Exchange-traded funds (ETFs) that track international markets started the year with tremendous promise that ultimately lost ground to a host of fundamental concerns. Despite the best efforts of the European Central Bank to stimulate economic growth through quantitative easing programs, both developed and emerging markets overseas have seen momentum vanish in 2015. The hazards in…
As I mentioned on Tuesday, my market risk indicator cleared during the week and the positive readings have held throughout the week. However, my core market health indicators are all still below zero. This changes the portfolio allocations as follows. Long / Cash portfolio: 100% cash Long / Short Hedged portfolio: 50% long stocks I believe…
I’m trying not to get too excited about this market rallying right now but frankly, I’m a very excitable guy. Flying high on Wednesday’s Cubs win over the Pirates then you throw in a market that’s responding so well to the Fed minutes, I’m bouncing off the walls. Risk-on is the name of the game…
The headlines say wholesale sales slowed again year-over-year with inventory levels remaining at levels associated with recessions. The best way to look at this series may be the unadjusted data three month rolling averages which marginally accelerated but keeping the long term downtrend in play. This report is not excellent. Note that Econintersect analysis…
Following last week’s biggest rig count decline in 5 months, Baker Hughes reports a smaller decline of 9 oil rigs this week to 605 – the lowest since July 2010. WTI Crude was trading just below $50 as the data printed and jumped above it on the rig count drop. *U.S. OIL RIG COUNT DOWN 9…
It turns out that the world of ZIRP/NIRP isn’t the banking paradise that some thought it would be. See Why The Big Banks Want Higher Interest Rates. Whether the problem is with low interest rates themselves or the fact that rates still aren’t low enough to ignite a new credit boom is not clear. What is…
Thanks to instability in China that led to repercussion of gloom and uncertainty regarding the timing of an interest rates hike, the global stock market saw a bloodbath in Q3. This is especially true as iShares MSCI ACWI ETF (ACWI – ETF report) targeting the global stock market tumbled over 9% in the three months through September. This represents…
Ever since the Emerging Markets tanked below last ditch support in August, we have been watching for a rebound to what is now major resistance. On EEM that is around 36. At 36.20 we are there. It had looked like a no-brainer shorting opportunity, but a funny thing happened along the way; the USD got…
Pure Storage’s much-awaited IPO has not gone according to expectations. It appears as if investors are wary of the company’s spiraling losses and slowing top line. Pure Storage’s top line, however, is growing significantly faster than its operating expenses giving the company a good chance to become profitable. Pure Storage shares are likely to make…
There are a number of great companies in the market today. By using the ModernGraham Valuation Model, I’ve selected the five undervalued companies reviewed by ModernGraham trading closest to their 52 week low. Each of these companies has been determined to be suitable for the Defensive Investor according to the ModernGraham approach. Defensive Investors are defined as…
