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Weekend Reading: The Return Of Stagflation

Weekend Reading: The Return Of Stagflation

One of the worst possible outcomes for the U.S. economy, and ultimately for investors, is stagflation. Of course, if you weren’t around in the 60-70’s, there is a reasonably high probability you are not even sure what “stagflation” is. Here is the technical definition: “stagflation – persistent high inflation combined with high unemployment and stagnant demand in a […]
Stanley Black & Decker (SWK) Tops Q1 Earnings, Sales

Stanley Black & Decker (SWK) Tops Q1 Earnings, Sales

Stanley Black & Decker, Inc. (SWK – Free Report) is a leading global manufacturer of branded tools and engineered solutions for professional, industrial and consumer applications. Also, the company provides integrated access and security solutions to commercial, institutional and residential customers. This New Britain, CT-based company has a $23.8 billion market capitalization. However, Stanley Black & Decker’s exposure […]
Quantifying The Value Of Retirement Accounts

Quantifying The Value Of Retirement Accounts

Many people talk about the tax benefits of retirement accounts. However, few attempt to quantify and estimate the actual benefits. To make matters worse, when the topic is addressed, many of the discussions rely on flawed logic and do not properly measure the true benefit. For example, I often hear investors (even investment and tax professionals) summarize […]
Cryptos Continue To Surge As Tax-Day Passes

Cryptos Continue To Surge As Tax-Day Passes

Cryptocurrencies are continuing their post-tax-day gains with Bitcoin above $8500, Ethereum at almost $600, and Ripple up over 30% on the week. With Bitcoin back above $8,500… And Ethererum is back above $550 – testing towards $600… Certainly, for now, the anecdotal performance suggests Tom Lee’s tax-based-selling these is playing out with strength continuing, but, […]
Morning Call For Friday, April 20

Morning Call For Friday, April 20

Overnight Markets and News Jun E-mini S&Ps (ESM18 +0.06%) this morning are up +0.13% on optimism S&P 500 Q1 corporate earnings will continue to surprise to the upside. General Electric is up 3% in pre-market trading after it reported Q1 adjusted EPS of 16 cents, higher than expectations of 12 cents. Gains in the overall […]
Virtual Oil Reality

Virtual Oil Reality

Oil bear must face virtual reality as OPEC says that the global oil glut is “virtually” gone. Now there are reports that the Saudi oil minister Khalid al Falih wants to reduce stockpiles even further. Russian Energy Minister Alexander Novak is on board saying that Russia was committed to a deal on cutting oil supplies […]
Stable Shakeout

Stable Shakeout

So here’s an interesting concept. Rather than simply accepting the extreme volatility that is inherent in cryptocurrencies, a project called Basis just raised $133 Million to create a new stablecoin. The idea is to implement an algo-driven monetary policy, similar to what central banks do but without human interference. Of course, as with most crypto-related projects the […]
USD/JPY Bullish Trend Line Cross Targets Higher Levels

USD/JPY Bullish Trend Line Cross Targets Higher Levels

Source: Admiral Markets MT5 with MT5SE Add-on The USD/JPY has broken through a trend line boosted by rising 10-year US yields. The US 10-year yields were up and we can see the USD/JPY going up too. Leaned bullish W pattern and X cross of two trend lines are technically suggesting upside continuation. 107.05-20 is the POC zone and […]
High-Dividend Stocks: A Lonely Opportunity?

High-Dividend Stocks: A Lonely Opportunity?

There is a market “truism” that needs to be set straight. In summary: “Rising interest rates hinder high dividend equities.” We’d rephrase it this way: “Rising rates have been hindering high-dividend equities in the last couple of years, but over any sizable time frame, the causal relationship between rates and equity factors has been cursory at best.” With […]
HH

                        Why Are Companies Adding Excess Debt?

HH Why Are Companies Adding Excess Debt?

Every business cycle has a debt build up followed up an inevitable deleveraging. In order to grow their businesses in excess of existing cash flow, firms need to take out debt when the economy is expanding and they need to de-risk the balance sheet in times of financial stress to bring the debt to equity ratio to […]