While the efficient market hypothesis suggests that one should not be able to beat the market consistently, fortunately for active investors this is not the case. In fact, a new, in-depth study has identified a number of investing styles that have demonstrated durable outperformance across a variety of market backdrops. For these six market-beating styles (including which one has proven to be the most effective), as well as some other important takeaways from the study for active investors, CLICK HERE.
Among the hot IPOs expected this year are the two biggest ride share companies in the country: Uber and Lyft. While Lyft is targeting an IPO valuation of $20 billion to $25 billion, Uber could be worth more than $120 billion. What are investors to make of these two IPOs, which will undoubtedly generate much hype? For some possible clues as to how these IPOs might perform, the author of today’s article looks at how the 157 IPOs that have taken place in the past 12 months have delivered (or failed to deliver) for investors. For more, CLICK HERE.
“Technology companies aren’t the only ones that can profit from technological advances. Nor are startups the only ones harnessing technology to generate significantly positive growth,” notes today’s article. It proceeds to identify nine technology themes (e.g. nanotechnology, medicine and neuroscience, robotics) and highlight the leading company within that theme (be it as a producer or user of the technology) that is currently the most undervalued. For more, CLICK HERE.
After a particularly rough fourth quarter in 2018, tech stocks have been staging an impressive recovery so far this year – but Morgan Stanley is warning that, due to bleak growth prospects, lofty valuations and various other potential challenges, tech stocks could be particularly vulnerable when the current market rally starts to peter out later this year. Still, the firm does see some opportunities in the sector. For more, CLICK HERE.
“Real estate investment trusts… are usually considered income investments, so some investors panic and sell them when interest rates are rising,” notes the author of today’s article. But now that the Fed seems to have adopted a more dovish stance towards interest rate hikes that concern would seem to have been put to rest for now, and REITs – which outperformed the S&P 500 last year, have continued to outperform so far this year, and which perform well compared to the broader market over the long term – may have increased appeal. For all 32 REITs in the S&P 500 – nine of which sport yields over 4% – CLICK HERE.
“Some will make millions in marijuana stocks, but many more will lose their shirts,” states the author of today’s article, which focuses on the recent run-up in marijuana stocks and how those already invested in marijuana stocks (and those thinking about becoming invested in marijuana stocks) may want to approach it. What does the author identify as the real reason behind the run-up, what do money flows from the “smart money” indicate, and what might various types of pot stock investors – and prospective pot stock investors – want to do now? CLICK HERE.
If you were sent back in time 40 years and had the option of either investing $100 in the S&P 500 every month for the next 40 years (dollar cost averaging) or saving $100 each month and, having the ability to know when the market was at an absolute bottom between two all-time highs, only invested when the S&P 500 was in a dip (buying the dip), which approach would you be better off choosing? The prevailing wisdom is that buying the dip is superior – but, according to a recent study, that prevailing wisdom is wrong. For more, CLICK HERE.
Low-priced stocks offer investors – especially more aggressive traders – the opportunity to not only make a decent profit in the event of even relatively small price moves, but also to buy more shares than they would be able to of large-cap stocks. Today’s article highlights five stocks trading under $10 that the authors believe “While more suited for aggressive accounts… could prove exciting additions to portfolios looking for solid alpha potential.” For these five stocks – including a company that “could be poised for big gains as liquefied natural gas (LNG) exporting continues to ramp higher”, CLICK HERE.
“As always, the latest report can confirm or change opinions about a stock,” notes the author of today’s article. So what does the latest report from Starbucks indicate about the attractiveness of its stock for investors? The author takes a detailed look at the contents of the report and how analysts’ response to it could drive the next price move for Starbucks stock – a price move that investors may want to buy into. For more – including how investors may want to go about establishing a position – CLICK HERE.
After its worst December since 1931, the S&P just posted its best January performance since 1987. The question now is whether there is more upside ahead (and thus now is a time to buy) or whether there is trouble ahead. One technical analyst in the “trouble ahead” camp is pointing to two specific developments that may be warning signs for stocks – one development related to small-cap stocks and one related to gold which he states “could be an isolated event, [or] could mean something more.” For more, CLICK HERE.