Description: The Federal Reserve’s policy reversal on interest rates has driven benchmark yields to the lowest levels in more than a year. For stock investors, the falling rates environment is now favoring one particular sector: consumer staples. Source: CNBC.com – video report Date: Mar 27, 2019 Link: https://www.cnbc.com/2019/03/27/these-stocks-are-seen-as-a-good-bet-when-interest-rates-fall.html Questions for discussion: Why are consumer staples favored… Read more »
Monthly Archives: March 2019
Description: Thanks to Apple, the iPhone is hardly used as a phone at all. The same thing may very well happen to our wallets — forcing established credit card companies to change the way they do business. Source: CNBC.com – video report Date: Mar 26, 2019 Link: https://www.cnbc.com/2019/03/26/apples-move-into-banking-raises-the-bar-for-fintech-credit-cards.html?__source=iosappshare%7Ccom.apple.UIKit.activity.Mail Questions for discussion: What are the competitive advantages… Read more »
Description: Lululemon Athletica Inc. (LULU.O 14.13%) shares soared to a record high on Thursday after the maker of upscale yogawear topped fourth-quarter estimates and its forecast eased concerns of decelerating sales. Source: BNNBloomberg.ca – video report Date: Mar 28, 2019 Link: https://www.bnnbloomberg.ca/lululemon-surges-to-record-high-after-near-flawless-execution-1.1236152 Questions for discussion: Explain the current valuation for the firm? Do you think the… Read more »
Description: 3 of past 7 recessions have seen stocks peak before recession takes hold Source: MarketWatch.com Date: Mar 29, 2019 Link: https://www.marketwatch.com/story/this-time-an-inverted-yield-curve-suggests-the-stock-market-has-already-peaked-some-analysts-say-2019-03-28?mod=MW_home_top_stories Questions for discussion: Explain the thinking behind the different market predictions for the coming year. Explain what you think is going to happen?
Description: One day last September an unidentified trader pumped more than $3 billion into a tech fund run by State Street Corp. Source: Bloomberg.com Date: Mar 29, 2019 Link: https://www.bloomberg.com/graphics/2019-etf-tax-dodge-lets-investors-save-big/?srnd=businessweek-v2 Questions for discussion: What is motivating heartbeat trades? Should traders be concerned with this issue?
Description: The yield on the benchmark 10-year Treasury note dove to its lowest level since January 2018 after the Federal Reserve said that it’s no longer likely that it will hike rates again this year. Source: CNBC.com – video report Date: Mar 20, 2019 Link: https://www.cnbc.com/2019/03/20/us-treasury-yields-tick-lower-ahead-of-fed-rate-decision.html Questions for discussion: What is the significance of this decision? How should… Read more »
Description: More than 145 years after making the first pair of blue jeans, Levi Strauss & Co. is proving that investors are ready to buy into a company that wants to be known for more than just denim. Source: Bloomberg.com Date: Mar 20, 2019 Link: https://www.bloomberg.com/news/articles/2019-03-20/levi-s-set-for-return-to-public-market-as-ipo-action-heats-up Questions for discussion: Why was the IPO so successful? Do you… Read more »
Description: The U.S. economy, at its own peril, has been driven by cheap credit Source: MarketWatch.com Date: Mar 20, 2019 Link: https://www.marketwatch.com/story/when-the-us-falls-into-a-recession-a-credit-bubble-will-explode-2019-03-20?mod=mw_theo_homepage Questions for discussion: What is the meaning of the term “credit cycle”? Do interest rates determine stock and bond market valuations? What do you think will happen in the next 12 months?
Description: LONDON — European authorities on Wednesday fined Google 1.5 billion euros for antitrust violations in the online advertising market, continuing its efforts to rein in the world’s biggest technology companies. Source: NYTimes.com Date: Mar 20, 2019 Link: https://www.nytimes.com/2019/03/20/business/google-fine-advertising.html Questions for discussion: What are the reasons given for the fines? From a profitability point of… Read more »
Description: In Shanghai’s southeastern district of Xujiahui, Colonel Sanders’s smiling visage looms over the restaurant entrance, as it does at thousands of KFC locations around the globe. But step inside, and it quickly becomes clear that this is no ordinary KFC. Source: Bloomberg.com Date: Mar 20, 2019 Link: https://www.bloomberg.com/news/articles/2019-03-20/yum-china-is-building-the-kfc-of-the-future?srnd=businessweek-v2 Questions for discussion: What is motivating… Read more »