Category Archive: Finance
US Stocks Reach Historic Highs
Don’t buy Your Dow 23,000 Souvenir Hats Yet The Dow Jones briefly tipped over the 23,000 mark, the first time this has every happened since the founding of the index. Although the Dow closed slightly below the historic high, it did continue its sequence of 50 record closing. Even though it saw a retreat during […]
Thomas Friedman Pushes The TPP Joke
When it became impossible to sell the Trans-Pacific Partnership (TPP) on its economic merits, proponents of the deal began to argue for it as a way to contain China’s power in the region. Thomas Friedman picks up this line and runs with it in his latest column. “Trump came into office vowing to end the trade […]
September 2017 Residential Building Slowing Cycle Continues
The headline residential building permits declined and construction completions improved. But we keep our eyes on the rolling averages because of the significant monthly fluctuations. Analyst Opinion of Residential Building The backward revisions this month were strongly downward.The nature of this industry normally has large variations from month to month (mostly due to weather) so […]
Why Are Banks Paying So Little Interest On Deposits?
Interest rates on deposits at banks, and even credit unions, are so low as to hardly be worth the bother. Bank profitability is up, the FDIC reported, and some banks are increasing their dividends. So why aren’t they paying more on deposits? Banks make most of their profits by taking in deposits, lending the money out […]
Oil Algos Shocked As US Crude Production Crashes Most In Over 5 Years
Following API’s huge 7.1mm barrel crude draw overnight, WTI prices are slightly higher (driven more by OPEC jawboning) as last week’s API errors are still on traders’ minds, but DOE confirmed a big crude draw but notable builds in gasoline and distillates surprised. However, the biggest headline is likely the 11%-plus collapse in US crude production… API Crude -7.13mm […]
Seniors: How To Prepare For Rising Rates
The unwinding of the Federal Reserve’s balance sheet, improving jobs numbers and increasing wage demand have convinced most economists that higher interest rates are in our future. On the surface, this seems like a good thing for retired persons who, for the past nine years, have earned next to nothing from their preferred investments – […]
Costco’s Price Advantage Is Its Moat Vs The Amazon Effect
On June 15th, Costco (CSCO ) stock was trading at $180. The next day Amazon (AMZN) announced its deal to acquire Whole Foods (WFM) which sent supermarket stocks and Costco shares tumbling. Investors feared that Amazon would destroy the supermarkets much like it did with bookstores and electronics retailers. If retailers don’t adapt or have […]
Abbott (ABT) Beats Earnings And Sales In Q3, Tweaks View
Abbott (ABT – Free Report) is an Illinois-based company focused on bringing a diverse line of healthcare products to the market. Abbott Labs reports its diversified business in four segments – namely Established Pharmaceuticals Division (EPD), Medical Devices, Diagnostics and Nutrition. The company has reshaped its portfolio through strategic acquisitions/divestitures in recent times. It has also been taking […]
Should You Wait For Valuations To Improve?
One of my favorite Wall Street clichés relating to stock market valuations goes something like this: “Valuations don’t matter until they do, and then they matter a lot.” Actually, you can probably replace the word valuations with any issue you’d like and the phrase would still work. However, since valuations continue to be a rather […]
Gold And German DAX Update
Good day traders! Let’s look at gold and german dax. Gold is unfolding a bearish reversal away from the highs, where we labeled end of wave B. Current five-wave drop now indicates more weakness to follow, but after a pullback takes place (we are talking about wave ii). That said, blue wave one can be […]
