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.
Nobody knows how much of an impact the trade dispute between the U.S. and China will have on the U.S. – or China. In regards to the potential fallout in China, the author of today’s article notes that “This uncertainty is being reflected in stock prices. It’s also likely there are bargains among the wreckage, and investors might be able to pick up solid companies at a discount.” As such, he proceeds to highlight three China ETFs that may be credible value plays right now. For more, CLICK HERE.
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.
“If you want to beat the market, you can’t just track the index – you have to do something different. One strategy that has made outsized returns in the past…is to buy assets when they’re cheap. This goes for entire markets as well as individual stocks,” notes the author of today’s article, who advocates using the cyclically-adjusted price/earnings (CAPE) ratio to assess whether a stock (or stock market) is cheap. Which global stock markets appear cheap today based on CAPE – and what diversification strategy may be best when buying cheap markets? CLICK HERE.
What oil industry experts do agree on is that the oil market “is becoming ever more sensitive to a sudden or unexpected disruption”, which is cause for concern. What they don’t agree on, however, is what the biggest risk to the oil market currently is: Unrest in Libya? Iran sanctions? Something else? Today’s article lays out “what oil traders and analysts view as potentially the most disruptive event” – including what may turn out to be a black swan event . For more, CLICK HERE.
You’re probably familiar with the college admissions scandal that has been making headlines of late, but did you know that that story actually started out as a stock market story involving an over-the-counter micro-cap stock called CURE Pharmaceutical? Today’s article tells the sordid story of CURE – and highlights the important lessons it holds on the opportunities and pitfalls associated with investing in micro-cap stocks. For more, CLICK HERE.
“You can have a portfolio that returns a lot, with a lot less risk,” declares the author of today’s article. He has long advocated a 35/65 portfolio (35% stocks, 65% bonds) in this regard, but after experimenting with variations on the 35/65 portfolio he has devised a portfolio – 35/55/3/3/4 – that offers “almost the return of the 80/20 portfolio with half the risk”. For more on this potentially ultimate portfolio – and how its attractive risk/return profile hinges largely on gold – 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.
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.
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.