By: Katy Byron | Producer, Street Signs
With weeks until the next potential crisis in Washington, how can you ‘D.C.-proof’ your portfolio?
Big money managers Susan Fulton, president and founder of FBB Capital Partners, and Michael Farr, president of Farr, Miller & Washington and a CNBC contributor, have picked out the top three stocks they feel will weather the next, or any, Washington gridlock storm.
Fulton, whose firm has $680 million in assets under management, likes stocks that “have the ability to grow their cash flow over time and pay back their shareholders through hefty dividend payments.” In general, she added, she also favors businesses that provide a “niche service or product and whose growth over time is non-dependent on whether or not the government is open or shut.”
Her top three stock picks that meet these parameters are Bristol-Myers Squibb, Yum! Brands and Emerson Electric. Fulton, her family and her firm do not own shares of these companies.
Regarding Bristol-Myers Squibb, she said the biopharmaceutical giant is a way to play on the aging of baby boomers and as a play on Obamacare. The company pays an annual dividend of $1.40 per share with the dividend yield of 2.83 percent, far more than S&P 500′s current dividend yield of 1.97 percent. As of midday Friday, shares are up 7 percent month-to-date, and have risen more than 50 percent this year.
She said Yum Brands, which owns KFC, Taco Bell and Pizza Hut, is poised for accelerated growth because its recent problems in China are largely behind the company.
Yum Brands pays a $1.48 dividend on shares and it has grown its dividend payments at a double-digit pace over the past five years. Fulton’s firm believes that trend will continue. Shares are down about 7 percent in October as of midday Friday, and up less than 1 percent year to date.
Fulton’s third pick, Emerson Electric, has a market cap of $46 billion. She said Emerson Electric’s dividend ($1.64) has increased by 7.5 percent per year over the past five years. Emerson Electric designs and manufactures electronic and electrical equipment, software and systems. The stock is up 32 percent over the past year, handily beating the S&P 500 which is up about 19 percent over that period.
Farr likes Chevron, Rockwell Collins, a communications and aviation electronics company, and Stryker a global medical device maker. His firm has over $900 million in assets under management. He and his family own shares of these stocks but his firm does not.
Farr said Chevron only gets 5 percent of its oil from the Middle East, allowing it to make money when oil prices rise but without the risk of losing too much production when there are conflicts in the Middle East. He believes Chevron deserves an “Exxon Mobil-like premium given the strength of its operation and improving returns on capital employed.” He also said the stock is a little cheaper than its peers, trading at 10 times the calendar year 2014 consensus estimate.
Rockwell Collins has its business split between government and commercial customers so it can lean on its private sector investments when there are problems with the government. Shares have posted a 12 percent annual earnings-per-share growth over the past year, and the 1.8 percent dividend yield also makes it an attractive stock, Farr said. Its shares have nearly doubled in the past five years and are up more than 1 percent this month. The company’s trailing 12-month price-to-earnings ratio is approximately 16.
Lastly, Stryker, which makes implantable devices for things like hips, knees and spines, has a solid record generating above average and less volatile sales and earnings growth, Farr said. Stryker shares are up 33 percent this year and 8 percent this month. “An improving global economy, an aging population, increased penetration into faster growing emerging markets, continued efforts to improve efficiency, targeted acquisitions and intelligent capital allocation should help Stryker hit this earnings target,” Farr said.
mihail @ November 8, 2013
The fight over renewing the nation’s farm bill has centered on cuts to the $80 billion-a-year food stamp program. But there could be unintended consequences if no agreement is reached: higher milk prices.
Members of the House and Senate are scheduled to begin long-awaited negotiations on the five-year, roughly $500 billion bill this week. If they don’t finish it, dairy supports could expire at the end of the year and send the price of a gallon of milk skyward.
There could be political ramifications, too. The House and Senate are far apart on the sensitive issue of how much money to cut from food stamps, and lawmakers are hoping to resolve that debate before election-year politics set in.
Minnesota Sen. Amy Klobuchar, a Democrat who is one of the negotiators on the bill, says the legislation could also be a rare opportunity for the two chambers to show they can get along.
(Read more: As holidays near, food stamp recipients face cut
“In the middle of the chaos of the last month comes opportunity,” Klobuchar says of the farm legislation. “This will really be a test of the House of whether they are willing to work with us.”
The farm bill, which sets policy for farm subsidies, the food stamps and other rural development projects, has moved slowly through Congress in the last two years as lawmakers have focused on higher-profile priorities, like budget negotiations, health care and immigration legislation.
But farm-state lawmakers are appealing to their colleagues to harken back to more bipartisan times and do something Congress hasn’t done very much lately — pass a major piece of legislation.
Even President Barack Obama, who has been largely silent on the farm bill as it has wound through Congress, said as the government reopened earlier this month that the farm bill “would make a huge difference in our economy right now.”
(Read more: Many fast-food workers living in poverty: Report
“What are we waiting for?” Obama said. “Let’s get this done.”
