agco pre earnings update 2014

AGCO 2014 Pre-Earnings Update

AGCO is an investment idea I’ve been looking at for a while. Here’s the original AGCO analysis. But because of the recent AGCO technical analysis, I’ve held of from building my position. But you know what?

I can’t stop thinking about AGCO. It’s a wonderful business and it’s  significantly cheaper than the S&P-500 average no matter how you slice it: Price/Earnings, Price/Book, Price/Sales, Price/Cash Flow AGCO looks undervalued (source). And valuation aside…

The business fundamentals look strong. AGCO management is focused on margin improvement and expanding their global footprint. The company is aggressively buying back shares. So here are some factors I’m thinking about before AGCO reports earnings next week:

AGCO 2014 Pre-Earnings Update:

  • I don’t like to give insider buying too much credit. Because managers aren’t necessarily good investors. But when someone takes a massive stake, it’s hard not to pay attention. In this case, Mallika Srinivasan has directly and indirectly acquired over 5.6M shares of AGCO (AGCO insider buying data from So who is this mysterious buyer? Mallika Srinivasan is a former Ernst and Young Entrepreneur of the year and Chairman and CEO of TAFE, a $1.6B Indian tractor manufacturer. She’s also on the board of AGCO and TATA motors. Draw your own conclusions from this.
  • AGCO sells farm equipment through a network of dealers. So connections in the agriculture company are obviously important. An AGCO executive getting elected to president of CEMA – the association for agricultural machinery in Europe – seems like a positive development for AGCO’s influence in Europe.
  • AGCO has some exposure in Russia and Ukraine, which some cautious investors might see as a red flag. But AGCO operates in over 140 countries around the world. So it’s likely the influences of any regional conflicts will be minimal.
  • Going into earnings, analyst expectations are mixed on AGCO. But even though the average rating is HOLD, the average price target of $59 represents almost 15% upside from here.

What do you think about AGCO going into earnings this year?

And By The Way: If you’re looking for more insight and ideas on how to analyze stock picks, I encourage you to download my ebook below, The Intelligent Swing Trader. You’ll also get weekly emails sharing the best tips and tools for improving your approach to the stock market.

The First Tycoon Book Review

The First Tycoon Book Review

Read this book review of The First Tycoon, by TJ Stiles to see if this biography is for you

The First Tycoon, by TJ Stiles, is a story of “The Epic Life of Cornelius Vanderbilt.”

The First Tycoon is an incredibly well-researched and well-written biography of one of America’s most successful and powerful businessmen of all times. But don’t take my word for it…

The First Tycoon is a Pulitzer Prize winner, a National Book Award Winner and a New York Times Notable Book. So in this book review I’ll give you a detailed look at what you should expect from The First Tycoon.

I’ll share my favorite parts of The First Tycoon so you can know exactly what you’re in for before buying the book.

Book Summary – The First Tycoon:

The First Tycoon tells the dramatic and inspiring story of Cornelius “Commodore” Vanderbilt. The book starts in 1794 and spans the entire life of this American business icon. It details his early days on his father’s New York farm. And then shows how Vanderbilt first got into business by developing his skills as a sailor and running a small sailboat ferrying supplies and people between Staten Island and Long Island.

From there, things only get more exciting.

The First Tycoon shows the characteristics and influences that shaped Vanderbilt’s approach to life and business. It explains how he got his first job, and saved up money to buy his own boats and start his own enterprises ferrying people and supplies around New York Harbor and the surrounding areas.

From there, Vanderbilt continues to get involved with shipping, sailing and the exciting new development of steamships. The biography also does a great job showing how Vanderbilt’s character traits influence his approach to business, and make him an efficient and effective business operator.

Of course, Vanderbilt’s rise to power wasn’t a smooth sail.

The world of early American enterprise was a competitive and challenging world, where disputes were often settled with fistfights. It’s neat to see how Vanderbilt relied on his physical stature and strength to intimidate competitors and slap sailors into place.

