How Will the Stock Market Respond to a Trump Victory?

As it became apparent that Donald Trump was going to win the presidency S&P 500 futures fell 500 points and triggered the circuit breaker. Stocks fell across Asia. And by morning there was some recovery on all fronts. The market does not like uncertainty which is why stock futures fell on the news of a likely Trump victory. But, as we mentioned before the election in an article on our sister site, Forex Conspiracy Report, don’t lose your money on a mistaken first impression.
[W]hat if first impressions are wrong? How many times has the market reacted in one direction to […]

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Stock Market Likes Hillary

The most chaotic Presidential election season in anyone’s memory is winding down. On the eve of voting the FBI chief re-opened the previously closed Clinton email issue and the market blinked. Read our article if you missed it, Why Clinton’s Emails Matter to the Stock Market. Then the FBI chief announced just two days prior to the election that never mind, there is no new info and no problem. The stock market likes Hillary and stocks went up. Investor’s Business Daily reports that stocks are up big on Clinton relief.
Stocks roared higher at the open Monday, as the market looks […]

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How Would a Trump Presidency Affect the Stock Market?

Hillary Clinton email issues resurface, Trump moves up in the polls and stock markets slide across the globe. How would a Trump presidency affect the stock market? Donald Trump in the White House would hurt stocks if the market is to be believed. Reuters reports that the dollar and stocks are down on U.S. election worries.
Global equity prices and the dollar slid for the second straight day on Wednesday, while safe-haven assets such as gold rallied as investors were rattled by signs the U.S. presidential race was tightening just days before the vote.
Uncertainty about the outcome of the election pushed […]

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Why Clinton’s Emails Matter to the Stock Market

The stock market likes predictability. That is why Clinton’s emails matter to the stock market. We are just a week away for the presidential election. Hillary Clinton has been leading in the polls and especially in so-called battleground states. A month ago we speculated if stocks would continue to rise as Trump went down in flames from self-inflicted political wounds. Trump was not broadening his appeal for the middle of the political spectrum which is where U.S. presidential elections are won. And the stock market was starting to believe that Clinton who is more of a known entity that Trump […]

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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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Can You Make Money on the AT&T Time Warner Deal?

In one of the biggest media company mergers ever AT&T has made a deal to take over Time Warner. CNN reported the media mega deal.
AT&T and Time Warner have agreed to an $85 billion deal – one of the biggest media tie-ups ever.
The deal will be subject to a review by government regulators that could take more than a year to complete.
AT&T will pay $107.50 a share – a big premium over where Time Warner stock was trading last week. Including Time Warner’s debt, the deal’s value is $109 billion.
AT&T is doing this to move beyond its core wireless and […]

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What Does Increasing Inflation Mean for Stocks?

Prices of goods and services are inching up and according to The Wall Street Journal the Fed is not going to get in the way of a little inflation.
Inflation has begun picking up, and it looks as if the Federal Reserve is going to let it keep climbing.
The Labor Department on Tuesday said that consumer prices rose by 0.3% in September from August, putting them 1.5% above their year-earlier level. With gasoline prices stabilizing, annual inflation ought to push above 2% on the year within a couple of months.
Core prices, which exclude food and energy costs, have been there for […]

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When Is Stock Picking Likely to Be Successful?

The Wall Street Journal recently discussed The Dying Business of Picking Stocks and how passive investing in index funds has become common. Despite this trend there are folks who make a lot of money on specific stocks. When is stock picking likely to be successful and when should you stick with an index fund?
Pension funds, endowments, 401(k) retirement plans and retail investors are flooding into passive investment funds, which run on autopilot by tracking an index. Stock pickers, archetypes of 20th century Wall Street, are being pushed to the margins.
Over the three years ended Aug. 31, investors added nearly $1.3 […]

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How Dependent is the Chinese Economy on Exports?

Weak Chinese trade data sent stocks down across the globe. According to The Wall Street Journal U.S. stocks were hit after the opening but pared their losses later in the day.
The Dow Jones Industrial Average closed little changed Thursday, nearly recovering from an earlier 184-point drop that followed weak Chinese trade data.
Official data released Thursday showed Chinese exports fell 10% year-over-year last month, sparking concerns about the world’s second-largest economy and global demand. Stocks around the globe fell and base metals such as copper tumbled. Investors moved to safe havens such as gold, U.S. government bonds and utility stocks.
There are […]

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Will Stocks Continue to Rise as Trump Goes Down in Flames?

It looks like Hillary Clinton is going to be the next president and the market has reacted positively. Here are a few thoughts on how this is working out and how to make a profit in stocks as the presidential election campaign winds down to a welcome close.
The reason that U.S. presidential candidates always move politically toward the center as the election approaches is because it works. Each party has its base of ardent supporters but not enough people to win the election. The winner is the candidate who convinces the vast undecided middle of the U.S. political spectrum to […]

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