Tag: streetauthority.com

Why Apple Should Follow IBM's Successful Turnaround Story

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In recent months, Apple's (Nasdaq: AAPL) CEO Tim Cook has repeatedly stressed that the company still has a number of aces up its sleeve. Cook has dropped coy hints that bold new products are in the pipeline, so Apple could still surprise investors with better-than-expected growth.

But even if Cook is right and Apple is on the cusp of an impressive product release cycle, then he's wrong on one key point: Apple will never again be a great growth story it once was.

The company's annual revenue base is fast-approaching the $200 billion mark, so even if the company is layered in tens of billions of dollars in new revenue, that would only offset some of the revenue declines the Apple will experience from maturing key products and competitive pressure, which could lead to more price cuts.

Make no mistake, it is Cook's job to focus on product development and technology leadership. But Apple's board of directors now has a completely different task: Boost a stock price that remains in a free fall. Continue reading "Why Apple Should Follow IBM's Successful Turnaround Story" →

Why The Market is Ripe for a MAJOR Shift

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PIMCO CEO and all-round market egghead Mohamed El-Erian coined the term "The new normal" during the financial crisis of 2008.

El-Erian's new normal is defined by slow economic growth, persistent unemployment and an accommodative fiscal policy from global central banks and volatile markets.

This new normal results in meager bond yields of only 2% and a tepid return from equity investments. Up close, this seems like an accurate description of today's economy. But if you step back and look at the bigger picture, then maybe the new normal is just becoming the "old normal" again. Continue reading "Why The Market is Ripe for a MAJOR Shift" →

Crisis Investing 101: How to Invest in Currencies the Easy Way

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In the past few weeks, I've told you about the five assets that could save your portfolio. I've shown my favorite gold and oil plays, how to protect a portfolio with commodities, how real estate provides safety in good and bad times, and how owning gold coins and bullions requires some level of expertise.

Today, I'm going to tell you about currency exchange, an investment that has become so popular, you could trade with only $1 in your account.

Like gold coins and bullion, currency trading is a traditional form of investment, because it can be physically held. For example, investors who held greenbacks instead of the euro during the euro-zone-banking crisis were substantially rewarded. Continue reading "Crisis Investing 101: How to Invest in Currencies the Easy Way" →

Beware of the March Effect on the Stock Market

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"Beware the Ides of March." This famous line uttered by a soothsayer in William Shakespeare's 1601 play, "The Tragedy of Julius Caesar," warned the ruler of his pending demise on the 15th day of March.

Well, we all know what happened to Caesar.

We could apply this same warning to the stock market today.

In the past few years, every stock rally in the beginning of the each year was met by a sharp sell-off in the spring. Certainly, this doesn't portend to mean the entire year ended badly. In fact, those investors with the foresight to buy during the spring swoons generally ended the year with strong gains. Continue reading "Beware of the March Effect on the Stock Market" →

How the Starbucks Effect Could Lead to 200% Gains

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It's easy to find companies that have returned billions to shareholders in the past. And it's easy to find companies that dominate their markets right now.

But the future is much less certain.

As a long-term investor, how can you know your investments will continue to dominate the competition for years to come? How can you make sure they won't crumble under the weight of new competition, intense regulation, disruptive new technologies or a host of other potential problems? Continue reading "How the Starbucks Effect Could Lead to 200% Gains" →