Author Archives: Rick Pendergraft

Peak Earnings Growth Vs. Peak Earnings

How many times have you heard investment experts talk about how the market is always looking forward? And it’s true, investors are always looking ahead and buy stocks based on what they think is going to happen in the future. I thought about this axiom again this morning when a guest on Bloomberg said he thought we had seen peak ...

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Shutdown Adds to Uncertainty in Numerous Ways

The government shutdown in the United States is now at 25 days and we aren’t seeing any signs that it’s going to end any time soon. President Trump refuses to sign any bill that doesn’t provide funding for a wall along the southern border and Democrats refuse to go along with any bill that includes funding for such a wall. ...

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Mixed Signals from Manufacturing Index and Employment Report

There have been various entities putting pressure on the Fed to back off on its rate increases in recent months as the stock market has come under pressure. The most vocal critic has been President Trump himself. The president even tweeted on Christmas Eve, “The only problem our economy has is the Fed.” The Fed has stated that they intend ...

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An Interesting Observation About High Short Interest Stocks

I am a creature of habit. At the beginning of each month, I comb through the thousands of stocks in Investor’s Business Daily’s database. I look for stocks that meet three criteria: an EPS rating over 80, an SMR rating of an A, and average daily trading volume of 500K or more. The EPS rating measures how the company has ...

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Market Swoon Takes a Toll on Consumer Confidence

The latest Consumer Confidence report was released on Thursday and it showed a sharp drop in December. The index dropped to 128.1 for the month and that is down from 136.4 in November. The index peaked at 137.9 in October and has ticked down since then. If you are frequent reader of my articles, you know that I view the ...

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Huge Shift to Bonds Could Be a Good Sign for Stocks

Bank of America Merrill Lynch released its monthly Global Fund Manager survey on Tuesday and the results showed a huge shift in asset allocations. The allocation to bonds jumped by 23 percentage points and that is the biggest one-month rotation ever. The survey also showed that the equity allocations dropped by 15 percentage points. Given the way equity markets have ...

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