Stocks are climbing a wall of worry, which is a hallmark of bull markets. Higher equity prices really do require fear. Here, we’ll highlight the least-liked stocks on Wall Street. Why? Because each analyst has nothing to do but upgrade these plays from here. As always, we’ll focus on big dividends—I’m talking about yields starting at 6% and going all the way up to 24%. While retail investors are fearful, analysts at large are quite bullish. At least on paper. Professional stock analysts are optimistic by default. They know exactly who butters their bread, so it’s hard to make a…

Warren Buffett released his 2024 annual shareholder letter on Saturday, drawing the immediate attention of investors and business leaders worldwide. As stakeholders parsed the document for insights into Berkshire Hathaway’s condition, they were rewarded with the wisdom that has made Buffett a legendary figure in finance. This marks the 60th year of Berkshire under his leadership, with the conglomerate’s market cap now exceeding $1.1 trillion. While its unprecedented success is evident, the intellectual architects who shaped Buffett’s investment philosophy deserve recognition for their contributions to this remarkable legacy. Benjamin Graham: Establishing the Value Framework Benjamin Graham, widely regarded as the…

Key News Asian equities were largely lower despite a weaker U.S. dollar overnight, as Japan outperformed and India underperformed. Hong Kong-listed growth stocks were hit with profit-taking, triggered by President Donald Trump’s last Friday night release stating “The Committee on Foreign Investment in the United States (CFIUS) will be used to restrict Chinese investments in strategic U.S. sectors like technology, critical infrastructure, healthcare, agriculture, energy, raw materials, and others.” China’s corporate investment in the U.S. has gone basically to zero, so restricting zero means zero, as the tough language has little bite. Ironically, the China-based health care companies that have…

Too often, dividend investors just assume that companies have the cash flows needed pay their dividends. Did you know: companies can grow their reported earnings while cash flows are negative. most companies overstate their reported earnings. lots of companies have to borrow money, issue stock, or dip into cash reserves to pay dividends. The only way to know that a company can afford to pay its dividends is to measure its free cash flow (FCF). FCF must be equal to or greater than its dividend; otherwise, the company must raise capital or use cash reserves to pay its dividend. Or…the…

The U.S. economy is at a crossroads in early 2025, with tensions simmering between the Federal Reserve and the newly minted Trump Administration. Fresh tariffs on Canada, Mexico, and China, tightened immigration policies, and an unexpected wildcard—Elon Musk’s call to audit the Fed—are muddying the waters for monetary policy. With a potential inflation resurgence looming, the Fed is poised to continue its pause on interest rate cuts, waiting for clarity on how these bold moves will play out. Here’s what this standoff means for the economy—and your wallet. A Robust Economy Meets New Challenges The U.S. economy is humming along…

Investors in the German automotive industry can relax as Sunday’s general election produced a result unlikely to frighten the horses. The trouble is, anyone looking to find quick solutions to the industry’s long-term malaise will be disappointed. Problems likely to remain unresolved include chronic weakness in China, the threat of Chinese imports into Europe, and President Trump’s promised tariff war. Slack electric vehicle sales require subsidies from a government struggling for money. The overall market for sedans and SUVs also could use some stimulus. Don’t expect any. One bright spot might be a concession from the European Union that the…

Terry Johnson, the winner of my Derby of Economic Forecasting Talent (DEFT) for 2024, likes to count trucks. Specifically, he counts the number of big trucks – 18-wheelers and the like – on a 45-mile stretch between Lincoln and York, Nebraska. More trucks means the economy is doing well. Fewer trucks is an economic danger sign. “Last year I counted 329 trucks, by far the most I ever counted,” Johnson said. “Didn’t look like a recession in the near future to me.” Johnson, a retired sales rep for General Mills, beat out 43 other contestants to win the DEFT contest,…

B&M European Value Retail shares slumped on Monday as the embattled company slashed its profits guidance and announced the departure of its chief executive. At 268.5p per share, B&M shares were last 7.7% lower in start-of-week trading, making it the FTSE 250’s biggest daily faller. For the financial year ending March 2025, the discount retailer said it expects adjusted earnings before interest, tax, depreciation and amortization (EBITDA) to range between £605 million and £625 million. This is down from £629 million in fiscal 2024. B&M had narrowed its estimates to a range of £620 million to £650 million last month,…

The Federal Open Market Committee is not expected to change interest rates on March 19. That’s because the jobs market appears robust and inflation remains above target and accelerating slightly. The minutes from the FOMC’s last meeting in January stated that, “Respondents generally judged that policy rate reductions would occur later than previously assessed.” That implies any cuts may come later in 2025, if at all. In addition, Federal Reserve Chair Jerome Powell said, “If the economy remains strong and inflation does not continue to move sustainably toward 2 percent, we can maintain policy restraint for longer.” in Congressional testimony…

Inflation continues to creep higher. Meanwhile tariffs are here, and more are on the way. Vanilla investors are rattled. The AAII (American Association of Individual Investors) Investor Sentiment Survey reveals 47% bears and only 28% bulls, its highest level of despair in a year. Contrarians like us, meanwhile, are salivating. We like it when individual investors are down in the dumps. And it’s not just AAII members—CNN’s Fear and Greed Index has been floundering in fear territory for the last month: Inflation fears? Tariff worries? Bring ‘em on! Let’s talk inflation first. The basic spreadsheet jockeys are surprised—sad even—that the…