Stay informed with free updates Simply sign up to the Global Economy myFT Digest — delivered directly to your inbox. Surging share prices and falling borrowing premiums are making it easier for companies to access fresh cash, as an index of US financial conditions returns to levels last seen before the Federal Reserve started raising…
Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. GameStop has announced plans to sell up to 45mn new shares, following a week in which its stock soared after the re-emergence of a popular day trader synonymous with “meme stock” investing. The video game…
gaffera Transcript Twelve-month returns for the MSCI Japan are near 17% in U.S. dollar terms (as of May 6, 2024). We don’t see the recent slump in the yen to 34-year lows against the dollar derailing this momentum. Japan’s growth outlook remains rosy and corporate reforms are taking hold. 1) Central bank policy intervention An…
Mindful Media A wave of capitalism has swept through Argentina. Optimism runs high as the country’s newly elected president takes aim at ditching policies that prevent the privatization of companies currently operated by the South American nation’s government. Investors have rejoiced in the past year. The Global X MSCI Argentina ETF (NYSEARCA:ARGT) is up 58%,…
jgroup/iStock via Getty Images Investing is more art than science, i.e., mathematical models. The last 70yrs experts have tried to convince investors and themselves that Modern Portfolio Theory operated by computers produced the highest returns over time. Today, an overwhelming majority using this tool is still expecting a recession, and some of this is reflected…
Douglas Rissing/iStock via Getty Images Thesis In A Nutshell The S&P 500 (SP500) has tumbled over the past few weeks, as hotter-than-expected inflation readings pushed up speculation for a potential rate hike in 2024. However, the FOMC meeting for April/May gave investors some relief, as Fed Chair Jerome Powell indicated that a rate hike is…
PPAMPicture Investment thesis Modine Manufacturing’s (NYSE:MOD) stock is really hot now, as it has doubled over the last six months. The current sentiment backed by the robust momentum might fuel a further rally, but the stock is already 14% overvalued. MOD’s fundamentals are decent, but they do not demonstrate that the stock deserves any premium…
DNY59 We previously covered Verizon Communications Inc. (NYSE:NYSE:VZ) in January 2024, re-rating it as a Buy, after falling for the classic bear trap. Even then, we believed that it was impossible to time the market, especially given the extreme pessimism then. Thanks to the moderation in its capex in 2024 and subsequent improvement in its…
10’000 Hours/DigitalVision via Getty Images Investment Thesis CSP Inc (NASDAQ:NASDAQ:CSPI) has seen a massive rally over the past few years, up over 200% giving investors massive gains if they got in early. However at today’s prices, I believe the valuation is excessive and recommend a sell rating because all of the growth prospects seem to…
PM Images The Vanguard High Dividend Yield Index Fund ETF (NYSEARCA:VYM) and the Schwab U.S. Dividend Equity ETF (SCHD) are two of the most popular dividend ETFs, having amassed $67.87 billion and $55.36 billion in assets under management (AUM). At a point, I wasn’t thrilled with being invested in VYM, but I didn’t exit the…
Corri Seizinger/iStock via Getty Images Evidence is mounting that the gold rally is ready for an intermediate term correction. New investors shouldn’t buy gold or gold ETFs now; better prices lie ahead. Current holders should lighten gold positions by 30% if prices move any higher. We have a maximum upside target of $2,450, which is…
Michael H Exxon Mobil Corporation is the titan of the oil industry. I wrote an article a couple of months ago explaining why I thought that the American Energy Titan was slated to dominate the last chapter of the Energy industry. Furthermore, that chapter is likely to be longer than a lot of folks appear…
Monty Rakusen/DigitalVision via Getty Images The March US employment data were stronger than expected and lend support to the re-acceleration hypothesis and an extension of US exceptionalism. In Q1 24, nonfarm payrolls rose by an average of 276k. It was the strongest quarter in a year and compares with an average monthly job gain of…
imaginima GigaCloud: High-Growth B2B E-Commerce Platform Investors in the B2B e-commerce platform GigaCloud Technology Inc. (NASDAQ:GCT) have continued to outperform the S&P 500 (SPX) (SPY), although the journey over the past three months has been highly volatile. In my January GCT article, I encouraged investors to consider a pullback in GCT before pulling the buy…
OpenRangeStock/iStock via Getty Images I covered SNDL (NASDAQ:SNDL) last April and gave the company a Hold rating. The stock has gained 26.81% since my coverage. Most of the gain occurred in the last thirty days and surrounds the current cannabis sector rally. I continue a Hold rating for SNDL and will consider in this article…
Lemon_tm Gold staged a blinding comeback last week, surging to fresh all-time highs above $2,200 an ounce. The rally, which has added around 10% to gold’s value since mid-February, caught many market watchers off-guard. But for those of us who’ve stuck with the yellow metal through its ups and downs, the price action is the…
manassanant pamai It feels like the late 1980s again. Not because I’m wearing Reebok high top sneakers, Guess jeans and Esprit jackets or listening to Men at Work and Yes, but because there’s a lot of excitement around Japan’s economy – and Japanese equities have experienced a strong rally over the past year.1 Is this…
