One way to lose a war is to focus on preparing to fight the last war. Preparing to fight the last war is a characteristic of losing generals, militaries and nations. The same is true of finance and economies. General Grant’s difficulties in breaking the trench warfare around Petersburg, VA in the last year of the American Civil War (1864 to early 1865) telegraphed the future of trench warfare to astute observers. Few took heed of the lessons of the “first modern war,” and many of the same strategies of 1864 (digging a tunnel under enemy lines and filling the tunnel with explosives to blow a hole through their defenses, for...
Every year can be defined by a few key events that shape the entire outcome and affect everybody’s lives. With that in mind, here are our three boldest predictions for what will end up being some of the biggest headlines in 2016, and how to prepare your portfolio. Investors got treated like the proverbial rented mule in the opening two weeks of 2016. Equities behaved a bit better in the back half of the month, and thanks primarily to a big rally on the last trading day of January actually posted slight gains. Still, the major indices were down five to eight percent for the month, and January will now be recorded as the worst monthly perform...
By ignoring unintended consequences – spinning around global monetary or interest rate policy moves (especially the trend toward negative rates we took to task quite extensively last night); the optimists rationalizations have instead rapidly moved to weaken the Street’s credibility to ‘stay the course’ with longs. A sign of this was Larry Fink’s (Black Rock) admonition in a letter to hundreds of corporate CEO’s today, in which he chastised their focusing on shorter-term nuances like minor earnings changes or guidance, rather than reverting totally to extolling long-term virtues and ‘strategic...
The Chart of the Day belongs to NextEra Energy (NYSE: NEE). I found the electric services stock by sorting Barchart’s All Time High list for the highest technical buy signals, then used the Flip Chart feature to review the charts. NextEra Energy, Inc. is a leading clean energy company. Headquartered in Juno Beach, Fla., NextEra Energy’s principal subsidiaries are Florida Power & Light Company and NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world’s largest generator of renewable energy from the wind and sun. Through its subsidiaries, NextEra Energy generates clean, emissions-...
Stocks began the session in negative territory and remained there throughout the entire session. The early weakness was attributed to oil prices, which were down early and never recovered during the day. The losses of more than 5% brings the loss over the past two days to more than 10%, pushing WTI crude back below $30 a barrel and squashing equities in the process. Any hope that oil prices would de-couple from stock prices will have to wait another day as the two continue to move in lockstep with each other. Even a solid earnings report from tech bellwether Alphabet (GOOG) could not help the market. ECONOMIC EVENTS: In the U.S., the economic...
USDJPY: Having the pair sold off hard on Tuesday, further downside pressure is likely in the days ahead. On the downside, support comes in at the 119.50 level where a break if seen will aim at the 119.00 level. A cut through here will turn focus to the 118.50 level and possibly lower towards the 118.00 level. Its daily RSI is bearish and pointing lower suggesting further weakness. On the upside, resistance resides at the 120.50 level. Further out, we envisage a possible move towards the 121.00 level. Further out, resistance resides at the 121.50 level with a turn above here aiming at the 122.00 level. On the whole, USDJPY looks to build up ...
Savills, a global real estate services provider listed on the London Stock Exchange, has released its annual report on the role that real property plays in the investment world. Here are some of its key points: Real estate assets constitute 60% of the value of all assets worldwide; Residential real estate constitutes 75% of the value of the world’s real estate – the remainder is about evenly split between commercial and agricultural uses; Of the world’s high-quality commercial real estate, 45% is in North America; Cross-border activity in real estate has grown since the global financial crisis of 2008 – in this connection the author o...
FOMC Voting Member Esther George issued a vote of confidence for the economy, despite financial turmoil returning across asset markets again today. With front month WTI back under $30, her idea of a strong economy and anchored inflation expectations is still highly imperiled. She remains completely dogged, however, undeterred for further “normalization” of monetary policy largely as the US economy is doing, by her estimation, really well: “The fundamentals of the U.S. economy currently appear strong enough to sustain positive growth going forward,” George said in a speech to a business group in Kansas City, Missouri. The brief articl...
How Much Trouble is Twitter Really In? Quite a lot, it seems. Twitter (TWTR) is in a world of hurt. Over the last several quarter, user activity fell steadily. The company is not even making up new metrics that would make things look better. The stock’s decline is in line with the fundamental deterioration in the company’s fundamentals. At a market capitalization of $12.23 billion, Twitter is still expensive, and still very relevant in social media. What is Twitter worth? Executive departures Twitter faced an exodus of executives on January 24. Alex Roetter (engineering), Katie Jacobs Stanton (Media), Kevin Weil (Products), and Jason Toff...