An image in a Tweet accurately describes the folly of Fed-sponsored bubbles. A Tweet by OccupyWisdom accurately portrays the Fed-enhanced Cycle of Stupidity. If accurate, and I believe the graphic is precisely on the mark, the interest rate cycle is nearly over, just as a near-unanimous consensus has formed that the bond bull market is over…
America Set To Outperform? Analysis have been toying with the thesis that America might take a strong leadership role in the growth of advanced economies. This would expand the S&P 500’s earnings multiple as capital comes back to America. America has weak competition as there has been a slowdown in Europe; South Korea has seen…
Tesla share price continues to tumble down towards its bond price following headlines from Reuters, citing sources, that the car-making company will shutter production of the Model 3 from May 26th to 31st for “fixes to its assembly.” TESLA PRODUCTION SHUTTERED FROM MAY 26-MAY 31, REUTERS SAYS TESLA IS SAID TO PAUSE MODEL 3 PRODUCTION FOR…
Over the past century, value stocks have outperformed both growth stocks and the market as a whole. During the past decade, the value strategy has experienced uncharacteristically low returns causing a significant amount of pain for hedge fund managers and other investors who invest in quantitatively cheap companies. Although it’s tempting to proclaim that this time…
The earnings season, which is nearing its end, has been quite impressive this time around. However, the show is not over yet. With several retail behemoths including Walmart, Macy’s and Target, queued up to report their quarterly numbers, investors are likely to keep their eyes on the Retail-Wholesale sector’s progress card. We note that the sector has…
This morning, Bernstein analyst Todd Juenger upgraded CBS (CBS) to Outperform and said he views the probability of a CBS-Viacom (VIAB) re-merger as close to zero for many years to come. His peer at Citi voiced a similar opinion and dropped his likelihood of a merger to 25% from 50%. This comes a day after…
The National Association of Home Builders (NAHB) Housing Market Index (HMI) is a gauge of builder opinion on the relative level of current and future single-family home sales. It is a diffusion index, which means that a reading above 50 indicates a favorable outlook on home sales; below 50 indicates a negative outlook. The latest…
Tuesday’s release of the Empire Manufacturing report for the month of May came in better than expected with the headline index rising back up to 20.1 from last month’s level of 15.8. Economists, meanwhile, were looking for a modest decline. You may recall that in last month’s report, we saw expectations for conditions six-months from…
After being rumored and talked about for over a year, at the end of last year the tax cuts were finally delivered. The idea had captured much market attention during that often anxious period of political flirtation. Prices would rise or fall by turn based on whether or not it seemed a realistic possibility. Public…
Is it just me or have there been a whole bunch of really scary sounding stories about rising interest rates in the last few months? While some of these worries are warranted it’s important to pan out and take a more objective view of the environment so we can avoid making excessively short-term judgements about…
