Bank of New York Mellon Corp (NYSE: BK) trades at a P/E multiple of 13.0x, which is lower than the Financials sector median of 18.7x. While this makes BK appear like a stock to add to your portfolio, you might change your mind after gaining a better understanding of the assumptions behind the P/E ratio. In…
Overnight, we got the last trading in major markets of the quarter as Japanese, South Korean, and mainland Chinese equities all rose following Thursday’s mammoth gains on Wall Street. “Let’s get out of this quarter and take a breather,” PNC’s Rich Guerrini said, adding that “we need some market stability at this point and hopefully…
If you haven’t figured it out by now, sustainable, responsible and impact investments are truly the future. The old ways of Wall Street appear to be melting away as more investors are looking to be active in the selection of their selections of retirement funds and their impact on society. While sustainability is nice (and…
CRUDE OIL: The commodity turned higher off its intra day low on Thursday leaving risk of more strength on the cards. On the downside, support resides at the 64.50 level where a break will expose the 64.00 level. A cut through here will set the stage for a run at the 63.50 level. Further down,…
Investors love to talk in percentages. The Dow is up 25% this year, up 200% this decade. This stock is a ten bagger. Blah, blah, blah. Traders — if they want to be successful — should disabuse themselves of that notion as soon as possible and talk in terms of points instead. Investing is the…
Despite a brief bounce overnight, cryptos are sliding once again with Bitcoin below $7,000; Ethereum below $400; and Ripple back below 50c. “It’s a sea of red,” said one seasoned crypto-trader, adding after a stoic pause, “again!” Bitcoin is back below $7,000… Heading towards its early Feb lows… As CoinTelegraph notes, the overall market slump could be attribued…
Greg Ip gave us another rendition of this old scare story in a Wall Street Journal column. The argument is that the interest paid on U.S. government debt will soon impose an enormous burden on the federal government, choking off spending on important government programs. The key part of this story is that interest rates will…
Week 12 of 2018 shows same week total rail traffic (from same week one year ago) improved according to the Association of American Railroads (AAR) traffic data. The rolling averages growth rate declined. Analyst Opinion of the Rail Data We review this data set to understand the economy. If coal and grain are removed from the analysis…
Factor Momentum Robert D. Arnott (Research Affiliates), et al. January 31, 2018Past industry returns predict the cross section of industry returns, and this predictability is at its strongest at the one-month horizon (Moskowitz and Grinblatt 1999). We show that the cross section of factor returns shares this property, and that industry momentum stems from factor…
WTI Crude Oil The WTI Crude Oil market had a choppy session on Thursday, going back and forth during the day, essentially doing nothing. The market is trying to stabilize a bit, but I think that we have a couple of noisy days ahead of us. There seems to be more of an upward pressure…
