Investing Basics

When a business changes its name, it’s usually a big deal.  You see, it can cost millions for a company to rebrand itself under a different name. It has to change its signage, advertising copy, and a million other things. It’s a task not to be taken lightly. For example, when Kentucky Fried Chicken changed its name to KFC (NYSE: YUM), it did so to get the word “fried” out of its advertising in an age of health-conscious customers. Cigarette maker Phillip Morris did the same when they rebranded to Altria (NYSE: MO) in 2003. The political pressures associated with… Read More

When a business changes its name, it’s usually a big deal.  You see, it can cost millions for a company to rebrand itself under a different name. It has to change its signage, advertising copy, and a million other things. It’s a task not to be taken lightly. For example, when Kentucky Fried Chicken changed its name to KFC (NYSE: YUM), it did so to get the word “fried” out of its advertising in an age of health-conscious customers. Cigarette maker Phillip Morris did the same when they rebranded to Altria (NYSE: MO) in 2003. The political pressures associated with “big tobacco” created a need for a less caustic moniker.  But it’s important to understand that neither KFC nor Altria changed their businesses. They still sell fried chicken and tobacco respectively. They just do it under more appealing names.  #-ad_banner-#Now, companies don’t just change their names to avoid negative connotations. Some companies try desperately to take advantage of some prevailing social trend. This was never more obvious than when companies added “.com” to their names during the tech craze in the late 1990s.  This was confirmed in a research article that indicates firms that added “.com”… Read More

Canadian officials warned on January 10 of increasing likelihood that the United States would give six months’ notice of withdrawal from NAFTA. Negotiations have moved little in five rounds of talks with the sixth scheduled on January 23 in Montreal. Renegotiating the 25-year trade old agreement was always going to be difficult. Trade between the three North American countries (the United States, Mexico, and Canada) tops $1 trillion and the prevailing business model in several industries is built around the cross-border agreement. To make matters worse, political events this year could put up a roadblock to… Read More

Canadian officials warned on January 10 of increasing likelihood that the United States would give six months’ notice of withdrawal from NAFTA. Negotiations have moved little in five rounds of talks with the sixth scheduled on January 23 in Montreal. Renegotiating the 25-year trade old agreement was always going to be difficult. Trade between the three North American countries (the United States, Mexico, and Canada) tops $1 trillion and the prevailing business model in several industries is built around the cross-border agreement. To make matters worse, political events this year could put up a roadblock to the negotiation process.  The market is still optimistic that the three governments can avoid the cataclysm that would result from a complete scrapping of the agreement, but at this point it’s not looking good.  #-ad_banner-#A termination of NAFTA could be the year’s biggest market mover and it will be tough finding winners in the fallout. Will NAFTA Fall Apart? Canada and Mexico have both rejected U.S. hardline requests of a five-year automatic termination clause, the elimination of dispute panels and stricter rules on auto and dairy. That has stalled negotiations and prompted many to believe President Trump may give… Read More

I have no doubt there will be a massive bear market within 15 months from today. After a decade of bullish fever, I expect the coming bear market to be devastating for unprepared investors. —Recommended Link— Larry Claims He Makes $213,000 A Year Using This System On average, a handful of investors quietly make $1,543 a month with this simple, 3-step system. Some, like Larry from Washington, will bank 6-figures this year. To find out what you’re missing, click here NOW… I am not the only one who thinks the bear will soon awaken. Major hedge fund managers like… Read More

I have no doubt there will be a massive bear market within 15 months from today. After a decade of bullish fever, I expect the coming bear market to be devastating for unprepared investors. —Recommended Link— Larry Claims He Makes $213,000 A Year Using This System On average, a handful of investors quietly make $1,543 a month with this simple, 3-step system. Some, like Larry from Washington, will bank 6-figures this year. To find out what you’re missing, click here NOW… I am not the only one who thinks the bear will soon awaken. Major hedge fund managers like Ray Dalio and Tudor Jones are sending out warning missives about the pending bear. #-ad_banner-#Dalio told the Greenwich Economic Forum, “The world, by and large, is leveraged long. When there is a downturn, I don’t think there’s much to protect investors.” At the same conference, Jones theorized that he expects the credit bubble to pop in response to the recent tax cuts. Jones said: “The ratio of debt in the world relative to the gross domestic product is at an all-time high, but the reason no one talks about it or gets alarmed is you could have said that virtually… Read More

