Stock market disruptions create opportunities for investors who can differentiate between investments that are in trouble versus those that are not. Lower prices provide the potential for great long-term returns, and with rising interest rates and stocks in correction territory, preferred stocks offer an excellent opportunity to lock in long-term high yields. Here are a […]
Author: Tim Plaehn
Why Growth Investors Panic – and I Don’t
Of the two types of stocks in which to invest – growth stocks and value stocks – investors naturally gravitate to growth stocks. At first glance, it makes sense to invest in rapidly growing companies and see rapidly increasing share prices and capital gains. However, it’s not that simple, and investors often get burned chasing […]
Plan For When Your Favorite Stock Stops Going Up
The crash last week of Netflix Inc. (NFLX) shows how badly investors in growth stocks can get hurt when the music stops. The Netflix debacle shows that if you are investing for price appreciation, you need to have an exit plan or alternative strategy. And that’s true not only of tech stocks, but of any […]
Buy These Two REITs for Rising Rates and Possible Recession
Investors regularly ask me about the two great fears of today: rising interest rates and a potential economic recession. While a recession may not happen, interest rates will definitely continue to move higher. So let me tell you about one type of stock, with a couple of recommendations that will be good investments for both […]
Why “Beating” Inflation with Your Investments Isn’t What You Want
I get a lot of questions about investing to beat or mitigate inflation. I think that is the wrong way to think about your investment strategies. While inflation is a consideration, your investment choices should generate steady returns to help offset the rising cost of living. One concept to grasp is that the effect of […]
A New Dividend Growth Star is Born
Last week, AT&T (T) spun off Warner Media. Now, I’ve recommended AT&T in my The Dividend Hunter service since November 2020. The dividends since then have been great. But now that the spin-off is done, it’s time to evaluate the prospects of both companies. My subscribers are ready for some share price appreciation to counter […]
Stop Investing in Stories – Focus on Fundamentals
Last week I spent a few days on the road with my travel trailer. On those long driving days, I like to listen to CNBC on Sirius XM. That service is the greatest thing ever for road trips, and listening is especially fun when the market is having a big down day. You would think […]
The Market Lost 5% Last Quarter – But You Didn’t Have To
As we tally up our investment results for the first quarter of 2022, this headline from Bloomberg sums up what happened to many investors: This doesn’t have to be true for you as an individual investor, but first, let’s see how the major market averages did for the quarter. Dow Jones: -4.5% Nasdaq: -9.08% Russell […]
Time to Shift Gears on Your Energy Investments
Last week, the Biden Administration announced a massive, long-term (up to six months) plan to release a million barrels of crude oil per day out of the Strategic Petroleum Reserve. On that news, the WTI oil price “tumbled” from $108 to $104 per barrel While I don’t think the move will bring energy prices back […]
Why Last Week’s Inverted Yield Curve is Not the End of the World
Last week, the financial news media went crazy when the Treasury yield curve inverted. If you listened to the news, you likely thought that the economy was sitting on the verge of a recession. But let’s talk about what the current yield curve really has to tell us. The Treasury yield curve plots current Treasury […]