Profitable Investing Tips
Are Latin American Investments Going to Soar?
Despite continuing economic concerns in Latin America their stocks markets are doing well. Partly this is because of the commodity slump the reduced values in all nations that export raw materials. And, of course, there was the impeachment of Brazil’s president and Venezuela’s Chavez/Maduro meltdown. Nevertheless markets are doing well down south. CNBC offers three reasons why Latin American stocks will continue to soar.
If you just pay attention to the headlines, it looks as if Latin America has taken a turn for the worse. Data revealed last week showed that Brazil GDP contracted by 3.6 percent in 2016, prolonging its […]
How to Profit from Higher Interest Rates
The Federal Reserve is expected to raise interest rates again. The New York Times writes that the question is not why raise rates but why not.
The unemployment rate, one of the gauges the Fed watches most closely, fell to 4.7 percent in February, a healthy level by historical standards. Inflation, the other gauge, finally appears to be reviving. Prices rose 1.9 percent over the 12 months ending in January, close to the Fed’s 2 percent annual target.
The Fed continues to hold its benchmark interest rate at a level intended to stimulate economic growth by encouraging borrowing and taking risks. It […]
Beware of Toxic Investments
Kodak was a great stock until digital photography came along. A great stock became a toxic stock. Beware of toxic investments and get out of stocks that are bucking the trends. The Motley Fool offers three stocks that could prove toxic to your portfolio.
Some industries just can’t compete with changing trends. Take retailers and offshore drillers, for example, which are struggling to contend with the lower-cost technological innovations of e-commerce and shale drilling, respectively. Because of that, companies in these industries are seeing their sales and profits sink, which is taking their stocks down as well. We don’t see either […]
Does Low Volatility Predict a Positive Market?
According to CNBC you have to go back to 1994 to find a similar situation in the stock market. The S&P has gone a hundred days without a 1% dip. Besides being something they haven’t done for more than 20 years this low volatility may well predict a positive market going forward.
Since 1950, the market has logged only 21 other instances when the index traded without a 1 percent down day for 70 or more consecutive trading days, Johnson wrote in a recent report. The longest streak was in 1963, when the S&P 500 saw 184 straight trading sessions without […]
What Are the Risks in Today’s Surging Market?
The stock market just keeps going up. Is there an end in sight? Will this be a prolonged rally similar to what started in the Reagan years? What are the risks in today’s surging market? The upside to investing is the promise of lower taxes, repatriated corporate cash and an economic boom caused by infrastructure spending. The potential downsides include a trade war with China, more terrorism at home or a nuclear attack by the crazy leader of North Korea. Business Insider says that smart folks on Wall Street are sounding the alarm on the Trump bump.
The Dow Jones industrial […]
Will an Unwilling Congress Kill the Trump Market Rally?
The Tea Party movement arose in order to reduce the national debt and federal budget. Its aim has been to reduce government spending while also lowering taxes. The new president wants to lower taxes and raise spending on the military. Along the way the stock market has gone up in anticipation of lower taxes, offshore money coming home and economic stimulus from massive infrastructure repair. The problem is that while the Republicans control both houses of congress and the White House they do not agree on the ways and means to govern. The investor needs to wonder, will an unwilling […]
It Is a Mistake to Mix Politics and Investment Strategies
People invest in stocks, bonds or real estate to make money. Citizens vote for politicians who will pursue policies that the citizens favor. In a recent interview Warren Buffett said that it is a mistake to mix politics and investment strategies. That Mr. Buffett is following through on this philosophy is borne out by the fact that he was an ardent Clinton supporter but has poured $20 Billion into the stock market since the election of Donald Trump. In an interview with CNBC Buffett said that how Trump handles the primary threat to US security is how he should be […]
Just How Many Years Are Required to Make an Investment Long Term?
People like Warren Buffett have made substantial profits from smart long term investing. Just how many years are required to make an investment long term? We can get a hint from the so-called Oracle of Omaha who says that he cannot outguess the market in the short term but has a pretty good idea of what will sell well ten years hence. Thus we should not be surprised when Market Watch says long run for investing is longer than you think.
There are certain truths that are etched into the brains of investors. They know that in the long-run, their portfolio […]
Why Are Airlines Better Investments Than They Used to Be?
The old saying is that if you want to be a millionaire, start out as a billionaire and buy an airline! But, what happened? None other than Warren Buffett, who called airlines a death trap for investors, has poured $10 billion into the four major airlines in the last couple of years. Why are airlines better investments than they used to be? Business Insider says that Buffett’s investment is everything you need to know about the airline industry.
Over the past decade, the landscape of the airline industry in the US has changed greatly. All four airlines have reported record profits, […]
Is Ford Undervalued Today?
The so-called Trump bump has taken many already-overvalued stocks and sent them higher. Are there any good deals left in the stock market? One stock that caught our attention is the auto maker Ford. Is Ford undervalued today? The Motley Fool refers to Ford as the forgotten auto maker in an article about 4 stocks to buy that are trading near 52 week lows.
Automakers not named Tesla are having a hard time getting any love in today’s stock market. Ford has made vast improvements in the quality and attractiveness of its vehicles since the recession subsided, and now it is […]