If I had to provide just two words of guidance to investors about 2017, I would say “expect change.” The new administration will soon be shaking things up in a manner not seen for many decades. There will likely be a loosening of regulatory oversight, a massive uptick in infrastructure spending, and a substantial increase in defense spending as America takes a more hawkish stance on global affairs. #-ad_banner-#While each of these expected macro changes will create opportunity and risk for investors, some of the best opportunities will be created in the defense sector. Over the last five years, defense… Read More

If I had to provide just two words of guidance to investors about 2017, I would say “expect change.” The new administration will soon be shaking things up in a manner not seen for many decades. There will likely be a loosening of regulatory oversight, a massive uptick in infrastructure spending, and a substantial increase in defense spending as America takes a more hawkish stance on global affairs. #-ad_banner-#While each of these expected macro changes will create opportunity and risk for investors, some of the best opportunities will be created in the defense sector. Over the last five years, defense spending has been stifled under the Budget Control Act of 2011. Despite the cuts, the largest firms in the aerospace and defense sector have weathered the storm remarkably well. If you look carefully, this success was only possible with aggressive management action. Stock buybacks, workforce cuts, and ramping up efficiency have all been effectively used to survive. Defense firms have also sought profits via foreign markets and commercial businesses while neglecting their core defense competencies. Even worse, budget cuts have curtailed long term planning, as it’s difficult to take on contracts in an uncertain funding environment. But this tide might… Read More

There are few things more profitable in the stock market than finding a long-term bullish economic trend and identifying a backdoor way to invest in the trend. #-ad_banner-#Major economic trends are often well known the observant investor, and many of them invest directly into the major companies riding the trend. While this tactic can and does work miracles at the start of any economic or societal trend, the profit potential becomes diluted when the trend matures. Shifting consumer tastes can turn one company’s products from a huge hit into a has-been at the drop of a hat. The key to… Read More

There are few things more profitable in the stock market than finding a long-term bullish economic trend and identifying a backdoor way to invest in the trend. #-ad_banner-#Major economic trends are often well known the observant investor, and many of them invest directly into the major companies riding the trend. While this tactic can and does work miracles at the start of any economic or societal trend, the profit potential becomes diluted when the trend matures. Shifting consumer tastes can turn one company’s products from a huge hit into a has-been at the drop of a hat. The key to long-term success is to locate those under the radar, backdoor companies that are crucial for supporting the overall trend but aren’t the obvious financial media darlings. These companies are often those that support or complement the more obvious ones. Today’s Big Trend A major trend that appears poised to continue is the shift to dining out and away from at-home meals. In 2015, for the first time, restaurant spending surpassed grocery store expenditures. The U.S. Department of Commerce reported that Americans spent $52.3 billion at restaurants and bars compared to $49.7 billion in grocery stores. It is the first… Read More

After a rocky start, driverless cars are becoming a reality, from driver-assist features to fully automated driving. One report puts the number of autonomous cars on the road at 10 million over the next three years and the Honda Americas R&D chief has set a goal of zero crashes for… Read More

If you’re an investor looking for game-changing trends, your formula for success should include seeking out a growing business, trend, sector, or even country. Often, knowing what to look for is the most important step in your process. That’s why just this month, my Game-Changing Stocks subscribers and I went… Read More

Grab My New Book FREE! This Special Edition of Investing in the Next Big Thing tells you everything you need to know to get started in Pre-IPO Investing and includes an exclusive bonus chapter revealing 3 startups that I’m telling my clients to buy right now. They are 3 of the best bets for an explosive payoff that I’ve seen out of the 289 firms I’ve reviewed in the past three years. This Special Edition won’t be available on Amazon.com or anywhere else. It will only be available through StreetAuthority. Learn more.​ — Joseph Hogue, CFA Ask me ten years ago and I wouldn’t… Read More

Grab My New Book FREE! This Special Edition of Investing in the Next Big Thing tells you everything you need to know to get started in Pre-IPO Investing and includes an exclusive bonus chapter revealing 3 startups that I’m telling my clients to buy right now. They are 3 of the best bets for an explosive payoff that I’ve seen out of the 289 firms I’ve reviewed in the past three years. This Special Edition won’t be available on Amazon.com or anywhere else. It will only be available through StreetAuthority. Learn more.​ — Joseph Hogue, CFA Ask me ten years ago and I wouldn’t have believed it but social media is now an inescapable part of our daily lives. Nearly four-fifths (78%) of Americans reported having a social media profile in 2016 and users approach nearly two billion worldwide. Early investors in the major platforms booked massive returns on investments when the sites were small startup companies. #-ad_banner-#For example, hedge-fund manager and venture capitalist Peter Thiel was one of the first investors in Facebook (Nasdaq: FB) with a $500,000 investment in 2004. When the company went public just eight years later, Thiel’s investment was worth $1.67 billion. That works out to an annualized return… Read More

We are in the midst of the greatest technological revolution of all time. After years in its nascent stages, the internet has become a critical fixture in all aspects of our lives. High-tech turning high-touch, to borrow a phrase from futurist John Naisbitt, has become our reality. All one needs… Read More

The student threw his hands up in frustration. “Professor,” he said, “I just don’t get it.” He slumped in his chair totally defeated. #-ad_banner-#I understood the feeling. I had spent more than two hours explaining basic financial ideas to a college freshman. But try as I might, I couldn’t get… Read More

The casual dining sector has fallen on hard times. Hit by a triple whammy of consumer burnout, lack of innovation, and improving value and quality at fast food outlets, this once-thriving sector is in need of life support. #-ad_banner-#Despite a bustling economy, casual dining sales are forecasted to climb only… Read More

Dow 20,000 is all anyone can talk about lately even though most people follow the S&P 500 more closely as a market proxy. And the milestone seems to be drawing closer; the market gave back some gains in the last few days of 2016 but investor enthusiasm for stocks is… Read More

Can Nvidia Corporation (Nasdaq: NVDA) stock, which could do no wrong last year, be trusted in 2017? And by “trust” I mean can the company live up to all of the hype investors have created? Notice that I didn’t say Nvidia itself has created the hype. Living Inside The Nvidia Bubble While the company’s entry into the realm of virtual and augmented reality, data centers, self-driving cars, and other growth markets were well-timed moves, the shares have approached bubble territory. And some investors still believe the stock — even after more than 200% returns — has room to run… Read More

Can Nvidia Corporation (Nasdaq: NVDA) stock, which could do no wrong last year, be trusted in 2017? And by “trust” I mean can the company live up to all of the hype investors have created? Notice that I didn’t say Nvidia itself has created the hype. Living Inside The Nvidia Bubble While the company’s entry into the realm of virtual and augmented reality, data centers, self-driving cars, and other growth markets were well-timed moves, the shares have approached bubble territory. And some investors still believe the stock — even after more than 200% returns — has room to run while ignoring the attractive short thesis the Nvidia story has created. #-ad_banner-#After crushing the Nasdaq 100 Index (NDX) with some 222% returns in 2016, the semiconductor company has a tough act to follow. That, however, hasn’t stopped retail investors from wanting to chase the returns they feel they’ve missed out on last year. Notably, on the heels of the stock soaring almost 35% in one month, analysts at Goldman Sachs added Nvidia to the Conviction Buy list. Who’s Left To Buy The Stock? But here’s the question Goldman — or any other long investor — must ask: Who’s left… Read More