Amazon (NASDAQ:AMZN) dominates the U.S. smart speaker market with its Echo devices. Its Alexa-powered devices are expected to control 66.6% of that market this year according to eMarketer’s latest estimates, compared to 29.5% for Alphabet’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google Home.
Many conservative investors gravitate toward blue-chip dividend stocks with healthy yields well above what the overall market pays. Right now, the market average of about 2% isn’t all that much for income-hungry investors, especially as bond rates start to rise more sharply.
Former Fed Chair Alan Greenspan just warned about these new bubbles in the economy, saying itís no longer a matter of if, but when the next one will pop. Here’s what you need to know nowÖ
On January 31, two days before the stock market’s recent sell off, former Fed Chair Alan Greenspan warned:
“I think there are two bubbles. We have a stock market bubble and we have a bond market bubble.”
Greenspan believes the ever-increasing government deficit is behind these bubbles, pointing out that the federal debt to GDP ratio is greater now than it was during World War II.
Greenspan also revealed that he doesnít have confidence in when this situation will be fixed:
“I think we’re getting to the point now where the breakout is going to be on the inflation upside. The only question is when.“
Other Experts See it Too
Greenspan isn’t alone in his concerns. William White, former Chief Economist for the Bank for International Settlements, said he believes that weíre in an even more dangerous situation today than we were at the peak of the last bubble. Meanwhile, Peter Schiff says:
“The impending economic collapse is hidden from most. People only see a rising stock market, not the negative underlying factors that will cause the whole system to crash.”
Could a downturn be just around the corner?
How to Hedge Against the Risk
With the stock market seemingly on the brink, and financial experts voicing their concerns, it’s no longer a matter of if, but when the bubble will pop. And when it does, do you want your IRA or 401(k) exposed during the crash?
Don’t leave your hard earned savings exposed. That’s why so many have already moved their savings into something that’s proved, time and time again, to protect against economic uncertainty: physical gold.
While you still can: Get a FREE Info Kit on Gold here. There is zero cost and zero obligation to you ñ we’ll even pay for shipping.
Plus, this 16-page “insider’s” guide reveals the little-known IRS Tax Law to move your IRA of 401(k) into an IRA backed by physical precious metals – without paying any taxes on the transfer.
It’s an excellent option for anyone who wants to take advantage of this opportunity with any savings in their retirement account.
But remember, you must act soon. Once the bubble pops, it may be too late to take advantage of this opportunity. To get started, click here to get this free info kit on gold.
Last year, cryptocurrencies were virtually unstoppable. When the clock struck midnight on 2017, the aggregate value of virtual currencies had soared by almost $600 billion, or more than 3,300%, when all was said and done. It’s probably the single greatest year we’ve ever witnessed for any asset class.
After three challenging years, the oil market is showing real signs of improvement. Oil prices, which many in the industry expected would be at or below $50 a barrel this year, are now above $70. Crude might not be done running higher due in part to the fact that oil producers in the U.S. are taking a much different approach to how they allocate their oil-fueled cash flows.
One of the keys to investing is balancing risk and reward. And one way to help with this is to employ thoughtful portfolio diversification. Too much diversification can prevent market-beating returns. On the other hand, sticking to just one stock may put investors at too much risk. An approach somewhere in the middle, however, could offer investors a chance to outperform the market while simultaneously reducing volatility.
Investors who want to sport market-beating returns must first learn a few valuable skills and be willing to put in a little weekend homework. Arguably, the single most important skill investors can learn is how to value a stock. Without this proficiency, investors are left dancing in the market’s winds without a firm foundation, not knowing if a company’s future growth projections are already baked into the stock price or if a company’s shares are severely undervalued. The very thought makes me shudder!
Last year, the cryptocurrency market truly gave Wall Street and investors something to marvel at. From the beginning of 2017 to its end, the combined value of all digital currency market caps soared by nearly $600 billion. On a percentage basis, we’re talking about an increase in value of more than 3,300% in a single year. No other asset class has ever come close to these scorching single-year returns, and we may never see anything like it again, at least in our lifetime.
You’ve probably heard the old adage, “Sell in May and go away.” This saying assumes that it’s best for investors to avoid stocks beginning in late spring and not buy again until November. It’s not advice you should follow, though, since investors would have missed out on nice profits selling in May and going away in four out of the last five years.
What do you look for in a dividend stock? If you’re like most investors, the first thing you probably check out is the yield. But chasing yield can cause problems for your portfolio if those yields aren’t backed up by solid fundamentals. Risk-averse investors need to make sure those high yields aren’t likely to fizzle.