As the 2025 New Year’s excitement ends, look for the U.S. stock market to falter. It is carrying a lopsided enthusiasm from 2024, so 2025 could be a period of adjustment. There are eight issues that have begun to undermine the stock market’s shaky support: First, the stock market rise has outstripped company earnings and other fundamentals (see graph at end of article) Second, the bond market is staging a capital market break from the Federal Reserve’s questionable attempt to cut all interest rates again Third, inflation’s flame is not extinguished, so watch for the seasonal first quarter relaunch of…

Although the major indexes have held up well late in the year, it’s possible to identify weak spots in the mix. The five stocks mentioned below (with price charts) have all recently shown weakness by dropping to below former price support levels — those spots where buyers had previously overcome sellers. 5 Stocks With Drops Below Former Price Support Resmed (NYSE: RMD) The stock chart seems to have developed a head-and-shoulders pattern, said by some analysts to signal lower prices. This seems to have developed as the price in December dropped to below the early October and mid-November lows, designated…

The Swiss luxury watch market is ending 2024 in a stark contrast. While the secondary market has weakened, the auction scene for high-value, unique, provenance-rich watches has experienced a resurgence. As the speculative frenzy of the pandemic fades, prices for many contemporary models have taken a sharp dive. In this shifting landscape, collectors are refocusing their attention on the timeless appeal of rare and historically significant watches. The market isn’t just surviving—it’s evolving. Secondary Market Correction Prices in the secondary market extended their decline throughout 2024. Iconic models such as the Rolex Daytona and Patek Philippe Nautilus have seen price…

Gold’s unrivaled history, dating back to ancient empires, has proven it to be an asset that can thrive during both stability and crisis. While this alone should be convincing enough to own it in one’s portfolio, adding Harry Markowitz’s Modern Portfolio Theory (MPT) [1] into the equation, makes gold as a strategic asset undeniable. The precious metal offers more than just a hedge against uncertainty; it provides diversification rooted in its unique relationship with equities and bonds. By exploring gold’s storied past, its fit within MPT, and its performance under market stress, we uncover how we believe gold can make…

Social media has turned looking good into a social movement, with LVMH’s Sephora brand leading the pack. Teens and young adults have been self-absorbed with appearance since at least the Boomer generation began coming of age in the rock-and-roll ’50s. Today, propelled by the explosion of user-generated “influencer” content on social media sites, it’s Gen Z, along with Millennials, driving global growth in the beauty and personal care business. The worldwide market in 2023 was estimated at about $550 billion, with North American sales representing about 25%. Through 2030, forecasts call for compound annual growth of up to 7.7%—not bad…

The thing most people love about closed-end funds (CEFs) is, well, pretty straightforward: the dividends! With these income plays kicking out average yields of 8.7%, they really can go a long way to helping us secure a safe retirement. Beyond that, though, there are many other reasons why CEFs should be in your portfolio. Access to a collection of high-quality assets, for example, since CEFs are well-regulated and hold a wide range of assets, including stocks, bonds and real estate investment trusts (REITs). Still, with yields that high, it’s fair to wonder if CEFs’ payouts might not be sustainable over…

Domino’s is a high-quality asset lite business which has delivered solid results historically for shareholders By Blue Chip Portfolios Summary Domino’s has significantly outperformed the S&P 500 over long-term holdings periods The company operates a high-quality asset lite business model which allows it to generate very high returns on invested capital Warren Buffett’s Berkshire Hathaway recently initiated a position in the stock I view Domino’s shares as reasonable valued at current levels and an attractive investment opportunity Shares of Domino’s Pizza (DPZ, Financial) have proved an excellent long-term investment historically. Over the past 10 years, Domino’s shares have delivered a…

Merry Christmas, my fellow contrarian! Did Santa bring you tax-free dividends this morning? The municipal bonds funding the Las Vegas Valley Nevada Water District would have made a great stocking stuffer. They yield 5% and get a tax hall pass from Uncle Sam. Which means on a tax equivalent basis they actually pay 6% or 7% or more, depending on your income tax bracket. Vegas is booming. And the town is in the middle of a hot desert that is increasingly arid, so this muni is rock solid. Five percent, tax free. Why’d you forget this, Santa? Well fear not,…

The stock market is likely to continue to rally into January. There may be some weakness from February into March, but 2025 is due to close on the upside. The relative strength screen of the S&P 500 stocks shows three airline stocks in the top fifteen. S&P 500 Relative Strength Screen Applying the same analysis to the S&P groups, the airline group is ranked number three. S&P 500 Group Relative Strength Screen The monthly price cycle projection of the industry group points to higher prices in 2025 as we see below. Airline Group Monthly Cycle Of the three top-ranked stocks,…

I think it’s clear by now that Trump 2.0 is going to look different from Trump 1.0. Some areas, like tariffs, look similar to the first time around (though we expect more of them in the second term). Others are totally different. (Hands up if you had a potential crackdown on processed food by an RFK Jr.-led HHS on your bingo card.) “Big Food” to Take a Hit, Fertilizer Stocks a Smart Buy in Trump 2.0 Let’s start with food stocks, which, as mentioned, are now a target for RFK Jr., should he be confirmed as HHS secretary. To be…