Options, Futures & Derivatives

Earnings season is virtually over, and with 99% of the companies in the S&P 500 reporting, results are a little better than expected. About two-thirds of companies beat analysts’ expectations, in line with the long-term average rate. Earnings per share (EPS) came in about 4.9% higher than they were a year ago, the first time we’ve seen year-over-year growth in earnings for two consecutive quarters in two years. It seems as if the earnings outlook should be bullish for the stock market based on the growth in EPS, but many analysts are warning that the market is overvalued. Such warnings… Read More

Earnings season is virtually over, and with 99% of the companies in the S&P 500 reporting, results are a little better than expected. About two-thirds of companies beat analysts’ expectations, in line with the long-term average rate. Earnings per share (EPS) came in about 4.9% higher than they were a year ago, the first time we’ve seen year-over-year growth in earnings for two consecutive quarters in two years. It seems as if the earnings outlook should be bullish for the stock market based on the growth in EPS, but many analysts are warning that the market is overvalued. Such warnings are often based on charts like the one below, which shows the price-to-earnings (P/E) ratio is higher than average. This chart looks back at the past 10 years. Interestingly, to me, the P/E ratio reached its high in the first quarter of 2010, as the stock market was bottoming. Bears were arguing the market was overvalued when it was at the beginning of what would prove to be an extended bull market. #-ad_banner-#You could argue that the recession was an extraordinary time for the economy and no one could forecast what would happen next. The president, Congress, the… Read More

As 2017 rushes forward, I’m seeing confirmation of my market outlook from the beginning of this year. In the past week, it’s become clear that Warren Buffett now agrees with my assessment of airline stocks. I’ll admit I was nervous as I dove into the sector… Read More

Elections have consequences, and one of the most surprising consequences of November’s election has been the sharp increase in economic optimism. This can be seen in surveys of investors or business owners. The general mood of the nation is captured by Gallup, which published a number of surveys. Their Economic Confidence Index shows some recent weakness, but is up sharply since the election. Digging deeper, we see that there is a sharp divide based on political affiliation but, on average, Americans seem happier today than they were in early November. The same is true of small businesses, according… Read More

Elections have consequences, and one of the most surprising consequences of November’s election has been the sharp increase in economic optimism. This can be seen in surveys of investors or business owners. The general mood of the nation is captured by Gallup, which published a number of surveys. Their Economic Confidence Index shows some recent weakness, but is up sharply since the election. Digging deeper, we see that there is a sharp divide based on political affiliation but, on average, Americans seem happier today than they were in early November. The same is true of small businesses, according to the National Federation of Independent Business (NFIB) Small Business Optimism Index. NFIB notes that “the stunning improvements in the Index components that occurred after post-election were improved in December and confirmed in January.” These improvements should lead to higher business spending and more jobs. If we see that, economic growth this year will begin to outperform 2016’s. Surveys are important, but economic growth will result only if spending follows the optimism. We should know by the middle of the year whether that’s the case. I’ll be watching economic data to see whether business and consumer spending rise… Read More

The president is surrounded by a host of unsavory characters, and concerns begin to brew that businesses are using the office for personal profits. Talk of impeachment begins, largely along party lines, with the opposition growing increasingly vocal. Large public protests are mostly peaceful, but the occasional act of violence generates publicity. This is the news out of South Korea. That’s right — the United States isn’t the only country with sharp political divisions. In fact, that’s the situation in many countries around the world right now. South Korea may just be further along the path of turmoil and could… Read More

The president is surrounded by a host of unsavory characters, and concerns begin to brew that businesses are using the office for personal profits. Talk of impeachment begins, largely along party lines, with the opposition growing increasingly vocal. Large public protests are mostly peaceful, but the occasional act of violence generates publicity. This is the news out of South Korea. That’s right — the United States isn’t the only country with sharp political divisions. In fact, that’s the situation in many countries around the world right now. South Korea may just be further along the path of turmoil and could offer some lessons for investors in countries that are just starting the journey toward regular chaos. —Recommended Link— This President’s Day, Get An Entire Year Of Maximum Profit — 60% Off In honor of President’s Day, we’re offering our most popular (AND most profitable) investment research service to date. It’s so precise at picking winners we call it Maximum Profit. Save 60% on a one-year subscription by using it risk-free for 90 days. But you must hurry… this offer closes for good on Thursday  at 11:59 pm. The political saga is highlighted in the chart below. The iShares MSCI… Read More

