Are Defense Stocks in Trouble?
Last week President elect Trump criticized Boeing for the two next generation Air Force One presidential jets costing $4 billion. No matter that there is only a contract for design and no contract for building jets to replace the aging Boeing jets that carry the president. Boeing stock fell briefly anyway. Then this week Mr. Trump criticized the F-35 joint strike fighter jet program as having costs out of control. And now Lockheed Martin, United Technologies and BAE systems stocks are trading lower. The Wall Street Journal discusses the effects on defense stocks as Trump targets the F-35 program.
President-elect Donald […]
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 […]
What Stocks Are At Risk Despite the Trump Stock Rally?
The election of Trump has occasioned a stock rally. Defense stocks have gone up based on his promise to “rebuild” the military. And stocks have rallied across the board on the expectation of stimulus spending on infrastructure, repatriation of offshore corporate money and tax cuts. Concerns about inflation, higher interest rates and a pricey dollar have been laid aside for now. But we were recently reminded that some stocks may be at risk despite the Trump stock rally. CNBC quotes Jim Cramer regarding stocks surprisingly at risk under Trump.
While the market continued to roar higher on Tuesday, Jim Cramer couldn’t […]
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 […]
How Can You Make Money on Oil These Days?
The bottom fell out of the oil market in the middle of 2014 as supply greatly exceeded demand. The price of crude oil fell from more than $100 a barrel to less than $30 a barrel by the end of 2015. Although crude is back in the $45 range producers are hurting across the globe and investors have fled oil stocks. How can you make money on oil these days with a weak global economy and too much oil being pumped? Fortune reports that there may be an output cut by OPEC and the news drove oil prices up by […]
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 […]
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 […]
Will the 2017 Stock Market Be a Huge Disappointment?
We have written about the stock market response to a Trump presidency. Mr. Trump may be able to push through tax cuts, stimulus spending in infrastructure improvements and make a deal to bring home massive amount of capital currently sequestered offshore. Many believe this will stimulate the economy, bring on inflation and cause the Fed to raise interest rates, which in turn would drive the dollar higher. But will this help the stock market or will the 2017 stock market be a huge disappointment? Fortune weighs in on the side of a lackluster market in 2017 and says that Trump […]
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 […]
Will Inflation Cause the Market to Soar or Crash?
Most investors expect President Donald Trump to try to deliver on his promise to create jobs with massive infrastructure spending and re-negotiation of trade deals. Infrastructure spending will generate more economic growth in the USA and boost inflation. The US dollar has already advanced in anticipation of the Federal Reserve raising interest rates to combat Trump-caused inflation. Bloomberg writes about how Trump is seen spurring inflation.
The dollar advanced for a fourth day on bets that higher spending under Donald Trump’s administration will boost economic growth and inflation, convincing the Federal Reserve to raise U.S. interest rates.
A gauge of the U.S. […]