Netflix has experienced massive growth – and its stock has surged 8,300% since 2009. However, a major factor in the company’s performance has been its immense spending on original content – and, as today’s article notes, the cash-burning company recently informed investors “that it expects to record negative $3 billion in free cash flow in 2019 (similar to last year), and that it intends to continue to turn to debt markets to fund the spending rate.” Considering this – and with competition coming from Disney’s own streaming service, launching later this year – what may be the best trade for Netflix now? CLICK HERE.
“When it comes to personal finance there are plenty of cases where the most effective solution isn’t necessarily the most efficient,” asserts the author of today’s article, who proceeds to outline some examples where inefficient financial strategies can be beneficial, from paying off debt (Why would you not pay off your highest interest debt first?) to increasing savings (Why would you pay high fees to help you save?). For more on how some inefficiency might help you become more effective with your finances, CLICK HERE.
Despite seemingly mounting domestic concerns, both economic and political, the author of today’s article points out that “The U.S., by at least one measure, is a shining beacon of stability, with one of the more upbeat outlooks among major markets around the world.” Of course, as a result, U.S. stocks are unusually expensive and value is hard to find. But not impossible. For four U.S.-focused companies offering value relative to the broader market, CLICK HERE.
The trade war with China – and its potential ramifications – has been the primary topic of discussion – and concern – of late when it comes to the markets. And while the importance of that deepening conflict is inarguable, the author of today’s article argues that “there are a few more items on the horizon that may play a bigger role in the markets if they are not resolved in a rational and rapid fashion.” For more on the many bricks in the market’s “wall of worry”, CLICK HERE.
The Trump administration’s move to effectively ban U.S. companies from doing business with Chinese smartphone and telecom equipment giant Huawei, along with the state of the U.S.-China trade relationship more broadly, exerted downward pressure on semiconductor stocks in May – leading one analyst to suggest that “a lift of either would likely send the semiconductor industry materially higher (5% to 10%, in our view)”. For three beaten-down chip stocks with Huawei exposure that could be winners in a relief rally – and some specific trading guidance for each – CLICK HERE.
Considering the current realities domestically and globally – including shrinking trade – the author of today’s article observes that “Many investors may wonder…how they can get access to the robust U.S. economy and strengthening dollar while limiting their exposure to shrinking global trade and a potentially slowing economy outside of the U.S.” So how can they? He identifies one path to doing so involving a group of stocks that, even better, are undervalued. For more, CLICK HERE.
With increased market turbulence of late, today’s article highlights one way that investors can hedge against wild market swings: exchange traded funds focused on lower volatility stocks. For some specific low-volatility ETFs to consider for this purpose – with one ETF expert noting ““Both of them have actually done much better than the broad U.S. market over the last year. They do what they say they’re going to do. When we have drawdowns like we saw in the fourth quarter of last year — they keep you out of trouble a little bit” – CLICK HERE.
After falling off a cliff – and off many people’s radars – late last year, Bitcoin has been staging a comeback recently – and, as a result, so has the gold versus Bitcoin debate (including the launching of a #DropGold marketing campaign by Bitcoin bulls and a countering report by gold bugs). So who comes out on top in the gold versus Bitcoin debate today? The author of today’s article makes his pick – and lays out the three primary reasons behind it. For more, CLICK HERE.
A handful of unicorns – that is, privately-funded startups with market values over $1 billion – have gone public this year, with more to come. However, given the high-profile Uber and Lyft IPO flops, today’s article advises that “Investors looking to tackle a high-valued company going public would be best to look elsewhere and away from bigger and more well-known names to avoid the risk that comes from buying a highly-valued firm to begin with” – and one alternative that may be worth considering comes from the vegan menu. For more, CLICK HERE.
Against the backdrop of the U.S.-China trade war, small cap stocks might appear to be a safe haven. After all, small cap stocks tend to be more insulated from such pressures…right? Not necessarily, according to Bank of America Merrill Lynch’s small cap expert, who is warning that “the widely held perception [small caps are] insulated from the effects is ill-conceived”. Perhaps even more concerning, she has “spott[ed] an ominous characteristic in the group that’s historically linked to economic downturns.” For more – including some possible positive exceptions within the small-cap space – CLICK HERE.