The alcohol market in the U.S. has expanded significantly over the past few years on the back of strong demand. Moreover, improvement in the U.S. economy, especially solid growth witnessed in the labor market, played a vital role in boosting the outlook for the alcohol industry for the upcoming months. The industry is also poised to benefit from the upcoming holiday season. In this encouraging backdrop, selecting potential stocks from the domain may prove to be a profitable investment option. Alcohol Industry in Good Spirits Though data from Euromonitor showed that global alcohol consumption declined last year, it increased in the U.S., which...
A semi-weak open gave way to a strong early morning rally and it looked like this rally was going to carry us through throughout the day. But like usual the market found its highs around 2pm and spent the rest of the day going nowhere and then selling off into the close. The good news is that stocks closed higher on the session but the bad news is that they did not close near their highs. This suggest that the probability of more chop is higher than the probability of any trend developing in the short-term. There is some hint, however, underneath in my long scans, that stocks and the market wants to move higher. My scans expanded nicely today...
This daily digest focuses on Yuan rates, major Chinese economic data, market sentiment, new developments in China’s foreign exchange policies, changes in financial market regulations, as well as market news typically available only in Chinese-language sources. – China’s investment conditions improved in September, with a 2.5% growth in private investment. – Both sales and investment in real estate picked up in September, increasing the risk of price bubbles. – The PBOC Shanghai Branch demanded local commercial banks to tighten mortgage issuance. Yuan Rates – The PBOC weakened the Yuan by -23 pips against the U.S. D...
In many ways, the task facing the ECB’s Mario Draghi is the most daunting of all central bankers. On one hand, the ECB head has to keep financial conditions as loose as possible to stimulate the lethargic credit pathways in Europe, on the other European banks and insurance companies have been the most severely impacted by the ECB’s Negative interest rate policy. Which is why some have suggested that pursuing a BOJ-like policy of “curve manipulation”, where the 10Y is pegged at a certain level and allowing the curve to steepen while pushing short rates even lower may be the best approach for the central bank. However, d...
On Friday, both the Bank of England AND the US Federal Reserve made clear signals that they WANT inflation. The Bank of England is prepared to tolerate higher inflation over the next few years and will keep interest rates low to support economic growth, according to Governor Mark Carney. Source: Telegraph In a further indication that the Federal Reserve will be inclined to let inflation run hot for a while, Chair Janet Yellen on Friday said it’s useful to consider the benefits of a “high-pressure economy.” Source: CNBC These two announcements hit the same day at roughly the same time. This was a coordinated verbal intervention by two m...
Almost two months ago, I explained my decision to sell my position in iShares MSCI Brazil Capped (EWZ). I also pointed to a 20% correction as the next time I will consider buying again. Since then, EWZ rallied, dipped slightly to a lower low, and then resumed its current rally. That rally accelerated a bit this month. EWZ is up a healthy 10.5% in October (which is also equates approximately to the gain since my last post). The iShares MSCI Brazil Capped (EWZ) continues its stubborn rise. This rally has also pushed EWZ to a key resistance level from 2015’s high. I marked this point with a horizontal black line in the chart below. The chart...
The Chart of the Day belongs to Trimble Navigation (Nasdaq: TRMB). I found the electronic devices stock by using Barcart to sort the Russell 3000 Index stocks first by the highest number of new highs in the last month, then again for technical buy signals of 80% or better. Since the Trend Spotter signaled a buy on 9/29 the stock gained 6.50%. Trimble applies technology to make field and mobile workers in businesses and government significantly more productive. Solutions are focused on applications requiring position or location-including surveying, construction, agriculture, fleet and asset management, public safety and mapping. In add...
The Tax Foundation has an interesting analysis of Trump’s tax plan compared to Hillary’s. Hillary is negative on GDP, capital investment, wage growth, and jobs. Trump is positive on all four under two different models. Trump vs. Hillary Plan Comparison Let’s dive into the discussion with a look at How do Clinton and Trump’s Tax Plans Compare? Also consider Understanding the Candidates’ Tax Plans. Both articles are by the Tax Foundation. The following snips are from the second link. Donald Trump Would Cut Taxes Significantly Donald Trump’s tax plan would significantly cut taxes, while mostly steering clear of the more difficult ...
“Go ahead, bite the Big Apple, don’t mind the maggots.” – The Rolling Stones In their hit song “Shattered,” The Rolling Stones sing about the dark side of living in 1970s-era New York City. Had the song been written today, Mick Jagger (who studied at the London School of Economics) could have been talking about Apple Hospitality REIT (NYSE: APLE). Apple Hospitality has almost nothing to do with New York City. It’s a real estate investment trust with a portfolio of 236 hotels in 33 states. It leases land to companies like Marriott and Hilton for their various hotel brands. Tenants include a Courtyard Marriott in Carolina Beach,...