In just the past week, lawmakers in Idaho and Arizona have passed bills removing “Capital Gains” from gold and silver coins and bars. Normally, when individuals sell gold or silver, they must pay capital gains on any increase on the value of their precious metals investments. However, gold and silver are really not investments per say, rather they perform as real money. Thus, the lawmakers in Idaho and Arizona realize their citizens shouldn’t have to pay taxes on their gold and silver holdings because they have increased in value due to the debasement of the U.S. Dollar by loose Federal Reserve monetary policies. According to the articl...
Written by StockNews.com Prominent digital marketing firm eMarketer lowered its 2017 revenue outlook for Snap Inc. (NYSE: SNAP) by $30 million on Tuesday, to $770 million, citing higher than expected revenue sharing with the company’s ad partners…With advertising representing nearly all of Snap’s revenue, any hiccup on that front is major bad news. As Reuters reports, the forecast is much worse for fellow social media giant Twitter Inc. (NYSE: TWTR): On the other end of the spectrum, eMarketer forecasts more trouble for Twitter Inc., which has been grappling with stagnant user growth. Its U.S. ad revenue will decline by 4.7 percent...
There are several companies listed on the US stock exchange that make me marvel at their sky high valuations. They make no sense to me as an economist but that does not mean that investors are completely crazy valuing them the way that they do. For example, I have for a couple of years been following Mobileye (MBLY) – to me this company is an interesting sector namely driverless car technology but it seems to me to have been massively overvalued and I am not too convinced of the value of their product as I think I can see fine with my eyeballs what is on the road. The other day it was trading at around $46 per share based on profits of ...
Here we go again – Fed Day, March 2017. While this is but the first of several central bank meetings this week – the Bank of Japan, the Bank of England, and the Swiss National Bank are also slated to meet – the gathering of Janet Yellen’s bunch is likely the most important. The futures market is pricing in a nearly 100% chance that Yellen & Co. are going to raise the Fed Funds target rate by 0.25% today. As such, there is likely to be very little drama surrounding the announcement. However, this does not mean that there won’t be drama, or perhaps more accurately, volatility, when Janet Yellen starts taking questions from the pre...
We have had a crazy winter here in the northeast. Some days it’s hot some days it is bitter cold. I cannot remember a February where we had more than 10 days of 65-degree weather. It was nice while it lasted. Now we are back to a more normal 19-degree temperature. I guess it is only fitting that the weather is as volatile as our politics and economic outlook. I won’t delve into politics here since I’m sure everyone has had enough of it on Facebook, TV, and Twitter. However, there are some things that need to be discussed. and are interesting to me. First, We have officially come out our the earnings growth recession we have ...
General Mills (GIS) is a blue chip stock that has paid uninterrupted dividends for 117 years. The company’s dividend has increased each year since 2004 and boasts a 10.4% annual growth rate over the last decade. Despite General Mills’ impressive history, the company’s stock price is down more than 15% since early July 2016 while the S&P 500 Index has gained over 13%. With investors’ expectations reduced and the stock’s 3.2% dividend yield sitting above its five-year average yield, now is a good time to review why General Mills remains a core holding in our Conservative Retirees dividend portfolio. Business Overview General ...
Another hike in the federal funds rate on Wednesday appears all-but-certain. Experts, prediction markets, and Fed officials themselves all indicate that the central bank is ready to raise target rates 25 basis points to a range of 0.75%-1.00%. Amidst all the clamor of another rate hike, the stock market is responding, yet again, with a hearty ¯_(?)_/¯. It’s been over 100 days since the market experienced a 1% drop, and the S&P 500 is up 18% since the first Fed rate hike in December 2015. Strong corporate profits and the hopes of a more expansionary fiscal policy are driving the market, and the Fed is behind the curve. Investors ago...
Below is a performance comparison between the S&P 500 and Real Estate ETF (IYR) over the past 10-years. Since the highs in 2007, IYR has little to brag about as it’s net asset value has declined 10%. The S&P during this same time frame is up 66%. CLICK ON CHART TO ENLARGE Below compares the relative performance of Real Estate to the S&P since 2001- CLICK ON CHART TO ENLARGE This chart reflects how Real Estate ETF continues to be much weaker than the broad market over the past 10-years, This under performance now has the the ratio, testing 2009 financial crisis lows. Many are of the opinion that IYR benefits from falling rat...
The February jobs report gives us another snapshot of how the income for American worker is undergoing change. Continuing a recent trend, average hourly earnings rose a modest 0.2 per cent and weekly hours worked remained unchanged for last month.The modest increase in wage income, at a time when the country is very close to or at full employment, is a major cause for concern (see Figure 1). If an accommodating monetary policy that generates full employment will not boost wages, then what will? This sense of wage frustration is widely shared in the advanced economies. In the United Kingdom wage growth has slowed at a time when a devaluing pou...
Expectations for the March meeting went from a non-event to certain hike. But is the Fed just “sneaking in” a move now and will take a break? Or are they about to hit the accelerator pedal? We discuss the considerations facing the FOMC and the scenarios. The dot-plot regarding rates matters most, but also note the overall tone in the statement and the press conference. The dollar is sitting on the edge of the chair. Video preview for the big event: Video length: 00:10:51 ...