This stock’s yield will only be this high temporarily, so if you worry about having a dependable income stream to help you during your retirement, jump on this chance to earn a 17% and growing yield forever. As the stock markets fall, my email box and news feeds are starting to fill up with dire rumors as to why a particular company is in trouble. These warnings generate the fears that dividends will soon be cut, eliminated, or worse. These rumors can generate extra selling pressure on share values that have already fallen significantly. I find it somewhat amazing that a chat room thread or an uninformed article on a third-tier financial ...
In January 2016, global foreign reserves (FX) continued their decline after an absolute peak in June 2014, declining significantly in distressed emerging countries and some notable oil-producing economies (see Figure 1). Figure 1. China and Saudi Arabia, the leading owners of foreign reserves outside the OECD circle, both experienced an outflow greater than 5% of their outstanding reserves in less than 6 months (see Figure 2). A common factor explains these drawdowns: both the countries are struggling to defend their currency peg to the Dollar. The pressures on the exchange rates can be traced back to three intertwined drivers: the (still to ...
All successful social media businesses have one thing in common: they are constantly growing their user bases. Sadly, Twitter (TWTR) reported 320 million users in the December quarter, flat with the previous quarter and up 9% YoY, missing analysts’ expectations by 5 million users. And to make matters worse, the service lost over 2 million active users during the period. In a world that is becoming more and more connected every day, Twitter has done the unthinkable: it has shrunk. Twitter Is Important Before we get into what’s right and what’s wrong with Twitter, I want to make it clear that I believe that Twitter is very, very important...
<< Read More: 2016 Market Preview – Part I This is the second of three parts of the 2016 preview that appeared in HRA Journal Issue 245-246.This part deals with the outlook for the US Dollar, China and oil.The final section, dealing with several metals, will be issued shortly. The $US: Still Tilting at the Windmill Yes folks, it’s lonely in dollar bear land. I know there are others talking about “dollar collapse” but I’m not part of the perma-bear crowd that expects the global fiat currency regime to collapse. My views are more mundane and (I like to think) fact based. I don’t expect the greenback to fall apart but I...
Are you ready for some fire in your life? And I’m not talking about Valentine’s Day – this fire will last all year. This past Tuesday, February 9, everyone here at Karmê Chöling Meditation Retreat Center celebrated Losar (or Shambhala Day for us), the Tibetan New Year. Following the Chinese calendar, 2016 is the year of the fire monkey. According to the qualities of this mythical creature, this year will be filled with energy, creativity, confidence, and some chaos. The fire monkey can also inspire a bit of money-making. With all this lively energy swirling around, it’s a good idea to put some extra effort into focusing and harnes...
I’m seeing a few signs that we’re close to getting a counter trend bounce in the S&P 500 Index (SPX). The most compelling sign comes from stock market sector sentiment generated from the Twitter stream. In bull markets when every sector was positive on a weekly basis it almost always marked short term tops. We’re now in a bear market and all sectors are negative. I view this as a capitulation of sorts, where traders and investors are selling everything. This is the first time since we’ve been collecting the data that I’ve seen this condition, but the track record of all positive sectors in a bull market gives some credence to th...
Only a short-covering rally on Friday saved stocks from a truly horrendous performance last week. The Dow Jones Industrial Average (DIA) lost 231 points or 1.4% to close at 15973.84 on the week while the S&P 500 (SPY) dropped 15 points of 0.8% to end the week at 1864.78. The Nasdaq Composite Index (QQQ) fell 0.6% on the week to finish at 4337.51. All three indexes are solidly in the red for the year with the Dow down -8.33%, the S&P 500 down -8.77% and the de-FANGed Nasdaq down -13.38%. Investors should take little comfort from Friday’s rally – Chinese stocks reopen on Monday after a break for the Lunar New Year’s ...
Most nearly every week we try to give an update on the Commitments of Traders in certain markets. This week I would like to focus on gold since it has been one of the best, if not THE best performing commodity futures market this year. Those of you who have followed my writings for any length of time know that I place great importance on SENTIMENT when it comes to discerning market price action and behavior. Sentiment moves markets; understand it and you will be on your way to being a successful trader. Fail to grasp it, and you will more often than not end up losing money. One of the ways we can gauge sentiment is by looking into these CFTC ...
This past weekend saw the dollar rise from a near three-month low amid signs that U.S. consumer spending remains strong. The greenback advanced versus most of the other major currencies, snapping four days of losses versus the yen, as a Commerce Department report showed retail sales had increased more than forecast in January. The currency rose from its weakest since October 2014. At her testimony in front of Congress last week, Federal Reserve Chair Janet Yellen was firm in her decision to raise rates for the first time in a decade. Rather she reiterated that the central bank is monitoring incoming data and will raise rates at a gradual pace...
Enjoy the cheap $2 gasoline while you still can! Due to the collapse in crude oil, gas prices have reached lows not seen since the depth of the Great Recession. But these extreme lows in oil and gas prices won’t be here for long. Gas Prices Crude oil and gasoline prices have moved largely in unison, both up and down: Crude Oil vs. Gas Oil prices are at lows not seen in years, decimated over the past 2 years and crashing by nearly 80 percent to $26/barrel since the ~$110/barrel highs in June 2014. Crude Oil Prices Possible Reasons for the Bear Market in Oil & Commodities...