Author Archive: Brett Owens

If you think you’re too late to profit from e-commerce bonanza, think again.

Because even though the first web-based purchase was made more than 20 years ago, online shopping is still growing at a breathtaking pace, with a 15% expansion in 2015 alone.

But despite that fast growth, web-based purchases only made up 7.4% of total US retail sales in the third quarter, according to the Census Bureau, so the trend has plenty of room to run yet.

Of Picks, Shovels and Clicks

When most people think of e-commerce, the first name that leaps to mind is Amazon.com (AMZN). There’s good reason for that: according to Macquarie Research, the retail giant accounted for more than half of all e-commerce growth last year.… Read more

If the market’s winter of discontent has a silver lining, it’s this: dividend yields have lurched skyward, while value measures such as price-to-earnings ratios have sunk.

Translation: now’s the time to snap up top-notch dividend-payers at fire sale prices.

But there’s a common mistake you must avoid at times like this: simply seeking out stocks with high yields and low P/E’s and thinking your job is done. That’s because many of these companies are “yield traps”: their earnings and cash flow can’t back up their hefty payouts.

When the inevitable dividend cut comes—dragging the share price down with it—these investors will be left holding a very empty bag.… Read more

Top-20 hedge fund Pershing Square Capital Management just announced heavy losses last year, and a tough start to 2016. The fund is currently down a little over 11 percent YTD in 2016, after losing 20.5 percent in 2015.

The problem, CEO Bill Ackman explains: “We believe that our continued negative outperformance in the first few weeks of the year relates primarily to forced selling of our holdings by investors whose stakes overlap with our own.”

I’m guessing that’s his way of admitting his market timing hasn’t been the best of late. And his short-term focus is hurting the timing of at least one company he’s currently involved with.… Read more

With the S&P 500 down nearly 7% in the last three weeks alone, you can’t be blamed for wanting to throw up your hands and sell all your stocks.

But that’s the worst thing you could do, especially if you have a long time horizon and you mainly hold dividend-paying US companies. In fact, if you’re in this camp, you can largely ignore the market’s daily gyrations. And really, you should take advantage of them.

The numbers tell the tale: according to Ned Davis Research, dividend-paying stocks returned an average of 9.3% a year from 1972 through 2014, compared to 2.6% for non-dividend payers—and they did so with less volatility.… Read more

There’s a new bond king in town – and he’s warning investors about a high yield darling that’s really a backdoor energy trap.

Barron’s swapped out Bill Gross for Doubleline Capital founder Jeffrey Gundlach in its 2016 Roundtable. The publication says that Gross decided to resign his post. Whatever the case, it’s a good trade as Gundlach has had better calls and performance for years. Long live the new bond king!

His magistrate is currently warning investors about unexpected “collateral damage” from $30 oil. His warnings will sound familiar to regular readers, as we’ve already called out big oil as a big dividend trap, and picked on MLPs with unsustainable payouts.… Read more