Growth Investing

Today I want to tell you about a strategy that could make you a lot of money. You probably haven’t heard much about it. That’s because up until recently, our publishers made this investing system available only to a select group of loyal StreetAuthority readers. But now, we’re ready to open it up to the wider public. #-ad_banner-#First, a little background…  This system comes on the back of about three and a half years of development. We compiled a motley crew of experts to build it: two StreetAuthority veterans, a licensed, Certified Market Technician (CMT), an accountant, a financial advisor,… Read More

Today I want to tell you about a strategy that could make you a lot of money. You probably haven’t heard much about it. That’s because up until recently, our publishers made this investing system available only to a select group of loyal StreetAuthority readers. But now, we’re ready to open it up to the wider public. #-ad_banner-#First, a little background…  This system comes on the back of about three and a half years of development. We compiled a motley crew of experts to build it: two StreetAuthority veterans, a licensed, Certified Market Technician (CMT), an accountant, a financial advisor, and even a college-aged computer whiz.  Needless to say, each of these team members brought their own unique expertise to the table — and each had their own strong opinions about “what works” in the world of investing.  After spending countless hours reading through academic research, building computer algorithms and backtesting results, the team came up with a system that we think could make you more money in the stock market than anything we’ve ever created before. In short: it solves one of the most common problems every investor faces — how to get bigger gains in a shorter amount… Read More

A sharp market correction affords keen-eyed investors buying opportunities for suddenly undervalued stocks, as we found throughout January. But what to do when the market starts to rebound? Shares of high-quality companies often bounce back beyond bargain levels before the rest of the pack. Is it truly too late to find short-term winners? After all, the market remains way below its recent highs. What’s the best way to identify those stocks likely to lead the averages in the coming weeks and months? #-ad_banner-#One answer: relative strength. Relative strength is an indicator of a stock’s performance relative to a benchmark, normally… Read More

A sharp market correction affords keen-eyed investors buying opportunities for suddenly undervalued stocks, as we found throughout January. But what to do when the market starts to rebound? Shares of high-quality companies often bounce back beyond bargain levels before the rest of the pack. Is it truly too late to find short-term winners? After all, the market remains way below its recent highs. What’s the best way to identify those stocks likely to lead the averages in the coming weeks and months? #-ad_banner-#One answer: relative strength. Relative strength is an indicator of a stock’s performance relative to a benchmark, normally a broad stock index such as the S&P 500. If, say, Microsoft shares are up 10% over a two-week period and the S&P 500 is up 5% during that period, Microsoft’s Beta (a measure of relative strength) is 2.0 during that time. It’s a strong indication that — at least in the short run — investors are more enthusiastic about Microsoft than they are about the market as a whole. Why? For our purposes, that doesn’t matter. All we need to know is that Microsoft is exhibiting relative strength vs. the market. What’s key here is that history shows that… Read More

China has taken the spotlight lately and GDP growth at its lowest in more than two decades is contributing to the worst January on the stock market  since 1970. The hopes of thousands of companies looking for double-digit Chinese growth to save sluggish developed market sales seems to be falling apart. But talk of a ‘two-speed economy’ is emerging for the nation of 1.39 billion and there might yet be hope for investors.  #-ad_banner-#Looking deeper into the data, I’ve found some sectors and industries posting quarterly and annual growth. In fact, annual growth in one industry is forecast at nearly… Read More

China has taken the spotlight lately and GDP growth at its lowest in more than two decades is contributing to the worst January on the stock market  since 1970. The hopes of thousands of companies looking for double-digit Chinese growth to save sluggish developed market sales seems to be falling apart. But talk of a ‘two-speed economy’ is emerging for the nation of 1.39 billion and there might yet be hope for investors.  #-ad_banner-#Looking deeper into the data, I’ve found some sectors and industries posting quarterly and annual growth. In fact, annual growth in one industry is forecast at nearly 20% for at least three more years.  One company is about to capitalize on that growth. It’s not the hyped investment that everyone knows but a smaller rival that may get a big boost from a smaller base as it gets into the China game. Not All Of China Is Slowing China’s slowing growth has been an overhang for years but seems to have boiled over on the fourth quarter GDP report. Economic growth in the world’s second largest economy slowed to just 6.8% and finished 2015 at the slowest pace in 25 years. Power generation saw its first… Read More

One of the best things about quantitative indicators is that they do not discriminate. Unlike investors, they cannot be swayed by emotions. They do not care if a stock is loved or hated, big or small, well-known or obscure. All that matters is cold, hard facts, and that is something I can get behind. #-ad_banner-#Now, that’s not to say all indicators work well. To the contrary, many are garbage. But when you find one that works, it’s like striking gold. When Profitable Trading developed a new indicator based on momentum two years ago, we spent hundreds of hours backtesting it. Read More

