Saturday, April 20, 2024
If Vice President Joe Biden is elected President, his tax plan to increase federal government revenue by $3.0 trillion relies heavily on higher corporate income tax collections. If the plan goes into effect, the higher corporate taxes could give a lift to the stocks of companies that, by law, do not pay corporate income taxes. […]
The upcoming 2020 third-quarter earnings season has the potential to be the most critical news period for investors that I can remember. The previous earnings season covered the 2020 second quarter, a period when much of the economy was in lockdown. The third-quarter results will, for many companies, be our first look at how the […]
My title at Investors Alley is Lead Investment Research Analyst for Income and Dividend Investing. My focus is on helping investors build sustainable, high-yield income streams from their portfolios. I don’t have much use for stocks that don’t pay dividends or bond funds with near-zero yields. However, I do see value in owning precious metals, […]
Short selling is a trading strategy to bet that a stock price will fall. However, if many traders all short the same stock and the trade turns against them, they can get caught in a money-losing short squeeze. For high-yield stocks, selling short is often a bet on a dividend cut. When that doesn’t happen, […]
When tech stocks kept climbing this summer, it made investors wonder whether the sectors that remained undervalued after the pandemic-triggered crash would ever have their day. But now, as September draws to a close, we’re beginning to see initial indications of a stock market sector rotation: returns show the rotation out of tech, and into […]
Is brick-and-mortar retail dead? I’m not so sure. My research points to a different paradigm for retail sales. I believe you will see more coordination and integration between traditional brick-and-mortar retail outlets and the large online sellers. Instead of competing for market share, the smart retailers from both sides of the digital divide will combine […]
2020 has been a wild ride for investors in energy infrastructure stocks. A range of factors, including energy demand destruction due to COVID-19, a meltdown of the high-yield investment sectors, and a perception that new, renewable energy technologies, will quickly replace oil and gas usage. Energy infrastructure, sometimes called energy midstream, are the services that […]
It was just a handful of months ago that the coronavirus pandemic took hold of the U.S. population and economy. Most states put their populations into lockdown for much of April and May, which did slow the spread of the virus. Still, people can’t stay at home forever, and reopening of much of the economy […]
In March and April, the pandemic-triggered stock market crash hit the high-yield investment sectors, especially hard. Exchange-traded funds and notes (ETFs, ETNs) lost up to 90% of their value in a very short time. UBS to Redeem Two Leveraged Mortgage ETNs After 95% Plunge “Leveraged” is the word to note. Before the COVID crisis, there […]
The stock market crash at the start of the so-called “coronacrisis,” was especially devastating to share prices in high yield sectors. I attribute the extra steep declines to what I have labeled a “liquidity event,” in which leveraged funds using the high yield investments were forced to sell, sell, sell, to avoid becoming leveraged into […]
