The finance REITs that generate income through leveraged bets on the rate differences between short and long term rates are starting to look more and more troubled. These companies need both the longer-term yields on agency mortgage backed securities – MBS – and short term interest rates to stay stable. Any rise in rates on…
The finance REITs that generate income through leveraged bets on the rate differences between short and long term rates are starting to look more and more troubled. These companies need both the longer-term yields on agency mortgage backed securities – MBS – and short term interest rates to stay stable. Any rise in rates on…
Overview With major advancements in its drug pipeline over the last two years, Synthetic Biologics (SYN) has propelled itself onto the radar of retail investors, philanthropists and major institutions. Only a year ago, Synthetic’s average share volume stagnated around 50,000 in what seemed to be a lack of awareness on Wall Street. This year, however,…
Facebook (FB) was sued over allegations it systematically intercepts its users private messages on the social network and profits by sharing the data with advertisers and marketers. When users compose messages that include links to a third-party website, Facebook scans the content of the message, follows the link and searches for information to profile the…
Some individuals keep on asserting that because something affects the growth rate of a variable for only one period that the impact on the variable in question lasts only one period [1] [2]. Here is an extremely simple exposition on why this belief is misguided. Suppose the growth rate (in log terms) is constant at 1% q/q (4% on…
Across the Seasonal Investor’s universe of widely traded exchange traded funds, commodity baskets, technology groups, transportation stocks, REITs, and consumer goods stocks have the best track record for producing gains in the first quarter. Over the past decade, the NASDAQ 100 has been the best major market ETF, climbing eight times and returning a median 2.99% in…
Over the past week most of my core market health indicators fell. This is a bit discouraging in the face of rising market indexes. Only the measures of risk are currently positive. The risk indicators show a market that is drifting under the surface rather than exhibiting underlying strength. As a result, it won’t take…
We Americans no longer carry gold and silver money in our pockets and purses as our grandparents did during their lives. But we still carry the history, legacy and spirit of those gold and silver coins in our language – with more meaning than you might imagine. “Sound money” has a clear message recognized…
It seems that when Paul Revere was riding on horseback warning patriots of the British army’s advance, he was not actually screaming “the British are Coming”. Instead, his mission was likely a secret message, and according to eyewitness accounts, Revere likely said “The Regulars are coming out”. It’s no secret in REIT-dom that “Interest Rates are coming”,…
Less than three months ago, on September 30, 2014, “consensus” expected that EPS and revenue growth in 2015 would be 11.8% and 4.3%, respectively. As of December 19, those projected growth rates have plunged to 7.9% and 2.8%. In other words, both revenue and EPS growth has been slashed by one third in under one quarter (while…
