April 29, 2013
As the bull market climbs to its peak, you should turn your attention to how you can preserve the gains we've enjoyed over this 49-month bull run.
Bottom line: Trim your stock allocation, and buy only defensive names that are genuinely undervalued. Certain stocks in the energy sector fit those criteria to a T. I'll share one with you that is deeply undervalued and yields near 5%.More »
April 22, 2013
As the bull market stampedes ahead in the U.S., it takes some creativity to find income-generating investments at a discount price.
I advise investors channel new cash into what I call 'stock substitutes'– assets that generate good income, with the prospect of some capital appreciation too.More »
December 20, 2012
Every investor slips on a banana peel now and then. (Even the great Warren Buffett had to take $1.4 billion of writedowns in 2010 and 2011 on some Texas utility bonds he bought during the mid-decade energy boom.) But some errors can easily be avoided–if you're willing to follow a few basic rules and use common sense.
Here are five bloopers that don't have to trip you up in the New Year. Take the proper steps to correct your game now, and you'll be richer for it in 2013.More »
Thu, 23 May 2013 19:35:24 ET
Is the world listening to Japan? Not very closely, it seems -- at least not yet. On the heels of today's screaming 7% plunge in Tokyo's Nikkei index, U.S. stocks initially fell hard, but then recouped most of their losses by the session's close. More »
Tue, 21 May 2013 18:53:23 ET
Another day, another new all-time closing high for the headline U.S. stock indexes. So what else is new? Ben Bernanke's strategy is clearly 'working.' The Federal Reserve chief is creating so much discomfort among holders of low-yielding cash that, more and more, they feel compelled to buy equities. More »
Thu, 16 May 2013 19:43:40 ET
Stocks took a brief respite today from their torrid advance, with the Dow closing down 42 points. It's becoming increasingly apparent, though, that we're in the midst of a fairly unusual, but not unheard-of, market phenomenon, which I call The Spike. More »
Stock prices are already sky-high, but they may well head even higher
before the year is out. What's a prudent investor to do? Wall Street's
pitchmen (and their acolytes in the media) are urging you to jump in and
buy, regardless of price. However, you and I know that overpaying can
lead to disastrous losses. There must be a better way—and there is!
In this month's visit, I'll show you the wiser path. By following three basic principles, you can not only capture a higher return on your money but also greatly reduce your anxiety over day-to-day market news. And with all the focus lately on the dizzying ascent of the Dow, many investors are overlooking the bargains still available abroad. I'll introduce you to three of my favorite opportunities—including an exchange-traded fund that I figure will outperform the blue chip U.S. stock indexes by at least a 2:1 margin over the next five years. Later, I'll bring you my regular semiannual update on one of our most popular features here at Profitable Investing, our Incredible Dividend Machine. If you're out to beat Ben Bernanke's zero interest rates on bank CDs and money market funds, you've come to the right place! First, though, let's find out why disciplined investing is more important than ever in today's levitating stock market—and how you can apply a few simple rules to fatten your profits and, simultaneously, curb your risk. More »
If Roth IRAs are tax-free, how come I can't hold master limited partnerships (MLPs) in them?
Because of a quirk in the tax law, Uncle Sam may deem part of your MLP earnings to be Unrelated Business Taxable Income. As stated in IRS publication 598 under 'Organizations Subject to the Tax,' if you hold an MLP inside a retirement account, you'll owe income tax on any UBTI credited to you above $1,000 a year. IRAs including Roth IRAs are subject to this tax. So you should only hold individual MLPs in a taxable account. And because individual MLPs issue a complex form called a K-1 at tax time instead of a 1099, you may also need a professional tax preparer to help you place all the numbers in the right slots on your return. Of course, there's a way around both of these complications. More »
Richard E. Band is the newsletter world's #1 authority on investing for low-risk growth. His flagship Total Return Portfolio has quintupled in value since its inception in 1990, while taking far less risk than the popular stock market index funds. More »
I have faithfully followed [Richard Band's] advice since 1988–and [he] helped me grow my IRA from $15,000 to $125,000 over that time. You've really taught me not to 'jump' at opportunities, but let the market come our way.
–Dick Munro, ID