Investing Basics

This year’s Nobel Prize in Economics was awarded to Dr. Richard Thaler for his work on behavioral economics. Thaler has done a great deal of work to understand the stock market. Some economists start with the assumption that individuals make rational decisions when faced with economic choices, including how to invest in the stock market. Thaler took a different approach based on what he saw in the real world — that people aren’t always rational. —Sponsored Link— Forbes Mag Says This Strategy Is ‘Like Finding Money In The Street’ And Reuters magazine calls this type… Read More

This year’s Nobel Prize in Economics was awarded to Dr. Richard Thaler for his work on behavioral economics. Thaler has done a great deal of work to understand the stock market. Some economists start with the assumption that individuals make rational decisions when faced with economic choices, including how to invest in the stock market. Thaler took a different approach based on what he saw in the real world — that people aren’t always rational. —Sponsored Link— Forbes Mag Says This Strategy Is ‘Like Finding Money In The Street’ And Reuters magazine calls this type of trading “the new baby boomer hobby.” An anonymous trader — living at the base of the Smoky Mountains — just released a free report revealing a step-by-step system to generating an extra $5,000 per month in income thanks to this trading strategy. The report is free until Sunday. Click here for the FREE REPORT… Thaler’s research found that, when faced with the need to make a decision in the face of uncertainty, people resort to heuristics, or an approach to problem solving where an individual uses their knowledge from past experience to make a decision. … Read More

There’s no doubt about it, the market is downright bullish. In fact, the S&P 500 hasn’t experienced a decline of at least 3% since Nov. 7, 2016. As I’m writing this, that amounts to an incredible 240 trading days without so much as a pause for this bull market.  The current record is 241 trading days, which happened between Jan. 26, 1995 and Jan. 9, 1996. That means that, assuming the market doesn’t fall by more than 3% in the next few days, the S&P 500 will set yet another new record this week. —Sponsored Link—… Read More

There’s no doubt about it, the market is downright bullish. In fact, the S&P 500 hasn’t experienced a decline of at least 3% since Nov. 7, 2016. As I’m writing this, that amounts to an incredible 240 trading days without so much as a pause for this bull market.  The current record is 241 trading days, which happened between Jan. 26, 1995 and Jan. 9, 1996. That means that, assuming the market doesn’t fall by more than 3% in the next few days, the S&P 500 will set yet another new record this week. —Sponsored Link— This 90 Percent-Plus Strategy Accounted For A 700 Percent ROI This proprietary sequence of steps has helped produce a 98% win rate over eight years! Use the same steps to implement this strategy whether the market is going up, down or sideways. Tap here to learn this 98% win rate. To put this into perspective, there’s only been five other times where the market even went 100-plus days without a pullback of at least 3%. No. 3 on the list is 162 days. Does this mean we’re due for a market… Read More

President Donald Trump is perhaps the most polarizing U.S. president of all time. Despite his sometimes-questionable rhetoric, one thing has remained constant throughout his campaign and presidency: Trump is 100% in support of American business. Throughout the election and into his time in office, Trump’s pro-business stance has given confidence to investors, who have sent the stock market soaring higher. Less than a year into his term, indexes are sitting near all-time highs and bullish sentiment is bursting at the seams.  Among the most talked about plans of the new administration is tax reform. While large corporations stand to gain… Read More

President Donald Trump is perhaps the most polarizing U.S. president of all time. Despite his sometimes-questionable rhetoric, one thing has remained constant throughout his campaign and presidency: Trump is 100% in support of American business. Throughout the election and into his time in office, Trump’s pro-business stance has given confidence to investors, who have sent the stock market soaring higher. Less than a year into his term, indexes are sitting near all-time highs and bullish sentiment is bursting at the seams.  Among the most talked about plans of the new administration is tax reform. While large corporations stand to gain the most from the potential changes, everyday investors will likely also benefit.  What To Expect From Trump’s Tax Plan 1. Higher Dividends Income investors rejoice! One of the most appealing effects of Trump’s proposed tax reform will be higher dividends across the board.  #-ad_banner-#The President has stated that he wants to slash the corporate rate all the way down to 20% from the current 35%. Primarily designed to incentivize corporations from fleeing the United States in search of lower rates, the tax plan represents $1.8 trillion in tax savings over the next decade. This inflow of wealth will… Read More

When I’m introduced to new people and they learn that I’m in the financial publishing business, it’s always interesting to see what their follow-up question or comment will be. Some ask me for a stock tip or want my take on the latest fad in the market. Others, assuming they’re interested, like to talk about Warren Buffett.  —Sponsored Link— Silicon Valley Exec: 3 Ways To Get Rich On Self-Driving Cars  Most investors don’t realize how quickly self-driving cars are advancing. In fact, by the end of 2017, fully self-driving cars could reach the mass market. Read More

