Safe-Haven Assets Continue to Trend Higher – Keep Buying For Now
The stock market is having a strong year, with the S&P 500 up over 20%, well above its long-term average. But other assets have fared even better. Gold is up nearly 25%, and bitcoin is up over 40%. Investors continue to move into these trades on skepticism about the market rally lasting. It’s possible that lower interest rates could fuel inflation again, which could send these assets even higher. With that potential scenario in mind, investors may want to continue to invest ...
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Oil’s Cheap Enough to Buy Now, Even Without Geopolitical Fears
Oil prices have been perking up over the past few days, after briefly trading under $70 per barrel. Part of the move is because of the potential for escalating violence in the Middle East, particularly between Iran and Israel. However, there’s likely more upside ahead for oil. Overall production has been held lower by OPEC in recent years, and demand remains high. As with many other commodities, oil looks like a relative bargain in the markets today. That could bode well for ...
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This Unloved Sector Is Starting to Show Some Strength
While the overall stock market tends to trend higher over time, individual sectors within the market tend to take the lead. At the tail end of the 2022 bear market, tech companies kicked off the rally as AI became a bullish theme. Since then, the market has rushed higher. Other sectors have started to show some signs of life in recent months. That trend will likely continue now that interest rates are coming down. Lower interest rates make it easier for companies ...
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Invest In a Company Structurally Set to Grow
The goal of any company is to grow its products and services. However, sometimes a company is structurally prevented from growth. That could come from having a local or regional monopoly, like a railroad or utility. Sometimes, other government restrictions can hold back a stock. When those restrictions disappear, however, a company can suddenly get set to grow. And that could lead to a catch-up rally reflecting the opportunity for faster growth. For instance, regulators just cleared megabank Wells Fargo (WFC) from ...
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This Market Laggard Could Get an Activist Investor Boost
Activist investors sometimes get a bad rap. But often times, they buy a significant stake in a company, at last 5%, and push for management to make changes. For a struggling company whose share price has lagged, that can be a good thing. Even the news of an activist investor getting in can be a sign that improvements are on the way. The only question is whether the activist pushes for them, or if management steps up. Shares of struggling pharmacy store ...
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This Earnings Giant Is a Buy on Market Weakness
Over time, a company’s earnings can go a long way to determining the value of its share price. A company that can keep increasing earnings will likely see their share price trend higher. However, sometimes, the market will look at other factors besides earnings. One related issue is revenues, the raw cash that comes in the door before costs are factored in. A company with rising earnings but concerned over revenues may get punished by the markets, leading to a buying ...
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This Company Looks Ready to Soar Higher
While the stock market remains near all-time highs, many individual stocks haven’t taken off for the ride. Some companies have simply been out of favor, or haven’t been able to grow quickly over the past few years, making for a poor investment. Other companies have had to deal with significant headwinds, whether from consumer tastes, regulatory costs, or other challenges. The airline industry is no stranger to any of those issues over the past few years. The industry has been looking to ...
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One Company’s Legal Challenge Is Another Company’s Potential Benefit
Companies don’t operate in a vacuum. They have competitors, and often look to see what a competitor is doing to see if it’s an idea worth emulating (or not). Sometimes, a company gets into legal trouble. Legal cases can drag on for years. And they can cost millions of dollars. And customers may want to shop and invest elsewhere while a lawsuit plays out. That may create opportunities for a company to grow their market share while their competitor is defending ...
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