Archives for October 2013

October 2013 - Page 6 of 13 - Money Morning - Only the News You Can Profit From

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 10 Best IPOS of 2013

It's been an excellent year for the initial public offerings (IPO) market, with the number of companies going public more than 47% ahead of last year's pace.

The surge in IPO activity has already assured that 2013 will be the best year for new issues since 2007, just before the financial crisis pummeled the markets. That year had 213 IPOs; so far in 2013 there have been 168 IPOs, according to Renaissance Capital.

Here are the top 10 market-beaters of 2013...

The Other Precious Metal Can Double Your Money Now

At times like this, gold and silver typically grab all the attention… and attract all the "safe" money. But there's another metal that could blast past both of these, virtually overnight.

That's because it has unique physical properties for which there is just no substitute – something its biggest consumers lose quite a bit of sleep over.

It's 15 times more rare than platinum… and 30 times more rare than gold.

And, as you'll see in the chart below, it hasn't been this attractive in 13 years.

We're looking at a 70% gain on this one – perhaps more – no matter how far Washington kicks the "debt can" down the road.

At current prices, it could even double...

Debt Ceiling Deal Doesn't Fix This Larger Global Issue with United States

Senate leaders finally hammered out a debt ceiling deal today (Wednesday) that avoided a looming potential debt default. It also reopened the government that has been shut down for more than two weeks.

Investors cheered the news and sent stocks up 205 points, or 1.36%, today.

While a deal solves short-term problems, it's not doing much to help the long-term nightmare.

To continue reading, please click here...

A Debt Ceiling Deal May Not Stop a Fitch Downgrade

While the markets heaved a sigh of relief today (Wednesday) over a last-minute debt ceiling deal to avert a U.S. default, the threat of a downgrade from Fitch Ratings has not gone away.

Late Tuesday Fitch warned that it would downgrade its U.S. credit rating to "RD," or restricted default, if Congress failed to come up with a debt ceiling deal before the deadline of midnight tonight.

But Fitch added that just any deal isn't going to cut it.

Here's why it could happen and what it would mean...

Twitter Stock to Trade as NYSE: TWTR; IPO to Price Nov. 14

San Francisco-based Twitter Inc. (NYSE: TWTR) has found a new home on Wall Street: the Big Board.

"We intend to list the common stock on the New York Stock Exchange under the symbol TWTR," read Tuesday's amendment to the company's Form S-1 filing with the U.S. Securities and Exchange Commission.

Twitter's roadshow to meet with potential investors will take place from Oct. 28 to Nov. 6. The stock is expected to price Nov. 14 and begin trading on Nov. 15, CNBC reported.

The Twitter IPO is one of the most hotly anticipated initial public offerings of 2013 – but the company faces a number of obstacles.

To continue reading, please click here...

I Just Got Another "Strong Buy" Signal...

If you've been joining our twice-a-week get-togethers over at Strategic Tech Investor, you know that I'm a focused and disciplined investor – and that I ignore fads and refuse to chase "hot tips."

I'm also very price-sensitive: Although I'm hunting for stocks capable of delivering "moonshot" price gains, I won't pay a penny more than my charts or "black box" system tells me they're worth.

To enforce that discipline – and to help pass along to you all that I've learned through the years – I developed the set of five rules that we talk about here each week.

But one of my best tools is also one of my simplest. It's a roster of companies whose stocks I'd someday like to own, but that don't currently meet my stringent criteria.

I call it my "Watch List."

And through the years, this simple shopping list for stocks has ended up delivering some of my all-time biggest winners...