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Two Safe Ways to Profit From the "Alibaba Shockwave Effect"

In the mid-1990s, I was fortunate to meet and start working with an Upstate New York money manager named Anthony M. Gallea.

The relationship began when I attended and wrote stories about some of the investment seminars he periodically held for prospective and existing clients. He then became a “source” for some of the investment stories I periodically wrote for Gannett Newspapers. And we ultimately collaborated on a pretty successful book about “Contrarian Investing” that was published by Prentice Hall.

Along the way, Tony shared some pretty important snippets of investing wisdom…


Stocks- Money Morning - Only the News You Can Profit From.

  • Best Stocks to Buy Now: A Money Morning Weekly Roundup

    Optimism returned to Wall Street last week, as Syria attack talk subsided and the yield on the benchmark 10-year Treasury note slipped.

    Triple-digit gains Monday through Wednesday last week added 401.10 to the Dow. Stocks closed with modest losses Thursday, with the S&P 500 Index snapping a seven-day winning streak. But the bulls were back in force Friday, helping the Dow log its best week in nine months.

    Yet, the market pendulum continues to swing between risk-off and risk-on trading, leaving investors cautious.

    Money Morning's updated list of the best stocks to buy – and some to avoid – address today's biggest market concerns and find the smartest opportunities for your money now.

    To continue reading, please click here…

  • 5 Dividend Stocks to Buy Now

    If you haven't already gotten choosy when picking your portfolio's sources of income, it's time – and here are five dividend stocks to buy now to help you.

    You see, many of the most popular dividend-paying stocks have become pricey amid the markets' year-to-date rallies and the insatiable hunt for yield.

    For example, The Coca-Cola Company (NYSE: KO) sports a juicy yield of just under 3%, but looks expensive with a P/E of 22. And The Procter & Gamble Co. (NYSE: PG) boasts an appealing 3.12% yield, yet shares trade at a lofty 20 times earnings.

    Even with the 10-year Treasury yield approaching 3%, dividend investing is still the best approach.


  • QE Taper Talk and the Stock Market

    Investors next week will be waiting for one key piece of info from U.S. Federal Reserve Chairman Ben Bernanke and the Federal Open Market Committee (FOMC) meeting: Will the QE taper begin?

    It's been exactly one year since the Fed announced QE3 – also dubbed QE Infinity, with no clear idea of an end date given at the onset. The Dow Jones Industrial Average has climbed 14.9% in that time, and the S&P 500 is up 17.25%. Since the first round of this last series of quantitative easing started in December 2008, the indexes are up about 73% and 92%, respectively. The fear now is that if the Fed stops buying and rates begin to move higher in the months ahead, money will leave the market as quickly as it piled in and cause a prolonged selloff that drives down share prices.

    Fed officials have been dropping broad hints that tapering is coming sooner rather than later.

    To continue reading, please click here…

  • IPO Investing: Put These Market Debuts on Your Calendar

    It's been a busy year for initial public offering (IPO) investing, and despite recent volatility, it's looking to be a busy fall for the new issues market…

    The stock market has remained firm in spite of increasing tensions in the Middle East and the fear of quantitative easing (QE) tapering from the U.S. Federal Reserve.

    To continue reading, please click here…

  • How a 1% Gain Can Destroy Your Retirement Dreams (Part I)

    How a 1% Gain Can Destroy Your Retirement Dreams (Part I)

    This has been the bond market's worst showing in 19 years, thanks to the recent spike in the 10-year Treasury yield. But bond investors aren't the only ones getting hit.

    A higher "risk-free" rate affects you, too. And me. And anyone else trying to grow their money.

    It's time to make an adjustment.

    A big one.

    So let's look at three new "dead money" investments, and one that's "living large" – a company that can give you what few others still provide: a steady double-digit annual return, year after year.

    But we'll start with the shift itself, because this seemingly benign 1% move has triggered what could be the single greatest risk to your retirement dreams…

    To continue reading, please click here…

  • Best Stocks to Buy Now: A Money Morning Weekly Roundup

    A possible military attack on Syria and the August jobs report – the last major read on the economy before September's Federal Open Market Committee (FOMC) meeting – kept investors pegged to the sidelines last week – but we still delivered a handful of new stocks to buy for Money Morning readers…

    Indeed, for the first time in three months, investors pulled some $226 million from U.S. equity funds, a reversal from inflows of $1 billion in the prior week.

    And after a three-decade bull market run, bond holders were reminded that even these "less risky" investment vehicles aren't immune to a bear market. The 10-year Treasury note hit 3% intraday Thursday for the first time since 2011. Money is seeping from bond mutual funds and exchange-traded funds (ETFs) ($45.7 billion through the end of August), with the bulk sitting in near-zero interest-baring money market instruments.

    Money Morning knows that savvy investors make money in all market scenarios. With that in mind, following is a recap of some of the best stocks to buy now that Money Morning featured last week.

    To continue reading, please click here…

  • The Biggest Stock Market News Today as the Dow Soars

    Stock market news today kicks off on a good note with the Dow Jones Industrial Average up more than 100 points before noon on Monday.

    But investors still await more clarity on whether the United States will attack Syria.

    To continue reading, please click here…

  • There's Only One Thing About Syria That Matters to Americans

    Let's talk about Syria and how what's happening there is affecting the markets.

    I see oil rising to two-year highs. I see gold rising to three-month highs. Let's see, what else is being affected? Oh, that would be nothing.

    And today we find out that, with a touch of some levers somewhere, U.S. GDP growth wasn't really 1.7% in the second quarter, it was really 2.5%.

    Let's talk about the GDP growth revision and how that's affecting the markets.

    I see oil coming off its Syria-inspired spike and gold giving up some recent gains. Let's see, what else is being affected? Oh, that would be nothing. Well, maybe bonds just a bit.

    To continue reading, please click here…

  • Giving China What It Wants Will Spice Up Apple Stock

    Apple stock has needed a fresh catalyst for quite some time, and it's about to get one.

    In the first of two related developments, Apple Inc. (Nasdaq: AAPL) has scheduled an event on Tuesday to unveil its new flagship iPhone 5S as well as a lower-cost version, expected to be called the iPhone 5C.

    To continue reading, please click here…

  • Stock Market News Today: Syria, Jobs, Septaper, and the Biggest Share-Price Moves

    In major stock market news today, markets are pulling out of losses at midday after volatile morning trade. Investors pulled out of markets after Russian President Vladimir Putin today vowed to back Syria in the event of a U.S. attack.  

    U.S. President Barack Obama, joining Putin at the G-20 Summit in St. Petersburg today, repeated his message that a U.S. attack would not be full scale, but would be on par with a recent attack on Damascus.

    In other stock market news today, investors learned that the United States added 169,000 jobs in August as unemployment dropped slightly to 7.3% from 7.4%, according to the U.S. Labor Department. It was fewer jobs than economists anticipated.

    And fewer people were looking for work as the labor force participation dropped to 63.2%, which is the lowest level since 1978, according to MarketWatch. Many investors suspect the worse-than-expected jobs data could delay the U.S. Federal Reserve's plans to ease out of its bond-buying program starting after the Sept. 17-18 Federal Open Market Committee (FOMC) meeting (Septaper).

    Meanwhile, Chicago Federal Reserve President Charles Evans hinted that the Fed could begin increasing interest rates in 2015 as unemployment falls below 6.5%.

    Amid the mixed economic data this week, Treasury yields, which have been rising all week, dropped today as Treasury prices rose on the jobs report data. The 10-year Treasury prices are up about 1% this morning.

    To continue reading, please click here…