Monday, August 18, 2014


Warning: U.S. Stocks Are Overheated

Yes, the stock market is having a banner year. But the simple truth is: It's overheated – especially dividend stocks. The first half of 2014 saw almost $30 billion in dividend increases alone. As a result, eager investors have plowed into these U.S. stocks and prices have skyrocketed. That's a problem. You could be overpaying by 60% on your next stock purchase.

But…amazing, cheap income opportunities still abound if you're willing to think globally. I have 5 income opportunities that are still available at bargain prices with big dividends…such as $4 a share, $2.84 a share, $2.47 a share and more. They're worth a look.

Details here.

The One Income Opportunity You Can't Afford to Miss

"Did I miss out on the stock market rally?"

If you're asking yourself this question, you're not alone. It's a popular query that turns up 24 million results on Google.

And if you're one of the folks sitting on the sidelines, the short answer to it is...

Yes. You missed out.

Just the other day, the Dow closed over 17,000---up 158% from its 2009 bottom. If you had the guts to put your money in the market then, you could be very wealthy right now.

But let's be honest: not many people did. With what happened to hard-working Americans' wealth during the Great Recession, it's hard to blame them.

And the odds of the market tacking on another 158% are slim ... and none.

That's bad news.

You know you need to build a nest egg for retirement. Or if you're already retired, you need income now.

You probably feel like you have to do something.

But in our opinion, at no time since the Great Depression have investors endured such a challenging period in identifying high-quality, long-term income investments.

That's why we're writing you today...

We Want to Let You in on Our Solution

Richard Stavros, chief strategist at our new Global Income Edge advisory, has developed a stunningly effective system we call the Income Blueprint.

It's our new secret weapon for pinpointing low-risk, high-income investments.

It's so powerful we've made it the driving force behind Global Income Edge, our most ambitious high-income publication yet---and we're pulling the wraps off it today.

Here's the best news for you: We want to reward loyal Investing Daily readers (like you) by letting you try this advisory before we roll it out to the general public on September 1.

Even better, we'll throw in Richard's new special report, "Income Afterburners." It reveals five surprising picks his formula has singled out.

Mark F. from Whitehall, Maryland, just banked a cool $5,066 payout from one of these high-powered recommendations. And Geoffrey L. from Palm Beach, Florida, cashed a massive $17,179 check!

If you need income and you need it now, Richard's system and new report will be a godsend.

We'll show you how to get your copy---and be among the first to kick the tires on Global Income Edge---in just a moment.

But first, we want to take you on a quick tour of Richard's amazing system, so you can see for yourself why it's so effective at pumping out massive income.

The Ultimate Roadmap to Ballooning Dividend Payouts

We use the engine of Richard's formula to drive the exclusive Early Warning System in our sister publication, Utility Forecaster---an advisory that's giving its readers an average gain of 293% per pick.

But Richard wanted to do better.

Financial advisors say the maximum draw on your retirement savings should be 4%, and he wanted to create a service that delivers the kind of income that will easily give you that.

But he also wanted it to deliver payouts so enormous that you'll have money left over to add to your nest egg ... or use for that dream vacation you've always wanted to take.

So he worked until he perfected a formula that did exactly that.

And he purposely didn't constrain it to any one industry---or even any particular country.

Here's why: Forbes recently analyzed the returns of a hypothetical global portfolio against those of a U.S.-only one, and here's what they found:

  • The diversified international portfolio turned $100,000 into $191,772 in 10 years. The domestic-only portfolio returned 22% less.

  • In fact, the global portfolio outperformed the domestic portfolio a staggering 96% of the time over a series of 121 rolling three-year periods.

That's why Stavros's Income Blueprint ruthlessly pursues income anywhere in the world.

And here's something else you'll really like:

Even though the companies the Income Blueprint pinpoints are located across the globe---including the U.S.---they trade on the New York Stock Exchange or the NASDAQ.

That gives you the benefits of diversification and massive dividends---combined with the ease and safety of the most respected exchanges on the planet.

But here's the real key to its power...

Building on the Strength of a 100-Year-Old Strategy

The Income Blueprint is powered by something Stavros developed years ago called the DuPont Hybrid Model.

We won't bore you with the details of the calculations here. But we do want to point out that the original DuPont model was developed nearly 100 years ago and is still in use today because...

... it's supremely effective at pinpointing companies that excel at generating profits from the money shareholders invest (return on equity).

It's so effective, Warren Buffett uses the principles behind it to compare companies against their peers.

And a study by Charles Schwab is further proof of its power. It showed there's a high correlation between return on equity---safety---and the ability to continue paying dividends over time.

So the foundation of our high-income formula has some impressive company.

But here's some real proof of just how effective it is.

Since 2009, Stavros has used the engine of the Income Blueprint to rate all the stocks in the utility sector ... and here are the results.

  • His top 10 utilities from 2009 returned 43% MORE than what the average investor saw.

  • His 2010 top 10 list crushed the competition's returns by 81%.

  • And his 2011 list out-returned their peers by a staggering 151%.