From there, Vanderbilt’s empire continues to grow, as he established steamship lines around America and played a pivotal role in the development of California. He also worked closely with the government, and went to great lengths to support the North during the American Civil War.

vanderbilt railroad tycoon

Vanderbilt used innovative corporate structures to develop a railroad empire.

Vanderbilt’s success continues to snowball as he turned his focus from steamships to railroads. Vanderbilt used the new corporate structure to build an empire and a Dynasty that would last long after he passed away.

All in all…

The First Tycoon is an incredibly eye opening and informative read that shows the factors, forces and influences that made Vanderbilt such an iconic business man.

Now that you have an idea of what The First Tycoon is all about, let me tell you what the best parts of the book are.

The Best Parts of The First Tycoon:

I can’t stress it enough: The First Tycoon is an amazing read. It’s a very inspiring story. And the book gives unparalleled insight into this American business icon. And there are two aspects of the book that I keep reflecting on.

First of all, The First Tycoon does a wonderful job highlighting not only the history and development of Vanderbilt, but also the development of New York City, and America as a whole. This shouldn’t come as a huge surprise, since Vanderbilt was such an influential figure in the industry that helped power America’s development. But it’s incredibly insightful to see how Manhattan developed from a little trading outpost to the hub of American finance and business.

Secondly, The First Tycoon is incredibly well-researched. The biography gives a fair, objective and balanced look at the life of Cornelius Vanderbilt. While a lot of other biographies of Vanderbilt focus on his status as a “robber baron,” The First Tycoon takes a much more careful and nuanced look at the life and times of Commodore Vanderbilt.

One particularly interesting aspects is how Vanderbilt not only used his operational abilities to grow his business, but also how he embraced the innovative corporate structures that were developing in the mid-1800′s.  It’s hard to appreciate now. But Vanderbilt’s ability to build an empire using  consolidations of corporations was entirely unprecedented at the time.

The First Tycoon – The Final Word:

The First Tycoon is a great read, especially if you have some time to relax this summer or if you are looking for inspiration for your own business ambitions. Before reading this book I really didn’t appreciate the role of Cornelius Vanderbilt. But now I can’t stop thinking about his amazing influence on the world of commerce. For that reason, I recommend you buy The First Tycoon on Amazon.

The only word of warning is that this book is a bit of a tome. It comes in at about 600 pages, and although the story of Vanderbilt moves quickly it is a bit of a commitment to get through this book. But when you realize how much Vanderbilt accomplished it’s amazing the book wasn’t longer. If you’re still looking for more information on The First Tycoon, check out the video book review below.

The First Tycoon Video Book Review:

your agriculture company investment analysis 2014

Your Agriculture Company (NYSE:AGCO) Investment Idea Analysis 2014

Your Agriculture Company (NYSE:AGCO) is an investment idea that I looked at a couple of months ago. You can read the in-depth AGCO investment analysis here.  In fact…

Most of the thesis in the above AGCO analysis is still in place. On paper, things look pretty good. And in case you’re too busy to read the above, the basic gist is as follows:

AGCO manufactures and sells farm equipment, like tractors, combines and grain storage facilities. While sales have leveled out a little earlier in 2014, operations are going well. If you think people will keep eating food, AGCO seems like a good way to profit from it.

And one more thing…

AGCO’s operations generate a cash flow yield of over 10%,  and they’re using a ton of it to buy back shares. It’s hard to imagine

But could this tractor company be temporarily under water?

Well, let’s take a look at some recent price action in AGCO to set the stage…

AGCO Weekly Stock Chart Analysis:

AGCO weekly chart july 2014

AGCO is in a strong weekly uptrend. But in the last few quarters some big selling has shown up. (Click to Enlarge)

As you can see in the chart above, over the last few years trading in AGCO has generally held to an upwards trend. It’s now hugging the trend, and the valuation looks pretty good. On the other hand…

If a long term down trend is just starting, then it’s probably a bad time to initiate a trade or investment. So let’s zoom in:

AGCO Daily Stock Chart Analysis:

AGCO daily chart july 2014

On the daily time frame, AGCO has seen a lot of selling. (Click to enlarge).

