Author: Smart Investing

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Lucid Group Inc. (LCID) Surges on Friday: What It Means for Retail Investors

Posted on by Smart Investing

Lucid Group Inc. (LCID) saw a significant surge in its stock price on Friday, with shares jumping by over 7%. This increase comes after the electric vehicle company announced its partnership with a major auto manufacturer. This news has sparked excitement among investors, but what does it mean for retail investors?

For retail investors, this surge in LCID’s stock price presents a potential opportunity for profit. With the company’s partnership, there is potential for increased sales and growth in the future. This could lead to a rise in stock price, providing a chance for investors to make gains. However, it’s important to do thorough research and consider the company’s financials before making any investment decisions.

This surge in LCID’s stock also highlights the growing interest in the electric vehicle industry. As more companies enter the market and make advancements in technology, there is potential for significant growth in this sector. This is something for retail investors to keep an eye on and consider when building their investment portfolios. As always, it’s essential to stay informed and make educated decisions when it comes to investing.

Income investing

Diamond NestEgg: 7-8% Treasury Yields: IS Buck ETF Too Good To Be True?

Posted on by Smart Investing

Investors looking for safety should start with the U.S. Treasury market. In the financial world, U.S. Treasuries are considered a risk-free asset.

That’s because they’re backed by the United States government. That could mean backing in the form of tax receipts. Or the ability to print U.S. dollars, still the world’s reserve currency. Either way, Treasuries are a benchmark for the entire fixed-income market. Investors and traders alike are wise to track current yields and trends higher or lower.

While Treasury bonds come in a variety of durations and styles, it’s easier for most investors to buy an ETF for instant diversification. Some ETFs use more advanced strategies, which can help boost returns on Treasury ownership.

For instance, the Simplify Treasury Option Income ETF (BUCK), currently offers a yield in the high 7% range. That’s far higher than the 4-5% return on simple Treasuries right now.

That’s the good news. Plus, Buck largely holds bills with a duration of one year or less. That leaves them with less interest rate risk compared to a 30-year bond.

From there, BUCK will use tools like covered calls to provide more income. That higher risk does come with higher returns. But if the options strategy is poorly executed, investors could see some short-term losses.

 

To see the full advantages and disadvantages to leveraged Treasury holdings, click here.

Economy

Lead-Lag Report: Market Signals and Bear Market Warning Signs with Vincent Randazzo

Posted on by Smart Investing

The stock market’s returns in 2025 have been abnormal. The extent of the spring pullback was exacerbated by tariff and trade war headlines. The rebound has been sharp, thanks to positive headlines on that front.

Today’s investors may feel that stocks have the “all-clear” to head back to all-time highs. However, the selloff created significant damage. Looking at today’s market, it’s likely that a swing lower and continued high volatility are the likely outcome over the next few months.

For instance, market breadth remains a key indicator. When stocks were rallying in 2023 and 2024, they were largely led by big-tech plays, such as the Magnificent Seven.

In late 2024, other market sectors started outperforming tech. This led to rising market breadth, where more stocks were contributing to the rally than just a handful of names.

In 2025, market breadth is now deteriorating. That is typically a sign of a bear market, not a bull market. At the very least, it suggests that the recent market weakness may last for longer than expected.

Plus, small cap stocks have been underperformers over the past few years. Typically, these stocks lead markets higher in bull runs. That hasn’t happened in the past few years.

With markets showing signs of weakness, investors should tread lightly, especially in the short-term.

 

To watch the full interview, click here.

Economy

ARK Invest: From Rolling Recession to Bull Market?

Posted on by Smart Investing

Arguably, the economy has been in a rolling recession over the past few years. Slow growth, combined with higher than average inflation, has created a decline in real terms. However, reigning in excess government spending and the productivity growth from AI could create a bull market.

Should that happen, returns will increase, and not just in asset prices. More capital will be used instead of labor. AI and robotics will allow for goods and services to be created more cheaply.

Several factors could help kick off a new bull market. One catalyst could be a change in tax policy. Reducing taxes, if rates are too high, could spur growth in the private sector. Over time, a larger private-sector economy could generate more total revenues, even at a lower rate.

