As we all know, the goal of trading is to make money. But sometimes traders think like analysts, and being right about a market’s direction overshadows the primary directive — making money. So when the stock market gives us fits and starts, and crosscurrents like emerging markets and the Federal Reserve make equities treacherous, it makes sense to look for other opportunities.#-ad_banner-# As they say, there is always a bull market somewhere, and right now, it looks as if the Japanese yen is in the early stages of one. And for those who cannot or prefer not to… Read More

As we all know, the goal of trading is to make money. But sometimes traders think like analysts, and being right about a market’s direction overshadows the primary directive — making money. So when the stock market gives us fits and starts, and crosscurrents like emerging markets and the Federal Reserve make equities treacherous, it makes sense to look for other opportunities.#-ad_banner-# As they say, there is always a bull market somewhere, and right now, it looks as if the Japanese yen is in the early stages of one. And for those who cannot or prefer not to trade spot currencies or futures, the CurrencyShares Japanese Yen Trust (NYSE: FXY) provides a liquid way to play. I will leave the fundamentals of the Japanese economy to others to analyze. From a charting point of view, there is plenty to like, and given the yen’s status as a safe-haven currency, the turmoil in emerging markets and volatility domestically add additional luster. The analysis is rather simple. After a two-year bear market in which FXY fell from $130 to a low of $92.75 at the end of last year, technical indicators are looking up. For example, on the weekly chart,… Read More

What do Coca-Cola (NYSE: KO), Campbell’s Soup (NYSE: CPB) and Deere & Co. (NYSE: DE) all have in common? In short, they’ve all survived some of the biggest economic catastrophes the world has ever seen. While thousands of business have come and gone since the early 1900s, these companies have managed to prosper through more than a century of political and economic turbulence. So what’s allowed these companies to continually generate shareholder wealth despite two world wars, the Great Depression, and countless bear markets and recessions? It’s simple: They all belong to a select group of investments that we like… Read More

What do Coca-Cola (NYSE: KO), Campbell’s Soup (NYSE: CPB) and Deere & Co. (NYSE: DE) all have in common? In short, they’ve all survived some of the biggest economic catastrophes the world has ever seen. While thousands of business have come and gone since the early 1900s, these companies have managed to prosper through more than a century of political and economic turbulence. So what’s allowed these companies to continually generate shareholder wealth despite two world wars, the Great Depression, and countless bear markets and recessions? It’s simple: They all belong to a select group of investments that we like to call “Legacy Assets.” #-ad_banner-#For those of you aren’t familiar, “Legacy Assets” is a distinction my colleague David Forest has reserved for companies that have rewarded shareholders for generations. Not only do these companies often sport durable brand names and impenetrable economic moats, their strong competitive advantages have led them to consistently outperform the market for decades. But it’s not just the companies themselves that have stood the test of time. The products they make have remained virtually unchanged. In some cases, the same products have been generating wealth for more than 200 years. While tech companies like Apple and… Read More

Whether this industry’s products are in a mansion owned by the wealthiest 1% or a poverty-stricken housing project, it plays an unmistakable role in nearly every family.#-ad_banner-#​ These products have nothing to do with basic needs like food or shelter — they fall strictly into the “want” category. Yet this demand is so strong that this industry is an $84 billion global behemoth. Even the global economic downturn of 2007 to 2009 barely affected this industry’s sales. Those of you who have had children are probably familiar with this business — the toy industry, to be specific. I… Read More

Whether this industry’s products are in a mansion owned by the wealthiest 1% or a poverty-stricken housing project, it plays an unmistakable role in nearly every family.#-ad_banner-#​ These products have nothing to do with basic needs like food or shelter — they fall strictly into the “want” category. Yet this demand is so strong that this industry is an $84 billion global behemoth. Even the global economic downturn of 2007 to 2009 barely affected this industry’s sales. Those of you who have had children are probably familiar with this business — the toy industry, to be specific. I am amazed at how recession-resistant this industry is, and I think the world’s largest toy company is poised to be a great investment in 2014.   Mattel (NYSE: MAT) is a household name in the western world. Named for founders Harold “Matt” Matson and Elliot Handler, the company was born in a garage workshop in 1945. Mattel started out as a picture frame manufacturer but soon became a toy company after Matson and Handler found success selling dollhouse furniture built from scrap wood. Mattel’s first big break came when it acquired the rights to make products for the popular Mickey… Read More

The subject of female condoms might make some people blush, but the company responsible for manufacturing them has nothing to be embarrassed about.#-ad_banner-#​ In fact, the Female Health Co. (Nasdaq: FHCO) is doing a public service by making its FC2 condom available to women in 143 countries, especially where preventing unwanted pregnancy and protection against HIV are paramount. To many investors, FHCO is the epitome of a socially responsible investment. The FC2 isn’t as well-known as its male counterpart, so FHC has leaned on public agencies to help spread the word, allowing internal efforts to focus on production. Read More

