Even if Yellen did seem too overly optimistic about the state of the economy when she decided to raise interest rates, I still believe that whatever turbulence we are seeing now in the stock markets are not as a result solely of that rate hike. China was and still is extremely volatile, oil continues to spiral downwards, and the US dollar is stronger than almost any other currency which makes US exports expensive and pressures the US economy in a myriad of ways.
As a stock choice, stocks in the oil sector like BP often have decent annual yields. BP's yield is a healthy 7.78% but with oil seeing an almost unending spiral downwards, this is also a risky stock to be in. BP is now down around 25% in the past year. Sooner or later, OPEC will have to intervene and cut supplies to prop up prices because if they don't Saudi Arabia will go bust. Could this be a good time time to bottom fish?
Its questionable whether the Fed's raising rates by 0.25% has had such a drastic effect on the economy. Other major factors combine together to make a recession. The overly strong dollar which hurts exports, the decline of oil, and the fall of China's economy and the knock on effect globally are likely more likely to blame. You never know, if things get bad, maybe Yellen will decide to reverse her decision and lower rates again. Stranger things have been known to happen!
Disney has been touted as a safe investment for so long, many of us have come to believe that the stock cannot fall. A downgrade isn't the end of the world but Disney can't afford to rest on its laurels. Its success with the latest Star Wars movie is not enough to maintain the momentum in the long run. Losing 7% of its ESPN subscribers is a considerable blow and means that Disney needs to reorganize itself to remain competitive in this viewing sector. In terms of analyst opinions this month, 5 are a strong buy, 13 are a buy, 15 a hold, 0 are a underperform, and a 1 sell. Disney is down 21% in the past 6 months. Are layoffs in the cards for Disney?
Some good picks here, I am not sure I share the same opinion about 2016 being a good year considering what is happening to oil prices, China's decline, and global industrial slowdown. Any thoughts on telecommunications and tobacco as dividend picks? These 2 areas famous for high dividends. Examples include: Vodaphone (5.3%), AT & T (5.7%), Altria Group (3.8%), and Philip Morris (4.7%)
Now that Puerto Rico is basically defaulting on millions of dollars of US Govt bonds, it will be interesting to see if the US govt will treat it like it treated the big banks in 2008. Will it bail out Puerto Rico, and if it doesn't can it be allowed to fail financially without having a knock on effect to other parts of the US? What would happen if California defaulted on its debt?
This is tremendous news for hundreds of millions of potential customers but even better news for Netflix itself who will surely see its revenues increase multiple times over in the future with its drastically magnified global customer base. Some technical issues remain including how to efficiently provide adequate language support for such a large and diverse customer base but I have faith in Netflix that the stock and the company will continue to grow. The stock jumped over 9% in trading yesterday and climbed to a new high of over $122 today before dropping back down in today's Dow bloodbath and Chinese market meltdown frenzy. Out of 44 major analysts opinions this month 9 are a strong buy, 15 are a buy, 16 are a hold, 2 are undeperform, and 2 are a sell.
Blackberry would be the major market upset if it is able to jump back in to the cellphone market in 2016. I believe it is the under-loved underdog that many people would love to see do well again. It lost a tremendous market share to Apple by not remaining competitive but I do see the potential if it gets it right. In terms of analyst opinions, the jury is out and not convinced that the stock will bounce back. Out of 29 analysts this month, the breakdown is as follows: Strong buy: 2, Buy: 1, Hold: 15, Underperform: 11, Sell: 0
I think the stock is stagnant because the company relies too much on too few products, I feel it is running out of steam vs its competitors like Samsung and the Chinese made phones like Huawei. Maybe its time for Apple to start getting into the mergers and acquisitions business and putting some of its vast cofffers of cash to good use. If on Jan 27 when earnings numbers come out their iphone/ipad sales are down, what else is left? Maybe Its time to diversify!
What's that I hear? Past performance does not guarantee future success? Amazon was down almost 2 % at close on Thursday Dec 31 and pre-market today (Jan 4) is down around another 1.5%. Amazon is currently priced at around 675 but has a long way to fall back down to its 52 week low of 285. I would say that the stock is getting sticky at these levels and would suggest an entry point a few days prior to the next earnings report because Amazon has a habit of nice earnings surprises.
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The Ghost Of The Feds Past: Rate Hikes, Rate Cuts, And The Great Collapse
Even if Yellen did seem too overly optimistic about the state of the economy when she decided to raise interest rates, I still believe that whatever turbulence we are seeing now in the stock markets are not as a result solely of that rate hike. China was and still is extremely volatile, oil continues to spiral downwards, and the US dollar is stronger than almost any other currency which makes US exports expensive and pressures the US economy in a myriad of ways.
