Wyatt Research Week-in-Review: November 16-22

How much higher can stocks go?
That’s a question investors and Wall Street analysts alike are asking themselves as the market enters Thanksgiving week at fresh all-time highs. Stocks bulldozed their way further into record territory this week.
Traditionally, late November and December is the best time to invest thanks to the holiday shopping season. That gets underway in earnest the day after Thanksgiving, on Black Friday. The average American will spend $804.42 on presents over the course of the next month. Needless to say, that’s quite a boost to the U.S. economy – and the stock market.
Since 1950, the S&P 500 has risen an average of 1.7% in December, better than any other month. It picks up momentum from the Black Friday shopping weekend, which these days accounts for roughly half the total holiday spending, and keeps it going into January when all those glowing first-quarter earnings reports come out.
With stocks up 7% in the last month, is there any room left to run? Can this furious rally continue well into the New Year?
History says yes. The law of averages says no. By early December, we may already know the answer.
In the meantime, here is a sampling of what else was on our analysts’ minds besides the short-term fate of the stock market. It includes Warren Buffett’s latest wealth-building investment; who benefits from net neutrality; and the one energy segment not hurt by low oil prices – among other tantalizing topics.
How This Trash Stock Became a Dividend Treasure – The fastest dividend grower on the market has been a trash stock for more than four decades. Literally.
Big Data Stocks Are Back in Style– A number of companies are working to build search engines for machine-generated data – essentially to do what Google did for web content. One company in particular is leading the charge.
Warren Buffett Builds Wealth … Again– Berkshire Hathaway is selling Procter & Gamble (NYSE: PG) and buying Duracell. The move is classic Warren Buffett.
Will Black Friday Send Stocks Even Higher?– Black Friday typically kicks off the best two months to invest in the market. Can it happen again with stocks already at record highs?
Mega-dividends-Ian Wyatt has found three stocks that pay dividends so big you can retire on them. The Wall Street Journal calls them “mega-dividends.” These stocks have a history of consistently raising their dividends quarter after quarter. In fact, one of these cash-cranking companies just hiked its dividend 10-fold!
Will Small Cap Stocks Bounce Back in 2015?– Small caps are having a rare down year in 2014. Don’t expect that trend to hold in 2015.
Target Offers Invaluable Investing Lesson; Few Will Listen– Buying into bad news can prove remarkably profitable, but most investors lack the fortitude.
The Real Winners of Net Neutrality– Net neutrality will have major implications for the Internet going forward, but the market might be missing one of the biggest opportunities.
The One Energy Segment Not Hurt By Low Oil Prices– Low oil prices are damaging most energy companies. Except one particular segment.
Should AOL and Yahoo! Merge?– Speculation is brewing about whether Yahoo! (NASDAQ: YHOO) might use some or all of the $5 billion windfall it will get from the Alibaba (NASDAQ: BABA) IPO to purchase AOL (NYSE: AOL). It’s an interesting proposition. But should it happen?
VIDEO: Woody Allen, Stock Trader– Want to know the secret to becoming a successful stock trader? Woody Allen may have the answer.
Thanks for spending time with us this weekend. We look forward to helping you get ever closer to your investment goals next week.