I knew it couldn’t last forever. From April 24 through May 8, the S&P 500 went 10 straight trading sessions going no lower than 2,379 and no higher than 2,401. That’s an ultra-narrow band of just 22 points.  So in two full weeks, the index didn’t fluctuate up or down by so much as 1%. According to Factset Research, this has only happened 10 times in the past four decades.  But there are no guarantees in the investment world, and I knew volatility would return. Without a doubt, I knew we’d eventually see one of those crazy days where the… Read More

I knew it couldn’t last forever. From April 24 through May 8, the S&P 500 went 10 straight trading sessions going no lower than 2,379 and no higher than 2,401. That’s an ultra-narrow band of just 22 points.  So in two full weeks, the index didn’t fluctuate up or down by so much as 1%. According to Factset Research, this has only happened 10 times in the past four decades.  But there are no guarantees in the investment world, and I knew volatility would return. Without a doubt, I knew we’d eventually see one of those crazy days where the Dow Jones Industrial Average swings up or down by a few hundred points.  That day was this past Wednesday, May 17. Both the Dow and S&P 500 lost 1.8%, their worst losses since September 2016. The news had every investor checking the financial sites to see how high (or low) our portfolio holdings were trading.  But we don’t have to resign ourselves to living with this type of volatility. Stay Out Of “Sensitive” Stocks You’ve probably noticed that on “up” days when most stocks are in the green, some holdings always seem to ride a little bit higher than… Read More

A few years ago, I had the opportunity to visit the palatial Biltmore Estate in Asheville, North Carolina. Built near the turn of the century to rival the grandest European manors, this stately five-story mansion is the nation’s largest private residence. Commissioned by George Vanderbilt during the Gilded Age, the Biltmore was an open display of opulence and wealth. At a time when many homes lacked basic electricity and indoor plumbing, this one featured an elevator, gymnasium, library, pipe organ, billiards room, heated swimming pool, bowling alley and walk-in refrigerator. The Biltmore Estate in Asheville, North Carolina… Read More

A few years ago, I had the opportunity to visit the palatial Biltmore Estate in Asheville, North Carolina. Built near the turn of the century to rival the grandest European manors, this stately five-story mansion is the nation’s largest private residence. Commissioned by George Vanderbilt during the Gilded Age, the Biltmore was an open display of opulence and wealth. At a time when many homes lacked basic electricity and indoor plumbing, this one featured an elevator, gymnasium, library, pipe organ, billiards room, heated swimming pool, bowling alley and walk-in refrigerator. The Biltmore Estate in Asheville, North Carolina The impeccable grounds outside were equally impressive. The country chateau was located in the scenic Blue Ridge Mountains, surrounded by acres of lush flower gardens, vineyards and tree-lined pathways. Two generations earlier, George’s grandfather, Cornelius Vanderbilt, took control of the New York Central Railroad, the Michigan Southern Railway and several other lines, eventually building an empire worth $143 billion in today’s dollars — making him the second-richest man in history. That was a different era, of course. Railroads seem quaint these days next to driverless cars and other 21st century technologies. But don’t be fooled. They remain the cheapest way… Read More

We cover a lot of different topics in my premium income newsletter, High-Yield Investing. One thing I make a point to feature in each issue is a detailed screen of some sort for interesting income opportunities. Sometimes I run straightforward, simple screens, like last month’s search for low-cost, high-yield equity income funds. Other months we might track down potential short squeeze candidates, talk about ways to combat inflation or hunt for highly efficient businesses that generate the most revenue per employee. This month, I wanted to get back to basics and pinpoint a few stocks that are poised for meaningful… Read More

We cover a lot of different topics in my premium income newsletter, High-Yield Investing. One thing I make a point to feature in each issue is a detailed screen of some sort for interesting income opportunities. Sometimes I run straightforward, simple screens, like last month’s search for low-cost, high-yield equity income funds. Other months we might track down potential short squeeze candidates, talk about ways to combat inflation or hunt for highly efficient businesses that generate the most revenue per employee. This month, I wanted to get back to basics and pinpoint a few stocks that are poised for meaningful dividend hikes in the near future. According to FactSet Research, dividend distributions among S&P 500 companies have increased for 11 straight quarters. Over the past year, aggregate payments are up 4.8% to $431 billion. That’s the good news. The bad news is that many companies have reached the upper limits of what they can afford to distribute relative to current profits. #-ad_banner-#In fact, 44 members of the S&P (almost 10%) have unsustainable payout ratios above 100%, meaning they aren’t earning enough to cover their dividend payments. Many of these companies may have trouble maintaining their current… Read More

