Profitable Investing Tips
How to Evaluate Investments in Biotechnology
Biotech can be an investment sector where you can become rich and it can be where you lose everything. Knowing how to evaluate investments in biotechnology can make all the difference. The rationale for investing in biotech is that a company will invent a new medicine or product that will change the world and generate huge sales in the process. The common reasons for avoiding biotech investments are that the vast majority of prospective products never make it to the market and that evaluating the prospects of a biotech investment can be very […]
Best Investments in Solar Energy
There are several reasons why solar energy is going to be an increasingly important part of the total energy picture for the foreseeable future. Climate and pollution issues are driving energy production away from fossil fuels and toward clean, renewable energy. Across the world, the middle class is growing and with it the demand for more energy. Meanwhile the technologies involved in industrial scale manufacturing of solar products are becoming faster, more efficient, and cheaper. The best investments in solar energy will be in those companies that best use these factors to generate […]
Investment Risks of Holding Cash
An article on CNBC caught our attention. Nearly 1 in 5 Americans are stashing cash at home in fear of a recession according to the folks at CNBC. Perhaps they are trying to emulate Warren Buffett whose silent warning for investors is that his company is holding more than $100 billion in cash assets because he cannot find investments that he believes will be profitable over the long term at current prices. Or maybe they are thinking about the 1933 bank holiday when President Roosevelt suspended all banking transactions within 36 hours of taking […]
Investments for the Coming Recession
Have you thought about investments for the coming recession? What? Isn’t the market going to surge forward when Trump makes a deal in the trade war with the Chinese? Hasn’t the market defied every critic for years and years? The answers are “possible” and “yes.” However, every bull market ends. And, the ones that last the longest and run the highest often have the worse fall. As the economy cycles, we will see a downturn sooner or later. The bond market is betting on soon and on a downturn that will last a […]
Investing Metrics You Should Pay Attention To
Shortsightedness is never a virtue in investing. Time and time again over the years too many investors jump into bull markets too late, stay too long, and lose their shirts. Along with the assessment of intrinsic stock value, what are the investing metrics you should pay attention to when investing in stocks today? Here are a few thoughts on the subject. Our treatment of this is in no way complete but rather intended to point investors in the right direction during a time of market uncertainty.
What Are Investing Metrics and Why Should You Care?
As noted […]
Will There Be a Trade War Peace Dividend?
The president stated recently that there is a partial deal in the works to advance talks in the trade war between the USA and China. Part of our speculation as this story has played out is about what investments will do well when the trade war is resolved. In that regard, Apple rose to an all-time high on the news. Will there be a trade war peace dividend? If so, this is the time to jump in with both feet. Or, is this just more posturing with a permanent trade war the more […]
Is Microsoft a Buy and Hold Investment?
High tech stocks have been the drivers of the longest bull market in U.S. history. But, how long will the rally last and are any of the tech darlings buy and hold material? From the depths of the U.S. financial crisis and stock market collapse until now, stocks like Apple, Amazon, Microsoft, Alphabet (Google), and Facebook have been big winners. However, no market rally lasts forever. Fears of a permanent trade war with China, a 2020 recession, and FANG investment risks, are causing analysts to downgrade many of these companies. One venerable tech stock […]
What Are Your Investment Alternatives?
What Are Your Investment Alternatives?
As noted in a recent CNN business article, investors are “holding
their noses” and buying stocks because “there is no alternative.”
TINA
(There Is No Alternative) has become a popular mantra on Wall Street. It
explains why stocks are near record highs despite concerns about trade tensions
with China and what’s expected to be another round of lackluster corporate
earnings next month.
Not
even a huge surge in crude prices Monday following an attack on Saudi oil
facilities over the weekend was enough to dampen investor enthusiasm all that
much. The Dow fell a little more than 150 points, or about 0.6%, Monday. That’s
a pretty tame […]
Will Inverted Bond Yields Cause Your Investments to Crash?
At the beginning of last year, we asked if you should be concerned about the inverted yield curve. The fact is that many previous market crashes and recessions have been preceded by “inversion” of rates on long term versus short term bonds. The timing of this “predictor” is such that it may be a year or two after bond rates change that the market crashes or the economy suffers. There are two questions here for investors. One is whether or not this episode of interest rate inversion will be followed by a collapse of […]
Bitcoin Pump and Dump Again?
And a bitcoin security warning
Remember the 2017 Bitcoin pump and dump? It seemed like an epic bull run for the cryptocurrency but ended in a crash. Bitcoin started 2017 just below $1,000 and rose during the year. Bitcoin “enthusiasts” hyped the cryptocurrency as the “investment “of the future while long term successful investors called it a scam. After Bitcoin fell from the $20,000 range to the $3,000 range at the end of 2017, all of the Bitcoin hype went away, for a couple of years. However, it appears that we are seeing a Bitcoin […]