Category Archive: Finance
Can We Have An ETF Meltdown?
What is the magic that allows us to have intraday liquidity through an ETF on a market that itself trades more or less by appointment? Case in point: the high yield bond market. Or emerging markets. Or just about any bond market short of sovereigns and maybe agencies. Suppose there is a sudden rush for […]
A Long-Term Look At Inflation – Monday, October 16
The Consumer Price Index for Urban Consumers (CPI-U) released Friday puts the year-over-year inflation rate at 2.23%. It is substantially below the 3.76% average since the end of the Second World War and above its 10-year moving average, now at 1.74%. For a comparison of headline inflation with core inflation, which is based on the […]
4 Construction Stocks Poised For A Q3 Earnings Beat
The positive momentum witnessed in the U.S. construction sector at the beginning of 2017 is looking somewhat shabby now. Tepid housing sales data owing to inventory shortage along with two devastating hurricanes (Harvey & Irma) has been causing damage to the industry’s sales pace in recent times. The recent data reflects weakening sales figure with […]
Buyback Stats
Buybacks are surprisingly controversial. You wouldn’t think buybacks would be such a big deal because they are just an alternative way to give excess cash back to shareholders. However, they are blamed for the lack of productivity in the economy and juicing EPS numbers. If firms buyback stock instead of investing in capex, then it […]
Lithium Vs. Oil: An Unstoppable Divergence In The Energy Market
Lithium continues to torch oil in 2017. The Global X Lithium & Battery Tech ETF (NYSE: LIT) has been hyperbolic all year — up 57% to date. Meanwhile, the iPath S&P GSCI Crude Oil TR ETN (NYSE: OIL) is down 16%. The divergence between these two key energy commodities is shocking. See for yourself… So […]
E Why The Market Might Be Underpriced
Market Outlook As confirmed in the updated graph below, the overall equity market has been in a bullish uptrend since the third quarter began. Basically all the major indices have seen across-the-board gains over the second half of the year, which historically is supposed to be the worst for market performance. The majority of market […]
Macro Mondays: Social Security
Welcome to another edition of Macro Mondays! Today I think we would address a topic that is of great importance to millions of Americans, yet many might not fully understand the implications behind it. I’m talking, of course, about Social Security — the program that helps keep millions of seniors funded in retirement as well […]
China Wants The World’s Reserve Currency
In the aftermath of WWII the American economy was that shining city on a hill. After saving mankind from the Nazi’s, America had the only intact manufacturing base and was the repository for most of the world’s gold. Those circumstances propelled the US dollar to world’s reserve currency status. And for the past seventy years, […]
Exelixis Surges After Cabometyx Granted Priority Review, Meets Endpoint In Trial
Shares of Exelixis (EXEL) jumped in early trading after the biopharmaceutical company said it received priority review from the U.S. Food and Drug Administration for a treatment for advanced renal cell carcinoma. Separately, the company said a global Phase 3 trial met its primary endpoint of overall survival. FDA PRIORITY REVIEW: Exelixis announced this morning […]