As you can see, there’s a ton of selling hitting the stock. The red bars are, on average, bigger than the green bars. Surely that can’t be good. And it’s not.

But there’s a glimmer of hope. Because all in all, AGCO has held up relatively well despite the selling. And this could be a good sign. So currently…

AGCO sits at a bit of a crossroads. If it fails to find support, the sellers could finally crack their nut. And that could lead to a tough harvest for stock holders this fall. But when you look at the fundamentals, the company is a little under-valued, generating huge cash and has a very strong business. So what’s an individual investor to do?

At this point, I believe in the long term success of the company. They have a strong balance sheet, make a ton of money and have strong global exposure.  And management is using all that extra cash to buy up a bunch of outstanding shares. I’m happy if there’s an interim dip in price, (which ironically will improve the efficacy of the share buybacks.)

And (disclosure) because I already own a little AGCO, I’m not in a rush to buy more just yet (especially since there’s no dividend). I plan to add to my position if AGCO forms a short-term double bottom at $50.50. Or I’ll start buying if the stock begins to put in a couple of higher lows.

Here’s the bottom-line:

Success in active investing can really be helped by a basic awareness of technical analysis. A little position management can go a long way. And it’s not hard to do a bit of “if/then” contingency plan.

Stocks oscillate in price. Rather than ignore this you can do a little legwork to make it work in your advantage. It’s not rocket science. So…

Although I’m eager to buy AGCO for the long term, I’m happy to wait for an intelligent entry. I’ll wait for an uptrend to resume (seen by 2-3 higher lows) or on the bounce up from a bounce to $50.40. That’s intelligent swing trading.

And By the Way: If you’re still looking for more information, download my eBook – “The Intelligent Swing Trader” –  on the side of this page. You’ll also get email updates for new trade ideas that show you how to determine if stock market opportunities are for you.

nevsun resources analysis 2014

Nevsun Resources Investment Idea Analysis 2014

Nevsun Resources (NYSE:NSU, TSE:NSU) is a small cap mining company headquartered in Canada, but operating in Africa. So what’s the story with NSU? Why is it a stock pick worthy of analysis? And is it good for a trade or investment?

Well, I’m glad you asked.

In the last year or so, NSU has made the transition from a gold miner to a copper miner. And by all accounts, things are going pretty well. For an in-depth update on the fundamental picture, try reading this Nevsun Resources Seeking Alpha Article.

The May 7 2014 NSU conference call is also worth reading.  For example, here’s a compelling excerpt:

“To give you a sense of how well we [NSU] have performed so far this year, I point out that during the first quarter of 2014 alone, our net income and cash flow from operations was greater than all of 2013.

So while there is some political risk for NSU’s operations, they are really starting to ramp up sales. Their dividend yields over 4%. And there are also some other highlights worth mentioning.

For example, the company’s market cap is about $780M, and they have over $400M in working capital (about $1.69/share in cash with no debt). And since the copper production transition is nearing completion, CapEx should could down a lot this year, which will provide a big boost to free cash flow. To get a better picture of NSU’s financial condition you can read NSU’s key stats on Morningstar.

Here’s one more consideration: NSU could benefit if the price of copper does indeed finally start moving higher. Take a look for yourself…

JJC nevsun resources comparison

The price in copper could be starting to trend higher. This would be another tailwind for JJC. (Click to enlarge)

Now let’s look at NSU more specifically. While the stock is still dealing with some overhead supply, it’s gaining momentum over the longer term and looks to be peaking above key resistance. And it’s been gaining steam above the 20 day moving average, while the 50 and 200 day moving averages are turning upwards, which might be a sign momentum is picking up.

nsu daily chart july 2014

NSU has been building a stable base. Will this trend strengthen? (Click to Enlarge).

If you take a closer look, the NSU hourly chart shows some large buyers coming in to support the trend.

nsu hourly chart july 2014

Will buyers keep showing up to support this trend? So far so good. (Click to Enlarge).

For the sake of disclosure, you should know I own a small position in NSU. I’m looking to add more shares on a pullback to the 20 day moving average. And if the operations remain on track I’ll double down on a pullback to 3.50. That’s not investment advice and you should do your own research. But I wanted to share how I’m thinking about this stock idea. Make sense?