Potential tax reductions from here increase global competitiveness for American firms.

Another catalyst could be higher productivity from the rollout of AI and automation. Many of today’s AI tools are ideal for reducing repeatable and replicable tasks such as data entry. Breakthroughs in robotics can help significantly reduce simple tasks that require considerable human labor.

Robotics and automation can lead to short-term job losses. While that may sound fearful, it is just short-term. Over time, new technologies create more jobs, and usually higher-value ones with higher wages.

Looking at the potential positives over the next few years, there’s a strong case for markets to head higher. And investors who stick with growth stocks could reap significant rewards.

 

To see the full analysis on growth plays in the years ahead, click here.

 

Income investing

QTR’s Fringe Finance: The Sweet Sorrow of Warren Buffett’s Parting

Posted on by Smart Investing

Warren Buffett has been CEO of Berkshire Hathaway (BRK-B) for 55 years. At the company’s annual meeting, he announced that he would step down from that role at the end of the year, at the age of 95.

Buffett is best known as a value investor. And while that was true in his early years, his biggest success at Berkshire has been buying industry leaders. These are companies with strong advantages over their competitors.

Buffett has also benefited from U.S. monetary policy over the past five decades. The growth of the financial sector as a percentage of GDP boosted Buffett’s bank holdings. And holdings of credit card company American Express (AXP).

As Buffett’s reputation grew, so did the opportunities. Following the financial crisis in 2008, Buffett was able to ink sweetheart deals with major banks. Goldman Sachs (GS) paid Buffett a 10% rate on preferred shares, in a deal that was unavailable to others.

In short, Buffett’s acumen for great deals grew far beyond simple value investing. Today, Berkshire sits on a record-high cash hoard. Buffett was derided for being old fashioned and out of step with the markets at the start of the year. Following the bear market slide, investors are rethinking that view.

Future management may invest along a similar philosophy to Buffett. But it likely won’t carry the same premium and weight as Buffett’s.  

 

To read about Buffett’s investment style, click here.

Economy

Figuring Out Money: Everyone Forgot What Happened Last Time

Posted on by Smart Investing

Since bottoming several few weeks back, the stock market has rebounded to its most-traded zone. Some traders see new all-time highs ahead. Others see a potential pullback.

Following nine straight days of gains, market fear has disappeared. The volatility index, or VIX, has dropped back down below 20. Consequently, the view is that the low is now in. However, should investors let their guard down now that things seem all clear?

The answer is a clear no. Markets have gotten exhausted following the market’s bounce. And now stocks may be ready to trend a bit lower over the coming weeks.

The good news? It won’t be as bearish as the spring selloff. The rally in the market, while strong, still leaves indices setting a series of lower highs going back to the start of the year.

From here, it would be normal for markets to pull back 6-7% in the coming weeks. Should that happen, fear may come back into the market. But it would still leave stocks well over their recent lows. All good news for a long-term healthy environment.

Of course, investors need to be mindful of today’s news headlines. The market’s selloff was news-driven, as were the positive headlines behind most of the bounce. As more economic fundamentals filter in, markets may move to new all-time highs. Or they may renew the bear market.

 

To see the full analysis on markets now, click here.

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Cryptocurrencies

Swan Bitcoin: Bitcoin’s Billion-Dollar Arms Race Heats Up!

Posted on by Smart Investing

Over the past few years, several companies have started to add bitcoin to their balance sheet. Regulatory agencies have finally provided clarity on how to value bitcoin holdings. That makes it easier for companies to do so.

Buying and holding bitcoin allows a corporation to benefit from the long-term upside of bitcoin. And buying bitcoin today reduced the amount on exchanges available for sale. Given bitcoin’s hard-coded scarcity, that could help fuel a price increase for bitcoin.

Some now project that bitcoin could rally as far as $180,000 by the end of 2025. That’s creating a demand for new companies focused on buying bitcoin.

The latest company is called Twenty One Capital, a reference to the 21 million maximum bitcoin that will ever be mined. The venture will launch with 42,000 bitcoins. And it’s backed by several large crypto venture funds, including tech investment giant SoftBank Group.

