Are You Prepared For The VIX Spike?

Are you afraid that the unprecedented seven-year bull market advance will soon come to an end?  Well, you are not alone.  With quantitative easing measures rapidly winding down, greater numbers of market professionals are leaning toward a bearish bias.  Add in the specter of rising interest rates and it becomes a question of how long can the bull market last with the heavily bearish macroeconomic picture. The smart money is setting up to hedge their portfolios and actually profit from the potential sharp decline in the stock market. Fortunately, there are two new ETF’s that will enable t...
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Using Calendar Spreads To Profit In Any Market Condition

Many stock investors are fearful when it comes to trading options.  Horror stories abound on financial message boards about traders who were wiped out or took huge losses when venturing into the options arena.  While these stories are likely true, it’s critical to note that the losses are due to the investor’s inexperience or disregard for the risky nature of options.  Like in all types of investing, risk is part of the game in options.  Knowledge is what prevents fear and turns options into profit making tools. The good news is that by understanding the variety of option strategies, op...
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These BioTech Stocks Are Ripe For A Takeout

There are very few stock market sectors that provide the consistent volatility and profit potential of the biotech industry.  In fact, outside of derivatives, it can be safely said that biotech stocks are the number one fastest way to earn quick profits in the entire equity market. The above graph from Forbes Magazine illustrates the extreme potential of the sector.  The chart shows the distribution of returns for every biotech IPO since 2013.  As you can see, a substantial percentage gained greater than 100% over the last two years.  However, at the same time, a disturbing number plung...
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What You Need To Know About McDonald’s Turnaround

The name McDonald’s means one thing to consumers.  That thing is fast food hamburgers.  This iconic brand is among the most well-known American brands to ever be created.  In fact, the name McDonalds conjures up the true American dream in many parts of the world.  There is much truth to this belief as this quintessential burger chain is truly representative of innovation, success, entrepreneurship, and rags to riches story that is truly unsurpassed in the annals of capitalism. However, a wrench has been thrown into this long-term success story.  Heavy competition, lack of recent innovat...
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Investors Unfriend Social Stocks, Should You?

There’s an old saying that goes, “The faster something goes up, the faster it goes down.”   This saying can easily be applied to the rise and possible fall of social media stocks. At no time since the dot-com boom of the late 1990’s has the internet created such excitement and investor attention.  Back in the late 1990’s, if a company had a dot com name, investors would throw money at it.  Whether or not the company made money was an afterthought.  As long as it had a cute name, a good story about how it was “disruptive” to an existing industry, and an evangelical CEO, it could raise billio...
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These 5 Profit Machines Churn Out Cash

No one really knows when the final day of this roaring bull market will be.  It could be tomorrow, or it may not happen for years. The good news is that it’s not important to think about when this fateful day will occur, but rather make certain that your investment portfolio is designed to best weather any future financial storm. Before you jump to conclusions, I am not talking about hedging or any type of expensive portfolio insurance like option strategies.  While these methods have their place, this article is about building a core portfolio position of stocks that will weather and ev...
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Warren Buffett’s 5 Favorite Books

Investment education is a lifelong endeavor.  No matter how much you know and understand about the financial markets, there is always more to learn.  Not even the world famous, masters of investing know everything. Successful investing demands constant study and self-education.  The problem is that there is so much information and data right now, how do investors weed through the garbage to discover true wisdom? The best way to accomplish this critical filtering is to make certain to study the same books that the world’s most successful investors read and recommend. Makes perfect sens...
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The Best Stock For The New Wave Of Energy

Billions are being made by savvy investors who have jumped on the latest trend in the alternative energy space, solar energy.  Despite existing for many years, solar power never quite caught on in a big way until recently. You see, the issue has always been the cost to execute at a meaningful scale.    Solar energy projects demanded government subsidies to exist since traditional fossil fuels were just cheaper. Recently there has been a revolution in the costs to produce electricity from solar energy.  Prices have plunged to often being less than the cost of fossil fuels.  This revol...
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How To Profit From The Soaring Greenback And The New Stock Market Bull

Following big trends is the primary way long term traders make money in the stock market.   The largest hedge funds and money managers on earth utilize trend following rules and tactics in their trading.  In other words, trends are how the majority of profits are created on Wall Street. While following trends may sound easy at first glance, it is often difficult to identify strong trends before they end.  The trouble identification is due to hindsight bias and other psychological issues affecting most people.  Skilled traders and market analysts have the ability to identify and act on trend...
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This Dow Jones Giant Is Exploding: Here’s What You Need To Know

Making money in the stock market is easy.  All you need to do is follow a few simple rules when it comes to choosing stocks to buy.  The most important of these rules is to locate companies that are undergoing transformational yet shareholder value enhancing changes.  The bigger and more exciting these transformations are, the better for the share price.  Wall Street loves nothing more than a big exciting story attached to a major company name.  The excitement attracts profit hungry investors who are looking to ride the changes to profits. Share buy backs, dividend enhancements, institution...
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