AUDIO: Investing Daily News Digest

In a hurry or on the go? Listen to our editorial director read the major headlines, with accompanying story synopses, that appeared over the past week on the Investing Daily web site. Hit the play button.

Reader Letters: Portfolio Hedges, Your 401k…and More:

I answer letters-to-the-editor from readers that were sent to our email address, Topics include questions about:

Hedges. I define “hedges” as precious metals, real estate investment trusts (REITs), and commodities, among other investment classes. Your choices depend on your investment profile and how much risk you’re willing to shoulder.

401k plans. I point out that most 401k plan participants aren’t even aware that they’re paying 401k fees, but many mutual fund providers charge more than 1% of your total assets in investment management fees. To maximize your long-term wealth building strategy, you need to understand these fees and scrutinize your 401k plan packet for them.

Lithium. The biggest growth driver for lithium is the burgeoning demand for lithium-ion batteries used in electric vehicles (EVs). I think of lithium as “the new gasoline.” The optimal way to invest in lithium is through well-capitalized mining stocks with large lithium operations.

Breaking the Rules of Retirement Income Planning

Jim Pearce, chief investment analyst of Personal Finance, PF Pro, and Mayhem Trader, explains that options trading can allow you to “catch up” on your retirement investing.

“You pay a premium for the right to either buy or sell a stock at a predetermined price within a specified timeframe. If you turn out to be correct about the future direction of that stock, then your option will appreciate in value…Over the course of a year, those small gains can add up to a lot of money. In most years, the net income received can far exceed [conventional] returns.” Jim explains the risks and rewards in his article.

1987 Black Monday Redux?

I describe a list of the commonalities that I perceive between 1987 and 2023: A contracting economy; elevated inflation; rising interest rates; trade tensions between the U.S. and other countries; geopolitical instability; declining liquidity; a strong U.S. dollar putting pressure on exports; a large increase in the number of bank failures; divided U.S. government; and heavily levered market participants, many of them novices. The most significant parallel is the rise of computerized trading systems.

Should You Use Home Equity to Invest in Real Estate?

Our analysts explain that with HELOCs, or home equity lines of credit, you can withdraw only as much money as you need. It’s kind of like an enormous credit card. A HELOC lender will give you a line of credit, but you’re not obligated to use all the funds at once. You can draw only the funds you need at the moment, and pay interest only on the amount you’ve borrowed. A HELOC can be a good option if you have a large percentage of your mortgage paid off and are a careful spender who likes to prepare for emergencies.

Cannabis Legal Reform Rolls On

In this Weed Report video presentation, I provide an up-to-date review of reform efforts for marijuana and psychedelics around the nation.

Minnesota has created a psychedelics task force designed to prepare the state for possible legalization. The move came just days after the legislature approved a bill to legalize marijuana, which Gov. Walz promised to sign this week following the Memorial Day holiday.

Nevada’s state sports regulators voted to send a proposed regulatory amendment to Republican Gov. Joe Lombardo that would officially protect athletes from getting penalized for using or possessing marijuana in compliance with state law.The governor is expected to approve the reform related to athletes.

In New Hampshire, a solid majority of New Hampshire residents continue to support marijuana legalization, according to a new poll released May 23. Overall, 72% of New Hampshire citizens expressed support for adult-use legalization.

Ohio’s state lawmakers have filed a new bipartisan bill to legalize recreational marijuana. At the same time, pro-marijuana advocates are working to place a reform initiative on the November ballot. Medical marijuana already is legal in Ohio.

Editor’s Note: Are you looking for the next big growth opportunity? Consider the “green rush” in marijuana.

However, stock picking is particularly treacherous in the cannabis industry. Marijuana poses huge investment opportunities, but you need to be careful. Financial wolves also stalk the world of weed.

That’s why I wrote a book: The Wide World of Weed and Psychedelics. It’s your definitive guide for safely making money in the thriving cannabis and psychedelics industries. Click here to get your copy.

John Persinos is the editorial director of Investing Daily.

Subscribe to John’s video channel by clicking this icon: