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Market Talk – Monday, Oct. 8

Market Talk – Monday, Oct. 8

Asia was more concerned about the weakness of the core Chinese markets after last weeks holiday. The Peoples Bank of China cut (by 100bp) the reserve ratio for lenders on Sunday and that move spooked an already wobbly market. The Hang Seng had already responded to higher US rates last week and so closed off […]
Worried About Stocks? A Little History That Might Help You Sleep Better

Worried About Stocks? A Little History That Might Help You Sleep Better

We have seen this movie before … And many times. The United States Treasury 10-year note breaching a 3% yield (peaking last week at 3.248%) after another quarter point bump in the Fed funds rate (to 2.25%) has rattled the market again. “Again” is the operative word. This happens every time that the Fed moves […]
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                        Caterpillar: Will The Rally Resume?

E Caterpillar: Will The Rally Resume?

Caterpillar (CAT) is a manufacturer with a large presence in multiple industries. The company can be considered an agriculture stock because many of its machines are used in the farming industry. But Caterpillar goes beyond agriculture… The company breaks its operations down into 3 broad segments: Construction Industries Resource Industries Energy & Transportation Caterpillar’s diversification […]
The Next Financial Crisis Is Starting In Emerging Markets

The Next Financial Crisis Is Starting In Emerging Markets

The 2008 financial crisis was well overdue, what with predictably slowing demographics, especially in the U.S. at first, and an unprecedented debt bubble in the developed countries. The trigger was the subprime crisis – a small, but high-risk sector of really bad loans that started to blow up when everyday households started to default on […]
The World’s Biggest Real Estate Bubbles In 2018

The World’s Biggest Real Estate Bubbles In 2018

With the current stock market bull run reaching nearly 10 years in length, it’s understandable that many investors are nervous about the end of the party coming sooner than later. However, as UBS notes in its latest report, there is also growing concern about another prominent bubble that’s been in the works since the aftermath […]
Bullish Trade Setups For A Potential Market Bounce

Bullish Trade Setups For A Potential Market Bounce

It is a little thinner than usual, but the bullish watch-list still has some potential plays worth keeping an eye on.  Though we have seen much more selling than usual in the stock market of late, one thing is certain, the bulls keep bouncing price in the afternoon. The bulls are showing a resilience that […]
2.5 Years And $570 Billion Ago

2.5 Years And $570 Billion Ago

It hasn’t been a good few weeks for Amazon.com (AMZN). After breaching the trillion-dollar market cap level in early September, the stock has been under a fair amount of selling pressure, pulling back about 9% in the span of a month. As a result of this pullback, AMZN recently broke down and closed below its 50-DMA […]
5 Dirt-Cheap PEG Stocks That Value Investors Love

5 Dirt-Cheap PEG Stocks That Value Investors Love

At a time when volatility strikes every second day, investors are often seen to choose value investing over other options like growth or momentum. These investors wait for the moment when other investors start selling their stocks at a discount. They consider this distress selling as the perfect market entry point to get hold of […]
Fifth Bond Sale Pulled As Europe’s Junk Bond Market Cracks

Fifth Bond Sale Pulled As Europe’s Junk Bond Market Cracks

Over the weekend, we laid out the latest analysis by BofA’s Barnaby Martin who showed that whereas US junk bonds remained at near record tight spreads despite mounting volatility across most other asset classes, the European junk bond bubble appears to have finally burst. Specifically, and in stark contrast to shrinking US spreads, European high-yield spreads have […]