After recommending shares of Zillow Group (Z), as well as the November 2017 45 calls, the stock closed flat on the day, Wednesday. It’s now consolidating at $45.46 a share. What we’d like to see is a breakout above this level, with a potential test of $49. As for new trading ideas, take a…
DetailsSince we launched The Cheap Investor, we’ve watched the Dow Jones Industrials soar from just 750 in August 1981 to a recent high of 21,988. The S&P 500 roared from 131 to 2478. The NASDAQ rocketed from a low of 210 to 6,475, far surpassing a 2000 high of 4,553. Over the years, there have…
DetailsMost of us are well aware of the VIX. It’s the ticker symbol for the Chicago Board Options Exchange (CBOE), which shows the stock market’s expectations for volatility in a 30-day period. It’s constructed by simply using the implied volatility of S&P 500 index options. It’s not based on actual volatility. Instead, it’s based on…
DetailsSmall cap stocks are at new all-time highs and further upside is likely. Even Credit Suisse analysts agree, recommending that investors favor small-cap stocks over large caps for the next six to 12 months based on economic indicators and valuations, as reported by Barron’s. “We’re not pounding the table,” they’re quoted as saying. “We’re more…
DetailsIt doesn’t matter what any one thinks of Obamacare, healthcare stocks have exploded, as a result. In fact, the Health Care HealthcCare SPDR ETF is up 200% since the Affordable Care Act (ACA) was signed into law in March 2010. For comparison, the S&P 500 is up 122% over that time. Even in recent months,…
DetailsThe bull market is alive and well. Over the last eight years, we’ve watched the Dow Jones explode 15,074 points. The NASDAQ tacked on 5,001 points. The S&P 500 is up nearly 1,700 points. The Russell 2000 is up 1,043 points. And to be honest, the bull market is showing no signs of slowing. In…
DetailsWhen sectors fall, investors have a tendency to panic. They sell just about everything, sending even the best stocks to unreasonable lows. Sure, most times stocks plunge because there are fundamental issues. But in some cases, fundamentally sound stocks are low because investors panicked for no good reason. That’s where opportunity can be found. And…
DetailsAbout 42 years ago, the global community created what was then known as the G-6. France, Germany, Italy, Japan, the United States, the United Kingdom would meet regularly to discuss international economic and monetary issues, international security, and energy policies, as well as preventing economic catastrophes from crippling the global community. Canada would join the…
DetailsSometimes smaller is better. A common misconception about smaller cap companies is that they’re much more volatile, and therefore are more risky and not worth the gamble. But the reality is that many of them generate returns that are as good as, if not better than blue chip stocks. Look at their performance to date.…
DetailsThe first half of 2017 was the strongest U.S. markets that we have seen in years. The Dow Jones Industrials and S&P 500 each gained 8% since the year began. The Russell 2000 tacked on 5%. But it was the tech-heavy NASDAQ that gained the most, adding 14% of upside since January 3, 2017. It…
DetailsSome of the smallest companies in the market are making a big return. In fact, at their current pace, small cap stocks could have another incredible year. At the moment, they’re outperforming the market. With the S&P 500 up just 0.46% and the NASDAQ in negative territory since the start of June, the Russell 2000…
DetailsAt one time, Amazon.com was a $14 stock. It now trades at $956. Facebook was once a $20 stock before running to $152. Netflix once traded at $9 before exploding to $166 a share. Stocks with that kind of potential don’t fall out of the sky every day, but with good research you can find…
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