Andreyuu We previously covered Sea Limited (NYSE:SE) in December 2023, discussing the latest developments on the e-commerce scene in Indonesia, with SE seemingly left out as TikTok chose to partner with GoTo, with the new monopolistic Super App presence likely to trigger headwinds in the former’s near-term prospects. While we maintained our previous confidence that…
Today, more than 25 leading Bitcoin organizations joined forces under the banner of the ‘Bitcoin Deserves an Emoji’ movement. Spearheaded by Nexo, this global initiative is dedicated to securing an official Bitcoin emoji for digital keyboards everywhere, signaling a monumental step toward recognizing Bitcoin’s multifaceted role in society as a revolutionary technology, a form of…
isak55/iStock via Getty Images Shares of small companies and value stocks have had a tough time keeping up with the broad market in recent years, and the headwind for these risk factors is still blowing so far in 2024. By contrast, the momentum factor (MTUM) has surged nearly 17% so far this year, dramatically outperforming…
hernan4429 Co-produced by Austin Rogers for High Yield Landlord. The real estate sector has taken a beating over the last few years. The problems of office real estate are well-known today, but there are pockets of distress building in other sectors as well. There are plenty of negative headlines about commercial real estate right now,…
24K-Production Investors in embattled specialized hospital REIT operator Medical Properties Trust, Inc. (NYSE:MPW) were likely stunned the recent release of MPW’s fourth-quarter earnings results didn’t lead to a further downfall in its stock. As a result, the dip-buying momentum following its January selloff seems to have continued in earnest as investors consider whether the “bad…
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WLDavies/iStock via Getty Images JBG SMITH Properties (NYSE:JBGS) have rallied sharply since my initial Buy recommendation JBG SMITH: Time To Buy This Beaten Down REIT was published on November 11, 2023. Since then, JBGS has delivered a total return of ~29%. The S&P 500 has delivered a total return of ~13% over the same time…
Tom Williams/CQ-Roll Call, Inc. via Getty Images Nvidia Corporation (NYSE:NVDA) reports earnings on 2/21/2024 during or after market hours. Consensus analyst estimates are for $4.56 in normalized EPS and $4.19 in GAAP EPS. Analysts expect revenue to come in at $20.33 billion. The stock has been roaring to the point that it is all everyone…
Yuichiro Chino/Moment via Getty Images Last December, I wrote an article in which I stated that the 30-month bear market in biopharmaceutical stocks had ended and that a rally had begun. I discussed the standard underpinnings of the rally, namely attractive valuations accompanying several acquisitions at generous premiums. The rally in the sector persisted until…
Monty Rakusen By Andrew Prochnow Since hitting a low point in mid-December, crude oil prices have surged by approximately 15% over the past eight weeks, reaching a recent peak of around $78 per barrel. Throughout the last quarter of 2023, oil prices faced downward pressure amid worsening outlooks for the global economy. However, the recent…
PM Images Dave’s (NASDAQ:DAVE) rally from 52-week lows has been nothing short of dramatic, with the neobank moving up a remarkable 360%. This blistering rally came after a 52-week low reached in the aftermath of a 1-for-32 reverse split at the start of its fiscal 2023 that was forced by a roughly 96% collapse from…
Ong-ad Nuseewor How should investors be thinking about the recent run higher in stocks? MoneyTalk’s Greg Bonnell discusses with Brad Simpson, Chief Wealth Strategist with TD Wealth. Transcript Greg Bonnell: Despite plenty of risks out there, the markets have climbed into record territory. But can that run continue? Joining us now to discuss is Brad…
da-kuk Russell 2000 Growth Stocks May Outperform the S&P 500 In the Growth sector of the Russell 2000, there is a significant composition of information technology-related stocks. This sector has benefited from favorable technical momentum throughout 2023 despite the historical momentum, maintaining satisfactory fundamental values. This follows current consensus indications, which could be confirmed by…
Nerthuz By Andrew Prochnow Numerous investors and traders track the CBOE Volatility Index (VIX) to gauge market sentiment in the U.S. stock market. Nonetheless, it could be contended that the U.S. Dollar Index (DXY) holds comparable significance in assessing investor sentiment within the U.S. financial markets. The dollar, after all, is the world’s top reserve…
Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. The rally in US chip stocks that has seen Nvidia and AMD more than double in value over the past year is under pressure after warnings that the artificial intelligence boom is masking a broader…
Andrii Dodonov CLOs rallied strongly in December, ending 2023 with a 10.54% return. The current backdrop suggests CLOs are well positioned to start 2024. The VanEck CLO ETF (CLOI) returned 2.06% in the fourth quarter, and 9.37% for the year, outperforming investment-grade bonds and AAA-rated CLOs, but underperforming the broad CLO market due to its…
audioundwerbung Note: I have covered Plug Power Inc. (PLUG) previously, so investors should view this as an update to my earlier articles on the company. Following the company’s annual business update call on Tuesday, beaten-down shares of struggling fuel cell systems, electrolyzer solutions, and green hydrogen provider Plug Power Inc. or “Plug Power” staged a…
