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  • Finance 0

    Analysts Highlight Survivors Of The Retail Slowdown: Amazon, Target And Wal-Mart Stores

    The significant decline of retail stocks has impacted many well-known clothing stores including J.C. Penney, GAP, Nordstrom, and Macy’s, which reported a 40% loss of net income in the last quarter and a 7.4% decline in revenue. As these stocks seem to be drowning in the wave of retail demise, discount retailers remain buoyant. Specifically, Amazon.com, Inc (NASDAQ:AMZN), Target Corporation (NYSE:TGT), and Wal-Mart Stores, Inc. (NYSE:WMT) have experienced peak interest from consumers, entertaining the idea that perhaps consumers are being driven by cost effectiveness as opposed to luxury. Could frugality be the culprit at hand for the...
    On May 22, 2016 / By
  • Finance 0

    Emerging Market Preview For Week Of May 23

    EM’s had another rocky week, but managed to end on a slightly firmer note Friday. Market repricing of Fed tightening risk was the big driver last week, and that could carry over into this week.There are several Fed speakers in the days ahead, capped off with Fed chief Yellen on Friday.  Several EM central banks meet this week, including Israel, Turkey, Hungary, and Colombia.There is some risk of a dovish surprise from Turkey, while Hungary is expected to continue easing.Colombia is an outlier, with high inflation seen leading to another 25 bp hike.  Singapore reports April CPI Monday, which is expected at -0.7% y/y vs. -1.0% in March....
    On May 22, 2016 / By
  • Finance 0

    “The Time Is Now” For Markets To Price In China’s Next Slowdown, A Gloomy Morgan Stanley Warns

    Just over a week ago, we pointed out that China’s great credit growth stimulus from early 2016, when the PBOC injected $1 trillion in new credit in the first quarter of the year, had come to a screeching halt in April, confirmed by the lack of growth in China’s broadest credit aggregate, Total Social Financing, which had just dipped to a negative growth print year-over-year. While there were various important implications from this substantial Chinese slowdown, we concluded that the biggest concern for China, and the world, is that “now that China’s credit impulse is gone, it means that the it is only a matter of tim...
    On May 22, 2016 / By
  • Finance 0

    Despite Depression, Greece Forced To Hike VAT, Add New Taxes

    Greece remains in an economic depression interrupted by a few quarters of anemic growth. Hiking taxes in a depression is one of the stupidest things one can do, but Greece is set for another vote to do just that. Prime minister Alexis Tsipras is once again prepared to kiss German Chancellor Angela Merkel’s behind, and his party will likely go along for the ride. The wildcard IMF has yet to chime in on the economic stupidity of this hike. Please consider Greece Set for Austerity Vote to Secure Bailout Cash. Greece’s parliament is expected to vote late Sunday on a raft of fresh taxes and austerity reforms that the country must legislate ...
    On May 22, 2016 / By
  • Finance 0

    EC The Great Temptation, Greatest Danger

    It always amazes me how most analysis on an investment focuses on recent performance, rather than process. Yet, so little attention is given to the investor return/behavior gap, a well-documented phenomenon that proves that “on, average, investors sacrifice a substantial portion of their returns by incorrectly timing when to enter or exit investments.”  Incorrect timing tends to come from chasing performance, getting in after a major up move has already taken place, and then, of course, exiting when the drawdown is likely near its end.The below chart sums up some of the research on this which remarkably few are aware of when consider...
    On May 22, 2016 / By
  • Finance 0

    Wal-Mart Q1 Bucks Weak Retail Trend: ETFs To Surge

    Amid a spate of disappointing earnings reports from departmental stores and traditional brick-and-mortar operators, Wal-Mart (WMT – Analyst Report) spread an air of optimism with solid Q1 results. This is especially true as the world’s largest retailer edged past our earnings and revenue estimates, and provided an upbeat outlook for the ongoing second quarter (read: Retailers Sink: Alarm Bell Ringing for ETFs as Q1 Unfolds?). Earnings per share came in at 98 cents, beating the Zacks Consensus Estimate by 10 cents but declining from the year-ago earnings of $1.03. Revenues inched up 0.9% year over year to $115.9 billion and surp...
    On May 22, 2016 / By
  • Finance 0

    Top Hedge Fund Sees Solar Power Viability, Profitability Around The Corner

    The naysayers regarding solar power have always made one accurate point: the technological cost effectiveness was not the same as cheap burning coal or other carbon emitting sources. Government investing in “green energy” was a boondoggle that will never provide dividends, was one line of thought. Contrast this with the first quarter report from the big UK hedge fund Lansdowne Energy Dynamics Fund, which for the first time is seeing the light of day relative to solar power profitability, and perhaps witness one of the great trend changes of our time. Also see a Curated list of top hedge fund letters Solar power is nature power and ...
    On May 22, 2016 / By
  • Finance 0

    Hard US Data For The Data-Dependent Fed

    The Fed is leaning to the hawkish side but stressed that it is data dependent. In the penultimate week of May, we get both an update on the worrying first quarter with updated GDP data as well as a look at Q2 with fresh durable goods orders. In addition, top German surveys, a rate decision in Canada and other figures stand out in a week that promises to keep the pace high. Preview for the week of May 23-27 2016:  ...
    On May 22, 2016 / By
  • Finance 0

    SPX – Breached But Not Broken

    On 4/20, the SPX rally that started at 1810 came to an end at 2111. From that point, the index declined until it reached 2040 — which was mentioned repeatedly as an important support level — found good buying at that level, and rallied to 2085 before reversing again. The next decline continued until last Thursday, but this time did not find support until 2026.  However, by closing the week at 2052, the index again closed well above support. The coming week should give us some important clues about what the market wants to do next. If the current rally is going to match the previous one in time and price, it could end as early as...
    On May 22, 2016 / By
  • Finance 0

    Wall Street’s Week Ahead: Hewlett Packard Enterprise Co And HP Inc

    In November 2015, Hewlett Packard announced it was splitting into two new companies. Hewlett Packard Enterprise Co (NYSE:HPE) now handles the software, server, and storage aspects of the previous company while HP Inc (NYSE:HPQ) focuses solely on printers and PCs. Many lauded the split as it was a massive yet seamless transition executed on a global scale. Now, both new companies will be posting earnings this week. Hewlett Packard Enterprise Co Hewlett Packard Enterprise is expected to report earnings May 24, 2016 after market close. Overall, analysts expect the company to post $0.42 per share on revenue of $12.34 billion. Credit Suisse an...
    On May 22, 2016 / By