When I’m introduced to new people and they learn that I’m in the financial publishing business, it’s always interesting to see what their follow-up question or comment will be. Some ask me for a stock tip or want my take on the latest fad in the market. Others, assuming they’re interested, like to talk about Warren Buffett.  —Sponsored Link— Silicon Valley Exec: 3 Ways To Get Rich On Self-Driving Cars  Most investors don’t realize how quickly self-driving cars are advancing. In fact, by the end of 2017, fully self-driving cars could reach the mass market. This is the hottest trend in technology right now. And if you act quickly, you could make a fortune. I’ve used my decades of experience as a Silicon Valley executive to identify three key self-driving stocks that could make you a fortune this year. I’m always glad when people want to talk about Buffett — especially novice investors. It’s a sign of wisdom to be sure.  It’s easy to like Buffett. You may not like his politics, you may think the annual shareholder meeting has turned into a circus, but I tend to think anybody who… Read More

Every investor feels the pain and pleasure of stock price moves. Even the smallest move up or down can lead otherwise rational people to trade based more on emotions than facts. While a few disciplined investors stick to objective rules, the vast majority impulsively react to market swings. The key to successful stock market investing is to be one of those disciplined investors.  Systematic investing is a time-proven method of extracting money from the stock market. Logical, established systems for making buy/sell decisions remove an investor’s emotions from the equation. Systems can range from simple calculations used by individuals to… Read More

Every investor feels the pain and pleasure of stock price moves. Even the smallest move up or down can lead otherwise rational people to trade based more on emotions than facts. While a few disciplined investors stick to objective rules, the vast majority impulsively react to market swings. The key to successful stock market investing is to be one of those disciplined investors.  Systematic investing is a time-proven method of extracting money from the stock market. Logical, established systems for making buy/sell decisions remove an investor’s emotions from the equation. Systems can range from simple calculations used by individuals to the ultra-complex, computer-driven algorithms employed by hedge funds, institutions, and professional traders. While financial advisors and other money managers have used algorithmic decision-making software for some time, it has only been since 2008 that regular individual investors have been able to access this software on their own. Known as robo-advisors, these automated investing platforms for the masses have become wildly popular over the last few years. Depending on your own susceptibility to impulsive trading, robo-advisors may make sense for a portion or even your entire portfolio.  Here are three things you need to know about robo-advisors. #-ad_banner-#​1. They Are Not… Read More

Can the stock market go any higher?  This is the number-one question I’ve been hearing from investors recently. The Dow Jones Industrial Average, considered by many to be the most important market barometer, is higher by roughly 20% over the last year. An all-time high of 22,179 posted just a few weeks ago triggered massive bullish fever. The question is, will 22,179 continue to mark the all-time high for the next several years or will the bulls continue to push stocks into the stratosphere?  #-ad_banner-#The evidence is saying that the bulls are wrong and 22,179 will be the historical high… Read More

Can the stock market go any higher?  This is the number-one question I’ve been hearing from investors recently. The Dow Jones Industrial Average, considered by many to be the most important market barometer, is higher by roughly 20% over the last year. An all-time high of 22,179 posted just a few weeks ago triggered massive bullish fever. The question is, will 22,179 continue to mark the all-time high for the next several years or will the bulls continue to push stocks into the stratosphere?  #-ad_banner-#The evidence is saying that the bulls are wrong and 22,179 will be the historical high for the DJIA through the end of 2018. To be clear, the DJIA will go higher in the future. In fact, it will go much higher over the next decade. However, for now, the top has posted.  Remember, the S&P 500 is higher by over 250% since the 2009 bottom. We are in the midst of an almost 100-month advance across the major stock market indexes, and valuations are pushing traditional limits. My prediction is based on a combination of five factors that mark the top of the market. Any one of these signs is a bearish signal, but the… Read More

As markets continue to rise, volatility has been near record lows. But in the past couple of weeks, we’ve seen glimpses of a return to volatility — and a possible pullback in the works.  People forget what that’s like. They get lulled into a sense of complacency when the stock market — and their own personal portfolio — is gradually pacing up each and every day. But remember: this isn’t normal. A pullback is bound to happen sooner or later. A full-blown “correction” (when the market drops 10% or more) is completely normal. That’s why I recently interviewed our very… Read More

As markets continue to rise, volatility has been near record lows. But in the past couple of weeks, we’ve seen glimpses of a return to volatility — and a possible pullback in the works.  People forget what that’s like. They get lulled into a sense of complacency when the stock market — and their own personal portfolio — is gradually pacing up each and every day. But remember: this isn’t normal. A pullback is bound to happen sooner or later. A full-blown “correction” (when the market drops 10% or more) is completely normal. That’s why I recently interviewed our very own Jared Levy to get his take on the market, what’s going on in Washington D.C., his strategy, and what kind of trades he’s making recently. What follows is part one of a conversation we had within StreetAuthority Insider — a free newsletter reserved for premium StreetAuthority subscribers only. Stay tuned for part two tomorrow… —Sponsored Link— Small Group Uncovers Millionaire’s Simple Stock-Picking Strategy With no Wall Street experience, a chemical engineer at DuPont accidentally uncovered a powerful pattern that often appears just before a stock’s share price doubles, triples, or even quadruples — seemingly… Read More

