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Mortgage rates have risen to their highest levels in six months, threatening to delay a housing turnaround by discouraging potential home buyers.
The average rate on a 30-year, fixed-rate home loan climbed to 5.29% for the week ended Thursday, Freddie Mac reported. That's the highest since December and up from 4.91% a week earlier.
In early and late April, the rate was at a record low: 4.78%.
The average rate on a 30-year, fixed-rate home loan climbed to 5.29% for the week ended Thursday, Freddie Mac reported. That's the highest since December and up from 4.91% a week earlier.
In early and late April, the rate was at a record low: 4.78%.
- USA Today
President Obama may have "no interest" in running General Motors, as he averred Monday. But even if that's true, we are already discovering that he shares Washington with 535 Members of Congress, many of whom have other ideas.
The latest self-appointed car czar is Massachusetts's own Barney Frank, who intervened this week to save a GM distribution center in Norton, Mass. The warehouse, which employs some 90 people, was slated for closure by the end of the year under GM's restructuring plan. But Mr. Frank put in a call to GM CEO Fritz Henderson and secured a new lease on life for the facility.
Mr. Frank's spokesman, Harry Gural, says the Congressman discussed, among other things, "the facility's value to GM."
The latest self-appointed car czar is Massachusetts's own Barney Frank, who intervened this week to save a GM distribution center in Norton, Mass. The warehouse, which employs some 90 people, was slated for closure by the end of the year under GM's restructuring plan. But Mr. Frank put in a call to GM CEO Fritz Henderson and secured a new lease on life for the facility.
Mr. Frank's spokesman, Harry Gural, says the Congressman discussed, among other things, "the facility's value to GM."
- Wall Street Journal
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The Double-Digit Bear Market Income Secret Revisited
By Tom Dyson Saturday, June 6, 2009 The Double-Digit Bear Market Income Secret Revisited -
A Legendary Investor's Best Advice on Protecting Your Wealth
By Dr. Steve Sjuggerud Friday, June 5, 2009 A Legendary Investor's Best Advice on Protecting Your Wealth -
This Group of Stocks Is Preparing for a Moonshot
By Tom Dyson Thursday, June 4, 2009 This Group of Stocks Is Preparing for a Moonshot -
This Group of Stocks Is Preparing for a Moonshot
By Tom Dyson Wednesday, June 3, 2009 This Group of Stocks Is Preparing for a Moonshot -
An Embarrassing Day for America: What it Means for Your Investments
By Dr. Steve Sjuggerud Tuesday, June 2, 2009 An Embarrassing Day for America: What it Means for Your Investments
These Stocks Rise Faster Than Any Other Investment Class in the World
By Tom DysonMonday, June 8, 2009
Late last year, as the markets continued to plummet, I began taking a very close look at a certain sector of the market. The simple fact is, at the end of every major market downturn, this sector rises higher and faster than any other investment class in the world...
Old-time market pros regard the 1973 to 1974 bear market as the most savage bear market since the Great Depression... and the bear market that most closely resembles the bear market of 2008.
Check out how this group of stocks performed once the 1974 bear market ended...
Last year, we experienced the worst stock-market panic anyone under the age of 80 has ever seen. By March 2009, the S&P 500 was down 58% from its high.
So I figured, if a new bull market was coming, this one sector would be the place for the largest gains in the stock market. The sector I'm referring to is penny stocks...
On Wall Street, brokers and analysts judge the size of a company by its "market cap." Generally speaking, brokers call any company with a market cap less than $1 billion a "small-cap stock" and any company with a market cap less than $250 million a "micro-cap stock." In the past, these small-cap stocks often traded for less than a dollar per share, so you also might hear them called "penny stocks," even though very few stocks actually trade for pennies.
If you're serious about making a fast fortune in the stock market, you should only ever buy these penny stocks...
Firstly, you're never going to make outrageous gains in a short amount of time trading large-capitalization stocks. Take Coca-Cola or McDonald's, for example. These are large-cap stocks. They're mature businesses. And stocks likes these might make incredible long-term investments...
But for big, fast trades, these "blue chips" won't work... Even if they do exceptionally well one or two years out, the trader might, at best – at very best with the best timing – stand to double his money over a few years. On the other hand, penny stocks are tiny companies, and small improvements in their business or in their market can result in huge gains in the company's profits and stock price.
The second reason is equally important. Bargains don't often exist with big stocks because PhDs and MBAs and Wall Street analysts pick over them every single day. So you usually don't get the market "inefficiencies" that you get in the small-cap markets...
You see, big-money institutions – fund managers, hedge funds, pension funds, insurance funds – can't buy penny stocks. They're too small. So analysts don't look at penny stocks. They don't publish research on them. That makes the market inefficient. And as a small investor, you can take advantage of these inefficiencies, essentially finding bargains.
