The Dwindling Supply of Stocks and Why It’s Profitable for Your Portfolio
The S&P 500 closed at an all-time high last Friday. The new high does not come with the euphoria we saw in January. For example, the Investor’s Intelligence survey is reporting a 3:1 bull-bear spread, far short of the 5:1 bull-bear spread in January. The AAII...
There’s More Life Left in This Bull Market
Are we due for a post-election pop? If history repeats, 2019 may be a very profitable year. Although stock prices typically drop about 3% in the six months prior to a (first term) mid-term election going back to WWII, prices rise on average 19% in the 12 months after...
Tariff Tantrum: Why China Can’t Afford a Trade War with the U.S.
The rate of earnings growth likely peaked in Q1 (+25%) with growth for all of 2018 forecast at 19.8%. The 2019 forecast will see a deceleration to a still healthy 10.0% (resulting from operating earnings, not the federal tax overhaul – Source: FactSet). In...
Show Us the Money
Although we were disappointed stock prices didn’t react to spectacular firstquarter earnings (+25%), we remain very interested in what corporations are doing with the extra cash and how this might eventually boost share prices. Share repurchases. First quarter...