Trading Ideas

Jack Bogle introduced index funds – a major financial innovation – in 1976.
Today, Nicholas Vardy explains why they are still one of the most innovative and impactful tools for investors, along with one of the easiest ways to earn money.

Jack Bogle – the founder of Vanguard and the father of index funds – passed away in January 2019.
He introduced the first index mutual fund back in 1976. This bit of clever financial engineering allowed the small investor to take a stake in the entire stock market at a minimal cost.
At first, Wall Street mocked Bogle and his newfangled index funds.
He …read more […]

Money rules the world. From Fortune 500 companies to the dollar bills in your wallet, money is what makes the world go ‘round. Although, many people lack a basic understanding of money. That’s why we put together this list of basic accounting terms and concepts.
After reading through these terms, you’ll have a better understanding of the money world. Whether it’s to understand your bank statements or to help you get involved in the business world, these basic accounting terms will help you get a foot or two in the door.

Accounting – Accounting is a process of recording, summarizing, and communicating …read more […]

In past Trade of the Day issues, we’ve discussed the tactical trading strategy of playing market volatility – and, more recently, oil market volatility – by using two different exchange plays:

Cboe Global Markets
Intercontinental Exchange.

For today, I’d like to add one additional name to this list: Nasdaq Inc. (Nasdaq: NDAQ).
As I’m sure you can guess, Nasdaq Inc. is the operator of the Nasdaq stock market, which is part of a so-called “comfortable oligopoly” among exchange-related plays.
Nasdaq Inc.’s trading revenues are tied to trading volumes, so periods of increased trading frequency lead to more transaction volume gains. Just like Cboe Global Markets …read more […]

Whenever I write about how investing in bond funds is a losing strategy, I always receive emails asking, “What about closed-end bond funds?” My answer is an admittedly unsatisfying “it depends.”
For those who are unfamiliar with closed-end funds, here’s a brief primer…
A closed-end fund is like a mutual fund, except it trades very differently.
A mutual fund trades only at its net asset value (NAV) at the end of the day.
So if a mutual fund has $100 million in assets and 10 million shares outstanding, it will trade for $10 per share. If the next day its assets climb to $105 …read more […]

Massachusetts marijuana vape sales have taken a dramatic dive amid national vape-related health concerns. And Juul, the company that holds nearly 75% of electronic cigarette market share, is reacting in a way that reminds us an awful lot of the tobacco industry.
Weekly sales of oil-filled vape cartridges dropped from a recent peak of $919,776 in mid-August to $689,924 two weeks ago, according to the Massachusetts Cannabis Control Commission. Sales on September 15 were $68,609 – the lowest in two months.
The decline happened despite four new pot retailers and two medical marijuana dispensaries opening during the same period – and despite …read more […]

For weeks we’ve been covering the national “vaping crisis.”
And it just continues to gain steam.
The Centers for Disease Control and Prevention announced that the number of victims from the vaping-related illness is now over 530. Unfortunately, it has also claimed its eighth victim – a Missouri man in his 40s.
In response to the growing epidemic, the Food and Drug Administration launched a criminal probe last week. The agency has collected more than 150 samples for forensic analysis. Though the majority of illnesses appear to come from THC vape pens.
Meanwhile, two states – New York and Michigan – have banned all …read more […]

Research has proven that if you want to grow your wealth, you need to own stocks. So why don’t more Americans invest in the stock market?
Today, Alexander Green explains the three main reasons and helps investors move past them.

