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Tag Archives: interest rates

April 2008 Issue

The mercury is climbing, blossoms are bursting out — so does Wall Street finally get to celebrate a springtime of its own? For eight long months now, a ferocious credit crunch, unprecedented since the Great Depression, has trapped investors in a deep freeze. Not only stocks and real estate, but even some of the (reputedly) safest bonds and money market instruments fell victim to the Arctic blast.

Happily, I’m detecting hints, here and there, of a thaw. It’s taking a lot longer than I had hoped, but we will see the end of this new Ice Age. As a balmier climate sets in, we can look forward to healthy markets again — and a return to the steady, consistent profits we enjoyed from 2003 to around mid-2007.

October 2007 Issue

Five years later, it’s still a bull! Yes, Virginia, it was five long years ago, back in those dark, scandal-ridden days of October 2002, that the stock market launched its first major ascent of the new millennium. And today, even after several blue chip indexes have doubled off that historic low, the
beat goes on — thanks to a big (and very timely) Federal Reserve rate cut.

Incredibly, many investors continue to fret that the end is nigh. But you don’t have to be among them. My work indicates that the market blast-off on September 18 signals a new and exciting chapter in this aging bull’s long life. We’re now cruising on what may turn out to be the last, best moneymaking
streak of the next two or three years.

In this month’s visit, I’ll point you to a handful of stocks uniquely
positioned to lead the advance. (Hint: They’ve got nothing to do with
subprime mortgages, or any mortgages at all, for that matter!) My favorite, a technology titan, looks so cheap that I’m projecting a 25%�35% gain in the next 12 months alone.

July 2007 Issue and Supplement

Will rising interest rates upset Wall Street’s applecart? In recent weeks, a sharp back-up in bond yields (which lifts borrowing costs for businesses and consumers alike) has given stock traders a case of the jitters. Is this the straw that will crack the bull’s spine? Or is it just another passing tremor?

I won’t keep you guessing. I don’t think this latest interest rate scare will derail the stock market’s advance for long. However, it’s also clear to me that the rate background is slowly shifting, worldwide, with major implications for stocks, bonds and a whole bunch of other investments.

In this month’s visit, I’ll show you what those implications are. Hint: It’s more crucial than ever to demand bargain prices—not just “fair” prices—for the stocks and mutual funds you buy. A value-plus-safety strategy like ours is tailor made for the new financial world we’re heading into.

December 1, 2006

Slow those horses! Stock prices eased back this week as investors picked up signs that the economy is definitely slowing. However, while we expect the market’s angle of ascent to flatten out, we still look for higher share prices into the January-February time frame.

December 2006 Issue

Gridlock! Whether you’re delighted or dismayed by the results of the midterm election, I’ve got encouraging news for you—a divided government in Washington isn’t such a bad thing for your investments. This month, I’ll show you how you can take advantage of the new paths to profit that the election has opened up. In fact, I expect gains of 40%-60% in the next two years for my top picks. December also marks the fourth anniversary of our Incredible Dividend Machine. This nifty portfolio has beaten the overall stock market by such a huge margin it’s almost amusing. In our latest lineup, I’m swapping two of the members of the Machine with new names that I’m confident will keep the streak going. Finally, the holiday season is the perfect time to do some housecleaning, and if you’re sitting on a mutual fund that has outlived its usefulness, raise a glass of holiday cheer and toast it good-bye. Then replace it with one of my four best funds for your specific needs.

Making Sense of Bonds and Gold

It’s a contradiction—or is it? Two important groups of players in the financial markets seem to be flashing polar-opposite signals. Today, Treasury bond yields plunged to a 10-month low. (Wonderful for our zero coupons!) At the same time, gold prices surged $12 an ounce, to their highest level since early August.

November 2006 Issue & Supplement

Wall Street’s amazing bull has rejuvenated itself for another romp as stocks are putting on a fresh display of power. This month, I’ll show you how you can keep the profits flowing at a safe, healthy double-digit pace by identifying the rich veins of value still waiting to be mined. Ironically, I’m finding some of the best bargains in an area overcrowded with speculators until just a few months ago—oil and gas, including a pair of names that could leap 50%�80% in the next few years. The oil patch is also home to my favorite type of vehicle income right now—master limited partnerships. I’ll point you to my top buy among the bunch and answer some of your nagging questions about MLPs. Also look for a primer on the most attractive stocks and markets overseas. And don’t miss my Tax Savers’ Workshop in this month’s supplement.

November 2006 Issue & Supplement

Wall Street’s amazing bull has rejuvenated itself for another romp as stocks are putting on a fresh display of power. This month, I’ll show you how you can keep the profits flowing at a safe, healthy double-digit pace by identifying the rich veins of value still waiting to be mined. Ironically, I’m finding some of the best bargains in an area overcrowded with speculators until just a few months ago—oil and gas, including a pair of names that could leap 50%�80% in the next few years. The oil patch is also home to my favorite type of vehicle income right now—master limited partnerships. I’ll point you to my top buy among the bunch and answer some of your nagging questions about MLPs. Also look for a primer on the most attractive stocks and markets overseas. And don’t miss my Tax Savers’ Workshop in this month’s supplement.

The Earnings Circus

Earnings season is in full swing again on Wall Street. Some advisors may ooh and ahh over corporate quarterly reports, but I see the earnings circus as a great opportunity for long-term investors to act while other folks overreact.

Scratching for Bargains

After a huge stock market run-up such as we’ve seen over the past three months, it’s tough to find bargains. Most stocks are trading well above near-term support on their price charts. But a few good values are popping up here and there.