One of the best things about quantitative indicators is that they do not discriminate. Unlike investors, they cannot be swayed by emotions. They do not care if a stock is loved or hated, big or small, well-known or obscure. All that matters is cold, hard facts, and that is something I can get behind. #-ad_banner-#Now, that’s not to say all indicators work well. To the contrary, many are garbage. But when you find one that works, it’s like striking gold. When Profitable Trading developed a new indicator based on momentum two years ago, we spent hundreds of hours backtesting it. And it quickly became the most successful indicator in our company’s history. This unique indicator is designed to find stocks right before they soar. And that’s exactly what it does. In the past few years, it’s tagged over 100 stocks right before they broke out to the upside. In 2015, we closed out winners of up to 88%. In fact, for two years in a row, this indicator spotted several of the best-performing stocks of the year, ones that went on to gain as much as 242%. At the beginning of each year, we compile a list of the top… Read More

Let me start off by saying that today’s essay is not for everyone. But as Chief Investment Strategist for Game-Changing Stocks, it’s my job to bring readers the best aggressive growth investing opportunities the market has to offer.  If it just so happens to come from an industry that some find morally objectionable, then so be it. #-ad_banner-#But I received a question from a subscriber the other day that I know many of our readers have been wondering about: Should I invest in marijuana stocks? If so, which ones should I be looking at? Most Americans, about 62%, live in… Read More

Let me start off by saying that today’s essay is not for everyone. But as Chief Investment Strategist for Game-Changing Stocks, it’s my job to bring readers the best aggressive growth investing opportunities the market has to offer.  If it just so happens to come from an industry that some find morally objectionable, then so be it. #-ad_banner-#But I received a question from a subscriber the other day that I know many of our readers have been wondering about: Should I invest in marijuana stocks? If so, which ones should I be looking at? Most Americans, about 62%, live in states where cannabis of some sort is legal for medical or recreational use. And more states are either legalizing marijuana or taking fairly significant action to decriminalize.  This is a good move. In fact, had Ohio approved its recent legalization initiative, the pro-cannabis United States would have, for the first time, had enough votes in the Electoral College to decide the presidency.  Cannabis is not a drug. Cannabis is food. I know that’s a controversial statement, but I believe it. There is a scientific basis for this: Our bodies contain two types of receptors, CB1 and CB2, whose sole function… Read More

As I write this, the bull market has lasted for 2,473 days, making it the third-longest in U.S. history. The record is 4,494 days from 1987 to 2000, followed by the period from 1949 to 1956. While 2016 may well emerge as the best year the market has ever seen — and presidential election years are typically above average — the evidence I’m seeing suggests standout performance is not likely. The most optimistic forecast I’ve come across for 2016 has been “high single digits.” #-ad_banner-#That’s hardly a barn-burner. But these predictions… Read More

As I write this, the bull market has lasted for 2,473 days, making it the third-longest in U.S. history. The record is 4,494 days from 1987 to 2000, followed by the period from 1949 to 1956. While 2016 may well emerge as the best year the market has ever seen — and presidential election years are typically above average — the evidence I’m seeing suggests standout performance is not likely. The most optimistic forecast I’ve come across for 2016 has been “high single digits.” #-ad_banner-#That’s hardly a barn-burner. But these predictions are defensible based on the available evidence. Growth in the developed world is hardly robust. Estimates call for 3% growth in the United States and 2% in the European Union, which puts the majority of the world economy in low gear. Commodities are losing steam. Oil is trading for about $30 a barrel, more than $110 off its all-time high. This downtrend is also evident in the agriculture space, and even precious metals. Gold may well settle below $1,000 an ounce for the first time in recent memory, and silver isn’t faring any better. Read More

With markets tumbling everywhere you look, I’ve started shifting focus to the Best of Breed stocks that will weather a correction… or worse. If economic growth slows or if investors just get a little jittery, I want to be in stocks that dominate their market and have rock-solid balance sheets to get them over a rough spot. While market weakness or general economic disappointment might weigh on these stocks, they’ll be able to withstand the environment far better than competitors and will emerge stronger.  #-ad_banner-#One of my favorite Best of Breed stocks isn’t resting on a huge lead within its… Read More

With markets tumbling everywhere you look, I’ve started shifting focus to the Best of Breed stocks that will weather a correction… or worse. If economic growth slows or if investors just get a little jittery, I want to be in stocks that dominate their market and have rock-solid balance sheets to get them over a rough spot. While market weakness or general economic disappointment might weigh on these stocks, they’ll be able to withstand the environment far better than competitors and will emerge stronger.  #-ad_banner-#One of my favorite Best of Breed stocks isn’t resting on a huge lead within its market, it’s expanding into other markets and cross-selling new products. While competitors will see lower sales on any economic pullback, this company may actually increase sales as customers entrench their business with one provider that can provide bundled discount offers.  This Best of Breed Is Expanding Its Market Red Hat (NYSE: RHT) is the de facto source for the Linux open source operating system. Popularity of the Linux OS has grown and it now drives more than half of all servers with Red Hat supporting 75% of paid Linux deployments. The company has a strong competitive advantage in its… Read More