Updated:  Since originally drafting this post, NSU has pulled back a little bit, but remains above the upward-sloping 20 day moving average. I am now watching to see how NSU consolidates before adding more to my position. If NSU bases out for a few days above the 20 day moving average and then starts to go higher I may add more. If it pulls back to the 20 day moving average more sharply, I’ll probably buy it once it starts bouncing. Again just sharing my thinking for educational purposes and it’s no endorsement that trading plan is appropriate for you.

And By The Way:  If you’re looking for more information on how to find and analyze your own stock ideas, you can download my free eBook using the form below. You’ll also get weekly tips and tools to help you make more confident stock market decisions. Check it out!

stock market crash 2014

2014 Stock Market Crash Predictions

There are lots of 2014 Stock Market Crash Predictions. And going into the second half of the year, you might be wondering if the stakes are getting higher for a stock market correction in 2014.

And I wouldn’t blame you.


In this short post let’s look at some of the most popular predictions for a 2014 stock market crash. Additionally, I’ll also share some external resources that I use as potential indicators for a stock market slow down. Sound good?

That means by the end of reading this post you should have a strong understanding of why people have predicted a stock market crash in 2014, as well as some possible signs to keep an eye out for. I can’t guarantee to protect you from a stock market crash in 2014 or any other time. But here are some of the things I’ve seen people talking about.

Predictions of a 2014 Stock Market Crash:

While predicting a stock market crash is not really my style (in 2014, or any other year), it’s still an interesting intellectual exercise to think about the possibilities of stock market mayhem.

But here are some of the more reputable individuals I follow who have warned of a stock market crash this year.

Perhaps the most famous word of warning for stock market participants in 2014 comes from David Tepper. At the SALT conference in Las Vegas a few months ago, Tepper warned fund managers not to be “too friggin’ long”. This call for prudence in the 2014 stock market made major headlines earlier in the year.

Another place to look for stock market crash predictions is the ForEx market.

The world of currency trading is still a bit foreign to me (no pun intended). But as I understand it, keeping an eye on the global money flow can give you an added advantage when navigating the equity universe. That’s why my attention was piqued when ForexKong made a 2014 US equity top call. So if the Yen can make a sustainable move higher this is a definite warning sign of a possible 2014 stock market crash.  For stock traders, watch if FXY can rally above  the 96 level.

Back in the world of common stocks, another 2014 stock market crash prediction that caught my attention came from former BlackRock portfolio manager Bluestar. A few months ago he warned “We Are Topping.” That link shares some hard to ignore facts about the global liquidity situation and what i means for individual investors, especially in terms of growth stocks.

So as you can see, there are a number of big and small market players warning about a 2014 stock market crash.  But whether a crash unfolds, well, only time will tell. So how are you preparing for a market crash in 2014? Is it something you would predict too?

And By The Way: If you’re feeling a little unsure about your stock market posture, I encourage you to download my free eBook below. You’ll get an inside look at how I developed an approach to navigate the stock market and improve my returns. Each week, I’ll also send you my favorite tips and tools for improving your approach to the stock market. Why not give it a try?

social finance and impact investing news

Social Finance and Impact Investing News

The world of social finance and impact investing continues to gain traction. That’s why in previous blog posts we’ve written about green investing ideas and investing in responsible companies. So what is social finance?

Social finance is an umbrella term, incorporating a range of approaches that incorporate varying degrees of environmental and social considerations into investing decisions.

“Responsible investments” and “socially responsible investments” (or “SRIs”) are very important to publicly traded securities market, and involve screening companies for Environmental, Social and Governance (ESG) factors. A lot of major banks and mutual fund companies now offer SRIs for individual and retail investors.  Another type of social finance are impact investments.

Impact investments are usually made in privately held companies that offer a market-based solution to a social or environmental issue. Impact investments seek to deliver measurable social impact and financial return. As you can imagine, this is a pretty innovative aspect of investing.

