The markets have gone nowhere now for 11 months, as earnings and revenue growth have been weak. So far for the quarter, earnings for the S&P 500 are a little better than the original down -5% estimate, which is currently down -2%, but revenues are down -3% as expected. There has been a flight to…
Read BlogWe would have to say last week was very odd. As we have mentioned, the expectations were very low going into the earnings reports, so some companies were greeted with aggressive short covering when the quarterly reports were not as bad as expected. The technology sector was the big winner up 4.4%. Some companies are…
Read BlogWe have a list of all companies reporting earnings, last week it was only 2.5 pages long and this week it is 10 pages. About 30% of the S&P 500 reports earnings this week. From last week, the banks were generally better than feared. The banks are being well managed in a tough regulatory and…
Read BlogThis week we will begin to get a fair number of companies reporting third quarter earnings. The concern of the market is how much of the global economic malaise will impact earnings. Tuesday will be a very active day with Johnson & Johnson, CSX, Intel, and JP Morgan reporting. In fact, most of the big…
Read BlogWith the selloff in the market during August and September, as the S&P 500 fell nearly 13% from its recent high, we took advantage of that selloff, and opportunistically purchased quality companies with attractive dividend yields. Our current expected yield of 6.92% on the portfolio at the end of the third quarter is extremely high…
Read BlogWe are currently in a defensive mode, and it has protected our client’s assets from a significant correction. We don’t see this changing unless the market shows some significant improvement and starts to trend up. We could also get a buy signal if we get a capitulation sell off. Our high to low draw down…
Read BlogWith the poor Employment report last week, we believe the Fed has lost the opportunity to raise rates at least in October. China was one of the factors the Fed considered in September to not raise, and China seems worse since then. The market did test the lows of August successfully last week, and what…
Read BlogThere is a foreign commodity based company called Glencore, their stock has plunged as low metal prices could force the company into bankruptcy. Glencore has $31 billion in debt. This is not conducive to a strong economy. Please click below to continue reading: Market in a Minute 2015-9-29
Read BlogThe Federal Reserve surprised us by not raising interest rates last week. Fed policy mandates it to be driven by employment and inflation. The Unemployment rate at 5.1% is very close to full employment, and inflation, excluding food and energy, has been running at 1.8%. The Fed cited concern about international economies for maintaining the…
Read BlogThe Federal Reserve meets on Wednesday and Thursday and will decide on whether to raise interest rates. The Fed-funds futures indicate a small chance of an increase, and half of all economists surveyed by Bloomberg believe they will raise rates. The Fed has two goals; full employment and containing inflation or for now protecting against…
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