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Are Banks Growing with Vine? Not Yet

Fri, 14 Jun 2013 16:40:17 -0400

About six months ago, Twitter launched a new video application called Vine. For those unfamiliar with the app, it allows users to create 6-second video clips that loop continually. Vines are really just an evolution of animated GIFs that have sound and are fully integrated with Twitter for easy broadcast and sharing. Last month, we...

Searching For Value And Finding It In Today’s Market – Sector By Sector

Fri, 14 Jun 2013 15:05:53 -0400

Introduction “I think the market is overvalued now,” is a common refrain that I’m hearing from most of the individual investors I have recently been coming in contact with. Consequently, many of these same investors are also currently eschewing investing in common stocks because of that fear. Although I do not agree that the market...

Investor Beware: Higher Interest Rates Looming

Fri, 14 Jun 2013 13:25:16 -0400

The rate on a 30-year fixed mortgage has been creeping up higher and just broke the four-percent threshold. This is a telltale sign that higher financing rates are on the horizon. While there’s still hope that the Federal Reserve will hold off on reducing its bond buying at next week’s Federal Open Market Committee (FOMC)...

Investor Sentiment Eroding Globally; Is America Next?

Fri, 14 Jun 2013 12:50:54 -0400

With the S&P 500 close to its all-time highs, a common question is: will we see a pullback or a continuation in the bull market? This is obviously a very complicated question to answer, as investor sentiment in the S&P 500 can shift extremely quickly. In addition, there is obviously no quantifiable method to predicting...

Two Proven Short-Term Strategies for Long-Term Investors

Fri, 14 Jun 2013 11:50:15 -0400

Generally speaking, by keeping focus on the long term, investors can grow their portfolio with peace of mind. When doing this, they are not concerned about what happens to their portfolio on a daily basis; rather, they are looking for performance at the end of the year, when it’s less stressful. That said, while not...

Crash, Down Quarter, Major Correction—It’s All in the Cards

Fri, 14 Jun 2013 11:25:14 -0400

The appetite that institutional investors have had to bid the stock market is diminishing. Earnings estimates for the second quarter are actually being trimmed by corporations and Wall Street. It makes for a genuinely peculiar environment for the stock market—share prices at their highs on declining expectations for corporate earnings. The lesson is clear: it...

PVH Corp: Fundamental Stock Research Analysis

Thu, 13 Jun 2013 17:50:12 -0400

Before analyzing a company for investment, it’s important to have a perspective on how well the business has performed. Because at the end of the day, if you are an investor, you are buying the business. The FAST Graphs™ presented with this article will focus first on the business behind the stock. The orange line...

Precious Metals: Down for the Count?

Thu, 13 Jun 2013 13:50:52 -0400

The recent weakness in many precious metals has led some to believe the investment opportunity in that sector is over. However, I don’t believe that’s true—not all of the precious metals have the same fundamental drivers and thus have had varying levels of performance. While some precious metals, such as silver, have dropped over the...

Number of S&P 500 Companies Reporting Negative Guidance a Red Flag

Thu, 13 Jun 2013 13:25:38 -0400

Standard & Poor’s, the credit rating agency, believes the likelihood of the U.S. credit rating being downgraded in the near term is less than 33% (one in three) and it has decided to keep its credit rating on the U.S. economy at AA+, slightly lower than the best investment grade. (Source: Standards & Poor’s, June...

Germany to Pull Back on ECB’s “Whatever It Takes” Position?

Thu, 13 Jun 2013 12:45:36 -0400

I can’t stress this enough: troubles in the eurozone are far from over. First and most important, the strongest nations in the eurozone are experiencing an economic slowdown now too. As I have written before, France and Germany are seeing diminishing demand. Finland, one of the financially strongest nations in the eurozone, fell into a...

Fear Sneaking Back into the Stock Market

Thu, 13 Jun 2013 11:11:08 -0400

In just a matter of a few months, the S&P 500 is up more than 14%. To say the very least, these gains are nothing short of amazing—much better than what investors can get with the long-term U.S. bonds that currently yield less than 3.5%. Consider this: on average, in the first five months of...

Obamacare a Boon for Biotechs?

Thu, 13 Jun 2013 07:35:56 -0400

Much hype has been made over how much “Obamacare” is going to cost Americans. The Republicans and, dare I say, the majority of Americans believe it will significantly increase the cost of insurance for people who buy it on their own. The Democrats have been quick to dismiss any such silly notions. Slugging through the...

Capital Vision: Cultivating Your Success

Wed, 12 Jun 2013 20:05:57 -0400

Innovators are known for their idea channels. Novel ideas and collaboration give entrepreneurs the inspiration and guidance that groundbreaking work requires. As an investor, it’s easy to think that the market for ideas is solely the property of the innovator. But creating an easily flowing current of opportunities is just as essential for an investor...