There are two young co-workers, Mark and Lizzy, who are both serious about setting aside money for the future. After doing some research, Lizzy finds a reputable blue-chip dividend mutual fund and decides to open with a modest $1,000 investment. After that, she contributes $100 from every bi-weekly paycheck. She doesn’t see much accumulation at first. But over time, her account value starts to build. After 25 years at an average compounded annual return of 8.0% after expenses, Lizzy would be sitting on a nice sum of $204,722. #-ad_banner-#Meanwhile, across the office, Mark finds a similar equity income fund and… Read More

There are two young co-workers, Mark and Lizzy, who are both serious about setting aside money for the future. After doing some research, Lizzy finds a reputable blue-chip dividend mutual fund and decides to open with a modest $1,000 investment. After that, she contributes $100 from every bi-weekly paycheck. She doesn’t see much accumulation at first. But over time, her account value starts to build. After 25 years at an average compounded annual return of 8.0% after expenses, Lizzy would be sitting on a nice sum of $204,722. #-ad_banner-#Meanwhile, across the office, Mark finds a similar equity income fund and invests the same amount. His fund delivers an identical annual return, with one difference. It carries an extra 50 basis points (one-half of one percent) in additional yearly fees and expenses. Because of that extra drag, Mark’s account grows to just $189,644 over the same time frame — a difference of more than $15,000. For the sake of illustration, let’s suppose we start with a $10,000 upfront investment and assume a stronger annual return of 9%. Under that scenario, the two accounts would grow to around $316,000 and $290,000, respectively — a difference of $26,000. And keep in mind, that… Read More

Editor’s Note: Today we’d like to feature a guest column from Nathan Slaughter, Chief Stock Market Strategist for Scarcity & Real Wealth, StreetAuthority’s premium newsletter that seeks to profit from the producers and processors of the rarest and most valuable assets on the planet — precious metals, energy and other natural resources. In this column, Nathan addresses what’s become something of a buzzword again this year: Infrastructure. As Nathan points out in the article that follows, President Trump has pledged to rebuild outdated infrastructure on a scale not seen since Dwight Eisenhower proposed the national interstate highway system in the… Read More

Editor’s Note: Today we’d like to feature a guest column from Nathan Slaughter, Chief Stock Market Strategist for Scarcity & Real Wealth, StreetAuthority’s premium newsletter that seeks to profit from the producers and processors of the rarest and most valuable assets on the planet — precious metals, energy and other natural resources. In this column, Nathan addresses what’s become something of a buzzword again this year: Infrastructure. As Nathan points out in the article that follows, President Trump has pledged to rebuild outdated infrastructure on a scale not seen since Dwight Eisenhower proposed the national interstate highway system in the 1950s. If Trump and his allies have their way, it could lead to as much as $1 trillion in infrastructure-related spending over the next 10 years. That’s a lot of cement (and other resources and services), but it’s just icing on the cake when it comes to the appeal these companies hold for investors. So… Which companies are likely to profit the most? Here’s Nathan’s take on some of the opportunities for investors — and it’s actually a prelude to his next issue, which is due out in a couple weeks. If you’re interested in learning more about Scarcity &… Read More

If you’re like me, then you have probably entered your investments into a portfolio tracking service for easy monitoring. Instead of manually typing individual ticker symbols day after day for stock quotes, you can enter them once. After that, it just takes a click of the mouse to instantly see how all of your holdings are performing on one screen. It’s a real time saver. And many financial sites like Morningstar and Yahoo Finance offer this service for free. #-ad_banner-#Before long, you’ll notice that on up days when most stocks are in the green, some holdings always seem to ride… Read More

