In the short term valuations aren’t important to stock performance, but in the long run they provide the best information about expected returns. Stocks are one of the few assets that experience selling pressure when they go on sale. That’s because trend followers, who are focused on the short-term, are selling to avoid further losses….
The U.S. equity market is lately growing by leaps and bounds. This stupendous run has primarily been fueled by President Trump’s business-friendly approach, a strong domestic economy, reduced tax rates, robust manufacturing activity and improvements in the labor market. Moreover, despite job additions being low in March, the overall employment situation remains strong. In fact,…
If you have not seen, Bed Bath and Beyond just delivered an earnings BEAT, on both the top line, and the bottom line. The dividend has also been hiked. However, guidance was weak, and shares are now tanking: We want to offer a few key thoughts here. They had 700 million in cash end of…
Citigroup (C) is expected to report earnings Friday before market open. The whisper number is $1.64, three cents ahead of the analysts’ estimates and showing confidence from the WhisperNumber community. A year ago the company reported earnings of $1.35, seven cents ahead of the whisper number. Citi has a 57% positive surprise history (having topped…
I discuss the three components of any investment – safety, liquidity or return. Importantly, as an investor, you can only have 2 of 3 components at any given time. Therefore, determining which components are the most important at any given time is key to the investment decision process. Video Length: 00:03:52
The swift regulatory changes taking place in the global cannabis sector are almost without modern precedent. While some find the situation analogous to the repeal of Prohibition in the United States, it’s also fair to point out that such events happened 85 years ago in the midst of the Great Depression. It was a long…
The US is starting to admit that it has a spending problem. According to the latest Monthly Treasury Statement, in March, the US collected $210.8BN in receipts – consisting of $88BN in individual income tax, $98BN in social security and payroll tax, $5BN in corporate tax and $20BN in other taxes and duties- a drop of 2.7% from…
Stock market volatility was front and center last week, mainly because of President Trump’s proposed tariffs and China’s retaliatory threats. Treasury bond volatility, on the other hand, hasn’t been as active. The long-term Treasury yield dropped to a low of 2.97% last week before rebounding to 3.07% last Thursday. Make no mistake: Trade war talk…
Despite massive volatility on a day to day basis, it may sound hard to believe, but the S&P 500 is currently trading right where it was nearly two months ago on February 13th. You read that right, in what has been the most volatile market environment in at least a couple of years, the S&P 500…
Enterprise subscription management software is pretty boring. But the world is shifting from purchase to subscription. Every company now wants “continuous customer relationships” and consumers love subscriptions. In many ways, the subscription economy isn’t new. Even cars were often leased versus bought but they were still treated as an asset. Companies like Zipcar took it…
