How much market downside are you willing to accept before being willing to miss out on potential upside? More specifically, the author of today’s article poses the following question: “How much would the market have to decline at its worst point in the next year for you to forgo investing in stocks (S&P 500) to invest in bonds (5-Year U.S. Treasuries)?” He proceeds to identify at what point an “Avoid Drawdowns” strategy begins to outperform “Buy & Hold” – and what drawdown threshold may provide the absolute best performance. For more, CLICK HERE.
The drugmaker highlighted in today’s article may be one of the best stocks to buy for both July and the third quarter, if history is any indication. Why? Over the last 10 years, the stock in question has ended July higher 100% of the time (with an average gain of 10.68%) and has ended the third quarter higher 90% of the time (with an average gain of 13.63%). For the stock in question and how traders may want to go about exploiting this historical trend – as well as more top S&P 500 stocks in July and the third quarter – CLICK HERE.
When it comes to analyzing Warren Buffett’s approach to evaluating potential investments – and acquisition targets – the HOLT team at Credit Suisse have made it their mission to do just that. By evaluating companies using many of the same metrics Buffett would use to find attractive investment opportunities, the HOLT team has identified 141 “Buffet Ideas” – and today’s article highlights a number of those ideas, spanning various sectors, for investors to consider for their portfolios. For more, CLICK HERE.
“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.
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.
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.
Gold’s little sister – silver – has “become increasingly attractive to investors looking for undervalued asset classes and safe-haven investments,” notes the author of today’s article. Anticipating a more supportive sentiment for the silver market this year, he proceeds to highlight a basket of three silver juniors with high leverage to the silver price to consider: one growth-oriented silver producer, one silver developer/explorer (and potential takeover target), and one early-stage gold/silver explorer. For more, CLICK HERE.
Pointing to a global cannabis market projected to be worth $630 billion by 2040 (with a potential $94 billion legal U.S. market), investment bank Seaport Global just initiated coverage on a dozen cannabis stocks – including nine with Buy ratings. Interestingly though, today’s article notes, “some of the most popular U.S. cannabis stocks are not among the firm’s top picks.” Which cannabis stocks is the firm most bullish on? CLICK HERE.
“New traders are often seduced by the patterns of indicators, but this work invariably ends in disappointment when results don’t follow,” notes the author of today’s article. Given this, he proceeds to outline what may be a better approach to getting started in technical analysis. For this approach (the principles of which even more experienced traders can still benefit from) and some of the “pitfalls” of traditional technical analysis, CLICK HERE.