In fact, the utilities his formula pinpointed have beaten their competition every year since he developed it.

Now let's get to the real reason why we're writing you today.

We want to show you how you can...

Solve Your Income Worries Forever

With investors holding their breath every time the market stumbles, we think it makes perfect sense to put some of your money into the high-income opportunities we deliver in Global Income Edge.

In fact, we're so convinced you'll enjoy cashing checks from the high-income opportunities Global Income Edge brings you, we'll let you road test this brand new service with no risk and no obligation for three full months.

So go ahead and lock in your spot. Take your time. Read the special report. Cherry-pick from the three portfolios that boast average yields up to 8.3%.

But space is limited! We can only afford to let 100 people take a peek at this high-income advisory today. When we hit that number, we'll close this offer and you'll have to wait till we open enrolment up to the masses---at a higher subscription price.

Don't miss out.

Click here to guarantee your spot now.

Editor's Note: I'm so excited about Global Income Edge that I'll make this deal even sweeter: I'll throw in a second special report, "Endless Income."

It gives you full details on three energy stocks touting impressive yields, like a British electricity and gas distributor with a 6.2% yield ... and a Brazilian utility that just reported a $51-million profit and rewards shareholders with a 7.3% yield.

Remember, you're always covered by our no-risk 90-day test drive, and the special reports are yours to keep no matter what you decide.

What are you waiting for?

Go here to get immediate access now!


Shocking New Formula Revealed

We're about to pull wraps off an exciting new income service. It's powered by a revolutionary new platform called the Income Blueprint Formula. I promise you, when you see the kind of payouts that are possible by following this lucrative advice, you'll want a piece of the action. And that's exactly what you'll get – in addition to a $50 pre-launch discount – when you

click here.

Canada's July Jobs Report Gets a Surprise Makeover

Ari Charney

In the most recent issue of Canadian Edge, we wrote about what we believed was a dismal July employment report, noting that there wasn't much we could say to sugarcoat our disappointment. But it turns out Statistics Canada (StatCan) made an enormous error in its initial report of these data.

Instead of job growth being essentially flat for the month, as StatCan first reported, Canada's economy actually added nearly 42,000 jobs in July, blowing past economists' consensus forecast of 20,000 jobs.

The unemployment rate remains unchanged from the earlier report, ticking lower by a tenth of a point, to 7.0 percent. But the labor force participation rate held steady at 66.1 percent, instead of declining by two-tenths of a point, as was first reported.

Although we're certainly relieved by this significant revision, our excitement is somewhat tempered by the underlying data.

Mainly, the revised results were still driven by part-time employment, which jumped by almost 60,000 jobs, after falling by 43,000 the prior month. These figures were essentially unchanged from the first report.

Part-time jobs are considered to be of lesser quality due to lower pay and higher turnover. So in general, we'd prefer to see job creation coming from the net addition of full-time positions.

And while the big adjustment in the revision was on the full-time employment front, full-time jobs still fell, though thankfully by a fraction of what was initially reported: The revised numbers show full-time jobs dropped by 18,100, instead of plummeting by 59,700.

Since a revision naturally causes one to review subsequent data with a more skeptical eye, economists with CIBC World Markets caution that July's data show a steep climb in education jobs, which rose 46,000 month over month.

They note that shifts in the timing of teacher contracts make it difficult for StatCan to adjust for seasonality. As such, there could be a big drop in this category in the months ahead.

At the same time, CIBC says that a decline of similar magnitude in the construction sector (down by 39,000 jobs in July) could very well be reversed in subsequent months, thus offsetting any drop in education employment.

The revision also didn't change the fact that the vast majority of Canada's job growth over the trailing-year period has occurred from part-time jobs. The country's total employment has risen by 0.9 percent over this period, or by nearly 157,000 positions, with the number of part-time jobs up 3.6 percent, while full-time jobs have risen by just 0.3 percent.

The number of hours worked, which can be a gauge of future employment demand, was up by just 0.3 percent from a year ago.

So while Canada's employment situation is hardly robust, at the very least much of the inexplicably precipitous drop in full-time jobs that was first reported for July has since been reversed.

Interestingly, when StatCan adjusts its data based on how the US Bureau of Labor Statistics (BLS) crunches data for its own employment report, Canada's employment rate is still slightly lower than the US. Based on the US approach, StatCan says the unemployment rate in Canada was6.1 percent in July, compared with6.2 percent in the US.

Even so, US job gains have shown far greater momentum, with the US unemployment rate falling by 1.1 percentage points over the trailing year versus just two-tenths of a point for Canada. Of course, Canadian policymakers are hoping the country can ride the coattails of a resurgent US economy, so a strengthening US job market is welcome news.

Finally, before anyone gets too conspiratorial with regard to major revisions to key economic data reported by government agencies and other entities, The Wall Street Journal observes that while such restatements are certainly noteworthy, they've happened at the BLS, which keeps a log of such errors on its public website, as well as at the Institute for Supply Management, among others.

Even with all the automation of recent years, there's still going to be the occasional human error.

