Benjamin Graham, widely considered the father of value investing, once said, “In the short run, the market is a voting machine, but in the long run, it is a weighing machine.” In other words, over short periods, markets tend to move irrationally along with market psychology. But over longer market cycles (at least 10 to…
According to forecasts from earlier this year by the World Bank, the global economy is expected to average a Real GDP growth rate of 2.8% between 2017-2019. But where will this growth actually happen? Is it in giant countries that are growing at a stable 2% clip, or is it occurring in the smaller emerging…
It’s risk-parity heaven right now, notes RBC’s head of cross-asset strategy Charlie McElligott, with global equities (developed and EM) AND fixed-income all continuing their torrid rallies, but McElligott warns this is a classic “from worst to first” PM-grabbing into a new “Fear Of Missing Out” stage of the equities-rally. Bonds remain well-bid on account of…
Here’s what we are looking for in Monday’s economic reports (June 5, 2017). 1. AU PMI Services (19:30 NY Time) — Bearish AUD — Potential for downside surprise given Sharp drop in PMI Mfg. 2. CH Caixin PMI Services and Composite PMI (21:45 NY Time) — No Trade — Chinese data is hard to predict…
I’m starting to see a few rays of hope from various measures of breadth that could provide the fuel for a broad based rally. The first comes from the Russell 2000 Index (RUT). It finally looks like it wants to play catch up with the other major indexes. Another indicator that is showing some strength is the…
Real Estate Investment Trusts (REITs) are an appealing way for income investors to benefit from rental properties without any of the liquidity or landlord hassles that come with actually owning physical properties. Many REITs are generally far less volatile than the rest of the stock market as well, making certain REITs a reasonable way to help…
(from my colleague Dr. Win Thin) The Indonesian cabinet is discussing revisions to the 2017 state budget. The Thai central bank plans to reform some FX rules. South African President Zuma survived the no confidence vote within his own ANC. Brazil’s central bank signaled a slower pace of easing ahead after it cut 100 bp…
On the heels of this mornings employment report indicating jobs creation below even the most pessimistic economist forecast along with revisions lower to the prior months, why are the bond and stock markets telling two such very different stories? This morning at 8:30AM the Employment Report was released by the U.S. Bureau of Labor Statistics showing new…
The Tesla Options Tracker is a snapshot of all the TSLA options info that you need to know. What’s hot today in the name that everyone loves (or loves to hate)? Read on to find out… Today’s Hot $TSLA Strikes (as of 12pm Central) TSLA Jun 2 342.5 C Volume: 10,644 TSLA Jun 2 340.0…
I stated many times that it is very hard, or even impossible, to predict the stock market. However, sometimes Mr. Market delivers quite clear indications that something different is in the making. Let me take the US stock market. Here is the chart showing the so-called NAAIM Exposure index: source: NAAIM According to the…
