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Negative Interest Rates Could Be Coming to the USA

By: TradeSmith Research Team

Oct 18, 2019 | Investing Strategies

Ever since the financial crisis of 2008, monetary policy has had an “Alice in Wonderland” feel. The whole thing has been a crazy experiment — and the experiment is still ongoing. The next bizarre chapter could be negative U.S. rates. Negative interest rates have already shown up in bond markets all around the world. If negative rates come to America…

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What Investors and Farmers Have in Common: The Enduring Power of Cycles

By: TradeSmith Research Team

Oct 16, 2019 | Investing Strategies

What do investors and farmers have in common? Their work is dominated by cycles. A farmer who does not understand cycles — the ebb and flow of the seasons, a time to plant, a time to harvest, and a time to let the ground lay fallow — will not remain a farmer for long. Investors, too, have much to gain…

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The Unicorn Bubble Has Popped

By: TradeSmith Research Team

Oct 11, 2019 | Investing Strategies

Over the past year, multiple Silicon Valley “unicorns” — companies privately valued in the billions, or even tens of billions — came to market via initial public offerings (IPOs). Investors seemed enthusiastic, scooping up the shares of these loss-making companies no matter how much cash they burned. WeWork appeared to be the worst of them all; we wrote about the…

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The Zero-Commission Brokerage War Could Make or Break Your Retirement

By: TradeSmith Research Team

Oct 09, 2019 | Investing Strategies

The zero-commission brokerage war is a wild development for investors. There is real danger here, but real opportunity, too — for those who know what to do. To put it another way, some investors will benefit greatly from the zero-commission brokerage war. Others will look back and wish it never happened. This “May Day Part II” event (you’ll read what…

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Fossil Fuels Lost. Clean Energy Won.

By: TradeSmith Research Team

Oct 04, 2019 | Investing Strategies

Clean energy stocks are having a fantastic year in 2019. The best-performing non-leveraged ETF in the United States is the Invesco Solar ETF (symbol TAN), up 54% on the year as of this writing. Other renewable plays, like the Invesco Clean Energy ETF (PBW), and the iShares Global Clean Energy ETF (ICLN), have also done quite well. But this is…

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What Investors Can Learn From Rogue Traders

By: TradeSmith Research Team

Oct 02, 2019 | Investing Strategies

There was another rogue trader in the news recently. This creates an opportunity to dissect the rogue trader’s mindset, and to extract a valuable lesson for investors. A rogue trader is someone who makes a bad trade, covers it up with deception, and winds up costing their employer a huge amount of money when they get caught. The typical rogue…

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Did California Just Crush the Gig Economy?

By: TradeSmith Research Team

Sep 27, 2019 | Investing Strategies

Did California just crush the “gig economy?” It’s a real possibility, and you should stay away from Uber (NYSE: UBER) and Lyft (Nasdaq: LYFT). It was already an easy call to avoid UBER and LYFT. Both names had an initial public offering (IPO) earlier this year. As of this writing, they are down about 30% and 25% respectively. If California’s…

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“Repo Madness,” Lending Market Turmoil, and the Federal Reserve

By: TradeSmith Research Team

Sep 25, 2019 | Investing Strategies

In recent weeks, short-term U.S. lending markets have been in turmoil, requiring emergency shore-up actions from the Federal Reserve. The nickname for it on Wall Street is “repo madness,” because the problems involve the “repo market” and the overnight repurchasing rate. On Sept. 17, a crucial lending rate briefly spiked above 10%, more than four times its expected level, due…

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The Market’s Non-Reaction to the Saudi Oil Facility Attacks

By: TradeSmith Research Team

Sep 20, 2019 | Investing Strategies

How crazy were the drone and missile attacks on Saudi Arabia last weekend? So crazy that the Saudis are becoming oil importers. Seriously. A Sept. 19 Wall Street Journal headline reads: “To Keep Exports Flowing, Saudi Arabia Looks to Import Oil.” Of all the wild scenarios a market strategist could dream up, if someone had said “the Saudis will be…

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Is Passive Investing a Mortal Threat to Markets?

By: TradeSmith Research Team

Sep 18, 2019 | Investing Strategies

Is passive investing the greatest thing ever for investors? Or is the passive investing “bubble,” as some would dub it, a looming disaster that threatens to bring down markets and trigger a new financial crisis? This is a real debate, and it’s been going strong for years. Those in favor of passive investing make a strong case. We explained the…

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