October 2018 - Page 231 of 262 -

E U.S. Repatriated Earnings Have Been A Boon To The Stock Market

Oct 04, 2018 Jeremy Parkinson Finance, No picture 0

U.S. multinational corporations had up to recently accumulated as much as $2.6 trillion of overseas profits. To avoid recently higher U.S. corporate tax rates, U.S.-based companies operating internationally have kept their foreign earnings in subsidiaries overseas rather than bringing them back to the United States. One of the main purposes behind Congressional Republicans attempt to […]

Earnings Growth Drives Total Return And Dividend Income

Oct 04, 2018 Jeremy Parkinson Finance, No picture 0

Introduction This article was inspired by an interesting debate between two commenters on my most recent article “Why a 15 P/E Ratio Represents Fair Value for Most (Not All) Companies.” In a nutshell, the argument revolved around whether dividends were a driver or a contributor to total return. Interestingly, one of the commenters even suggested […]

Another Italian Drama – Why It Matters

Oct 04, 2018 Jeremy Parkinson Finance, No picture 0

Government deficit out of control, irresponsible government policies, tumbling bond prices and bank share prices, threat of rating-agency downgrades, political instability – we have seen similar Italian dramas in the past that, in the end, did not lead to serious financial market contagion. Nevertheless, there are reasons to be concerned that this time the impact […]

Saudi America: Why The Shale Revolution Is Real

Oct 04, 2018 Jeremy Parkinson Finance 0

Bethany McLean didn’t intend her latest book, Saudi America: The Truth About Fracking and How It’s Changing the World, to be a booster of the Shale Revolution. The New York Times got it all wrong when they titled her promotional op-ed The Next Financial Crisis Lurks Underground. Before reading her book, I therefore, assumed that in forecasting a collapse […]

Q2 GDP Remains Robust: 5 Growth Fund Picks

Oct 04, 2018 Jeremy Parkinson Finance, No picture 0

According to the Bureau of Economic Analysis’ final estimate, U.S GDP increased 4.2% in the second quarter, unchanged from the earlier estimate. The fastest pace of growth in almost four years was powered by increases in investment and expenditure across several categories. The Trump administration’s tax cuts program was the primary force that powered the […]

Light Vehicle Sales Per Capita: Our Latest Look

Oct 03, 2018 Jeremy Parkinson Finance, No picture 0

Note: The charts below have been updated to include the latest report on U.S. Light Vehicle sales from the BEA. For the past few years, we’ve been following a couple of transportation metrics: Vehicle Miles Traveled and Gasoline Volume Sales. For both series, we focus on the population adjusted data. Let’s now do something similar with the Light Vehicle […]

How To Play Dow Jones’ Surge With ETFs

Oct 03, 2018 Jeremy Parkinson Finance, No picture 0

The Dow Jones Industrial Average hit a record high on optimism around global trade. The United States reached a trilateral agreement with Mexico and Canada governing $1 trillion worth of trade. The new agreement, called the U.S.-Mexico-Canada Agreement, is expected to be signed by leaders of the three countries in November before moving to Congress […]

Will Phillips Curve Revenge Trigger Inflation?

Oct 03, 2018 Jeremy Parkinson Finance 0

Milton Friedman promulgated the Phillips Curve interpretation that posits a tight labor market generates higher inflation. Since 1967 this has been the primary tool of Central Banks and economists in forecasting inflation. During the previous generation, it appeared that falling unemployment during an economic recovery would always trigger a strong inflation response. Today’s near-record low […]

Peak Earnings: Companies Furiously Guide Earnings Estimates Lower

Oct 03, 2018 Jeremy Parkinson Finance, No picture 0

At what point does the profit bubble pop? Based on corporate guidance, perhaps it already has. Amid trade tensions, the rising US dollar, and a clear slowdown in Asia and Europe CEO sentiment has gone sour. As a result, Companies Are Furiously Guiding Down Analyst Earnings Estimates. At what point does the profit bubble pop? Ever […]

Physical Strength Keeps Nat Gas Futures Going

Oct 03, 2018 Jeremy Parkinson Finance 0

The November natural gas contract continued its rip higher, tacking on another 2% to its recent rally today. As has been the trend the last couple of days as well, gains were largest at the front of the strip. The result is that the November/March X/H spread is still significantly blowing out. Pipeline constraints have […]