Tuesday , 7 April 2020


Asset Allocation

Which is a Better Long-term Value – Current House Prices or Current Price of Gold?

When real estate is "cheap" and gold is "expensive", relative to their long-term averages and each other, real estate is likely to powerfully outperform gold as an investment and inflation hedge over the long term, all else being equal. [That being said, however,] what exactly is "cheap" and what is "expensive"? Answering that question is where the Gold / Housing ratio comes into play. [Let's take a look at it and determine whether gold or real estate is a buy at the current time.] Words: 3516

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What Works on Wall Street? James O'Shaughnessy Tells All!

History has shown that investors who stick to disciplined, fundamental-focused strategies give themselves a good chance of beating the market over the long haul and one of the investment gurus who has compiled the most data on that topic is James O’Shaughnessy, whose book What Works on Wall Street became something of a bible for investment strategies when it was released 15 years ago. Now, O’Shaughnessy has released an updated version of his book, with a plethora of new data on various investment strategies. Using data that stretches back to before the Great Depression in some cases, O’Shaughnessy back-tests numerous strategies, and comes to some very intriguing conclusions. [Let me share some of them with you.] Words: 1345

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Market & Economic Cycles Suggest We’re in the Fall Season in More Ways than One – Here’s Why (2K Views)

The key to long term success in investing is understanding the difference between the "seasons" in the markets and the economy. [Let me explain the four "seasons" and why we might very well be in the "fall" season and, if that is indeed correct, why] it is time to pack away the summer allocations and break out the winter coats to hunker down for what may be a chilly 2012. Words: 1016

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Might Silver's Current Chart Similarity with 2008 Be Implying What's About to Happen to Rest of Market?

A look at the chart for SLV from September 2007 to August 2008 (11 months) and from November 2010 to October 2011 (11 months) is remarkably similar - almost identical in fact. Therefore, if silver continues to trace out a similar path to what transpired in 2008, what are the possible implications for stocks, bonds, currencies, commodities, and precious metals? Take a look at the following 19 charts for some possible outcomes. Words: 731

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Both Stocks and Bonds are Expensive! Here's Why

[We have determined that] the current cyclically adjusted real yield of 5.28% is telling us that the stock market is expensive, at least by historical standards. [In addition,] ...we have also determined that, relative to bonds, the real spread between stocks and bonds is 7.2% in terms of yields, i.e., stocks relative to bonds seem cheap. If stocks are expensive, and stocks relative to bonds seem cheap, this implies that bonds are also expensive. Everything is expensive! [Let me show you the math that confirms just that.] Words: 1590

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Market -Timing Pays BIG Dividends for Income Investors – Here's Why

Many income investors have been taught to believe that “market-timing” is anathema to their investment objectives and/or that it can’t be done successfully... I will argue that this piece of conventional wisdom is false - dangerously false. In a three-part series of essays, I will argue that market-timing needs to be incorporated as a fundamental component of income investing. I will demonstrate why market-timing is important, when it should be applied and how it should be implemented. [Read on!] Words: 1956

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Now's the Time to Buy These 5 "sleep-well-at-night" Dividend Growth Stocks – Here's Why

The past month has been marked with volatility and steep sell-off in stocks on a global scale. The unprecedented downgrade of US government debt from S&P, the high unemployment and the slowdown in the U.S. economy all caused investors to be bearish on equities. As stocks keep on falling however, companies keep on generating positive earnings surprises. Despite all the bearish news, I believe that now is the perfect time to start accumulating stocks, [particularly the following 5 "sleep-well-at-night" dividend growth stocks. Here's why.] Words: 1362

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S&P 500: Earnings are Strong + Values are Weak = Buying Opportunity

With all the negative talk that we are consistently fed, the truth is, that corporate America is strong. The fundamentals underpinning most of our great companies warrant higher valuations than they are currently receiving. With interest rates at all-time lows, and therefore, the price of bonds at all-time highs, they are less competitive to stocks than normal. Consequently, I believe that equity valuations should be higher than normal, not lower. Therefore, I feel that now is a great time for investors to be building equity portfolios whether the market is at the total bottom or not. [Let me be more specific as to why I think that is the case.] Words: 1493

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