Written by Nicolas Rabener, FactorResearch INTRODUCTION The year 2017 might be regarded as the year where cryptocurrencies became mainstream. Investment funds focused on cryptocurrencies were launched, the CBOE announced Bitcoin futures for the end of the year and some everyday expenses like booking flights at Expedia can be paid in Bitcoins. Institutional investors have been cautious entering the space, but are slowly getting more active given that the market capitalisation of cryptocurrencies reached $150 billion and returns for many cryptocurrencies are up several hundreds of percent year-to-date. Fundamental analysis of cryptocurrencies i...
Morgan Stanley analyst Adam Jonas said he expects Tesla shares to be extremely volatile in 2018. He assumes that Tesla’s battery module production bottlenecks may be resolved in weeks, which could result in the stock price rising to $400 or more over the next few months, he tells investors. However, following a “hypothetical 1H18 pop,” he could see longer-term risks in the story and more serious headwinds to come to the forefront of investors attention, Jonas adds. The analyst maintains an Equal Weight rating and $379 price target on Tesla shares, which closed yesterday at $308.74. ...
from the American Chemistry Council The Chemical Activity Barometer (CAB) notched another solid increase over October’s reading both on a three-month moving average (3MMA) basis and an unadjusted basis. The CAB was up 0.4 percent and 0.3 percent, respectively. The increases continued a bounce back from the effects of Hurricanes Harvey and Irma. Compared to a year earlier, the CAB is up 3.3 percent on a 3MMA basis, a pace that continues to suggest further gains in U.S. commercial and industrial activity into 2nd quarter 2018. The Chemical Activity Barometer has four primary components, each consisting of a variety of indicators: 1) ...
The National Association of Realtors (NAR) estimates sales of existing homes rose 2% in October 2017 from a downwardly revised September estimate. The trade group tries its best to put recent results in the best possible terms, claiming in its press release that at 5.48 million (SAAR) the number of resales is “their strongest pace since June.” That’s technically true and also meaningless. Year-over-year, home sales fell for the second straight month. At a level of 5.48 million in October 2017, it’s not meaningfully different than the 5.45 million registered in July 2015 more than two years ago. The housing market has not fallen in dan...
Markets gained traction in the third quarter primarily due to strong quarterly earnings which came in above estimates. This led to benchmarks hitting record highs in the period. Another major push came in the form President Trump’s new tax code which sought to reduce tax rates considerably. Also, the U.S. economy has improved at an astounding rate for the past two quarters and unemployment hit its lowest level since 2000. Under such circumstances, we believe that a relatively risky investment would fetch great returns. Banking on such positive vibes, the addition of mutual funds with huge growth potential to your portfolio would prove to be...
The larger the bird, the longer it takes to cook. Luckily, the handy red timer thingy pops when the bird of any size has roasted to perfection. Why then, do some people still overcook or undercook a turkey? Perhaps, it’s because they ignore the pop-up technology. The market’s indices made new all-time highs. Not surprising given the bullish sentiment, especially in Technology or Sister Semiconductors (SMH.) The theory I go back and forth on – the Fifth Wave of Disbelief – assumes the last of the bears finally throw in the towel. And then, the blow off rally begins. For now, we can compare the bears to those who ignore the mark...
Bitcoin Getting Larger But Not Safer In a previous article it was mentioned that with the recent excessive speculation in bitcoin, that bitcoin’s volatility since has been increasing after it went through a stretch of relative calmness. This aspect is important to review because in the past few years, bitcoin proponents have said that the volatility in bitcoin would decline as it got older and larger. With bitcoin only a few years old and worth about $10 billion, it was easy for a few investors to manipulate the price action causing it to sway rapidly without any fundamental catalyst. Bitcoin is now 8 years old which is relatively young com...
Awful. Simply put, the word awful sums up the year for investors with ties to stocks in the retail sector not named Amazon.com (AMZN), Home Depot (HD), or a handful of other companies. It hasn’t been just 2017 either. As shown in our Death By Amazon Index (DBA) below, the retail sector has been in a tailspin for over two and a half years now. Since 2012, the index has rallied 29.3%, which is less than a third of the S&P 500’s 93.4% gain. More recently, though, things have been even worse. Since its peak in Spring 2015, the DBA index has lost more than a third of its value, and in just 2017 alone, it is down 15% in a year where the ...
Ignore gold, ignore earnings expectations, ignore the dollar, ignore the yield curve… and… Video length: 00:02:44 German stocks sum it all up… Buy The F**king German Government Crisis… (even as EUR stays weaker) Record Highs all around in ‘Murica… As once again the European Session (green boxes) cominated the ramp… As VIX was slammed back to a 9 handle… Here’s a couple things though… The last 5 days have been quite a ride for ‘shorts’… as “Most Shorted” stocks have soared over 6% – This is the biggest short-squeeze since Dec 8th 2016 (which w...