Love Employee Impatience can cause wise people to do foolish things.”― Janette Oke. Shares of bispecific cancer therapy concern Merus N.V. (NASDAQ:MRUS) shook off negative safety news regarding its MCLA-129 program, as the focus turned to two other promising oncology candidates. Petosemtamab for head and neck cancer and zenocutuzumab for NGR1+ cancers both demonstrated solid…
Peter Dazeley/The Image Bank via Getty Images Eltek Ltd. (NASDAQ:ELTK) is an Israel-based technology company that specializes in designing and producing PCBs (Printed Circuit Boards) for its customers that come in a variety of industries. The company has been around since the 1970s and it had many ups and downs, but lately it started to…
VioletaStoimenova/E+ via Getty Images MoneyLion (NYSE:ML) has turned adjusted EBITDA and free cash flow positive and looks poised to continue its recent operational moment. Company Profile ML is a financial product and services company for both consumers and enterprises. On the consumer side, the company offers a suite of services through its free-to-download app. Among…
richcano Investment Thesis The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) has had a tumultuous few years, plunging 50% in less than two years from $160 to $80 before rebounding to $96.52. And while the recent rally has already given investors some decent gains, we believe there is still plenty of upside, particularly relative to…
_ultraforma_ The valuation bifurcation in Citigroup (NYSE:C) shares has finally reached peak pessimism as C recovered nearly 45% through its January 2024 highs from its late October 2023 bottom. As a result, it has also normalized C’s forward adjusted earnings multiple of 10x with its 10Y average of 9.5x. Therefore, I believe it’s apt for…
JHVEPhoto Pfizer Inc. (NYSE:PFE) stock has continued to reel from the exhaustion of COVID dollars. Specifically, the 2023 downturn has been primarily dragged by a faster-than-expected normalization of Comirnaty vaccine and Paxlovid COVID treatment uptakes. In addition to the $5.6 billion write-off on Paxlovid/Comirnaty inventory in Q3, management has also provided a weaker-than-expected guidance for…
deepblue4you There was no Santa Claus rally in the last week of 2023 and the first two trading days of 2024 – which mark the technical definition of a Santa Claus rally. The last trading day of 2023 was down and so was the first trading week of 2024. Before you read too much into…
PeopleImages/iStock via Getty Images The iShares Morningstar Small-Cap Growth ETF (NYSEARCA:ISCG) represents a commonality that we see across markets, which is that small-cap and mid-cap haven’t participated in the general rallies of the US market and market segment indices. We believe that on account of more incremental benefits to small-cap on the Fed pivot, this…
titoOnz/iStock via Getty Images As the shipping channel in the Red Sea has the been upset by Houthi militants, shipping stocks like ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) have soared. The stocks were crushed in 2023 due to weak container shipping demand and high new vessel supply hitting the market. My investment thesis is now…
JHVEPhoto I covered ServiceNow (NYSE:NOW) last January, concluding that the stock should reach $150B market cap over the next handful of years. Less than one year later, the stock is just about there. This is yet another case study of the irrationality of the market herd. In July of 2022, sentiment on ServiceNow was extremely…
JHVEPhoto/iStock Editorial via Getty Images DaVita (NYSE:DVA) has rallied over 40% after cratering on Ozempic related fears. Additional commentary that GLP-1s could erode DaVita’s business has been nonexistent since, proving once again Mr. Market can be quite an irrational fellow. Nonetheless, the future is highly uncertain. Investors must be prepared for a wide variety of…
franckreporter It was a December to remember for the world of equities. The S&P 500 (SPY) rose more than 4% during the final month of 2023 while small caps (IWM) shone once again, rallying 13% following a 9% November gain. The Magnificent Seven tech-related stocks performed fine, helping the Nasdaq 100 (QQQ) to its best…
Oselote The bullish breakout in the industrial metals complex suggests that silver should mount a long-awaited recovery, and I remain bullish on the iShares Silver Trust ETF (NYSEARCA:SLV). Silver and the SLV have been locked in a large consolidation pattern for the past three years, and a bullish breakout seems like a matter of time….
Bitcoin mining inherently involves high energy costs due to the operation of supercomputers. The world’s largest cryptocurrency Bitcoin (BTC) made substantial gains surging by 160% this year in 2023. The rally in Bitcoin and the broader crypto market has also helped some of the US-listed crypto companies recover from the wounds of the 2022 crypto…
franckreporter Stock markets rallied due to the Federal Reserve’s steady interest rates, with major U.S. indices rising amidst a new correlation between stocks and U.S. Treasury bonds. Domestic stock markets experienced a significant rally during the recent period between Index selection dates (November 9, 2023, to December 21, 2023, the “Period”), largely driven by the…
FrankvandenBergh Stockcharts Short-Term Pain (maybe)? Yesterday’s sell-off in equity markets coincided with another weak Treasury bond auction. That minor catalyst was compounded by the low liquidity of holiday markets. Friday’s Core PCE inflation numbers should put the final nail in the coffin for any Fed Cut doubters. I doubt you will see any more officials…