Aqua America Inc. (NYSE: WTR) trades at a P/E multiple of 25.3x, which is higher than the Utilities sector median of 20.7x. While this makes WTR appear like a stock to avoid or sell if you own it, you might change your mind after gaining a better understanding of the assumptions behind the P/E ratio. In…
Solid Manufacturing ISM Report The ISM manufacturing report for March was solid as the PMI was 59.3 which is 1.5 points below February’s result and 0.9 points above the 12-month average. The table below gives you a summary of the data. As you can see, the growth mostly slowed down. The orange boxes highlight the…
In normal circumstances you don’t want to depend on the government because no one who relies exclusively on transfer payments (excluding people collecting public pensions) is living a comfortable successful financial life. The current budget situation for the government is dire, so your personal goal to avoid relying on the government for anything, even social security, is amplified. You…
Q: What do market timing and stock picking have in common with Las Vegas? A: You might win – but odds are most likely stacked against you. And if you attempt to win at both every year, it’s nearly guaranteed you will end up losing overall. One difference between the two is that with marketing…
The Indian stock markets closed sharply higher on Thursday after the Reserve Bank of India kept the repo rate unchanged at 6% in the first Monetary Policy Committee (MPC) meet of FY19, with the Sensex rising 578 points to 33,597, and the Nifty gaining 197 points at 10,325. All sectoral indices ended in the green,…
EURUSD extended its downside movement from 1.2476 to as low as 1.2218, breaking below 1.2239 support. Further decline is still possible after a minor consolidation and next target would be at 1.2155 support. Near term resistance is at the falling trend line on the 4-hour chart. A breakout of the trend line resistance could bring…
The Canadian dollar continues its recovery path and this time, Prime Minister Justin Trudeau is behind the move. Canada’s PM said that NAFTA talks are advancing in a significant way. So far, Foreign Minister Freeland and also the US and Mexican negotiators have made optimistic sounds. This time, it comes from Canada’s leader. The C$,…
In the latest episode of a developing trade conflict between the two largest economies in the world, China has announced fresh tariffs on 106 U.S. products. The move is likely to exacerbate fears surrounding an impending trade war between the two countries. However, an actual date from which these duties would be levied was not…
Update (8:30 pm ET): Barely two hours after Trump offered yet another trade war “tit” to China’s “tat”, the Chinese leadership released a statement foreshadowing its next inevitable retaliation in the escalating trade war between the world’s two largest economies. In a report published by the state-run Xinhua News Agency, Beijing vowed to defend China’s…
Let’s have a look at a long-term perspective on Treasury yields as of the March 29. The chart below shows the 10-Year Constant Maturity yield since 1962 along with the Federal Funds Rate (FFR) and inflation. The range has been astonishing. The stagflation that set in after the 1973 Oil Embargo was finally ended after…
