Category: INO.com Contributors

This Small Cap Stock Is Overdue For A Breakout Performance

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Certain stock sectors are great tools for measuring the health and state of the economy. Transportation is arguably the sector that says the most about it. When transportation companies are posting profits, that means more goods are being shipped and the economy is growing. And when those same companies are missing earnings, it means that fewer goods are being shipped and the economy is either stagnating or contracting.

So far this year, the Dow Jones Transportation Average doesn't reflect a strong and robust economy. It's fallen around 10% year-to-date and most transportation stocks have been bouncing around their 52-week lows for the past six months or so. However, that downward trend could be on the verge of entering a major reversal. Continue reading "This Small Cap Stock Is Overdue For A Breakout Performance" →

Why You Should Stay Away From REIT ETF's For Just A Little Longer

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


Last week the Federal Reserve once again announced they would not be raising interest rates. To many on Wall Street this was good news; cheap money would continue to be available, thus making it more affordable to borrow money to grow business's and spur economic activity.

But there is a downside to continued low interest rates which comes in the form of uncertainty about when rates will increase and how those increases will affect economic activity and mainly businesses that are directly affected by interest rates. When we look at who is most affected by rising rates, the finance sector is of course first to come to mind; banks and other lenders, but also the real-estate industry.

Whether it be individuals or businesses buying and selling homes or property rising interest means the overall cost of buying and owning that property increases, because of the higher interest rate the borrow will have to pay. Continue reading "Why You Should Stay Away From REIT ETF's For Just A Little Longer" →

1 ETF That Could Turn The Fear Of Cyber Attacks Into A Fortune

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


Over the last few weeks news about the Federal Government data hack has caused a lot of fear and worry from not only the over 4 million current and prior government employees, but all Americans. The thinking is that if hackers can break into the US government databases and retrieve very sensitive personal data on current and past employees, what can't they hack into?

Well it seems like the hackers can and have gained access to nearly whomever they want. Besides the recent hack of the US Government, other notable high-profile hacks over the past few years consist of JPMorgan Chase in 2014; Home Depot in 2014; Target in 2013; Visa and MasterCard in 2012 have all seen their computer systems broken into. In most of these cases banking, credit card and debit card information, was stolen. But, with the US Government hack, it appears all sorts of personal information such as names, addresses, social-security numbers and more were targeted. (With that information the hackers can do a lot more damage to an individual than just run up some credit card bills.)

This well-deserved fear has led many investors into wondering how they can turn this bad situation into an investment opportunity. One could start by buying shares of cyber security software firms like FireEye, Palo Alto Networks, and Frontinet, or by buying the hardware manufacturers like Cisco Systems or Juniper Networks. But with that strategy the issue is correcting picking the right company or companies that will benefit the most from the increasing demand for cyber security. Continue reading "1 ETF That Could Turn The Fear Of Cyber Attacks Into A Fortune" →

I'm Still Not Sold On A 2015 Rate Increase

Posted on by George Yacik

George Yacik - INO.com Contributor - Fed & Interest Rates


The consensus market opinion after last week's Federal Reserve monetary policy meeting is that the Fed will start to raise short-term interest rates sometime this year, maybe twice, beginning most likely at its September meeting.

I, for one, am still not sold that that will happen.

Last Wednesday's announcement following the Federal Open Market Committee meeting said not much of anything, especially when it came to signaling when it might finally begin interest rate lift-off. The statement gave the usual yadda yadda that economic activity "has been expanding moderately" and that "the pace of job gains picked up." But nothing about rates, other than the usual verbiage that the current federal funds target range of zero to 0.25% "remains appropriate."

Instead, analysts, journalists and investors were forced to look for clues in the "Fed dots," which show graphically where the 17 individual FOMC members expect interest rates to be by the end of this year, next year, 2017 and beyond. Continue reading "I'm Still Not Sold On A 2015 Rate Increase" →

Would You Invest In Saudi Arabia? How About Iran?

Posted on by Adam Feik

Adam Feik - INO.com Contributor - Energies


Saudi Arabia opened its $590 billion stock market to foreign investors Monday – a move aimed at helping the country’s companies endure a potentially extended period of lower oil prices.

Interestingly, only about one-fifth of the companies traded on the Tadawul Saudi Stock Exchange are directly in the oil business. But most others are, of course, heavily affected by oil, which has long been the major driver of Saudi Arabia’s economy.

By opening the exchange to all foreign investors, the Saudis hope to help its domestic companies raise significant capital, thereby helping to strengthen – and diversify – the country’s economy. The Kingdom may also be hoping some new foreign investment can help plug a hole in its budget, which has expanded to pay Saudi companies that rely on government contracts for construction, infrastructure, agriculture, education, and other areas. According to the Saudi Gazette on Sunday, the country’s breakeven crude oil price has risen from just under $75 in 2009 to about $90 today, translating into an estimated $38.6 billion budget deficit for fiscal year 2015. Continue reading "Would You Invest In Saudi Arabia? How About Iran?" →