For the week ending May 24, 23% of Americans said the economy is excellent or good while 29% said it is poor, resulting in a current conditions score of -6. The economic outlook score of -11 is the result of 42% of Americans saying the economy is getting better and 53% saying it is getting worse.
Well this chart from Gallup certainly makes one wonder. Where will the U.S. see growth? We need a catlyst......
Saw this and had to share it because clearly, there are enormous masses out there that just are not feeling giddy over the economic "recovery". Trickle down effect? Yeah, o.k. Sure, the stock market is enjoying all time new highs but is the economy truly humming along? The numbers show obviously not for the majority. Bribe your kids. Do whatever it takes. They'll need it later, even more than they need it today.
The economy is, in a word, “lumpy.” It is strong in some regions, anemic in others. Strength by economic sector varies widely. There are myriad reasons for this: Some parts of the country were much harder hit by the real estate collapse; some sectors naturally rebound more…
From BofAML's latest Global Fund Manager Survey: more than 50% of investors now expect Fed to lift off in Q3 or later. Courtesy of MatthewB
Obviously June seems off the table. Markets however, tend to bake in any moves long beforehand therefore remain long and accumulate banks and if you haven't already, lighten up on the utilities. There's still money to be had; just in the right areas.
The numbers are in on 2014 CEO compensation, and as the old Seinfeld joke goes, they are real and they are spectacular. CEO pay is also controversial as the income gap widens in America.
The average S&P 500 company CEO made 373 times the salary of the average production and non-supervisory worker in 2014, up from 331 times in 2013, according to the AFL-CIO.
Why is CEO pay rising sharply, and how are CEO pay packages structured to maximize executive compensation? Here are the basics you need to know to understand the big numbers behind the CEO headlines.
1. How much do CEOs get paid?
The average pay package last year was $22.6 million, up from $20.7 million in 2013,…
According to BusinessInsider, a bunch of data about the state of China's economy came out Tuesday night, and altogether it told us one thing — nothing the government has been doing to save its economy from falling deeper into a slowdown is working.
Since November, China has cut benchmark interest rates three times, including once Saturday. It has also loosened mortgage policies to prop up the housing market.
But none of it's enough. Especially when you look at the data from Tuesday night.
Lets walk through the scariest…
1. “We are limited, of course, to businesses whose economic prospects we can evaluate. And that’s a serious limitation: Charlie and I have no idea what a great many companies will look like ten years from now.”
“My experience in business helps me as an investor and that my investment experience has made me a better businessman. Each pursuit teaches lessons that are applicable to the other. And some truths can only be fully learned through experience.”
Treat an investment security as a proportional ownership of a business! A security is not just a piece of paper. Not all businesses can be reasonably valued. That’s OK. Put them in the “too hard pile” and move…
Life has intervened of late however I felt I would post my random thoughts viewing my port yesterday:
Russia is still working. RSX at it’s 100d today. I will add more if it comes back to the 50d http://screencast.com/t/Eh88iqLP Long hold, definitely. Throw it in a drawer and forget about it.
Buffet lowered his XOM stake and bought DE. DE Monthly sure looks like its coiled up for something. Buffet obviously thinks new all time highs http://screencast.com/t/rlyFa0yzLeb DE earnings this Friday bmo. I'd be long common and get put protection. Buy or add on any selloff. Daily view, bouncing off that 50% fib (to me) equals good chance it wants to challenge/break the high…
Depending on the condition of your home, the list of upgrades required to make it the home of your dreams might seem daunting and impossible to complete on your own. Hiring a professional is not always a bad idea, especially when major work needs to be done to make a home safe to reside in. But many times hiring a professional is not necessary if all the home needs is some tender love and care from its owners. So before scouring the internet for the best contractor in your area, first determine how many of the upgrades you can complete on your own.
Why do-it-yourself projects are worth the time
You might have the skills to complete home improvement projects on your own, but have little time to do so. You might have even heard rumors that do-it-yourself projects can be even more costly than hiring a professional to complete the projects. You might be limited on time, so hiring a professional seems ideal. So why should you…
It seems not all money managers out there have the warm-n-fuzzies for equities in 2015. Especially considering the almost two year sell-off in commodities, finally joined by crude oil in dramatic, face ripping action. In fact, one feels that the rise in interest rates in 2015 will do what is not expected; flatten the yield curve.
