Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Sweden’s central bank cut interest rates for the first time in eight years as European monetary policymakers diverge from the US to support their economies even if it comes at the expense of their currencies….
MicroStockHub We previously covered Bank of America (NYSE:NYSE:BAC) in October 2023, discussing the massive pessimism embedded in the stock’s valuations and its mixed prospects, thanks to the mistaken perception that its unrealized losses were growing. While we continued rating the stock as a Buy here, thanks to the outperformance of its quarterly financial reports, investors…
PM Images Overview The rise of interest rates has left many investors scrambling to find the best deals in the market. Unfortunately, many people in the world are on the wrong side of the cash register; they provide the dividends, interest, and debt for the major corporations in the world and dish out most of…
RichHobson Stocks bounced yesterday after a three-week decline in anticipation of earnings reports from more than one-third of the companies in the S&P 500 this week. The highest hopes are for the largest technology companies benefitting from the boom in artificial intelligence, but I am more interested in profits beyond the Magnificent 7, which are…
crbellette The recent expectations for a quick pivot of the Fed’s interest rate policy somewhat cooled down, which reminded me of the attractiveness of floaters. Since my previous coverage on Invesco Variable Rate Investment Grade ETF (NASDAQ:NASDAQ:VRIG), the fund has gained 8.8% on a total return basis, surpassing my expectations by 3.5%. Despite the Fed’s…
Robert Way China’s leading jewelry seller has benefited from spiking gold prices that reached an all-time high after Iran’s drone attack on Israel last week In gold-crazy China, the showroom of Chow Tai Fook Jewelry Group Ltd. (OTCPK:CJEWF, OTCPK:CJEWY, 1929.HK) in Hong Kong’s Central business district is a bit of fantasy land featuring the many…
Emir Hoyman/iStock via Getty Images Fundamentals Persistent inflation pressures persisted in March, throwing a wrench in the Federal Reserve’s plans to start lowering interest rates in June and sparking doubts about whether they can do so this year without signs of the economy slowing down. According to the Labor Department’s report on Wednesday, the Consumer…
Marc Dufresne The Bank of Canada kept its key policy rate on hold at 5%. The central bank says it’s starting to see the economic conditions needed to lower rates, but that it’s looking for more evidence the momentum can be sustained. Hafiz Noordin, VP & Director, Active Fixed Income Portfolio Management, TD Asset Management,…
yalcinsonat1 There is good reason to be disappointed with the Federal Reserve. It has gotten us into an awful economic mess as a result of its earlier ultra-easy monetary policy. That policy managed to create both an inflation and a financial stability problem. But the Fed has only one interest rate policy to address those…
PM Images By Mehdi Benatiya Andaloussi, Economist, World Economic Outlook Division of the IMF’s Research Department; Nina Biljanovska, Economist, Macro-Financial Division of the Research Department; Alessia De Stefani, Economist, IMF Research Department; and Rui C. Mano, Deputy Division Chief, IMF’s Research Department Effects may be delayed in some countries: if interest rates remain higher for…
DNY59 Everyone expects the Federal Reserve to “pivot” – to lower interest rates – primarily because inflation appears to be under control. But the economy and stock market are on an upward trajectory, so they don’t need stimulation. So, the real question becomes “Where should interest rates be now?” History can be our guide. Over…
Luis Alvarez/DigitalVision via Getty Images Deluxe (NYSE:DLX) is doing alright, but we feel that it is hanging a bit on the edge. Most of its debt is locked in at the current rates. Interest won’t get a lot higher, but what about profits? We have concerns around coverage as some of Deluxe’s most profitable businesses…
RiverNorthPhotography Investment Thesis T. Rowe Price (NASDAQ:TROW) is a fundamentally solid asset manager with a long track record of outperforming relative benchmarks which has led to consistent growth in assets under management. Despite short-term challenges driven by rising interest rates which as led to net outflows over the past few years, I believe interest rate…
ZargonDesign/E+ via Getty Images What Rocket is – a mortgage banker, not a fintech Rocket describes itself as follows in its 2023 10-K: “We are a Detroit-based fintech company including mortgage, real estate, and personal finance business. We are committed to delivering industry-best client experiences through our AI-fueled homeownership strategy. Our full suite of products…
SB/iStock via Getty Images By SchiffGold The Bank of Japan’s historic move to end the country’s negative interest rate policy after nearly two decades triggered a jolt upward to new all-time highs for gold against the yen. But what are the implications for gold in the medium and longer term? The answer is far from…
William_Potter The Dimensional Core Fixed Income ETF (NYSEARCA:DFCF) is a great way to play the global investment-grade bond market. Benchmarked against the Bloomberg Agg, or Bloomberg U.S. Aggregate Bond Index, DFCF offers exposure to long-duration bonds and other fixed-income securities that, in the aggregate, are expected to maximize the total return for investors. While the…
Lazy_Bear The US dollar and interest rates appear to be at an inflection point. Much of the past several weeks have been about correcting the overshoot that took place in Q4 23, when the derivatives markets were pricing in nearly seven quarter-point rate cuts by the Federal Reserve this year. US two- (US2Y) and 10-year…
imaginima Dear readers, Prologis (NYSE:PLD) is a global industrial REIT which needs little introduction. If you live in a major city in the Western world, chances are that you’ve driven past Prologis’ warehouses countless times. The company owns 1.2 Billion sft of space on four continents and in 20 countries and completely dominates the sector…
Petrovich9 The U.S. Federal Reserve is widely expected to lower interest rates at either the May or June meeting. Daniel Ghali, Senior Commodity Strategist with TD Securities, tells MoneyTalk’s Greg Bonnell why he thinks many investors may be under-positioned in gold when interest rate cuts start. Greg Bonnell: While the US Federal Reserve has preached…