So when I saw these new resources on social finance and impact investing, I wanted to share them with you.


It seems evident from the 2014 World Wealth Report that I’m not the only one interested in socially responsible investing and social finance. In fact, the aforementioned wealth report goes on to state that…

“92% of high net worth individuals feel that investing their time, money or expertise to make a positive social impact is important to them, with 61% describing it as very or extremely important. Globally, high net worth individuals are looking to play a great role in supporting their social impact objectives.”

Pretty impressive, right? It’s nice to see investors becoming more responsible about conscious capitalism.  So when I saw these new social finance research papers I wanted to make sure to share them with readers of

New Social Finance Research in 2014:

RBC (NYSE:RY, TSE:RY) is a reputable thought-leader in the world of social finance. And so it should come as no surprise that they’re dedicated to publishing innovative new research on the field of social finance.

Their Community and Sustainability group has done a wonderful job compiling Social Finance Research, that provides valuable insight for anyone interested in the space. And they’ve just released a new white paper that shares great context and insight into the evolving world of social finance and impact investing.

The paper is called “Financing Social Good – A Primer on Impact Investing in Canada.” This research takes an in-depth look at the intriguing business revolution being catalyzed by social and environmental problems. Learn how market-based solutions are changing the way investors think about returns and capital allocation in the face of complex social and environmental problem.

As you can see, this resource goes a long way to helping bring individual and institutional investors up to speed on what’s happening in the world of social finance and impact investing. It’s important stuff. And I encourage you to bookmark the RBC social finance resource page as they are always updating it with new information.

And By The Way: If you want to stay up to date with a contemporary approach to intelligent investing, I encourage you to download my eBook below. You can get your copy free to see how I’ve improved my approach to stock market decision making to make capital gains more consistent. You’ll also get free tips and tools each week with my favorite stock market tips and tools.

The Warren Buffett Way Book Review

Warren buffett way book review

Read this book review to see if The Warren Buffett Way is the right investing book for you…

The Warren Buffett Way, by Robert G. Hagstrom, is a New York Times best seller with over 1 Million copies sold. And in this book review, I’ll tell you why it’s such a great investing book.

And you better listen up…

Because to be honest, The Warren Buffett Way drastically exceeded my expectations. Seriously! I thought I was in for a drab overview of Buffett’s investment style and life.

But instead:

I was pleasantly surprised to find The Warren Buffett Way offered much more insightful advice for value investing disciples trying to apply the Oracle of Omaha’s wisdom.


In this book review, I’ll explain why I liked The Warren Buffett Way as much as I did. Thus, by the time you’re done reading this book review, you should have a good idea as to whether or not The Warren Buffett Way is the right investing book for you.

And since I just finished reading The Warren Buffett Way this morning, the lessons and ideas are still fresh in my mind. Now let’s get down to business…

What To Expect From The Warren Buffett Way:

I was a bit hesitant to read The Warren Buffett Way because I’ve already read so much about Buffett. I’ve read all of the Berkshire Hathaway Annual Shareholder Letters. I’ve read The Snowball. And I’ve read Lowenstein’s excellent biography, Buffett: The Making of an American Capitalist.

But I’m glad I decided to give it a shot.

That’s because…

The Warren Buffett Way isn’t about Buffett, as much as it’s focused on understanding how Buffett makes investing decisions (and how you can copy him). I was pleasantly surprised to find that The Warren Buffett Way cuts right to the chase.

The Warren Buffett Way introduces and explains important investing concepts that have shaped Buffett’s outlooks, like the Margin of Safety idea, and the allegory of Mr. Market.

Beyond the ideas, The Warren Buffett Way identifies other investors like Benjamin Graham, Phil Fisher and Charlie Munger, and shows you how they shaped and influenced Buffett’s investing methods.

Finally, all of this information is nicely wrapped up in a summary of Buffett’s 12 investing tenets. These 12 questions are a great jumping off point to evaluate your own investing ideas and stock picks like Buffett might. This thought-framework is especially helpful for readers looking to apply the lessons found in this investment book.

