Sunday, May 19, 2024
Crude oil prices have dropped significantly since early June, and energy stock prices have matched or exceeded the decline. Yet energy commodity prices remain very high, and the supply/demand imbalances point towards higher prices later in the year. Now is the time to invest in all three of the energy subsectors. Here’s my favorite way […]
Block trades can be useful in determining what smart money sentiment is on certain stocks. For example, a large put spread traded last week in Chewy (CHWY). The pet supplier site has seen its share price rebound off the lows in recent weeks. However, this recent put spread suggests there could be further downside ahead. […]
Faced with the twin problems of inflation and recession, investors are looking for companies that fare well, no matter the economic climate. A typical recession tends to drive investors to certain sectors of the market to move their money so they can hunker down and ride it out. The consumer staples sector has been a […]
Since the peak in December… The Nasdaq has been absolutely slammed… down 28% as I write this. 2020 fever for Zoom, Peloton and other high-flying tech stocks has long cooled. However, I’m looking at a chart from one of America’s most famous tech investors… And it looks like it may actually be bottoming. I explain […]
Warren Buffett has done it again… Buffett’s Berkshire Hathaway (BRK.A, BRK.B) put $232 million into the Chinese battery and electric vehicle company BYD (BYDDY) in 2008. That stake is now worth a cool $7.7 billion, making it one of Berkshire’s most lucrative investments. Meanwhile, Elon Musk has heaped scorn on electric vehicle company BYD. Back […]
As inflation has climbed to 40-year highs, interest rates have also ratcheted higher. For borrowers, higher rates are not a good deal, as they raise the costs of taking out loans. For investors, however, higher rates open up opportunities to invest safely and still earn a meaningful return. Today, let’s talk about an investment product […]
Once a popular meme stock, Bed, Bath & Beyond (BBBY) could be in trouble. The stock price has recently shot higher on news that insiders are buying the shares. However, a large purchase of put options that expire in January of 2024 suggests there could be significant downside in the stock. This put position will […]
There was quite a bit of unusual options action in the Energy Select Sector SPDR ETF (XLE) last week. Energy has been in the spotlight with the price of crude oil plunging in recent days. However, a large ratio call spread in XLE suggests that energy stocks may have more room to rise this year. […]
Building income by investing for high yields and compounding that with reinvestment just works. And the Rule of 72 gives an easy way to project what turn out to be very attractive future results. Today, I want to show you this by revealing the income growth in my personal retirement account… And how I’m doubling […]
For thousands of years, the dual histories of humans and copper mining have intertwined. Copper is one of the few metals occurring in nature in a directly usable metallic form. This led to very early human use, beginning around 8000 BC. Thousands of years later, it was the first metal to be smelted from sulfide […]
