As long as interest rates remain low, excess money eventually moves into riskier areas on the spectrum. Higher yielding bonds, convertibles, preferreds, stocks… they all benefit. Of course, if fewer people buy treasuries because they pursue greater risks, the Federal Reserve must continue to offset waning demand. Is $85 billion per month enough? It better be. Consider [...] [...more]
Citigroup’s Tom Fitzpatrick asserted that the U.S. market is emulating the pattern of a 1970s-style bear. The company’s chief technical analyst suggested that stocks would likely fall 20% or more on economic factors like sky-rocketing oil, declining economic activity, rising unemployment and a collapse in housing. There are quite a few problems with Mr. Fitzpatrick’s assertion. Unemployment is woefully high due to a [...] [...more]
Abbott Laboratories (ABT) sports 5-year dividend growth of nearly 10% as well as a 3.5%+ annualized yield. Eli Lilly (LLY) has a P/E of 9, a 5.3% dividend yield and 3-years earnings growth of 19%. Meanwhile, AstraZeneca PLC (AZN) has a mammoth 35% trailing return on equity with a 5.8% annual dividend payout. How in the world are investors [...] [...more]
Are you wondering if the market can go significantly higher by year end? Maybe your question should take the U.S. market’s remarkable resilience into account. Specifically, the S&P 500 has not closed in bear market territory. In fact, the large-cap barometer would have to close below 1096 to get there. Yet, with the exception of a few scary moments, the gauge has demonstrated its [...] [...more]
The Dow Industrials has dropped below 10,000 for the first time since February 8. Worse yet, the overwhelming majority of stock ETFs are noticeably lower than they were just one month ago. That said, many trend-followers look to the 200-Day moving average to determine the long-term direction of their specific investment. Here are 5 that may or may not surprise [...] [...more]
Amgen’s got a “Phase 3″ drug in its pipeline called, “Denosumab.” It has possibilities for a range of conditions from osteoporosis to treatment-induced bone loss to rheumatoid arthritis. Genentech has a “Phase 3″ hopeful with “Bevacizumab” (Avastin). This one’s designed to interfere with the blood supply to cancerous tumors. It is believed that if you cut off a tumor’s blood supply, you [...] [...more]
