No Rate Hikes Because FOMC’s Models Don’t Even Believe The Unemployment Rate
If there is any doubt as to the confusion inside the FOMC, one needs only to examine its models. The latest updated projections make a full mockery of both monetary policy and the theory that guides it. Ferbusand the rest don’t buy the labor market story, either, which is why the Fed can only be hesitant […]
The Safety Net: Expect Another Cut To This 7.8% Yield
One of the strongest indicators that a company could cut its dividend is that it’s done so in the past. Once a company has made that decision once, it’s easier to do it again. And again. I suspect that’s going to be the case for Frontier Communications (Nasdaq: FTR). The company provides telephone and broadband Internet services […]
Ackman Begins Portfolio Liquidation To Shore Up Cash, Sells $800 Million In Mondelez After Losing 26% YTD
Yesterday morning, after the biggest ever crash in Valeant stock, we showed that “When Ackman Gets A Valeant Margin Call Today, This Is What He Will Be Selling” and laid out his top (and only) concentrated holdings as follows: We didn’t have long to wait for the liquidity-sapping margin calls to come in and […]
Robo-Advisors Are Desperately Clinging To A Dangerous Dogma
I’ve recently argued that the success of passive investing potentially sows the seeds of its own demise. Patrick O’Shaughnessy also made a similar point recently and probably a bit more eloquently. But, to dig deeper into the push towards passive, there’s one big problem I have with virtually every one of the major robo-advisors that very few folks seem to be […]
Sonoco Products – Chart Of The Day
The Chart of the Day is Sonoco Products (NYSE:SON). I found the paper products stock by using Barchart to sort today’s All Time High list first for the highest number of new highs during the last month, then I used the Flipchart feature to review the charts. Since the Trend Spotter signaled a buy on 2/10 the stock gained 18.81%. Sonoco […]
An Embarrassment Of Stitches
Leonor Jean-Christine Soulas d’Allainval was no Shakespeare. His first play, “L’Embarras des richesses,” was a three-act comedy that premiered in 1726 and was performed only four times in the hopeful playwright’s lifetime. At age 53 he died embarrassingly franc-less at the Hotel de Paris. That’s not to say Soulas did not leave his linguistic mark, […]
Gold Daily And Silver Weekly Charts – March Madness
Well, at least now we know why gold was knocked down lower in the paper trading earlier this week. It was to prepare us for The Big Retraction from the Fed, who begged a mulligan on their most recent rosy forecasts from three months ago about The Recovery™. And as suspected, it’s those foreigners who are at […]
Redacted Version Of The March 2016 FOMC Statement
January 2016 March 2016 Comments Information received since the Federal Open Market Committee met in December suggests that labor market conditions improved further even as economic growth slowed late last year. Information received since the Federal Open Market Committee met in January suggests that economic activity has been expanding at a moderate pace despite the global economic and financial developments of […]
Industrial Production Drops For A Fourth Straight Month
US Industrial Production contracted for the fourth consecutive month in February, falling 1.03% year-over-year. It was the third drop of more than 1% in those four months, leaving the 6-month average now at -0.57%. A single month of -1% is usually associated with recession, let alone three of the past four and a negative six-month […]
LinkedIn Corp Stock Falls After Downgrade From Morgan Stanley
LinkedIn (LNKD) stock received a downgrade from analysts at Morgan Stanley as a result of decelerating growth in enterprise and Talent Solutions and rising investments in all four of the social network’s businesses. They also warned investors that the company’s platform probably won’t be as big as they thought it would be previously. Their price […]
