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Finance 0
Crash Course: How To Survive A Correction
Chances you live through a severe stock market correction is 100%. It’s the way you handle your equity portfolio that determines whether you will be a good investor or a lousy investor. So better be prepared. Paul Tudor Jones ones said: that “once in a hundred years events” have started to occur every five years. This is more a statistical fact then the truth, but the point is clear: obvious things won’t happen as much as you think and the unexpected constantly occurs. The stock market is not a place where somebody wins when another person loses. The stock market is cyclical, so everybody wins at the same time and everybody loses a... -
Finance 0
A Cheap Dividend King Hit By Energy Market Weakness
Dover (DOV) has increased its dividend for 60 consecutive years, trades at a dividend yield of 3%, and has a relatively low payout ratio of 30%. The stock also trades for just 14x forward earnings guidance. Why is this high quality industrial business looking so cheap? Energy markets. DOV generated over 30% of its earnings from its Energy segment in 2014, with most of its exposure coming from drilling and production operations in North America (one of the most vulnerable spaces in the energy sector right now). Energy headwinds are starting to create a compelling valuation case to add DOV to our Top 20 Dividend Stocks portfolio, but they coul... -
Finance 0
ADP: Slower But Still Healthy U.S. Job Growth In January
U.S. companies added 205,000 workers last month, according to the ADP Employment Report. As expected, the gain was well below December’s advance, which was revised up to a 267,000 increase. The numbers still show that the labor market is expanding at a healthy pace, so let’s not lose sight of this fact. But it’s also clear that the trend is slowing, based on the latest downtick in the year-over-year change. Private payrolls increased 2.0% in January vs. the year-earlier level. That’s still a solid gain, but the latest annual increase marks the lowest year-on-year advance since the summer of 2013. The key takeaway: the annual growt... -
Finance 0
More Thoughts On Negative Rates
The Bank of Japan surprised investors by introducing negative rates last week. Leave aside the fact that the negative rates do not go into effect for more than another week, and even when in effect, will apply to a relatively small amount of deposits at the central bank. The important point is that it is another central bank to introduce negative rates. Moreover, the yields of Japanese bonds through eight-year maturities have turned negative. In comparison, German yields are negative though seven-year maturities. Swiss government bonds through 15 years have negative yields. Counting sovereign T-bills, something on the magnitude of $7-$8 tr... -
Finance 0
Futures Jump After Bill Dudley Hints At Fed “Policy Error”, Warns Of “Significant Consequences” From Strong Dollar
With the market now predicting virtually zero rate rate hikes for the rest of 2016… … the Fed will have to take a machete to its next exercise in erroneous group think known as the “dot plot”, when it will have to admit it was dead wrong about the state of the US and global economy. But while until now most Fed speakers have sounded consistently hawkish and steadfast in their views of 4 rate hikes for the rest of the year – with the exception of a more downbeat Vice Chairman Stanley Fischer eariler in the week – moments ago in an interview with Market News, NY Fed president Bill Dudley gave the first offici... -
Finance 0
DAX 30 Is Testing Major Support And May Reach 9400 On A Bearish Break
The DAX 30 is once again testing the lower end of its 9563 to 9945 range. The latest round of weakness was triggered by a slide in crude oil prices, which are weighing heavily on stock markets across Europe. At this stage, crude oil (FXCM: USOIL) may slide lower as the trend is bearish below $32.15 and price appears to be heading to the January 27 low of $30.15, and then potentially the January 26 low of $29.24 in case of an extension. This may trigger a break to the DAX’s lower limit of 9563, which opens the door for a decline to the psychological level of 9500 and then 9400. This is an opportunity for bearish traders. As the index is... -
Finance 0
The Great Skyscraper Bubble Is Ready To Pop
In 1928, construction on the world’s tallest building began in New York: the Bank of Manhattan Trust Building at 40 Wall Street. Today, it’s “The Trump Building.” When its developers learned that the Chrysler Building would be even taller, they added three stories to the Manhattan Building to secure the title of “world’s tallest.” Then the Chrysler Building came along and added a giant spire, beating it by just over a hundred feet. Of course, that didn’t last long either. Each of these buildings held the title for less than a year before the Empire State Building topped out at 1,454 feet, more than 400 feet taller than the oth... -
Finance 0
The Stock Whisper Of The Day: SPY, GM, GDX
Hot stocks of the day: (SPY), (GM), (GDX). Video Length: 00:04:57... -
Finance 0
EUR/USD Breaks Downtrend Resistance
Finally a move in EUR/USD? The pair is making a break. Is it for real? Just earlier today we talked about the narrowing triangle that closes on EUR/USD and it is finally happening. The timing is peculiar: after a better than expected US figure, the greenback is actually falling across the board. ADP NFP came out 10K better than expected and with a 10K upwards revision. This was probably not enough: the break was brewing and the naturally bid euro (trade balance surplus) won over the speculation of further easing by the ECB. The result is on the chart. EUR/USD reached a high of 1.0975 before slipping a bit to the downside, yet it is well o... -
Finance 0
EC Have You Been Sucked Into The Warren Buffett Trap?
Warren Buffett is a legend among value investors — and for good reason. His investment record is unmatched by any other investor who existed in the last 100 years. Value investors, understandably, have tried to emulate Buffett’s approach to investing in order to snag a sliver of his returns. This typically means being glued to CNBC in the hopes of catching an interview, pouring over a mountain of books written about him, or combing through Warren Buffett’s annual letters for nuggets of wisdom. Unfortunately, trying to emulate Warren Buffett has led investors to adopt a less than ideal strategy. Don’t get me wrong. I li...
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