“As bargains become harder to find in an aging bull market there is temptation to go bottom feeding in search of an investment miracle,” acknowledges the author of today’s article. But when is that “miracle” cheap stock really a value trap with no real prospects of experiencing a significant rebound? The author outlines a dozen value trap indicators to be on the lookout for when going hunting for real value. For more, CLICK HERE.
A joint venture in Nevada between two mining giants – creating the single-largest gold producing operation in the world (and one with the potential to become what the author of today’s article refers to as “the ‘Walmart’ of the mining world”) – could be a major sign that gold miners are anticipating a bull run in gold prices. And with gold mining stocks still greatly undervalued relative to the market, now may be the time to consider investing in gold miners. For more, CLICK HERE.
In the low interest rate environment of the last 10 years, have dividend stocks become a cult of sorts for income-hungry investors who have been unable to rely on bonds? That’s the argument made by the author of today’s article, who asserts that, today, “if you own companies that pay dividends then you are a “serious” investor, while if dividends are not a centerpiece of your investment strategy you are a heretic…” More importantly, he warns that there is danger associated with this cult of dividends and treating dividend-paying stocks as bond substitutes. For more, CLICK HERE.
While, as today’s article notes, “The only way for a stock to increase its dividend for 25 or more consecutive years is for it to have a strong and durable competitive advantage”, that doesn’t mean that all 57 stocks that currently make up the S&P 500 Dividend Aristocrat Index are good buys today. The authors single out ten stocks from the index that they assess to be the top Dividend Aristocrats today based on expected future total returns. For more, CLICK HERE.
With mortgage rates on the decline, homebuilder confidence on the rise, home price growth slowing, and a number of other favorable-looking fundamentals, the U.S. housing market appears strong ahead of the spring selling season. Against this backdrop, today’s article highlights three homebuilder ETFs for “investors seeking to tap the solid trend in the homebuilder space” in a way that provides greater diversification than one can get from a single stock. For these three ETFs, CLICK HERE.
Cheap investments are not necessarily good investments – but sometimes they can be the best investments. With the valuation gap between the most expensive stocks and the cheapest stocks currently the largest it has been in 70 years, today’s article examines when cheap investments are indeed the best investments, noting that “when valuations surge to extreme levels, the value stocks whose prices have been left behind tend to outperform in the coming six to twelve months.” For more on when cheap investments are the best investments – including a number of cheap (under $5) stocks that could see significant price appreciation – CLICK HERE.
Having already achieved the distinction of being the longest in U.S. history, and now hitting the 10-year mark, calls regarding the end of the current stock bull market are only intensifying. However, noting that “business cycles do not die from old age alone”, the author of today’s article doesn’t see “any reason why this bull run can’t last another 10 years” – and advocates staying invested in stocks even if one anticipates a recession or bear market this year or next. For more – including the specific type of fund the author recommends now – CLICK HERE.
When it comes to converting a traditional IRA to a Roth IRA, the author of today’s article acknowledges that “it takes a strong stomach”. However, a combination of the Trump tax cuts and the stock market’s performance of late “have created a potential bull market for conversions” where “a whole new class of people are now good candidates for Roth conversions”. How so – and what are some specific Roth conversion strategies that can help? CLICK HERE.
They get far less attention than the FAANG stocks, and they don’t have the clever acronym (although the author of today’s article proposes PUTIN, among other suggestions), but stocks of cloud software companies are flying high – perhaps too high – with the author warning that “a category of typically fast-growing cloud software firms have stretched their valuations so far that they’re vulnerable to a meltdown. If you’re looking for a bubble, this might be it.” For more, CLICK HERE.
Thank the Fed’s new-found dovishness towards rate hikes (among other factors): After housing stocks experienced their worst year in a decade in 2018, today’s article notes that “homebuilders have executed a spectacular recovery this year” and “are likely to snap up substantial gains”. For five specific homebuilder stocks that have posted significant gains so far this year – and which appear poised for even more – CLICK HERE.