Growth Investing

Back on October 26, I told you about one of the most exciting revolutions for investing to happen in years. The new opportunity has to do with an asset class that has delivered out-sized returns for wealthy, elite investors while remaining off-limits to everyone else.  I’m talking about pre-IPO investing. As you probably know, before well-known giants like Facebook or Twitter were public companies, they were burgeoning startups. As such, they weren’t traded on the public exchanges most of us are familiar with.  —Recommended Link— Only One Thing Stands Between You And $457K If you invested $10,000 into one… Read More

Back on October 26, I told you about one of the most exciting revolutions for investing to happen in years. The new opportunity has to do with an asset class that has delivered out-sized returns for wealthy, elite investors while remaining off-limits to everyone else.  I’m talking about pre-IPO investing. As you probably know, before well-known giants like Facebook or Twitter were public companies, they were burgeoning startups. As such, they weren’t traded on the public exchanges most of us are familiar with.  —Recommended Link— Only One Thing Stands Between You And $457K If you invested $10,000 into one unexpected group of stocks in 1972, you’d have $457,791 in your pocket in 2015. But if you put $10k into their counterparts instead, you’d have just $30,153. The only difference between these 2 choices is… Get the full story. But as it turns out, certain select wealthy, elite investors were able to get in on these companies before the rest of us. And in many cases, they were able to make millions. Until now. #-ad_banner-#You see, thanks to the passage of new regulations, regular investors are able to get in on the same kinds of pre-IPO deals that these “accredited”… Read More

Third-quarter earnings season has ushered in an important turning point for the S&P 500. With more than 25% of the index reporting, earnings are on pace to increase 0.1% from the same period last year. That 0.1% increase doesn’t exactly jump off the page. But with S&P 500 earnings declining for five consecutive quarters, a return to earnings growth is a positive signal for U.S. stocks. This reversal back to earnings growth is being led by some of America’s most popular brands. #-ad_banner-#For example, JPMorgan Chase’s (NYSE: JPM) per-share earnings of $1.58 beat expectations by 13%. Similarly, Walgreens Boots Alliance’s… Read More

Third-quarter earnings season has ushered in an important turning point for the S&P 500. With more than 25% of the index reporting, earnings are on pace to increase 0.1% from the same period last year. That 0.1% increase doesn’t exactly jump off the page. But with S&P 500 earnings declining for five consecutive quarters, a return to earnings growth is a positive signal for U.S. stocks. This reversal back to earnings growth is being led by some of America’s most popular brands. #-ad_banner-#For example, JPMorgan Chase’s (NYSE: JPM) per-share earnings of $1.58 beat expectations by 13%. Similarly, Walgreens Boots Alliance’s (NYSE: WBA) earnings of $1.07 beat expectations by 8%. While these reports are both excellent in their own right, one company crushed them both. In fact, I am calling it the best earnings report of the season, beating expectations by 100%. In the short run, that should help shares outperform the S&P 500 for the rest of the year. In the long run, this exceptional quarter signals that this market leader still has plenty of growth ahead. A Massive Positive Earnings Surprise Should Trigger Post-Earnings Drift Netflix (Nasdaq: NFLX) should be a familiar name. It virtually created the streaming… Read More

Looking at his brokerage statement, Ira’s heart sinks. He once thought his savings were sufficient to last the rest of his life. But his retirement account balances have fallen to levels that make him nervous. He’s now thinking he may need to find part-time work. Ira isn’t alone. Many retirees struggle to generate enough income to pay their bills.   #-ad_banner-#The fault for this lies squarely with the Federal Reserve. Their zero interest-rate policy (ZIRP) has driven investors to lower yielding and higher risk investments. You see, interest rates have declined for more than three decades. But in the last… Read More

Looking at his brokerage statement, Ira’s heart sinks. He once thought his savings were sufficient to last the rest of his life. But his retirement account balances have fallen to levels that make him nervous. He’s now thinking he may need to find part-time work. Ira isn’t alone. Many retirees struggle to generate enough income to pay their bills.   #-ad_banner-#The fault for this lies squarely with the Federal Reserve. Their zero interest-rate policy (ZIRP) has driven investors to lower yielding and higher risk investments. You see, interest rates have declined for more than three decades. But in the last decade, they have been hammered. The long-term average return on 10-Year Treasuries is 6%. That generates about $600 in annual interest income on a $10,000 investment. But with the 10-Year currently yielding just 1.7%, seniors with the same investment today earn a mere $170 a year.   That’s a 72% decline in income. And it’s only going to get worse. The Fed is roughly 350 basis points behind their own schedule for where rates should be. It will take years to normalize rates from current levels, especially as rates in many places are negative. These Policies Have Hurt Retirees… Read More