In a special statement, StatCan said that the error occurred because one of the programs it used was not updated when it implemented a new processing system in July. As a result, certain respondents who were actually employed with full-time jobs were not counted as such.

Though the agency believes it has pinpointed the error and that mistakes were limited to its July survey, it has still undertaken an internal review to ensure they've caught everything and that it doesn't happen again.

This article originally appeared in the Maple Leaf Memo column. Never miss an issue. Sign up to receive Maple Leaf Memo by email.


Income-Starved?

Whether you're building a nest egg for retirement or are already retired, you need income now. But it's tough finding high-quality, long-term income investments, what with interest rates scraping the bottom of the barrel. Here's good news…

I've discovered a new, secret weapon for pinpointing low-risk, high-income investments. It's like a secret blueprint for nabbing big dividends. How does a $4 a share sound? That's just huge income opportunity #1. I have 4 more!

Here's what you need to know to get in NOW.

Australia's Consumers Find New Confidence

Ari Charney

One of the worrisome trends for the Australian economy had been the recent decline in consumer confidence. But as we reported last week, the June surge in retail sales suggested that consumer sentiment was perhaps more resilient than some economists had assumed.

Further evidence that this is the case came with the latest release of the Westpac-Melbourne Institute's August survey of consumer sentiment.

The survey, which was based on a random selection of 1,200 adults polled over several days last week, showed a 3.8 percent rise month over month, to a reading of 98.5 from 94.9.

As Westpac chief economist Bill Evans succinctly put it, "That was a pleasing result."

Consumer confidence hit a medium-term peak last September, which coincided with the conclusion of an unusually long election cycle. Respondents at the time were either relieved the country's federal elections were finally over or hopeful about a new government's ability to get the economy back on track.

Naturally, it was unlikely for such euphoria to persist, as economies don't turn on a dime and the reality of governance always falls short of promises made while electioneering.

Indeed, in the months thereafter, consumer confidence began a protracted swoon, with sentiment bottoming in May, at 92.9, and only rising slightly in the two subsequent months.

In particular, consumers have been anxious about a difficult job market and a contentious federal budget.

From the standpoint of the overall economy, weakening consumer sentiment appeared to be flowing through to retail sales, which had enjoyed an unusually strong run from October through January, then essentially flat-lined for the next three months before an outright decline in May.

The Reserve Bank of Australia (RBA) has been hoping to ignite growth in the country's non-mining sectors now that the resource boom has peaked and investment in that area is waning.

Like its counterparts in other sluggish developed-world economies, the RBA has kept interest rates at historic lows, with rate-sensitive sectors such as housing as obvious beneficiaries.

Outside of housing, retail had been one of the few non-mining sectors to demonstrate strength, so we were troubled when it declined earlier this year in tandem with slackening consumer confidence.

But the retail sector's June rebound coupled with further evidence of strengthening sentiment more recently suggests that, while Australia's job market remains difficult, consumers appear to have moved beyond their concerns about the tough federal budget.

As Westpac notes, consumer confidence is up 5.9 percent since its low in May and is only 1.2 percent below its level prior to the announcement of the federal budget. However, the index is still about 10.8 percent below its post-election peak.

Evans speculates that there are political factors that could be boosting confidence, such as the repeal of the country's carbon tax, as well as opposition in the country's Senate to some of the more unpopular budget measures.

Assuming budget negotiations don't devolve into disorder, Westpac expects "the consumer to be running at a faster pace in the second half of 2014 than in the first, with some spillover to non-mining business investment and employment."

According to Bloomberg, the current consensus among private-sector economists is for Australia's gross domestic product (GDP) to grow by 3 percent in both the third and fourth quarters. Full-year growth is forecast to come in at 3.1 percent, which is a tenth of a point higher than the RBA's estimate.

If Westpac is right about how consumers behave in the second half of the year, then the Australian economy's performance could be even stronger.

This article originally appeared in the Down Under Digest column. Never miss an issue. Sign up to receive Down Under Digest by email.


Your Struggle for Income Ends TODAY

U.S. dividend stocks are overpriced right now. The truth is too many people think it's a good time to buy them. You may know that if you've been looking for an affordable domestic stock that generates strong payouts. They don't exist. The good news is there are still pockets of massive income opportunity out there. I've used a proprietary new formula that pinpointed five of them. Payouts up to $17,179 are possible.

You'll want to get all the info here before word gets out.

You are receiving this email at benjamart.ss.stock@blogger.com as part of your subscription to Investing Daily's Stocks To Watch,
published by Investing Daily. To ensure delivery directly to your inbox, please add
postoffice@investingdaily.com to your address book today.

Email Preferences | About Us | Premium Services | Contact Us | Privacy Policy

Copyright 2014 Investing Daily. All rights reserved.
Investing Daily, a division of Capitol Information Group, Inc.

7600A Leesburg Pike
West Building, Suite 300
Falls Church, VA 22043-2004
U.S.A.

0 comments:

Post a Comment

Subscribe to RSS Feed Follow me on Twitter!