Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.


How To Collect Your Share of My Million Dollar Giveaway

How To Collect Your Share of My Million Dollar GiveawayWe recently kicked off the most outrageous initiative in the history of investment research. It’s called the Income Millionaire Project. And the goal is simple: create 1,000 income millionaires. That’s a $1 billion goal! No one has ever tried it before, but that doesn’t bother me. I’m so sure you can use this program to make a million bucks… I’ll pay you $1,000 to start your journey. Go here for details.


Rocky Road Investing

By Linda McDonough on August 16, 2016

I recently returned from a trip to the wild northwest of Ireland. The people of Connemara were warm; the weather chilly and misty. Hot tea or cool Guinness was consumed at every stop and lively conversation wove its way among tin whistle melodies.

But I couldn’t quite take off my analyst cap, as the sharp boulders planted in unruly fashion there felt like this second quarter earnings season. During my visit, almost all the stocks in my Growth Stock Strategist and Profit Catalyst Alert portfolios reported earnings, and the ensuing changes in stock prices felt as though I was dodging those chaotic boulders. Although we saw some fabulous performers, marginal earnings’ misses were dealt sharp blows and strong results were sometimes greeted with a yawn.

FactSet, the financial data service, confirmed my gut feeling. In a recent second quarter review it noted that earnings that beat estimates in this period were rewarded with a small 1.1% gain, slightly lower than the five-year average, while earnings misses were punished more severely (down 2.4%) than the five-year average.

To be right in the stock market an analyst obviously needs to be on target most of the time about fundamental operating results of a company. However, the more important factor is to be right on the stock direction. No one cares if you get the numbers right but the stock doesn’t move as expected. When this happens, I take note.

Market Trifecta

Although the headlines are cheering about the trifecta of all-time highs being hit by the Dow, the S&P and the NASDAQ, underneath it feels a lot messier. These unexpected stumbles in stock price despite in-line number are symptomatic of nervous investors and signal some rocky times ahead.

Almost any way you size up the stock market it’s expensive. The S&P 500 trades with a trailing 12 month P/E of 19.5, well above the five year 15.9 average. This might be fine if earnings were growing faster than usual. But that’s far from the case. Collective earnings for the S&P 500 declined 1.9% for the past 12 months. Expensive stocks are burdened with high expectations, so one small whiff of disappointment can send shares reeling.

In the meantime, as the market figures out if earnings estimates will rise enough to justify prices, I’ll be working on more bearish trades for groups in long-term secular decline and rooting around in the few industries experiencing revenue growth for undervalued stocks. My mantra has always been to recommend stocks that trade with reasonable valuations, which should help soften any drop from a quarterly hiccup.

The rocky Connemara fields are segregated by stone walls and punctuated with jagged rocks. The wall next to our cottage supposedly led to a “short cut” to the local pub. Our host promised us that many an Irishman had made the journey safely after closing time but I wondered how even a sober pedestrian could safely find their way along that rocky path.

In a bull market even a drunk investor can find some stocks that will go up, but when the market is in transition, as it is now, sobriety and care are critical.

You might also enjoy…


Obscure Tax Law Forces This Company to Pay Out 90% of its Profits

A 50-year-old loophole is forcing one company to pay out $9 of every $10 it makes from ironclad contracts with the U.S. Government.

In fact, over the past seven years, it’s made payments ranging from a few dollars… to tens of thousands of dollars… 30 times. Without a single cut! 

Most folks don’t even know this company exists, but the ones that do are making a mint.

Like Ted B., who’s set to receive a check for $1,096 just a few days from now.

Merrill H., a 58-year-old from New York, has collected over $3,385 so far. 

And retirees Beth and Terry P. have raked in $16,555.

I’ve put together a special report that will give you all the details, including simple instructions on how to get your name on the payout list before the next cutoff date.

You can get your copy here.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.