Perk Up Your Profits With a Contrarian Coffee Trade
Feb 23, 2018 | Investing Strategies
Brazil is the largest coffee producer in the world. No other country comes close, and Brazil has held this position for 150 years. There are roughly 10,000 square miles worth of coffee plantations in Brazil’s southeastern regions. A rise in global coffee production means Brazil’s share of the world coffee market has declined from peak levels in the 1950’s. Even…
A Bullish Buy Signal on Warren Buffett’s New Pick
Feb 20, 2018 | Investing Strategies
Warren Buffett is one of the top billionaire investors we follow. We track Buffett’s activity via his famous investment vehicle, Berkshire Hathaway. (As a side note to Berkshire Hathaway fans: Buffett will release Berkshire’s annual shareholder letter on Saturday, February 24th.) At the end of the fourth quarter in 2017, which you can see below, the asset allocation breakdown for…
The Japanese Yen is a “Tell” For What’s Happening in Global Markets
Feb 16, 2018 | Investing Strategies
Global stock market indices, including the major US indices, have had a violent shakeout in recent weeks. Will the global bull market continue? Or does the recent surge of volatility suggest the run is over? It’s obviously a critical question for all investors. The impressive gains the markets made this week have market participants and the media breathing a sigh…
This “Simple” Strategy Crushed the Market By a Multiple of 3 to 1
Feb 13, 2018 | Investing Strategies
Our TradeStops SPDR strategy is holding up well despite the recent market volatility. In fact, this simple strategy (which we introduced in August 2016) outperforms the market by more than 3 to 1. The strategy is based on 9 Sector SPDR ETFs as shown below. (It does not include XLRE, the SPDR Real Estate ETF, which was more recently introduced…
Not Your Garden Variety Market Correction
Feb 09, 2018 | Investing Strategies
The stock market has at least three big problems right now. Those problems are: US dollar headwinds Rising interest rates The threat of more ETF-related blow-ups The third problem is caused by the first two. I’ll explain why shortly. But first, there is an open question of “what to do” in the stock market right now. The optimistic bulls are…
What Our Signals Are Saying After the Big Drop
Feb 06, 2018 | Investing Strategies
The Dow Jones Industrial Average saw its largest single-day point drop in history on Monday. At one point during the day, the Dow was down nearly 1,600 points before recovering somewhat (though still falling 1,175 points). And that was after a big fall on Friday. The VIX, a popular measure of volatility, saw an incredible spike Monday as stocks fell….
This Seasonal Trade Made Money Eleven Years in a Row
Feb 02, 2018 | Investing Strategies
Biotech is red hot right now. XBI, the SPDR S&P Biotech ETF, put in a new all-time high just a few days ago. An upcoming seasonal trade in biotech suggests there are even more new highs to come. This seasonal trade has a perfect 11-0 record over the past 11 years. Last year’s profit on this seasonal trade was 27.34%….
What Wall Street and Dead Cats Have in Common
Jan 30, 2018 | Investing Strategies
Last week we debunked the popular “best days” argument from Wall Street. To quickly recap, Wall Street wants individual investors to buy and hold… so they can collect as many fees as possible… and they convince investors to buy and hold by saying that, if they aren’t always holding, they’ll miss the “best days” of the market. What Wall Street…
Mining for Gold Profits
Jan 26, 2018 | Investing Strategies
Last week, we told you that the stealth rally in gold was gathering steam. Just yesterday, gold made a new 52-week high and it’s only a few dollars away from its most recent high in July 2016. The $1,400 level is about $40 away. Gold hasn’t been above $1,400 since May 2013. This rally has legs. A move past $1,400…
Buy and Hold: Wall Street’s Misleading Advice
Jan 23, 2018 | Investing Strategies
Buy and Hold. I want to debunk a common piece of Wall Street advice that is dangerous to the health of your portfolio. It has to do with trying to capture the “best days” of the market. The buy and hold mantra of Wall Street tells you that it’s in your best interest to be in the market all the…