A 5% Junk Bond Bubble: What Could Possibly Go Wrong?

In rare situations, it actually is better to sell off the stock of companies you own rather than try and live off the income. For those of you who pay attention to market history, you know that we are living in one of the worst times of high-yield American bonds with junk status that we have ever witnessed.

Right now, the junk bond yield of something like the Bank of America Merrill Lynch Index is at 5.002%. For a quick refresher on the topic: last year, the yields of junk bond indices fell below 5% for the first time in American history, and we are flirting with that mark again this year. My … Read the rest of this article!

Walgreens Stock: Tobacco, Drugs, and Wealth

I was not surprised to see the news earlier this year that Walgreens was resisting calls that it refrain from selling tobacco products at its 14,800 drug stores across the world. As a result, many market commentators have compared Walgreens’ stock unfavorably to CVS, which stopped selling cigarettes during a phase-out program over the past three years on the basis that being a health-store was morally incompatible with selling a product that causes cancer and other severe health ailments.

The reason why Walgreens has held off on dropping cigarettes is because cigarettes are a much larger portion of their overall revenue pie than it ever was at CVS. At CVS, tobacco sales were … Read the rest of this article!

Visa’s Profit Numbers Continue To Awe Me

To do something successfully, you have to properly execute a two-step process. First, you must acquire the information that is necessary to find the success, and secondly, you must actually—well—do it.

The Wall Street Journal recently ran a report on how the gap between intense novice poker players and professional players has been narrowing considerably in the past twenty years, thanks to the internet. Even though the pros are still better, someone who studies poker day and night, spending hours googling every poker-related question that enters his head is going to come pretty close to overtaking some of the top dogs as the constant researching on the internet allows passions to be fed.… Read the rest of this article!

High Dividends and Market-Beating Returns

I recently covered two recent purchases that I made over at Patreon. Both stocks offer 4.4% or higher starting dividend yields and a high likelihood of future price appreciation. 

Now would be a good time to join as a subscriber, as I plan on releasing a case study of Boeing as a long-term investment as well as coverage of a software-as-a-service firm that offers unusually high growth stock characteristics. I expect those additional pieces will be up within the next week. To join me on Patreon, please click here.

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What If Twitter Stock Were Valued Like Visa?

Investors in Twitter stock have recently learned the hard way how volatility strikes when you decide to purchase a company that has no readily identifiable profits under its umbrella—in other words, its valuation is inherently speculative because investors are entirely measuring the company based on what it will be like in the future, rather than what it is doing now. After crossing the $74 threshold the day after Christmas in 2013, the price of the stock has fallen to $35.

The financials of the company, as they stand right now, remain unimpressive. Twitter lost $1.13 per share in 2013, and this year should figure to be more of the same. That works out … Read the rest of this article!