Investing and Analysis

My Theory on the Trade Tensions and the Midterm Elections

Over the last couple of weeks, I have read several articles about the midterm elections and how they might impact the stock market. I have also been asked by friends what I thought would happen if the Democrats take control of Congress. I have seen articles that argue that if the Democrats take control of the House, it will increase ...

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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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Iranian Navy Claims it Controls Strait of Hormuz

Iranian officials on Monday claimed they had full control of the Persian Gulf and the Strait of Hormuz – an international waterway south of Iran that serves as a gateway for more than 40% of the world’s sea-traded oil. “We can ensure the security of the Persian Gulf and there is no need for the presence of aliens like the ...

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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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Lack of Global Diplomacy Rattles Financial Markets

There are a number of diplomatic disputes going on around the globe currently. The U.S. has placed sanctions on Iran and Turkey for different reasons. Canada and Saudi Arabia are at odds over human rights and things have escalated dramatically. England and the European Union are at odds due to Britain’s plans to exit the union. Of course then there ...

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Is Tesla a LeBron James or a Kwame Brown?

I am an admitted basketball junkie. I watch 20-25 games a week during college basketball season. Every summer, when the NBA draft is approaching, fans, scouts, and analysts start evaluating players. One word that you hear a lot is potential. You hear comments like, “he has a lot of potential” and “there is no limit on his potential”. And every ...

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