Archives for March 2015

March 2015 - Page 22 of 22 - Money Morning - Only the News You Can Profit From

Warren Buffett Successors Revealed: Meet Ajit Jain and Greg Abel

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Two Warren Buffett successors were named Saturday by the most credible source besides Buffett himself – Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) vice chairman Charles Munger.

In a Feb. 28 letter to shareholders, Munger said two men – Ajit Jain and Greg Abel – would both be worthy replacements of Buffett as new Berkshire Hathaway CEO.

Buffett will turn 85 on Aug. 30, and right-hand man Munger celebrated his 91st birthday on Jan. 1. While no one is certain when the two leaders will exit, when they do, it will surely affect Berkshire stock – and its investors.

Here's a close look at the two men Munger named as probable Warren Buffett successors...

Find the Best Stocks to Invest in with This No. 1 Buy Signal

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There's one strong "Buy" signal that alerts you to some of the best stocks to invest in across all sectors. Many investors don't know about it, or how to track it.

Money Morning's Executive Editor Bill Patalon alerted his readers when Kratos Defense & Security Solutions Inc. (Nasdaq: KTOS) flashed this buy signal in March 2014. The stock zoomed 9.2% in just three days and climbed 20% over the next three months.

The signal: Insider buying.

Today we've found three of the best stocks to invest in based on strong insider buying activity. Take a look...

Tesla Motors Stock Price: Volatile, but a Long-Term Win

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It's time to check in on one of the most volatile stocks on the market, Tesla Motors Inc. (Nasdaq: TSLA).

The Tesla Motors stock price in 2015 has ranged from a high of $223.40 to a low of $185. It's down 3.2% today (Monday, March 2) after Bank of America analysts maintained their "Underperform" rating.

One of its most dramatic plunges came after it released disappointing Q4 earnings Feb. 11. TSLA opened 9% lower Feb. 12 after it fell short on earnings per share (EPS), revenue, and vehicle deliveries.

As we've stressed at Money Morning, Tesla stock is not for conservative investors. It will be volatile. It doesn't fit in every portfolio.

Why an Apple Virtual Reality Device Is Good for Investors (AAPL)

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Evidence is piling up that an Apple virtual reality device is in the works.

Apple Inc. (Nasdaq: AAPL) has posted several job listings in recent months seeking engineers with knowledge of virtual reality. A patent that surfaced last month described a piece of virtual reality headgear.

But is it a good idea for Apple to pursue virtual reality?

In this video Money Morning Chief Investment Strategist Keith Fitz-Gerald delivers his verdict on Apple virtual reality and makes a surprising suggestion for Google Inc....

DJIA Futures Up Today on These Top 7 News Stories

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Good Morning! DJIA futures today forecast a 23-point increase from Friday's close as investors await new economic data and an update on consumer spending.

What to Watch Today: Markets will react to a slew of economic data including updates on U.S. consumer spending, income levels, and construction figures.

Still, the real news in focus today is that China has slashed its interest rate for the second time in three months. The People's Bank of China (PBOC) cut its benchmark interest rates by another 25 basis points to 5.35% on Saturday.

Here's what else you should know about the DJIA futures - including your "Money Morning Tip of the Day" - to make it a profitable Monday...

How to Identify the Best Small-Cap Stocks

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Since the October 2014 lows, the Russell 2000 (the broadest measure of the small-cap sector) has gained 18.09%.

To put it mildly, small-caps have absolutely been crushing the broader market over the last four-and-a-half months. Too bad the mainstream financial media would rather spook investors with the 'what-ifs" of what is going wrong domestically and abroad.  

Speaking of media coverage…

Remember back in September 2014 when the Internet and every major financial network was stumbling all over themselves to spell the end for small-caps because the Russell 2000 had just experienced the dreaded "Death Cross," a technical condition that occurs when the 50-day simple moving average crosses below the 200-day simple moving average?

I wrote an article at that time dissecting the truth behind the small-cap Death Cross.

And the verdict?

A whole bunch of hooey!

Investors who "short" the Russell 2000 during a Death Cross condition experience a dismal 25% winning percentage and an average return of a 0.97% loss.

Bottom line, the Death Cross is statistical a waste of time. It makes for good headlines - and a good way to lose money...

Equities Are Riding High on Thin Air

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I am often asked by the investors in my funds, "When will markets finally start paying attention to the signs of weak economic growth?" I tell them that the consensus answer is that bull markets only end when the Fed starts aggressively raising interest rates.

I also tell them that when interest rates are at zero, as they have been for the last seven years, the normal answer may not apply. In the meantime, stocks keep hitting new record highs while bonds and commodities are telling a very different story about the state of the economy…

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