Analysts estimate that the global coworking market now has more than 7,000 vendors. Coworking operators help make it easier for companies to have a physical office location by enabling sharing of workspace. One such vendor, now looking to go public, is New York-based WeWork. Photo credit: Jambounce Music/Flickr.com. WeWork’s Offerings WeWork was founded in 2010 by husband-wife duo Adam Neumann, Rebekah Paltrow Neumann, and their partner Miguel McKelvey. Prior to setting up WeWork, Adam and Rebekah had created a few failed startups. They finally hit on something more successful in the form of WeWork. WeWork provides its online network of m...
The market’s immediate focus is on today’s FOMC meeting and Dutch elections. However, China’s annual legislative session (National People’s Congress) ended earlier today, and Premier Li unveiled a new initiative. Late this year, China will allow overseas funds to buy onshore bonds in Hong Kong. Details on the mechanics, including implementation timeframe, were not immediately available, but the general thrust is consistent with other measures to boost market accessibility and encourage inflows. The State Administration of Foreign Exchange (SAFE) announced at the end of last month that foreign institutions that i...
Inflation is finally gaining a little traction as recent reports begin to hint at increases. From a wholesale level it is up 2.2% in the last 12 months. Wholesalers are not always able to pass along the increases to retailers and thus to the consumer, but they make every effort to do so. In February the rate was up .3% mostly due to the cost of services. Our economy is dominated by consumer services. The CPI and the PCE, the Fed’s preferred gauge of inflation are also on the rise in recent months. This means, in conjunction with more jobs, the Fed has every reason to raise interest rates. Higher inflation is not a bad thing, in fact slow,...
The big day is finally here, few hours and the world will brace for another important decision by the Federal Reserve, which will be announced at 18:00 GMT+ followed by the Press Conference of the Federal Reserve Chair Woman Janet Yellen at 18:30 GMT+. Despite the fact that the market is almost 100% sure that the Federal Reserve will raise the Fed Fund rate by 25bps, this doesn’t mean that the US Dollar rally may continue right after the decision. There are many factors traders need to keep in mind. The Rate Hike Is Priced In As we noted before in our previous reports, the Fed Fund Futures is pricing in 100% chance of a rate hike since more...
There is a 100% chance the Fed will raise rates today. That’s the consensus and I, of course, agree as I’ve been saying they HAVE to hike since the last meeting. Now that everyone agrees with me, let’s move on to contemplating the result of the Fed hiking and what it means for the year ahead. Clearly, as you can see from the chart, the Fed is not hiking rates because the economy is booming. The Fed is hiking rates to ward off inflation because a stagnant economy with inflation (stagflation) is even worse than a recession from the Fed’s point of view. Also, the markets are what Allan Greenspan liked to call “...
Socially responsible investing has been around for decades. While the results of social investing products has been somewhat mixed, there’s little question that these products fill a niche for certain belief-based investors. There’s definitely a group that wishes to avoid “sin stocks” that deal with gambling, alcohol, weapons, etc. and these products provide these folks with an investing product that aligns with their beliefs. But different groups, of course, have different beliefs and different levels of acceptance. The presidential election has highlighted how differently the nation’s population feels about hot button issues. In t...
Ardagh Group (Pending:ARD) expects to raise $300 million in its upcoming IPO ($345 million if the underwriters exercise their option to purchase additional shares). Based in Luxembourg, Ardagh Group is a supplier of rigid packaging solutions, including metal and glass containers for the food and beverage markets. Ardagh Group will offer 16.2 million shares at an expected price range of $17 to $20. If the underwriters price the IPO at the midpoint of that range, ARD will have a market capitalization of $4.4 billion. AARD filed for the IPO on November 17, 2016. Lead Underwriters: Citigroup Global Markets, Deutsche Bank Securities, and Goldman S...
T. Rowe Price GNMA (PRGMX – Free Report) a Zacks Rank #2 (Buy) invests exclusively in securities that are backed by the full faith and credit of the U.S. government, primarily GNMA mortgage-backed securities, and investments linked to these securities. The T. Rowe Price GNMA fund, managed by T. Rowe Price, carries an expense ratio of 0.59%. Moreover, PRGMX requires a minimal initial investment of $2,500. PRGMX has a history of positive total returns for over 10 years. Specifically, the fund’s returns over the 1, 3, 5 year benchmarks; 1 year 1.02%, 3 year 2.01% and 5 year 1.64%. To see how this fund performed compared in its categor...
After the hotter-than-expected PPI print, Consumer Prices confirmed that inflation is running hot with the fastest rise since Feb 2012. Notably core CPI (at 2.2%) has been above The Fed’s mandated 2% ‘price stability’ level for 15 months in a row. Of course, one of the big drivers of this price surge is in shelter and rent inflation… Combined with the weakest GDP growth outlook in over a year, it appears stagflation is looming… And The Fed is hiking into its face....
The US stock market today has never been more dangerous and overvalued, according to respected Wall Street market analyst John Hussman. Indeed, Hussman goes as far as to say that “this is the most dangerous and overvalued stock market on record — worse than 2007, worse than 2000, even worse than 1929” as reported by Marketwatch. For some months now, Hussman of Hussman Funds’ has been warning in his research that investors are ignoring extremely high stock market valuations and are being lulled into a false sense of security by central bank liquidity, massive quantitative easing and zero percent and negative interest rates. Hussman...