How has Amazon completely changed the landscape for many industries – and new opportunities that lie ahead. If the competition for Netflix is heating up, are they prepared for a fight? Snap vs Twitter vs Facebook – the social media battle royale; Where smaller Internet names, like Yelp and GrubHub, fit in; New opportunities for Google, like Waymo. Video Length: 00:53:57...
I last wrote about the SPX:VIX ratio in my post of October 25. I mentioned that if the price dropped and held below the 200 level, expect volatility to increase and weakness to set in on the SPX…and, that if it failed to do so, we could see the SPX reach 2600 before such a scenario may ensue. Since that date, we’ve seen the SPX stabilize somewhat, bounce around above 2560, and, finally, reach 2600 today (Tuesday), as shown on the Daily chart below. After a brief dip below 200, a new “BUY” signal is about to form on the SPX:VIX ratio, as shown on the Daily ratio chart below. However, it will be im...
Campbell Soup Company (CPB – Free Report) posted first-quarter fiscal 2018 results, wherein both earnings and sales missed the Zacks Consensus Estimate and declined year over year. This marks the third consecutive quarter of negative earnings surprise with fourth straight revenue miss. Per management, the underperformance was due to a volatile operating environment along with intense competition and fast evolving retail landscape. These have been pressuring the company’s top line for a while now. Consequently, shares of the company are down 8.8% in the pre-market trading, owing to dismal first-quarter results and unimpressive outlo...
A ‘funny’ thing happened a month ago. The Treasury yield curve suddenly started to collapse… despite gains in stocks and positive economic data surprises… the question is, why? Here’s one possible reason why: Originally submitted by GovTrader, TL/DR: Tax reform creates pension fund incentive to buy 30yr bonds NOW. Currently, the top corp tax rate in the US is 35%. It looks most likely that rate will drop to 20% when tax reform passes. If you are a corp with an underfunded pension fund, you get a tax incentive to fund the pension THIS YEAR vs in the future when the corp tax rate drops to 20%. Why? Because con...
Stocks Are Expensive The current market is expensive, but earnings momentum and global growth from the emerging markets are keeping the stock market up. The time the expansion has left is dwindling as the yield curve has been flattening lately. However, the last couple years of gains in a bull market are usually the highest, so that doesn’t mean you want to sell out yet. Having a heightened cash position is logical, but only gradually sell when stocks go up. You can also buy on the next dip. Corrections still happen even though there hasn’t been one this year. To support the concept that the stock market is expensive we have the table bel...
How much more depressing can these bearish watch-lists become? Yes, I still maintain one, but sometimes I do question the sanity behind doing so. Nonetheless, I think it is still important, because one day, this honeymoon between the market and the traders that trade in it, will end, and only the prepared will benefit from it. I’ll continue to ride this bull market as long as it will allow, but I am not going to be be blindsided when this love-fest does end. For now, keep it close by, tuck it away, for that day that will most certainly come our way. Here’s the bearish watch-list:...
Below is an updated look at our asset class performance matrix showing total returns for ETFs so far in 2017. We also show total returns so far this month and in the fourth quarter. Aside from a few areas like the US Energy and Telecom sectors plus oil and natural gas, every other asset class on the matrix is positive on a total return basis in 2017. As we head approach Thanksgiving 2017, there’s certainly a lot for investors to be thankful for this year....
A Thanksgiving spread is not laid until the Turkey makes its presence felt on the table. Apart from the bird, another Turkey has been grossing investors’ attention this Thanksgiving. Yes, we’re talking about the country called Turkey. Let’s look at the investment odds surrounding this country right now and see why it’s not winning favor. This time, heightened tensions with the United States and the central bank’s fight to contain inflation are acting as headwinds to Turkey investments. Political Uncertainty Investors are mulling over the case in which the United States has threatened “to expose how powerful figures in Turkey may...
With three weeks of November in the rear view mirror and the signpost up ahead reading “Thanksgiving weekend next exit,” it is time, once again, for me to report my monthly buy(s) and look forward to tuning out all the financial headlines and noise, at least for a few days. As I always say, there is never a perfect time to buy. You just have to look at your portfolio, see what’s missing or needs to be bulked up, look for good relative value and a safe yield and just go for it. Too often we try to “out think” the market as if we, or anyone else for that matter, has a clue as to what will happen in the near term or long term for that ...
The palladium price has not taken a break yet. Palladium is in a relentless bull market. The price of the silvery-gray metal soared in early 2016. The price more than doubled since then, and it shows little sign of slowing down. You can see what I mean in the chart below: Automobile demand is the sole driver of this market. Cars consume 80% of the palladium supply. It’s used in catalytic converters — the big, blocky things that sit behind the exhaust pipe. The palladium converts pollutants in exhaust into less harmful compounds. That used to be a role platinum served. However, platinum prices soared, so car makers turned to palladium. Pl...