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.)

December 19, 2014

Currency Market Frenzy To Drive Gold

By Moe Zulfiqar BAS, Profit Confidential

There are too many analysts who are concerned about deflation, a period during which the price of general goods declines. Because of this, analysts are not too keen on gold. They say the yellow metal is only good for one’s portfolio when there’s inflation. When prices are declining, it’s not really worth anything. I beg to differ, though.

Will Junk Bond Panic Lead to A 2015 Market Crash?

Do you want to know if the stock market is going to crash next year?  Just keep an eye on junk bonds.  Prior to the horrific collapse of stocks in 2008, high yield debt collapsed first.  And as you will see below, high yield debt is starting to crash again.  The primary reason for this is the price of oil.  The energy sector accounts for approximately 15 to 20 percent of the entire junk bond market, and those energy bonds are taking a tremendous beating right now.  This panic in energy bonds is infecting the broader high yield debt market, and investors have been pulling money out at a frightening pace.  And as I have written about previously, almost every single time junk bonds decline substantially, stocks end up following suit.  So don’t be fooled by the fact that some comforting words from Janet Yellen caused stock prices to jump over the past couple of days.  If you really want to know where the stock market is heading in 2015, keep a close eye on the market for high yield debt.