If the curve flattens gradually, most traders said it probably means investors believe the Fed will keep future inflation in check with gradual rate hikes. Bond traders hate inflation because it erodes the value of their fixed-income investment.
But if the curve-flattening trend speeds up?
"It's time to trade out of investments whose success depends on a strong…
Deflation will be the dominating theme of 2015. Deflation occurs when prices of production factors (wages and interest rates) fall to the extent of limiting labour and capital from drawing higher prices. The culprit to these conditions is typically an excess supply of labour and capital to the extent that wages and interest rates weaken substantially until they draw sufficient demand to the point of stabilising their price.
But as demand for labour and capital fails to fill the supply of workers and available liquidity, the spiral of excess supply takes over wages and interest rates remain weak, and even negative. Deflation hurts borrowers relative to lenders. Countries whose central banks combat deflation, or conduct reflationary policies, should see their…
Provided without commentary. Fee free to add your own.
U.S. markets will close early tomorrow, Christmas Eve and remain closed on Christmas day. Regular trading will return on Friday although who's really going to be around? Not me. Even though it's a holiday week though, I will still be charting in the background (mental health time) so check back when you find spare moments and checkout our "Charts" section for new setups. See you back here full time next Monday.
Volatility definitely increased leading up to this weeks quadruple witching and the S&P (400, 500 and 600) index re-balancing taking place tonight after the close. Selling the last two weeks resulted in oversold conditions in the near term charts and massive short covering at the market as every fund and investment bank bought new shares (as they rebalanced ahead of the indexes), resulted in two astounding days of back to back two percent gains. Bulls were partying in the streets but is it warranted? Has anything truly changed?
Yes, the Fed has reassured investors that they have no intention of raising rates any time soon which is what…
The first thing that immediately came to mind was the rising costs elsewhere in Americans pocketbooks that would take up the slack of lower gasoline prices, such as rent. Social Security recipients for example will see an increase of 1.9% in 2015 however this is no where on pace with the increases in average rents which continue to climb. In fact, how about a rent increase of 6.9% in November according to Trulia? Ouch!
Indeed incomes, when adjusted for inflation, have definitely not kept pace since 2000. (chart right). Add to this the fact that the majority of new jobs being…
Once is a great while you come across a blogger who takes a subject in the limelight, such as Ted Cruz's ridiculous tweet today on Net Neutrality, and he proceeds to absolutely NAIL it explaining why he's wrong in such a way, that even a 5th grader can understand it.
It's gone viral on Facebook and the comments continue to fly in. Nice effort on Cruz's part to get the 'uninformed' and 'Obama haters' to turn against Net Neutrality without even knowing why..........because Cruz says so! He has, after all, recently issed a comic book entitled "Ted Cruz Saves America". *LOL* This is classic. Read on.…
Stock markets have enjoyed a banner half-decade, forcefully reclaiming the ground lost to the financial crisis, and then some. This vigorous performance has occurred thanks, above all else, to two key enablers: surging earnings and recovering valuations. On the surface, there is nothing especially questionable about either. Earnings naturally rise as economies grow, and valuations recover as risk aversion fades.
However, a closer examination reveals a significant vulnerability within this cozy equation. Corporate earnings growth has been, in a sense, too good – persistently outpacing both revenues and the economy. This has driven profit margins to multi-decade highs.
Worryingly, profit margins have long been assumed to be mean-reverting, arguing that these juicy gains may eventually have to reverse. Such a scenario would necessitate an eye-watering…
“Is the S&P in a correction or Bear market Mom?” is the question I received from my daughter last night. She’s been learning the stock market slowly over the last five or so years and I cringe at times with the questions she poses however no question is a bad question. I’d rather she come to me than blindly follow some pundit or supposed guru to $99/month subscription. After all, if he/she is so smart – why do they even need to charge for anything? Just sit back and enjoy the wealth.
While the big boys and their algorithms have their calculated strategy, this is how I explained it to her in my simple, 'laywomans' terms. In my mind big money typically buys at major supports during a correction. They sit back and salivate at an opportunity to, not buy the dip, buy buy on the cheap and define their risk.
For me, I consider the monthly 20 SMA as you can see from my prior post on the subject…
Note: this page contains paid content.
Please, subscribe to get an access.