. And with… Read More

In most places, swallowing microchips and wearing sensors to monitor back posture wouldn’t be cool. But the annual International Consumer Electronics Show isn’t most places. #-ad_banner-#It’s more like an episode of “Star Trek” — fueled by a couple trillion dollars and 100,000 mad scientists. The annual Consumer Electronics Show in Las Vegas is the Super Bowl for the technology industry. As the hottest industry event of the year, CES is the place where tech’s biggest brands and boldest startups come to show off. That makes the event a window into the mind of the technology industry. And with all the hottest products and ideas on display, it’s also a great way to see where the tech industry is making its biggest investments. Some of the products at this year’s CES will be rock stars, and others will fail — but across the board, the biggest and best ideas coming out of tech all have one thing in common: the ability to send and receive data. Consumer and commercial devices are getting smarter. They are also becoming more connected to the Internet and increasingly networked with other devices.  That has led to huge increases in data consumption, particularly mobile. Read More

It’s a country that rarely gets any mention by the mainstream financial media. Sure, you hear about India, China, Russia, and Brazil. And for good reason — those countries are growing at incredible rates, which has made many investors rich already… and will make even more people wealthy in the years ahead. But for my money, I don’t know if there is a better place to invest than Chile. #-ad_banner-#It’s small — its total GDP is roughly $325.8 billion. That’s about 50 times smaller than the United States’ economy. Meanwhile, only 17.2 million people call Chile home… giving it a… Read More

It’s a country that rarely gets any mention by the mainstream financial media. Sure, you hear about India, China, Russia, and Brazil. And for good reason — those countries are growing at incredible rates, which has made many investors rich already… and will make even more people wealthy in the years ahead. But for my money, I don’t know if there is a better place to invest than Chile. #-ad_banner-#It’s small — its total GDP is roughly $325.8 billion. That’s about 50 times smaller than the United States’ economy. Meanwhile, only 17.2 million people call Chile home… giving it a smaller population than Florida. Right now, Chile’s economy is growing at a 4.7% annual rate — more than twice as fast the United States. That growth is accompanied by perhaps the most fiscally conservative government on the planet. National debt in the United States sits at 70% of GDP according to the CIA World Factbook. But Chile’s public debt totals just 12% of GDP. In fact, it is required by law to run a budget surplus unless there are extreme circumstances. In 2012, it ran a surplus of 0.5%. For comparison, the United States ran a deficit of nearly 7%… Read More

Despite the ongoing technological revolution in farming, Mother Nature has her limitations.  Nutrient-rich topsoil continues to erode, limited water resources remain depleted, and natural disasters continue to wreak havoc on production.#-ad_banner-# Compounding those issues, demand worldwide — particularly from emerging markets — is projected to increase drastically in the next few decades. The United Nations estimates that the global population will grow from 7.2 billion to 10 billion over the next 30 years. That growth will come mostly from emerging markets. The population in developed countries is expected to stay about the same at 1.3 billion, but the… Read More

Despite the ongoing technological revolution in farming, Mother Nature has her limitations.  Nutrient-rich topsoil continues to erode, limited water resources remain depleted, and natural disasters continue to wreak havoc on production.#-ad_banner-# Compounding those issues, demand worldwide — particularly from emerging markets — is projected to increase drastically in the next few decades. The United Nations estimates that the global population will grow from 7.2 billion to 10 billion over the next 30 years. That growth will come mostly from emerging markets. The population in developed countries is expected to stay about the same at 1.3 billion, but the combined population of the 49 least-developed countries is expected to double, to 2 billion.  That sets the stage for the emergence of a 3 billion-person global middle class that is going to need a lot of food. The U.N.’s Food and Agriculture Organization (FAO) projects food production will have to increase almost 70% in the next 30 years just to keep pace with demand. The Best Way To Cash In On A Global Food Crisis But investing in food companies is a terrible way to invest in the growing demand for food. That’s because rising prices at the grocery… Read More

I’ve said it at least a hundred times, and I’ll say it at least a hundred more… the vast majority of the world’s best high-yield stocks are NOT based in the United States… Don’t believe me? Consider this… Of the 118 companies that pay dividend yields of more than 12%, only 25 of them are based in the U.S. Although the number fluctuates daily, that means roughly 79% of the world’s highest yields are found outside the United States. #-ad_banner-#Unfortunately, most investors don’t consider foreign stocks when they’re looking for dividend investments. They automatically dismiss other countries as “risky” and… Read More

