The Japanese Nikkei 225 continues to hold above 13,000, but with the index still up 56% from its recent low in mid-October, I continue to advise you to look elsewhere. The index was down 23% after its recent correction, but it has rallied four percent since. Even so,…
There are only two methods to drive revenues: a company can increase its price to the consumer (but this doesn’t always come across as being prudent, especially given the current low interest rate and inflation period), and then there’s the more viable way, which is to expand into…
Is it just me, or have investors completely abandoned the concept of risk and reward? The reality of the situation is that the key stock indices are treading in shark-infested waters and the risks are piling up daily. I see bearish signals all over, but the theme among…The International Monetary Fund (IMF) has officially lowered its growth expectation for the Chinese economy, the second-biggest engine in the global economy. The IMF expects China to grow 7.75% this year compared to the eight percent it previously projected. The First Deputy Managing Director of the IMF, David…
“Opportunity cost”—it’s a phrase used in microeconomic theory to denote the costs that are forgone by not having your resources in the highest returning assets. It is a phrase that’s pertinent to the stock market. Without question, I remain completely taken aback by what has transpired with the…
I just had lunch with a friend who previously was an active investor. He was there right in the thick of it during the Black Monday crash in 1987 and the Internet bubble in 2000. He made tons of money in the stock market in a short period…
One company that always reports early is NIKE, Inc. (NYSE/NKE). The company has doubled on the stock market since 2010, and it has more than tripled since 2006. This kind of stock market performance really is amazing. In just three years, a $12.5-billion company has become a $25.0-billion…
Warren Buffett amassed his incredible fortune not by timing the stock market, but rather by careful fundamental analysis and the buying of businesses he felt had excellent upside. So when Buffett speaks on the stock market, you have to listen. He doesn’t have the same market clout he…
As of April 22, 67% of the companies in the key stock indices that reported their corporate earnings were able to beat earnings estimates, but only 44% of them were able to exceed the revenue expectations of Wall Street analysts. (Source: Reuters Alpha Now, April 22, 2013.) Looking…The fourth-biggest hub in the eurozone, Spain, is facing a severe economic slowdown. According to Spain’s National Statistics Institute in Madrid, the unemployment rate in the country has surpassed the 27% mark, with more than six million people jobless—the highest number since 1976. (Source: Bloomberg Businessweek, April 25,…
As companies in the key stock indices report their corporate earnings for the first quarter of 2013, it appears their revenues aren’t improving. While I know it’s a blanket statement, what this means is that companies are not selling more goods or services; their corporate earnings are being…
In these pages, I recently discussed the slowing global economy and its potential impact on stocks. (Read “Caution: Market’s Strength Is False.”) We heard China was showing renewed evidence of stalling after its first-quarter gross domestic product (GDP) growth showed some fragility. Of course, it should not be…
Commodity prices have been heading lower on the charts. In fact, it has been an awful few days for gold as prices plummeted, failing to hold $1,500 an ounce. Prices dove right through support at $1,400 to $1,385.62 on Monday—the lowest level since 2011. The shiny yellow ore…
The Walt Disney Company (NYSE/DIS) has been doing exceedingly well operationally and on the stock market over the last few years. Disney’s annual sales and earnings growth have been very good and consistent. The position just doubled on the stock market over the last 18 months, which is…
The golden rule works. In Milwaukee, Wisconsin, there is an Irish inn and pub called the “County Clare.” I happened to be walking around looking for breakfast and checked it out. I sat down, ate one of the best breakfasts ever, and then learned it was complimentary. I…
It is absolutely critical that you evaluate all your holdings for risk. The U.S. stock market needs to correct, but the sovereign debt crisis in Europe and the euro currency together remain a festering powder keg. The real problem for the euro is the lack of leadership—in banking…
I have been a major supporter of gold for the past decade during the run-up in prices, but I can’t say I’m that confident at this moment. Of course, there are still the issues in the eurozone, tension in the Middle East, and the crazy man running North…
There’s a belief that the rich become richer because they are frugal and know how to save. The budget cuts and tax increases at the beginning of the year saw higher income taxes for those earning over $400,000 annually. President Obama had hoped to place higher taxes on…
If you go to Europe and you find yourself in Holland (the Netherlands), you’ll likely fly through Schiphol Airport on the edge of Amsterdam. It’s one of the best airports in the world, in my humble opinion. When you go through security, you are treated like a paying…
McDonalds Corporation (NYSE/MCD), a bellwether for the fast food industry, recently hit a barrier after coming in short on its earnings in both the second and third quarters. But the maker of the “Big Mac” came back and beat the Thomson Financial consensus earnings-per-share (EPS) estimate in the…
