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Past Performance Is No Guarantee Of Anything

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When it comes to investing disclaimers, none beats the one that says, “Past performance is no guarantee of future results.” FINRA and the SEC require this disclaimer for a reason: It’s true. Past S&P index returns are a prime example.

Understanding A Wrap Account

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A wrap account is one in which a brokerage firm manages your portfolio for an annual fee, based on total assets under management (AUM). The fee covers all administrative, commission and management expenses.

Which Stocks Will Surprise In 2018?

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Analysts and investors are noting that 2017 has generally been a good year for the market. As always, however, not every stock benefits when the market is up. Some observers are looking at some of this year’s losers for their potential in 2018.

Shorts Against The Tech World

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Short sellers have recently been taking on tech – and not just any tech – big tech. Specifically, they have targeted Apple Inc. (NASDAQ:AAPLB), Amazon.com Inc. (NASDAQ:AMZNC)and Alphabet Inc. (NASDAQ:GOOGC).

Sprint Talks Merger And Posts Profit

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Things that get the attention of investors include merger talks, especially when confirmed by the CEO, and earnings announcements that include the first quarterly profit in 3 years.

Stocks, Mutual Funds Or ETFs?

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If you’re an investor (or would-be investor), you may know of the 3 main ways to invest in the stock market – individual stocks, mutual funds and exchange-traded funds (ETFs). Each has its pros and cons and none is perfect for everyone.

Cord-Cutting Takes Center Stage

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Subscriber losses will overshadow broadband growth as a topic of interest as pay TV companies report Q2 earnings over the next couple of weeks.

Snapchat Self-Serve Ad Platform Debuts

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The easier social and mobile platforms can make the process of creating ads, the better. Snap Inc. (NYSE: SNAP) just released Snap Publisher, a tool designed to do just that.

China And Military Drone Sales

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Military Drone

Investors looking to jump into the drone space are well-advised to keep up on what’s happening in the military drone sales space. According to The Wall Street Journal, public companies that sell military drones or components face a new and growing problem – Chinese competition.

Thanks to U.S. government regulations banning the sale of U.S. made drones to many countries around the world, Chinese manufacturers have stepped into the void – some say with a vengeance.


U.S. Policy

It has long been U.S. policy not to sell the most powerful U.S. made drones to other countries for fear they might fall into hostile hands. Efforts to forge a global “drone code” that would allow sales overseas have largely been unsuccessful. As a result, China has stepped into the void left by lack of U.S. sales with what some say are knockoffs of U.S. drones at bargain-basement prices.

The Trump White House National Security Council (NSC) is reviewing regulations to determine if there is room to expand drone sales without hurting U.S. strategic interests. In short, the government doesn’t want to allow drones to be sold to countries that might try to use them against U.S. forces.

The China Problem

China has gone from selling cheap low-tech weapons to poor countries to marketing sophisticated armament including stealth fighters and drones to countries like Iraq, Saudi Arabia, Egypt and the U.A.E. The country began exporting strike-enabled drones in 2014.

This makes China the world’s third-biggest arms seller behind the U.S. and Russia. A large part of the reason for China’s newfound stature has been sales of armed drones. According to the Stockholm International Peace Research Institute, “China faces little competition for sale of such systems, as most countries that produce them are restricted in selling the technology.”


U.S. Players Impacted

With the Pentagon estimating that China could export as many as 42,000 aerial drones by 2023, the impact on U.S. drone manufacturing and sales stands to be significant. Companies with interest in the military drone space include AeroVironment (NASDAQ:AVAVC), Ambarella (NASDAQ:AMBAC) and Boeing (NYSE:BAB).

Both Boeing and AeroVironment are considered significant makers of military drones. Boeing is most well-known for its ScanEagle drone, used in the rescue of MV Maersk Alabama's Captain Phillips in 2009. AeroVironment is a big drone maker for the military having sold tens of thousands of drones to the Pentagon over past decades.

Another company, Ambarella AMBA] is known as a manufacturer of chips for GoPro’s (TSX:GPROA)’s action cameras. The company also makes video-processing chips for drone-makers, including the world’s largest drone manufacturer, China’s DJI.

Will Apple Kill Off The iPhone?

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With attention focused on the upcoming 10th anniversary of the iPhone and a new model, currently expected to be released this coming fall, some analysts and observers are suggesting that Apple Inc.’s (NASDAQ:AAPLB) signature smartphone may soon go the way of the Dodo bird.

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