Investing and Analysis

Stocks Are Not Reacting Positively to Earnings in Many Cases

It is still early in this earnings season, but I am already noticing a trend that is concerning. There have been a number of companies that reported earnings and revenue numbers that beat analysts’ estimates, but the stocks have reacted by moving lower or hardly moving at all. Three banks kicked off earnings season on July 13 and Citigroup and ...

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Banking Industry Not Meeting Expectations So Far in 2018

Heading into 2018, expectations for the banking industry were running high and many analysts were predicting that it would be a great year for bank stocks. You had the tax cuts to help the bottom line. Interest rates were rising which would allow the banks to increase the spread between lending rates and deposit rates. And there was an expectation ...

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Junk Bonds Proliferate with Mergers and Acquisition Growth

There is a feeling in the air on Wall Street that is eerily reminiscent of the subprime boom a decade ago, and if you want to go a little further back, the Michael Milken 80’s era.  The junk bond party is in full swing. Earlier this spring, the Federal Reserve issued guidelines to banks and lending institutions that essentially gave ...

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Life, Poker, and Investing: It’s All About Probabilities

Over the last few nights, I have been watching the World Series of Poker on ESPN. I enjoy playing poker and have for a long time. My grandfather first taught me how to play when I was in kindergarten. He was visiting us from Virginia and when I got home around noon from morning kindergarten, it was just the two ...

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New Recession Indicator Trips Alarm

Monday night I heard of a recession indicator that I had never heard of before and it just triggered the first recession alarm. The indicator is the spread between the Bank of America Merrill Lynch U.S. High Yield Index Option Adjusted Spread and the Fed Funds rate. Let me state that I learned of this indicator late Monday night/early Tuesday ...

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Where to Invest Cash in Times of Tariffs

The million dollar question for investors trying to navigate the trade waters is where to place their cash to safely sail through this storm. Wall Street has been sifting through the typical safe havens, as spat after spat of trade wars began this spring. We first have to examine the current economic climate to see what makes sense. It happens ...

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Has the Emerging Market Selloff Run Its Course?

Since the trade disputes started in January, emerging market indices have been getting hit pretty hard and haven’t gotten the bounce back rallies the more developed markets have seen. The selling stems from a stronger dollar and the concern that less trade will hamper the emerging economies. The iShares MSCI Emerging Markets ETF (NYSE: EEM) has dropped from the $52 ...

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Second Quarter Index and Sector Recap

Friday marked the end of the second quarter and the half-way point of the year. With that in mind, we thought it would be worth looking at the index and sector performance from the second quarter and the first half of the year as well. After a very choppy and back and forth first quarter, the second quarter saw more ...

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