AbbVie slid a precipitous 4.7% last week, but that steep plunge isn't the real news here.
- Three Investing Tips to Glean from AbbVie's Recent Slide
- What to Do Now If You're Short Twitter Stock
- How to Stay Protected (and Earn 164% More) When the Market Tanks
- The Best Investing Books to Read and Share in 2016
- The Most Powerful Argument You'll Ever See for Staying in the Stock Market
- The Only Two Stocks You Need This Shopping Season
- Tech Stocks Poised to Rise on This Economic News
- Use These Four Tools to Profit from Today's "Hidden Tech Rebound"
- How We'll Profit as Volatility Shakes Out the "Weak Money"
- Pick the Stock, Mark a Date on Your Calendar… and Collect Clockwork Profits
- The Power of the Loophole Trade
- The Secret to Superior Returns
- What Is the Difference Between Insider Buying and Insider Trading?
- What Is the Beta of a Stock?
- Today's Top Blue-Chip Stock to Buy
- Here's How to Invest in SpaceX if its Rocket Failure Makes an IPO Less Likely
Stifel Nicolaus analysts made headlines when they recently downgraded Twitter, noting that they were returning their rating to "where it should have been all along - Sell." Other analysts are piling on.
Now, you and I've been talking about this since December 2013, when I called it out as one of my three top shorts. So it's not a surprise to us.
Twitter stock has fallen by 75.49% since then, and if you've been following along, you're sitting on some great profits.
Over the past 12 months we've had several major market corrections and, each time, I've counseled you to buy into the madness because history shows beyond any shadow of a doubt that's the path to enormous profits.
And, each time, I get a blizzard of emails, and the past few trading sessions have been no exception...
...but what happens if the markets go down further?
That's a logical question.
So I thought we'd answer that today with a quick look at how to combine two tactics for maximum profits and minimum risk, especially on big down days.
It's powerful stuff, and not just because of the profit potential.
The real message here is that the tools I'm going to share with you today can give you the confidence boost you need to buy on big down days when everybody else and their mother has their finger on the "sell" button.
As usual, I've got a few easy-to-understand examples so you can put what you learn to work straight away.
What you do every day has a major impact on your wealth. Reading, in particular, is a "rich habit," according to author Thomas Corley, who spent five years studying the lives of rich people and poor people.
Reading provides three key elements successful investors need: mental stimulation, knowledge, and stress reduction. All help you form new brain pathways called synapses while strengthening existing mental connections.
Investors pulled almost $40 billion from stock markets last quarter alone, according to Morningstar. That's nearly 50% of everything taken out for all of 2015.
But here's the thing... no matter how grim the global situation is or even becomes, indiscriminately selling is exactly what you don't want to do.
It's one of the worst possible decisions any investor can make and, ultimately, one that will cost investors billions in lost profits.
The stock market is diverging, split between the top-tier "Haves" and the struggling, shrinking "Have Nots."
This shift means big profits for investors looking at the companies I'm about to talk about.
But it also means classic retail stocks are facing nearly insurmountable headwinds this year. And it would be a (costly) mistake to expect much good news for them in the upcoming 2015 holiday shopping season.
As we've talked about in several recent conversations, I live by the credo "always have some money invested in tech stocks" - no matter how much "noise" you hear out of Wall Street and Washington.
Otherwise, you'll miss opportunities to buy winning stocks when they are "on sale." Worse, you'll miss taking a big profit from the rebound.
The mainstream financial press would have you believe that markets "have fallen and they can't get up." They're telling you to gather your capital and dash for the sidelines.
Those folks are clearly clueless about how to make money as an investor.
You see, since hitting bottom on Aug. 25, the tech-heavy Nasdaq Composite Index has rallied for gains of roughly 11%. That means, in about two months, this tech barometer has turned a year-to-date loss into a nearly 6% profit.
After seven down days in a row, the markets roared back Monday and appeared to erase last week's sharp declines.
Now, Monday's action looked impressive by any measure... but the "green" chart I'm about to show you told me that we were looking at something other than the start of a sustainable rally.
And just as I thought, the markets headed lower again yesterday.
Today we're going to examine in granular detail a moneymaking tool called the loophole trade. And we're going to drill down and comprehensibly discuss why certain market conditions would compel us to recommend this tactic.
Remember: Through familiarity that's gained by the proper application of financial knowledge, you can overcome fear of volatility and risk.
Many people are surprised to learn that dividend income and reinvestment can account for nearly 90% of total stock market returns over time.
That's right. Not a quarter... Not half... But 90%.
Strong insider buying is one of the most accurate indicators that a stock is headed higher. So whenever we see a stock that has strong insider buying, we alert our readers.
But we frequently hear the same question from readers: What is the difference between insider buying and insider trading?
There are numerous financial figures to analyze when determining which stocks to buy, and the beta of a stock is one of the most important.
That’s because the beta of a stock indicates its volatility.
The Dow Jones Industrial Average has been extremely volatile in 2015. Through January, the index fell 3.7%. In February it climbed more than 5%.
Now the Dow is back below 17,700 after falling more than 240 points.