Don Miller
High Oil Prices: Worries Escalate Over $200 Oil and $6 Gas
Could new sanctions against Iran spark a crisis that drives oil prices to $200 a barrel?
The leaders of the Group of Eight (G8) economies certainly hope not.
Even still, they recently unveiled plans to tap into global emergency strategic oil reserves — just in case.
Citing their "grave concern" over Iran's nuclear program and the "likelihood of further disruptions in oil sales" G8 leaders put the International Energy Agency (IEA) on standby to tap the reserves at a moment's notice.
"Looking ahead we…stand ready to call upon the IEA to take appropriate action to ensure that the market is fully and timely supplied," said the statement summing up their meeting last weekend.
But the G8 may just be trying to calm the markets before the storm. History shows that tapping into the reserves won't do much to prevent higher prices.
And there's no reason to believe this time will be any different.
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There's More to the IPO Market Than Facebook (Nasdaq: FB)
Admit it, you love the Facebook IPO (Nasdaq: FB).
Besides its $100 billion-plus stock valuation, the social media company has over 900 million active users worldwide.
Plus, at $16 billion, Facebook will go down as the second largest U.S. IPO ever, trailing only Visa's $17.9 billion deal in 2010.
But let's not forget, this isn't the first IPO that's gotten a ton of attention, and it won't be the last.
In fact, the hype surrounding Facebook stock is overshadowing the entire IPO market, clouding the big picture, and perhaps, some worthwhile investments.
So let's take a look at what else has been going on in the IPO market and what's coming up that deserves your attention.
To continue reading, please click here…
Investing in IPOs: Why You Should Think Twice About Facebook (Nasdaq: FB)
Ever since the Dutch East India Company became the first to issue stocks and bonds to the public in 1602, investors have seen initial public offerings (IPOs) as the road to riches.
The current hype surrounding the Facebook IPO is just one example.
But investors tempted by Facebook (Nasdaq: FB) may want to think back to the dotcom craze of the late 1990 s. You'll remember it spawned a feeding frenzy among investors chasing after internet IPOs on an almost daily basis.
It wasn't long before investors on Main Street took the bait after watching hordes of new college graduates in Silicon Valley become instant millionaires.
But as companies with unproven business models executed massive IPOs with sky-high prices, every day investors who succumbed to the siren call got clobbered.
Pets.com for instance, raised $82.5 million in an IPO in February 2000 before imploding nine months later. And EToys.com stock went from a high of $84 per share in 1999 to a low of just 9 cents per share in February 2001.
In both cases, small investors were left holding the bag. The point is IPOs have always been high-risk, high-reward.
So, what is an IPO anyway? How do people get rich-and go broke– so fast? And, more importantly, should you invest in an IPO like Facebook for instance?
Here's what you need to know…
Biotech Stock ETFs: How to Ride the Surge in Biotech Mergers & Acquisitions
Innovations in biotechnology are evolving at the speed of light.
In fact, astonishing advancements in biotech have transformed the way we practice medicine. Leading-edge biotech products and breakthroughs are literally saving thousands of lives every day.
Needless to say, biotech stocks can be strong medicine for investors, too.
For instance, the Nasdaq Biotechnology Index rose 457% from the end of August 1998 to the end of February 2000. Going back even further to the early 1990s, biotech stocks have soared by 1,347%.
Think about it… for biotech investors every $10,000 invested turned into nearly $140,000.
The good news for investors is that after slumping during the recession, biotech stocks are making a comeback. In the first quarter of 2012 alone, the Nasdaq Biotech Index gained 18.2%
And conditions are setting up for even better gains in the future.
Here's why…
Are Junk Bonds About to Become a Victim of Their Own Popularity?
In our current low-interest-rate environment, many investors are widening their search for more income by buying junk.
Junk bonds, that is.
More formally known as high-yield bonds – junk bonds have been on a tear lately.
With the Federal Reserve vowing to keep interest rates at or near zero through 2014, investors seeking higher-yield investments are eyeing junk bond exchange-traded funds (ETFs).
Investors dumped $31 billion into high-yield bond funds during the first quarter of 2012 according to research firm EPFR Global. That's almost four times the global demand for junk-bond funds in 2011.
Here's why.
Junk bonds are offering generous dividends at a time when most other bond investments aren't even matching the rate of inflation.
"Clients are essentially trying to replace the income they used to get from their government bonds," Hans Olsen, head of investment strategy in the Americas for Barclays Wealth, told Bloomberg News.
Indeed, one of the largest junk bond exchange traded funds, the iShares iBoxx High Yield Corporate Bond (NYSEArca: HYG) is currently yielding more than 7%, while yields on the 10-year Treasury note hover just above 2%.
But while robust demand and issuance for junk bonds is a sign of a healthy market, there are reasons for concern.
Investing In ETFs: How Exchange-Traded Funds Can Save You Money
High commissions and management fees, along with taxes, can really cut into your returns.
That's where exchange-traded funds, or ETFs, come in. In today's investment world, ETFs are cheaper and more tax-friendly than mutual funds.
The average expense ratio for U.S.-listed ETFs is 0.4%, compared with 1.42% for diversified U.S. stock funds.They also give you exposure to an entire industry or market with the click of a mouse.
It's one of the reasons why exchange-traded funds are quickly becoming the investment of choice for investors seeking broad market exposure.
In fact, the number of ETFs has surged over 10-fold in the last decade.
The total number of ETFs in the market grew to 1,114 by October 2011, with assets over $1 trillion, according to the Investment Company Institute.
And the ETF market will expand to roughly $3.1 trillion by 2016, according to projections from the Financial Research Corp. in Boston.
So if you're looking to diversify your portfolio and save money doing it, ETFs may be the way to go.
Here's a primer on how ETFs can work for you.
Agricultural Stocks: Fatten Up Your Portfolio on Food Price Inflation
For most Americans, the cost of food hasn't always been such a big deal.
For the better part of the last 30 years, food supplies were plentiful and the economy provided enough wealth to keep cupboards stocked.
But my how things have changed since the financial meltdown of 2008. Today, food inflation has more people concerned about the cost of groceries — and how they're going to pay for them.
Yet for investors, the same food price inflation dilemma presents an investment opportunity that is ripe for the picking.
With that in mind, agricultural stocks are where to look for the low-hanging fruit as food prices keep heading higher.
Will Apple Inc. (NASDAQ: AAPL) Keep Driving Technology ETFs Higher?
Despite the recent selloff, shares of Apple Inc. (NASDAQ: AAPL) have skyrocketed 48% in the first quarter, dwarfing the 12% gain posted by the S&P 500.
Apple's astonishing rise has also helped to underpin the Nasdaq Composite, which gained nearly 19% in the first quarter — its strongest showing since 1991.
But that's not the only place to experience the "Apple Effect."
Many investors who own technology ETFs — which hold almost 4% of all Apple shares outstanding — were rewarded with even better returns.
For instance, theVanguard Information Technology ETF (NYSE: VGT) was up 20.85% in the first quarter.
Even better, the iShares Dow Jones U.S. Technology Index Fund (NYSE: IYW), was up 21.77%, thanks in part to Apple.
Now the question is: Can Apple's momentum continue to drive technology ETFs higher?
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