Having read so much about Buffett, none of these ideas or topics on their own were new to me. But the book was a valuable refresher on these important schools of thought. And the added clarification about Buffett thought about these ideas was more eye-opening than I had imagined it would be.

And I haven’t even told you about my favorite part of The Warren Buffett Way yet…

What I Liked Best about The Warren Buffett Way:

The Warren Buffett Way really dispelled with all of the fluff and mythology around Warren Buffett. Instead, it got right down to the business of value investing, and how Buffett applied it.


I think the best part of The Warren Buffett Way is how the author looks back on some of Buffett’s most prominent investments, and compares them to the 12 value investing tenets Buffett lives by. It’s neat to see how the ideas stack up compared to these criteria. Additionally, the investment examples span a course of 30-40 years, so it’s neat to see how Buffett’s investment selection criteria truly do stand the test of time.

Additionally, there is a section of the book on portfolio management that provided a lot more insight into how Buffett thinks about position sizing and risk management. I hadn’t seen these topics discussed from a Buffett perspective in this much depth before, so I also really liked this aspect of the book.

My only “complaint” about The Warren Buffett Way is that some of the chapters were quite long (like the one with the 9 investment examples). This is hardly a real criticism. But it’s the biggest drawback of the book I could think of. So anyway, by now you must be wondering…

Is the The Warren Buffett Way the best investing book for you?

The Warren Buffett Way – The Final Word:

The Warren Buffett Way is a fantastic summary of the way Warren Buffett makes investment decision. While Buffett didn’t provide input on the book himself, he did review the book and apparently didn’t spot any major red flags. So whether you are new to value investing, or a dedicated student of Buffett, I recommend you buy The Warren Buffett Way on Amazon today.

The Warren Buffett Way is an easy and fast read that provides a concise synopsis of Warren Buffett’s investment decision-making methodology. With that in mind, can you really afford not to read The Warren Buffett Way?

If you’re still curious to learn more about The Warren Buffett Way, I encourage you to watch the video book review below….

The Warren Buffett Way - Video Book Review:

Stock and Option Trading Products and Services

stock and option trading products

Can you ring the cash register with these stock and option trading products and services?

There are thousands of stock and option trading products and services available online.  So I’ve done my best to compile the most popular and most effective stock and option trading products and services for your review.

For the sake of disclosure, you should know I personally haven’t used all these products and in some cases these are affiliate links. I’ve organized the services so that you can easily browse them based on your trading style and investment preferences.

There are plenty of trading products, services and systems available so there is bound to be one for you! And By The Way: Email jeff[at] if you want your productive included on this list of stock and option trading products.

Now here are some of the best option trading products and services available on the market today…

Option Trading Products and Services

Penny Stock Trading Products and Services

Stock Investing Products and Services

ForEx Trading Products and Services

In addition to the stock and option trading products and services above, I also encourage you to browse our investing book reviews. You’re sure to find a plethora of information to help you make smarter investing and trading decisions in the stock market.

stock options investing signals

Stock Option Investing Signals

Stock Option Investing Signals are a great tool to help you juice your portfolio returns. By fine-tuning your investing signals you can make stock options a constructive contributor to your net worth. Sound good?

Now I’m no OptionsAddict. But I’ve learned a thing or two about trading options over the years. And in the blog post below I’ll share the best stock option investing signals I’ve seen. Plus…

At the end of this article, I’ll also share a little more information about how you can apply these option trading tactics and signals depending on your investing or trading time frame. Now let’s get down to business.

Unusual Stock Option Investing Signals:

The neat thing about stock option trading, is that the stakes are high. Options are highly leveraged and while they can expire worthless, they can also explode to the upside. That’s why…

Paying attention to unusual option activity can be of benefit to stock market (and option) investors and traders. That’s because you know there are smart traders making big bets. And monitoring unusual option activity in the leading stocks can help you get on the right side of this important signal.

My favorite place to keep an eye on unusual stock option investing signals are the CBOE and Schaeffer Research. These two sources give you up to date information about abnormalities in the options market that serve as a great signal.

