Stock Investing Tips
Are Amazon and Facebook in Trouble?
Our first thought in regard to how far high tech will fall is that the stocks are overpriced. And, passive investors are pouring money into index funds that do nothing but bid up the prices of the FANG darlings. The market has started to correct and, based on earnings reports, tech stocks will either continue to fade or will recover a bit. But, there are a couple of other issues that bear consideration in regard specifically to Amazon.com and Facebook. There is the possibility that Trump will want to go after Amazon in order to protect and bring back small […]
Will You Lose Money When the Interest Rate Goes Up?
The investor community is fretting over interest rates. Inflation is creeping up and the US Federal Reserve is likely to keep raising rates. When rates creep up, the stock market heads down. And if you hold long term bonds they will continue to pay the current low rate even as new bonds pay more. That means you will either sell them at a loss or hold them with their low yield until maturity. Depending on the positioning of your investment portfolio, will you lose money when interest rates to up?
Short versus Long Term Bonds
We recently wrote about tax free municipal […]
When the Chinese Market Implodes What Happens to Your Investments
As US investors consider the odds of a stock market correction investors in China are already selling stocks. The Financial Times reports on a fresh China stock selloff.
Chinese stocks were back under pressure, as concern about a government crackdown on leverage levels continue to unnerve investors, leaving sentiment fragile.
The CSI300, a composite of stocks listed in Shenzhen and Shanghai, fell 1.3 per cent to a near-three-week low after notching its biggest one-day fall in 17 months on Thursday amid concerns over rising corporate bond yields. Since the start of trade then, it is down by over 4 per cent, trimming […]
How Long Will the Economic Sweet Spot Last?
The stock market seems to be overpriced but every times earnings come in they are positive and stocks keep going up. So long as the economy keeps chugging along it supports earnings but how long will the economic sweet spot last? CNBC writes that the economy may soon lose its power to boost stocks. Then what?
Closely followed strategist Jim Paulsen told CNBC on Monday he’s worried that economic data could stop supporting the stock market’s bull run.
“The economy has been doing so good for so long now that even if it continues to do well, it won’t any longer be […]
Should You Be Investing in Defense Contractors?
Every day seems to bring more bad news about possible conflict on the Korean Peninsula. As the dictator of North Korea and the American President trade insults and threats should you be investing in defense contractors? CNBC writes that the specter of war has driven defense stocks up.
On Oct. 1, President Donald Trump once again took to Twitter to attack Kim Jong-un, saying that negotiating with the North Korean chairman is a waste of time. While social media mudslinging may not be the best way to deal with a hostile leader, there’s at least one group who may not mind […]
Is Pension Money Keeping the Rally Alive?
Everyone says that the stock market is overpriced but it keeps going up. One reason is that earnings are pretty strong for the market leaders and nothing seems to scare investors when earnings are good. But there is more to the story. When there is a lot of money to invest it tends to go into the market. Market Watch makes the point that money managers are being forced to buy stocks as pension contributions pour in.
Their point is that while many factors drive the market, forced buying is a real driver when huge pension fund contributions roll in, usually […]
What Companies Will Do Better for You than Amazon or Netflix?
As an overpriced market shows sign of a correction where can you put your money next? What companies will do better for you than Amazon or Netflix? We recently wrote about if there are any investment bargains these days and looked at small cap stocks, offshore investing and little-followed stocks where you can be ahead of the pack. CNBC looks at life sciences stocks that could make Amazon and Netflix look dull.
The obscure S&P life sciences subsector is up 41 percent this year compared to the less than 36 percent gain in Facebook, Amazon, Netflix and Alphabet, on an equal-weighted […]
How Much Will It Cost You to Stay in the Market?
Ron Paul, the perennial libertarian presidential candidate is in the news for predicting that the stock market will fall by 25% or even 50% within the next twelve months. Market Watch writes about Paul’s assertion that stocks may get chopped in half within the year.
Last month, libertarian and multiple campaigner for president Ron Paul made headlines with his gloomy prediction that the stock market, plagued by an overrated recovery for the U.S. economy, could plunge 25% by October.
Obviously, not much in the way of positive news has come along since then to change his views. In fact, he just took […]
Are Banks Ready to Break Out?
Hopes of deregulation are part of why financial stocks are up. And investors may be moving some money out of an overvalued tech sector. The bottom line is that US bank stocks hit a post-crisis high according to The Financial Times.
US financial stocks closed at the highest level in nearly 10 years on Tuesday as hopes for deregulation of banks grow and investors ditch technology stocks for the previously unloved banking sector.
Shares of some of the country’s largest lenders, including Citigroup, Bank of America and JPMorgan, climbed more than 1 per cent on Tuesday, pushing the S&P 500 financial index […]