The Best Trades for June, Following A Strategy That Is Up Almost 14% This Year

The S&P 500 has gained almost 9% since the end of last year, defying the prediction of many experts for a bear market. This is a strong market and the bulls have been well rewarded. As difficult as it is to beat a bull market, we have been doing that this year with a simple strategy. And we have been publishing our trade recommendations in advance each month. At the beginning of the year, we began sharing real time buy recommendations with you for a successful trading strategy. This month, we continue with that process. The strategy is among the simplest ...
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An Options Tool for Income, Gains and Limited Risk

Investment goals generally include income or capital gains. Many investors believe income requires sacrificing some potential for gains. With popular investment alternatives, this is largely true. For example, bonds are usually thought of as income investors. If a bond is held until it matures, the potential gains are limited. Most changes in price are due to changes in interest rates and these are often ignored by long term investors who simply hold the bond for income. On the other hand, stocks are usually bought and sold for capital gains. Dividends, some traders say, are a pleasant accident of trading. What they ...
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Cheap Stocks Insiders Love

Most of us like to believe life is fair. But, in reality, very few market transactions are fair. Economists believe almost all transactions involve asymmetric information. In most transactions, one party knows more than the other party. For example, when consumers are buying a used car it seems fair to assume the seller knows more about the car than the potential buyer. This problem is so well known many states and the federal government have taken steps to level the playing field. Their efforts to create fairness are called “lemon laws” and usually require sellers to compensate buyers of used cars ...
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This Picture Is Worth a Thousand Words for Options Traders

Options are often misunderstood. Some traders view them almost like a lottery ticket. This view is not altogether wrong. There are times when an option trading for just a few cents climbs by more than 10,000%. This is why cheap options are often used in insider trading schemes. And, because regulators know that trick, that strategy leads to many prosecutions for insider trading. Put options can also lead to large payoffs during market crashes. In that case, cheap options gain value as markets crash. This is also a rare event and traders have suffered large losses using strategies that benefit from ...
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Cash Rich Stocks Trading Under $10

It is often said that cash is king. This phrase has many meanings to different people. For investors, it can mean maintain a large cash balance so they have buying power ready when they find bargains in the stock market trading. Or, investors may apply the phrase as a screening tool to identify companies with large cash balances that allow the companies to take advantage of opportunities as they become available. In this article, we look at why companies with large cash balances can make good investments and we identify some companies that could be good Investment Opportunities ...
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How to Keep Your Stocks and Protect Your Profits

This bull market began in March 2009, more than eight years ago. At the time, investors feared the worst. But stocks rallied, proving once again that bull markets can climb a wall of worry. If all it takes for bull markets is a wall of worry, the current market environment would be healthy. But, a bull market also generally requires an economy that’s growing, an accommodative Federal Reserve policy and stable fiscal policy from Washington. The worries are that those three factors are not firmly in place and investors are right to be worried about a market environment as uncertainty ...
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Five Global Income Stocks Under $10

The news is not encouraging. This is true no matter where in the world we look. In Asia, North Korea appears to be taking steps to develop long range missiles capable of delivering nuclear weapons. All countries in the region are at risk. Yet, stocks are rising. In Taiwan, a country most likely within reach of North Korea’s missile program, the Dow Jones Taiwan Stock Index is trading near new all-time highs. In South Africa, riots are becoming more common as frustration with government grows. Recently, thousands of demonstrators gathered in one of the country’s three capital cities, Pretoria. One of ...
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How to Know When the Bull Market Ends

It’s coming. We all know the end of the bull market will arrive one day. The obvious problem is that we don’t know when that day will come. The less obvious, but equally significant problem is that becoming bearish too soon can be costly. Stocks became overvalued by some measures by 1996. In December of that year, then-Chairman of the Federal Reserve Alan Greenspan famously asked, “But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?” His concern that Read More
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