China announced a growth surprise last week. After this solid first quarter performance, the central government may be in the unique position to achieve its growth target – even while tightening. In the first quarter, China’s economy grew 6.9 percent; slightly faster than expected and led by strong expansion at factories. What the first quarter data reflects is solid growth in several fronts. Retail sales soared to 10.9 percent on year-to-year basis, which reflects steady progression in the ongoing rebalancing of the Chinese economy toward consumption. Clearly, it was driven by recent gains in wage and credit growth, despite declining...
Video Length – 01:03:51 In today’s session, my co-host Andrew Sather of einvestingforbeginners.com are going to talk about stock valuation methods. Andrew has a great eBook that he wrote a while back that talks a lot about how to value a stock. A breakdown of the 7 valuation metrics that we use P/E ratio and its importance P/B ratio and the relevance to value investing Debt to Equity is probably the most important ratio Andrew: There are a lot of different ways you can evaluate a stock, there are a lot of different models. I want to talk about some of the simplest ones that you’ll approach, you can always take the subject a ...
Every quarter I like to review baby DivHut’s portfolio and dividend income. With the first quarter of 2017 already in the books it’s time to see how his portfolio has fared. Generally speaking there is not much change in his portfolio on a month to month basis as fresh capital is not always available to make trades for him every month. Still, with dividend reinvestments, stock spin offs and a couple small buys I made, his portfolio continued to grow in size from last quarter. Of course, the aim of his portfolio is not necessarily to achieve capital appreciation rather dividend growth with the ability to generate an ever increasing pass...
We got a major short-term knee-jerk on the pair upon French Election results. But what about EURUSD long-term analysis? What can you expect in the coming months, especially if you are a medium to the long-term investor? Here is a quick IDDA update to figure it all out. 1- Fundamental Points French Elections: It was a battle between populist candidate Marine Le Pen and the exact opposite, Emmanuel Macron. Le Pen is the head of a far-right party once known for being anti-Semitic and racist. She’s run an anti-immigrant and anti-EU campaign. Populism: when voters aim to take their government back from the ‘out-of-touch elites’ i...
Wall Street still exudes widespread optimism that 2017 will provide another year of solid gains for stocks amid stable albeit unspectacular economic growth and only gentle interest rate rises. However, as The FT details, all is not well in reality, and the following seven charts will hearten investors of a more bearish persuasion… After climbing to its highest in 3 years earlier in 2017, Citi’s Economic Surprise index — which gauges how well data come in better than expected — has sagged badly lately. In fact, this week saw the biggest drop in US Macro data in 6 years (after poor readings on job creation, inflation, housing ...
Over the last several years one of the most consistent trades has been to get long stocks ahead of an FOMC meeting. Let’s face it, it just makes the Fed’s decision making process a hell of a lot easier if stocks are rising, and at, or near all time highs. With Trump unveiling his tax cut package next week I expect the market will be ready for a bounce either naturally, or maybe with a little help from the PPT. So I expect we’re going to be testing the all time highs by May 3rd. After that we probably have a deeper correction in store by the end of May. So far this correction has lasted long enough, but it hasn’t dropped far enough in ...
Market favorite Macron is now leading the real vote as well as the exit polls. As the centrist cements his lead, it is time to look at the bigger picture for the common currency. EUR/USD is already the exit polls. The pair is trading just above 1.09 as trading volume remains thin. It has peaked at 1.0930, but more players will come in when Tokyo opens, and the full reaction is expected in Europe. Real vote update – 90% counted According to the latest count, Macron received around 23.4% and Le Pen is under 22.4%. Around 78% of the votes have been counted. Most importantly, both command a safe distance from Fillon, in third place and under...
The Monday session is relatively light as far as economic announcements are concerned, with German Business Climate being the most important number that comes out. Because of this, we believe it will be a relatively stable market with an eye on geopolitical risks more than anything else. Gold Gold markets continue to look bullish, as we rallied during the session on Friday. Call buyers are returning every time this market dips, and with all of the geopolitical concerns around the world, it makes sense that the market continues to rise. USD/JPY The US dollar pulled back slightly during the day on Friday, as we continue to consolidate. However,...
t’s been two weeks since the last edition of our Monday Morning Kickoff, and while the first of those two weeks was rather quiet, by comparison, this past week has been filled with noise. The issue at hand is that noise level is going to swell this week into a near deafening roar as earnings season kicks into high gear. Late last week we discussed many of the issues plaguing the market, the majority of which we identified to regular readers of the Monday Morning Kickoff and Tematica Investing subscribers, on the latest Cocktail Investing Podcast episode and in our view, it’s a great recap of the last several weeks and primer for wh...
As tipped by the knee-jerk reaction in EUR/USD and EUR/JPY, the “market-friendly” outcome from the first round of the French elections looks to have set the stage for a decidedly risk-on-ish Monday. Here’s a quick look across markets as we head into the overnight session. S&P futs are up ~1%… Treasury futs are down the most since March 1… USD/JPY is up sharply… Along with EUR/JPY as the yen is dumped for riskier bets… ...