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  • Finance 0

    Don’t Dismiss The Systemic Risk Of A Corporate Credit Bust

    After the worst start to a new stock market year in history, some have begun to wonder if the unusual weakness is a sign of larger problems in the economy or financial system. Certainly, the growing strains in the credit market suggest it’s more than, “just an energy thing.” These worries have been met with a popular response. I’ve seen a variety of headlines conclude, “why this market meltdown isn’t a repeat of 2008,” or something along those lines. But this rush to judge may be premature. The incredible boom we have seen in corporate credit in recent years is actually very similar to the boom in the mortgage market which led t...
    On February 2, 2016 / By
  • Finance 0

    Will Taco Bell Carry Yum Brands To Strong Q4 Earnings?

    Photo Credit:Mike Mozart Yum! Brands, Inc. (YUM) Consumer Discretionary- Hotels, Restaurants & Leisure| Reports February 3, After Market Closes. Best known as the parent company of Taco Bell, Pizza Hut and KFC, Yum Brands (YUM) is scheduled to report Q4 2015 earnings February 3, after the market closes. The fast food giant made headlines this past quarter when they announced a split of its operations, featuring a sole China division. Until Yum completes the Yum China spinoff, China is still what matters most to Yum, representing 35% of its current operating income. On top of weakness in China, macroeconomic concerns, including foreign ex...
    On February 2, 2016 / By
  • Finance 0

    5 REITs Upping Their Dividends In March

    A big dividend increase that sends a share price rallying is just what your portfolio needs to remedy this ugly and volatile market.  As a dividend-focused investor, I put less emphasis on short-term share price fluctuations and more emphasis on dividend yields and dividend growth prospects. When the markets get ugly such as what we have experienced in the first month of 2016, it is good to go back to the basics of dividend investing, which for me is dividend growth. A growing payout should, over time, result in a higher share price. One nice way to get a quick start to capital gains from dividend growth is to buy shares just before an annou...
    On February 2, 2016 / By
  • Finance 0

    EC Saudi Arabia’s Oil “Proposal” – Here’s What’s Really Going On

    Last Thursday, Russian Energy Minister Alexander Novak claimed that Saudi Arabia had proposed a 5% cut in oil production. That set the oil price roller coaster off and running, with crude prices shooting up to levels not seen in a month. As of close of oil trade Thursday (2:30 p.m. ET), West Texas Intermediate (WTI) – the New York benchmark oil rate – was up 7.7% since that Monday, with the first three-day price rise of the year. There is only one problem. My contacts in OPEC and Saudi Arabia tell me that things look very different behind the scenes. Here’s what’s really going on… Saudi Arabia Can Weather Low Oil Price...
    On February 2, 2016 / By
  • Finance 0

    E Preserve Capital – Relentless Slide Toward Deflation And Negative Nominal Rates

    I have talked a lot about demand for bonds, especially long bonds as collateral in derivatives markets. This demand has driven down yields and raised prices, so much so that Larry Summers fears a shortage of bonds, making the bond prices even more outrageous in a never ending bid for higher prices. I have written about how the economy cannot boom, but only experience slow growth, in this regime of perma-low interest rates, with the Fed even predisposed to keep rates low. I wrote here about the four ways I see that the Fed is so predisposed: So, we need to look at the ways in which the Fed has set things up to predispose it to keep rates low. ...
    On February 2, 2016 / By
  • Finance 0

    Fitbit Seen As More Than ‘One-Hit Wonder’ With Digital Health In Early Innings

    Fitbit (FIT) is a leader in the wearable space, a market that is “just beginning,” while the company should benefit from the tremendous growth of the fitness and digital health markets over the next 5-10 years, according to Oppenheimer analyst Andrew Uerkwitz. Given the coming opportunity, Fitbit’s stock is undervalued, according to the analyst, who initiated coverage of the shares with a $25 price target and Outperform rating. Eearly innings: Fitbit is best positioned to exploit the trends of real-time analytics and digital health, which are both in the early innings of adoption and technical development, Uerkwitz believes....
    On February 2, 2016 / By
  • Finance 0

    44 Straight Years Of Dividend Growth And A 3.1% Yield: LEG

    Leggett & Platt (LEG) is a blue chip dividend stock that has rewarded investors with 44 consecutive dividend increases. With operations dating back to the 19th century and a 3.1% dividend yield, LEG is an interesting company for dividend investors to analyze. Business Overview LEG was founded in 1883 and patented the first steel coil bedspring. Over 130 years later, the company has grown into a diversified manufacturer of a broad variety of engineered components and products (e.g. innersprings, recliner mechanisms, adjustable beds, steel wire, seat frames, carpet cushion, armrests, etc.) used in bedding, furniture, carpet, cars, planes,...
    On February 2, 2016 / By
  • Finance 0

    USD/JPY 4-Hour & Daily View. No Follow-Through…

    Author Note: 1 February 2016/10:05 p.m. ET A series of a-b-c wave sequences… after the sharp rally on Friday, on news of the BOJ deciding to move to negative interest rates on new QE, there was no follow-through in USD/JPY. We have been seeing a series of a-b-c waves; Friday’s rally extended to a key level—maybe Mr. Market going to wrong-foot the crowd here?Is the move by the BOJ more really matter? Daily momentum is fading and there was divergence on the 4-hour chart as prices rallied into the near-term high; often an indication of at least a near-term correction lower… if we get stopped into this trade I will look to reduce risk ...
    On February 2, 2016 / By
  • Finance 0

    If Investors Get More Stimulus, Will They Take More Risk?

    The U.S. economy continues to show signs of frailty. U.S. gross domestic product (GDP) expanded at a feeble pace of just 0.7% in the 4th quarter. In the same vein, the Atlanta Fed’s GDP forecast for the first quarter of 2016 is just 1.2%. There’s more. The manufacturing segment of the economy has contracted for four consecutive months. Meanwhile, year-over-year growth for total business sales as well as retail have steadily eroded. Also, year-over-year activity for corporate spending on tangible assets like equipment, buildings and machinery (i.e. capital goods) has decelerated, ultimately turning negative. Throughout the course of the c...
    On February 2, 2016 / By
  • Finance 0

    5 Market-Beating International ETFs YTD

    The worries that cropped up last year intensified with the start of this year, leading to brutal trading in stocks across the globe. This is especially true aas Vanguard FTSE All-World ex-US ETF (VEU – ETF report) targeting the international equity market has lost about 5.8% from a year-to-date look compared to a loss of 5.5% for iShares MSCI ACWI ETF (ACWI – ETF report), which targets the global stock market including the U.S. In particular, the collapse in oil price to below the 12-year lows and persistent weakness in China are the major culprits of the woeful performance. Emerging markets have been struggling while develop...
    On February 2, 2016 / By