The subject of female condoms might make some people blush, but the company responsible for manufacturing them has nothing to be embarrassed about.#-ad_banner-#​ In fact, the Female Health Co. (Nasdaq: FHCO) is doing a public service by making its FC2 condom available to women in 143 countries, especially where preventing unwanted pregnancy and protection against HIV are paramount. To many investors, FHCO is the epitome of a socially responsible investment. The FC2 isn’t as well-known as its male counterpart, so FHC has leaned on public agencies to help spread the word, allowing internal efforts to focus on production. Once FC2 gained the FDA’s approval in 2009, FHC was off and running, with ownership of patents worldwide. It first reached out to larger cities where HIV/AIDS infections and sexually transmitted diseases were most prevalent. FHC worked with health care providers and agencies to gain a foothold among the public. The company also zeroed in on colleges and universities where on-campus organizations benefited from grants to put together programs that helped make the FC2 a household name among young women. The reliance on public entities has allowed FHC to operate with no debt and high net profit margins — to… Read More

When it comes to picking investments, stock guys like me have it easy.#-ad_banner-# Let’s say we’re looking for a stock. Well, we like spaghetti. We know that other people like spaghetti. We know that the Whatsamattayou Pasta Co. is the largest manufacturer of dried pasta in the country. The company makes money, and the stock looks undervalued. We buy.  Bond guys have it much tougher. They have to be way better than stock guys at math and economics and reading the tea leaves. That’s why I really respect the work they do. No wonder the colorful political pundit… Read More

When it comes to picking investments, stock guys like me have it easy.#-ad_banner-# Let’s say we’re looking for a stock. Well, we like spaghetti. We know that other people like spaghetti. We know that the Whatsamattayou Pasta Co. is the largest manufacturer of dried pasta in the country. The company makes money, and the stock looks undervalued. We buy.  Bond guys have it much tougher. They have to be way better than stock guys at math and economics and reading the tea leaves. That’s why I really respect the work they do. No wonder the colorful political pundit James Carville once said he’d like to be reincarnated as the bond market — that way, he could “scare the hell out of everybody.”  So, when I decided to write about the bond market, I had to approach it from a stock guy’s perspective. As I’ve mentioned, I’m not a “wiggle reader,” as I like to call chartists. However, the charts on the 10-year Treasury yield have grabbed my attention big time: This one-year chart is pretty self-explanatory: Rates are trending lower. And there’s money to be made. Bond prices have an inverse relationship to bond yields: Prices… Read More

This $103 billion aircraft manufacturer is about to experience some turbulence.#-ad_banner-# It might just be a rogue cloud or a bigger storm brewing, but there’s no telling how investors will react to the latest string of disconcerting news for this company. A couple of items might even be enough to overshadow the fact that Boeing just beat analysts’ estimates for the fifth consecutive quarter. Yes, it could get that bumpy for Boeing (NYSE: BA). BA was pummeled this week after the company announced lower-than-expected forecasts for 2014 — but no signals of a continuation of record-breaking jet orders. You can’t… Read More

This $103 billion aircraft manufacturer is about to experience some turbulence.#-ad_banner-# It might just be a rogue cloud or a bigger storm brewing, but there’s no telling how investors will react to the latest string of disconcerting news for this company. A couple of items might even be enough to overshadow the fact that Boeing just beat analysts’ estimates for the fifth consecutive quarter. Yes, it could get that bumpy for Boeing (NYSE: BA). BA was pummeled this week after the company announced lower-than-expected forecasts for 2014 — but no signals of a continuation of record-breaking jet orders. You can’t say the same for Boeing’s archrival, France-based Airbus (PAR: AIR), which is making headway in Southeast Asia. Vietnamese carrier VietJetAir is about to order 62 Airbus aircraft for a reported $9 billion, with more orders to come.  Now is a great time to invest in Vietnam, considering it’s expected to become the third-fastest-growing market in the world. Boeing has estimated of the 33,000 commercial aircraft it expects will be required in the next two decades, the U.S. will account for just 20%, with the bulk coming from emerging markets like Vietnam. About Boeing’s aircraft: Lately, its Dreamliner 787 has gotten… Read More

There is perhaps no better investment opportunity than when a company comes out and says it’s worth more after receiving a takeover offer. This is especially true when there are a number of suitors for that same company. #-ad_banner-#​In these situations, the “belle of the ball” becomes sought after, and the bidding war begins. The highest bidder wins the prize — and shareholders make off with a bunch of money and profits. This could well be what plays out with Time Warner Cable (NYSE: TWC). Charter Communications (Nasdaq: CHTR), backed by billionaire John Malone’s Liberty Media… Read More