Why Supply and Demand Doesn’t Matter for U.S. Oil

Wed, 12 Jun 2013 11:50:19 -0400

There is now pressure on oil prices. West Texas Intermediate (WTI) crude is getting awfully close to the $100.00-per-barrel level again. Futures traders are interpreting economic news, including last Friday’s employment report, as strength in the U.S economy. Resource stocks have generally been trending lower, particularly in precious metals. But this hasn’t been the case...

Why There May Be an Insatiable Appetite for Chinese IPOs

Wed, 12 Jun 2013 11:25:16 -0400

The Chinese are coming! Well, not really, but we did see the first Chinese initial public offering (IPO) of the year list on an U.S. exchange yesterday and only the third Chinese IPO since 2011. The pipeline has dried up from the 60 or so Chinese IPOs listing in the U.S. from 2008 to 2011....

Indian Government to Banks: Stop Telling People to Buy Gold

Wed, 12 Jun 2013 10:50:15 -0400

India, the biggest consumer of gold bullion, is witnessing over-the-top demand—to the point where the government is trying to curb demand. The Finance Minister of India said last week, “Banks have a role to play in dampening the enthusiasm for gold. I think the RBI [Reserve Bank of India] has advised banks that they should...

Japan Resorts to Buying ETFs and REITs to Prop Up Stock Market; Will Fed Eventually Do the Same?

Wed, 12 Jun 2013 09:50:12 -0400

The Japanese economy is a prime example of what happens when central bank–infused “economic growth” crumbles. Quantitative easing may have been needed in the U.S. economy when the financial system was on the verge of collapse, but artificially low interest rates and vast amounts of paper money printing could be creating major troubles for our...

Business Basics – Corporate Audits

Tue, 11 Jun 2013 23:30:13 -0400

Regular, thorough audits are a very important tool for running a compliant, successful corporation. These audits help uncover problems that might have otherwise gone unnoticed, stopping them from evolving into serious issues. Corporate audits are thus typically handled and paid for by the corporation being audited to help them spot those types of problems. But...

Is Obamacare Killing America’s Medical Innovation?

Tue, 11 Jun 2013 10:55:23 -0400

There are few things more unpopular in America right now than President Obama and “Obamacare,” or the Patient Protection and Affordable Care Act, as it’s known in the hallowed halls of Washington. According to a recent poll, 45%–49% of Americans disapprove of President Obama’s job performance; only 48%–45% approve. (Source: “American Voters 4-1 Want Special...

Three Ways to Profit from the Fall of Emerging Markets

Tue, 11 Jun 2013 09:55:33 -0400

The key stock indices have gained momentum to the upside since the beginning of the year. The most quoted indices like the S&P 500 and the Dow Jones Industrial Average are up more than 12% and are bucking the trend. Unfortunately, as this is happening, commodity prices, especially the industrial metal prices, are facing severe...

Unique Investment Opportunity Born in America

Tue, 11 Jun 2013 09:11:32 -0400

Something just occurred that has not happened since 1997: the U.S. produced more oil domestically than we imported. Just a few years ago, people would’ve viewed that statement as simply a fantasy. This is a perfect example of what happens when business owners see an investment opportunity that will help create corporate earnings. The escalating...

New Accounting Framework to Ease Burdens for Small Businesses

Mon, 10 Jun 2013 14:27:00 -0400

Two U.S. accounting organizations aim to give business owners streamlined options for financial reporting.

Retail Growth Healthy, but Best Gains Have Already Been Made

Mon, 10 Jun 2013 11:35:56 -0400

We all know that consumer spending and the performance of the retail sector dictates the direction of economic renewal in the U.S. It’s quite simple—if consumers spend, the economy and the retail sector will grow. Now, with home prices nationwide continuing to rise and the jobs creation picture showing signs of improvement (though it is...

How the Old Economy Can Pay More Than You Might Think

Mon, 10 Jun 2013 11:15:29 -0400

With all the financial engineering that’s been going on over the last several years, it’s great to actually find good businesses that are growing based on their own fundamentals. There’s always a continuing flow of earnings reports, and one company I’ve followed for years just beat the Street again. Earnings growth rates might not be...

Who Really Benefits from Inflation and Why You’re Not Wealthier

Mon, 10 Jun 2013 09:29:13 -0400

The Federal Reserve Bank of St. Louis released an interesting report analyzing the underlying fundamentals of why America’s economic growth level still remains quite anemic. The results won’t surprise many people—most American households have rebuilt only a fraction of the wealth lost during the recent recession. According to the Federal Reserve Bank of St. Louis,...

Hourly Compensation of U.S. Employees Declines Most Since 1947

Sat, 08 Jun 2013 14:50:38 -0400

How can consumer spending in the U.S. economy rise under these circumstances… In the first quarter of 2013, hourly compensation of Americans employed in non-farm businesses fell 3.8%. This was the biggest drop since the Bureau of Labor Statistic started to measure this statistic in 1947. (Source: Bureau of Labor Statistics, June 5, 2013.) Consumer...

