Make More than 300% Using a Bear Credit Spread

by David Becker

Can you imagine a trading strategy with which you can make more than 300% a year, even if a stock price goes nowhere? Using an options strategy called a bearish call spread, you can. This strategy provides you with a substantial payout if the price of a stock remains below your customized level at an expiration date of your choosing.

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LEGO Just Gave Barbie the Boot in the $84 Billion Toy Industry

by Tom Sandford

Upstaging a perpetual 20-year-old blonde is no easy task. Yet it looks like Danish toymaker LEGO Group has finally put Mattel’s (Nasdaq: MAT) Barbie in the backseat. In fact, the LEGO Group’s sales have jumped by 11% during the first six months of the year, edging out Mattel’s $2 billion earnings by $0.01 billion.

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IU Stock Grader Rackspace (RAX) Shares Tumble 16% After Buyout Plan Dies

by Ryan Fitzwater

Back in July, we covered rumors that cloud service provider Rackspace Hosting Inc. (NYSE: RAX) was considering taking itself private. At the time, shares jumped more than 7% on the news that the acquisition would have a price tag of up to $6 billion. Let's see how Rackspace scores on our Investment U Fundamental Factor Test now that the acquisition party is over and shares have plunged.

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Plus A Better Way to Value a Stock

by Marc Lichtenfeld

Last week in this column, I discussed why I do not believe the market is in a bubble. I offered several reasons, among them that the market's price-to-earnings (P/E) ratio was not in bubble territory. P/E is the most popular method of valuing a company. You take the company's earnings per share and divide it by its stock price. Read On…

Plus Don’t Misuse the P/E Ratio

by Christopher Rowe

Are you one of those investors who misuse and misunderstand the most popular measure of market valuation? If you're basing your view of the market on the price-to-earnings ratio (P/E), then you're in danger of being misled. Read On…

Plus Why Your IRA Is Exactly Backward

by Alexander Green

As someone who spent 16 years in the money management business - before spending the last 14 as a research analyst - I know there is a good chance you are doing the wrong thing in your IRA. As well as in your non-retirement accounts. That's because - if your experience is typical - your investment strategy is exactly backward. Read On…

Chart of the Week: Where the Living’s Easy

by Rachel Gearhart

This week’s chart uses six metrics to provide a snapshot of the quality and longevity of life in each county in the United States. The metrics are median income, college education, unemployment rate, disability rate, life expectancy and obesity rate. Read On…

Plus The New Demonization of Wealth

by Alexander Green

For decades, I've been going to investment conferences where wild-eyed, hard-money types claimed the federal government is out to confiscate our private wealth with confiscatory taxes. "Get your money out of the country," one famously said, "before your country gets the money out of you." I chuckled at the time. But lately I've been thinking it's less funny. Read On…

Tesla Takes Investors for a Ride

by Tom Sandford

Things are looking up for the all-electric carmaker Tesla Motors (Nasdaq: TSLA). The company is only 11 years old but already has a market cap of $34 billion. That is more than half the market cap value of Honda, Ford and General Motors. But with changes on the horizon, is Telsa already overpriced? Read On…

Plus Profit From This Global Trend

by Sean Brodrick

The iShares MSCI Emerging Market ETF (NYSE: EEM), a benchmark for emerging market stocks, has surged more than 5% in the last three months. That's about double the performance of the S&P 500, and five times better than the Dow. Read On…

Abercrombie & Fitch: No Longer an American Icon

by Zach Scheidt

American fashion company Abercrombie & Fitch (NYSE: ANF) struggles to make a statement as it makes a dramatic shift in profitability. From 1999 through 2008, operating margins hovered between 17.5% and 22.5%. Today, operating margins are closer to 1.5% and have not been above 10% since late 2009. Read On…

VIDEO Investment U Explains: Tax Inversion

by Andrew Snyder

Here's a fact that infuriates more than a handful in Washington: The nation's top 15 companies now hold nearly $800 billion worth of cash outside of U.S. borders. Some call it unpatriotic while others look at it as necessity. But the politics of this debate is not what we're here for. We're here to build and protect wealth. Time and time again, the math shows us the more we avoid Uncle Sam, the quicker our journey to financial independence. Read On…

Plus Repeat After Me: “There Is No Bubble”

by Marc Lichtenfeld

I host an investing radio show called Marc Lichtenfeld's Oxford Club Radio. Each week, I have guests on from the financial community. So you can imagine how many pitches I get by numerous public relations people on behalf of their clients. Last week, I received one so preposterous, I simply have to address it. The pitch was for an author who is yet another permabear claiming that the market is in a bubble. Read On…

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