Fears of a trade war have subsided, but recent economic releases may be showing it’s too late to avoid some of the pain. Signs of inflation have already been creeping higher and price pressures for manufacturers might foreshadow a surge in consumer prices that could force the Fed to increase rates faster than expected. #-ad_banner-#The problem is that it may be a no-win situation for businesses and their investors. Passing costs on to consumers could slow sales and subsequent rate hikes could slow the economy. However, not passing costs on to consumers could decimate earnings. There are only a few… Read More

Fears of a trade war have subsided, but recent economic releases may be showing it’s too late to avoid some of the pain. Signs of inflation have already been creeping higher and price pressures for manufacturers might foreshadow a surge in consumer prices that could force the Fed to increase rates faster than expected. #-ad_banner-#The problem is that it may be a no-win situation for businesses and their investors. Passing costs on to consumers could slow sales and subsequent rate hikes could slow the economy. However, not passing costs on to consumers could decimate earnings. There are only a few sectors and industries that could escape this lose-lose scenario. These Two Problems Could Be Bigger Than A Trade War While we may avoid a full-blown trade war, the prospect of one may have already caused an increase in prices. The Producer Price Index (PPI) measure of input costs has risen in six of the past eight months and import prices have recently jumped the most in six years. That could be due in part to manufacturers rushing to order inputs ahead of tariffs, inadvertently driving up prices at suppliers. One measure flashing red is delivery… Read More

Back when I was a rookie in the investment biz, the internet bubble was in full inflation mode. There were scores of terrible ideas; pets.com, for one. But there were also a few ideas that would change the world and how we communicate. #-ad_banner-#The area of the internet buildout I was most interested in at the time was what some observers referred to as the “backbone,” which, as it turned out, was just another term for “network”. But it seemed like this was the place to be, much as steel and ancillary services were where the real money was made… Read More

Back when I was a rookie in the investment biz, the internet bubble was in full inflation mode. There were scores of terrible ideas; pets.com, for one. But there were also a few ideas that would change the world and how we communicate. #-ad_banner-#The area of the internet buildout I was most interested in at the time was what some observers referred to as the “backbone,” which, as it turned out, was just another term for “network”. But it seemed like this was the place to be, much as steel and ancillary services were where the real money was made during the American railroad boom of the mid-nineteenth century. Companies at the top of the backbone buildout food chain included Cisco Systems (Nasdaq: CSCO), the scandalous and now-defunct Worldcom, Nokia (NYSE: NOK), Ericsson (Nasdaq: ERIC), and old-tech-turned-new-tech Corning (NYSE: GLW). I’ve owned, traded, and written about Corning in the past. It’s time to have another look. Once commanding triple-digit valuations during the mania of the late 90s Tech Bubble, GLW traded in a normal range until the return of volatility earlier this year. An unforgiving reckoning shaved 24% off the stock’s price as tech names across the board… Read More

Let me start by offering my deepest condolences to the family of Jennifer Riordan, who was fatally injured during last Tuesday’s in-flight engine breakup on Southwest Flight 1380. A faulty blade on one of the plane’s CFM56 turbofan engines snapped off, causing the engine to fail and sending debris flying toward a window. —Sponsored Link— Traders Daily Lets You ‘Pick The Brain’ Of One Of America’s Foremost Trading Pros Each daily issue delivers all this to your email: — Exciting trading tips on high potential stocks, options and ETFs… Read More

Let me start by offering my deepest condolences to the family of Jennifer Riordan, who was fatally injured during last Tuesday’s in-flight engine breakup on Southwest Flight 1380. A faulty blade on one of the plane’s CFM56 turbofan engines snapped off, causing the engine to fail and sending debris flying toward a window. —Sponsored Link— Traders Daily Lets You ‘Pick The Brain’ Of One Of America’s Foremost Trading Pros Each daily issue delivers all this to your email: — Exciting trading tips on high potential stocks, options and ETFs — Precise and revealing, easy-to-follow charts — Market insights that keep you current and point you to additional opportunities — Exact trade set-ups with entry and exit points — Go long, go short and when to hold strategies — Plus much more You also gain instant access to the complete Traders Daily track record that’s already produced an average gain of 38% per trade. Sign up for your FREE, no-obligation subscription now! Captain Tammie Jo Shults also deserves recognition for executing a perfect emergency landing and remaining calm, cool and collected… Read More

President Trump’s $1.5 trillion infrastructure plan introduced in February disappointed policymakers on both sides of the aisle. The headline price tag was too much for fiscal hawks and the paltry $200 billion in direct federal spending wasn’t enough from the perspective of state and local governments. It may not have mattered because enthusiasm for new fiscal spending had already become extremely light after the $1.5 trillion tax cut package. #-ad_banner-#However, signs are pointing to a change in the environment, and infrastructure stocks could get a big boost very soon. Not only is crumbling infrastructure making headlines, but rare bipartisan support… Read More