A few weeks ago, I wrote about one of the most exciting revolutions to happen to investing in years. The new opportunity has to do with an asset class that has delivered out-sized returns for wealthy, elite investors while remaining off-limits to everyone else.  In short, if you’ve ever wished you could have invested in companies like Facebook and Twitter BEFORE they went public, then you’ll want to pay attention to what I have to say… —Recommended Link— Your Personal Paycheck Plan  One simple strategy is helping folks enjoy retirement more. In fact, the $2,194 Annie from Nevada makes… Read More

A few weeks ago, I wrote about one of the most exciting revolutions to happen to investing in years. The new opportunity has to do with an asset class that has delivered out-sized returns for wealthy, elite investors while remaining off-limits to everyone else.  In short, if you’ve ever wished you could have invested in companies like Facebook and Twitter BEFORE they went public, then you’ll want to pay attention to what I have to say… —Recommended Link— Your Personal Paycheck Plan  One simple strategy is helping folks enjoy retirement more. In fact, the $2,194 Annie from Nevada makes with this method covers all her monthly expenses. The $1,100 that Gordon from California earns makes life easier each month. And Curtis of Washington State puts the $4,200 he collects monthly toward home improvements. Discover the strategy that can enrich your life,too… Until May of this year, to invest in companies before they undergo an initial public offering (IPO), you had to be an “accredited” investor — that means a net worth of at least $1 million (excluding the value of your house), or an individual income of at least $200,000 a year ($300,00 combined). Now, thanks to the passage… Read More

It’s nearly impossible to click through to Bloomberg or another financial news site without being inundated with analysis predicting the next rate hike by the Federal Reserve.  Everything seems to be tied back to the potential for higher rates, and current 30-day Federal Funds futures put the odds at 65.6% that the central bank will hike by at least 25 basis points at its December meeting. #-ad_banner-#Volatility has spiked several times this year on investor fears of higher borrowing costs. The VIX volatility index spiked 88% in June when economic reports suggested higher rates were coming. Volatility jumped again, rising… Read More

It’s nearly impossible to click through to Bloomberg or another financial news site without being inundated with analysis predicting the next rate hike by the Federal Reserve.  Everything seems to be tied back to the potential for higher rates, and current 30-day Federal Funds futures put the odds at 65.6% that the central bank will hike by at least 25 basis points at its December meeting. #-ad_banner-#Volatility has spiked several times this year on investor fears of higher borrowing costs. The VIX volatility index spiked 88% in June when economic reports suggested higher rates were coming. Volatility jumped again, rising 52% in the third week of September, and then did so a third time this month.  All three surges in volatility have been met with a sell-off in stocks. But investors may be missing one very important point about rate hikes. It’s something only the economists know and something that could change the way you invest over the next several years. Understanding The Whole Rate Cycle, Not Just The Hike The watch for higher rates has turned into a Wall Street nail-biter as the market rises and falls with each piece of economic data or speech by a member… Read More

Recently I had the honor of accompanying a group of friends to Las Vegas for a bachelor party. The betrothed couple in question for this event has been very dear to me for years — and honestly, aside from a few of the typical travel hiccups, the trip was a blast.  #-ad_banner-#I’ve been to Sin City a number of times, and I know firsthand that the things you can do to have a good time are only limited by your imagination (and, yes, perhaps your inhibitions). But among these activities — whether you’re shooting dice, playing Texas Hold ‘Em, lounging… Read More

Recently I had the honor of accompanying a group of friends to Las Vegas for a bachelor party. The betrothed couple in question for this event has been very dear to me for years — and honestly, aside from a few of the typical travel hiccups, the trip was a blast.  #-ad_banner-#I’ve been to Sin City a number of times, and I know firsthand that the things you can do to have a good time are only limited by your imagination (and, yes, perhaps your inhibitions). But among these activities — whether you’re shooting dice, playing Texas Hold ‘Em, lounging at the pool, shopping, or having a nice meal at one of the many five-star restaurants in Vegas — there’s always alcohol within reach. It got me to thinking… I hope the teetotalers among the StreetAuthority crowd will forgive me for saying this, but a little booze in moderation can make certain activities a little more fun. Perhaps that’s why alcohol has historically been such a resilient investment. So today, I’d like to share a pick with you from my colleague Jimmy Butts, Chief Investment Strategist of Top Stock Advisor. And as you may have guessed, it has to do… Read More

The primary way investors create long-term wealth in the stock market is by riding trends. I am not talking about price trends but rather the overall societal and technological macro-trends that come together to change the world.  Trillions of dollars have been made by identifying these macro trends and purchasing shares in companies riding them. The trick is identifying companies that are leaders in their niche — the companies that possess the momentum and fortitude to withstand resistance to change, and are the first movers into the space. These three fundamental factors are what distinguish long-term winners in the stock… Read More

