If Mario Draghi was lacking ammunition to initiate an outright quantitative easing program in the Eurozone, he certainly has it now. Even the staunchest opponents will have a tough time arguing against the need for a more aggressive approach to monetary easing. Here are five reasons: 1. The take-up on ECB’s TLTRO offering (see post) fell…
It’s a holiday miracle: give the worst creditors access to cheap money for longer-and-longer terms and hey presto, ‘expensive’ stuff is available to everyone. Retail sales modestly beat expectations in November (+0.7% vs +0.6% expectations) despite the NRF previously reporting the worst extended Thanksgiving shopping weekend since Lehman which surely got lost in the Arima-X-12…
With the market looking wobbly this December, the need to get paid in cold, hard cash has never been more apparent. If you are already in retirement, selling portfolio positions in a declining market to meet your living expenses is, for lack of better word, scary. Living off of dividend and interest income makes for…
An improving U.S. economy, substantial surge in manufactured and retail goods, and a sharp rebound in many end markets are expected to fuel the future growth of the Trucking industry. Declining oil prices over last couple of months is a major boon for many truckers. Fuel cost accounts for a considerable portion of expenses of…
The 10-Year Bond now has a Yield of 2.08% right before the all-important Fed Quarterly Meeting and Press Conference this Wednesday, the 10-Year basically lost 24 basis points in a week, and mind you the week right after the strongest Employment Report (a positive 321,000 jobs added for the month) since the Financial Crisis, capping what has…
By James Rickards Today’s investment climate is the most challenging one you have ever faced. At least since the late 1970s, perhaps since the 1930s. This is because inflation and deflation are both possibilities in the near term. Most investors can prepare for one or the other, but preparing for both at the same time…
As the carnage in the energy sector continues, the butcher’s bill of dividend casualties is starting to grow. Back in March, I explained how Seadrill (SDRL) had the weakest financial position of all the offshore drillers. And in early November, I asserted that dividend cuts were coming. Now, we’re already starting to see the “deluge” I warned about. Seadrill and Trilogy…
The Chart of the Day belongs to Bemis Co (NYSE:BMS). I found the stock by sorting the All Time High list to find the stocks with the most frequent new highs in the last month and then used the Flipchart feature to review the charts. Since the Trend Spotter signaled a buy on 10/21 the stock gained 7.92%. Bemis Company, Inc….
U.S. corporations are more profitable than ever, leaving many firms flush with cash. Deciding what to do with that excess cash is a good problem to have. Companies have several options when it comes to deploying their extra dough. They can make acquisitions, fund organic growth, pay down debt, or return it to shareholders through…
The Japanese economy may well be getting crushed under the weight of Abenomics (courtesy of an unprecedented in history quadruple-dip recession and a record number of Japanese corporate bankruptcies due to the plunging Yen), but as we wrote previously, Abe has effectively hijacked the nation to his (and Paul Krugman’s) stock-market levitating policies and has…
