Author Archives: Rick Pendergraft

Consumer Confidence and Investor Sentiment – Too High?

The latest Consumer Confidence report was released on August 28 and the index is reaching levels not seen since 2000. The index is broken down in to three parts—the present situation, expectations, and the total. The total reading jumped to 133.4 in August and that is the highest reading since October ’00. The present situation portion of the index jumped ...

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Commitment to Shorting FANG Stocks Increases, But It Isn’t A Sign of Increasing Pessimism

I have written several articles about the FANG stocks with the most recent one being one month ago. In that article I compared the earnings disappointments of Facebook and Netflix with the earnings disappointment from Microsoft back in April ’00. A recent Bloomberg article about the FANG stocks caught my eye because it talked about how short interest was increasing ...

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We Need More Business Leaders to Think Like Henry Ford

Reading and watching different things over the weekend, there were a number of stories about the S&P hitting a new all-time high. We are wrapping up another earnings season and corporate profits are at or near record highs. I also had friends and acquaintances talking about the market and pondering how long the market can keep going. Obviously I don’t ...

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Shifting from Quarterly Reporting to Semi-Annual Reporting – Bad Idea?

President Trump has instructed the Securities and Exchange Commission to study the impacts of shifting corporate earnings’ requirements from a quarterly schedule to a semi-annual schedule. There are two theories behind the idea. First, that there is too much attention paid to the quarterly results and that management in turn is too short-term in its focus. The second part is ...

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Trade War Impact Spreading and Not Just Geographically

When President Trump announced intentions to place tariffs on goods from Canada, China, Mexico, and the European Union, I knew the effects on the markets would be widespread. I wasn’t sure how long the spat would go on, but I knew that the longer it went on, more markets would be affected and the impact would increase. The effects are ...

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Chinese Internet Stocks Falling With Trade Dispute

The Trump administration went on the offensive regarding trade imbalances back in January. When the idea of placing tariffs on Chinese goods was announced, it caused equity markets around the world to experience a short-term selloff. Since then, there have been ups and downs in the markets as well as in the negotiations. When the trade war started, I immediately ...

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