Growth Investing

Maybe it’s some kind of kismet. Or maybe I just want it to be… I saw a Tesla Model S cruising down the highway in Milwaukee the day after Elon Musk revealed his brand new Model 3. It was pretty slick. Nice styling, cool feel. Not like the impression you get with a Prius… This was something that even electric car-naysayers could admire. #-ad_banner-#It’s this slick approach that puts Tesla in a very different category than previous EV or hybrid makers, and it’s also why Tesla has garnered an almost cult-like following. In the run-up to the big… Read More

Maybe it’s some kind of kismet. Or maybe I just want it to be… I saw a Tesla Model S cruising down the highway in Milwaukee the day after Elon Musk revealed his brand new Model 3. It was pretty slick. Nice styling, cool feel. Not like the impression you get with a Prius… This was something that even electric car-naysayers could admire. #-ad_banner-#It’s this slick approach that puts Tesla in a very different category than previous EV or hybrid makers, and it’s also why Tesla has garnered an almost cult-like following. In the run-up to the big reveal of Tesla Motors’ (Nasdaq: TSLA) new Model 3 electric vehicle, 115,000 people shelled out $1,000 to reserve one… before they ever saw what the car looked like. And by early Sunday, that figure jumped to 276,000. That’s $276 million in the bank. The reveal was just as impressive as these figures. The Model 3 is a similar shape to the Model S, and comes with a range of at least 215 miles per charge. That’s surprisingly practical for a lot of people, including me, who lives an hour away from work. It comes with an autopilot function standard,… Read More

A couple of years ago, my wife and I took a trip to St. Louis, Missouri. Jen and I drove more than a thousand miles, spent six nights in a hotel, ate however many meals and did some shopping. We each have a debit card, a credit card and a gas card, and Jen has a few store cards. We were gone a week, and I came home with the same ten $50 bills I’d gotten at the bank before we left. It dawned on me how seldom I have any physical currency in my wallet — usually only when… Read More

A couple of years ago, my wife and I took a trip to St. Louis, Missouri. Jen and I drove more than a thousand miles, spent six nights in a hotel, ate however many meals and did some shopping. We each have a debit card, a credit card and a gas card, and Jen has a few store cards. We were gone a week, and I came home with the same ten $50 bills I’d gotten at the bank before we left. It dawned on me how seldom I have any physical currency in my wallet — usually only when I travel. It’s certainly not because I go without any of the things I need or want; it’s because I simply don’t need to carry cash. #-ad_banner-#I do, of course, need my smartphone. And thanks to what may experts are calling the “mobile payment revolution,” it’s quickly becoming “the next big thing” that will lead to the death of debit cards and cash. For the past few years, I’ve been telling readers of my premium Game-Changing Stocks Advisory about mobile payments. In fact, well before Apple announced its Apple Pay platform, I predicted that the company would develop this technology. Read More

Here’s a random question… Do you remember the Virtual Boy? #-ad_banner-#I’d be surprised if you do. Launched by Nintendo in 1995, the Virtual Boy was meant to be a great leap forward — a portable video game console that displayed “true 3D graphics” for users. The New York Times previewed the console in 1994, saying it would “totally immerse players into their own private universe.”  Sounds pretty cool, right? Unfortunately it didn’t live up to the hype. Gunpei Yokoi, creator of Nintendo’s Game Boy handheld system (which sold 118 million… Read More

Here’s a random question… Do you remember the Virtual Boy? #-ad_banner-#I’d be surprised if you do. Launched by Nintendo in 1995, the Virtual Boy was meant to be a great leap forward — a portable video game console that displayed “true 3D graphics” for users. The New York Times previewed the console in 1994, saying it would “totally immerse players into their own private universe.”  Sounds pretty cool, right? Unfortunately it didn’t live up to the hype. Gunpei Yokoi, creator of Nintendo’s Game Boy handheld system (which sold 118 million units over its lifespan) was tasked with bringing Virtual Boy to life, so he began experimenting with the technology Nintendo had licensed to create the 3D experience. While he touted the tech as a game-changer, he also realized that it would be prohibitively expensive (in the neighborhood of $500) to feature a full color LCD display system in the console. The result was a still-expensive (for the time) $149 gaming system with a red-only 3D visual display that, to be kind, was less than fulfilling. To put it bluntly: it irritated users. Some even complained of… Read More

As I discussed yesterday, the U.S. economy continues to show surprising signs of strength and resilience. Job growth, consumer spending and manufacturing production are on the rise six years into a recovery. And for the markets, it’s significant that confidence in the U.S. economy seems to be rebounding from the gloomy mood early this year. What does this mean for your portfolio? #-ad_banner-#In general, the overall U.S. stock markets should perform well when the economy is growing and inflation and interest rates are historically low. But the devil is in the details. Defensive stocks, like electric utilities and blue chip… Read More

