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 »
Posts Categorized: Growth & Valuation
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: McDonald’s took nearly 20 years to step back into mergers and acquisitions. But now it has returned to dealmaking, as it looks to build on its tech-heavy strategy with calculated digital investments. Source: CNBC.com Date: Apr 03, 2019 Link: https://www.cnbc.com/2019/04/03/mcdonalds-announced-2-deals-in-a-week-heres-why-investors-should-care.html Questions for discussion: Why should investors care, according to the report? How should investors respond,… Read more »
Description: An analysis of mutual fund stock trades over the past two decades has thrown into question the rationale that has sent everybody and her grandmother stampeding into low-cost index funds and exchange traded funds. Source: MarketWatch.com Date: Apr 03, 2019 Link: https://www.marketwatch.com/story/investors-widely-held-beliefs-about-etfs-and-index-funds-may-be-wrong-2019-04-03?mod=mw_theo_homepage Questions for discussion: What is the essence of the research findings and… Read more »
Description: Despite China’s economic slowdown—due in part to weaknesses in consumption and a trade war with the US—total media ad spending will increase 14.6% in 2019. Source: eMarketer.com Date: Mar 28, 2019 Link: https://www.emarketer.com/content/china-digital-ad-spending-2019?ecid=NL1001 Questions for discussion: What does this report tell investors interested in Chinese online businesses? Would you be buying today?
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 »
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?