In “It’s ‘Grotesque’! Of Buybacks And Leverage“, we highlighted a recent Bloomberg interview with SocGen’s Andrew Lapthorne who is just as concerned as ever about corporate leverage and is just as unconvinced as he was last year about the relative merits of employing financial engineering in the service of myopic, executive compensation-motivated buybacks. While it’s always nice…
Apple stock (Nasdaq:AAPL) was up almost four percent on Friday due in part to Berkshire Hathaway revealing a big stake in Apple shares. But one thing he said bothered us. Blackberry 10 Years Ago? Did Warren Buffett just compare Apple to BlackBerry? Here’s what he said. “The idea that you’re going to spend loads of time trying to…
Bitcoin is about to rise 20%, sooner rather than later. Why? Because of its chart setup: a breakout one month ago combined with a gap between 10,000 and 12,000. Once again, the chart says it all. By the way, this short term Bitcoin price forecast is unrelated to our long term target. Everything is still…
The narrative about the Q1 earnings season is one of all-around strength. But you wouldn’t see evidence of this strength in the stock market’s recent performance. The major indexes haven’t done much since the start of the year and performance since this earnings season got underway has hardly budged. The chart below shows the performance…
Dollar/CAD traded sideways for another week. Is the pair about to resume its rise or is it due for a turnaround? Canada’s jobs report stands out. Here are the highlights and an updated technical analysis for USD/CAD. The Canadian economy grew by 0.4% q/q in February, better than expected and encouraging after the economy squeezed in…
SocGen’s Andrew Lapthorne is going to make you a believer in the idea that spreads are disconnected from measures of corporate leverage if he has to kick down your damn door and scream it at you. Regular readers have probably some semblance of familiarity with Andrew’s work and he talks (a lot) about leverage and the…
The past few months have seen some unusual, maybe even unique, developments in the gold and silver futures markets, with gold becoming extremely bearish and silver almost ridiculously bullish. Neither imbalance has amounted to much in terms of price action, so it’s not clear whether the most recent changes matter. Still, the action in both…
Fundamental Forecast for USOIL: Bullish Talking Points: The ONE Thing: Bets are rising that Trump will exit the Iran Accord on May 12 after Israeli PM Netanyahu called Iran liars, only to have Iran call Trump a bully. It seems like Trumps style is catching on. The popular move is to talk about how much oil production…
Yesterday, you got the answers to eight of the most common questions I receive about penny stocks. One of those questions was: “How do you make money when stocks go down?” To which I answered: Shorting the stock. Let’s talk about that a little more… Short selling is an investing strategy. You borrow shares of stock from your…
The Bureau of Labor Statistics announced yesterday that the unemployment rate was down to 3.9% in April. That’s nearly as low as it’s been any time in the last half century. Does that mean the U.S. economy faces some problems ahead? Worries about the unemployment rate getting too low are usually framed in terms of the Phillips…