Now, if you want to go beyond the unusual option activity, you can also look at unusual volume. Volume is an important indicator that can add a lot of context to the moves in the underlying stock. So looking at unusual volume activity can also be an actionable signal.

One of the best ways to get unusual volume activity is from the  unusual volumescreener at Finviz. The great thing about Finviz is that you can easily pare this signal up with your favorite technical and fundamental screeners. If you’re looking for ideas, check out these Finviz stock screening videos to get inspired.

Now just one more note about applying these stock option investing signals…

Applying Stock Option Investing Signals:

The one thing to keep in mind, is that option signals are very time sensitive. Depending on the timeline and the strike price of your options the signals will influence the price of the option to a varying degree. If you regularly trade options, this won’t come as a surprise.

On the other hand, if you’re a longer term investor looking to buy common stock, you can use option signals as an indicator of a shorter-term move. When these stock option investing signals start to line up with your fundamental investment analysis you can really start to knock your stock picks out of the park. Sound good?

And By The Way: Stock option investing signals are only a small part of intelligent portfolio management. If you want to learn more about improving your approach to the stock market you might enjoy my eBook below. It’s totally free. And you’ll also get the best tips and tools each week to help you make smarter stock market decision making.

what does stock market investing provide

What Does Stock Market Investing Provide?

What Does Stock Market Investing Provide? It’s a good question. And since we spend so much time here thinking about stock investing, it makes sense to spend some time reflecting on what investing actually provides you.


In this short blog post we’ll look at what stock market investing provides, for individual and retail investors. The truth is, stock market investing provides more than most people can imagine. But for some reason or another it’s not something most of learn in school.

The sad truth is:

Money is an important part of life. And while a lot of people will say it’s taboo to discuss, if you want to get ahead you need to be comfortable with your capital. So let’s look at what stock market investing can do for you…

Here’s What Stock Market Investing Provides:

I’ve thought long and hard about what stock market investing provides. So below is a list of ideas that you’d be wise to keep in mind if you’re thinking about investing your money in the stock market.

Income: Investing in the stock market allows you to buy mutual funds, index funds and even common stock that all generate income. Dividend yielding companies are a great way to grow your passive revenue. And by accumulating a portfolio of income generating companies you can watch your net worth snowball over time. Dividend reinvestment accounts make it easy for investors of all shapes and sizes to grow their income generating investments over time.

Capital Appreciation: Investing in the stock market doesn’t just provide income. It also has the potential for capital appreciation. That’s because when you buy common stocks in a publicly traded company you have a chance the stocks will go up. Of course, they can also go down too. But long term investors can count on a couple percent of capital appreciation each year. When combined with dividend income this can really do a lot to grow your net worth.

Liquid Assets: Unlike buying a house, investing in the stock market is an easy way to get liquid assets. With discount brokerages and direct investing options, you can buy and sell stocks yourself, for a very limited commission. Instead of paying thousands of dollars to your real estate agent and waiting a few months to sell your house, you can get in and out of your stock portfolio incredibly easily. This liquidity that the stock market provides is another great reason to invest in your best stock picks.

Global Exposure: Investing in the stock market is an easy way to get exposure to other economies around the world. If you want to diversify beyond where you live, the stock market can provide you with ample investment opportunities to whichever country you like. There’s no other easy way to get this global exposure provided by the market.

Inflation Protection: While this might be a little-bit debated, stock market investing generally provides better inflation protection than buying bonds or leaving your money in cash. Since stocks are priced in dollars, they’ll tend to adjust for inflation. Additionally if you invest in food and energy companies, the cost of inflation can generally be passed on to the customer so you are provided with further inflation protection.

As you can see, there are myriad benefits provided by stock market investing. And as you might have guessed, this little blog post is only scratching at the surface. I’m sure if you put your head to it you could think of even more benefits stock market investing provides. No matter your age or income, stock market investing is an important part of your wealth management strategy.

And by The Way: If you want to learn more about improving your approach to the stock market, I encourage you to download your free copy of my eBook below. You’ll learn how I developed a common sense approach to the stock market. You’ll also get free tips and tools each week to help you make more money in the markets.