Like many new investors just starting out, I used to buy stocks on a whim. There was no careful process or due diligence. Sometimes I’d hear a tip and act on it before I even knew what the company did. Rarely did it work out. Most often, it very much did not and I’d wind up holding a dud. Sometimes I’d be right… but be too quick to sell and miss out on a much bigger future return, like I showed you recently
Read nowLast week, scores of mainstream journalists were left dumbstruck by a Guardian-Harris survey of Americans about the economy. 56% of Americans currently believe the U.S. economy is in recession. 49% of them believe the S&P 500 is down for the year. And the same number think unemployment is at a 50-year high. You’re reading a financial newsletter, so you probably know the opposite is true on all three counts. But if your first instinct is to simply conclude that half
Read nowLongtime TradeSmith readers know I’m a huge fan of options. In fact, going into 2023 I said that if I had just $5,000 to invest in the markets for the year, I wouldn’t have invested it at all. Rather, I’d have used options-trading strategies to generate consistent gains of around 1% on that money each week. As I mentioned, those kinds of returns don’t sound particularly exciting… until you consider they can add up to compounded gains of about 67% a year. Yes… by
Read nowPCE numbers make room for the Fed to make its first fabled cut… Inflation’s not as high as it seems… And rates are even higher… The S&P 500 has gone nowhere in 3 months… A quick earnings trade on a retailer turnaround… How Elon Musk could take revenge on Joe Biden this election season… The personal consumption expenditures (PCE) report last Friday hid some key details beneath the headline numbers, which are sure to nudge the Fed toward making a
Read nowIf you’ve been around the markets for any amount of time, I’m sure you’ve run into one glaring fact… Your favorite stocks often sport high share prices. A case in point is semiconductor stalwart NVIDIA Corp. (NVDA), which is trading at about $1,130 as of Monday afternoon… after ripping more than 3,265% in the last five years. Another example is a company I’ve owned for years, Chipotle Mexican Grill (CMG). That’s reached an uber-high price of $3,050 as of Monday
Read nowThe rising tide is sinking these small-caps… How TradeSmith’s software makes stock-picking a breeze… Two ways TradeSmith users are profiting right now… The one stock catching up to bitcoin’s 7-year return… The NYSE glitch and the danger of stops… Apple’s breakout AI moment may soon arrive… It’s rarely been so simultaneously profitable and dangerous to be a small-cap stock picker. Right now, the rising market tide is lifting some boats far more than others. Yet even as the broad Russell 2000 ETF (IWM) is
Read nowAs summer heats up, so do our oceans. Warmer waters mean more stormy weather. Just recently, the NOAA (National Oceanic and Atmospheric Administration) rang the alarm bells as their models forecast a very active hurricane season for 2024. Their prediction is for 17 to 25 named storms, with anywhere from 8 to 13 of them becoming actual hurricanes…. yuck! Anyone living in the Southeastern part of the U.S. knows how uncomfortable wind and rain can be. BUT – these seasonal
Read nowMarket history says we’re in the worst period for returns all year. The old saying “Sell in May and go away” perpetuates this. The story goes that British traders back in the 1800s would cash in every May, take the summer off, and “not come back till St. Leger’s Day,” a horse race in mid-September. It has some merit. The six months between May and October are a historically weak period. Our own dataset proves it: Since 1950, stocks have
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