Interview on Fox Business: Intel Is Great Buy

Click here to see my interview on Fox Business yesterday.

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Abbott Labs (ABT): Neutral Risk Reward Rating – for Ask Matt Readers

Click here for a free copy of our report on ABT.

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Don’t Be Fooled: The Euro Will Take Us All Down

Do not be fooled by the recent stock market run-up. Think of it as a set-up for a fall. Investors need to protect their portfolios from the eventual economic decline that will stem from the euro debacle.

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Get Short Now: Explanation For “The Euro Will Take Us All Down”

Here is the explanation behind why I suggested investors “brace” their portfolio and go net short in my “Don’t be fooled: Get short now” column on MarketWatch.com. In addition, I provide free reports on the stocks and funds I suggest shorting.

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Registered Rep Interview on Economic vs Accounting Earnings

David A. Geracioti, Editor-In-Chief of Registered Rep magazine, recently invited me for an interview on why economic earnings matter when selecting stocks, mutual funds and ETFs.

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Short VMware (VMW) As Hedge for Euro Recession

VMW’s valuation has its head in the clouds.
This stock is a great short in most any scenario and is especially attractive in the event of a global economic slowdown led by a recession in Europe.

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“Predictive” ETF & Mutual Fund Rating Methodology

QUESTION: Why should fund investors rely on backward-looking NAV trends?
ANSWER: They should not.

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ETFs vs Mutual Funds: The Winner Is…

The radically higher number of US equity mutual funds (4,700+) versus ETFs (380+) is not indicative of better stock selection from active management. On the contrary, the vast majority of actively-managed funds do not justify the higher fees they charge. They do not, in terms of stock selection and expected returns, add value versus passively managed benchmarks.

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Stock Rating Methodology

stock rating

New Constructs assigns a rating to every stock under coverage according to what we believe are the 5 most important criteria for assessing the risk versus reward of stocks. New Con­structs’ stock rat­ings are reg­u­larly fea­tured as among the best by Barron’s.

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Portfolio Management Rating: Methodology for Predictive Fund Ratings

The Portfolio Management Rating of a fund is based on the aggregated ratings of the securities it holds as well as its overall Asset Allocation. When analyzing equity funds, we use New Con­structs’ stock rat­ings, which are reg­u­larly fea­tured as among the best by Barron’s over the past three years.

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Forensic Accounting Says Avoid Energy & Financial Stocks

As one financial scandal follows another, it seems the good guys are having a tougher time catching the bad guys. Recent revelations about MF Global’s ponzi scheme are another reminder of how our regulatory and oversight systems seem to let whales pass through their net.

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Cutting Thru the Smoke in the Energy Sector

Two of the three stocks added to our large/mid cap Most Dangerous stocks list for November are from the energy sector. Those stocks are Energy XXI (Bermuda) Ltd. (EXXI) and Superior Energy Services (SPN) – both get my very dangerous rating as do all of the Most Dangerous stocks.
All of the energy sec­tor ETFs get a dan­ger­ous rat­ing, which means you should sell them.

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Apple Inc. (AAPL): Very Attractive Risk/Reward Rating for Ask Matt Readers

Here is a free copy of our report on AAPL for Ask Matt readers.

AAPL gets our “Very Attractive” rating because its economic earnings are positive and rising, it has one of the highest returns on invested capital (ROIC) in the world. At the same time, it’s stock price reflects very low expectations for future earnings growth.

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MF Global Was a Dangerous-rated Stock

New Constructs rated MF Global (MF) a Dangerous stock long before it blew up.

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Utility Sector: Check The Ingredients Before Buying

High dividend yields are NOT enough to warrant investing in the utilities sector.
Too many investors put their hard-earned money in utility stocks with the assumption that relatively high-yielding dividends from stable business make a good investment.
The real question that investors in any equity security must ask is: does my expected return from a stock justify the risk of investing in it?

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Feels Like 1999 All Over Again

As an adult, Halloween tends not to be that scary for me usually.
But after last week’s stock market rally in the face of the deteriorating situation in Europe and the rest of the world, I am afraid…for the stock market and am reminded of fall/winter 1999.

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Total Annual Costs Ratings Methodology for Predictive Fund Rating

Total Annual Costs used to rate a fund’s expenses reflects the all-in cost of a minimum investment in each fund assuming a 3-yr holding period, the average holding period for mutual funds.
This rating reflects all expenses, loads, fees and transaction costs in a single value that is comparable across all funds.
Our goal is to give investors as accurate a measure as possible of the cost of investing in every fund to determine whether this cost of active management is worth paying.

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Asset Allocation Ratings Methodology for Predictive Fund Rating

The Fund Asset Allocation Rating informs investors of each fund’s level of allocation to cash (non-equities) as well as how that level compares to other equity mutual funds.
We assume investors in equity funds prefer those funds to be maximally invested in equities given that investors can much more cheaply invest in cash on their own. We do not believe that most investors want to pay the high fees associated with equity funds to invest in cash.

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DeVry (DV) Very Attractive Risk/Reward Rating for Ask Matt Readers

Here is a free copy of our report on DeVry (DV) for Ask Matt read­ers. This report pro­vides details behind Matt’s analy­sis of DV in his recent arti­cle in USA Today.

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Jack Bogle: There Are No Investors Left, Only Speculators

Mr. Bogle, an invaluable voice of reason for investors over many years, suggests that there is too much speculation in our equity markets.
His comments jibe entirely with my post, Rise of the Speculative Movement.

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