What We Need To Happen For The Fed To Raise Rates

What We Need To Happen For The Fed To Raise Rates

Article SummaryThe Fed has made conflicting statements regarding the upcoming rate hike which has added volatility to the markets.Inflation and jobs are the key figures that need to improve before we see a rate increase.A delay in the Fed decision to raise rates hasn’t been overall negative for the markets and could actually contribute to more growth before the end of the year.It’s been roughly one year since the Fed ended its historic quantitative easing program and gave control of the economy back over to the free market. With those memories of a Fed driven market still fresh in investors’ minds, it seems that the Fed is once again in control of this market’s destiny. Markets are quickly retreating to a “wait and see” trading mentality when it comes to Yellen, which is contributing to a rise in uncertainty and volatility in the broader averages… Read full article at Seeking...
Understanding The Difference Between A Correction And The Start Of A Recession

Understanding The Difference Between A Correction And The Start Of A Recession

Article SummaryStocks have fallen about 10% off their highs but haven’t yet hit the 20% decline marker that defines a recession.Economic data are mixed but no indicator is clearly flashing a recession signal yet.The yield curve is one of the most reliable recession indicators. With the Fed rate hike decision looming, the markets await how that might impact long and short term interest.Wall Street has been behaving erratically over the past few weeks ever since the Chinese contagion finally reached U.S. shores. As of the close on September 8, 2015, the S&P 500 has shed nearly 110 points, a 5.29% loss, in the past month even after recovering from a drop of nearly 230 points earlier. Meanwhile volatility has soared more than 85% over the same time frame and is currently holding steady around 25… Read full article at Seeking...
The Stealth Bear Market That Could Take Markets By Surprise

The Stealth Bear Market That Could Take Markets By Surprise

Article SummaryChina’s stock market correction might only be the first sign that a global recession is coming.Stock valuations are 28% above historical averages while economic growth is stagnating which could trigger a major correction.A Fed rate hike would be a disaster for stocks and another round of QE could be in order.Margin levels are at dangerous new highs and broad based buying could mean an unsustainable atmosphere without new cash flow to support it.Investors have been on a bit of a rollercoaster ride the past several days as the markets dipped down and back up by hundreds of points. Volatility rocketed up with the VIX ending Thursday the 20th at 19.14 and reaching a staggering high of 53.29 intraday on Monday the 24th – an increase of more than 178% in less than two trading days… Read full article at Seeking...
Great Expectations And Truth In Earnings

Great Expectations And Truth In Earnings

Article Summary72% of companies that have reported earnings issued negative guidance, which is higher than the 5-year average.Revenues have fallen for two back-to-back quarters, indicating a bearish signal for US stocks.The Fed is propping up stocks right now based on speculation of a rate hike that is looking more and more unlikely next month.The broader indices continue to tread water at or near all-time highs despite unconvincing mixed economic data and crises in both Europe and China. While the Greek debt issue seems to have come back under control, the collapse in the Chinese stock market has yet to bleed over into domestic markets. Yet the threat of a possible loss has not seemed to faze stocks… Read full article at Seeking...
Arbitrage Opportunities Abound

Arbitrage Opportunities Abound

Article SummaryIncreased volatility in the global marketplace has created some interesting arbitrage opportunities.Two mergers present an opportunity for investors looking to speculate on mispriced equity valuations.Pair trades using ETFs that follow China and gold are highly correlated and could be a way to diversify against speculating on market direction.Financial markets around the world have been roiling over the past few weeks. The Greek debt crisis, Chinese stock market crash, and plunging oil prices have triggered a wave of selling and have reintroduced volatility back into the markets. Read full article at Seeking...
Is Space The Next Big Investment Venture?

Is Space The Next Big Investment Venture?

• Private investment into the space industry is expected to reach $10 billion this year with around 800 companies currently involved with space operations in some form.• SpaceX’s reusable rocket technology could lower the cost of launches from $70 million to under $10 million.• The natural resources that can be found in asteroids could prompt a space mining boom within the decade or so.Beyond the standard business cycle of expansionary and recessionary phases where certain stock sectors outperform or underperform more than others, a larger cycle exists. It’s a much longer cycle that can take time to develop but once it gains enough momentum, could last for decades.In the 19th century, railroads were the booming industry. Beginning in the mid-1800’s, the advancement of transportation led to a nation interconnected for the first time in a way that fundamentally changed how businesses operated.As the economy expanded and technology forged onward, it gave way to the oil boom which lasted well into the 20th century. Some of the companies founded back then are still around today. Names like Exxon Mobil, ConocoPhillips, and Chevron all stemmed from the early days of the oil rush. The growing production demand from factory output and economic growth led to the creation of the wealthiest man in U.S. history – the oil baron John D. Rockefeller. In today’s dollars, he would have been worth more than $330 billion.The advent of the computer gave birth to a new era – the digital age. The computer transformed businesses overnight and allowed transactions to take place instantly even over long distances. Companies like Apple, Intel and Microsoft were founded...