Are Commodities the Best Trade of 2018?

Inflation is a concern, for now, but in recent years it hasn’t been widely evident in the economic data. After its most recent meeting, the Federal Open Market Committee (the FOMC which is the operations arm of the Federal Reserve) confirmed that in a statement. The FOMC noted, “Inflation on a 12 month basis is expected to remain somewhat below 2 percent in the near term but to stabilize around the Committee's 2 percent objective over the medium term.” This has been their outlook for months, but more recent data brings that conclusion into question. The consumer price index (CPI), when f...
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Commodity Stocks Priced Under $2

Commodities, as an asset class have delivered gains for two years in a row. This could be the beginning of a new up trend in commodities after an extended bear market. One widely followed commodity index, the S&P Goldman Sachs Commodity Index ended 2017 with a gain of more than 11%, building on 2016’s gain of 27.18%. Prior to that, the index recorded three consecutive years of losses and over the past ten years, the index shows an average annual return of a loss of 3.2%. Analysts point to several factors that could be bullish for the sector. The global economy is growing and that cre...
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These Stock Markets Could Be 2018’s Biggest Winners

In 2017, investors were largely focused on FANG stocks. Facebook, Apple, Amazon, Netflix and Alphabet (parent of Google) were the subject of countless stories and as a group delivered excellent performance. But, that was last year. As investors know, they need to always be looking for next year’s winners. This year, that search may take them away from the shores of the United States. They may find more luck looking at Europe where many Wall Street analysts are looking for better returns. Russell Investments is typical of the analysts highlighting European stocks in their year ahead forec...
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Dogs of the Dow for 2018

There are a variety of investment strategies that are consistently beating the market in the long run. Many of these strategies are proprietary and their owners guard the secrets. They might be the work of private wealth managers or hedge funds. But, there is at least one strategy that has beaten the market in the long run and its rules are freely available to any investor. This strategy is also simple to implement, easily maintained and within the reach of almost investor. It’s the Dogs of the Dow strategy, a strategy that has been know about for at least 60 years and one that has beate...
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Stocks Priced Under $2 Selling For Less Than their Asset Value

http://www.tradingtips.com/Value investing has an appealing logic to many investors. The idea is simple. Value investing generally involves searching for stock trading tips at discounts to their fair value. These stocks can be bought and held until they trade at or above their fair value. These ideas were first put forth by Benjamin Graham, a business school professor who counted Warren Buffett among his students. Graham is widely considered to be the father of value investing and he wrote widely on the topic. His work includes descriptions of strategies that he found to be successful. G...
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The Most Important Measures of Value

As investors, we often talk about value. But, we don’t always agree on value. The disagreement could be as to whether a particular stock offers value or even exactly how we should measure value. In this article, we explore some of the common approaches to measuring value. The most popular measure of value could be the price to earnings (P/E) ratio. However, now all companies have earnings. In the case of a company without earnings, the price to sales (P/S) ratio or the price to book (P/B) ratio could be more useful. P/E Ratios The most popular measure of value could be the P/E ratio. This...
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Five Stocks Trading Under $5 That Could Win Under Tax Reform

Finally. It’s done. After months of speculation, tax reform has been completed. Now, analysts can get to work determining exactly how the new rules will affect various companies. It is almost certain there will be winners and losers. In all likelihood, the winners will outnumber the losers. That is generally bullish for the stock market trading. If there are more winners than losers, that means we should expect the overall level of earnings of publicly traded companies to rise. Rising earnings should lead to higher share prices. But, the details will require more analysis. In general ter...
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Wrapping Up Our Monthly Seasonal Strategy

Over the past year, we have shared trades based on a seasonal strategy. At the beginning of every month, we provided real time buy recommendations and we also tracked the results of the previous month’s recommendations. Now, after a year, we are able to show you the results for the past twelve months. This system was based on one of the simplest seasonal trades possible. Few traders follow seasonal strategies although these strategies are often profitable. They are also relatively low risk because they limit market exposure to short periods of time. To apply this strategy, every month...
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What the Fed’s Latest Interest Rate Hike Means for the Stock Market

“Fed watching” is among the most important tasks of traders. The Federal Reserve and central banks around the world have often had large impacts on stock market trading. This is because the central banks set interest rate policy. Stock markets are often driven by the outlook for interest rates. This is because interest rates are a baseline benchmark in the stock market and they provide a signal related to economic growth. Policy changes are interpreted to indicate changes in central banker’s outlook about the economy. For example, if the Fed is raising interest rates, this is a signal to...
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Six Cheap Stocks That Could Soar This Earnings Season

Earnings season is generally a time of increased volatility in the stock market. Traders know this from experience and it fits into standard financial theories. The academic community has demonstrated that stock markets in developed nations are informationally efficient. This means the current price reflects all of the information about a company. This is logical and there are alternative explanations but this one seems to fit the data very well. Notice that the theory merely says stock prices reflect what is known about the stock. It does not state that this is absolutely the correct pr...
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