• 09 Sep
    How To Spot The Next Facebook, Amazon, Netflix or Google

    How To Spot The Next Facebook, Amazon, Netflix or Google

    • Earnings aren’t that important but revenue and customer growth is essential.
    • The business has to have the capacity to grow without issuing stocks.
    • Timing is everything with growth stocks.

    Introduction

    “FANG” is the name that has been given to the elite group of technology stocks that includes Facebook, Amazon, Netflix and Google.

    These magnificent 4 have delivered astonishing growth. Since its IPO, Amazon has returned 52,491% (yes, you read that correctly) to shareholders. The other three haven’t quite been that extreme, but have still seen incredible growth, with Netflix returning 9,198% since its IPO, Google returning 1,429%, and Facebook 338%. More →

  • 08 Sep
    Getting Bored? You’ll Want To Read This

    Getting Bored? You’ll Want To Read This

    • Wall Street doesn’t make money if things aren’t moving, so beware of interesting new investment vehicles marketed with the guise of offering you better returns.
    • In this article, we’ll share an old investing gem that is essential to know for every investor.
    • The time to spice up your portfolio is when it looks like the world will end tomorrow.

    Introduction

    It has been a boring summer. The S&P 500 reached new highs, but has traded in a 2% trading range for the last two months.

    The situation isn’t better in the longer term. In the last two years, the S&P 500 is up 4.3% per year which is not spectacular for stocks, but it’s also not bad. More →

  • 07 Sep
    The High Costs Of Low Interest Rates

    The High Costs Of Low Interest Rates

    • The $3.4 trillion public retirement system funding deficit we have currently will only continue to get bigger when expected returns are lowered from science fiction levels of 7% to realistic levels of 3% to 4%.
    • Insurance companies and banks are also at risk as their business models are in jeopardy.
    • Low interest rates are good in a crisis situation, but harmful in the long run. However, politicians have hesitated globally to make changes.

    Introduction

    The fact that interest rates are low is not news. While many are discussing whether the FED will raise rates or not, few analyze what the long term costs of such an artificial environment will be.

    The environment is artificial because if it weren’t for the low rates, or negative rates in many parts of the world, there would be no lending as you don’t lend below a certain interest rate. In any case, this will have severe consequences on the economy, liquidity, inflation, banks, insurance companies, and retirement funds, and could create bubbles that will take years to deleverage. More →

  • 06 Sep
    Headlines Are Telling Us To Worry, But Is It Time For Greed Instead?

    Headlines Are Telling Us To Worry, But Is It Time For Greed Instead?

    • Jobs look great, more people than ever are employed and the number is consistently growing.
    • There is nothing to worry about with China as it has room to grow and incredible potential.
    • Economic scares based on short term news provide great investing opportunities; the macro trends are what you should worry about.

    Introduction

    As investors it’s important to know what’s going on in the economy, but what has to be clearly differentiated are single data points and trends.

    We are constantly bombarded with pieces of information that can mean anything. Last Friday’s jobs report—with 151,000 new jobs—was below the 180,000 expectation of analysts. Headlines like the Wall Street Journal’s “Soft Jobs Data Cools Market Expectations on Fed Rate Increase” were seen on every news site, but such data seldom has an actual influence on your returns. More →

  • 05 Sep
    Do Your Future Returns A Favor

    Do Your Future Returns A Favor

    • S&P 500 companies are not only returning more cash to shareholders than their earnings, but also more than their cash flows.
    • The trend is resembling the one prior to the financial crisis.
    • Not all stocks are unsustainable with their cash returns, so check your portfolio.

    Introduction

    A common piece of financial advice is not to spend more than you earn as it will eventually put you in trouble. Well, this is exactly what corporate managers are doing. Through dividends and buybacks they are spending more than they are earning. If the common advice is of any value it should be trouble ahead for the stocks that are doing so.

    In this article we are going to analyze the situation, look at the real short and long term risks and conclude in fashion. More →

  • 04 Sep
    Sunday Edition: Recognizing Fundamental Strength

    Sunday Edition: Recognizing Fundamental Strength

    I can’t believe Thomas is sharing this with you. 

    Last week I emailed him and asked for content for this weeks Sunday Edition. Typically he pulls something from a past issue of Rebel Income (annual subscription $1,164) but this week he has written an entirely new piece where he shares with you the exact fundamental metrics he uses to identify deeply undervalued companies.

    The kind that have helped him turn every $10,000 invested into over $18,075 in just over two years. More →

  • 02 Sep
    Bonds, Ratings and Yields, Oh My…

    Bonds, Ratings and Yields, Oh My…

    • Credit ratings are very subjective and should therefore be taken with a grain of salt.
    • Junk bond yields have been declining since January, but their volatility represents a huge risk.
    • Be careful with international bonds as you might be exposed to greater risk for lower yields.

    Introduction

    Last week we discussed how dangerous common retirement advice can be. Currently, One of the biggest risks comes from the low yields on bonds because any kind of interest rate increases would immediately lower bond values which might have a severe impact on your retirement. But as there are many types of bonds, today we are going to discuss and compare the various yields and the risks involved within bond investing. More →

  • 01 Sep
    Want To Make Money On Your Morning Cup of Coffee?

    Want To Make Money On Your Morning Cup of Coffee?

    • Demand for coffee is always increasing while supply is unstable and facing structural climate issues.
    • Investing opportunities include coffeehouse chains and direct investments in coffee through ETNs.
    • As you have to give your kid $3.65 for a Grande Caffé Latte at Starbucks, you might as well make some money on it.

    Introduction

    Most of us drink coffee on a daily basis, but how often do you think about investing in those same cups of coffee? This article is going to analyze global coffee trends, investing opportunities and risks related to coffee.

    Maybe it won’t be just your daily indulgence anymore, but something that will enable you to enjoy more of it in an early retirement. Legendary investor Peter Lynch always said to invest in what you know, and coffee is something a lot of us know. More →

  • 31 Aug
    Where To Look For Hope In Yellen’s Latest Speech

    Where To Look For Hope In Yellen’s Latest Speech

    • The FED is predicting long-term average interest rates of around 3%, not the 7% that used to be the case.
    • Even small increases in interest rates will have a huge effect on yielding assets’ values.
    • Even Yellen it telling us that productivity is the main factor for growth, so add it to your portfolio.

    Introduction

    There are two main drivers of what can be done to improve the economy. One is new inventions and structural reforms that increase productivity, while the other is monetary policy. As the former takes time to get results, we mostly talk about the latter. We can assume that increased knowledge and structural reforms take care of themselves. Companies are always investing in new technologies, and governments, no matter what kind, slowly push for social and political improvements. The results can only be seen if we look at it in the long term. The quality of our lives is much better now than it was 20 years ago and 20 years from now will be even better. More →

  • 30 Aug
    Is There A Second Chance For 3D Printing?

    Is There A Second Chance For 3D Printing?

    • 3D printing stocks are back to the pre-3D printing stock boom.
    • The future of 3D printing looks too good to be true.
    • Microsoft is an example of how it is also a good idea to wait and invest only when the trend is really confirmed.

    Introduction

    3D printing isn’t currently in fashion in the investing world, but it serves as a perfect example of how investors’ excitement about uncertain future prospects can fuel an incredible stock boom that quickly fades as fundamentals don’t support the excitement. More →

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