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.


$1,230 in Instant Income?

$1,230 in Instant Income?Our top income expert recently pulled the wraps off his breakthrough moneymaking technique. And he proved beyond a shadow of a doubt how you can use it to generate instant cash payouts of up to $1,230 (or more). Over and over again. But then he took things a big step further and guaranteed you can make $1 million by following his program. And the second he did, our phones went nuts! Space is limited — get the details here.



Santa Claus Came to Town – and Left

By Linda McDonough on November 29, 2016

Investors waiting for the market’s annual “Santa Claus Rally” have already missed it, and it’s not even Dec. 1.  The President-elect took the reigns from Jolly Ole Saint Nick and drove the market to new highs.

The problem is super-bullish investor sentiment matched with rosy expectations may result in an early New Year’s market hangover.

The American Association of Individual Investors survey, which measures investor sentiment, clocked in with 50% of investors bullish last week, up from 23.7% in the prior monthly survey. This is the largest stampede into the bullish camp in more than six years.  Extreme bullish sentiment often signals a market top.

Since the election, the S&P is up 3.5% and the small cap Russell is up 12%. Leading the pack is the banking index which is up almost 13% since the Trump win. Right on its heels is the industrials with a 9% gain. Behind them the pack is crowded with materials, consumer discretionary and energy stocks all up about 4%. TrimTabs Investment Research, a firm tracking money flows, estimates that $44 billion poured into exchange traded stock funds in the seven days after the election.

That $44 billion is a lot of money. TrimTabs notes this is the second largest wave of money rushing into the stock market since July 2007.

Most mutual funds are measured on how their performance ranks versus the S&P 500 or another appropriate benchmark. This means they need to invest newly received dollars as quickly as possible. If you’re a fund manager in a race to beat your benchmark every dollar sitting idly by in cash is a potential drag on returns.

So you need to invest the cash fast and smart, and there is some logic behind some of the sector choices portfolio managers are making. Investing in small caps makes sense, for example, because they wouldn’t feel the pain that multinational large cap companies may face if Trump increases tariffs or establishes regulations that slow global trade.

And bank and financial stocks typically profit from higher interest rates. The possibility of increased borrowing to fund Trump’s spending plans has lifted interest rates to 2.3% up from 1.8% pre-election. Materials companies should prosper with his planned infrastructure build and the energy group has been lifted by the prospects of pro-fossil fuel policies. While these assumptions may improve the prospects for some of these stocks, a blanket buy program like the one we’ve just witnessed often ends with some tears.

For one thing, it takes more capital to move higher priced stocks. That $1 million that used to buy you 58,000 shares of Bank of America will now buy 10,000 less shares after the rally. So the bad news is that investors looking for more presents come year end have likely already opened their best ones.

But there is good news. The blind buying going on now gives bears the perfect setup for some great trades next year. At Profit Catalyst I’m selling a few positions that have logged in almost 40% gains in less six months and issuing put option alerts on stocks that may disappoint investors when earnings are unwrapped in January.

You might also enjoy…


R.I.P Bull Market—Here’s How To Protect Your Wealth

I hope you’ve enjoyed the phenomenal bull market of the past eight years…

Because it’s about to come to a screeching halt.

The Federal Reserve’s nearly decade-long spending spree has finally come to an end.

With no other options left at their disposal, the Fed has no other choice than to raise interest rates to keep inflation in check.

And that leaves you with two options…

Do nothing and suffer the agony of watching the profits you’ve accumulated over the years evaporate right before your eyes…

Or reposition your portfolio and invest in companies which prosper as inflation rises and interest rates soar.

I think the choice is clear. And I’ll show you the best new positions you can take if you click 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.