Earnings estimates have been falling for Colfax Corporation (CFX – Analyst Report) after the company provided weak guidance at its annual investor day conference in December. The company also reported disappointing Q3 results in October that prompted analysts to reduce their estimates as well. Colfax is a Zacks Rank #5 (Strong Sell) stock. Investors searching for value here will…
Our core measures of risk have been bouncing back and forth across the zero line this week. The category closed today barely above. A weekly close below zero will cause us to change our allocations in the long / cash portfolios to 100% cash. The long / short hedge portfolio will go 50% long and…
I gotta be honest with you. I follow way too many people on Twitter. 8,754, to be precise. It may be worth writing a post about the different reasons I follow different people. Some I follow out of curiosity, some out of courtesy, and others, I have absolutely no idea how, when, or why I…
Nearly two-thirds of all Americans are completely and totally unprepared for the next economic crisis. As you will read about below, a new survey has found that only 38 percent of Americans have enough money on hand to cover “a $500 repair bill or a $1,000 emergency room visit”. That essentially means that 62 percent…
The bond market continues to make history as global deflationary pressures and record central bank easing are driving yields to unfathomable levels. Back in November I wrote about “The Race to 0%.” It has now become a race to negative yields. Let’s take a look at a few examples from yesterday. 1) The 30-year U.S….
Global financial markets breathed a sigh of relief today on news that Germany might cut Greece some slack after the latter elects an anti-austerity government: Greek Debt-Relief Talks Possible After Vote, Germans Say Germany is leaving the door open to discussing debt relief with Greece’s next government, lawmakers in Chancellor Angela Merkel’s coalition said, signaling…
The current stock market landscape is screaming troubles. More than just short term variations, we are talking about significant economic developments.The shockwaves from the plunge in the oil price might create a short term bear market or even a short term recession. In this case, one should remain undisturbed and keep searching for companies whose…
The politics that investors seem most interested in is the Greek election on January 25, three days after the ECB meeting. However, there is another election that is receiving practically no attention, but could be very revealing. The prefecture of Saga in Japan holds an election Sunday that could give insight into how much Prime…
The calamity howlers of deflation are out in force this morning owing to an absolute economic non sequitur. Namely, that year-on-year consumer prices in the EU came in at negative 0.2% in December, implying that ECB printing presses need to go into immediate overdrive. Well, of course the CPI has momentarily weakened. Crude oil has experienced a monumental plunge of more…
The business cycle is being incredibly extended with the Fed rate at the ZLB. Effective demand is increased. But in the end, the effects of a low Fed rate cannot keep the business cycle from closing in on the effective demand limit and ending. It can slow down the process, but it cannot reverse the…
