The most popular stocks with hedge funds in the fourth quarter of 2019 were the same stocks that were the most popular with hedge funds in the third quarter, with Microsoft remaining the most widely-held stock among hedge funds. But, as the author of today’s article notes, “More interesting were the several stocks ranking below this group of crowded holdings that enjoyed an especially large surge in hedge fund support during the fourth quarter compared to the previous three-month period.” What three stocks saw a significant jump in interest from hedge funds as 2019 came to a close? CLICK HERE.
If you’re concerned about the potential impact of the coronavirus (and/or any other number of risks) on the markets, the author of today’s article recommends turning to “the only ‘back to basics’ technique I know of that’s never failed to produce huge profits over time.” What is this technique – and what about its “closely related cousin” that’s been shown to generate even more powerful results? CLICK HERE.
While we have likely not even hit the peak of the coronavirus crisis yet, whenever the epidemic does come under control, many expect companies and markets impacted by the deadly virus to bounce back. However, as one fund manager cited in today’s article notes, “Everyone thinks everything is going to bounce if demand comes back, but previous incidents have shown that not every company will benefit the same way”. For three sectors – and specific companies within those sectors – that could face particularly difficult roads to recovery, CLICK HERE.
Two topics seemed to dominate the discussion at this year’s ‘Inside ETFs’ conference – and they suggest that big changes are on the way for the red-hot ETF space. Those two topics? The rise of ESG investing – which seemingly catapulted from niche strategy to mainstream last year – and the emergence (and rapid growth) of so-called “nontransparent” ETFs. For more on these two trends – and additional insights from the ‘Inside ETFs’ conference – CLICK HERE.
Of the two ways companies can return cash to shareholders – dividends and share buybacks – which is better for investors? How about a combination of both! Many companies that buy back shares also pay dividends – and the author of today’s article points out that “by including buybacks in their definition of ‘yield’, yield-seeking investors can greatly widen their opportunity set.” For 10 undervalued companies that are standouts when it comes to total shareholder yield, CLICK HERE.
Tesla’s stock, which has more than quadrupled since last summer, would certainly seem to be in a bubble – and now one model is indicating that, based on the magnitude of Tesla’s price run-up over the trailing two years, there is a more than 80% chance that bubble will burst. For more – including why the odds of a Tesla stock crash may be even worse than this model suggests – CLICK HERE.
“The coronavirus has spread seemingly indiscriminately, but its impact on stocks has been more focused,” notes the author of today’s article, who proceeds to identify some potential bargains among some of the stocks that have been pummeled by the virus: airlines, cruise-ship and casino operators, oil companies and more. For more, CLICK HERE.
The author of today’s article acknowledges that “generally speaking you DO NOT want to buy stocks in a bad sector”. So why did he recently buy a highly speculative penny stock in a sector that he admits “has been among the worst performing sectors of the entire stock market in the past twelve months” (i.e. cannabis stocks)? Because he believes the sector is set for a weeks-long (or even months-long) rally and that new companies in the sector – such as the stock in question – are likely to go up the most. For more, CLICK HERE.
When it comes to foretelling an impending price move by a stock, one indicator can be unusual options activity. However, the author of today’s article notes that “Using option activity as an indicator of impending price moves is difficult, subjective, and unreliable.” To increase your chances of success when using options activity to predict a price move, the author examines “some basic criteria for identifying meaningful activity and avoiding the chase for an activity that ends up being useless noise.” For more, CLICK HERE.
For a moment, it looked like a dramatic flare-up of tensions between the U.S. and Iran could be the black swan event of 2020, but the situation has since de-escalated (for now). So what other potential surprises might 2020 have in store? The global strategy team at Credit Suisse has devised its annual surprise predictions, and while the author of today’s article notes that, while “the investment bank takes pains to insist this isn’t a set of expectations for the year…the predictions do pose some interesting food for thought.” For more, CLICK HERE.