December 21, 2014

When Dumb Money Rushing Out of Junk Bonds

By Wolf Richter at Wolf Street

High-Yield Bond Funds, Loan Funds Hit by “Market Conditions”

The phenomenal Fed-triggered feeding frenzy in stocks on Wednesday and Thursday was paralleled in the junk-bond market. Energy related junk bonds had gotten shredded over the past couple of months, as the price of oil has collapsed. The sell-off started spilling over to non-energy junk bonds. Tuesday, the day before the Fed’s announcement, junk bonds suffered their largest drop since October 2011. And just as all heck was breaking loose, and as yields were getting painfully high for our spoiled zero-interest-rate conditions, the Fed rode to the rescue once again to bail out the markets with its vague verbiage about being “patient.”

Silver Could Outperform Gold in 2015

By Michael Lombardi, MBA for Profit Confidential
I know it’s a bold prediction: silver prices are going to surprise investors and provide them with better returns than gold bullion. I say this because both the fundamental and the technical pictures for silver continue to improve.

December 20, 2014

12 Things You Didn’t Know About the Wright Brothers

By Sarina Houston,

Most of us know that Wright brothers Orville and Wilbur were smart guys who also had a thing for bicycles. But what else do we know about these two brothers that successfully launched America – and other countries – into the world of flying? Here are a few interesting facts about the fathers of modern aviation. 
  1. Neither Wilbur nor Orville finished high school. A hockey accident left Wilbur badly injured and he fell into a depression, forgoing his plans to attend Yale. Instead, he stayed home and cared for his mother, who had tuberculosis. In the meantime, Wilbur’s younger brother Orville dropped out of high school his senior year to open a print shop.

Graph 150 Year of Russia Economy

By Tyler Durden at ZeroHedge  

While the current episode of Russian geopolitical and economic turmoil may seem significant, the following chart from Goldman Sachs shows the tempestuous time the nation has had over the past 150 years.

Picking Micro-cap Stocks

Our Model Shadow Stock Portfolio holds exchange-listed stocks whose market capitalizations rank within the bottom 10% of all NYSE-listed stocks. Specifically, stocks must have market capitalizations of between $30 million and $300 million in order to qualify for consideration. They are sold when their market capitalizations exceed three times the maximum for addition, placing the current sell trigger at $900 million. (We periodically adjust the company size and valuation rules to reflect prevailing market conditions.)