President Trump’s $1.5 trillion infrastructure plan introduced in February disappointed policymakers on both sides of the aisle. The headline price tag was too much for fiscal hawks and the paltry $200 billion in direct federal spending wasn’t enough from the perspective of state and local governments. It may not have mattered because enthusiasm for new fiscal spending had already become extremely light after the $1.5 trillion tax cut package. #-ad_banner-#However, signs are pointing to a change in the environment, and infrastructure stocks could get a big boost very soon. Not only is crumbling infrastructure making headlines, but rare bipartisan support is coming together to drive enthusiasm for a spending package. The group has largely missed the run-up in prices seen in the broader market over the last five years as infrastructure spending stagnated. Leaders are trading at discounts to long-term price multiples and could play catch-up on any new spending plan. Infrastructure Spending Is Shovel-Ready And Could Be Back On The Agenda Infrastructure spending has long been lower than replacement needs, but the last five years have lagged even further. Annual federal spending for major public infrastructure has fallen 17% over the five years through 2017 to $38.4 billion. Read More

Picking stocks in a bull market is so easy the GEICO caveman could do it. After all, when the broader market indices, like the S&P 500, trade at average price-to-earnings (P/E) and price-to-sales ratios (P/S) of 24.4 and 2.2, respectively, just about every stock in the index is rising. #-ad_banner-#Of course, buying a market with such high multiples is fraught with danger. Both ratios are at extreme levels. In fact, the sales-to-price ratio is at its all-time high. What’s An Investor To Do? Investors really have two options to deal with an overpriced and volatile market. First is to… Read More

Picking stocks in a bull market is so easy the GEICO caveman could do it. After all, when the broader market indices, like the S&P 500, trade at average price-to-earnings (P/E) and price-to-sales ratios (P/S) of 24.4 and 2.2, respectively, just about every stock in the index is rising. #-ad_banner-#Of course, buying a market with such high multiples is fraught with danger. Both ratios are at extreme levels. In fact, the sales-to-price ratio is at its all-time high. What’s An Investor To Do? Investors really have two options to deal with an overpriced and volatile market. First is to sell their positions and move to interest-bearing securities. And while this may have worked in the past, moving money into bonds and preferred stock is actually more dangerous than the stock market right now. You see, the Fed intends to raise interest rates at least two more times — possibly three — in 2018. And because bond prices are inverse to interest rates, when interest rates go up, bond prices go down. It’s the opposite of what happened in 1983 when interest rates started falling. It fueled a bond rally that lasted more than three decades. But that rally created… Read More

If I asked you what was going on in the markets in January 2017, I’d bet that most folks wouldn’t recall anything in particular that really stood out. After all, the S&P 500 was climbing to new highs on a near daily basis, and volatility was near all-time lows. Ho-hum. In other events, you’d probably recall that it had only been a couple of months since President Trump’s surprise election, and that January was the month of his inauguration. But something else happened during that period. Something that can be used as a valuable investing lesson. From Trump’s election in… Read More

If I asked you what was going on in the markets in January 2017, I’d bet that most folks wouldn’t recall anything in particular that really stood out. After all, the S&P 500 was climbing to new highs on a near daily basis, and volatility was near all-time lows. Ho-hum. In other events, you’d probably recall that it had only been a couple of months since President Trump’s surprise election, and that January was the month of his inauguration. But something else happened during that period. Something that can be used as a valuable investing lesson. From Trump’s election in November 2016 to the end of January in 2017, the S&P 500 was up more than 9%. Nearly every stock was climbing… that is, except for two of my Top Stock Advisor holdings: Perhaps seeing the names of these companies begins to spark some memories. In short, clothing retailer PVH (NYSE: PVH) and beverage company Constellation Brands (NYSE: STZ) were taking heat over the rhetoric of a possible “Border Tax” — a tax on goods made overseas and imported and sold in the United States. At the time, there was a lot of concern regarding these two companies…… Read More

Any man who’s gone through it will tell you that a lot of work, money and stress go into buying a diamond. I mean, behind your house and your car, this little rock is one of the most expensive purchases in life. Retailers are fighting for your business, and competition among jewelers is beyond fierce — and given the potential profits involved, it has to be. —Sponsored Link— The Most Powerful Investment Of The Next 10 Years It may be one of the most speculative sectors on the market. But it’s also one of the most explosive. Read More

Any man who’s gone through it will tell you that a lot of work, money and stress go into buying a diamond. I mean, behind your house and your car, this little rock is one of the most expensive purchases in life. Retailers are fighting for your business, and competition among jewelers is beyond fierce — and given the potential profits involved, it has to be. —Sponsored Link— The Most Powerful Investment Of The Next 10 Years It may be one of the most speculative sectors on the market. But it’s also one of the most explosive. Given the demand we’re seeing from 80 million retiring baby boomers, waves of new innovation, mergers and acquisitions, biotech is one of the best ways to park your cash. We’ve already been rewarded when: — ACADIA Pharmaceuticals (ACAD) returned 4,851% and 4,093% — Amicus Therapeutics (FOLD) retuned 626% — Celator Pharmaceuticals (CPXX) returned 1,635% — CymaBay Therapeutics (CBAY) returned 862% — Fate Therapeutics (FATE) returned 601% — Dynavax Technologies (DVAX) returned 2,036% But which ones are poised to do the same? Discover the five biotech wealth-building stocks that could triple your returns. Read More

