It may be a trap, but the recent slide in US Treasury yields and the market’s implied inflation forecast could be a blessing that helps unleash a stronger cycle of growth. The critical factor, of course, is the strength of the US economy. So far, so good. The macro trend for the US has improved…
BHP Billiton Limited (BHP – Analyst Report) was once riding high as commodities boomed but now that China’s economy is slowing and commodity prices have plunged, so has earnings growth. This Zacks Rank #5 (Strong Sell) is expected to see a decline in earnings this year compared to last. Demerger to Unlock Value BHP Billiton is one of…
OVERNIGHT MARKETS AND NEWS March E-mini S&Ps (ESH15 -0.33%) this morning are down -0.29% and European stocks are down -1.64% ahead of U.S. Dec payrolls. European stocks were undercut after German Nov industrial output unexpectedly fell along with speculation an ECB stimulus plan will fail to shore up the economy. According to a person who attended a meeting of the…
The EUR/USD pair fell during the course of the session on Thursday, and broke down below the 1.18 level. However, we did get enough support to turn things back around and form a little bit of a hammer, so I am not necessarily looking to sell this right away. In fact, with the nonfarm payroll number coming…
For Robert Kiyosaki the picture is clear: forget about stocks! It is a clear message that Kiyosaki underlines in his latest book ‘Second Chance’. ‘Cash will become trash’, is what the writer states. The future of the dollar does not look bright, according to Kiyosaki, which translates to a better future for gold. The gold…
While the trading world, or at least the kneejerk-reaction algos, is focused on today’s US nonfarm payrolls due out in just 2 hours (consensus expects 240K, with unemployment declining from 5.8% to 5.7%) the key event overnight came out of China, (where inflation printed at just 1.5% while PPI has imploded from -1.8% in September…
When it comes to stocks, income investors are mostly interested in dividends. Earnings and valuation don’t matter much, unless they impact the sustainability of a company’s dividend. For instance, an income stock that cuts its dividend is a killer to our portfolio value. Value investors often sneer at us, claiming that dividends are irrelevant to…
Uncertainty in the markets can be a scary thing and often prompt ill-timed moves that set your portfolio back from achieving your goals. The initial days of trading in 2015 have certainly shown an increase in volatility that may prove to setup new trends in the near future. The SPDR S&P 500 ETF (SPY) is more than…
by Russ Allen The last couple of weeks’ articles, which you can read here and here, dealt with the time value in a call option and its ups and downs. We’ll polish off this series with a description of a strategy that can be used to generate a moderate amount of income with a relatively small amount of…
The US dollar is slightly softer amid last minute position adjustments ahead of the US jobs data. After the outsized 321k increase in nonfarm payrolls in November, a more trend-like report is expected today. The three-month average of 278k was skewed by the November report. The consensus calls for a 240k increase, which is near the…