There is perhaps no better investment opportunity than when a company comes out and says it’s worth more after receiving a takeover offer. This is especially true when there are a number of suitors for that same company. #-ad_banner-#​In these situations, the “belle of the ball” becomes sought after, and the bidding war begins. The highest bidder wins the prize — and shareholders make off with a bunch of money and profits. This could well be what plays out with Time Warner Cable (NYSE: TWC). Charter Communications (Nasdaq: CHTR), backed by billionaire John Malone’s Liberty Media (Nasdaq: LMCA), has offered to buy Time Warner Cable for $132.50 a share. If Time Warner Cable and Charter can swing a deal, the combined company would have cable systems stretching from Maine to California. However, TWC rejected Charter’s bid as too low; TWC is looking for $160 a share. The most interesting aspect of the Charter offer is that it’s an opening bid, which is a bid that gets the two sides to the negotiating table.  Another company that is interested in buying Time Warner Cable is Comcast Corp. (Nasdaq: CMCSA). Comcast is the largest cable provider in the… Read More

Recently, one of StreetAuthority’s most popular newsletter personalities, Nathan Slaughter, sat down for an exclusive interview with one of the brightest up-and-coming minds in finance — Mebane Faber. If you haven’t heard of Meb before, chances are you will be hearing a lot more about him soon. That’s because Meb has been taking the financial world by storm with his groundbreaking research into an investing concept that is so compelling — yet so simple — that we can’t believe this hasn’t been widely talked about before. #-ad_banner-#Later in today’s issue, we’re going to share excerpts of that interview with you. You’re… Read More

Recently, one of StreetAuthority’s most popular newsletter personalities, Nathan Slaughter, sat down for an exclusive interview with one of the brightest up-and-coming minds in finance — Mebane Faber. If you haven’t heard of Meb before, chances are you will be hearing a lot more about him soon. That’s because Meb has been taking the financial world by storm with his groundbreaking research into an investing concept that is so compelling — yet so simple — that we can’t believe this hasn’t been widely talked about before. #-ad_banner-#Later in today’s issue, we’re going to share excerpts of that interview with you. You’re sure to find it as fascinating as we have, and with any luck, it might make you a better, smarter investor. See, both Meb and Nathan are no strangers to the virtues of income investing. Many of you are likely already familiar with Nathan — he’s been with StreetAuthority for over 10 years and heads up one of the most successful income-oriented newsletters in the country — High-Yield Investing. Meb has written several bestselling financial books, including The Ivy Portfolio and Shareholder Yield, and was classmates with StreetAuthority co-founder Paul Tracy nearly 20 years ago at the University of Virginia. Read More

I couldn’t believe my eyes when I read the name of the company whose stock ticker triggered a buy alert on my quantitative stock screener.#-ad_banner-# My first thought was, “Didn’t these guys go out of business in the technology stock crash at the turn of the century?” Next, memories of my professional day-trading career came flooding back. This was the same company with which more than a few friends of mine earned over $100,000 a week for weeks on end, trading in and out of the stock by using insane amounts of leverage and proprietary trading firm capital. I don’t… Read More

I couldn’t believe my eyes when I read the name of the company whose stock ticker triggered a buy alert on my quantitative stock screener.#-ad_banner-# My first thought was, “Didn’t these guys go out of business in the technology stock crash at the turn of the century?” Next, memories of my professional day-trading career came flooding back. This was the same company with which more than a few friends of mine earned over $100,000 a week for weeks on end, trading in and out of the stock by using insane amounts of leverage and proprietary trading firm capital. I don’t want to name any names, but suffice it to say that several of these gentlemen went on to become successful hedge fund managers. Others used their massive good fortune to open a variety of businesses, but unfortunately, several went broke during the tech bust. Needless to say, this company was the darling of both investors and short-term day traders during the high-tech boom years of the 1990s. This stock provided huge trading volume and monster volatility on a daily basis. These factors, combined with virtually unlimited leverage, is how numerous day traders made their fortunes during the glory days of… Read More

When companies are set to go public, investors are often abuzz with anticipation. But not all initial public offerings (IPOs) are greeted with enthusiasm. #-ad_banner-# A decade ago, for example, more than one analyst expressed doubt about the IPO of one well-known company. High leverage and operational inefficiency made the stock dubious at best, they warned. The stock was volatile right off the bat, dropping 24% in its IPO year of 2004 and then rising 27% in 2005. Then the market began consistently punishing the company for its heavy debt, cumbersome business model and faltering profits, sending shares down 2%… Read More

When companies are set to go public, investors are often abuzz with anticipation. But not all initial public offerings (IPOs) are greeted with enthusiasm. #-ad_banner-# A decade ago, for example, more than one analyst expressed doubt about the IPO of one well-known company. High leverage and operational inefficiency made the stock dubious at best, they warned. The stock was volatile right off the bat, dropping 24% in its IPO year of 2004 and then rising 27% in 2005. Then the market began consistently punishing the company for its heavy debt, cumbersome business model and faltering profits, sending shares down 2% in 2006 and 19% in 2007. With the added weight of the financial crisis, the stock sank 83% in 2008. Just four years after debuting at about $27 per share, this stock was hitting lows in the $1.40 to $2 range. Well, things are a whole lot different now. The stock has staged one of the most impressive comebacks of the past half decade, soaring 1,960% since the beginning of 2009. It now trades above $70 a share. This would have impossible if the firm, automotive parts supplier TRW Automotive (NYSE: TRW), hadn’t slashed debt and stayed focused on restructuring… Read More