Earnings season is in full swing, which gives investors an opportunity to ditch the news cycle for a moment to focus on revenues, cash flows, and profits. Or, as I would argue, the factors that matter most to equity investors long-term. This week I want to focus on technology stocks. We’ve seen several IPOs in […]
Low interest rates coupled with a flat yield curve usually mean bank profits will come under pressure. Generally speaking, the flatter the yield curve, the lower a bank’s net interest margins – which is the difference between what a bank earns on loans versus what it pays out in interest on deposits. J.P. Morgan saw […]
What a difference six months can make. In December of 2018, the Federal Reserve made a slight adjustment to its rate forecast for 2019 – it was planning to raise rates only two times in 2019 instead of three. The language in the December 2018 Fed statement still called for “gradual” rate hikes, however, and […]
Government bond yields across the globe are in serious decline – and have been for some time now. Investors are paying closer attention to yields these days, however, because in many developed countries like Japan, Germany, France, and the Netherlands 10-year bond yields have actually turned negative.[1] The chart below shows the methodical, steady decline […]
When most Americans think about the 4th of July, we think of family time, barbeques, hot dogs, red white and blue, fun in the sun, and maybe a few cold beers too. But perhaps the most iconic modern-day American tradition surrounding the 4th of July is, of course, fireworks. Though it may be difficult to […]
We’re now halfway through 2019, and the stock market has delivered solid performance year-to-date. It’s difficult to believe that the S&P 500 is up nearly +20% in the first six months, but investors must remember that the market’s stout performance is coming off a miserable Q4 2018 where the S&P 500 flirted with bear market […]
With recent headlines focused squarely on the U.S. – China trade dispute and the possibility of an interest rate cut from the Federal Reserve, few have noticed that crude oil prices have been in steep decline since last fall. Prior to last October, crude oil prices had been locked into an uptrend since the beginning […]
According to the National Bureau of Economic Research (NBER), the U.S. economy has been growing for over ten years – putting it on the level with the longest expansion period in U.S. history, from March 1991 to March 2001. By the NBER’s measure, just one more month of growth would make this the longest expansion […]
For many families and investors across America, the summer months are a time for vacations, having the kids and grandkids out of school, and less stress at work (hopefully). For the markets, the summer months tend to follow a somewhat similar path with historically low volumes – though volatility generally likes to stick around. This […]
On the surface, it looks like the bull market is hitting resistance on multiple fronts. Just when many market participants thought a trade deal with China was in the offing, talks broke down and tariffs went up – the exact opposite of a ‘market friendly outcome,’ in my view. Now, as corporations grapple with a […]
