Author: Wall Street Vibes

Why I’m Bearish on France… and You Should Be Too

This post was originally published on this siteEditor’s Note: In today’s column, Alex mentions ETF Strategist Nicholas Vardy’s knack for finding ways to make money in any market, anywhere in the world. That’s some pretty high praise, especially coming from the guy who thought to get in on Netflix before it went big. If Alex is saying Nicholas is the best at knowing when and where to go long and short… it must be true. And you can get in on Nicholas’ great recommendations too with his new trading service, Oxford Wealth Accelerator. More information will be coming your way THIS MONDAY. And stay tuned for our teaser in Sunday’s Liberty Through Wealth Week in Review… it’s not one to miss! – Katherine Koman, Assistant Managing Editor Saturday night I had dinner with a top executive of one of France’s biggest public companies, with annual sales of more than $41 billion. Since his office is in Paris, I asked him about the “yellow vest” protests going on outside his window. “It’s a mess,” he said, shaking his head. His firm is about to lay off 1,000 employees and was trying to decide whether it would be better to announce it now with all the craziness in the streets or later when the reaction might be less volatile. “Either way,” he said, “we’re done hiring French employees. We would never...

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2 Must-Buy Preferred Stock ETFs

This post was originally published on this sitePreferred stocks are the best of both worlds… They’re both a debt and equity investment. They are debt issued by a company that has specific provisions about the payment of dividends. They are preferable to ordinary stocks in that dividends cannot be paid to common shareholders before preferred shareholders. But preferred shareholders don’t have voting rights. Preferred stocks trade in the market like stocks and have the potential for significant price appreciation… or depreciation. Many companies issue preferred shares, but they are more common in the financial sector. They are a quick...

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A Rock-Solid Dividend

This post was originally published on this siteIllinois Tool Works (NYSE: ITW) investors have had a tough go of it in 2018, with the stock down 22% year to date. Earlier this year, even though the company lowered third quarter guidance, it missed analysts’ estimates. Nevertheless, investors who are focused on income have little to worry about. The company, which makes equipment for automobiles, construction, the food industry and other fields, pays a $1 per share quarterly dividend, giving the stock a 3.1% yield. Will Illinois Tool Works’ dividend follow its stock price into the gutter? Cash flow is...

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How to Avoid Account Balance Dread

This post was originally published on this siteThe whiplash market we’ve had since October has been good for only one thing… It’s an excellent test of the balance of stocks to bonds in your portfolio. For us gray hairs, that’s as important as watching our weight and blood pressure. If after one of the many 500-point down days you dread opening your account page… you’re not alone. The feeling is common right now, and it is a good indication that your portfolio is too stock-heavy. Don’t get me wrong. Everyone, no matter what age, should own stocks. It is one of the few ways available to keep pace with inflation. But most investors own only stocks, and usually the wrong kind. So when the kind of market we have had for the past two months hits, which it always will, the market price stability bonds could have added becomes painfully obvious. It shows up as account balance dread. If you haven’t been able to ride out this market without constantly monitoring your balance or worrying about the indexes, it could be a warning sign. Or if you have already made the biggest mistake the average guy can make and gone to cash to “cut your losses” or “wait out the sell-offs,” you definitely own the wrong securities and, very likely, no bonds. On the stock side, we old hippies...

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What to Do When the S*%t Hits the Fan

This post was originally published on this siteA trait that most people find impressive is the ability to remain calm under pressure. Think about who we look up to… Politicians who lead during a disaster. Police officers, firefighters and paramedics who can tune out the chaos around them to accomplish what needs to be done. Athletes, like a quarterback who stands in the pocket despite a massive pass rush and delivers a perfect spiral for a touchdown. And let’s not forget the parents who, when faced with their child’s health emergency, are able to reassure the child and keep him or her calm, despite their own worst fears. It’s not just the ability to give a speech, spray water on a fire, throw a football or speak soothingly to a child that makes these people exceptional. It’s the fact that they do it when fear and outside forces would make the task impossibly difficult for most people. For some reason, investing is different. I’ve seen people act like rocks in the face of serious family crises yet panic during a stock market sell-off. At some point, we’re going to have another serious downturn in the market. I’m not talking about what happened over the past few weeks. I mean an honest-to-goodness bear market or even an outright panic like we had in 2008. It happens every so often. It’s...

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