Sunday, November 24, 2024
Last year, investors and savers rushed to buy Series I savings bonds as their inflation-linked yields approached 10%. Now, the yield on I bonds is much, much lower. If you purchased these bonds for the high yield last year, it may be time to cash them in and invest elsewhere. Let me explain why – […]
In our 48-Hour Income service, we sold a put on Fastly (FSLY) last week. The goal of the service is to generate 1% to 3% returns per week by selling 2-day puts in certain stocks. FSLY had earnings coming out so its options premiums were higher than normal. We chose a strike that gave us […]
It does not matter which metric or statistic you use. Stocks are not cheap based on any empirically proven valuation metric. The S&P 500 P/E ratio is over 25—not the highest level ever recorded, but certainly on the high end of the historical scale. And the average P/E ratio of the stocks in the tech-heavy […]
A secondary stock offering comes with a sharp drop in a company’s stock price. Rapid price declines make investors nervous, wondering if the company is facing troubles. The recent sale of 6.5 million new shares by one of my favorite high-yield dividend stocks highlights how this type of transaction can benefit investors. Let me show […]
Stability can be a virtue in any economic climate. Consumer staple stocks are the very epitome of stability. An analysis by Verdad Research found the sector had the lowest income statement volatility of any listed sector between 1996 and 2023. Most companies that make consumer staples have reliable cash flows and steadily growing dividends—and history […]
In the past year and a half or so, there’s been lots of talk about the U.S. yield curve essentially inverting. So today, I wanted to make a couple of important points about it that’s important for you to see. As you know, the yield curve visually depicts how bond maturity dates and interest rates […]
I’ve found two opportunities for massive profits. Both are low-priced stocks that the market is ignoring and insiders are buying. Even better, both appear to have enough of a margin of safety in the balance sheet that we are not risking a permanent long-term loss of principal. In the normal course of business, both stocks […]
Rapid demand growth thanks to the energy transition away from fossil fuels could lead to a shortage of several metals over the next decade unless there’s more investment in the segment. This is according to the Energy Transitions Commission (ETC), a global group of power and industrial companies, consumers, financial institutions, and scientists. Large supply […]
Most of the time, preferred stock shares are pretty boring. However, the rapid increase in interest rates has turned a subset of the preferred universe into potentially outstanding investment opportunities. You could dig out the right preferred stocks yourself or invest in an ETF that does precisely that. Let me show you how to do […]
Covered calls can be a strategic path towards increasing cash flow on a position while waiting for it to rally. For instance, last week a trader purchased 15,000 covered calls in iShares MSCI Emerging Markets ETF (EEM). EEM is a popular asset class ETF used to gain exposure to emerging markets. This trade is using […]