Estimates are high and investors are enthusiastic about what could be the best year-over-year earnings growth in seven years. If expectations are met, it could confirm investor sentiment for the tax cuts and higher profits this year. But the market could be ripe for a correction just as investor sentiment peaks. The S&P 500 is trading at 16.5 times earnings expected over the next year, a premium of 15.4% over the 10-year average of 14.3 times. #-ad_banner-#Stocks have been skittish all year, dropping more than 10% in February from their peak. The market has already seen three times the number… Read More

Estimates are high and investors are enthusiastic about what could be the best year-over-year earnings growth in seven years. If expectations are met, it could confirm investor sentiment for the tax cuts and higher profits this year. But the market could be ripe for a correction just as investor sentiment peaks. The S&P 500 is trading at 16.5 times earnings expected over the next year, a premium of 15.4% over the 10-year average of 14.3 times. #-ad_banner-#Stocks have been skittish all year, dropping more than 10% in February from their peak. The market has already seen three times the number of days trading higher or lower by 1% or more than all of 2017. This dichotomy means investors need to look deeper into the numbers to make sure their sector positioning and individual picks are ready for what will likely be a very volatile earnings season. Earnings Season Takes Center Stage The trickle in first quarter earnings becomes a deluge this week with bellwether names like Bank of America (NYSE: BAC) and Procter & Gamble (NYSE: PG). More than 1,200 companies are expected to report profits for the first three months of the year this week, an increase of… Read More

Remember the good ol’ days of 2017? The market was climbing. Volatility was falling. And investors could do no wrong by putting their money into whatever was dominating the headlines at the moment. —Sponsored Link— 3 Hot Marijuana Stocks To Buy Before July 1 Since California dispensaries started to legally sell recreational marijuana on January 1, companies in the cannabis industry have increased by nearly $2 billion in value. And now Canada is set to legalize recreational marijuana by July 2018. Savvy investors are already grabbing positions in these three stocks… Read More

Remember the good ol’ days of 2017? The market was climbing. Volatility was falling. And investors could do no wrong by putting their money into whatever was dominating the headlines at the moment. —Sponsored Link— 3 Hot Marijuana Stocks To Buy Before July 1 Since California dispensaries started to legally sell recreational marijuana on January 1, companies in the cannabis industry have increased by nearly $2 billion in value. And now Canada is set to legalize recreational marijuana by July 2018. Savvy investors are already grabbing positions in these three stocks that are set to soar once the announcement is made. And, of course, the FAANG stocks were at their height. This catchy name stands for Facebook (Nasdaq: FB), Amazon (Nasdaq: AMZN), Apple (Nasdaq: AAPL), Netflix (Nasdaq: NFLX) and Google (Nasdaq: GOOGL). This group was supposed to represent the most popular technology stocks of this market. #-ad_banner-#Whether it was a self-fulfilling prophecy or simply really strong momentum (or both), the year-end Bloomberg analysis showed that the FAANGs (or a slight modification on that acronym) were instrumental in 2017’s record-setting market performance. In fact, taken together, Facebook, Apple, Amazon, Microsoft (Nasdaq: MSFT)… Read More

Recent market volatility has made finding actionable stocks harder than at any other time since the Great Recession. And with the CBOE Volatility Index (VIX) hovering around 20, there isn’t any reason to suggest that market volatility will decrease markedly anytime soon. Which begs the question… #-ad_banner-#Should investors with risk capital to deploy stay on the sidelines until the VIX returns to a more comfortable level? Or can investors deploy their capital in safe and effective investments? The answers to these questions are easier than you might think. You see, despite market volatility, corporate profits are expected to have risen… Read More

Recent market volatility has made finding actionable stocks harder than at any other time since the Great Recession. And with the CBOE Volatility Index (VIX) hovering around 20, there isn’t any reason to suggest that market volatility will decrease markedly anytime soon. Which begs the question… #-ad_banner-#Should investors with risk capital to deploy stay on the sidelines until the VIX returns to a more comfortable level? Or can investors deploy their capital in safe and effective investments? The answers to these questions are easier than you might think. You see, despite market volatility, corporate profits are expected to have risen 17% since the first of the year. That bodes well for the market as a whole. But it doesn’t mean investors should just pile into the same stocks they’ve been pushing higher for the better part of a decade. Because, believe it or not, there are some economic sectors that haven’t been pushed to the limit of prudent valuations. One such segment is regional banks. With the recently enacted tax cuts, rising interest rates, and the tailwinds of robust economic growth, regional banks are finally in the economic sweet spot. At present, analysts’ expectations for financial earnings have risen to… Read More