Are we in in a stock market bubble? One major brokerage house recently published an in-depth report on this very topic. It looked at a multitude of previous stock market boom-turned-busts going all the way back to the “tulip mania” in Holland in the 1630s. The brokerage came up with a list of nine characteristics […]
Many financial markets around the world are at or near all-time high levels. Is there any region of the world where there might a nice contrarian opportunity? One might be the emerging markets. Emerging market countries are defined as those transitioning from a lower income, lesser developed state that is integrating into the more mature […]
Have your seen the term “zombie company” used in the financial media over the past year or so? What is it? In simple terms, a zombie company is one that isn’t generating enough income to cover its annual interest payments on its debt. With the sharp move down in interest rates last year, the population […]
Looking for yield on your savings account has been pretty difficult these past few years. The Fed has continued to print money and keep interest rates low, so it could be quite a while before there is a change to this environment. S0 how does an investor produce yield on their accounts while trying to […]
Amidst all of the nerve-wracking market volatility in recent days, some good therapy may be to refocus on business fundamentals and the state of our economy. Refer to the chart below. I come across many business and economic indicators in the course of my investment and financial market research, but I find the Goldman Sachs […]
Some misconceptions that some dividend investors fall into are that stocks with high yields are a better buy. Buying dividend growth stocks can produce years of steady income increases. Because of compounding, low-yield dividend stocks have a higher potential for increasing annual payouts. Even though the income is nice for high-yield dividend stocks where the […]
Is there a commodity super cycle in its early formation? Take a look at the two charts below. They show the Commodity Research Board (CRB) Index. This index tracks the futures prices of 19 commodities, including aluminum, coffee, nickel, cattle, silver, and oil. The first chart is as of October of last year. The second […]
The financial market cycle that followed the great financial crisis of 2008-2009 was associated with sharply declining inflation expectations. Long-term nominal GDP expectations slowed, as did revenue growth in the corporate sector outside of the technology area. The period since 2009 can certainly be described as deflationary. We had significant declines in interest rates over […]
Allow me to present one chart to you that could indeed prove to be a game changer for investors and financial markets going forward. See below. What are we looking at in the chart above? It is the 10-Year Treasury bond interest rate going back to June 1, 2019. In the world of technical analysis, […]
Many financial advisors have recommended the time-tested 60/40 portfolio to investors for decades. The 60/40 portfolio, which calls for 60% of a portfolio to be invested in stocks and 40% in bonds, has outperformed other “balanced” portfolio approaches. But it’s had a lot of help — help that likely won’t be here for the next […]
