Miners rallied nicely yesterday, further endorsing interim lows. However, gold and silver are yet to establish proper swings and the potential for a decline after the Fed meeting remains. In the Weekend Newsletter, I noted how gold and silver had a tendency to bottom shortly after the rate hike. The odds for a rate hike have risen to 95%. If I recall, they were sitting around 22% the last week of February. The previous rate hikes were well anticipated. It is unclear how prices will react to the abrupt shift in expectations. For that reason, I’m content holding my oil positions and waiting for a better setup in precious metals. -GOLD- Mine...
Dividend growth investing is one of the best ways to build wealth over the long-term. But sometimes, stocks go down. This is the trade-off to investing in the stock market. An investor needs to resist the urge to sell, even during market downturn. To be fair, this is no easy task. It is very difficult to stay with stocks when we see our brokerage statements painted with red ink. That said, those who have the steely resolve to stay in the market can reap huge rewards. The following three stocks are all Dividend Achievers, a group of 271 stocks with 10+ years of consecutive dividend increases. And, the three stocks mentioned below are among the...
EUR/USD received some support from the ECB but the pair failed to rally hard. What’s next? Here is their view, courtesy of eFXnews: EUR/USD has been in demand as of late mainly following its positive reaction to last week’ President Draghi’s press conference. In that regard, Nomura Research notes that President Draghi communicated that the Bank had removed the reference to using all instruments to signal that the sense of urgency is gone, and as the ECB’s risk assessment has likely become more balanced, these communications supported EUR for now. Nonetheless, over the next few months, Nomura argues that French elections and the Fed...
The shares of glass maker Corning (GLW) are falling after Goldman downgraded the stock to Neutral from Buy, saying that the stock already reflects the company’s opportunity. CURRENT SITUATION: The fundamentals of Corning’s glass business “remain healthy,” while its display business has rebounded and now has “stable” fundamentals, according to Goldman analyst Doug Clark. OUTLOOK: Corning has a number of potential positive catalysts going forward, Clark believes. Specifically, the company’s double sided glass will be used in devices starting in 2017 or 2018, and over the longer term, automakers could st...
Fixed-income securities are preferred by investors ready to forgo capital growth for regular income flows. The expense involved in creating such a portfolio of bonds from different categories can be considerable. This is why most investors select mutual funds since they are a convenient and affordable. Also, diversified bond funds reduce the risk involved by holding securities from different sectors. Therefore, a downturn in any one sector has a partial effect on the fund’s fortunes. Below we share with you three best-ranked diversified bond mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperf...
Online shopping is not new to the world. It has been here for more than two decades. However, consumers only really began to adapt to the new shopping trends in the last decade as it became apparent that it was necessary in order to keep up with the rapid technological advances. Nonetheless, the tables appear to be turning based on developments during the last couple of years. It’s no longer about consumers adapting to new shopping trends, but rather, it’s about online shopping companies adapting to consumer behavior. This does not only involve creating omnichannel online shopping platforms but also, studying closely the decision-making p...
Fitbit Inc. (FIT) and GoPro Inc. (GPRO) both plunged over 4% on Monday and are continuing their ongoing downtrends today to new swing lows. Written by Corey Rosenbloom (blog.afraidtotrade.com) Our foundational principle at Afraid to Trade states that “stocks that are weak tend to get weaker” and these two related names show us why we hold this principle and what to expect from “weak stocks getting weaker.” They just get even weaker, and weaker, and make new lows in downtrends. Below is a chart of FitBit to kick off today’s example: FitBit peaked above $50.00 per share after its June 2016 IPO. That’s when the stock was “stronge...
It is going from bad to worse for oil bulls (such as Pierre Andurand), who after giving up hopes to see the first rebound in oil prices in 7 days, are now watching oil tumble to the lowest price since the Vienna oil meeting, down to $47.28. The main catalyst, as discussed earlier, was Saudi Arabia’s surprising admission that it had boosted oil production by 263kbpd to over 10 million just one month into the Oil production cut… … while Kuwait warned that crude can drop to $45/barrel as a result of rising shale production. Well, if that is the case, then $45 crude is guaranteed, because according to the latest monthly EIA p...
The US Dollar Index remains within our projected plan since almost two weeks, with attempts to break above the key resistance which stands at 101.80 to 102.0. Last week the US Jobs Report was actually the catalyst for the survival of the bearish pattern, which is the head and shoulders on the daily chart as shown in the image below. However, more catalysts are still needed to clear the way for another leg lower and to confirm the bearish pattern. The Federal Reserve Catalyst? The Federal Reserve might be the right and the most important catalyst of this potential pattern. Some would say that raising rates means a stronger currency. This is tr...
The monetary matadors at the Federal Reserve have stared into the eyes of mild price inflation for years. They didn’t move a muscle for years and have finally twitched ever so slightly, a couple times in the last few months, with a promise of more. It is the view of Fed Chair Janet Yellen that signs of overheating in the broader economy are “scarce.” The indispensable Grant’s Interest Rate Observer isn’t so sure and devoted its front page and then some of its March 10 issue to inflation and how it’s measured. After all, the price level is the North Star of central bank policy. Grant’s sent its Harrison Waddill to tag along wi...