Dramatic headlines, mostly related to our new president, have driven the market’s erratic undulations since Election Day. From my perspective, many investors are reading the headlines and reacting immediately to hyperbole without understanding the details. Making matters worse is social media’s amplification of this hyperbole into viral movements that further distort the truth. As frustrating as it seems, these factors create opportunity when opinion strays too far from fact. One area where I see massive distortion is in the headlines surrounding Trump’s proposed border wall, the methods in which he intends on paying for it and how it all will… Read More

Dramatic headlines, mostly related to our new president, have driven the market’s erratic undulations since Election Day. From my perspective, many investors are reading the headlines and reacting immediately to hyperbole without understanding the details. Making matters worse is social media’s amplification of this hyperbole into viral movements that further distort the truth. As frustrating as it seems, these factors create opportunity when opinion strays too far from fact. One area where I see massive distortion is in the headlines surrounding Trump’s proposed border wall, the methods in which he intends on paying for it and how it all will affect American companies and consumers. The topic has sparked tremendous opportunity as sheep-like investors flock to companies they think are the obvious beneficiaries and flee the apparent donors of potential legislation. The problem is that they’ve got the story all wrong… And my subscribers and I at Profit Amplifier have a plan to profit from this confusion. —Sponsored Link— Motley Fool Issues Rare Triple-Buy Alert His triple recommendations are averaging an astounding 1,024% gain each. Learn more now. Border Tax Rumblings If you haven’t been keeping… Read More

In the fall of 2016, I warned readers of my premium advisory, Profit Amplifier, of continued weakness in China and the subsequent fallout in its fragile stock market. The Chinese market is ruled by twitchy individual investors. By late December, the iShares China Large-Cap ETF (NYSE: FXI) had fallen 12% to a key retracement level around $34. But the New Year has brought buyers back into the Asian markets and back to FXI. Shares have rallied nearly 8% from their recent lows, likely due to a massive short squeeze (which I will detail later). Yet despite… Read More

In the fall of 2016, I warned readers of my premium advisory, Profit Amplifier, of continued weakness in China and the subsequent fallout in its fragile stock market. The Chinese market is ruled by twitchy individual investors. By late December, the iShares China Large-Cap ETF (NYSE: FXI) had fallen 12% to a key retracement level around $34. But the New Year has brought buyers back into the Asian markets and back to FXI. Shares have rallied nearly 8% from their recent lows, likely due to a massive short squeeze (which I will detail later). Yet despite the apparent bullishness, there have been no fundamental improvements. In fact, I’m seeing quite the opposite. China is a conundrum because deception reigns supreme. This is a country where a major construction company that defaulted on its bonds has delayed releasing its earnings for more than two years. It would be like Enron “hiding” its balance sheet manipulation for 26 months while it continued to scam the public. —Recommended Link— Big Kahuna Profits In Energy Storage Tesla CEO Elon Musk is building a large battery farm in Hawaii to store energy from island sunshine. It’s just his latest move… Read More

With the market seemingly making new all-time highs week after week, I don’t have to tell you that the available “discounts” on quality companies are few and far between. So, I’d like to dust off one of our favorite strategies for dealing with a pullback: getting paid to buy stocks at a discount. This is the strategy that one of our experts, Amber Hestla, has been successfully using in her premium newsletter, Income Trader. —Sponsored Link— The World’s ‘Safest’ Investment Is About To CRASH The one investment you may hold dear… Read More

With the market seemingly making new all-time highs week after week, I don’t have to tell you that the available “discounts” on quality companies are few and far between. So, I’d like to dust off one of our favorite strategies for dealing with a pullback: getting paid to buy stocks at a discount. This is the strategy that one of our experts, Amber Hestla, has been successfully using in her premium newsletter, Income Trader. —Sponsored Link— The World’s ‘Safest’ Investment Is About To CRASH The one investment you may hold dear to your heart, that helps you sleep better at night, that you rely on for safety, security, and maybe even profits in a world gone mad, is about to get slaughtered. When it happens, trillions in wealth will be wiped out virtually overnight! To find out exactly what this investment is, click here. For those who are unfamiliar, you can in effect get paid for the chance to buy stocks at a discount by utilizing a conservative strategy that involves selling put options contracts. Here’s how it works… Let’s say you really want to buy Netflix… Read More

