The 3 stocks that yield more than 8 percent

The 3 stocks that yield more than 8 percent



Here is an interesting CNBC article about three stocks that are yielding more than 8% annually.  One of the companies, Kinder Morgan (KMI) is the largest pipelines company in America, and I believe their 8% dividend is solid because oil and natural gas have to be transported no matter what the underlying commodity price is.  Eventually, I believe KMI will have a higher stock price as well although that will diminish the percentage of the dividend at that point.  However, buying KMI today will mean that you locked in that 8% on the money amount that you spent on the stock even if the price goes higher as long as the dividend stays the same.

 

CHART: Here’s why investors should be on ‘high alert’ right now | The Crux

CHART: Here’s why investors should be on ‘high alert’ right now | The Crux



This is an outstanding article and chart about the correlation of high-yield bonds and stocks.  When these risky bonds start declining, a stock market correction or a bear market is probably just around the corner.  We need to get an exit strategy ready now before things become worse.

Morgan Stanley: Get Ready for a Period of Low Returns in the Market - Yahoo Finance

Morgan Stanley: Get Ready for a Period of Low Returns in the Market - Yahoo Finance



This is a great article about how stock market returns will probably fall to less than 4% in the coming year.  The super growth days are over.  The best strategy is to load up on dependable dividend stocks that will beat the general market.  I own PFF and T which both pay more than 5% in dividends.  I also own AMZN, FB, and GOOG because I believe internet stocks will continue to beat most stocks.

Stocks Worth Holding

As long as the economy is doing okay, popular stocks are worth holding as long as their ROE is 12% or better.  Ycharts.com is a good place to look for ROE on various stocks.  The link above shows that Starbucks is a great stock to hold.  If you want to check another stock's rating while you are there, enter the next ticker symbol like NKE in the "Switch To" box at the web page upper right, and enter.  I recommend SBUX, NKE, AMZN, GOOG, FB, and RTN.

Of course, if a stock is languishing below its 200 day average, a good ROE may be history.  Don't buy a stock until it is above its 200 day average.  Preferably, the 50 day line should also cross over the 200 day line in a well-known golden cross which usually leads to profit.
 

Junk Bond Market Forecasts A Looming Stock Market Crash | Seeking Alpha

Junk Bond Market Forecasts A Looming Stock Market Crash | Seeking Alpha



Here is an outstanding article which predicts a stock market crash or large correction in the next few months.  The correction probably would have already started except that we are currently going through the strongest months of the year for the stock market.  After Christmas and the start of 2016 coupled with a Federal Reserve interest rate increase, the market will most likely go down.  If the economy holds up, though, it will probably just be a correction.

 

Red Clover Benefits & Information (Trifolium Pratense)

Red Clover Benefits & Information (Trifolium Pratense)



As I occasionally do, I will talk about subjects other than the stock market.  The above link is for an excellent article about the benefits of Red Clover.  I prefer the liquid extract from Herb Pharm as the easiest way to get a good dose of Red Clover.  It can easily be added to juice to drink it, and it can also be applied to skin lesions with a cotton swab.



Red Clover improves blood circulation, helps prevent bone loss, and it aids in male and female problems that occur in the 50s and beyond.  It lowers bad cholesterol and raises HDL.  So, this herb is definitely worthwhile to take on a daily basis.

A Stock Market Warning Signal Just Flashed Red | Seeking Alpha

A Stock Market Warning Signal Just Flashed Red | Seeking Alpha



Here is a great article about the stock market decline.  I have been making money on TVIX and SQQQ which both go up when the market goes down.  The NYSE MacClellan Oscillator is at -64 which indicates an oversold market, but we could go lower over the next few days.  When $NYMO gets to -80 or lower, it will be time to buy because the big boys will not kill the golden goose stock market.  I plan to buy AMZN and TQQQ near the market bottom because there will probably be a rally back to almost 18,000 on the Dow at some point.

 

5 companies grab 70% of your online dollars

5 companies grab 70% of your online dollars



The internet will continue to grow by leaps and bounds.  This is why we need to be invested in companies that are making money on the internet like Amazon, Google, and Facebook.  Buying just one share of Amazon before they reported earnings would have gained you $100.  I know it is hard to buy expensive companies, but that is where the gains are.

Dot-com bubble 2.0: The cloud build-up

Dot-com bubble 2.0: The cloud build-up



Here is a fantastic article on why the new dot.com businesses will not fail like the ones in 2000.  The computer and internet boom of the 90s was built on one-time purchases, and computer software and hardware became so dependable that people did not need to upgrade constantly after 2000.  Hence, Intel and others fell unexpectedly.



Now that many companies are cloud-based, we are not in an era of one-time expenses.  Instead, we have companies built on recurring revenue.  Amazon just had its 2nd consecutive profitable quarter.  Cloud revenue is the same for Facebook, Google, and Netflix.  So, the new dot.com era is built on a stronger foundation than the first one.



  

Monthly Trading Trends

The signs of an old bull market are when we struggle to make just a 10% gain each year on the S&P 500.  I believe we could be in this low gain region for the next two or three years.  However, there are ways to amplify your gains if you are willing to be a nimble trader.  If you will look at the chart of $NYMO below, you will see monthly stock market trends that will last for several days whether the trends are up or down.

You could also watch the MACD graph for verification that a trend change is taking place.  If the market is going down, you could buy SQQQ, the Nasdaq triple short.  If the market is going up, you could buy TQQQ, the Nasdaq triple long.  Just be sure to sell and book your profits before the trend changes again.