I’ve said it at least a hundred times, and I’ll say it at least a hundred more… the vast majority of the world’s best high-yield stocks are NOT based in the United States… Don’t believe me? Consider this… Of the 118 companies that pay dividend yields of more than 12%, only 25 of them are based in the U.S. Although the number fluctuates daily, that means roughly 79% of the world’s highest yields are found outside the United States. #-ad_banner-#Unfortunately, most investors don’t consider foreign stocks when they’re looking for dividend investments. They automatically dismiss other countries as “risky” and “unproven.” That’s a mistake. Just because a company is located outside the U.S., it doesn’t mean it’s risky. In fact, sometimes investing in foreign countries can actually be safer than investing here at home. Let’s face it, the past 14 years haven’t been kind to American equities. From the start of the millennium to December 31, 2013, the S&P 500 returned just 64%, including dividends. That’s equivalent to a pathetic 3.6% annualized return — barely enough to keep pace with inflation. Meanwhile, problems in Washington are only making matters worse. A ballooning national debt, the “fiscal cliff,” and billions of… Read More

Wicked winter weather has been rocking the entire country. According to the National Weather Service, the Northeast and Midwest have been experiencing “life-threatening” wind chill, with temperatures hitting multi-decade lows.#-ad_banner-# But while these extreme conditions have led to school closures, government shutdowns and massive traffic jams, they’ve also supported one of my favorite long-term investments. With the country suffering through a deep freeze, demand for natural gas has been surging. The United States Natural Gas (NYSE: UNG) exchange-traded fund is up 17% in the past three months and back within striking distance of the 52-week high just above $24. That… Read More

Wicked winter weather has been rocking the entire country. According to the National Weather Service, the Northeast and Midwest have been experiencing “life-threatening” wind chill, with temperatures hitting multi-decade lows.#-ad_banner-# But while these extreme conditions have led to school closures, government shutdowns and massive traffic jams, they’ve also supported one of my favorite long-term investments. With the country suffering through a deep freeze, demand for natural gas has been surging. The United States Natural Gas (NYSE: UNG) exchange-traded fund is up 17% in the past three months and back within striking distance of the 52-week high just above $24. That strong finish helped natural gas gain 32% in 2013, making it the year’s top-performing commodity. Cold weather has been a great short-term catalyst for natural gas. But the long-term outlook is even better: The natural gas boom is expected to last for decades. According to the U.S. Energy Information Administration, natural gas is on pace to become the country’s leading source of energy by the end of the decade. Source: U.S. Energy Information Administration That bullish trend is great news for energy investors operating ahead of the curve. But with that growth potential comes volatility. Energy… Read More

There are about a thousand of them listed on the U.S. exchanges. They track everything from the S&P 500… to gold… to Treasury bonds… and much more. They are basically nothing more than portfolios of stocks, bonds or commodities that trade on the major exchanges as a single security. But underneath a placid exterior, one of America’s fastest-growing asset classes reached a key milestone just two years ago: Total assets invested in U.S. exchange-traded funds (ETFs) surpassed $1 trillion for the first time. #-ad_banner-#That represents the culmination of a remarkable episode of growth. The first U.S.-traded ETF was launched on… Read More

There are about a thousand of them listed on the U.S. exchanges. They track everything from the S&P 500… to gold… to Treasury bonds… and much more. They are basically nothing more than portfolios of stocks, bonds or commodities that trade on the major exchanges as a single security. But underneath a placid exterior, one of America’s fastest-growing asset classes reached a key milestone just two years ago: Total assets invested in U.S. exchange-traded funds (ETFs) surpassed $1 trillion for the first time. #-ad_banner-#That represents the culmination of a remarkable episode of growth. The first U.S.-traded ETF was launched on January 29, 1993 — so it took fewer than 19 years for the ETF industry to crack the $1 trillion barrier. To put that in perspective, it took the mutual fund industry (first launched in 1924) 66 years to surpass $1 trillion in assets. Assets invested in ETFs grew at a 31% annualized pace from 2000 to 2011 compared to just 6% annual growth for mutual funds. And alongside the growth of ETFs is the growth in closed-end funds (CEFs). The differences between CEFs and ETFs are small — both allow you to buy into a basket of securities with… Read More