Don’t Read This if You Thought the Economy Was Improving

Sat, 08 Jun 2013 14:25:36 -0400

The Bureau of Labor Statistics reported this morning that the U.S. unemployment rate is now 7.6% percent, with 175,000 new jobs created in May. At the same time, the Bureau revised its April numbers down, saying 149,000 jobs were created in April, and not the initial 165,000 it reported. The unemployment situation in the U.S....

Equity Market Super Stock Adding Up to Solid Returns

Sat, 08 Jun 2013 13:50:34 -0400

One company I consistently like for long-term investors looking for dividend payments is PepsiCo, Inc. (NYSE/PEP). This is the kind of company that can be put into retirement accounts and held for long periods of time with dividend reinvestment. The equity market has been very kind to PepsiCo since the beginning of this year. Like...

Bull Market Not Over, but a Correction May Be on the Horizon

Sat, 08 Jun 2013 13:25:32 -0400

I was watching CNBC Asia two nights ago and marveled at the talk of how well Japan was doing, noting the obvious enthusiasm for the record level of the stock market. And just like it was back in late 1999, there are more bulls coming out on Wall Street and saying how high the Dow...

Stock Market Rally Fizzles as 2Q13 Corporate Earnings Growth Fades

Sat, 08 Jun 2013 12:50:31 -0400

The stock market is down 500 points in just over a week…does this mean the Dow Jones Industrial Average has finally topped out? Corporate earnings are weak; we know that. So far for the second quarter of 2013, more than 80% of the companies in the S&P 500 that have issued their corporate earnings guidance...

Best Explanation on the Fake Housing Market Recovery I’ve Seen

Sat, 08 Jun 2013 12:25:30 -0400

The average American Joe isn’t participating in the U.S. housing market. As a matter of fact, according to the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, investors purchased 69% of “damaged” properties in April 2013, while first-time home buyers accounted for only 16% of “damaged” purchases. It is very well documented in these pages how home...

Why a Eurozone Break-Up Could Happen; What It Means for Your Investments

Fri, 07 Jun 2013 10:52:23 -0400

The eurozone crisis has been haunting the global economy for a while. Countries in the common currency region are deteriorating very quickly. Look at the Spanish economy, for example: in the first quarter of 2013, it contracted 0.5% after continuing its slide from the last quarter of 2012, when it declined 0.8%. The Spanish economy,...

Two Ways to Protect Yourself from America’s Deteriorating Economic Divide

Fri, 07 Jun 2013 10:20:17 -0400

As I’ve been noting in this column since the beginning of the year, there is a major economic disconnect between what is happening on Wall Street and what is happening on Main Street. Eventually, the great divide will come into focus and the U.S. economy will react accordingly. The evidence: if the stock market is...

How the Fed Has the Economy Hooked on Its “Monetary Cocaine”

Fri, 07 Jun 2013 09:55:52 -0400

The debates continue on whether the Federal Reserve should or should not begin to take its foot off the money-printing pedal. We will likely find out on June 14, which is when the Fed meets. I know those seeking income from bonds want higher yields because it’s hard to survive when you are making only...

Institutions Already Shifting Their Investments; Should Investors Follow Suit?

Fri, 07 Jun 2013 09:28:38 -0400

Recently, I’ve issued several warnings in these pages for investors who are heavily involved in fixed-income assets. As I’ve mentioned over the past couple of months, I think the worst investment for investors to make is to put a lot of money into long-term Treasury bonds and notes. This is because the unprecedented level of...

Best Credit Cards for Small-Business Owners in 2013

Fri, 07 Jun 2013 08:02:00 -0400

After reviewing more than 1,000 credit cards, credit-card comparison website CardHub.com releases an analysis of which credit cards are best for entrepreneurs and why.

Invoice Approval: Your Workflow and the Automation Factor

Thu, 06 Jun 2013 21:50:54 -0400

Whatever type of business you do, whatever category your business falls under (solo entrepreneurship, small business or big corporation), as long as you make purchases that are essential for your operations, there’s a common denominator that’s likely to stay for the long haul – bills and invoices from your partner suppliers. Your ability to properly...

Should Investors Still Diversify with Gold?

Thu, 06 Jun 2013 13:50:01 -0400

When it comes to investing, it’s important to diversify and spread your money around. Put all your assets in one basket and it could evaporate overnight if the markets go into correction mode. As a result, diversification is a good strategy to follow, because it can protect you from losing your entire retirement portfolio should...

How Holding Cash in Your Portfolio Could Mean Opportunities for You When Others Run for the Exit

Thu, 06 Jun 2013 13:05:31 -0400

While talking to a friend of mine about general economics and the current market conditions, discussing topics such as where the stock market is headed next since it has gone up significantly and what these low interest rates mean in the long run, he opened the debate to an interesting front: how much cash should...

Zero-Sum Game: Market Wizards Still Helping Traders

Thu, 06 Jun 2013 11:35:26 -0400

In the effervescent realm of books on business, there are the biographies on industry titans, the how-tos, the books on leadership (or lack thereof), the postulations on the next cycle, or books about “the secret” (the perpetual media premise about visualizing your success). But there are very few good books about trading capital markets. Two...