It’s common knowledge on Wall Street that September has historically been a challenging month for stocks. In the 95 Septembers since 1928, the S&P 500 has closed down 52, more than in any other month, according to Yardeni Research. If we narrow our focus to look at monthly returns over the past 30 years and […]
The Good, the Bad, and the Ugly of Trading With Jay Soloff
Today I am excited to have fellow Investors Alley editor Jay Soloff on to talk about options and trading. Jay is an experienced options trader who has had success both on the floor of the Chicago Board Options Exchange and off the floor as what we call an “upstairs” trader. We spend some time talking […]
Is Risk Consolidating in the S&P 500?
Today, I wanted to quickly show you a “Risk is Everywhere” chart. The chart has a lot to do with the lack of meaningful one-day volatility in the S&P 500 right now. Full disclosure, I found this piece of research on Twitter from Bespoke, but it is incredibly fascinating nonetheless. It talks about there being […]
The Yin and Yang of Investing in Today’s Markets
It is a confusing time for investors. For the last two years, market experts, forecasters, and pundits have been consistently wrong about the economy and the direction of the markets. Despite these issues, I am encouraged by the many opportunities available for investors to earn solid returns. But before I jump into some investment ideas […]
Why I Love “Toxic Profits” and Where to Find Them
In today’s Hidden Profit Report, I want to revisit the concept of “Loving the Toxic.” The market is clearly overextended and overvalued right now. In fact, the reading on one of my favorite valuation measures, the Excess CAPE Yield, is now at levels seen in 1969 and 2000. Today’s economy and stock market have similarities […]
Trade of the Week: S
In our 48-Hour Income service last week, we sold a put on cybersecurity company, SentinelOne (S). In 48-Hour Income, the goal of the service is to generate 1% to 3% returns per week by selling 2-day puts in certain stocks. S was about to announce earnings later in the week, and its puts looked expensive. […]
Why Value Stocks are About to Outperform
The bulk of stock market gains since last October are due to large price increases from a handful of large-cap, tech-focused stocks. But growth stocks like that have had their time in the sun. Let’s look at why value stocks could outperform in the future… According to Investopedia, growth stocks are shares of companies that […]
How Dividends Make All the Difference
History tells us that dividends are a key component of investors’ total returns. In fact, dividends have contributed nearly 30% to the 10.4% annual total returns of the S&P 500 over the long run. But as the Bob Dylan song goes, “The Times, They Are A-Changin’.” The research team from the exchange-traded fund company, Wisdomtree, […]
Is the Energy Sector Positioned to Outperform for the Rest of 2023?
Today, we’re continuing to monitor the current situation in the energy sector. As we’ve been telegraphing to our clients, we believe there’s an increasingly better chance that we’ll see this energy sector outperforming for the remainder of 2023. Looking at the monthly chart of the Energy Select Sector SPDR ETF (XLE) you can see a […]
Time Proves That Only These Four Investing Strategies Work
Today, I want to talk a little more about what does and does not work in trading and investing. The media and publishing industry are constantly screaming about new ideas and strategies that are going to make you rich in very short order. The best advice I ever got about markets and life was a […]