Investing and Analysis

What We are Watching in the Market

After hitting a new all-time high on May 3, the S&P 500 and most of the rest of the market have been hit with tremendous selling pressure. As another round of negotiations was scheduled to take place last Thursday and Friday, President Trump tweeted his intentions to implement new tariffs on Chinese goods. This caught investors off guard, and we ...

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A Look at the Earnings Results So Far: Better than Expected

As of May 3, approximately 78% of the stocks in the S&P 500 had reported earnings results for the current earnings season. With all things considered, the quarter has been better than expected. According to a recent report from FactSet, 76% of those companies that have reported so far have beaten the EPS estimates. That is better than the long-term ...

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Early in Round Two, Old Economy Stocks Get Some Shots In

Last week I wrote an article about how “old economy” stocks seemed to be issuing disappointing earnings results while “new economy” stocks were posting positive earnings results. I mentioned that it was early in the earnings season, but I pointed out how companies like 3M, Caterpillar, and UPS had all dropped sharply after earnings while companies like Facebook, Twitter, and ...

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The Great Divide in Earnings Results, Old Economy Vs. New Economy

The earnings season is in full swing this week, and we have gotten reports from some key companies over the last few days with more to come. So far there has been a great divide in the results and reactions to the earnings reports. I expressed many times heading into this earnings season that I was concerned about earnings declining ...

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Hedge Funds become more fundamental as Investors Shift Interests

The provocative and esoteric world of the hedge fund is slowly turning towards a more traditional fundamental approach to investing. If you look at the typical prospectus of a hedge fund, it will be somewhat vague and furtive in its investment style. However, with a ten year bull run in the market, major investors in such funds, like pensions and ...

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Early Results Show Earnings Growing at a Slower Pace

A few weeks ago I wrote about the upcoming earnings season. That season started last week with Delta Airlines, JPMorgan, and Wells Fargo releasing results. In that article, I showed a table of different companies and the EPS estimates for this quarter compared to last year and the average growth for the last three years. In that earlier article, I ...

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Ready Or Not, The Next Earnings Season Starts Next Week

Believe it or not, the next round of corporate earnings will start coming out next week with the banks kicking off the first quarter earnings season. I have mentioned on several occasions that I am concerned about this earnings season because the year over year results are going to be compared to the first round of results after the tax ...

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When is ‘Bad News’ Good for the Market?

I have been writing about the economy and the stock market for almost 20 years now. During that span I have seen the market go through many different phases. There are phases when the market views everything as bad news, and there are ones where all news is viewed as good news. There are even ones where good news is ...

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Investor Survey: Here is the Straight Poop on Global Stocks

The March edition of Bank of America Merrill Lynch’s monthly investor survey was released on Tuesday, and it revealed several things that I think can help investors going forward. While I have been cautious about the post-Christmas rally and whether or not it could continue, the BAML survey showed that investment managers are also cautious. The survey was conducted between ...

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