Putting together a portfolio of stocks doesn’t have to be complicated. But a strong adherence to investment risk is useful with an equity market already at a record high.
What to Consider When Establishing Your Core Investing Portfolio
If anything, a substantial price correction would be helpful in terms of creating more attractive opportunities for new money, but building an equity market portfolio doesn’t have to be rushed. It should be deliberate, proportioned, and nimble to take advantage of what is the norm in capital markets—volatility…. Read More
To see where the stock market is headed in 2015, we don’t have to look much past these two important economic factors: the U.S. dollar and the economy, both domestically and outside the U.S.
Rising U.S. Dollar to Impact U.S. Equities
After the Great Recession, to drum-up sales, U.S. companies focused their attention elsewhere in the global economy. With the U.S. dollar sliding lower in value back then, American companies focused on getting sales from other countries…sales that could be returned to the companies in the form of greater U.S…. Read More
February appears to be setting up to be a month of romance with the stock market after the DOW blasted up 521 points in the first two sessions of the month.
Now, you must be wondering about how the stock market is playing, given the turmoil and volatility we witnessed in January that drove the key stock market indices to below their respective 50-day moving averages (MAs). The only thing that has really changed from the end of January has been the rally in oil prices with the West Texas Intermediate breaking $53.00 on Tuesday, prior to giving up some gains on Wednesday morning…. Read More
It really is a great time to be in the railroad business. Cash flow is abundant and these stocks are poised for more capital gains.
While coal shipments have been a weak spot for railroad companies, virtually all other major customer sectors are producing excellent comparable growth.
And that growth is directly reflected in share prices. Railroad stocks have been—and continue to be—on a tear.
When the broader market corrected in October, Union Pacific Corporation (UNP) dropped just below the $100.00-per-share level for an approximately 10% correction…. Read More
Lots of corporate earnings are still streaming in for the third quarter, though mostly among smaller-cap companies. Top-line growth certainly isn’t robust, but it’s not bad either. The surprise I’ve noticed in third-quarter reporting has been the profitability. There has been plenty of double-digit comparable earnings growth on single-digit sales reported.
One micro-cap company that just reported a solid quarterly performance is Blount International, Inc. (BLT).
This Portland, Oregon-based company has been around since 1947 and was first named Oregon Chain Saw Company…. Read More
Ask even an amateur economist, and they will tell you this: an increasing money supply eventually leads to inflation. It’s a simple concept; the more paper money there is in the system, the less it’s worth and the less it buys.
And this is exactly what is happening in the U.S. economy. The money supply is growing at a fast rate when compared to historical averages.
Consider the chart below of the M1 money supply (coins, currency, and demand deposits, such as checking accounts) in the U.S…. Read More
In terms of stock market direction, the Dow Jones Transportation Average recently pushed through to another new record-high. The index retrenched along with the broader market in early October, but it fought back hard to just over 8,800.
Within the index, countless stocks have been doing well. Alaska Air Group, Inc. (ALK) slumped to $42.00 in the lead-up to its earnings report. Now, it’s almost $55.00 a share after reporting another strong quarter…. Read More
With the winter months just around the corner, Douglas Dynamics, Inc. (PLOW) is looking forward to as much snow falling as possible.
Based in Milwaukee, Douglas Dynamics is one of the many small- and micro-cap companies reporting very good earnings based on solid domestic demand.
This company manufactures commercial snow plowing equipment and parts that attach to vehicles.
Not only did Douglas Dynamics report a record third quarter for 2014, but the company also beat Wall Street consensus on revenues and earnings, and it guided both revenues and earnings per share for all of 2014 above consensus…. Read More
It looks like large-cap technology stocks, especially those related to online businesses, are experiencing a slowing down of what’s traditionally been some very solid growth.
Amazon.com, Inc. (AMZN), Netflix, Inc. (NFLX), LinkedIn Corporation (LNKD), and Groupon, Inc. (GRPN) have all been under pressure.
Many pure-play online businesses are still struggling to turn a profit, and investor sentiment towards these stocks has changed.
Yet in this marketplace, dividend-paying blue chips continue to look good, and there’s been a resurgence in many large-cap share prices, many of which sold off before their earnings…. Read More
Corporate earnings are flooding in, and while there are always disappointments—typically in not meeting Wall Street expectations—the numbers are pretty good.
The stock market was relieved when conglomerates started reporting. 3M Company (MMM) saw its share price pop almost five percent higher after beating estimates and reporting a solid improvement in U.S. market demand.
I continue to like this position for long-term, income-seeking investors. (See “Off-the-Radar Company Delivering Attractive Earnings.”)
The company reported record third-quarter sales growing a modest 2.8% comparatively to $8.1 billion, with local currency sales growing 3.9% and acquisitions adding 0.1% to sales…. Read More