There are a number of reasons "options selling" is so popular right now. The biggest one, of course, is the money.
You can generate a ton of cash selling naked puts and calls. And you get the money right up front.It's just too good to avoid altogether...
Successful Investing: Five Things to Do Before 7 A.M. Every Day
The most successful investors of our time have one thing in common - they're early birds.
Consider joining them. Studies show that people who make things happen early are more proactive and more productive. They're also more likely to be top performers and enjoy greater financial success.
University of Heidelberg biology professor Christoph Randler notes that early risers tend to have a good idea of what they want to accomplish.
His research shows that, while evening people may be more creative and in some cases smarter than morning risers, they're "out of sync." Early birds, he noted in a 2010 Harvard Business Review article, "hold the important cards."
And if you're not a morning person?Here's my list of five things to do before 7 a.m....
This Is My Favorite Kind of Money
My favorite kind of money does three things.
First, it grows. And it keeps growing every single year - by double digits.
Second, and unlike most corporate profits, it only gets taxed once.
And third, it's "lean." The businesses paying my favorite kind of money are very sensitive to cost, while retaining virtually no earnings. After all, they have to pass through nearly all their income to investors.
Few investments give you all three of these benefits, of course. That's what makes the shares below so attractive.First, let's look at each of my "favorite money factors" more closely...
The "Painful" Truth About Diversification
Portfolio diversification is one of the most widely advocated concepts in investing. Almost all financial planners recommend it.
But it's also one of the most misunderstood concepts.
Traditional diversification isn't a real-world way to create big wealth.
Warren Buffett certainly understands this, as you'll see.So does Lynn...
This 3.5% Payout Is "High Yield" in Disguise
If I offered you an investment that pays 3.5% a year, and one that pays 12% a year, which one would you choose?
All else being equal, we'd be fools not to take the 12% offer.
Of course, "all else" is rarely equal... especially in a rising interest-rate environment. "Growth," as you'll recall, is the new "income."
That's why we need to look well beyond yield to evaluate a dividend payer, and focus on total return.
The first company we'll look at today, for example, will pay you $12 a year for every $100 you invest in its stock. That certainly seems appealing.But this second company - despite its lower payout - is a far better investment, for three reasons...
The Only Number You Need to Time – and Beat – the Market
It certainly seems as though the political gamesmanship that rules Washington, D.C., also rules the markets. But this isn't really the case.
In fact, there's one single "magic" number that far outweighs everything else when it comes to long-term influence.
This number's predictive power has saved me from some of the steepest market drops of the century, and it's given me everything I need to position myself for maximum gains in bull markets.
And the best part is, it's widely available - access to it costs nothing.It's how you use this simple number that counts...
The Nobel Prize for Market Timing Goes to… Cliff?
According to the Efficient Market Hypothesis (EMH), the best - and perhaps only - way to outperform the market over time is simple:
First, claim that beating the market over time is virtually impossible. Then, take home $1.2 million for "proving" it.
That was Professor Eugene Fama's approach, anyway, after co-winning the Nobel Prize in economics.
Don't get me wrong. As a professional investor and portfolio manager, I believe Professor Fama's EMH has many valid ideas. But fundamentally, people like us (and Buffett, and Soros, and Rogers, and Lynch, and Einhorn, and Paulson, and Icahn, and Ackman) never swallow EMH whole.
Ironically, neither does Clifford Asness.
Why would one of Fama's brightest students decide to ditch EMH, and pick stocks and time the market instead?Proving EMH "right" may be worth millions (to Fama). But proving it "wrong" is worth billions..
The S&P 500's Point of "No Return"
If you're like most folks, there's a nagging fear at the edge of your brain that's trying desperately to make sense of what's happening each day the market drops further.
It's tough to control under normal circumstances, but even tougher to dismiss against the backdrop of Washington's infantile behavior.Take a look...
How to Invest in a Market Correction
There are events unfolding right now that show you need to know how to invest in a market correction...
First, this bull market - the most unloved bull market in history, according to Money MorningChief Investment Strategist Keith Fitz-Gerald - has continued for 54 months now. That's a full 11 months longer than the average bull market run since 1953.
Second, the forces keeping this bull market going are almost completely divorced from any economic reality.
Unemployment and underemployment - the sheer number of Americans who've flat out given up looking for work - remains appallingly high, at 14%. Economic growth, limping in at under 2% per year, is anemic.
Yet, the markets have surged for more than four and a half years... hitting as high as 15,628... shattering all records as they go.