Yeti Vuitton

Brand identity is a powerful force, and I love consumer discretionary stocks for their potential to gain customers for life. Like Crocs (NASDAQ: CROX), Starbucks (NASDAQ: SBUX) and Louis Vuitton (NASDAQ: LVMH). Not that I think Yeti will be the next Louis Vuitton…

Breaking Out...Or Breaking Down

The 52-week high for the S&P 500 is up around 4,300. One year ago, on Star Wars Day (May the 4th) 2022, the index closed exactly at 4,300. Then on August 16, the S&P 500 closed at 4305, after failing to move above the 200-day moving average, which, on that day, stood at 4,325. Both of the highs – May 4 and August 16 – were followed by some pretty nasty drops.

Asleep At The Wheel?

With the fire sale purchase of First Republic Bank, JP Morgan’s (NYSE: JPM) CEO Jamie Dimon told the world that “This part of the crisis is over…The American banking system is extraordinarily sound.” Well. I know I feel better. Don’t you?

AI - Artificial Inflation

Pepsi’s Frito-lay division reported a 16% gain in revenue even though sales volume was flat from the year before. It would be interesting if I could tell you that the revenue gain came from some startling Artificial Intelligence application that boosted margins for Dorito’s. But there was another kind of AI at work – artificial inflation.

Pittsburgh Rare Market

As investors, we try to come up with the perfect recipe for selecting the companies we invest in. Rising dividends, expanding market share, positive cash flow, whatever it may be. And there are plenty of examples of great investors we can learn from and copy. Warren Buffett is a common example, and for very good reason. He follows a simple recipe and he knows exactly what the final dish will look like.

Is It Really that Bad?

If you wanna get a laugh from your family, friends or co-workers today, I’ve got a sure-fire way you can get at least a small grin from even the most cynical and humorless person you know…   Tell ‘em you’re bullish on stocks. 

A Dull Market

I don’t mind telling you – this has been one of the least enjoyable weeks to write about the stock market in a long while. Trading has been directionless. I’ve watched at least two dozen upside breakouts for individual stocks fail. And despite the clear unwillingness to take stock prices higher, the bears have been unable to get a decent sell-off going…

Today's Trading Plan (April 19, 2023)

A month ago, investors thought THE Charles Schwab Corporation might be the next banking domino to fall. Shares were crushed from $75 down to $50. But its earnings report Monday makes that +30% drop look a little overdone.

The Truth About Rare Earths

The notion that China is somehow in the driver’s seat is laughable. China’s position in the economic warfare vehicle is more like a grungy teenager on a skateboard clinging to the bumper: it’s only along for the ride, and if things get bumpy, it will end up with a face full of asphalt.

More China Selling

Right now, we’ve got American owned shell companies funneling U.S. tech to Russia to build the bombs that rain down on Ukraine. Tankers brimming with Russian oil are welcome in India and Turkey. Income mutual funds feast on that 8% Altria dividend that’s driven in part by cigarette and Juul vaping sales. Two-thirds of Americans favor a waiting period for gun purchases that only 9 states’ lawmakers have approved. Walmart (NYSE: WMT) agreed to pay a $3 billion fine for dealing opioids…

A Failure to Fear Monger

Welp, guess I’ll join the legions of financial/investment writers out there and talk about inflation and the Fed. Even with banks failing and a big jump in the number of economists and strategist-types saying recession is about to take us all for a ride to lower stock prices, the Fed is still the one driving this crazy bus…

Fair Value? Really?

With 5,300 stocks out there, it’s a pretty good bet that a pretty solid percentage are complete crap and should be completely off-limits for individual investors. And I will be so bold as to say that even within Morningstar’s cozy little neighborhood of 700 stocks, there will be more than a handful of crap.