If you’re like me, then you have probably entered your investments into a portfolio tracking service for easy monitoring. Instead of manually typing individual ticker symbols day after day for stock quotes, you can enter them once. After that, it just takes a click of the mouse to instantly see how all of your holdings are performing on one screen. It’s a real time saver. And many financial sites like Morningstar and Yahoo Finance offer this service for free. #-ad_banner-#Before long, you’ll notice that on up days when most stocks are in the green, some holdings always seem to ride a little bit higher than others. If most stocks in the group are up 1% to 2%, these outliers might gain 3%. The opposite is true on down days. When most stocks are in the red by 1% to 2%, these typically get hit harder and might drop 3%. I’m not talking about an isolated good (or bad) day triggered by company-specific news, but simply the stock’s general sensitivity to market fluctuations over a period of months or years. There is a way to measure this sensitivity. It’s called beta, and it measures the degree to which a security rises… Read More

This past December was an interesting time in the United States, with everyone gearing up for the holidays but keeping an eye on the news to see what crazy thing would happen next… #-ad_banner-#But amid the year-end flurry many missed some great news: The consumer sentiment index hit its highest… Read More

You didn’t hear about it on any nightly broadcasts. It wasn’t covered in newspaper headlines. Even on dedicated financial websites, there was barely a passing mention. But last week, the Financial Times Stock Exchange (FTSE) 100 Index quietly ventured into record-high territory. The FTSE tracks the performance of the 100… Read More

Since last June, I’ve sold nine portfolio holdings in my premium income newsletter, High-Yield Investing. All nine were for positive gains, between 2.1% and 74.1%. But I didn’t sell any of these stocks because I expected them to decline. Rather, most had lived up to their short-term potential and the time had come to cash out gains and look elsewhere for candidates with stronger upside. But there are investors who do actively bet against certain stocks by selling them short. In the simplest terms, this involves borrowing the shares and immediately selling them. A few weeks or months later, the… Read More

Since last June, I’ve sold nine portfolio holdings in my premium income newsletter, High-Yield Investing. All nine were for positive gains, between 2.1% and 74.1%. But I didn’t sell any of these stocks because I expected them to decline. Rather, most had lived up to their short-term potential and the time had come to cash out gains and look elsewhere for candidates with stronger upside. But there are investors who do actively bet against certain stocks by selling them short. In the simplest terms, this involves borrowing the shares and immediately selling them. A few weeks or months later, the shares are repurchased (ideally at a lower price) and returned to the original owner, with the trader keeping the difference. It’s “buy low and sell high” in reverse order. It’s a risky strategy. If you buy a stock at $10, the most you can lose is $10. And that’s only if it winds up completely worthless. But if you sell short at $10, the stock can rise to $20, or $30, or more. The more it rises, the more you lose. So in theory, the potential risk is unlimited (although in practice traders take steps to cap their losses). That’s… Read More

When it comes to international exposure, investors have literally thousands of mutual funds, closed-end funds, and exchange-traded funds to choose from. European small-cap stocks, Latin American dividend stocks, Asian government bonds — you name it. Vanguard alone offers 19 different equity funds with either global or purely foreign portfolios. But investing in individual securities is a different matter entirely. While the introduction of online trading platforms has facilitated the buying and selling of foreign stocks, it’s still an onerous process. Many brokers can’t help you buy shares of a company trading on the Toronto Stock Exchange, for example — and… Read More

When it comes to international exposure, investors have literally thousands of mutual funds, closed-end funds, and exchange-traded funds to choose from. European small-cap stocks, Latin American dividend stocks, Asian government bonds — you name it. Vanguard alone offers 19 different equity funds with either global or purely foreign portfolios. But investing in individual securities is a different matter entirely. While the introduction of online trading platforms has facilitated the buying and selling of foreign stocks, it’s still an onerous process. Many brokers can’t help you buy shares of a company trading on the Toronto Stock Exchange, for example — and Canada is a relatively accessible market. Want to buy or sell a stock on exchanges in Copenhagen, Stockholm, Brussels or Tokyo? You’ll have to submit specific paperwork and pay substantially higher brokerage commissions. There will also be foreign currency exchange fees if you choose to settle positions in U.S. dollars, as well as foreign tax withholding in some countries. Heck, even getting a ticker symbol and price quote can be tricky. —Recommended Link— The Government Can’t Hide This Forever There’s a secret way to increase your portfolio exponentially. A former secretary used it to turn $200 into $7 million. Read More