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Do We Have A Stock Market Bubble And Will It Burst?

Most people on the market say that the American stock market is overvalued and they use the Shiller-Cape-Ratio in order to justify their comments.

Well, I say it's hard to say whether we are in a stock market bubble but we see definitely low yields in terms of free cash flow and high premiums on book value. It it’s a real bubble; it is a question about how fast the future growth can develop.

For the time being, the economy is recovering at a slow pace and the inflation seems to be flat. This is a good environment for the FED to keep the interest rates low which give the market more fuel.

Below are two interesting info-graphics which I have found by stumbling the economic theme space of the internet.

The first picture shows that it doesn't matter if you buy in a bubble. If you buy and hold stocks for the long period, you will make money in the end. The only difference is that your return will be smaller or over a long period negative.

What do you think? Would you buy stocks for bigger amounts of money? I personally keep around 15 net cash but that's in my view not an optimum when the yields for fixed income are so low.

My thoughts go into foreign stock markets. China and Europe stocks seem to be more fairly valuated but if you look what's going on in Europe and China, you would think about your investment a second time.

How do you place your money? Please let me know if you still buy stocks. Best Tom.



The Next Bubble


Source: BizBrain.org Demystifying the Tech Startup Bubble


10 Stocks Giving Investors More Money

I'm a passionate dividend investor and I also like to see my dividends growing. For sure, dividend growth is no safe bet or a strategy that makes you quick rich but it can deliver a solid return.

I've build a database with dividend growth stocks and stocks that have announced a share buyback program in order to monitor potential investment opportunities.

Each day and week, I sit down and watch that list and switch stock by stock with hopes to find the next ten-bagger that could generate millions for my portfolio.

Below is an overview of the latest dividend grower. Those stocks have raised dividends within the past week. This time, only 10 companies hiked their payments to shareholders.

The biggest fish in the pool was Philip Morris, followed by American Tower and Yum! Brands.

Big is beautiful but they also have a high debt burden in common.

Which stocks do you like?

These 7 Growth Stocks Have Potential To Make You Rich

7 Growth stocks originally appeared at long-term-investments.blogspot.comYesterday, I've published a small and very inspiring article about a Chinese couple that made a million with only two trades; fascinating.

Today I've run my stock screener for growth stocks with a market capitalization between 2 and 10 billion. Those stocks have a good chance to double if the company grows earnings and sales further.

In order to keep the passive income source alive, I've only selected stocks with a positive dividend yield as well as low debt ratios.

My focus excluded also stocks from the financial sector, mining stocks and energy/commodity companies as well. I don’t like those companies because I cannot predict their future. The business is price driven or caused by the skills or talents of the management.


Below are my seven favorites, best dividend paying companies that have doubled sales and earnings over the past ten years. Which do you like or do you own some of them? Let me know by leaving a small notice or comment in the box at the end of this article. Thank you so much for reading.

7 Growth Stocks I like are... 

How You Can Make $276,600 And More With One Stock Buy

We all look for stocks that doubles or tenfold in a decade. Remember how it was if you buy for $3k per stock position and your asset grows to $300,000 in ten years or so? Wouldn't it be great? Definitly!

I know, it sounds crazy but this happens with hundred or more stocks.

You don't need to be skilled tech founder like Bill Gates or Steve Jobs. You have all the skills to succeed. 

The only thing you need is patience and a long-term investment horizon and some luck as well.

Take your money and invest it into solid stocks with good long-term growth perspectives and a trustworthy management.

I've read a great inspiring story on CNN Money. They released a story about a Chinese couple that bought 100 shares from Apple in August 1998 at a price of $34 dollar and added 500 more shares in 1999.

With their first shares, they made a $276,600 dollar gain and their additional 500 shares hit the million mark in trading capital gain. Great story for normal investors like me and you!

Here are their most important items you need to know when you try to copy their success:

"We didn't panic. We know the stock market goes up and down"

- "We believe a good brand and a good company can last very long after the founder passes away. So we stayed with Apple"

- "At the beginning we realized Apple products are almost like jewels. People are proud of their Apple product. That's not a technical Wall Street analysis"

- Apple's "financial outlook, numbers and data are essential, but not the main reason to trigger buying the stock"

- We are "happy end user of Apple products"

Happy Investing!


These 8 Dividend Stocks Bubbling Cash Like Lava Gold Mines (Part II)

If you like to make money on the stock market like me, you need a clear vision and strategy about how to make money. 

Are you an income investor who likes to receive dividends or are you a short-term orientated trader with focus on quick profits?

I'm focused on long-term growth with growing income. In my view, only over a long period of time, stocks can double and develop their full asset potential.

I've recently published a small article about stocks with high free cash flows, companies that earn so much money from its operations and they have no need or desire to invest this money. 

I love those companies but the source of income should also be reliable. Only cash that comes over years and decades will deliver a good return for you.

In my first article about Cash Cows that produce money like milk, I've compiled some of the top yielding stocks with low reinvestment rates. 

Most of the top yielding stocks come from the technology sector and they also plan to buyback a significant amount of own shares which is also very good for the stock price.

Today I like to go forward and introduce the rest of my research results. They have in average a smaller yield but should be also attractive. A big part of the results come from the financial sector. Asset Managers and Stock Exchange Operators are top.

Flood of money should come into your pocket

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8 latest stocks with strong cash income sources are...