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Tech Creating More Overnight Millionaires Than Ever Before?

By for Investment Contrarians | Oct 7, 2016

Tech StocksA little-known niche of the tech market is making investors incredibly rich, often overnight…

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Yahoo!’s high-profile acquisition of Tumblr, which minted 30 instant millionaires.

Google’s acquisition of a tiny company called Divide for $120 million… instantly making another 23 millionaires.

And the Twitter takeover of ad tech firm MoPub for $350 million… a buyout that made 36 overnight millionaires.

According to Forbes, a major Internet company’s $10-billion buyout spree minted 450 new millionaires.

To see how you could achieve overnight millionaire status from what’s happening in this specific niche of the tech sector, see my live video update when you click here now…. Read More


Did You Give Thanks this Weekend for the Fed’s Easy Money Policy?

By for Investment Contrarians | Aug 6, 2014

021213_IC_leongStock Market Crash August 2014.

Reflecting on this past Thanksgiving weekend, there was a lot to be thankful for, especially if you have been long in the stock market for the past four years. Now is a time for reflection.

The advance in the stock market has been stellar following the bottom in March 2009. The S&P 500 is up 171% since March 6, 2009 for a four-year annualized gain of about 38%.

In Japan, the Nikkei 225 is at a six-year high and over in Germany, the benchmark DAX is also at a record high.

However, the records in the stock markets are falling, not just in good old America, but worldwide. Of course, there are the exceptions, such as China, which I still consider to be undervalued and worth a look for investors searching for growth in foreign stock markets. In China, you can play almost anything due to the country’s insatiable appetite for goods and services. Some of the top areas for growth in China are the technology, health care, travel, and financial services sectors.

Yet while all of the stock market records are being set, I wonder if this is simply the new reality for stocks, or are we just setting ourselves up for a massive hangover when stocks fall? stock market crash 2014.

The Russell 2000, for instance, is a play on the economy. The idea is that small companies tend to fare better when the economy recovers, as these companies tend to be more flexible. The index is up over 35% this year and more than 40% year-to-date. That’s a great advance, but the … Read More


Landmark Ruling in Mexico a Boon for These U.S. Oil Stocks?

By for Investment Contrarians | Dec 11, 2013

U.S. Oil StocksIn 1938, Mexico nationalized its oil industry, taking over all aspects from production to final distribution. This ban on ownership by foreign companies continues today; however, changes are underway.

Under the leadership of Mexico’s new president, there is a growing desire and need for the knowledge and technical skills developed by foreign companies, many of which are U.S.-based, to stem the decline in oil production and revive the industry in that country.

I think this will be a tremendous investment opportunity for oil stocks going forward. Mexico still has a tremendous amount of energy commodities under the ground, but many need advanced technology to extract them. And U.S.-based oil stocks are among the leaders in the world when it comes to extraction technology.

By allowing foreign-based companies to help develop projects, oil stocks would profit from having access to new reserves, and Mexico would benefit from having billions of dollars in funding and access to those with top-notch technical skills.

There are several different types of oil stocks that would benefit from this investment opportunity. One company that I’ve liked for some time is Halliburton Company (NYSE/HAL), a global leader in the oilfield service industry.

While Mexico has not yet changed its legislation and we don’t know which companies will obtain these oil rights at this time, Halliburton has been extensively offering its services in Mexico for a number of years. I think it’s highly likely that Halliburton would benefit from more work as this investment opportunity opens up.

When investing in oil stocks, one has to consider the company’s current level of production, future reserves, and potential for growth … Read More


Oil Prices to Reach $80/Barrel?

By for Investment Contrarians | Dec 11, 2013

Oil PricesOil prices are heading higher on the chart with the cash West Texas Intermediate (WTI) crude rallying back toward the $100.00 level after threatening to test $90.00.

Steady economic signs in the United States, China, and Japan—the three largest economies in the world—along with some muted growth in the eurozone and Europe are adding some spark to the oil futures… But hold on; doesn’t the buying seem somewhat premature?

I’d say so, as I believe oil prices may have limited upside unless something dramatic surfaces in the Middle East that impacts OPEC oil.

The Organization of the Petroleum Exporting Countries (OPEC) has also come out and said it would maintain its current daily production quota and not cut supply in order to add support to oil prices.

I doubt we will see $130.00-per-barrel oil prices anytime soon—unless, of course, tensions escalate in the Middle East and a war breaks out across a wider region that would impact the flow of OPEC oil. The current nuclear agreement in Iran has also added some stability to the region.

And the futures market for oil supports my view, too. A look at the oil futures actually shows expectations for oil prices should decline back towards $92.00 by the end of 2014, drop below $90.00 in 2015, and continue downward to $80.00 by 2018. The December 2022 futures contract points to $78.00-per-barrel oil.

The chart of WTI oil below shows the downward channel and recent breakout, which I doubt will have much holding power as it nears the $100.00 level.

Light Crude Oil Chart

Chart courtesy of www.StockCharts.com

Now while the prospects over the next eight years don’t … Read More


If You Are Thinking of Investing in Emerging Markets, Here’s What You Need to Know

By for Investment Contrarians | Dec 10, 2013

Investing in Emerging MarketsOne of the hottest investment strategy themes over the past few years has been to invest in emerging markets. For years, these markets were very attractive to investors, as these economies tended to have much higher growth rates when compared to growth in the developed countries.

However, this investment strategy is now beginning to look questionable, as it appears that growth rates are much lower than many had expected.

The latest look at emerging markets from a fundamental standpoint comes from Paul Polman, CEO of Unilever PLC (NYSE/UL).

Polman stated that he believes that economically, these markets will continue to remain quite slow for some time, as these nations now need significant structural changes following their boom years. (Source: Bloomberg, December 2, 2013.)

This type of information is certainly a negative for any long-term investment strategy in the emerging markets. Structural reforms do not happen overnight; here in America, it’s obvious how slow and difficult it is to make any real structural changes.

For many, the investment strategy in emerging markets appears enticing because it seems so exotic. But comments such as those from the CEO of Unilever should be an eye-opener to these investors. Unilever obtains most of its revenue from emerging markets, so the company can feel the pulse of what’s really happening on the ground in these markets.

Frankly speaking, this isn’t a surprise to me; in these pages, I’ve mentioned seeing several warning signs that have alerted me to the weakness in not only the domestic economy, but the emerging markets as well.

iShares MSCI Emerging Markets Chart

Chart courtesy of www.StockCharts.com

The three-year chart above shows the activity of the … Read More