Tuesday, July 23, 2013

Ask the Expert – Marc Faber – Sprott Money News



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This Indicator Combo Points to the Biggest Winners

There are many ways to find winning trades. Investors have long looked at value and growth methodologies as two distinct investment approaches.

Other investors have combined those two schools of thought into a single approach by using the PEG ratio to compare the price-to-earnings (P/E) ratio to the earnings growth rate. An additional refinement to this approach is to add relative strength (RS) in an effort to find undervalued stocks that are ready to move higher in the short term.

A less widely followed approach to investing is to focus on volatility. A stock's volatility is now being recognized as an attribute that can be used just like the P/E ratio to find potential winners.

Research has shown that low-volatility stocks tend to outperform high-volatility stocks when returns are adjusted for risk.  (more)

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Wyndham Worldwide Corporation (NYSE: WYN)

Wyndham Worldwide Corporation, together with its subsidiaries, provides various hospitality services and products to individual consumers and business customers in the United States and internationally. The company operates in three segments: Lodging, Vacation Exchange and Rentals, and Vacation Ownership. The Lodging segment franchises hotels in the upper upscale, upscale, upper midscale, midscale, economy, and extended stay markets, as well as provides hotel management services for full-service and select limited-service hotels. The Vacation Exchange and Rentals segment offers vacation exchange products and services to resort developers and owners of intervals of vacation ownership interests (VOIs); and markets vacation rental properties primarily on behalf of independent owners, timeshare developers, and other hospitality providers. The Vacation Ownership segment develops, markets, and sells VOIs to individual consumers; provides consumer financing in connection with the sale of VOIs and property management services at resorts; and offers day-to-day-management services, including oversight of housekeeping services, maintenance and accounting, and administrative services for property owners associations and clubs.
Please take a look at the 1-year chart of WYN (Wyndham Worldwide Corporation) below with my added notations:
1-year chart of WYN (Wyndham Worldwide Corporation) From March through May WYN seemed to form a topping pattern and the stock eventually broke lower at the end of May. During that period of time, you will notice that the stock commonly reacted to the $60 price. That price has been resistance (red) on a couple of occasions already, and while topping it also acted as support (green). The stock is currently retesting that $60 level as resistance.
The Tale of the Tape: WYN tends to react to $60. A trader could enter a short position at $60 with a stop placed above that level. If the stock were to break back above that resistance a long position would be recommended instead.
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The 4 Best Currencies for 2013

Currency markets in the first half of 2013 have been roiled by central bankers’ delusional efforts to prop up their lackluster economies.

That means the best currencies to invest in for 2013 — or, the remainder of the year — will be in Asia and Canada — countries where the governments have refused to engage in debasing their currencies in a “race to the bottom.”

Fact is, the strength of any currency is strongly related to decisions made by governments and central banks.  (more)

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5 favorites for rising yield: D, EXC, KMP, OKE, SO

We avoid chasing stocks that have run beyond these levels. We boost targets primarily based on dividend growth but also on other factors, such as asset additions, that promise dividend growth in the future.

Another component of our approach is a long-term focus. Our buy-hold-sell decisions are rooted in what underlying operating and financial metrics say about dividend sustainability and growth well into the future.

Here's a look at five solid companies with sustainable and growing dividends.

Dominion Resources (D) is one of the largest producers and transporters of energy in the US, with a portfolio of approximately 27,500 megawatts of generation, 11,000 miles of natural gas transmission, gathering and storage pipeline and 6,300 miles of electric transmission lines. (more)

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Here Is The Reason For Gold’s Massive Surge Above $1,300

from KingWorldNews:
“COT data for week ending 7/16 show Commercials added to their Net Short Position by ‐5,566 contracts. As for the Specs, they added +6,905 contracts, bouncing off the lowest Net Long position since 2005. It’s too early to tell of course, but the data may signal the bottom for Gold is in.
Looking at the Net Commercial position in relation to Open Interest (see below), we get a strong flashing buy signal at these levels. Again, too early to tell, but the data would certainly suggest a significant and extended rally is near.
Eric Pomboy continues @ KingWorldNews.com

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