Investing and Analysis

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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GE’s Demise: Unsustainable Business Model or Changing Times?

When I saw the news that General Electric (NYSE: GE) would be replaced in the Dow Jones Industrial Average by Walgreen’s Boots Alliance (NYSE: WBA), it made me think about how much GE has fallen in the last 17 years. Not just how much the stock price has fallen, but in terms of the importance of the company and the ...

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Housing Industry In The Spotlight This Week

The week ahead is pretty light on economic reports, but there are a few that will be closely watched. A number of the reports that are due out involve the housing industry. We are scheduled to see six different housing industry reports during the week including housing starts and existing home sales for May. Of the reports that have analyst ...

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Huge Week for Central Bank Activity

The historic summit between President Trump and North Korea’s Kim Jung Un in Singapore is going to garner a great deal of attention in the next few days. While it will definitely have an impact on financial markets around the world, don’t forget about the Fed meeting that concludes with a rate decision on Wednesday. In addition to the Fed ...

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Consequences of Tax Cuts Starting to Impact Markets

When the changes to the tax rates were approved in Congress last year, I voiced my concerns about possible unintended consequences. One major concern was the one-time special treatment for companies to repatriate overseas assets back into U.S. dollars and how that would drive the dollar higher against other currencies. The rally in the dollar didn’t take place immediately, but ...

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Month of May Sees an Increase in Market Dispersion

The month of May ended last Thursday, and it was a positive month for all four of the main U.S. indices, but there were considerable differences in the performance of the Nasdaq and Russell 2000 compared to the Dow and the S&P 500. For the month, the Russell gained 5.95% and the Nasdaq gained 5.32%. The Dow only managed a ...

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List of Similarities to 2007 Continues to Grow

The summer of 2007 was an interesting one. Different aspects of the debt market were hot with investors and Wall Street couldn’t get enough of them. Collateralized Debt Obligations (CDO) and junk bonds were both getting gobbled up by investors looking for better yields. This morning while combing through different news sites, two different articles on Bloomberg caught my attention. ...

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Buying Stocks During Earnings Season – Or Not

The vast majority of public companies use a calendar year for their corporate financial reporting period. The Securities and Exchange Commission requires these companies to produce a 10-Q or quarterly report every three months. The first quarter of a calendar year-end reporting company would be January, February and March. Thus, the company would have 45 days from the end of ...

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How Treasury Bonds Affect Your Stock Portfolio

Modern portfolio theory loosely states that it is the composition of stocks, bonds, and cash as a class that makes a difference in returns, not a particular stock or bond.  It is whether you are in stocks or bonds as an aggregate, as opposed to owning IBM or Microsoft. We find ourselves in a current financial environment that is testing ...

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