By just about any measure, one of the hardest things for an investor to do is decide when the time is ripe to start selling some, or all, of a portfolio. For me, that time has arrived. Now, don’t get me wrong. I’m not selling my entire portfolio and moving to cash. But it is time to sell some of my holdings because, for me, the market is getting into dangerous territory.  And I’m becoming more convinced a correction is coming. Here’s why… #-ad_banner-#The Federal Reserve has acted stupidly in keeping interest rates at artificially low levels for such a… Read More

By just about any measure, one of the hardest things for an investor to do is decide when the time is ripe to start selling some, or all, of a portfolio. For me, that time has arrived. Now, don’t get me wrong. I’m not selling my entire portfolio and moving to cash. But it is time to sell some of my holdings because, for me, the market is getting into dangerous territory.  And I’m becoming more convinced a correction is coming. Here’s why… #-ad_banner-#The Federal Reserve has acted stupidly in keeping interest rates at artificially low levels for such a long time. And because real long-term interest rates remain artificially low, any sudden bond market sneeze could blow the lid off the stock market. You see, should the bubble burst in the bond market, rates are likely to rocket higher over a relatively short time. Now, you may ask what might precipitate such an event? Janet Yellen has made known her desire to unwind the Fed’s balance sheet. I say “amen” to that. But doing so at a time when interest rates are rising is fraught with danger. That’s because when the central bank withdraws liquidity by selling its bond… Read More

After a 25%-plus move higher this year, many investors are starting to get nervous about the odds of additional upside in emerging-market equities. The market, however, is sending far different signals. The upward surge is far from over. In fact, it may still be in its infancy. There are seven important factors telling me to hold on to my bullish expectations for the sector.  Why I Think Emerging Markets Are Only Going Up 1. Economic Growth Developed markets are experiencing a growth slowdown while emerging markets are in a long-term expansion phase.  While developed markets are forecasted… Read More

After a 25%-plus move higher this year, many investors are starting to get nervous about the odds of additional upside in emerging-market equities. The market, however, is sending far different signals. The upward surge is far from over. In fact, it may still be in its infancy. There are seven important factors telling me to hold on to my bullish expectations for the sector.  Why I Think Emerging Markets Are Only Going Up 1. Economic Growth Developed markets are experiencing a growth slowdown while emerging markets are in a long-term expansion phase.  While developed markets are forecasted to grow by just 2% in 2017, emerging markets are projected to hit 4.5% growth this year. The growth is predicted to climb nearly 5% in 2018.  #-ad_banner-#The BRIC nations (Brazil, Russia, India, and China) create 22% of the global GDP, a figure that continues to climb. An expected 80% of total world GDP growth will come from emerging markets over the next five years, according to the International Monetary Fund (IMF).  India and China’s portion of world GDP has grown by six times since 1970. The G7 nations’ share of world trade has declined from 50% to 30% during… Read More

I’ve been doing a lot of reading these days about my own generation: the millennials. While I’m at the older end of the cohort, and don’t necessarily identify as one, even I will admit that we’re a tough bunch to figure out. You’ve heard the stereotypes — and many of them are true. We’re notoriously fickle, embrace irony at every opportunity, and were colored markedly by technology (as well as the financial crisis). But here’s what you might not know… the millennial population is now 75.4 million, according to the Pew Research Center. That group (born roughly between 1980 and 2000, depending… Read More

I’ve been doing a lot of reading these days about my own generation: the millennials. While I’m at the older end of the cohort, and don’t necessarily identify as one, even I will admit that we’re a tough bunch to figure out. You’ve heard the stereotypes — and many of them are true. We’re notoriously fickle, embrace irony at every opportunity, and were colored markedly by technology (as well as the financial crisis). But here’s what you might not know… the millennial population is now 75.4 million, according to the Pew Research Center. That group (born roughly between 1980 and 2000, depending on the source) now outnumber the 74.9 million baby boomers (late 1940s to 1964). Given this data — especially the fact that older millennials (like myself) are in their early 30s (prime years of consumption) — companies have been trying to wrap their heads around just what it is that makes us tick. There’s big money in that, after all… From my perspective, here’s how the media tends to portray millennials (maybe you’ve found yourself thinking this, too): — Very tech-savvy. — Hate being labeled. — Easily bored, distracted, crave instant gratification, and constantly on the move. — Waiting longer to get married,… Read More