“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.
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.
If, like many investors, you’ve been waiting for an opportunity to buy some of the most-loved stocks of the bull market at more reasonable prices, the selling pressure seen during the month of October may have now provided that opportunity. Today’s article highlights “25 great stocks that had been loved by investors during the major bull market but now have sold off 20% or more”, excluding companies from especially troubled sectors such as oil and gas. For these 25 stocks, CLICK HERE.
Could cash prove to be the biggest winner in your portfolio for 2018? The S&P 500 and Dow – and bonds – are currently in negative territory for the year, and the author of today’s article advises that “With the sharp October swoon from the September high of a very long-in-the-tooth bull market, now could be the time to reevaluate the upside of earning only 2 percent on cash versus being overconfident in the stocks that have done so well for you in a low-rate environment.” For some considerations on how to allocate to cash “the right way”, CLICK HERE.
Analysts at Citigroup “are predicting a full-on bear market before the end of the year,” notes the author of today’s article. If you agree with their assessment, then it may be time to consider investments that short the market – and exchange-traded funds may be better suited for that purpose than individual stocks. As such, the author highlights four ETFs “to short significant [market] segments that have a reasonable chance of making a downturn or at least experience a correction within a bull market.” For these four ETFs, CLICK HERE.
How close are we to the end of the business cycle? The author of today’s article notes that a number of indicators that often precede the end of economic expansion and equity bull markets are present (including rising interest rates), but cautions that “Be that as it may, calling the end of the cycle would be a fool’s errand and could result in missed opportunities…Late-cycle returns can still be quite substantial.” For more on these late-cycle opportunities – and the author’s thoughts on inflation, oil, gold and more – CLICK HERE.
While some believe that gold is currently in a bull market, the author of today’s article rejects this notion – and seeks to determine when the tide could indeed turn for gold, noting that “A quick study of Fed history with the context of current conditions is very instructive as to when Gold could begin a true bull market.” What does an analysis of Fed policy changes – and their impact on gold and gold stocks – indicate about the eventual catalyst for gold? CLICK HERE.
When it comes to protecting your investment portfolio in anticipation of a major market correction as this bull market gets more than a little long in the tooth, there are a number of approaches to consider, including seeking out safe investment niches and buying gold. Today’s article focuses on an additional approach to protecting your portfolio: using options. For more on using options to protect your investments – as well as using them for cheap entry into investments and to generate a little extra money from them – CLICK HERE.
“This is not playing out like a typical cycle.” This is how the head of global asset allocation strategy at Wells Fargo Investment Institute characterizes the current late stage of the bull market in today’s article, noting, for example, that two of the three sectors that typically perform best late in the cycle are not doing so now. So how are investors to contend with this atypical cycle? She offers some guidance on how investors can position themselves – and some warning signs to be on the lookout for that may indicate the end is near. For more, CLICK HERE.
Among the various options that investors have in the face of an aging bull market is to switch from a focus on growth investments to a focus on value investments, a move that the author of today’s article believes is a sound one. But how does one go about value investing for long-term profits? The author outlines two characteristics to look for in value investments and how to go about assessing them. For more, CLICK HERE.