Is This The End? Draghi Fires His Bazooka And Markets Turn Away In Disgust
ECB chair Mario Draghi delivered big-time this morning, by announcing lower interest rates and a new round of debt monetization. Historically, this kind of thing has sent the financial markets into Pavlovian ecstasy, with stocks soaring and the local currency falling. Sound money people have for years been warning that such New Age monetary policies […]
Is Gold Going To $8,000?
Last summer I drew attention to the horrific bear market in gold and gold mining stocks suggesting, “it’s time to get greedy in the gold market.” Since then, gold has found its footing and, so far this year, has been the best performing asset class in the world. Gold has now risen well above its […]
Passive Investing Isn’t Hurting The Economy
The new sales pitch for the high fee active manager goes something like this: “passive investing has gotten so large that this creates greater opportunities for us to take advantage of these inefficiencies and outperform the market.” In fairness, this comment is partly true because more passive investors should create the need for more active […]
Binary Options Trading Opportunities For March 11, 2016
During the day, we don’t get much in the way of economic announcements so we believe that this will be a technically driven trading session. With that in mind, we look at the following 3 scenarios. Volatility in the DAX The DAX initially shot higher, touching the €10,000 level, but turned back around during the […]
Post-Draghi Panic Leads To Bidding Scramble For 30 Year Paper
And so things are back to normal: following yesterday’s unexpectedly poor 10 Year auction, which tailed notably while the bid to cover dipped despite it trading at the -3.00% fails rate in repo, moments ago the Treasury sold $12 billion in a 30Y reopening of Cusip RQ3, at a yield of 2.72%, stopping through the […]
SPX, Mind Your Gap
I have allowed for the S&P 500 to rise to 2030 (bounce target: 2000-2030) before starting to even think about a revision of the ongoing intermediate bearish analysis. Today’s post-Draghi roll over is not a positive but it does not preclude the market from getting up to the SMA 200. Either way, there is a […]
Outside-The-Box Value
I love Value investing, but it’s not always so easy to execute. The ratios are all well known and easy to calculate, so the low hanging fruit tends to get quickly arbitraged out of existence as everybody and anybody pounces, often leaving behind stocks that have modest ratios because the companies are dogs whose stocks […]
Expedia Advances After Analyst Upgrades Shares On HomeAway Potential
The shares of online travel agency Expedia (EXPE) are rallying after Piper Jaffray analyst Michael Olson upgraded his rating on the stock to Overweight from Neutral. The company should benefit from its acquisition of HomeAway ,while its core website is “performing well,” the analyst stated. WHAT’S NEW: HomeAway’s EBITDA contribution to Expedia should exceed Expedia’s guidance […]
Looking For Value Among Dow Jones Stocks
If you are looking for value stocks in the Dow Jones, the following chart may help. Management teams don’t usually target dividend yields significantly higher than their peers, and a high dividend yield could be an indication that management expects the stock price to go higher. (Theoretically, management has more [inside] information than you). Boeing, […]
What Buffett And Seth Klarman Say About EBITDA
Written by Hurricane Capital What Adjustments to Reported Earnings Do You Make? Here’s what Buffett and Munger had to say about EBITDA in the 2003 shareholder meeting. [When goodwill was required to be amortized,] we ignored amortization of goodwill and told our owners to ignore it, even though it was in GAAP [Generally Accepted Accounting Principles]. […]