While 2016 may have been the year for the FANG stocks, (Facebook, Amazon, Netflix and Google), a new year and new president mean there’s now a new group to focus on. According to researcher Tom Lee over at Fundstrat Global Advisors, 2017 is going to be the year of CRAP stocks. Although the term conjures a gross image, Lee and his team may actually be on to something in their latest research. Unlike the specific stocks called out in FANG, CRAP stocks are sector-oriented. The term stands for computers, resources, American banks and phone carriers. While I agree with his… Read More

While 2016 may have been the year for the FANG stocks, (Facebook, Amazon, Netflix and Google), a new year and new president mean there’s now a new group to focus on. According to researcher Tom Lee over at Fundstrat Global Advisors, 2017 is going to be the year of CRAP stocks. Although the term conjures a gross image, Lee and his team may actually be on to something in their latest research. Unlike the specific stocks called out in FANG, CRAP stocks are sector-oriented. The term stands for computers, resources, American banks and phone carriers. While I agree with his bullish logic on these sectors, it’s the American banking system that interests me most, and that’s where I’ve selected as the next target for my Profit Amplifier readers and I to trade. Unlike the other sectors, banking stocks can win in several different scenarios, where the others will most likely need a consumer or economic boom to succeed. If all the Trump rally hype turns out to be true, then banks are sure to benefit as consumers spend and borrow more. But even without a full-blown, Trump-fueled economic turnaround, there are still two very strong catalysts… Read More

If you’re frustrated with the low yields this market has to offer, you’re not alone. Finding dependable yields over 4%, much less double-digit yields, is nearly impossible in the current market environment. For instance, the S&P 500 throws off a yield of just 2.1%. Even after the December hike, bonds are barely beating inflation, and the yields on blue-chip stocks are pathetic. This had led some investors to “reach for yield,” i.e., buy risky stocks with higher payouts. More often than not, this strategy leads to big losses. To make matters worse, stocks are trading near all-time highs and carry… Read More

If you’re frustrated with the low yields this market has to offer, you’re not alone. Finding dependable yields over 4%, much less double-digit yields, is nearly impossible in the current market environment. For instance, the S&P 500 throws off a yield of just 2.1%. Even after the December hike, bonds are barely beating inflation, and the yields on blue-chip stocks are pathetic. This had led some investors to “reach for yield,” i.e., buy risky stocks with higher payouts. More often than not, this strategy leads to big losses. To make matters worse, stocks are trading near all-time highs and carry lofty valuations. This makes owning them a riskier proposition than usual. For conservative income investors in particular, this is an incredibly tough market to navigate. Fortunately, there is still a way to generate more income than you ever thought possible from the safest stocks out there. —Recommended Link— You May Not Like Hearing This… Everyone knows that Social Security is in bad shape. But most people don’t realize just how desperate the situation is… to fix Social Security benefits have to be cut by 22% immediately. Or payroll taxes have to jump by 32%. So you’re facing pain whether… Read More

If you’re anything like me, you’re glad the holidays are over. Don’t get me wrong, taking a break from work and spending quality time with family is a good and necessary thing. But now it’s time to get back to business. Time to look forward. Time to plan for 2017 and beyond and navigate the challenges the market will likely bring. With this in mind, I recently came across an interesting trade that my colleague Jared Levy, Chief Investment Strategist of Profit Amplifier, shared with his readers… —Sponsored Link— BKIT Could Give… Read More

If you’re anything like me, you’re glad the holidays are over. Don’t get me wrong, taking a break from work and spending quality time with family is a good and necessary thing. But now it’s time to get back to business. Time to look forward. Time to plan for 2017 and beyond and navigate the challenges the market will likely bring. With this in mind, I recently came across an interesting trade that my colleague Jared Levy, Chief Investment Strategist of Profit Amplifier, shared with his readers… —Sponsored Link— BKIT Could Give You 200% Gains BEFORE February 1, 2017 With what could be the biggest breakthrough their industry has ever seen, little-known BKIT could have just supplanted the current king of sleep therapies, Ambien. Act now and you could see a fast 200% by February 1! See the proof HERE. Our Expert Is Starting The New Year With A Familiar Trade If you’ve been trading stocks for a while, then it’s very likely that you’ve developed certain “go-to” trades. These are the trades that, for some reason or other, you keep coming back to because they’re… Read More