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  • Finance 0

    Critical Threats To 2017’s Bull Market – Part 2: Overhyped Risks?

    << Read Part 1: Critical Threats To 2017’s Bull Market – Macro View With The Donald J. Industrial Average surpassing new record highs every day, questioning this bull market’s continued existence remains heresy outside of dark little corners of the internet. However, continuing his series, Bloomberg’s macro strategist Mark Cudmore dares to mention a few of the more prescient ‘known unknowns’ that could hamper the meltup for the rest of the year… and in the case of today, some that may not. Via Bloomberg, Overhyped market risks provide just as many trading opportunities as genuine ones. It’s...
    On October 18, 2017 / By
  • Finance 0

    Welltower: A Low-Risk, High-Yield REIT With A Long Growth Runway

    Real Estate Investment Trusts, or REITs, are a simple way for regular investors to gain exposure to the real estate sector.  While there are many different types of REITs to choose from, healthcare in particular has strong long-term potential growth due to highly favorable demographic trends. Let’s take a look at Welltower (HCN), America’s largest medical REIT, to see why this industry blue chip may be a great fit for conservative high-yield investors, especially those looking for the best high dividend stocks. Business Overview Founded in 1970 in Toledo, Ohio, Welltower has grown into America’s largest medical REIT and is the f...
    On October 18, 2017 / By
  • Finance 0

    Swing Trading Strategy Report – Wednesday, October 18

    My Swing Trading Approach I have plenty of flexibility to play the market in either direction, depending on what the market ultimately wants to do. Only way I will get short is if the market shows signs of breaking down.  Indicators VIX – Some strength over the last two days. up 4% and at 10.31.  T2108 (% of stocks trading below their 40-day moving average): Pushing lower 5 of the last 8 trading sessions. Currently at 68%, off its high of 78%. Moving averages (SPX): 7 days straight, SPX has tested the 5-day moving average. So far it has held, but how many more tests before it ultimately breaks.  Industries to Watch Today Health Car...
    On October 18, 2017 / By
  • Finance 0

    US Stocks Reach Historic Highs

    Don’t buy Your Dow 23,000 Souvenir Hats Yet The Dow Jones briefly tipped over the 23,000 mark, the first time this has every happened since the founding of the index. Although the Dow closed slightly below the historic high, it did continue its sequence of 50 record closing. Even though it saw a retreat during the trading day, it still managed to close up 40.48 points.  This not only continues record closings it also continues a nine-year bull market rally. Although every new bullish month that passes analysts question whether it’s the last, US stock seems to continue growing. What is the reason and affects behind this bullish stock mark...
    On October 18, 2017 / By
  • Finance 0

    Thomas Friedman Pushes The TPP Joke

    When it became impossible to sell the Trans-Pacific Partnership (TPP) on its economic merits, proponents of the deal began to argue for it as a way to contain China’s power in the region. Thomas Friedman picks up this line and runs with it in his latest column. “Trump came into office vowing to end the trade imbalance with China — a worthy goal. And what was his first move? To tear up the Trans-Pacific Partnership, the trade deal that would have put the U.S. at the helm of a 12-nation trading bloc built around U.S. interests and values, potentially eliminating some 18,000 tariffs on U.S. goods and controlling 40 percent of glob...
    On October 18, 2017 / By
  • Finance 0

    September 2017 Residential Building Slowing Cycle Continues

    The headline residential building permits declined and construction completions improved. But we keep our eyes on the rolling averages because of the significant monthly fluctuations. Analyst Opinion of Residential Building The backward revisions this month were strongly downward.The nature of this industry normally has large variations from month to month (mostly due to weather) so the rolling averages are the best way to view this series – and it shows permits rate of growth declined, and completions rate of growth declining. We consider this a weaker report than last month – and shows growth deceleration. Looking at residential...
    On October 18, 2017 / By
  • Finance 0

    Why Are Banks Paying So Little Interest On Deposits?

    Interest rates on deposits at banks, and even credit unions, are so low as to hardly be worth the bother. Bank profitability is up, the FDIC reported, and some banks are increasing their dividends. So why aren’t they paying more on deposits? Banks make most of their profits by taking in deposits, lending the money out in loans, and receiving more interest income than they pay out. When I was a bank economist, I split our earnings into two buckets. The deposit bucked reflected the difference between what we paid on deposits and the risk-free interest rate we could receive in wholesale markets, called the Federal Funds rate. The loan bucket ...
    On October 18, 2017 / By
  • Finance 0

    Oil Algos Shocked As US Crude Production Crashes Most In Over 5 Years

    Following API’s huge 7.1mm barrel crude draw overnight, WTI prices are slightly higher (driven more by OPEC jawboning) as last week’s API errors are still on traders’ minds, but DOE confirmed a big crude draw but notable builds in gasoline and distillates surprised. However, the biggest headline is likely the 11%-plus collapse in US crude production… API Crude -7.13mm (-3.2mm exp) – biggest draw in 2 months Cushing -151k – first draw in 2 months Gasoline +1.951mm (+1.05mm exp) Distillates +1.644mm – biggest in 3 months DOE Crude -5.73mm (-3.2mm exp)  Cushing +202k Gasoline +908k (+1.05mm exp) Dis...
    On October 18, 2017 / By
  • Finance 0

    Seniors: How To Prepare For Rising Rates

    The unwinding of the Federal Reserve’s balance sheet, improving jobs numbers and increasing wage demand have convinced most economists that higher interest rates are in our future. On the surface, this seems like a good thing for retired persons who, for the past nine years, have earned next to nothing from their preferred investments – CDs, savings, and Treasurys. Rising rates should benefit those who want to minimize risk. But for most of that same period, seniors have racked up a mountain of variable-rate credit card and mortgage debt. And that means a rising interest rate environment could be a disaster for them. As rates go up, the c...
    On October 18, 2017 / By
  • Finance 0

    Costco’s Price Advantage Is Its Moat Vs The Amazon Effect

    On June 15th, Costco (CSCO ) stock was trading at $180. The next day Amazon (AMZN) announced its deal to acquire Whole Foods (WFM) which sent supermarket stocks and Costco shares tumbling. Investors feared that Amazon would destroy the supermarkets much like it did with bookstores and electronics retailers. If retailers don’t adapt or have some kind of advantage, then they very well may fall by the wayside. However, others will adapt and thrive. One such case is Costco who carries a huge value proposition that Amazon will struggle to combat.  Last week, Andy visited Reuters TV and made his case for Costco. Costco is immune from the Ama...
    On October 18, 2017 / By