Stocks

Sunday Edition: The Misunderstood Role of Stock Dividends

In Today’s reprint of Thomas’ Rebel Income newsletter ($1,164 annual subscription), he discusses the often overlooked but incredibly important role dividends play in your overall returns.   As you’ll see, over the last 25 years, $1 invested in 1990 has grown to almost $10 today including dividends. Whereas that same $1 without dividends has only grown to $6. That’s a… Read More »Sunday Edition: The Misunderstood Role of Stock Dividends

Small Cap Value Stocks Have The Best Returns, But Can You Stomach The Catch?

Historically, small cap value stocks are the best performers. They don’t trade in sync with the market and often are waiting to be discovered. The “waiting to be discovered” period can last for a few years. Introduction Almost a month ago we discussed how, from a risk-reward perspective given current valuations and historic performance, it… Read More »Small Cap Value Stocks Have The Best Returns, But Can You Stomach The Catch?

Minimize Risk Without Sacrificing Returns? Sven Tells You How

By dissecting the S&P 500 per valuation quintiles we see that only parts of the market are overvalued. Historically, buying the lowest PE quintile stocks has increased annual returns by 360 basis points. High PE stocks have large market capitalizations which force you to own more of them through index funds, increasing your risks and… Read More »Minimize Risk Without Sacrificing Returns? Sven Tells You How

Signs of Fragility in the Economy Point to an Impending Bear Market. What To Do Now To Protect Yourself.

The last jobs report was good news but it also indicates higher costs and full employment. An “easy to hire, easy to fire” mentality is in the air. Healthcare, cash or short term trades should be the best options in this situation. Introduction Last week the Nasdaq and S&P 500 reached yet another record high.… Read More »Signs of Fragility in the Economy Point to an Impending Bear Market. What To Do Now To Protect Yourself.

Euphoria & Denial Point to the Last Days of the Bull Market

Risks are cumulating and getting bigger. U.S. GDP growth is slower than expected, earnings and oil prices continue to decline. Japan is unable to grow while BREXIT risks are still unfolding. Introduction It is difficult to find good news lately. The last really good news was the June jobs report when 287,000 jobs were added.… Read More »Euphoria & Denial Point to the Last Days of the Bull Market

Corporate Earnings of the S&P 500’s Top 10: Why It Is Important for You

Corporate earnings and fundamentals are variable, pick the stocks that best suit you. There are low PE ratio stocks, high growth stocks, and high dividend yielders – anything you might want. But be aware: some companies engage in buybacks that are detrimental to shareholders’ value. Introduction When you add up the top ten companies by… Read More »Corporate Earnings of the S&P 500’s Top 10: Why It Is Important for You

The Economic News is Very Good, But Keep An Eye On the FED and GDP This Week

Housing is showing inflationary signs but still offers an opportunity to profit from the rising trend as a downturn is unlikely and not expected in the short term. Amidst all the positive news, manufacturing turned negative. Yet despite this, stock valuations keep going up, increasing the risk. In the week ahead: the FED’s decision and… Read More »The Economic News is Very Good, But Keep An Eye On the FED and GDP This Week

Beware of “Thinkless” Investing

Passively managed funds do offer the lowest fees but invest in stocks without “thinking”. High positive net inflows into passively managed funds push large caps higher regardless of fundamentals. If non “thinking” investors panic when things turn, large caps will be the worst performers. Introduction Today we are going to discuss two related topics: fees… Read More »Beware of “Thinkless” Investing

Should You Switch to a More Active Investing Strategy?

Passive investing has been excellent in the past decade but has gone nowhere in the last two years. Higher valuations are increasing volatility and risk which gives opportunities for more active strategies. Due to the high valuations in 1968, only an active strategy would have produced positive returns in the period up to 1982. Introduction… Read More »Should You Switch to a More Active Investing Strategy?