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.


Renowned Economist Paints Startling Portrait of the Future

Renowned Economist Paints Startling Portrait of the FutureRenowned economist Dr. Stephen Leeb has predicted the last 5 major market shifts. And he’s just revealed his latest prediction: “A market meltdown will wipe out the savings of millions of Americans.” In his latest report, he details which stocks will come crashing down in the coming months, as well as a select few that could double or even triple in value over the next few years. Get your copy here.


Stock Stocking Stuffers for the New Year

By Jim Pearce on December 23, 2016

With the stock market at record highs after the post-election stampede, you may think nothing is worth buying now. I get that, especially since the odds of a correction are higher now than they were just three months ago when the S&P 500 Index was valued 7% lower.

But as the old saying goes, “it’s a market of stocks, and not a stock market,” which means it pays to look at stocks individually. Bargains can always be found, but you can’t use the  monkey-and-dartboard approach that would have worked over the past seven weeks.

Three broad categories of stocks tend to perform well during the first quarter of a new year. The first category consists of “fallen angels” that have not kept up with the overall stock market or have become oversold. They aren’t always easy to spot since many companies rightfully deserve the beating they have taken and will not soon recover, but some stocks fall out of favor due to temporary reasons, and will soon be on the upswing.

An example of this from last year is Western Digital (WDC), which has seen its share price rise and fall more than 50% over the past three years as excitement over the growth of cloud computing gave way to anxiety over the impending death of personal computers. But a funny thing happened on the way to gallows: WDC adapted through buying its way into the latest wave of mobile storage technology. As a result, its share price has doubled over the past seven months.

The second category of stocks includes companies that stand to benefit from an unforeseen macroeconomic factor. For example, the recent plunge in oil prices was bad for the energy sector, but good for companies that consume a lot of energy, such as airlines. Shares of Delta Airlines (DAL) soared 25% during the second half of 2015 as the price of oil dropped steadily, while Chevron (CVX) stock dropped by roughly the same amount at the exact same time.

The tradeoff: as 2016 got underway Delta was fully valued while Chevron couldn’t drop much lower. So once oil prices started to rebound, CVX gained nearly 50% from its February lows while DAL only this week managed to climb into positive territory for the year. This year’s wildcard macroeconomic event could come from possible trade wars with China and Mexico, or the infrastructure spending program President-elect Donald Trump promises to deliver. So if those things come to pass it could radically change many companies’ prospects.

Finally, there are companies that have performed so poorly that to survive they are forced into restructuring by selling off subsidiaries so they can focus on their core competency. We’ve seen this type of maneuver often recently, such as two years ago when Hewlett-Packard spun off its PC and printer businesses in to HP Inc. (HPQ), while keeping its services operations at Hewlett-Packard Enterprises (HPE).

As expected, HPQ stock has floundered, declining 20% since the split-up, while shares of HPE have risen nearly 50%. More recently, Xerox has followed HP’s lead by essentially doing the same thing. And ConAgra just spun off its frozen potato division so it can invest all of its resources in its higher-margin products.

On page 4 of the January 11th issue of Personal Finance I evaluate these transactions, with advice on which of these newly-created companies is a Secret Santa gift, and which is a lump of coal.

You might also enjoy…


12 Stocks Virtually Guaranteed to Go Up in 2018

You may not believe it, but I have a calendar in my hands right now that tells me the exact date and time when a few stock are practically guaranteed to go up. 

Twelve of them, in fact.

And if you were to invest in them following the simple buy and sell instructions found in this calendar…

You could be making $1,181… $11,814…. and as much as $190,916 more than by using a “buy-and-hold” strategy.

And here’s the best part…

I’m giving away a few copies of this calendar to interested investors (First come, first served).

With this calendar, you could get higher profits with less risk.

Click here to get the full story, and to claim your copy.

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.