What Effect A Yield Surge Will Have On Stocks

What Effect A Yield Surge Will Have On Stocks

Article SummaryAn increase in yields might bring short term volatility, but could also be a good sign long term.History shows that a steady increase in interest rates won’t adversely impact yields.The bond sell-off in Europe is helping to drive yields higher in the US but could be tempered by stronger foreign currencies.This year, investors will be faced with something that they haven’t seen in a long time – a Fed Funds interest rate hike. Last year saw the tapering and eventual completion of the historic quantitative easing program designed to inject liquidity into financial markets and restart the economy. The normally dovish Fed made a statement recently that seems to confirm that there will be a rate hike in 2015… Read full article at Seeking...
Disruptive Companies To Watch Out For

Disruptive Companies To Watch Out For

Article SummaryDisruptive technologies in 3-D printing and the “Internet of Things” is a breeding ground for high growth disruptive companies.The 3-D printing market is expected to increase fivefold by 2020 from $4 billion to $21 billion.Growth in the IoT industry is estimated to climb to $7.1 trillion by 2020.The biggest impacts on the world by corporations don’t come by being the same – it’s what stands out that makes a difference. Disruptive innovation is a powerful force that almost everyone strives for but few succeed at. When the opportunity arises, companies face a dilemma – keep growing in the current market and strive to make a product or service better or embrace a new way of doing things that will open up an entirely new and undiscovered market… Read full article at Seeking...
3 Key Drivers For Economic Growth

3 Key Drivers For Economic Growth

Article SummaryOil at $60 per barrel will stem worker layoffs and revive the energy sector while stimulating further economic growth.Corporate earnings are improving with more upward revisions and upside EPS surprises, evidence that the weakness in the first quarter was only temporary.April’s jobs report was a positive sign that the economy is still healthy while additions in the construction industry shows strength in consumer demand.U.S. financial markets have been touch-and-go this year and mixed economic data points to a murky outlook for growth. The S&P 500 is up just 1.93% year-to-date while the NASDAQ has posted a far more impressive 5.19% gain. The yield on the 10-year Treasury note has fluctuated quite a bit from a low of 1.65% to a high of 2.29% – its current yield. However, volatility as measured by the VIX has dropped over 27% – currently hovering below 14… Read full article at Seeking...
The Dollar Could Fall, But That’s Not A Bad Thing

The Dollar Could Fall, But That’s Not A Bad Thing

Article SummaryThe U.S. dollar faces many headwinds that could force it downward over the next several months.A falling dollar could benefit the U.S. manufacturing sector and stimulate growth.Large cap companies in the S&P 500 derive around 40% of their earnings from international sales and a decline in the dollar should positively impact 2015 earnings.The almighty dollar has been the war cry of the U.S economy for more than six months and the stock market has risen along with it. Take a look at the correlation between the U.S. Dollar Index and the S&P 500 (SPX) since late October of last year… Read full article at Seeking...
How To Play The Second Quarter

How To Play The Second Quarter

Article SummaryThe 2nd quarter is on track for growth of 3.5% as opposed to the 1st quarter’s anemic flat performance.The Fed will drive market performance as the interest rate hike draws near.Lowered guidance during the 1st quarter could become a tailwind during the 2nd quarter as companies stand to surprise on the upside.The first quarter of 2015 officially ended March 31st and the results are disappointingly lackluster. Data is often revised backwards to adjust for new information, but it would take a huge revision to change the outlook most economists have for the 1st quarter.GDP growth is expected be between zero and 2% with many firms predicting growth of less than 1%. The Federal Reserve Bank of Atlanta lowered its estimate from 0.3% to 0.2% following a weaker-than-expected report on business spending and investment… Read full article at Seeking...