DANIEL ROLAND/AFP via Getty Images Introduction I previously covered Commerzbank (OTCPK:CRZBF) back in December 2023, highlighting Commerzbank’s strategic 2027 plan and its capital return potential relative to its largest peer, Deutsche Bank (DB). As expected, the bank is currently executing a 600 million EUR buyback as part of its 2023 capital return. In today’s article,…
Bloomberg/Bloomberg via Getty Images Today, I continue my research among the most compelling dividend companies with another dividend king: Colgate-Palmolive (NYSE:CL). The Federal Reserve’s decision to raise interest rates in the last couple of years has prompted many investors to favor risk-free rate bonds over stock dividends. As rates have approached a stationary level and…
Thai Noipho/iStock via Getty Images Co-authored by Treading Softly. When you hear the word catalyst, what comes to mind? For many, you may immediately think of your car and its catalytic converter. Good thinking! The catalytic converter contains a material to help finalize the conversion of emissions in your car’s exhaust system to less dangerous…
Rows of Solar Panels in Florida csfotoimages Emera Incorporated (OTCPK:EMRAF) (EMA.TO) (TSX:EMA:CA) is a Canadian-based electric utility often overlooked and misunderstood by utility sector investors. I have been a shareholder for almost 10 years and have followed the company since it started playing equity banker for sister Canadian utility Algonquin Power (AQN) in 2010. I…
anilakkus/iStock via Getty Images Markets have been pricing in a U.S. Fed interest rate cut by as early as March. Will the latest stronger-than-expected CPI data alter those expectations? David Sekera, Chief U.S. Market Strategist with Morningstar Research, looks at the likely scenarios and the implications for markets with MoneyTalk’s Greg Bonnell. Greg Bonnell: Let’s…
In terms of regional search, Google Trends revealed that countries such as Spain and the Philippines took the lead. People in these nations recorded more users searching for the term Solana than Ethereum. In 2023, searches on Google for “Solana” surpassed those for “Ethereum” for the first time since the launch of both cryptocurrencies in…
Dilok Klaisataporn Why did powerful third-quarter growth come as such a surprise? Olga Bitel, Partner, Global Equity Strategist and Hugo Scott-Gall, Partner, Portfolio Manager, Co-Director of Research, Global Equity Team, discuss the broad expansion in the U.S. economy, the moderation of inflation, and what to look for in a stock picker’s market. Hugo: Olga, what…
Justin Sullivan/Getty Images News Introduction A few weeks ago, I wrote an article on the so-called “busted” preferred shares issued by Bank of America (NYSE:BAC) as it was unlikely that those shares will be force-converted anytime soon. While I have pretty much always focused on the Series L preferred shares, Bank of America has issued…
Boy Wirat By Brian Manby Over the past two years, rising interest rates reversed several longstanding market relationships so significantly that they defy historical precedent. The most damning evidence is found in the equity market, where newly positive correlations between stock and bond returns eliminate the diversification benefit that existed when the historical relationship was…
OlenaMykhaylova The BlackRock Floating Rate Income Strategies Fund Inc (NYSE:FRA) is a closed-end fund, or CEF, that specializes in providing investors with a very high level of current income. The fund’s very attractive 11.97% yield stands as a testament to its success in this area, as that is easily enough for many retirees or other…
CryptoQuant says factors like the halving, ETF, approval, and rate cuts, could push Bitcoin to $160K next year. Analysts are bullish on the potential of Bitcoin (BTC) for next year, indicating several factors that could pump the price to $160,000. According to a blockchain analytics firm CryptoQuant report, Bitcoin may already be on its way…
champpixs Back in April 2023, I covered Global X SuperDividend REIT ETF (NASDAQ:NASDAQ:SRET) indicating that this ETF is a clear sell due to the overly aggressive asset allocation policy. In my view, the then-offered dividend yield of 7.5% was not sufficient to justify SRET’s risk profile. At the same time, I also highlighted three REIT…
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Dilok Klaisataporn By Eric Leininger At a glance Increasing debt issuance, quantitative tightening, and the Fed’s difficult balancing act on inflation led more interest rate traders to manage risks in 2023 The CME Group FedWatch Tool median market rate probability for December 2024 is 3.75% to 4%, and some of the market is expecting even…
Deepak Sethi/iStock via Getty Images Introduction I have always liked Investors Title Company (NASDAQ:ITIC) as I consider property title insurance to be a low-risk business. That’s not just a personal impression: the total amount of provisions for claims is usually just a fraction of the total amount of the premium income. But of course this…
Although the price spikes following the Fed announcement cleared recent bearish drawdowns and provided support levels, uncertainty remains over the sustainability of the increases. The prices of major cryptocurrencies, including Cardano (ADA) and Solana (SOL), have seen fluctuations around the latest Federal Reserve announcement on interest rates. On December 13th, 2023, the Fed decided to…
OlenaMykhaylova The First Trust Intermediate Duration Preferred & Income Fund (NYSE:FPF) is a closed-end fund that income-focused investors can employ to pursue their goals. As the name suggests, the fund seeks to reduce duration risk compared to some other closed-end funds, which should result in it being somewhat less volatile in a changing interest rate…
Despite the subdued overall interest, a group that remains consistently passionate is the die-hard Bitcoin maximalists. In recent weeks, Bitcoin price has once again captured the attention of the financial industry as it surged above $44,000, a level not seen since May 2022. However, this rally seems to lack the fervor and widespread interest that…
Mortgage rates are expected to continue their downward trend in December. The US mortgage market is witnessing a resurgence in refinance demand, marked by a substantial 14% increase in applications. According to a CNBC report, this surge is attributed to a recent drop in mortgage rates, bringing them down to their lowest point since August….
