Author Archive: Michael Foster

Today I’m going to show you why this market isn’t as spooked as you might think. Then I’m going to reveal the 1 sector (and 1 fund boasting an incredible 8.7% dividend yield) that’s a screaming bargain now.

Let’s start with the state of play as I write this.

Here’s a question: of the 11 sectors that make up the S&P 500, how many do you think are negative for 2018?

If you said more than 5, the pessimism of the financial press has tainted your worldview. Take a look at this table:

5 in the Red, 5 in the Green

A close look at the 11 sectors of the S&P 500 is crucial, because we quickly see that 5 sectors are green, 5 are down and 1 is flat for 2018.… Read more

Remember two months ago? The S&P 500 was hitting record highs daily—and stocks were looking at a hefty 9% gain on the year.

It feels like a dream! Because here’s where we are today:

Poof!

Now we find ourselves down 10% from those highs and staring down the real possibility of a negative year for stocks.

We’ve Been Here Before

If this has left you feeling a little shaken, you’re far from alone.

My take? Tough as it is, resist the gut-driven urge to sell, because this is a buying opportunity. (I’ve got 2 dirt-cheap funds throwing off 7%+ dividends that are perfect buys for the coming rebound.… Read more

There’s a rare opportunity bubbling up in an obscure corner of the market, and we need to act now, because with a quick hand, we can snag 5.9% tax-free dividends in 2019 and double-digit upside—in just 3 quick buys.

I’ll reveal the names of these 3 surprising investments in a moment.

But for now, I’ll tell you that this time-limited shot at income and gains comes from the municipal-bond market—and specifically a shift in the interest-rate picture that “muni” investors have completely missed. But that won’t last.

Let me explain.

As everyone knows, 2018 has been a year of constant rate hikes.… Read more

Monday’s major jump in stocks is the beginning of a trend that will catch a lot of investors by surprise: fundamental strength thanks to trade war fears abating.

We aren’t out of the woods yet, as Tuesday showed us. While the market cheered the tentative cease-fire between Xi and Trump on Monday, the lack of details and confusion hit the market on Tuesday.

And that’s a good thing, because it’s set up investors for an opportunity to buy equities cheap before the relief rally around the corner.

Trade Ceasefire Opens Buy Window …

The way I see it, the trade-war ceasefire is likely the beginning of a deal coming down the pipe in the next three months.… Read more

Ignore the doomsayers: 2019 is setting up to be a strong year for equities—and a great year for dividend investors like us.

I know this might surprise you, so let’s break it down. Further on I’ll give you 5 funds (with dividends up to 11.5%!) that are flashing buy signals you can’t afford to ignore.

So why am I so bullish on the year ahead?

Thanks to the record-breaking profit growth we’ve seen in 2018, along with continued steady gains in employment and wages, there’s little reason to believe next year will bring the big downturn everyone’s worrying about. Instead, the Fed’s prudent scaling back of interest-rate hikes should fuel more growth.… Read more

Are you looking for the 1 perfect buy for big upside and huge (I’m talking 9.5% here) dividends?

Near the end of this article, I’ll show you 1 fund that will let you nail down both. This opportunity comes from a shift in the market that’s been so quiet, almost no one has picked up on it—except for one group.

Enter the “Smart Money”

You’ve probably heard the phrase “smart money”.

It’s really just shorthand for active managers, like those at the big hedge funds, investment banks and other massive institutions, who make billion-dollar bets based on massive troves of information and experience.… Read more

Since launching my CEF Insider service in early 2018, the picks I’ve given subscribers have outperformed the broader CEF market. That’s prompted a lot of people to ask me how I choose the CEFs I do—especially in a market as wild as the one we’ve seen in the last couple months.

My process is both complicated and straightforward. I have a checklist of 52 points I go through to choose the right fund. I apply these one by one, first using some of the broader points to screen funds, then zooming in closer, using more complex analysis to bring you my very best buys.… Read more

If these whipsawing oil markets are making you dizzy, you’re far from alone.

But this isn’t the time for worry—it’s time to tap oil’s woes for 7%+ dividends and upside!

And, as you’ve probably guessed, I’ve got the perfect funds all lined up for you—3 of them, to be precise. One of these contrarian buys yields 10.4%! And each of these 3 expertly run bargains also gives you some much-needed downside protection, too.

But before we get to them, let’s talk about what’s actually going on with crude these days.

You probably noticed that oil was on a roll from the middle of 2017 until a few weeks ago, when it plunged back to earth.… Read more

Do you remember the biggest threat to the stock market in the summer of 2017?

Let me refresh your memory: a nuclear war with North Korea.

It was barely a year ago, but financial pundits and so-called experts were screaming from the rooftops about volatility spiking with the risk of a nuclear war. Here’s what actually happened as Armageddon fears fizzled:

Market Tunes Out Pundits’ Panic

So much for heightened fears! In fact, despite unusually large spikes in volatility earlier this year, as a whole, this measure of market fears has been on a steady decline.

Oh, and those spikes in volatility you see earlier this year were because of a new risk du jour.… Read more

If you’ve been told it’s impossible to outperform low-cost index funds because the market’s too efficient, you’ve been lied to.

The truth is, there many funds out there that have been beating the broader stock market for years. And here’s something really surprising: there are more funds pulling off this feat now than there have been in a long time!

In fact, across ETFs, mutual funds, and closed-end funds (CEFs), there are 7,643 funds that have beaten the S&P 500’s 7.62% return over the past year.

So much for not beating the market!

Besides the fact that not choosing the low-fee passive fund will get you superior returns, you might be also be surprised by one other fact I just threw out there: a 7.62% return for stocks in general over the past year.… Read more