The primary way investors create long-term wealth in the stock market is by riding trends. I am not talking about price trends but rather the overall societal and technological macro-trends that come together to change the world.  Trillions of dollars have been made by identifying these macro trends and purchasing shares in companies riding them. The trick is identifying companies that are leaders in their niche — the companies that possess the momentum and fortitude to withstand resistance to change, and are the first movers into the space. These three fundamental factors are what distinguish long-term winners in the stock market. #-ad_banner-#One major macro societal and technological trend right now is the move to a mobile society. This trend is driven by the ubiquitous use of smartphones powered by Apple (Nasdaq: AAPL) and other companies in the space. We are all familiar with the fortunes that were made by those who jumped aboard this trend as early investors.  The trend toward making everything mobile has also led to the development of various sub-trends. One of the most exciting and world changing sub-trends is the move toward decoupling the transfer of money from banks and other traditional financial institutions to upstart… Read More

The Federal Reserve has been teasing the market with an interest rate hike for most of the last five years. Finally, it looks like the most powerful central bank in the world is finally ready to make good on its promise. And while that may be considered a threat to industries that rely on cheap cash, it would be a $1.5 billion profit trigger for one of the four largest banks in the United States. Let me explain. Expectations for a Fed rate hike in December recently spiked to a multi-month high. #-ad_banner-#The Federal Funds Futures, a contract traded at… Read More

The Federal Reserve has been teasing the market with an interest rate hike for most of the last five years. Finally, it looks like the most powerful central bank in the world is finally ready to make good on its promise. And while that may be considered a threat to industries that rely on cheap cash, it would be a $1.5 billion profit trigger for one of the four largest banks in the United States. Let me explain. Expectations for a Fed rate hike in December recently spiked to a multi-month high. #-ad_banner-#The Federal Funds Futures, a contract traded at the Chicago Mercantile Exchange that calculates the probability of a rate hike, just hit a multi-month high of 64%. Minutes from the Fed’s September 20-21 meetings reveal that its 7-3 vote to leave rates unchanged was a “close call” and that voting members planned to raise rates “relatively soon.”Both of these indicators point to a high probability that the Fed will finally pull the trigger on raising interest rates before the end of the year. For industries such as real estate and building that rely on low interest rates, this isn’t great news. It threatens to restrict the easy flow… Read More

We are a nation of discount shoppers. Just like stock market investors love to buy shares at a discount, consumers love to find bargains when shopping. Retailers exploit this discount purchasing desire in numerous ways. Consumer savvy sellers do everything from issuing discount coupons and participating in loss-leader Groupon-type programs, to holding sales events and carefully setting price amounts to psychologically pleasing figures. Discount shopping is such a dominant force that the International Monetary Fund listed discount retailer Walmart (NYSE: WMT) as 28th on the list of the world’s largest economies in 2013. This means that the discount retailer’s economic… Read More

We are a nation of discount shoppers. Just like stock market investors love to buy shares at a discount, consumers love to find bargains when shopping. Retailers exploit this discount purchasing desire in numerous ways. Consumer savvy sellers do everything from issuing discount coupons and participating in loss-leader Groupon-type programs, to holding sales events and carefully setting price amounts to psychologically pleasing figures. Discount shopping is such a dominant force that the International Monetary Fund listed discount retailer Walmart (NYSE: WMT) as 28th on the list of the world’s largest economies in 2013. This means that the discount retailer’s economic power is greater than most nations, serving as a testament to the success of the discount shopping model.   #-ad_banner-#The Next Level Of Discount Shopping An entire industry has emerged pushing the discount concept to the extreme in the brick & mortar space. Known as dollar stores, these deep-discount retailers have become a thriving industry, while creating over $25 billion in annual revenue. Dollar stores are defined as stores that sell most of their merchandise at a single low price. As the name suggests, the price is generally $1.00 or so per item. These retailers focus on regions that… Read More

It only takes three things to get me very excited about a stock market opportunity: sleeper stocks pushing toward yearly highs, technical price breakouts, and corporate spinoffs. Each one of these items can be signaling bullish times ahead for the shares. Combine all three signals with a 148-year-old, $52 billion market cap behemoth boasting over 90 million customers in more than 60 nations, and it paints a bright future for the shares. First, let’s take a closer look at each of the three bullish factors at work then dig into the specifics of the opportunity. #-ad_banner-#Sleeper stocks are companies holding… Read More

It only takes three things to get me very excited about a stock market opportunity: sleeper stocks pushing toward yearly highs, technical price breakouts, and corporate spinoffs. Each one of these items can be signaling bullish times ahead for the shares. Combine all three signals with a 148-year-old, $52 billion market cap behemoth boasting over 90 million customers in more than 60 nations, and it paints a bright future for the shares. First, let’s take a closer look at each of the three bullish factors at work then dig into the specifics of the opportunity. #-ad_banner-#Sleeper stocks are companies holding little interest to short-term, fast money type stock market investors. They tend to be slow movers but can make great long-term investments. These stocks are often from old, boring industries such as insurance. When a sleeper stock is observed pushing toward new highs, it may be signaling more than just a short-term move based on price alone. That’s because it often takes a seriously bullish fundamental catalyst to trigger a move higher in a sleeper stock. Next, a technical breakout occurs whenever the share price moves above a resistance level on a price chart.  Many technical analysts consider the 200-day… Read More