I’ll be the first to admit it — I don’t understand bitcoin. I don’t have a clue about what blockchain technology entails. What I do understand is that when EVERYONE is talking about an investment from the man on the street to the nightly news, something’s up.  Anecdotal evidence: One of my sons rode two hours to a friend’s hunting camp over the holidays. His friend’s dad, a smart but regular guy who doesn’t invest outside of the mutual funds in his 401(k), talked about nothing but the urgency to buy bitcoin.  Cue the railroad-crossing warning lights and bells. #-ad_banner-#As… Read More

I’ll be the first to admit it — I don’t understand bitcoin. I don’t have a clue about what blockchain technology entails. What I do understand is that when EVERYONE is talking about an investment from the man on the street to the nightly news, something’s up.  Anecdotal evidence: One of my sons rode two hours to a friend’s hunting camp over the holidays. His friend’s dad, a smart but regular guy who doesn’t invest outside of the mutual funds in his 401(k), talked about nothing but the urgency to buy bitcoin.  Cue the railroad-crossing warning lights and bells. #-ad_banner-#As a greenhorn, I remember the same kind of frenzy, albeit on a much larger scale, surrounding tech stocks. At neighborhood barbecues, chamber of commerce functions, and even your dentist appointment, everything was tech stocks and tech stocks were everything.  However, few people had a real grasp on this wondrous new technology, let alone how to discern winners from losers. This resulted in bad investment choices and squandered money. With stock markets grinding to record highs and seemingly incessant cryptocurrency get-rich-quick noise, it’s easy to forget what truly works over the long haul. So, now’s probably a great opportunity to revisit… Read More

Mid-term elections may be a non-event for many Americans, but this year’s could be a major market-mover. All 435 seats in the House of Representatives are up for election and 33 of the 100 Senate seats will be in play.  As politics have become more partisan, it seems the effect of legislative control has increased on specific sectors and industries. As party policies and agenda have aligned with particular industries, companies in those industries benefit from improvement in investor sentiment when the current of control changes in Washington. And if history is any guide, the change in Washington may not… Read More

Mid-term elections may be a non-event for many Americans, but this year’s could be a major market-mover. All 435 seats in the House of Representatives are up for election and 33 of the 100 Senate seats will be in play.  As politics have become more partisan, it seems the effect of legislative control has increased on specific sectors and industries. As party policies and agenda have aligned with particular industries, companies in those industries benefit from improvement in investor sentiment when the current of control changes in Washington. And if history is any guide, the change in Washington may not be a change in the current but a massive tidal wave. #-ad_banner-#​History Has Not Been Kind To The Controlling Party Mid-term elections almost always go badly for the party that holds White House, especially when it controls Congress as well.  In the last 18 midterm elections since World War II, the party that held the White House lost an average of 25 House seats and 4 Senate seats. Losses tend to increase when the same party controls Congress and the Presidency, with an average loss of 33 House seats and 5 Senate seats. Public mistrust… Read More

Have you ever wondered why some investors consistently profit from the financial markets while the majority barely break even or even lose money over time? It almost seems that these winning investors have some secret formula or magical ability to extract money from the markets year after year. —Recommended Link— New Dividend Program Lets You Pick Your Pay Date We call it “dividends on demand” because you can schedule a payment whenever you want. And they’re often bigger than a regular dividend. If you have $15k, it’s our favorite way to… Read More

Have you ever wondered why some investors consistently profit from the financial markets while the majority barely break even or even lose money over time? It almost seems that these winning investors have some secret formula or magical ability to extract money from the markets year after year. —Recommended Link— New Dividend Program Lets You Pick Your Pay Date We call it “dividends on demand” because you can schedule a payment whenever you want. And they’re often bigger than a regular dividend. If you have $15k, it’s our favorite way to pile up cash. I’ll admit, this question has bothered me. I knew there must be a simple reason why some investors are consistently lucky, and others are not. I knew it had little to do with intelligence or even education. I have known many highly educated and intelligent investors who have a tough time earning consistent money from the markets. At the same time, I know several “regular Joe” types with no more than a high school diploma who earn substantial income by investing in the stock market.  After much research and thought, I have determined that the difference between… Read More

Through the initial weeks of 2018, my mind keeps drifting back to the people and books that helped shape my investment philosophy. Having spent some time on Wiley Finance’s pre-publication finance book review distribution list, I own hundreds of financial books, including many I have purchased on my own.  One of my first tasks as a journalist was to interview financial book authors, hedge fund managers, and other luminaries. I was fortunate enough to meet and converse with dozens of authors, hedge fund managers, traders, investors and even a few financial rogues.  This experience was mind-blowing to say the least. Read More

