Top tech analyst Andy Hargreaves of Keybanc Capital Markets no longer sees Apple stock as a compelling investment as the company shifts from its device-driven revenue model to one that emphasizes its services revenues. Hargreaves warns that the transition into services is a risky move as the market is more competitive and saturated. It’s a […]
Does the world need a 50-year U.S. bond? The U.S. budget deficit ballooned past $1 trillion during fiscal year 2020, which started Oct. 1. One of the reasons the deficit is growing is the Tax Cuts and Jobs Act President Donald Trump signed into law in December 2017. Additionally, federal spending has increased at record […]
The fund automatically reallocates the bond to equity percentage weighting in the retirement account. Given their popularity, TDFs have had an out-sized impact on the market. In no small measure, these automated funds have helped support the 10-year long bull market. Target-date funds were marketed to individuals in the early years of their employment history […]
For the past decade interest rates have been at historically unprecedented low levels. Although the Federal Reserve steadily increased rates since 2016, it abruptly reversed course in January and has cut rates twice since then. Paltry yields available have forced investors into dividend-yielding stocks or the bond market, where the coupon rates have been negligible. […]
Is the current high valuation of the market a dangerous aberration from the norm? Many analysts contend the market isn’t overvalued, because there is a causal connection between low interest rates and high earnings multiples. The theory is that if you make money cheap companies cannot help but invest and grow their earnings. How does their […]
Legendary value investor Charlie Munger, Warren Buffett’s right-hand man, has always tried to simplify some of the essential steps for successful investing. Munger has helped Buffett steer Berkshire Hathaway toward unparalleled profitability over decades, regularly slaying the S&P 500 by double digits. Investors who follow these basic tenets assiduously will find that it leads to successful […]
Michael Burry was one of the first investors to spot the subprime mortgage crisis and profit from it. According to Bloomberg news, he sees a similar bubble brewing in passive investing. Passive investments are those that include index funds and other exchange-traded funds (ETFs). Burry believes that they’re inflating stock and bond prices in the […]
Ron Paul, the former Republican Congressman from Texas, has warned that the global economy is inching towards the era of negative interest rates, and that the United States will not be an exception. The entire global financial system is threatened because of the trend to move towards total negative rates in the hope that it […]
5G promises speeds up to 100 times faster, but the technological leap will be costly Cities could be overrun with smaller, closer-together antennas attached to everything Some towns already are suing, slowing the transition even more Over the past few years there has been much hype and excitement generated about the quantum leap in wireless […]
There has been much talk over the past few years about renewable energy sources, most notably wind and solar, supplanting hydrocarbon based fuels. Despite all the hype about a carbon-free future, the facts indicate that oil and gas will continue to be our principal sources of energy. Here are the trends behind the longevity of […]
