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    Financial Markets React To ECB President Mario Draghi’s Speech

    Market Reaction to Draghi’s Speech On this edition of Market Week in Review, Todd LaFountaine, program director, advisor insights, chatted with Chief Investment Strategist Erik Ristuben about the market’s reaction to European Central Bank (ECB) President Mario Draghi’s speech earlier in the week. The exact meaning of Draghi’s speech was very challenging to decipher, Ristuben emphasized. The initial reaction among many was that he was making a fairly hawkish statement. This is because Draghi first talked about how the ECB had to be persistent in pursuing a monetary policy that brought inflation in line with its objectives. Then, Ristub...
    On June 30, 2017 / By
  • Finance 0

    S&P 500 Snapshot: Fractional Monthly Gain Of 0.48%

    The S&P closed June with a fractional monthly gain of 0.48% after a gain of 1.16% in May. The index is down 0.61% from last week and the volume is 7% below its 50-day moving average. The U.S. Treasury puts the closing yield on the 10-year note at 2.31%. Here is a daily chart of the S&P 500. Today’s selling puts the volume 7% below its 50-day moving average. A Perspective on Drawdowns Here’s a snapshot of record highs and selloffs since the 2009 trough.   Here is a more conventional log-scale chart with drawdowns highlighted.   Here is a linear scale version of the same chart with the 50- and 200-day moving averages.   A...
    On June 30, 2017 / By
  • Finance 0

    Micron & 4 Promising Semiconductor Stocks For Your Portfolio

    The semiconductor industry, which is among the 11 sub-industries in the broader technology sector, has been one of the outperformers so far this year. Notably, iShares PHLX Semiconductor ETF (SOXX – Free Report) , which represents semiconductor stocks, has witnessed a year-to-date (YTD) gain of approximately 15.7%; while the Technology Select Sector SPDR ETF (XLK – Free Report) , which represents the overall technology sector, returned 14.2% YTD. After a dismal 2015, which witnessed SOXX ETF lose over 3.3%, stocks across the semiconductor landscape rebounded well last year and the momentum is likely to continue this year as we...
    On June 30, 2017 / By
  • Finance 0

    Expected Dividend Increases In July 2017

    After taking a month off from the series in June (unintentionally of course)…I’m back!  Each month, I like to summarize which Dividend Aristocrats are expected to increase their dividend in the coming month. As die-hard dividend growth investors, the two of us take great joy in closely monitoring and tracking the changes in our dividend income and dividend payments of the companies we own and companies that we are watching closely. Typically, July is a slower month than June, but there are still some great companies that are expected to reward their shareholders. Dividend Increases in June 2017 Before I look forward to the expected div...
    On June 30, 2017 / By
  • Finance 0

    Federal Reserve Approaches A Key Decision Point

    At times it is best to be invested and sit tight, not second-guessing your decision, as the calls for a bear market mount. The market this year has been one of those times, and investors who have stayed the course are being rewarded. Sitting on hands is one of the hardest things for an investor to do, as Warren Buffett has noted. Seasoned market prognosticators have been publishing on the imminent demise of the bull market for many months, as highlighted in our article The Relentless Market and Missed Calls. They have not been right thus far, but that doesn’t mean they will never be right. But we feel they will have to wait a lit...
    On June 30, 2017 / By
  • Finance 0

    Cash Is King & These 4 Canadian Gold Miners Will Give It To You

    TM editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence. Written by SmallCapPower.com The free cash flow yield is a metric to evaluate the return you will likely get on a stock given the current market price, assuming free cash flow stays constant. It is also a valuation metric, which is useful when comparing the free cash flow yields on multiple companies. A high yield is good because it means you are paying less for the company’s cash flow relative to the other companies. Today we have identified four Canadian gold miners that have high free cash f...
    On June 30, 2017 / By
  • Finance 0

    June Gloom: Nasdaq Suffers Biggest Loss Since October As Dollar, Bonds, Economy Plunge

    US Economic data in Q2 was the most disappointing since Q2 2011…   June was a rollercoaster: Nasdaq’s worst month since October (breaking a 7 month win streak) FANG Stocks worst month (first losing month) since November Dow best month since February Small Caps best month since November Risk-Parity Funds lost 1.6% in June – the first loss since November 10Y Treasury Yield biggest rise since November Treasury Yield Curve unchanged. Gold’s worst month since November USD Index feel for 5th of last 6 months WTI fell for 4th straight month (despite last 7 days up – best streak in 6 months) Small Caps were the biggest ...
    On June 30, 2017 / By
  • Finance 0

    Two Measures Of Inflation And Fed Policy

      The BEA’s Personal Consumption Expenditures Chain-type Price Index for May, released today, shows that core inflation remains below the Federal Reserve’s 2% long-term target at 1.39%. The most recent Core Consumer Price Index release, also data through May, is higher at 1.73%. The Fed is on record as using Core PCE data as its primary inflation gauge. Headline inflation for both series is conspicuously lower, largely a result of low energy costs. The inflation rate over the longer run is primarily determined by monetary policy, and hence the Committee has the ability to specify a longer-run goal for inflation. The Committee jud...
    On June 30, 2017 / By
  • Finance 0

    “They’re Going To Have All Sorts Of Issues” – Citi Urges Regulators To Address Australia’s “Spectacular Housing Bubble”

    Citigroup Chief Economist Willem Buiter says Australia is experiencing “a spectacular housing bubble” that needs to be addressed with tougher regulatory measures – something we’ve noted time and time again. A shortage of housing, coupled with record-low interest rates, has made Sydney the world’s most second-most expensive property market. The city’s home prices jumped 16% in the 12 months through April, stoking record household debt and putting home ownership out of the reach of many. “It had better be focused on immediately, to try and tether a soft housing landing,” Buiter told reporters in Sydney Wednesday, accor...
    On June 5, 2017 / By
  • Finance 0

    UK’s Weaker Brexit Hand With The EU

    Prime Minister May pushed for a snap election in June 2017 to strengthen her hand in the impending Brexit talks. In practice, she has weakened UK’s bargaining power at the EU’s expense, while the latest London Bridge incident introduces new uncertainty and volatility into the EU/UK divorce proceedings. Like too many times before, British police declared a “major incident” on London Bridge after a van reportedly hit multiple pedestrians. The terrorist incident took place only days before a critical “snap election” that May was supposed to win with a landslide victory; but in which her Conservative Party’s lead has dropped to ...
    On June 5, 2017 / By