Category Archive: Finance, No picture
USD/CNH Stays Elevated As Markets Await Next Shots In Trade War
The China-US trade war is set to deepen later this week when the public comment period for the US tariff proposal ends on Thursday, September 6. The US has already imposed tariffs on $52 billion worth of Chinese imports, and the new measures would place tariffs on essentially half of all Chinese imports into the […]
Amazon Hits Trillion Dollar Market Cap: ETFs To Buy
Amazon (AMZN – Free Report) is now the second U.S. trillion-dollar company, trailing Apple (AAPL – Free Report), which crossed the threshold on Aug 2. Shares of AMZN jumped as much as $2,050.50 per share on the first day of trading in September, lifting the market cap of the e-commerce powerhouse to more than $1 trillion. The recent rally […]
Regression To Trend: Another Look At Long-Term Market Performance – Wednesday, Sept. 5
Quick take: At the end of August the inflation-adjusted S&P 500 index price was 121% above its long-term trend, up from 116% the previous month. About the only certainty in the stock market is that, over the long haul, over performance turns into underperformance and vice versa. Is there a pattern to this movement? Let’s apply […]
Big Tech’s Three Identical Strangers
The U.S. government must determine how to deal with the negative consequences of some of the last decade’s most successful internet-based businesses. Alphabet, Facebook and Amazon grew up as strangers and have developed monopolies in search, social media and in e-commerce. The stock market has been very excited about the control over people they have […]
More Dominos
You get the impression often that these guys have no idea what drives the dollar. They cling to all sorts of theories, of course, from interest rate differentials to perceptions of economic strength. That seemed to be the case in 2017 and its “weak dollar” environment. Globally synchronized growth would mean potency pretty much everywhere, […]
Trade Deficit Jumps 9.5% To 5-Month High: Exports Down, Imports Up
Trump is sure to be howling of the latest trade report. The deficit widened 9.5% to a 5-month high. China led the way. The Census Bureau’s International Trade Report shows the goods and services deficit was $50.1 billion in July, up $4.3 billion from $45.7 billion in June, revised. Exports, Imports, Balance July exports were $211.1 billion, […]
The Q Ratio And Market Valuation: August Update – Wednesday, Sept. 5
Note: This update includes the August close data. The Q Ratio is a popular method of estimating the fair value of the stock market developed by Nobel Laureate James Tobin. It’s a fairly simple concept, but laborious to calculate. The Q Ratio is the total price of the market divided by the replacement cost of all […]
3 Top Dimensional Mutual Funds To Add To Your Portfolio
Founded in 1981, Dimensional Fund Advisor offers investment solutions from different asset classes to institutional and individual investors, investment consultants and financial advisors. It boasts more than 1,200 investment professionals across 13 offices in nine different countries from North America, Asia, and Europe. Dimensional had nearly $582 billion of assets under management as of Jun […]
Goldman’s Bear Market Indicator Shows Crash Dead Ahead, Asks “Should We Be Worried?”
One year ago, we reported that in its attempt to calculate the likelihood, and timing, of the next bear market, Goldman Sachs created a proprietary “Bear Market Risk Indicator” which at the time had shot up to 67% – a level last seen just before the 2000 and 2007 crashes – prompting Goldman to ask, rhetorically, “should […]
The Impact Of Rising Rates On Multifactor Strategies
With multifactor investing gaining traction in recent years, investors now have 440 multifactor ETFs and index mutual funds with a total of $74 billion in assets1 to choose from. The investing community has largely accepted and focused on five primary factors—size, value, quality, momentum and low volatility—which serve as the bedrock of multifactor funds to varying degrees. When WisdomTree was researching […]
