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Build Cash Reserves For Superior Stock Returns
In my previous article I discussed moving to a new stock strategy that includes cash reserves. Some readers asked if, in this time of near-zero interest rates, it wasn’t a better to stay fully invested. My answer is “no” because yield isn’t the issue – it’s the benefits to be had from using cash... »
3 Steps To Winning In The New Bull Market
The “easy” money 3-year bull market is ending, but a new one is beginning. The previous, extended period of rising stock prices was built on improving fundamentals. The 2010 and 2011 mega-fear periods helped keep worry alive, allowing stock investors to acquire and hold attractively priced stocks. However, the shift to normality is upon... »
5 Reasons To Sell Apple Before It Peaks
Apple (AAPL) is a bipolar stock. In its down periods, Apple seems too good to last – that it’s only a matter of time before the abnormal combination of massive new product sales and extraordinarily high profit margins will collapse, taking earnings and the stock with it. However, in its up periods, Apple appears... »
Apple And Google Stock Splits + DJIA = Potential Bonus Returns
Articles are promoting the idea that a split of $500 Apple (AAPL) stock and $600 Google (GOOG) stock could unleash buying by individual investors. The logic is that owning 10 shares of a $500 stock is unacceptable to many, but they would happily buy if they could acquire 100 shares at $50. Although that... »
As The Stock Market Shifts Gears, So Should We
The press and pundits are wrestling with the “Is it or isn’t it?” question of whether U.S. stocks are in a bull market. But that isn’t the question that matters. Rather, it’s “What type of bull market are stocks in?” We know that the economic indicators have improved across the board and that mega-fears... »
Microsoft’s Windows 8 Is Likely Not A Winning Ticket
The Wall Street Journal described the excitement surrounding Microsoft’s (MSFT) next “growth” product: Windows 8! It is a highlight of this week’s Consumer Electronics Show. However, while looking at the photo of smiling CEO Ballmer with Intel (INTC) CEO Otellini, I was hit with déjà vu visions of the Pennsylvania Railroad, U.S. Steel (X),... »
Even Leading Companies Can Disappear Into the Sunset
Buy-and-hold investing carries a wonderful vision: Find a successful company Buy the company’s stock Sit back, relax, and watch the money grow The problem is that most successful companies peter out, either meandering around some plateau, producing no return — or, worse, falling back with mounting losses. Many events and conditions can cause firms... »
Cerner: Healthcare Plus Technology Equals Right Place, Right Time
Cerner (CERN) caught my interest last year because of its outstanding stock performance. It is a part of the healthcare field’s modernization developments that focus on coordinating and improving medical care through technology. The company’s growth shows in its results – long-term double-digit percentage gains in both sales and earnings. The outlook for 2012:... »
CME Group’s Misfit Website Questions Management’s Skill
I was doing some Dow Jones index analysis and happened across flaws on a CME Group (CME) website that makes me question management’s skill. The misfit finding is one of those odd facts, like a bad puzzle piece, that doesn’t match the picture of a desirable investment. This article is posted on SeekingAlpha.com »
Time To Be Contrarian About U.S. Stock Holdings
I recently wrote about U.S. stocks recovering their valuations after this year’s sell-off. However, that doesn’t mean the market’s rise is over. There is another source of gains that is potentially very large. However, to view it, we need to take a contrarian stance. This article is posted on SeekingAlpha.com »
Waving Goodbye To 2 Of My 3 Wall Street Stocks
Last month I described a 3-stock Wall Street portfolio that I believed offered a good – and diversified – approach to investing in Wall Street’s activities. However, I’ve had a change of heart and have cut two of the positions. The three holdings were Goldman Sachs (GS), JPMorgan Chase (JPM) and KKR (KKR). Now,... »
7 Attractively Valued Dow Stocks
The 3rd quarter earnings report season is about over, allowing analysts and investors to incorporate both the company results and outlooks into their thinking. On Monday we examined the Dow Jones Industrial Average (DJIA) overall. Today we will see how individual firms have fared. This article is posted on SeekingAlpha.com »
Stock Market’s Health: Recovered, But Not Yet Normal
The stock market has fully recovered its lost ground from this year’s sell-off. Analysts and investors have now incorporated lower economic growth forecasts, information from company earnings reports/outlooks, and mega-trend fears. Evaluating the earnings adjustments and the stock market’s valuation show a stock market that has recovered from its oversold position. Moreover, future growth... »
Caterpillar – Up 30% With More To Go
For two years following the March 2009 bottom, Caterpillar (CAT) led the stock market ever higher. It even gave Apple (AAPL) a run for its money. Then it ran into two downdrafts this year. The first, April-June, was a valuation adjustment in line with the stock market. The second, July-September, was a recession fear... »
Low Consumer Confidence: A Nice Contrarian Indicator
Throughout the summer, we’ve heard about declining consumer confidence (AKA, sentiment). The conclusion typically drawn is that low consumer confidence now likely means low consumer spending ahead. Until recently, warnings have been sounded about weak winter holiday sales. Now, however, consumer confidence readings are creeping back, and retail sales are actually looking good. How... »
John Tobey on Seeking Alpha