Finally, as you can see from the table above, in bull markets, penny stocks rise faster than any other stock market class. So you get the most performance out of limited capital.
The S&P 500 has risen 42% since March 6. The Russell 2000, an index of small-cap stocks, is up 55% over the same period. If this rally marks the beginning of a new bull market – which many smart analysts I follow think it does – then penny stocks will be the best place in the world to put your money over the next few years...
Good investing,
Tom
P.S. I've recently launched a penny stock trading service with DailyWealtheditor in chief Brian Hunt. We're helping our readers capture the huge moves we're seeing in the penny stock markets right now. We've already scored two doubles... and 11 of our 13 picks are winners. To learn more aboutPenny Trends – and how DailyWealth readers can claim a 55% discount –click here.
Old-time market pros regard the 1973 to 1974 bear market as the most savage bear market since the Great Depression... and the bear market that most closely resembles the bear market of 2008.
Check out how this group of stocks performed once the 1974 bear market ended...
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Last year, we experienced the worst stock-market panic anyone under the age of 80 has ever seen. By March 2009, the S&P 500 was down 58% from its high.
So I figured, if a new bull market was coming, this one sector would be the place for the largest gains in the stock market. The sector I'm referring to is penny stocks...
On Wall Street, brokers and analysts judge the size of a company by its "market cap." Generally speaking, brokers call any company with a market cap less than $1 billion a "small-cap stock" and any company with a market cap less than $250 million a "micro-cap stock." In the past, these small-cap stocks often traded for less than a dollar per share, so you also might hear them called "penny stocks," even though very few stocks actually trade for pennies.
If you're serious about making a fast fortune in the stock market, you should only ever buy these penny stocks...
Firstly, you're never going to make outrageous gains in a short amount of time trading large-capitalization stocks. Take Coca-Cola or McDonald's, for example. These are large-cap stocks. They're mature businesses. And stocks likes these might make incredible long-term investments...
But for big, fast trades, these "blue chips" won't work... Even if they do exceptionally well one or two years out, the trader might, at best – at very best with the best timing – stand to double his money over a few years. On the other hand, penny stocks are tiny companies, and small improvements in their business or in their market can result in huge gains in the company's profits and stock price.
The second reason is equally important. Bargains don't often exist with big stocks because PhDs and MBAs and Wall Street analysts pick over them every single day. So you usually don't get the market "inefficiencies" that you get in the small-cap markets...
You see, big-money institutions – fund managers, hedge funds, pension funds, insurance funds – can't buy penny stocks. They're too small. So analysts don't look at penny stocks. They don't publish research on them. That makes the market inefficient. And as a small investor, you can take advantage of these inefficiencies, essentially finding bargains.
Finally, as you can see from the table above, in bull markets, penny stocks rise faster than any other stock market class. So you get the most performance out of limited capital.
The S&P 500 has risen 42% since March 6. The Russell 2000, an index of small-cap stocks, is up 55% over the same period. If this rally marks the beginning of a new bull market – which many smart analysts I follow think it does – then penny stocks will be the best place in the world to put your money over the next few years...
Good investing,
Tom
P.S. I've recently launched a penny stock trading service with DailyWealtheditor in chief Brian Hunt. We're helping our readers capture the huge moves we're seeing in the penny stock markets right now. We've already scored two doubles... and 11 of our 13 picks are winners. To learn more aboutPenny Trends – and how DailyWealth readers can claim a 55% discount –click here.
NEW HIGHS OF NOTE LAST WEEK
MFA Financial (MFA)... mortgage REIT
Hatteras Financial (HTS)... mortgage REIT
Anworth Mortgage (ANH)... mortgage REIT
Capstone Mortgage (CMO)... mortgage REIT
Texas Roadhouse (TXRH)... restaurants
P.F. Chang's China Bistro (PFCB)... restaurants
NuStar Energy (NS)... pipelines
Williams Pipeline (WMZ)... pipelines
Coeur d'Alene (CDE)... gold & silver
IAMGOLD (AU)... gold stock
AngloGold (AG)... gold stock
Gold Fields (GFI)... gold stock
Randgold (GOLD)... gold stock
Seabridge Gold (SA)... gold stock
KongZhong (KONG)... Chinese media
Netease (NTES)... Chinese video games
Changyou (CYOU)... Chinese video games
Shanda Interactive (SNDA)... Chinese video games
Caribou Coffee (CBOU)... coffee
Diedrich Coffee (DDRX)... coffee
Green Mountain Coffee (GMCR)... coffee
NEW LOWS OF NOTE LAST WEEK
Cattle ETF (COW)... a downtrend in beef