I think it’s one of the market’s biggest missed opportunities. Every day, millions of U.S. investors are missing out on the world’s highest-yielding securities. That’s because the vast majority of the world’s highest-yields aren’t found in the United States. #-ad_banner-#As the Chief Strategist of High-Yield International, my job is to scour the globe for the world’s highest yielding stocks, funds and ETFs. And at last count, my research shows that over 79% of the world’s highest-yielding stocks are based in international markets. (You can read more of my research about these stocks here.) That includes companies like global shipping giant… Read More

I think it’s one of the market’s biggest missed opportunities. Every day, millions of U.S. investors are missing out on the world’s highest-yielding securities. That’s because the vast majority of the world’s highest-yields aren’t found in the United States. #-ad_banner-#As the Chief Strategist of High-Yield International, my job is to scour the globe for the world’s highest yielding stocks, funds and ETFs. And at last count, my research shows that over 79% of the world’s highest-yielding stocks are based in international markets. (You can read more of my research about these stocks here.) That includes companies like global shipping giant Navios Maritime Partners (NYSE: NMM), which yields 9.3%. And Bermuda-based outfits like SeaDrill (NYSE: SDRL), which pays an impressive 7.9%. If you’re like most people, then you’ll probably never take advantage of foreign stocks like these. That’s a shame, because the average stock in the United Kingdom yields 3.8%… Brazil’s average yield is 4.4%… Australia yields 4.3%… and New Zealand pays 4.5%. By contrast, stocks here at home yield a paltry 2%, on average. Most U.S. investors dismiss the idea of investing abroad. They tend to think other countries are “riskier” than the United States. But that’s not always the… Read More

Let’s be honest. When you hear about a stock that yields 12% or more, your first thought should be that the company is probably a basket case that can’t even turn a profit. If it’s offering a yield that sounds too good to be true, it probably is. #-ad_banner-#And you’d be right most of the time. Usually, yields are this high because a company’s share price is falling — signaling underlying problems in its business. A lower share price gives a higher dividend yield. That means profitable companies paying yields this high should be rare. In fact, my staff and… Read More

Let’s be honest. When you hear about a stock that yields 12% or more, your first thought should be that the company is probably a basket case that can’t even turn a profit. If it’s offering a yield that sounds too good to be true, it probably is. #-ad_banner-#And you’d be right most of the time. Usually, yields are this high because a company’s share price is falling — signaling underlying problems in its business. A lower share price gives a higher dividend yield. That means profitable companies paying yields this high should be rare. In fact, my staff and I recently ran the numbers. When we looked only at the companies that turned a profit over the past year, we found just 25 U.S. common stocks paying yields of more than 12%.  Here, you can see the 10 highest yields for yourself:   Ticker Company Yield CXW Corrections Corp. 24.2% MFA MFA Financial 22.7% ARR ARMOUR Residential 22.3% AGNC American Capital 21.9% ISSC Innovative Solutions 20.4% AMTG Apollo Residential 19.2% GNI Great Northern Iron Ore 17.2% EFC Ellington Financial 16.8% IVR… Read More

The Federal Reserve is trapped and bluffing.#-ad_banner-# While the market worries about the Fed reducing the size of its monthly bond purchases, I predict the exact opposite will continue to happen for at least through next December after the midterm elections. The most powerful central bank in the world will actually increase spending. And because of that, two companies in one forgotten sector could see triple-digit gains in coming months, and they’re already sporting rare yields as high as 7.1%. I’ll share specific details on these investments in a moment. First, here’s why I think the Fed is… Read More

The Federal Reserve is trapped and bluffing.#-ad_banner-# While the market worries about the Fed reducing the size of its monthly bond purchases, I predict the exact opposite will continue to happen for at least through next December after the midterm elections. The most powerful central bank in the world will actually increase spending. And because of that, two companies in one forgotten sector could see triple-digit gains in coming months, and they’re already sporting rare yields as high as 7.1%. I’ll share specific details on these investments in a moment. First, here’s why I think the Fed is trapped and bluffing: As the Fed continues to threaten the market with its stated desire to taper, global economic growth projections continue to decline. Just last week, the Organization for Economic Cooperation and Development (OECD) downgraded its global growth projection for 2014 from 3.1% to 2.7%. It raises the question: If the Fed was unable to pull the trigger on a taper when the global economy was projected to grow 3.1%, how is it going to taper now that the global economy is showing signs of weakness? The answer is, it can’t. The Fed has to keep the money spigot… Read More