It’s been clear for years now that those who bet on the demise of major automakers were on the wrong side of history.  A report this week confirmed that car makers are doing just fine, thank you. About 17.5 million cars and trucks were sold in the United States last year, beating the previous record of 17.3 million set in 2000. Last year’s tally represented a 6% increase from 2014 and was up 68% from the 10.4 million sold in 2009. Americans spent a whopping $437 billion on cars and trucks last year, and that number has risen for six… Read More

It’s been clear for years now that those who bet on the demise of major automakers were on the wrong side of history.  A report this week confirmed that car makers are doing just fine, thank you. About 17.5 million cars and trucks were sold in the United States last year, beating the previous record of 17.3 million set in 2000. Last year’s tally represented a 6% increase from 2014 and was up 68% from the 10.4 million sold in 2009. Americans spent a whopping $437 billion on cars and trucks last year, and that number has risen for six straight years. #-ad_banner-#In some ways, 2015 was a perfect environment for vehicle sales. More Americans have jobs (unemployment dropped to only 5%) and gasoline prices fell sharply along with the price of oil — at year-end, the average price nationally was $2.03 a gallon, down 28 cents from the year-earlier price. And interest rates were at rock bottom most of the year, as the Federal Reserve raised interest rates only in mid-December. Meanwhile, many Americans have been deferring new-car purchases; the average car on the road is more than 11 years old. It’s a far cry from the auto industry’s… Read More

The weather phenomenon El Nino is bringing the much need moisture to the west, where places like California are suffering from a four-year drought. And the early signs of snow pleased many snow enthusiasts, while allowing many ski resorts to open early.   Colder temperatures also bring the possibility of thicker profits for many companies that rely heavily on seasonal trends. Companies like Douglas Dynamics (NYSE: PLOW) which supplies snow and ice removal equipment and Arctic Cat (Nasdaq: ACAT) which sells all-terrain vehicles, notably its snowmobile lineup, lean heavily on the hope for a good winter to boost… Read More

The weather phenomenon El Nino is bringing the much need moisture to the west, where places like California are suffering from a four-year drought. And the early signs of snow pleased many snow enthusiasts, while allowing many ski resorts to open early.   Colder temperatures also bring the possibility of thicker profits for many companies that rely heavily on seasonal trends. Companies like Douglas Dynamics (NYSE: PLOW) which supplies snow and ice removal equipment and Arctic Cat (Nasdaq: ACAT) which sells all-terrain vehicles, notably its snowmobile lineup, lean heavily on the hope for a good winter to boost sales. #-ad_banner-#But there are two companies that stand above the rest when it comes to finding the best stocks to take advantage of winter. Winter Basics Before you can take advantage of all that winter offers you must first be prepared. Having the proper outerwear can be the difference between a great time and a miserable time when either out on the mountain or walking the ski village in Vail, Colorado. And if you’re looking for some great gear then look no further than the Portland, Oregon based Columbia Sportswear (Nasdaq: COLM). The outdoor apparel and equipment company operates… Read More

Last week, I discussed why aerospace and defense stocks could be among the market’s biggest winners over the next two years. #-ad_banner-#Essentially, Congress and President Obama have unfrozen the defense budget from spending caps, agreeing to spend $37 billion more than expected over the next two fiscal years. The bottom line: instead of a continuation of steep spending cuts in defense, the budget will actually increase for the first time in six years. And no one is breathing a bigger sigh of relief than defense contractors, many of whose revenues and earnings depend substantially on Department of Defense procurement. While… Read More

Last week, I discussed why aerospace and defense stocks could be among the market’s biggest winners over the next two years. #-ad_banner-#Essentially, Congress and President Obama have unfrozen the defense budget from spending caps, agreeing to spend $37 billion more than expected over the next two fiscal years. The bottom line: instead of a continuation of steep spending cuts in defense, the budget will actually increase for the first time in six years. And no one is breathing a bigger sigh of relief than defense contractors, many of whose revenues and earnings depend substantially on Department of Defense procurement. While the budget agreement only covered the next two years, analysts expect that regardless of who is elected president next November, defense spending will continue to rise in the coming years.  Here are two more stocks that also are likely to capitalize on the trend: Boeing (NYSE: BA) is the world’s largest aerospace company and one of the largest defense contractors in the world. With Airbus (OTC: EADSY), it is one of only two major makers of commercial wide-body aircraft. Its business is split among commercial aircraft, defense and space — all of them growth sectors in… Read More