As I discussed yesterday, the U.S. economy continues to show surprising signs of strength and resilience. Job growth, consumer spending and manufacturing production are on the rise six years into a recovery. And for the markets, it’s significant that confidence in the U.S. economy seems to be rebounding from the gloomy mood early this year. What does this mean for your portfolio? #-ad_banner-#In general, the overall U.S. stock markets should perform well when the economy is growing and inflation and interest rates are historically low. But the devil is in the details. Defensive stocks, like electric utilities and blue chip stocks with above-average dividend yields, tend to underperform in such a climate. Yet global investors remain anxious about China, Europe and other economies outside our shores — so safe haven stocks may do just fine. Still, the best performers should be those in areas that thrive when Americans are employed and have extra money in their pockets. And some specific industries could benefit from trends impacting them regardless of the wider economic scenario. Here are the sectors most likely to outperform over the next 12 months: Consumer Discretionary: By definition, companies in the consumer discretionary space sell goods and services… Read More

Understanding this one catalyst could dramatically change where and how you invest… #-ad_banner-#Right now, it’s the foundation of the largest transfer of wealth in our history — more money will change hands over the coming years from this trend than the annual sales of Wal-Mart (Nasdaq: WMT), Kroger (NYSE: KR), Costco (Nasdaq: COST), Target (NYSE: TGT) and Sears (Nasdaq: SHLD) combined. It’s revolutionized entire industries, created new markets and saved entire corporations. Take the baby food industry for example. In the early 40’s and 50’s this very catalyst helped launch a relatively unknown… Read More

Understanding this one catalyst could dramatically change where and how you invest… #-ad_banner-#Right now, it’s the foundation of the largest transfer of wealth in our history — more money will change hands over the coming years from this trend than the annual sales of Wal-Mart (Nasdaq: WMT), Kroger (NYSE: KR), Costco (Nasdaq: COST), Target (NYSE: TGT) and Sears (Nasdaq: SHLD) combined. It’s revolutionized entire industries, created new markets and saved entire corporations. Take the baby food industry for example. In the early 40’s and 50’s this very catalyst helped launch a relatively unknown company — called the Freemont Canning Company — into a global icon. The company — now better known as Gerber — went from selling just 590,000 jars of baby food per year to nearly two million jars per day. By 1955, when Gerber’s sales swelled to 1.8 billion jars of baby food per year, it sold more jars of baby food in one year than in the company’s first 18 years combined. Toy maker Hasbro (Nasdaq: HAS) was next in line. In 1952, the company invented “Mr. Potato Head” — a plastic toy that… Read More

In an unexpected bidding war for Starwood Hotels & Resorts (NYSE: HOT), Marriott International, Inc. (NYSE: MAR) came out on top against China’s Anbang Insurance Group with a deal worth $13.6 billion. The deal was months in the making. Marriott first put in its bid back in November 2015. But in mid-March, out of the blue, a Chinese consortium led by Anbang slipped in a bid of its own. And it was a whopper. #-ad_banner-#The consortium’s proposal equaled a value of $83.67 per share, heads and shoulders above the Marriott bid, valued at $71.00 per share. Suddenly, Marriott was sent… Read More

In an unexpected bidding war for Starwood Hotels & Resorts (NYSE: HOT), Marriott International, Inc. (NYSE: MAR) came out on top against China’s Anbang Insurance Group with a deal worth $13.6 billion. The deal was months in the making. Marriott first put in its bid back in November 2015. But in mid-March, out of the blue, a Chinese consortium led by Anbang slipped in a bid of its own. And it was a whopper. #-ad_banner-#The consortium’s proposal equaled a value of $83.67 per share, heads and shoulders above the Marriott bid, valued at $71.00 per share. Suddenly, Marriott was sent scrambling to hold on to what could be a great growth opportunity. Starwood owns such well-known brands as Weston and Sheraton. As of the end of 2015, the company owned or managed 1,282 hotels and 15 vacation resort properties in over 100 countries. Interestingly, on March 19, Starwood signed three hotel deals in Cuba, making it the first U.S.-based hospitality company to enter the market in nearly 60 years. Marriott, on the other hand, is nearly three times Starwood’s size, with more than 4,400 properties across 87 countries. The tie-up with Starwood will give Marriott access to more countries. The… Read More

Investors have been fickle this year. Before the New Year’s confetti had even settled, the market was in full-blown retreat, with recession-resistant safe havens holding up well and economically sensitive cyclicals bearing the brunt of the correction. Commodity stocks, for example, were clobbered. But since mid-February, market sentiment has shifted markedly toward sectors that would benefit from continued U.S. economic growth; commodities have rallied, too — a sign that investors now believe the gloomy forecasts of winter were overdone and spring may bring a rosier economic climate. For U.S. stocks, the shift toward growth was aided by attractive valuations for… Read More

