Description: Jeremy Siegel, the longtime stock market bull and influential Wharton School professor, called for more diversity of thought among the members of the Federal Reserve’s policymaking committee, saying the central bank’s groupthink causes it to make mistakes. Source: CNBC.com – video report Date: May 01, 2019 Link: https://www.cnbc.com/2019/05/01/jeremy-siegel-blames-fed-groupthink-for-20percent-market-drop-late-last-year.html Questions for discussion: What is the basis… Read more »
Posts Categorized: Governments & Regulators
Description: A gauge of U.S. factories fell in April to the weakest level since late 2016, signaling that manufacturing headwinds extended into the second quarter as companies continue to confront uncertainty about trade. Source: Bloomberg.com Date: May 01, 2019 Link: https://www.bloomberg.com/news/articles/2019-05-01/u-s-factory-gauge-falls-to-two-year-low-as-orders-output-cool?srnd=markets-vp Questions for discussion: What does the report suggest about the economy and future interest… Read more »
Description: Oil prices tumbled as much as 4% on Friday, extending early losses after President Donald Trump said he told OPEC to take action to temper fuel costs. Source: CNBC.com – video report Date: Apr 26, 2019 Link: https://www.cnbc.com/2019/04/26/oil-market-opec-output-rises-us-sanctions-on-iranian-oil-in-focus.html Questions for discussion: Why did oil prices pull back, according to the report? Explain oil prices and their effect… Read more »
Description: Apple and Qualcomm have settled their royalty dispute, the companies announced in a press release. The settlement includes a payment from Apple to Qualcomm as well as a chipset supply agreement, suggesting that Apple will buy Qualcomm chips for future iPhones. The companies did not say how much the payment will be. Source: CNBC.com – video report Date:… Read more »
Description: BlackRock Inc. BLK, +3.25% Chief Exeuctive Larry Fink says that with stocks knocking on the door of records, a surge to the upside appears more likely than a market collapse. That is because so many investors still have lots of cash to put to work, the head of the world’s largest asset manager told CNBC in a Tuesday interview…. Read more »
Description: Economic growth won’t last as the U.S. labors under the burden of growing entitlement programs and weakness around the world, former Federal Reserve Chairman Alan Greenspan told CNBC. Source: CNBC.com – video report Date: Apr 12, 2019 Link: https://www.cnbc.com/2019/04/12/alan-greenspan-says-economy-will-start-to-fade-out-because-of-growing-us-entitlement-burden.html Questions for discussion: What does Alan Greenspan say about the economy that should concern investors? Do you… Read more »
Description: A deal with Commerzbank could be a solution, but it could also make things a lot messier. Source: Bloomberg.com Date: Apr 12, 2019 Link: https://www.bloomberg.com/news/features/2019-04-12/what-a-deutsche-bank-merger-could-mean-for-germany?srnd=businessweek-v2 Questions for discussion: What is driving the merger? Do you think it is the solution?
Description: Mohamed El-Erian, chief economic adviser of Allianz, said the Federal Reserve made a “massive U-turn” to become more dovish in recent months. Other global central banks have followed suit. For that reason, El-Erian thinks that the current bull market could go on for another one or two more years. Source: CNNMoney.com – video report Date:… Read more »
Description: “We’re back to the levels as if the December decline never happened and I think what’s interesting is what’s pushing that is the Fed has decided to not hike for the rest of 2019 and only once in 2020. Now that is a double-edged sword, that’s a canary in the coal mine,” Sanchez said… 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?