How the ‘great central bank unwind’ could ignite the next financial crisis

Posted by & filed under Financial analysis, Growth & Valuation, Market Analysis, Personal Finance.

Description: As the Federal Reserve prepares to begin paring the size of its $4.5 trillion balance sheet next month, analysts at Deutsche Bank on Wednesday warned that what they have dubbed the “great central bank unwind” is one of several candidates for creating the next financial crisis. Source: MarketWatch.com Date: Sep 20, 2017 Link: http://www.marketwatch.com/story/how-the-great-central-bank-unwind-could-ignite-the-next-financial-crisis-2017-09-20… Read more »

Google Is Buying HTC’s Smartphone Expertise for $1.1 Billion

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Description: SAN FRANCISCO — Google announced late Wednesday night that it is spending $1.1 billion to hire a team of engineers from the smartphone business of the struggling Taiwanese manufacturer HTC in a bid to bring more hardware expertise to its own mobile technology operations. Source: NYTimes.com Date: Sep 20, 2017 Link: https://www.nytimes.com/2017/09/20/technology/google-htc-smartphones.html?rref=collection%2Fsectioncollection%2Fbusiness&action=click&contentCollection=business&region=rank&module=package&version=highlights&contentPlacement=2&pgtype=sectionfront Questions for discussion:… Read more »

Toys ‘R’ Us Is a Cautionary Tale for Technology

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Description: How about this setup for a joke: What does Toys “R” Us Inc. have in common with business software companies? Source: Bloomberg.com Date: Sep 21, 2017 Link: https://www.bloomberg.com/gadfly/articles/2017-09-21/toys-r-us-is-a-cautionary-tale-for-technology-firms Questions for discussion: What does article say about the use of debt and the consequences? What should investors and financial managers take away from this report?

Bitcoin Is Plunging After Jamie Dimon Called It a ‘Fraud’

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Description: Bitcoin’s value has dropped 10% since J.P. Morgan CEO Jamie Dimon slammed the cryptocurrency Tuesday, briefly falling below the $3,800 mark on Wednesday. Source: Fortune.com – video report Date: Sep 13, 2017 Link: http://fortune.com/2017/09/13/bitcoin-jamie-dimon-fraud-price/ Questions for discussion: Why did Bitcoin drop in value after the pronouncement by Jamie Dimon? Do you agree with his assessment?  

Stock market’s 5-month win streak should cheer the bulls

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Description: Wall Street has tended to maintain momentum after similar streaks Source: MarketWatch.com Date: Sep 13, 2017 Link: http://www.marketwatch.com/story/stock-markets-5-month-win-streak-should-cheer-the-bulls-2017-09-13 Questions for discussion: What is the basis for confidence in future market gains? Do you agree with the analysis and advice?

‘False Peace’ for Markets? A Trader Is Betting Millions on It

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Description: AUSTIN, Tex. — Last Wednesday was another good day to make money on Wall Street: Stocks pushed up, interest rates were at rock bottom and the VIX gauge of investor unease was again trending downward. Source: NYTimes.com Date: Sep 13, 2017 Link: https://www.nytimes.com/2017/09/13/business/dealbook/market-volatility.html?rref=collection%2Fsectioncollection%2Fbusiness&action=click&contentCollection=business&region=rank&module=package&version=highlights&contentPlacement=2&pgtype=sectionfront Questions for discussion: What does the article say about conditions and… Read more »

Roots Is Said to Seek C$700 Million Valuation in its IPO

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Description: Company could raise about C$200 million in share sale. Move comes two years after Searchlight Capital investment Source: Bloomberg.com Date: Sep 13, 2017 Link: https://www.bloomberg.com/news/articles/2017-09-13/canadian-casualwear-retailer-roots-files-for-toronto-ipo Questions for discussion: Do you think the evaluation is fair? Why do you think the IPO is being considered by management at this time, given the problems facing other… Read more »

Disney’s dark side: Stock tanks on earnings warning

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Description: Disney wasn’t the happiest place on earth for investors Thursday — and other big media stocks weren’t exactly magic kingdoms either. Source: CNNMoney.com – video report Date: Sep 07, 2017 Link: http://money.cnn.com/2017/09/07/investing/disney-earnings-bob-iger-star-wars-marvel-streaming/index.html Questions for discussion: Summarize the key reasons the stock is under pressure. What do you think of the risk to buying at this… Read more »

Opinion: This rocky stock market requires an all-terrain portfolio

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Description: The bulk of U.S. stock gains in this long-running bull market are due to one variable: the expansion of the price-to-earnings ratio. Source: MarketWatch.com Date: Sep 07, 2017 Link: http://www.marketwatch.com/story/this-rocky-stock-market-requires-an-all-terrain-portfolio-2017-09-07 Questions for discussion: Summarize the concerns presented in this article. Do you agree with the analysis and advice?