Puzzle, Metrics And Portfolio Update
As a stock choice, stocks in the oil sector like BP often have decent annual yields. BP's yield is a healthy 7.78% but with oil seeing an almost unending spiral downwards, this is also a risky stock to be in. BP is now down around 25% in the past year. Sooner or later, OPEC will have to intervene and cut supplies to prop up prices because if they don't Saudi Arabia will go bust. Could this be a good time time to bottom fish?
LIBOR Destroyed Subprime. But The Fed Deepened The Great Recession
Its questionable whether the Fed's raising rates by 0.25% has had such a drastic effect on the economy. Other major factors combine together to make a recession. The overly strong dollar which hurts exports, the decline of oil, and the fall of China's economy and the knock on effect globally are likely more likely to blame. You never know, if things get bad, maybe Yellen will decide to reverse her decision and lower rates again. Stranger things have been known to happen!
ESPN Still Causing Trouble For Disney
Disney has been touted as a safe investment for so long, many of us have come to believe that the stock cannot fall. A downgrade isn't the end of the world but Disney can't afford to rest on its laurels. Its success with the latest Star Wars movie is not enough to maintain the momentum in the long run. Losing 7% of its ESPN subscribers is a considerable blow and means that Disney needs to reorganize itself to remain competitive in this viewing sector. In terms of analyst opinions this month, 5 are a strong buy, 13 are a buy, 15 a hold, 0 are a underperform, and a 1 sell. Disney is down 21% in the past 6 months. Are layoffs in the cards for Disney?
Here’s My Top 4 US Dividend Growth Stocks For 2016
Some good picks here, I am not sure I share the same opinion about 2016 being a good year considering what is happening to oil prices, China's decline, and global industrial slowdown. Any thoughts on telecommunications and tobacco as dividend picks? These 2 areas famous for high dividends. Examples include: Vodaphone (5.3%), AT & T (5.7%), Altria Group (3.8%), and Philip Morris (4.7%)
Half Of Puerto Rico's General Fund Debt Is Either Optional Pay, Or Invalid COFINA Bonds- Bankruptcy Is Not A Solution
Now that Puerto Rico is basically defaulting on millions of dollars of US Govt bonds, it will be interesting to see if the US govt will treat it like it treated the big banks in 2008. Will it bail out Puerto Rico, and if it doesn't can it be allowed to fail financially without having a knock on effect to other parts of the US? What would happen if California defaulted on its debt?
Netflix, Inc. Enters 130 New Countries But Not China
This is tremendous news for hundreds of millions of potential customers but even better news for Netflix itself who will surely see its revenues increase multiple times over in the future with its drastically magnified global customer base. Some technical issues remain including how to efficiently provide adequate language support for such a large and diverse customer base but I have faith in Netflix that the stock and the company will continue to grow. The stock jumped over 9% in trading yesterday and climbed to a new high of over $122 today before dropping back down in today's Dow bloodbath and Chinese market meltdown frenzy. Out of 44 major analysts opinions this month 9 are a strong buy, 15 are a buy, 16 are a hold, 2 are undeperform, and 2 are a sell.
BlackBerry Is Sizzling
Blackberry would be the major market upset if it is able to jump back in to the cellphone market in 2016. I believe it is the under-loved underdog that many people would love to see do well again. It lost a tremendous market share to Apple by not remaining competitive but I do see the potential if it gets it right. In terms of analyst opinions, the jury is out and not convinced that the stock will bounce back. Out of 29 analysts this month, the breakdown is as follows: Strong buy: 2, Buy: 1, Hold: 15, Underperform: 11, Sell: 0
Apple Falls In 2015, But Will 2016 Bring A Reversal?
I think the stock is stagnant because the company relies too much on too few products, I feel it is running out of steam vs its competitors like Samsung and the Chinese made phones like Huawei. Maybe its time for Apple to start getting into the mergers and acquisitions business and putting some of its vast cofffers of cash to good use. If on Jan 27 when earnings numbers come out their iphone/ipad sales are down, what else is left? Maybe Its time to diversify!
Can Amazon Do It Again In 2016?
What's that I hear? Past performance does not guarantee future success? Amazon was down almost 2 % at close on Thursday Dec 31 and pre-market today (Jan 4) is down around another 1.5%. Amazon is currently priced at around 675 but has a long way to fall back down to its 52 week low of 285. I would say that the stock is getting sticky at these levels and would suggest an entry point a few days prior to the next earnings report because Amazon has a habit of nice earnings surprises.