Investing
Small-cap stocks haven’t been this cheap in decades. This valuation advantage gets interesting when we add big fat dividends and today, we’ll discuss five cheap small caps yielding between 8.3% and 17.1%. (That’s no typo by the way—we only talk serious dividends here at Contrarian Outlook!) The Apples, Google and Microsofts of the world are priced like luxury goods. Smaller stocks, meanwhile, have been left at the discount rack. Let’s shop: S&P 500: 21.2 times earnings (pricey!) S&P MidCap 400: 15.4 times (better…) S&P SmallCap 600: 14.7 times (bingo!) The valuation spread between the S&P 500 and S&P 600 hasn’t…
In trading on Tuesday, shares of Northrop Grumman crossed below their 200 day moving average of $492.68, changing hands as low as $462.41 per share. Northrop Grumman shares are currently trading off about 11.8% on the day. 10 Stocks Crossing Below Their 200 Day Moving Average » The chart below shows the one year performance of NOC shares, versus its 200 day moving average: Looking at the chart above, NOC’s low point in its 52 week range is $418.60 per share, with $555.5657 as the 52 week high point — that compares with a last trade of $471.97. The NOC…
It’s as predictable as night following day: Stock markets crash, and we almost immediately hear more about the so-called “60/40” investing rule as a way for investors to protect themselves. Don’t fall for this overdone “rule of thumb” (which, as the name says, recommends putting 60% of your portfolio into stocks and 40% into bonds). Today we’re going to look at a much better way—one that pays you 9.7% dividends and delivers far better performance, too. 2025 Is 2022 Redux for the 60/40 Investing Rule Crowd Today’s setup reminds me of what I heard near the end of 2022, when…
TL;DR: As cannabis becomes a regulated global commodity—spanning pharma, exports and healthcare—the U.S. risks falling behind. While other regions advance structured markets, federal inaction and investor hesitation threaten America’s role in the industry it once led. Call it what you want—emerging, evolving, exploding—the global cannabis market is no longer a curiosity. With more than 100 countries adopting some form of legalization and cross-border shipments rising each quarter, cannabis is becoming a regulated international commodity. New projections from Whitney Economics estimate that the total addressable market for medical and adult-use cannabis could reach €429 billion (~$483 billion), with upside to €448…
Key News Asian equities were mixed overnight despite the US dollar’s weakness, led higher by Mainland China, India and Singapore, while Japan, Taiwan, and Thailand closed lower and Australia and Hong Kong remained closed for Easter. Over the weekend, the People’s Bank of China (PBOC) left the 1- and 5-year Loan Prime Rates (LPRs) unchanged at 3.10% and 3.60%, respectively. The latter is the reference rate for mortgages. Going into the morning’s trading, Friday’s State Council announcement on stabilizing the stock market and real estate industry was front-page news, as it is rare for the highest echelon of China’s government…
Traditionally, large stocks were considered more international, and small stocks more domestic. At a time of trade hostilities, you’d think that small stocks would be doing well. Alas, not. This year through April 18, big stocks (as measured by the Standard & Poor’s 500 Total Return Index) are down 9.8%, while small ones (gauged by the Russell 2000 Index) have fallen 15.3%. This is partly because the small fry are more volatile, and partly because in times of stress, people flee to the relative safety of big stocks. Nonetheless, small stocks have advantages. They are less combed over by Wall…
The Federal Open Market Committee is not expected to adjust short-term interest rates on May 7. Fixed income markets project that a cut in interest rates is unlikely, expecting rates to remain at the current 4.25% to 4.5% range according to the CME FedWatch Tool. Similarly projection markets Kalshi and Polymarket give roughly a 9 in 10 chance that rates are held steady. However, a cut in June appears probable. Recent speeches from FOMC officials in May have signaled that it may be too early to cut interest rates in the context of high economic uncertainty and ahead of economic…
I’m an optimist, and I invest accordingly—for the long term. But I’ve learned that staying optimistic doesn’t mean ignoring macroeconomic headwinds. One to note in particular is the weakening of the U.S. dollar. Not just as a matter of technical FX movement, but as a signal of political ambition, shifting global sentiment, and increasing systemic risk. So far in 2025, the dollar has slid more than 8 percent against a basket of major currencies—the worst start to a year in the ICE U.S. Dollar Index’s four-decade history. The Index is flashing red, not just from macroeconomic drift, but from something…
On one front, this tariff pandemonium changes nothing for us: We still see our favorite high-yield investments—8%+ paying closed-end funds (CEFs)—as the best choice to anchor your retirement portfolio. In fact, times like this add to their appeal even more. That’s because, in a crash, we CEF investors don’t have to sell a single unit of our funds to get the cash we need to fund our lives. Our big dividends—many of which roll in monthly—take care of our needs for us. Then there’s CEFs’ discounts to net asset value (NAV, or the value of their underlying portfolios). This unique-to-CEF…
Worried about the trade war and your retirement portfolio? Then I have two words for you: monthly dividends. Today we’ll fawn over four monthly payers that yield up to 17.4% annually. That’s no typo. Hop in my favorite income vehicle and we’ll motor over this market carnage together. The current market environment is nearly perfect for contrarians like us. How is that possible with tariff policy still, ahem, unfolding? Well the market is still full of fear and the weak hands have washed out. If you’re worried that the fear is justified because we are heading for a recession, let’s…
Wall Street traders are enjoying the stock market’s trend-less turmoil. Everyone else, not so much. The ever-changing news reports whirl stock market outlooks about, thereby keeping investors unsure and concerned. Beneath the stock market volatility are multiple uncertainties. U.S. stock market uncertainty Beyond “normal” risks, conditions are unstable due to disruptive, human-caused actions. The widespread, abnormal shifts are undermining investors’ understanding and expectations. Thus, the stock market tosses about, producing confusion, worry and contradictory advice. U.S. economy uncertainty Among those willing to undertake an economic outlook, there is little agreement. Some say there are no signs of a recession, some…
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