Monday, May 5, 2025
In a market like this, share prices are down across the board, and high-quality monthly income stocks become great bargains for investors focused on the long term. While there are many choices for income investors to grab a great deal on dividend-paying stocks, I like to use these market correction opportunities to pick up shares […]
Options are commonly used as hedging instruments, especially options on indexes and ETFs. The iShares MSCI EAFE ETF (EFA) is a popular asset allocation ETF which invests in stocks in developed countries ex US. As such, it makes for a good product to hedge with (using options), since it tracks the global equities market fairly […]
It doesn’t take much time on Google before you find headlines like these: The Last Thing the Polarized US Needs Is a Spike in Food Prices and a Collapse In 401(k)s… It’ll Probably Get Both (source) Financial expert urges caution as $7T stock market slump sends 401(k)s tanking and some joke their retirement accounts are […]
When the stock market goes into a bear market, it drags down almost every stock. Sound, profitable companies see their shares driven down right alongside the perhaps more deserving stocks that may have been overvalued. If you understand how a company operates and the concept of relative valuations, you can, during a bear market, find […]
Energy. Every aspect of our lives requires some form of energy, from transportation, to the growing of food, to powering your Facebook feed. For example, the internet is forecast to soon consume one-fifth of all the world’s electricity. The recent double whammy of pandemic restrictions and sanctions on Russia has revealed how fragile the global […]
Investors may want to keep an eye on biopharmaceutical stocks. We could be on the cusp of a massive wave of new M&A activity. As Reuters reports: “Biotechs are coming off their worst April since 2002, and the crash in valuation has made them attractive M&A targets, especially when small drug makers are grappling with […]
There’s an interesting trend I’ve found on Apple’s stock that’s gone back 20 years. Everytime Apple weighs down this line on the chart… eventually, it breaks down and finds its support on a second line. Based on this multi-decade trend… Apple could potentially drop to $100 in the coming weeks. That would be a 33% […]
The wealth destruction this year experienced by investors who held the hot stocks of 2021 has been brutal. A recent Wall Street Journal email noted how investors have now changed strategies in response – better late than never. But if you really want to see long-term success in the rising-interest rate, high inflation, expensive-commodity era […]
The market sold off sharply last week, with both stocks and bonds getting hit hard. Historically, bonds move opposite of stocks. But these days, with interest rates going higher, bonds also have downside risk. Looking at options action in iShares 20+ Treasury Bond ETF (TLT), it does not appear that the smart money expects bonds […]
Last week, I told my premium subscribers to get out of a stock that had been panic-sold two months earlier. By understanding exactly what was going on, we avoided the panic-triggered losses and sold at a price 130% above the selloff low. So, let’s talk about how not to be an emotion-driven, lose-your-money, panic-selling investor… […]
