After nearly 4 years, retail investors have begun to exit low-yielding investment grade bonds for the perceived potential of stocks. This “rotation” of money flow into equity funds is putting pressure on fund managers to keep pace with the broader benchmarks. In other words, if they hold back cash in the hopes of a better [...] Continue Reading...
In simpler investing times, an investor purchased treasury bonds for their reliable income stream. Today, the only reason to buy iShares 7-10 Year Treasury (IEF) is for the potential that worldwide demand can push yields lower and prices higher. Similarly, there once was a time when dividends in technology stocks were a mere afterthought. You bought Apple (APPL) because it might go [...] Continue Reading...
Many of us in the financial services industry expected the outcome of the election to be determined by Ohio alone. Perhaps surprisingly, while Ohio was close throughout the evening, there was never a need for recounting the “Buckeye State” ballots; President Obama had won the electoral votes needed without a single-state showdown. While a protracted battle [...] Continue Reading...
On October 8, I served up the question, “Will Apple (AAPL) Nibble Away At Your ETF Portfolio?” At that time, the i-Everything producer had dropped -9% from its $702.10 closing price, while iShares DJ Technology (IYW) had slipped -4.3%. Then came an inauspicious earnings report. Later, an executive shake-up gave investors indigestion. And by the close [...] Continue Reading...
Apple (AAPL) has already pulled back more than 10% from its intra-day trading record. It finished out Columbus Day roughly -9.1% below its all-time closing peak of $702.10 per share. The culture-changer stock’s importance to the direction of the market cannot be overstated. For example, during the last 12 months, shares of the “i-everything” maker have moved [...] Continue Reading...
FedEx (FDX) recently blamed its weak profitability prospects on $4.00 jet fuel, as producers may be opting out of costly air shipments. However, railway transporters don’t expect a bottom line bonanza either. Norfolk Southern (NSC) lowered its earnings outlook on weakness in coal transportation as well as general merchandise; NSC fell as much as 6% [...] Continue Reading...
Since the October 2011 lows, my clients have benefited immensely from the middle of the risk spectrum. Prominent ETF areas — high yield corporate bonds, emerging market bonds, preferreds, REITs, dividend stocks — continue to provide remarkable price appreciation as well as reliable income. At the same time, yield doesn’t always have to come from traditional places. (Review [...] Continue Reading...
Are investors as scared as certain indicators seem to suggest? On the one hand, 10-year treasury yields have dropped to all-time record lows of 1.62% and the U.S. dollar via PowerShares Dollar Bullish (UUP) is sitting at fresh 52-week highs. On the other hand, gold prices have plummeted 20% from the top and the franc via Currency [...] Continue Reading...
Before the bell on Monday, 5/7/2012, Warren Buffett announced that he’d eagerly acquire shares in two major U.S. corporations. Yet tech standouts like Apple (AAPL) and Google (GOOG) aren’t on his “buy list.” Maybe they should be. According to Birinyi Associates, the current price-to-earnings ratio of the Dow Industrials is 14.5. For the NASDAQ 100? 11.8. Mr. Buffett [...] Continue Reading...
Financial stocks rocketed ahead in the first quarter and Bank of America (BAC) recently received a high-profile upgrade. So why is the SPDR Select Sector Financials Fund (XLF) one of the worst performers over the last 5 days? Aluminum giant, Alcoa, surprised Wall Street with its stronger-than anticipated earnings report. So why is the SPDR Select Sector [...] Continue Reading...