In my conversation with Bill O’Reilly last week on his No Spin News, we talked about solving the issue of economic inequality in America.
A significant reason for the gulf between the wealthy in this country and everyone else is stock ownership.
Studies show that roughly half of Americans own no stocks, either directly or through mutual funds and ETFs.
On the other hand, according …read more […]

Getting a business venture up and running is no small feat. And while there are many logistical challenges to starting a business, one of the largest is securing capital. There are no shortage of ways to raise startup capital, but sometimes the traditional avenues aren’t the best routes. In fact, more startups are turning to equity crowdfunding as a new-age way to get their venture off the ground.
What is Equity Crowdfunding?
Like you might throw a few bucks at a Kickstarter project and get a reward, equity crowdfunding is the same concept on a larger (and smaller) scale.
In a macro sense, …read more […]

It’s time for us to talk about WeWork. As you may have heard, WeWork’s IPO is in a bit of trouble. This week, it officially postponed its IPO (MarketWatch). But WeWork insists that the IPO will take place this year. That’s because WeWork needs to IPO in 2019 in order to access a $6 billion credit facility that expires at the end of the year (CNBC).
Investors are more than willing to invest in companies going public. Beyond Meat, Zoom and CrowdStrike did extremely well. Cloudflare and Chewy did well too. So WeWork can’t blame “the environment” for the poor response …read more […]

I’m running out of patience with the Securities and Exchange Commission (SEC). And you should be too.
The SEC has been refusing to approve a bitcoin exchange-traded fund (ETF) for years because it fears the bitcoin market can be manipulated. And VanEck, a highly respected investment firm that has created dozens of ETFs already regulated by the SEC, just withdrew its very good bitcoin ETF proposal because it became clear the SEC isn’t ready to approve it.
The fear is nonsensical. Every market can be, and is, manipulated on some level.
You want proof? Look no further than this week’s news that the …read more […]

Some politicians want to vilify the wealthy, blaming their success for others’ misfortune.
Today, Alexander Green explains why this is a fallacy and how wealth building is possible for all Americans if they take responsibility for their financial well-being.

Bestselling author and cable news superstar Bill O’Reilly – a longtime subscriber and, more recently, generous friend and supporter of my work – had me on his webcast Tuesday to talk about a subject of mutual interest: economic inequality.

(Click here to watch our interview.)During our conversation, Bill pointed out that Senators Bernie Sanders and Elizabeth Warren actively promote the idea that people who …read more […]

When it comes to investing, many people focus solely on the U.S. stock market. But there are plenty of market-busting trends out there.
Today, Nicholas Vardy identifies four trends and how you can apply them to your ETF trading system.

If you’re like most investors, you think only of buying U.S. stocks when you think about investing.
You may focus on the latest hot sector – whether it’s pot stocks or artificial intelligence – or just high-dividend stocks that pay you a steady income.
After all, U.S. stocks have been a terrific place to make money.
The U.S. stock market has trounced almost every other …read more […]

What do the following have in common?

Food replicators
Asteroid mining
Robotic janitors
Full-diagnostic wearables (like taking a physical every day)
“Fountain of youth” pills
Passenger drones

Some may say they’re all audacious ideas. Some may say use is far off. Others may say widespread use will never materialize.
The more cynical and less hopeful might say they’re all a joke, something an investor should not take seriously.
I like that last answer: Something not to be taken seriously. But I don’t use it the way you might think – to avoid all this frivolous stuff. Quite the opposite.
We’re all guilty of falling into the trap of assuming some …read more […]

MPLX (NYSE: MPLX) is a master limited partnership (MLP) formed by Marathon Petroleum Corp. (NYSE: MPC). Like many MLPs, its main business is operating oil and gas pipelines.
The stock yields a juicy 9% based on the last dividend (it has raised its dividend for the past 10 quarters and every year since it started paying one in 2012).
Can the company continue to pay that healthy of a dividend yield?
Last year, cash available for distribution (CAD), a measure of cash flow for MLPs, was $2.78 billion. It has been climbing steadily over the years, and in 2019, it is expected to …read more […]

Income investors seek a steady stream of dividends. Altria’s dividend history is long and steady, but it could now be in jeopardy. With the FDA responding to vaping related fatalities, Altria’s stock has been beaten down. Let’s take a look at the business, dividend history, and payout safety going forward.
Business Overview and Highlights
Altria (NYSE: MO) is a $77 billion business. The company is based out of Richmond, Virginia and it employs 8,300 thousand people. Last year Altria pulled in $20 billion in sales and that works out to $2.4 million per employee.
The company operates within the consumer sector and maintains …read more […]