| This could be a favorable climate for utilities. I am also overweight real estate investment trusts (REITs). Real estate has a low correlation to traditional equities, and property owners tend to have strong cash flow visibility. The prospect of cheaper borrowing costs sure doesn't hurt either. I've also been doubling down in the energy sector, which according to FactSet has the highest potential upside (19.9%) between current stock prices and consensus target prices. - Jim Fink, chief investment strategist, Options for Income, Velocity Trader, and Jim Fink's Inner Circle.
What's the difference between investing and trading? This quotation from Benjamin Graham, the father of value investing, sums up the difference: "In the short run the market is a voting machine. In the long run it's a weighing machine." Investing is a long-term proposition, where the value (i.e., the weight of discounted cash flows) of a stock eventually determines its price. By contrast, trading is a short-term activity, where supply and demand (i.e., the votes of buyers and sellers) determine a stock's current price. Successful traders use a plan and have the discipline to stick to it. The fact that some traders are billionaires suggests that short-term trading can be profitable if you do it right. - Scott Chan, lead analyst, Real World Investing and The Complete Investor.
Many analysts are sounding the alarm about China's so-called "debt bomb." Is this a threat to the world's second-largest economy and could it trigger a global financial crisis? Or are concerns about Chinese debt overwrought? Although we shouldn't just dismiss China's elevated debt level, I doubt China's debt will trigger anything close to the financial crisis of about 10 years ago. Unlike, say, America's debt, most of China's debt is owed to itself. China's foreign debt is only about 13% of GDP, very low by world standards. China also has a high domestic savings rate hovering near 50% of GDP, roughly twice the world average. In addition, unlike the U.S., China's one-party authoritarian government gives Beijing more control over its economy. - Jimmy Butts, chief investment strategist, Maximum Profit.
What are some tactics that individual investors can deploy to safely make money in the markets? From my perspective, it starts with three steps: performing due diligence, sticking to the fundamentals, and remaining wary of the herd mentality. I agree with those three principles. Everyone should do their own due diligence. There's no one-size-fits-all investment. You have to find what works for you. I see Maximum Profit as a tool to help investors wade through all the ticker symbols out there. I do provide analysis on each of the stocks that are recommended, but it's always wise to do your own research so you're comfortable with the investment and understand all the risks. Read This Story: "Bulletproof" Your Wealth If you can work your way through a company's fundamentals, you're already ahead of most investors. I came from the traditional side of investing that is value oriented. And Maximum Profit has a fundamental component to its algorithm. We call it Cash Flow Relative Strength, or CFRS for short. We want to make sure the system isn't flagging fly-by-night companies, and one of the best line items to help determine that in my opinion is cash flow. Cash flow is the life blood of any business. Unlike sales and earnings, it's much tougher to "massage" or fake. - Stephen Leeb, chief investment strategist, The Complete Investor and Real World Investing.
We're enjoying the longest bull market in history. How long can the good times last? The market won't win awards for technical beauty or captivating value - not with every measure of small-fry performance badly trailing big-cap gains. But give it its due for grittiness. This is a market that won't quit. And for that, give credit to those guys at the Fed who have done one of the fastest about-faces in market history. Back in the day - by which I mean earlier this year - the Fed seemed set to tighten and then tighten again. Now the question is how dovish is dovish. The trade war and its heavy weight on economic activity likely has scared the daylights out of the Fed. But whatever has motivated the Fed's change of heart, the market - while overdue for a correction - seems unlikely to do more than take a breather. And while the market isn't cheap, there still are plenty of cheap stocks. Editor's Note: I've just presented a "greatest hits" compendium of my recent interviews with our top strategists, but I've only scratched the surface of their capabilities. If you're looking for big gains with reduced risk, an analyst to consider right now is Amber Hestla. Amber is a financial expert but she's also a military veteran. Amber served with distinction in Operation Iraqi Freedom. While deployed overseas with military intelligence, she learned how to interpret disparate data to predict likely outcomes. Upon her return to civilian life, Amber honed this skill to find money-making opportunities. Want access to Amber's winning trades? Click here now to get started. | 
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