EUR/USD: To 1.29 Or A Dip Before The Next Move?
EUR/USD topped 1.25 on Draghi’s weak jawboning but fell back down when Trump trumped up the dollar. What’s next? Here is their view, courtesy of eFXnews: EUR/USD: Flows To Drive Further M/T Strength; Valuation Models Point To 1.29; Dips A Buy – Danske Danske Bank Research discusses EUR/USD outlook and thinks that the pair is prone for further medium-term […]
E A Stable Genius Guide To 2018
The hour is getting late, as Bob Dylan told us while businessmen drank his wine and plowmen dug his earth, but never too late, dear reader, for our annual outlook. Our back-of-the envelope estimate for real fourth-quarter gross domestic product growth is an annual rate of 3.3%, higher than the consensus of 3.0%. The Atlanta […]
HH Korea’s Booming, Except It’s Not
Back in October, the Bank of Korea raised its economic outlook for the country. The central bank’s economic models foresaw rising fortunes, leading them toward a central tendency of 3% growth. At that level, Korea’s economy would be growing at the fastest rate in three years (what happened in between?). It was as much a […]
5 Asia Pacific Mutual Funds To Buy On Robust Growth
Asian stocks are back in the spotlight after major economies like China witnessed its fastest economic growth in seven years, while Japan registered two straight years of economic expansion. The sentiment surrounding Japan’s economic performance for this year also remains upbeat after manufacturer confidence reached an 11-year high and exports rose for 13 consecutive months. […]
A New Bull Market In Commodities Is Emerging
We’ve all watched in amazement while the equities markets around the world have risen to new highs. On Wall Street hardly a week goes by without a new record. There comes a time however when a sector becomes so overbought, that smart money begins to leave and search for a sector that has been overlooked. […]
What The Hell Is Going On With Asset Prices?
Tiho Brkan (@tihobrkan) tweeted out the following chart noting that yields on European junk bonds are now less than the yields on European equities. Tiho believes this has never happened before. In a related note, my brother and I were having a conversation over the weekend about how much equities have gone up and the […]
Bulls Under Siege – Sort Of
Last night I asked, “Does that make Nasdaq, Semis and Transports anomalies or harbingers?” Reason being yesterday’s break of S1 or the daily pivot support point. Today, Semiconductors and Transportation continued to decline while QQQs, IWM and SPY did as well. However, SPY, IWM and QQQs did not break the fast moving averages or S1. […]
Celgene Corporation Offers Compelling Growth Opportunity: Wedgewood
Missouri-based investment firm Wedgewood Partners loves Celgene Corporation (CELG), an $81-billion global biopharmaceutical company whose shares lost nearly 10% of their value in 2017. In its Q4 investor letter (you can download a copy here), Wedgewood said that Celgene was a top detractor to its performance during the fourth quarter due to a couple negative news events. […]
Starbucks Beats On Earnings, Posts Record Revenues For Q1
Starbucks Corp. (SBUX – Free Report) just released its first quarter fiscal 2018 financial results, posting non-GAAP earnings of 65 cents per share and revenues of $6 billion. Currently, SBUX is a #3 (Hold) and is down 3.3% to $58.55 per share in trading shortly after its earnings report was released. Starbucks: Beat earnings estimates. The coffee […]
Flying Blind, Part 3: Why Now Is Not The Time And Place For Nosebleed PE Multiples
As we indicated in Part 2, the very idea that you would pay 26X EPS for the S&P 500 at the tail end of a 103-month-long recovery cycle is truly ludicrous. That is, there is a time to anticipate strong profits rebound during the early years of a recovery, thereby meriting a robust PE multiple. But there […]
