Berkshire Hathaway is buying Precision Castparts (PCP)! That is kind of encouraging as it’s a big ($37.2Bn) bet on manufacturing but PCP manufactures aerospace parts and that is one of our only working sectors and PCP, as you can see from this chart, is 70% aerospace. BUT $32Bn is only a 20% premium to Friday’s close with…
Hot stocks of the day: SUNE Video length: 00:03:42
Back in April, I highlighted SodaStream (SODA – Snapshot Report) as a ‘bear of the day’ candidate due to its sluggish earnings estimates and low growth outlook. And though the stock had a brief surge in the early summer, shares are now down double digits since that time and are easily underperforming the market too. The pain…
Are Stocks the Next Oil (or Uranium, Copper, Silver)? See: 2007, when everyone was convinced of ‘Peak Oil’ and there were websites named ‘Peak Oil’, ‘Oil Drum’, etc. constantly reinforcing the mania. I remember being away on business one day in 2007, with nothing better to do in my hotel room than watch the congressional…
Precious metals may diversify investment portfolios In a highly volatile global market, precious metals such as gold, silver and platinum may continue to provide investors with a number of advantages. Although the market for precious metals has weakened in recent years, prices have generally appreciated over time, driven largely by investor and consumer demand. Below…
During the session on Monday, there’s nothing out there that can move the markets as far as economic announcements are concerned, so we think that we will see a lot of the same themes that we’ve seen recently. With that, we anticipate a lot of range bound trading, and do not anticipate strong moves for…
The S&P 500 is going to rise to 3,200 within the next two years… at least, that’s a possible outcome according to Laszlo Birinyi, Founder of Birinyi Associates. I can only assume that institutional investors pay this permabull for his opinion because they like hearing that stocks will go up. After all, if Birinyi’s prediction comes…
I and a few brave experts such as Jim Chanos, Gordon Chang, and David Stockman (speaking at our upcoming IES conference) have been arguing for years that China has the greatest investment and overbuilding bubble in all of modern history. We’ve also warned that its economic statistics are not real – they are purposefully overstated…
Economy – Additions & Updates Additions – spending, factory orders Updates – jobs, housing, sentiment, GDP Asset Allocation – Additions & Updates Additions – none Updates – none Economic Summary: Jobs – payrolls: small increase, layoffs: large increase Housing – vacancy rates: low (yet not historically lows) Sentiment – falling Spending – falling Factory Orders – falling / recessionary Q3 GDPNow Forecast – 1.0%…
Positive price momentum is in short supply these days among the major asset classes. Is that a bearish signal? Well, let’s put it this way: the current technical profile doesn’t inspire a lot of confidence about the near-term outlook for asset prices. Granted, there are still pockets of strength. In particular, US stocks overall continue to post…
