We’re in a rapid economic tightening environment right now with the Federal Reserve pushing up rates. However, we haven’t seen company earnings hit that hard yet. But, I believe once we see worsening economic data, the Fed will loosen economic policy. When they do… I found a surprising ‘tech’ stock that could shoot up 100% […]
Will ARKK Rebound In 2023?
2022 was a very tough year for the ARK Innovation ETF (ARKK). Cathie Wood’s flagship fund saw a nearly 70% share price drop for the year. A 40,000 lot of short calls that traded last week in ARK options suggests there could be some (but not a lot) of upside for the embattled ETF early […]
Trade of the Week: Corporate Bonds
The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is a popular asset allocation ETF for those wanting exposure to corporate bonds. Many asset allocators have at least a portion of their portfolio in corporate bonds (non high-yield variety), so LQD sees a lot of options action. Last week, a strategist bought over 40,000 […]
The 2023 Investing Lesson from the Southwest Airlines Fiasco
I am sure you are aware that last week, Southwest Airlines Co. (LUV) canceled more than two-thirds of its scheduled flights, with the cancellations continuing for days after the winter storm that initially triggered flight delays and cancellations. You might know someone whose holiday travels were completely disrupted by the shutdown of most of Southwest’s […]
Your Plan for Portfolio Growth in 2023
2022 was not a comfortable year for investors. Tech stock values imploded. The broad market coverage S&P 500 dropped by 20% for the year. The hot investment themes of 2021 lost investors trillions of net worth in 2022. If you feel like nothing works in this uncomfortable market, consider my Dividend Hunter strategy, which generates […]
The Only Four Strategies That Worked in 2022 – and Will Work in 2023
New Year is in just a couple days. We spent Christmas in my house noisily with one of my two granddaughters in attendance, with a prime rib roasting away. As is tradition, my wife had the TV tuned to a station that plays seasonal tones while the screen is filled with a roaring fireplace. Now […]
Why Investing in 2023 Will Be Completely Different
Howard Marks, the billionaire founder and chairman of Oaktree Capital, sends out his “Memos” several times a year. His December issue, titled Sea Change, offers food for thought about successful investment strategies to use in the new year. Let’s take a look, and see how we can earn some nice cash returns next year with […]
Trade of the Week: ARKK
While it’s been a rough year for the Ark Innovation ETF (ARKK), a large options trade may suggest a brighter 2023. A strategist purchased what appears to be a 30,000-lot of covered calls on ARK that expire in February. The covered calls allow for over 10% upside potential in share appreciation before capping out, while […]
Act Now to Get Special Dividends Deposited in Your Account
A special dividend announcement in my inbox reminded me it’s that time of year: special dividends season. For certain types of stocks and funds, special dividends point to a high probability of future dividend increases. That’s a big help in a year when falling share prices made us wonder about the stability of our investment […]
How to Weather These Choppy Markets
The stock market has proven to be very resilient in recent months. Even as Federal Reserve officials talk about the need for interest rates to be higher than expected for longer than anticipated, the markets have managed to hang on to the idea that if the pace of rate hikes slows, the eventual destination does […]