E Fed Stays Put
Earlier today, Federal Reserve Chair Janet Yellen and the FOMC decided to keep the benchmark interest rate unchanged, at 1-1.25%. The two-day policy meeting also resulted with the committee announcing that they will start to normalize their massive $4.5 trillion balance sheet of Mortgage Backed Securities and US Treasuries “relatively soon.” Both “decisions” seemed to […]
Millennials Are Killing Motorcycles Too
There’s nothing sadder than a new Harley-Davidson “hog” coming off the assembly line… Only to be greeted by skeptical looks from millennials wondering: “Yo, where’s the USB port on this thing, dude?” I’m joking, but America’s premier motorcycle maker recently received an up-close look at the dangers of not paying close enough attention to the […]
Draghi Did Not Keep His Promise
It is like a great many things forgotten now, but five years ago today the head of the ECB compared Europe to a bumblebee. That’s not quite right, however, as Mario Draghi really said the euro was like a bumblebee, but you’d be forgiven for mixing the two up. The purpose of his folksy analogy was so […]
GasLog – Chart Of The Day
The Chart of the Day belongs to GasLog (GLOG). This Liquefied Natural Gas (LNG) carrier is a turnaround growth stock. I found it first by using Value Line to screen its data base for stocks analysts predict will have at least 10% growth in both Revenue and Earnings over the next 3-5 years. I used Barchart to sort that […]
Mid-Year Valuation Review
One of the key issues in the stock market revolves around the idea of valuations. Cutting to the chase, the question is whether or not the growth rate of the economy and, in turn, earnings, is strong enough to justify what most see as lofty valuation levels in stocks. One of the key lessons I’ve […]
Housing Bubble 2.0: Making America More Unstable Again
With low inflation and continuing stagnation in median wages another housing bubble is just what the doctor ordered as a cure for the last financial crisis, caused in part by the rampant financial fraud associated with Housing Bubble 1.0. And it looks like we have yet another tech stock bubble well underway. While the public […]
Home Health Stocks Plunge After CMS Proposes Changes To Medicare Payments
Shares of home health services providers are sliding after the Centers for Medicare & Medicaid Services, or CMS, issued a proposed rule that would update the 2018 Medicare payment rates and restructure its reimbursement system in 2019. Mizuho analyst Sheryl Skolnick downgraded Amedisys (AMED) to Neutral following the news. NEW PAYMENT SYSTEM: According to its […]
HH 22 Troublesome Facts
Below are 22 realities to explain why 720Global does not recommend following the herd. Equity/Bond Valuations The S&P 500 Cyclically Adjusted Price to Earnings (CAPE) valuation has only been greater on one occasion, the late 1990s. It is currently on par with levels preceding the Great Depression. CAPE valuation, when adjusted for the prevailing economic […]
Is The Fed Poised To Ignite A Violent Dollar Rally?
As the world waits with bated breath for Janet Yellen’s statement this afternoon – which is uniformly expected to be a nothing-burger, some are wondering if the recent flip-floppery by Yellen, Draghi (and even Kuroda with his ‘actual’ tapering while lowering inflation expectations) does not leave today open to another modest shift back in The Fed’s […]
They May Not Get Your Name Right, But Can Starbucks Get Their Stock Right?
Photo Credit: keso s Starbucks Corporation (SBUX) Releasing 7/27/17 AMC The Estimize consensus calls for EPS of $0.56, one cent higher than the Wall Street consensus. Currently, the Estimize community is looking for revenues of $5.753B, slightly higher than the Street’s expectation for $5.745B. With the stock price at $58.45, a dividend yield of 1.71% and a […]
