The fiscal cliff steals the financial headlines on a daily basis. Yet, in spite of increasing volatility and year-end uncertainty, the hot topic hasn’t moved the broader market’s needle. Since the 11/6 election more than 6 weeks ago, the S&P 500 SPDR Trust (SPY) has effectively ended in the same place it began. Bears believe this [...] Continue Reading...
Are we tiring of the fiscal cliff story? Is it becoming cliche to state the obvious… that uncertainty over the resolution of expiring tax breaks and potential spending cuts is adversely affecting the stock market? Perhaps. Yet one avenue that hasn’t received as much digital ink is the possibility that “yield” is turning into a dirty [...] Continue Reading...
Shortly after U.S. stock markets hit multi-year highs on September 14, Pacific Investment Management Co. (PIMCO) declared that the probability of widespread recessions in developed countries is rising. In early October, the International Monetary Fund (IMF) warned that the chances of economic contraction in the U.S. and Japan are 15% and 25% respectively, while essentially confirming [...] Continue Reading...
It may not take much to send the markets down these days. A profit miss by Google. A weak revenue showing by McDonalds. Or perhaps the most detrimental data point of the week: Existing home sales fell 1.7% on a year-over-year basis. With interest rates this low, properties have become increasingly affordable. Yet existing homeowners who [...] Continue Reading...
It was a only a week ago when Apple share price euphoria contributed to an exceptionally bullish tone on the “Street.” In essence, with the world’s central banks determined to depress interest rates at any cost, many insisted that electronically-printed money would continue finding its way into stocks. What was forgotten in the excitement of bond [...] Continue Reading...
Telecommunication service providers from Verizon (VZ) to AT&T (T) to Sprint Nextel (S) have rocketed over the last 3 months. Some attribute the share price appreciation to investor thirst for high dividend yields. Others regard telecom as a non-cyclical sector like health care and staples, where economic concerns may be driving participants toward safer havens. Then again, there may be multiple reasons for the “tele-tremendous” [...] Continue Reading...
You may have heard some of the statistics before. Less than 10% of Brazil’s roads are paved. More than 1/3 of India’s population lives without electricity in the home. And roughly 50% of Indonesians in the city of Jakarta (50%) do not have running water. In essence, if emerging markets are going to genuinely emerge, they’ll need to modernize. [...] Continue Reading...
On Thursday, 6/28/2012, Germany’s Angela Merkel seemed to be singing Tom Petty’s iconic tune, “I Won’t Back Down.” By Friday 6/29/2012, many would say that Europe’s most visible leader blinked. In brief, heads of the 17 euro sovereignties agreed to drop requirements related to aiding Spain’s hapless banks. What’s more, there appears to be agreement with respect to recapitalizing European banks [...] Continue Reading...
Banks in the United States received billions of government-sponsored investment dollars to cover monstrous mortgage debt losses. Similarly, banks in Europe are looking for a similar lifeline to shore up balance sheets plagued with toxic Spanish and Italian country bonds. On Friday, June 8, investors are inclined to believe that the Eurozone will come to the [...] 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...
