A Big Bank’s Warning On Small Cap Stocks

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.

Dirt Cheap Dividends

While the S&P 500 trades at about 17.5 times its one-year forward earnings, the 13 dividend-paying stocks highlighted in today’s article are all trading at less than 10 times expected earnings per share, making them the kind of value stocks that investors may be on the lookout for as fear (especially trade fears) returns to the markets. For these “13 dirt cheap value stocks that are valued at less than 10 times earnings and that also pay steady dividends deemed safe as of mid-2019”, CLICK HERE.

Honing Your Financial Superpowers

Billionaire hedge fund manager Cliff Asness once exclaimed that “Having, and sticking to, a true long term perspective is the closest you can come to possessing an investing superpower.” It is not the only financial superpower, however. The author of today’s article identifies a number of financial superpowers which, fortunately, you don’t have to have been born with. For more – including why the author identifies the ability to be uncomfortable as one financial superpower (and, in fact, argues that it “is a prerequisite when trying to get ahead financially”) – CLICK HERE.

The Decline Of The Dividend

The importance attributed to dividends has changed over time, with the author of today’s article noting that “In the past, dividends were the only reason investors placed their money in equities. Now, dividends play a much smaller role, for better or worse, in the overall stock market.” One of the biggest factors behind the shrinking importance of dividends? The increase in stock buybacks, as corporations found another way to return money to shareholders. But it’s not the only factor. For more – including what this shift means for dividend strategies – CLICK HERE.

How Demand Substitution Could Make Platinum The Precious Metal Leader

Once considered a nuisance mineral and discarded by miners, and having been in an overall downtrend since 2008, platinum may now be poised to become the leader among precious metals, especially as palladium experiences a shortage and becomes increasingly expensive. As the author of today’s article notes, “In the past… when palladium enters a deficit that is long lasting, with sustained higher prices, the market experiences substantial demand substitution” for platinum. So what are the various ways investors can invest in platinum ahead of its potential move higher? CLICK HERE.

5 Under-The-Radar “Get High” Stocks

Now that we are a few years into the marijuana “megatrend” – and with a number of the more popular names in the space having shown signs of stress of late – where does the best opportunity lie in marijuana stocks? Today’s article highlights “the big potential in lesser-known stocks that haven’t gotten too far ahead of themselves” – and offers up five such “under-the-radar” pot stocks to consider. For more, CLICK HERE.

Stay This May – And Consider This Strategy Instead

May is here, so, according to the old maxim, it’s time to sell and go away… right? Not according to the author of today’s article, who asserts that, while the sell-in-May strategy has shown some marginal outperformance over the past several decades, “there are far better strategies to be found…And with each passing year, the sell-in-May strategy works less and less well.” Why is the sell-in-May strategy losing its effectiveness – and which strategies might be better choices right now? CLICK HERE.

Why Gold Is The Second Best Performing Asset (And Why The “Average Investor” Is The Worst)

For the 20-year period ending December 31, 2018, which asset class had the second highest annualized returns (real estate investment trusts posted the best returns)? Gold. Which group found itself dead last in annualized returns over the same 20-year period? The “average investor”. Today’s article examines both of these results – the strong investment case for gold and why “everyday retail investors regularly lag the market, in good times and in bad, by an alarmingly wide margin.” For more, CLICK HERE.

How Many Stocks To Own For Just The Right Amount Of Diversification (And To Beat The Market)

Too little diversification is a bad thing, but so is too much diversification. One influential stock picker cited in today’s article once observed that “Investors have been so oversold on diversification that fear of having too many eggs in one basket has caused them to put far too little into companies they thoroughly know and far too much in others which they know nothing about.” So is there an ideal number of stocks for active investors to own in order to help them beat the market? It turns out there may be. For more, CLICK HERE.

Lessons In Dividend Investing

If you want to improve as a dividend investor over time, the author of today’s article advises that “The thing that helps in this department is objectively evaluating [your] investments, studying mistakes and successes…This review should identify potential improvement points related to companies you are investing in, and potentially common success factors prior to investing in a stock. It could also help identify common denominator problems that could be avoided in the future.” He proceeds to share a number of lessons he has learned from his own review process that can help in becoming a better dividend investor. For more, CLICK HERE.