Investors have been fickle this year. Before the New Year’s confetti had even settled, the market was in full-blown retreat, with recession-resistant safe havens holding up well and economically sensitive cyclicals bearing the brunt of the correction. Commodity stocks, for example, were clobbered. But since mid-February, market sentiment has shifted markedly toward sectors that would benefit from continued U.S. economic growth; commodities have rallied, too — a sign that investors now believe the gloomy forecasts of winter were overdone and spring may bring a rosier economic climate. For U.S. stocks, the shift toward growth was aided by attractive valuations for many fine companies unfairly caught up in the selloff. In many cases, those stocks are no longer cheap. But a careful perusal of the growth-stock catalog reveals that some excellent companies still trade at prices that make for attractive entry points. #-ad_banner-#One is Rockwell Automation (NYSE: ROK), which I recommended in early February. The stock is up about 14% since then, and not quite as cheap, but its valuation remains low enough to merit a buy for long-term investors. Rockwell Automation remains a beneficiary of the strong growth of the global robotics market. Robots now perform about 10% of all… Read More

President Barack Obama is visiting Cuba this week, making him the first sitting President to visit the country in nearly a century. The last President to visit was Calvin Coolidge in 1928. Relations for the United States and Cuba have been strained for more than 50 years, going back to the Cold War and including the trade embargo imposed by John F. Kennedy in 1962.   #-ad_banner-#But a lot has happened over the past few years, and Obama continues to make more headway than any other President when it comes to mending the relationship.  In late 2014, he announced a… Read More

President Barack Obama is visiting Cuba this week, making him the first sitting President to visit the country in nearly a century. The last President to visit was Calvin Coolidge in 1928. Relations for the United States and Cuba have been strained for more than 50 years, going back to the Cold War and including the trade embargo imposed by John F. Kennedy in 1962.   #-ad_banner-#But a lot has happened over the past few years, and Obama continues to make more headway than any other President when it comes to mending the relationship.  In late 2014, he announced a restoration of diplomatic ties between the United States and Cuba. Then in mid-2015, the two countries reported their respective embassies in Washington D.C. and Havana, Cuba.  A strengthening of relations would mean that Cuba as a country is now open for business, which would be great news for U.S. companies, as well as Cuba.  A Prime Spot For Travel One of the best ways to profit on a strengthening relationship with Cuba will be with tourism.  Cuba’s impressive beaches hold a lot of potential as a vacation destination, and it also holds appeal for business travel as the Caribbean’s… Read More

Benjamin Franklin was a Founding Father, statesman and signer of the Declaration of Independence.  He was also a brilliant inventor — creating bifocals, the lightning rod and the odometer. #-ad_banner-#But his greatest invention has been shrouded in mystery for more than 250 years…  It involves controlling one of the most important resources known to man: energy. In 1749, through a revolutionary experiment, Franklin created a device that could capture and harness energy. Then, 150 years later, Thomas Edison picked up where Franklin left off. Since then, many others have carried forward this work. But… Read More

Benjamin Franklin was a Founding Father, statesman and signer of the Declaration of Independence.  He was also a brilliant inventor — creating bifocals, the lightning rod and the odometer. #-ad_banner-#But his greatest invention has been shrouded in mystery for more than 250 years…  It involves controlling one of the most important resources known to man: energy. In 1749, through a revolutionary experiment, Franklin created a device that could capture and harness energy. Then, 150 years later, Thomas Edison picked up where Franklin left off. Since then, many others have carried forward this work. But a few months ago, a band of scientists — backed by an eccentric billionaire — took Franklin’s dream to new heights. They finally broke through — and now it has the potential to make early investors a fortune. From Franklin, Tesla, Edison — And Now Musk We’ve all heard the first part of the folk tale… Ben Franklin was convinced that lightning bolts contain energy, and he wanted to prove it. So during a thunderstorm, he flew a kite with a metal key attached, hoping the kite would get hit. Read More

I remember watching the movie Gung Ho in 1986 and wondering along with the rest of the country if Japan was going to buy the red, white and blue in its entirety. The movie was about a Japanese acquisition of a Pennsylvania auto factory, but at the time it seemed the land of the rising sun was buying up just about every other sector as well.  It was most evident in real estate, with massive buying of commercial properties on the West Coast. According to the LA Times, Japanese buyers poured nearly $17 billion into U.S. property at the peak… Read More

I remember watching the movie Gung Ho in 1986 and wondering along with the rest of the country if Japan was going to buy the red, white and blue in its entirety. The movie was about a Japanese acquisition of a Pennsylvania auto factory, but at the time it seemed the land of the rising sun was buying up just about every other sector as well.  It was most evident in real estate, with massive buying of commercial properties on the West Coast. According to the LA Times, Japanese buyers poured nearly $17 billion into U.S. property at the peak in 1988 and owned almost half (45%) of the premium downtown office space in Los Angeles by the early 1990s. #-ad_banner-#The real estate frenzy helped the FTSE NAREIT U.S. Real Estate Index jump an annualized 15.6% over the decade through 1989, sending prices and investor sentiment higher. The index is up less than half that at an annualized pace of 7.4% over the decade through 2015 but that may be about to change.  New buyers have emerged from the east and it’s starting to look like the 1980s all over again. Commercial Real Estate Has A New Deep-Pocket Buyer… Read More