Stock Market Investing

How to Pick Stock Winners for 2017

Will the Trump stock rally continue or fizzle? Will the market shrug off rising interest rates or will the Fed’s actions torpedo the stock market? Which are the best stock picks for the coming year and which will be losers? Let us consider how to pick stock winners for 2017. CNBC writes about experts who expect stocks to rise next year.
U.S. stocks should rise slightly in 2017 as equities benefit from tax cuts, according to CNBC’s Market Strategist Survey.
The survey of 13 strategists’ outlooks published since the U.S. election found the median 2017 S&P 500 price target is 2,325, or […]

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Why Is Goldman Sachs Stock Soaring?

Who would have thought that the investment bank that took so much flack during the election campaign would be the all-star of the Trump stock rally? Fortune discusses how this unlikely stock is responsible for sending the Dow into record territory.
Stock market investors who are enjoying the post-election rally-dubbed the “Trump Bump-owe a major debt to the controversial bank that became a political lightning rod in the presidential campaigns.
Goldman Sachs stock is responsible for a whopping 29% of the Dow’s overall bump since the election. Put another way, Goldman Sachs alone is responsible for more than 400 points out of […]

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Is the Stock Market Rally Sustainable?

Investors profit when they get in early for a broad based stock market rally. The unexpected election of Trump as president first occasioned a selloff and then a rally as investors anticipate stimulus spending, tax cuts and repatriation of offshore corporate assets. But is the stock market rally sustainable and just how broad based is it? CNBC points out that just three stocks are responsible for more than 50% of the last month of run up in the market.
The Dow Jones Industrial average has gained about 1,200 points over the past month. And interestingly, nearly half of that advance has […]

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Is This Back to the 90’s for the Stock Market?

In anticipation of tax cuts, stimulus spending on infrastructure and repatriation of US corporate offshore assets the US stock market is booming. The outlook is not so bright in developing markets. Bloomberg asks if this is back to the 90’s for the stock market.
Donald Trump’s election as U.S. president is driving global markets to levels not seen in nearly two decades – but in completely different directions. And the “polarization’” of emerging and developed markets is all part of “Trump reflation,” argues Divya Devesh, a foreign-exchange strategist at Standard Chartered Plc in Singapore.
In the post-Trump era, emerging markets have been […]

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What Will Repealing Obamacare Do to Health Care Stocks?

The president elect has announced that he intends to repeal the Affordable Care Act known as Obamacare on his first day in office. Of course it would take congress to repeal a law but the point is that Obamacare as we know it is going away. What will repealing Obamacare do to health care stocks? CNBC reports that health care stocks tumble even as the market hits a record.
While the major U.S. stock indexes hit all-time highs Tuesday, health care stocks traded lower on disappointing earnings and gave back some of a post-election relief rally that had lifted the sector.
“Medtronic […]

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Why Are Shipping Stocks Up?

A surprise result of the election of Donald Trump is that shipping stocks are up. This is the guy who promises a trade war with China and Mexico if not everyone else. Forbes writes about the Donald Trump shipping stock boom.
Euroseas is a tiny Greek shipping company with a fleet of 12 vessels and a penny stock traded on Nasdaq. On Tuesday, Euroseas’ shares rose by 100%. Since Donald Trump was elected president, Euroseas’ stock has nearly quadrupled. Seanergy Maritime, another small dry bulk shipping company that moves grain and coal, saw its shares soar by 75% on Tuesday. Shares […]

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Why Are Housing Stocks Down?

Home builder stocks took a hit recently as did home improvement stocks. Why are these housing stocks down? Is this a correction that you can buy into or a warning sign to get out of the sector entirely? CNBC reports on falling home improvement stocks and the housing market.
Shares of Whirlpool tanked 11 percent Tuesday, after the home appliance company reported earnings that missed estimates amid a decrease in revenue. The company also cut its guidance, blaming “temporary U.S. demand softness as well as Brexit-related currency volatility and demand weakness in the U.K.”
Whirlpool is often considered an auxiliary housing play, […]

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Presidential Debate Scares the Stock Market

A lead article in Reuters says that global stocks fall before U.S. presidential debate. Why is it that the presidential debate scares the stock market?
Stock prices around the world declined on Monday ahead of the first U.S. presidential debate between Hillary Clinton and Donald Trump, while oil prices rose in advance of an informal OPEC meeting in Algeria on hopes for an output cut.
Half of America’s likely voters will rely on the presidential debates to help them make their choice between the two major U.S. party nominees in the Nov. 8 election, according to a Reuters/Ipsos poll released on Monday.
“The […]

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When to Start Investing in Stocks

Over the long haul money invested in the US stock market tends to provide better returns than other investment vehicles. When to start investing in stocks is early in your life. How good are stock investing returns? Thesimpledollar.com quotes Warren Buffett who says you can expect a 6-7% annual return from the stock market over the long term. Where does 7% come from?
Buffett describes the analysis that led him to that kind of conclusion:
“The economy, as measured by gross domestic product, can be expected to grow at an annual rate of about 3 percent over the long term, and inflation […]

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Why Does the Economy do Better under Democrats?

Election year is upon us and the nation will pick a Republican (Donald Trump) or a Democrat (Hilary Clinton) as its next president. From an investor’s point of view which party is better in the White House for the economy? Despite the association of the Republican Party with business it would appear that having a Democrat in the White House is better for the economy. Salon demonstrates with charts that the economy does better under Democratic presidents.
The right likes to argue that [economic] conditions mark a clear failure of progressive policies, and in particular of the Obama administration. In the […]

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