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Buy 4 Media Stocks As FCC Relaxes Media Ownership Rules
Yesterday, in a landmark 3-2 vote, the Federal Communications Commission (FCC) approved a sweeping rollback of rules that were stumbling blocks to consolidation in the media and entertainment industry. FCC’s new proposals will bring an end to several longstanding rules designed to limit the monopoly of local broadcasters. U.S. media accounts for a staggering one third of the global media market. Nevertheless, this industry is lately going through severe fluctuations. One of the key reasons for volatile growth is stringent regulatory norms across all segments of the industry and high barriers to entry. A New Look Less-Restrictive FCC In Janu... -
Finance 0
This Chart Shows Us More Volatility Is Coming
As the Federal Reserve is set to see a new leader, the one area all eyes will continue to watch is the diversion between the S&P 500 and rates on U.S. Treasuries, specifically the 10-year. The two, historically, have moved in tandem, meaning as the S&P 500 rose, so did the yield for the 10-year Treasury. And when the S&P 500 declined for a prolonged period, the yield for the 10-year Treasury declined. This can be explained rationally. As stocks march higher, investors want greater returns, and therefore sell Treasury bonds and buy stocks. Selling bonds pushes those prices down and the yields up. Likewise, when investors are... -
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When Does This All End – Update 2
The US 10 year yield is at 2.34% and compared to utility dividend stocks: American Water Works (Dow Jones Utility: AWK) dividend of 1.87%. NiSource (Dow Jones Utility: NI) dividend of 2.58% and American Electric Power (Dow Jones Utility: AEP) dividend of 3.25%, the question is, which asset class do you trust to provide a return for 10 years? Of course, the choice also involves your ability to judge future inflation expectations (see iShares TIPS Bond ETF TIP) and how extended the price trend is over time for each class. Recently the Dow Utility Index has shown three thrusts higher to new ground, the Dow Jones Utility index is now stru... -
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My Secret Sauce For Crypto Success
The key to making money in cryptocurrency is simple. Buy. Hold. That’s it. Yes, you need good security too. But the most important thing is simply being able to hold on during volatile years. Many are tempted to take profits after they’re up 2X or even 5X. Both would be a mistake (unless you desperately needed the cash). Let me explain why… Cryptocurrencies are a (potential) monetary revolution. Bitcoin could become a common investment asset and value transfer vehicle. As I often point out, ownership today is tiny, with far less than 1% of the population owning any cryptocurrency (aka crypto) at all. But adoption is accelerating incredi... -
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It’s Approaching A Record, But Not For Expansion
Home construction activity bounced back in October from several months of appreciable weakness. It may have been hurricane related where plans and projects delayed by the path of Harvey and Irma were finally cleared to resume. More likely, in my view, it was just the normal variation that the construction figures always have exhibited. Total permits filed were a seasonally adjusted 1.297 million (annual rate), the highest since January. While that was up from 1.225 million in September, it isn’t statistically different from the 1.272 million in August, the 1.275 million in June, or 1.260 million in March. Just from that quick review of the ... -
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Walmart Nation: Mapping The Largest Employers In The U.S.
In an era where Amazon steals most of the headlines, it’s easy to forget about brick-and-mortar retailers like Walmart. But, even though the market values the Bezos e-commerce juggernaut at about twice the sum of Walmart, the blue big-box store is very formidable in other ways. For example, revenue and earnings are two areas where Walmart still reigns supreme, and the stock just hit all-time highs yesterday on an earnings beat. That’s not all, though. As today’s map shows, Walmart is dominant in one other notable way: the company is the biggest private employer in America in a whopping 22 states. WALLY WORLD Using data from 24/7 Wall... -
Finance 0
Stocks And Precious Metals Charts – The Willful Mispricing Of Risk
Today was a stock options expiry. Gold and silver rallied smartly, back up to the levels where they roughly were before they were bushwhacked on the Comex into the FOMC meeting and Non-Farm Payrolls boogie woogie. I guess the theory that this smackdown of gold to retest 1270 earlier this week was a gambit ahead of stock option expiry was tradeable. We are in a new era. I am hearing this on TV and in comments and on chat forums. We are in an era where risk has been abolished by the central banks and their free money. So there is little difference between prime and subprime, between 2 year and 10 year Treasuries, and between stocks and bonds. A...
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