The Deribit exchange has recorded a new yearly high for Bitcoin perpetual futures open interest, a record not seen since BTC’s ATH. The amount of open interest in Bitcoin perpetual futures on the Deribit derivatives exchange has hit a new high of $740 million. This impressive level was last seen in November 2021 when Bitcoin…
StudioEasy/iStock via Getty Images Debt structure – leverage The current recorded on-balance sheet dollar liabilities are $94,75 Trillion. See the breakdown below: TOTAL DOLLAR LIABILITIES (FRED, BIS) Current dollar liabilities is 357% of U.S. GDP currently (recorded $94 T., not included $80T FX Swaps, other offshore bilateral repo transactions). After the GFC dollar leverage (recorded…
COIN is presently trading at $119 after closing at $115 on November 27, which is the highest close since May 2022. The price now has minimal resistance ahead as it is moving toward $130, the May 2022 high. Major cryptocurrency exchange Coinbase Global Inc (NASDAQ: COIN) has seen its stock price climb over 250% so…
primeimages About a half year ago I wrote an article on PIMCO Dynamic Income Fund (NYSE:PDI) warning investors about three potential risks, which could impose notable headwinds for PDI investors. The key areas of concern were the following: Massive exposure towards non-agency MBS. Approximately 40% of PDI’s portfolio is exposed to non-agency MBS, which against…
anzeletti/E+ via Getty Images Dear readers, I don’t cover technology stocks often here on Seeking Alpha, and it’s for a good reason – my current exposure to the sector is very low. It’s not that I don’t believe in technology and don’t think that these are great businesses. Believe me, I do, and I had…
syahrir maulana US small caps are experiencing an autumn stock market rally, but they continue to be heavily impacted by interest rate sentiment. Year to date, the Russell 2000 index has increased by 2.07%. Over the past week, however, the index has grown by 5.41% and over the past month by 7.92%. Despite this impressive…
zhengzaishuru Investment thesis Oil (CL1:COM) prices have been trending lower, mostly on expectations that demand is weak. Stories of continued US production growth, despite the steady drop in drilling activity in the past year also help to provide a sense of complacency regarding global oil production supply growth trends, even as demand growth is seen…
PeopleImages/iStock via Getty Images The Brazilian payment and digital banking company PagSeguro (NYSE:PAGS) reported record-breaking net profit in the third quarter, showcasing resilience amid challenges posed by a more intricate credit environment in Brazil amidst declining interest rates. In my initial company analysis, I highlighted PagSeguro’s potential to benefit from a more favorable fiscal landscape…
leolintang We previously covered W. P. Carey (NYSE:WPC) in August 2023, discussing its safe dividend thesis then, attributed to its reiterated FY2023 AFFO guidance. Then again, given the REIT’s heavily leveraged business model, the growing expenses, and rising inflationary pressure, it was unsurprising that the stock had been sold off as well, as investors fled…
bin kontan Almost two years ago, I recommended purchasing American Assets Trust (NYSE:AAT) for its solid business model and its expected recovery from the coronavirus crisis. No-one could have predicted that a war in Ukraine would emerge about a month after that article. Due to the sanctions imposed by the U.S. and European Union on…
A number of reputable investors participated in the Series E funding round, among them there were Lakestar, Lightspeed Venture Partners, Coinbase Ventures, and Baillie Gifford. Blockchain.com, a leading cryptocurrency exchange and wallet provider, recently raised $110 million in a Series E equity financing round that was led by UK-based Kingsway Capital. The latest investment comes despite…
Matthew Horwood/Getty Images News Dassault Aviation (OTCPK:DUAVF) has been a company that we’ve followed for many years now. It’s always had a very large cash balance, owing to the very tight family control on the company, and the desire to keep the company eternally solvent, despite perennial profitability and obvious structural growth post Ukraine War….