Through the initial weeks of 2018, my mind keeps drifting back to the people and books that helped shape my investment philosophy. Having spent some time on Wiley Finance’s pre-publication finance book review distribution list, I own hundreds of financial books, including many I have purchased on my own.  One of my first tasks as a journalist was to interview financial book authors, hedge fund managers, and other luminaries. I was fortunate enough to meet and converse with dozens of authors, hedge fund managers, traders, investors and even a few financial rogues.  This experience was mind-blowing to say the least. Being able to ask successful investors and other market winners pointed questions regarding their experience and ideas was instrumental in shaping my entire investing belief system.  All of these one-on-one brain probes were combined with hands-on, in-the-trenches, active investing experience. I quickly discovered that 90% of all investment books are nothing more than rehashed old wives tales, page-filling anecdotes, repetitive information, and ideas that only work in hindsight.  #-ad_banner-#In other words, there is a tremendous amount of useless noise in the world of investment books and very little actionable, working information.  However, a few books have been massively influential in… Read More

I’m a pilot. No, I’m not a professional pilot with thousands of hours of experience in multiple jet engines. I’m just a guy who likes to get into a single-engine Piper and take to the skies for fun. But I share a common trait with professional pilots. Before I ever strap in for a flight, I meticulously check (and re-check) the weather. Then I pre-flight my plane as if my life depended on it — because, frankly, it does! Once I’m done with my pre-flight, the weather is checked one last time. You see, most general aviation crashes involve pilot… Read More

I’m a pilot. No, I’m not a professional pilot with thousands of hours of experience in multiple jet engines. I’m just a guy who likes to get into a single-engine Piper and take to the skies for fun. But I share a common trait with professional pilots. Before I ever strap in for a flight, I meticulously check (and re-check) the weather. Then I pre-flight my plane as if my life depended on it — because, frankly, it does! Once I’m done with my pre-flight, the weather is checked one last time. You see, most general aviation crashes involve pilot error in dealing with weather. And weather can change fast. It’s not uncommon to take-off from an airport in clear skies and return an hour later to angry cumulus clouds.  #-ad_banner-#And since the majority of general aviation aircraft aren’t capable of reaching altitudes required to fly over heavy weather, avoiding it is the most prudent thing any private pilot can do. This is why many general aviation pilots consider themselves amateur meteorologists. It’s an act of self-preservation. What does this have to do with investing? In much the way I check, and re-check, the weather before flying, I constantly monitor… Read More

What an incredible year! 2017 smashed records as an investor’s dream year. While overshadowed by the cryptocurrency explosion, led by bitcoin’s 1,300% plus gains, the major stock market indexes surged to all-time highs. The Nasdaq jumped 26%, while the Dow Jones Industrial Average added 22%, and the S&P 500 soared over 17%, creating massive wealth among investors. As expected, stock market fever gripped the nation. Usually cautious institutional players threw caution to the wind, as evidenced by the volatility index plunging nearly 22%. The unwinding of derivative hedges, designed to protect against market corrections, became common as the big players… Read More

What an incredible year! 2017 smashed records as an investor’s dream year. While overshadowed by the cryptocurrency explosion, led by bitcoin’s 1,300% plus gains, the major stock market indexes surged to all-time highs. The Nasdaq jumped 26%, while the Dow Jones Industrial Average added 22%, and the S&P 500 soared over 17%, creating massive wealth among investors. As expected, stock market fever gripped the nation. Usually cautious institutional players threw caution to the wind, as evidenced by the volatility index plunging nearly 22%. The unwinding of derivative hedges, designed to protect against market corrections, became common as the big players piled into stocks.  The bullish excitement goes far beyond the stock market.  It appears we are on the verge of a total economic paradigm shift. Cryptocurrencies, once thought of as just imaginary currency, are in the process of turning mainstream. Major institutions and retailers are in the process of implementing the many benefits of blockchain and cryptocurrency into their operations.  #-ad_banner-#The shift from centrally-backed paper currency to a decentralized, digital currency backed by the immutable proofs of blockchain will change our world in ways not even imagined.  Not to mention the thriving small business sector in the United States. Fueled… Read More

The stock market is a tricky beast. It seems to wildly reward some investors while others struggle to turn a consistent profit.  It almost appears that winning investors possess some magical or psychic ability to earn long-term wealth from the fickle stock market. Even in massive bull runs like last… Read More