The Australian Dollar touched on a 3-week peak against the US Dollar. That came in the wake of a one-two punch of better than expected inflation data and calmer equity markets which helped to list investors’ appetite for higher risk currencies. Unexpectedly upbeat inflation data also helped the Kiwi Dollar against the greenback in early trade. The recent recovery in oil prices, albeit small and perhaps fleeting, also gave the Kiwi some support. As reported at 10:38 am (GMT) in London, the AUD/USD pair was trading at $0.7039, a gain of 0.50%; in today’s trading the pair has ranged from $0.6992 to $0.7052. The NZD/USD was just off its openi...
The image below shows the 10 year cumulative returns of Johnson & Johnson (JNJ) and the S&P 500 (SPY): Source: Data from Yahoo! Finance $1.00 invested in Johnson & Johnson on 1/27/2006 is worth $2.33 versus $1.82 for the same investment in SPY (both include reinvested dividends). A large part of Johnson & Johnson’s outperformance over the last decade is because the stock fell less during the Great Recession (the red bars in the image above). There are plenty of investments that outperformed Johnson & Johnson over the last decade – but beating the market is nothing to sneeze at. There’s a hidden value to Johnson &a...
Today the Fed will decide whether or not to hike rates again. Remember, the Fed gave us a nice holiday gift when they last met in December. After months and months of talk, they finally acted to raise the federal funds rate by a quarter point. After the decision, Fed Chair Janet Yellen held a press conference and basically stated the time was right to start normalizing policy. And the market even moved higher after they raised rates, at least until the end of the year. Now, we’re facing a market meltdown in the U.S., European stocks aren’t looking so great, and China’s market has plunged even further into chaos. It’s a good thing the ...
Let’s begin with China, where the latest trade data shows a large discrepancy between what China supposedly imports from Hong Kong and what Hong Kong exports to China. Source: @tracyalloway As explained by the FT below, this is a form of capital outflow from China. With Beijing clamping down on other forms of capital withdrawals, cheating on trade invoices becomes the only viable channel by which significant amounts of capital can be moved offshore. Source: @FT Meanwhile, China’s stock market continues to sell off (in spite of the rally in the US on Tuesday). On a more positive note, China’s equity market is deleveraging, as...
EUR/USD The EUR/USD pair went back and forth during the course of the day on Tuesday as we continue to see quite a bit of volatility. The one thing that I am focusing on the most though is the fact that the 1.08 level has offered quite a bit of support. Ultimately, I believe that the market will probably turn back around and try to reach the top of consolidation near the 1.0950 level. I think that the market will more than likely be volatile regardless, and as a result you’re going to have to be able to deal with that kind of noise. I think that there is a significant amount of support all the way down to the 1.07 level though, so I’m not...
Apple’s (AAPL) guidance was considerably worse than expected, but always spinning positively, analysts proclaim somehow that it was “better than feared.” It appears not as AAPL is now down almost 4% despite every sell-side analyst’s pleas that “the bottom is in.” The ultimate “no brainer” stock is now down over 28% from its highs last year and analyst targets are still at $137 on average – a nearly 50% gain from here. And finally, as if a crashing stock was not enough, Apple’s Safari browser is reportedly crashing if users attempt to search – not a great day for Tim Cook....
Waiting to cut out the deadwood Waiting to clean up the city Waiting to weed out the weaklings Waiting for the final solution To strengthen the strain Waiting to follow the worms – Floyd Now comes the fun part of the week! I told you Monday’s drop would be meaningless and we had a full reversal yesterday and now we’re right back where we finished on Friday, which isn’t really such a good place, barely holding that weak-bounce 1,900 line on the S&P but at least it is holding and our Futures plays from yesterday morning put us in fantastic shape for today as my morning note to our Members was: Futures – I li...
Stanley Black & Decker (SWK) has paid its dividend for 139 consecutive years and increased it for the past 48 consecutive years. In two years, SWK will join the exclusive dividend kings list, which consists of companies that have raised their dividend for at least 50 straight years. These businesses are rare and typically possess numerous competitive advantages. In the case of SWK, the stock has also sold off by 15% since mid-December 2015 and trades at about 15x forward earnings, making the investment case even timelier for consideration in our Top 20 Dividend Stocks portfolio. Business Overview SWK was founded in 1843 and has grown int...