Six years into a bull market and it would appear that rational investment decision making has been thrown out the window. Speculators and traders are bidding up glamour stocks to levels that would make even dot-com era day traders blush. Meanwhile, the stocks that this same crowd was infatuated with only a few years ago teeter on the brink of collapse. Savvy investors recognize that in order to achieve long-term investment success, glamour stocks must be avoided at all costs. Instead, focus should be placed on the out-of-favor areas of the market where much of the bad news is already priced in. I advise an emphasis on the ignored and neglected.
Spin-offs are a fertile hunting ground for neglected businesses selling at discounted prices that offer unusual opportunity for long-term profit. Numerous studies have shown that shares of spin-offs have significantly outperformed the market and industry averages during their first few years as independent companies. This month, we are recommending two new spinoffs. Also this month, I am recommending you close out your short position in Treasuries–if you've followed our advice, you should be up 10.5% over a six-month period in which the broader fixed income market has stalled. More >>
Despite modest gains in the Dow and the S&P 500 this year, speculative excess remains the dominant theme in the market. Phases of speculative excess can be challenging for serious long-term investors. Firms lacking in longevity, some with questionable business models, others without revenue, and plenty that don't turn a profit have led the market. The tried and true have been left behind.
To successfully navigate the markets during this dangerous investment phase it is vital to focus on your own goals and objectives. Maintain a ruthless long-term view and focus your investment efforts on dividends and interest—the building blocks of any successful compounding strategy. Start with my newest recommendation, one of the largest aerospace and defense companies in the world. From there, buy the new high-yielding preferred issue we are recommending this month. It offers a high-yield without the usual maturity risk of preferreds. More >>
August 04, 2015 One takeaway from my recent visit with my friends at White Mountain Firearms in North Conway, New Hampshire is that guns and ammo aren’t getting any cheaper. My favored Sig Sauer 226 MK 25 chambered in 9mm is about 25 percent more expensive than it was five years ago. But I’ve invested a lot of time and […] More »
The Young Research Commodities chart book includes price, both real and nominal, for different time periods and annual rates of change for the commodities covered on the Global Investment Scorecard.
The Young Research Equities chart book includes a range of charts featuring indicators on stock market valuation, sentiment, relative strength, etc. for U.S. stocks over a variety of timescales.
The Young Research U.S. Economy chart book includes short and long-term charts on output and activity, the labor market, inflation, and consumer and business sentiment.
Since 1896, the average bull market has lasted 835 days and resulted in a doubling of stock prices. For more historical perspective on the duration and magnitude of bull and bear markets, check out our new Dow Bull and Bear Markets table.
Our Credit Markets chart book includes many of the charts we monitor and use regularly to formulate fixed-income investment strategy. The chart book includes long-term charts on nominal and inflation-adjusted treasury rates, policy rates, interest rate valuation indicators, and credit spreads.
Jeremy Jones, CFA, is the director of research for Young Research & Publishing and editor of the Global Investment Strategy newsletter. Jeremy is also the Chief Investment Officer at Richard C. Young & Co., Ltd., an investment advisor to high net-worth families and businesses. More »