Twenty One Capital will join the ranks of companies like Strategy (MSTR), which has become the leader in acquiring bitcoin. Strategy has even employed stock sales, debt issuances, and preferred share offerings to raise capital. Today, Strategy owns over 550,000 bitcoin.

Consequently, the shift towards higher prices in recent weeks likely has more room to run as companies keep buying. Individual investors can also buy bitcoin to profit from a move higher.

 

To see the full analysis on corporate bitcoin buying, click here.

 

Income investing

Dividend Growth Investor: Eleven Dividend Growth Companies Raising Dividends Last Week

Posted on by Smart Investing

While dividend investing isn’t as glamorous as hitting a home run with a growth stock, over time dividend stocks can provide slow-and-steady returns that beat the market. Plus, they can provide a growing stream of income that can be used to fund retirement.

With markets still looking to regain their footing, investors can still buy high-quality dividend stocks off their recent highs. That provides a better entry point, as well as a higher starting yield.

Recently, 11 companies raised their dividends for at least the 10th consecutive year.

One such company is the financial services company MetLife (LET). MetLife offers insurance, annuities, and asset management services, all of which can be more steady than bank stocks in a market crisis. The dividend was raised by 4.1% for the 13th consecutive year, and shares currently pay a 3% dividend.

Another company with a recent dividend increase is Nasdaq (NDAQ). The technology company that serves capital markets raised its payout by a hefty 12.5%. Nasdaq currently yields about 1.3%, but has also grown its dividend for 13 consecutive years.

Both companies have a strong brand, relatively few competitors, and high barriers to entry. Those factors should allow them to continue growing their dividend payouts over time. Today’s investors could see big returns as higher dividend payments lead to higher share prices.

 

To see the full list of companies raising their dividends now, click here.

Income investing

Bigger Pockets: REITs Might Be in Jeopardy

Posted on by Smart Investing

Market sentiment has shifted negatively in the past few weeks. Rising uncertainty has led to a selloff in all asset classes, even supposedly safe ones like bonds.

Even real estate has suffered. The selloff in bonds has pushed interest rates higher, and kept mortgage rates high as well. That makes it more difficult for the housing market to match supply and demand. It also puts real estate at risk of declining to meet the current supply and demand equilibrium.

During a recession, real estate investment trusts (REITs) have a history of declining 17.6% on average. That’s a bit less than the stock market, which typically has a 20-50% bear market in a recession.

Unlike your home, however, REIT valuations can be changed by the market every day. And as a result, data shows that REITs underperform privately owned properties in the four quarters proceeding a recession.

On the plus side, REITS outperform in the four quarters after a recession. So investors who buy REITs can see higher returns, in addition to the cash flow that REITs provide.

Of course, today’s REITs offer robust diversity against several types of real estate. Today’s buyers should look at data center REITs, which play to longer-term trends in AI. And REITS related to healthcare, which has strong long-term demographics behind it. And finally triple-net lease REITs, which pass on rising costs to their renters.

 

To see the full advantages and disadvantages of REITs right now, click here.

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Economy

Nolan Matthais: This Is What “ALWAYS” Happens Before a Market Crash

Posted on by Smart Investing

A market crash can erase years of gains in just a few months. Given the size of today’s financial markets, a crash will wipe out trillions of dollars of wealth.

However, before market crashes, there are usually some signals of an overheated market.

Understanding these signals can help avoid the worst of a crash. By avoiding losing too much during one of the market’s inevitable pullbacks, investors can be better prepared to profit from the rebound.

What do market crashes have in common? Most start when investors are overly optimistic. That can be measured by high amounts of leverage. That was true in the 1929 market crash, when many individual investors were able to buy on margin.

Today, traders can use tools such as options and futures to go beyond a margin cap in a typical brokerage account. And as of January 2025, right before the latest bear market kicked off, leverage was at a record high.

Another factor behind market crashes can come from trend following. In the months leading up to the 1987 crash, traders started using program trading. These programs would start to sell positions as they sold off. But when everyone rushed for the exit, disaster occurred. In this case, a one-day, 22% decline in the market.

Clearly, traders who deleverage when markets move higher and who get out before the trend shifts can avoid losses.

 

To see the full factors at play before a market crash, click here.