The main challenge in getting the bill done will be the differences on food stamps, officially called the Supplemental Nutrition Assistance Program, or SNAP. The House has passed legislation to cut around $4 billion annually, or around 5 percent, including changes in eligibility and work requirements. The Senate has proposed a cut of around a tenth of that amount, and Senate Democrats and President Obama have strongly opposed any major changes to the program.
The cost of SNAP has more than doubled over the last five years as the economy struggled, and Republicans say it should be more focused on the neediest people. Democrats say it is working as it should, providing food to those in need when times are tough.
“I think there are very different world views clashing on food stamps and those are always more difficult to resolve,” says Roger Johnson, president of the National Farmers Union.
(Watch more: Online breast milk may put babies at risk
Johnson says coming together on the farm issues, while there are differences, will be easier because the mostly farm-state lawmakers negotiating the bill have common goals.
Passing a farm bill could help farm-state lawmakers in both parties in next year’s elections, though some Republicans are wary of debating domestic food aid in campaign season. Republican House leaders put the bill on hold during the 2012 election year.
One way to pass the bill quickly could be to wrap it into budget negotiations that will be going on at the same time. The farm bill is expected to save tens of billions of dollars through food stamp cuts and eliminating some subsidy programs, and “that savings has become more key as we go into budget negotiations,” Klobuchar said.
If that doesn’t work, lawmakers could extend current law, as they did at the end of last year when the dairy threat loomed. But Senate Majority Leader Harry Reid, D-Nev., has said he wants to finish the bill and won’t support another extension.
One of the reasons the bill’s progress has moved slowly is that most of farm country is enjoying a good agricultural economy, and farmers have not clamored for changes in policy. But with deadlines looming, many say they need more government certainty to make planting decisions. Most of the current law expired in September, though effects largely won’t be felt until next year when the dairy supports expire.
If Congress allows those supports to expire, 1930s and 1940s-era farm law would kick in, as much as quadrupling the price that the government pays to purchase dairy products. If the government paid that high a price, many processors would sell to the government instead of commercial markets, decreasing commercial supply and thus also raising prices for shoppers at grocery stores.
Some farmers are feeling the effects of the expired bill already. An early blizzard in South Dakota earlier this month killed thousands of cattle, and a federal disaster program that could have helped cover losses has expired.
Rep. Kristi Noem, R-S.D., also a negotiator on the conference committee, says her constituents aren’t concerned with the differences between the House and Senate versions of the bill, but they just want to see a bill pass.
“Maybe the biggest question is can we put together a bill that can pass on the House and Senate floor,” she said.
mihail @ October 29, 2013
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There’s always a key number on which the market is based. Sometimes it’s an interest rate, as in Europe today. Sometimes it’s another number, like America’s unemployment rate. In the past it’s been housing starts; it’s been inflation; it’s been GDP. For 2012, the key number is the oil price.
It’s the oil price because decoupling growth from oil prices is the key to real prosperity. Throughout the last several years, growth and oil have grown closer together. It’s at the point where now a jump in the Dow Jones industrial average is nearly always matched by a rise in the price of West Texas Intermediate, and vice versa.
Most of what has been happening in the U.S. economy, below the surface, is aimed at this decoupling.
Before you jump on me for another rant against big oil, let me state first that what U.S. oil and gas companies are doing is part of the equation, at least in the near term. Fracking has already decoupled natural gas prices from growth. For the last two years, we’ve had real growth in the economy but falling natural gas prices. Oil can be the same.
Drillers have now had several years to accommodate themselves to spot prices of near $100/barrel. This has given them time to invest enough capital to produce large supplies, profitably, at that price. And once a well goes into production, the nominal cost of producing an additional barrel is usually quite low.
But the more important work is taking place on the demand side. The technologies of efficiency are growing, and have a ready market. Every barrel saved in industrial production, every KwH a commercial building owner can save, every gallon of gas a consumer doesn’t use while remaining productive at work, that’s money in the pocket. It’s an investment that pays for itself, whether you’re replacing bulbs with LEDs in your Christmas lights, buying a higher-mileage car, or insulating a building.
Renewable energy is what will maintain the gains. Yes, it’s small now, in the general mix. But it’s increasing, thanks in part to today’s prices, and in part to advancing technology. Even if solar installation doesn’t grow in 2012 from 2011, the supply of solar energy in the market will grow dramatically, because the base is low. The same is true for wind energy, for chemicals and other feed stocks produced from biomass, and for geothermal energy.
Over time it’s this harvest of the abundance all around us that will not only keep oil prices reasonable, but cause them to roll over in time. For 2012 let’s focus on WTI, the spot price for oil in our own country, less in relation to European “Brent” prices than in absolute terms. Keeping that price down as economic growth accelerates, as employment grows, is the key to nearly all other market prices for 2012.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
mihail @ December 22, 2011
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By Robert Powell
It’s one thing to be a pessimist. But it’s a whole ‘nother thing to make money in this market despite that outlook. Yet that’s exactly what three managers are doing these days, at least with some of their funds.
Jeremy Grantham, the chief investment strategist at GMO; Rob Arnott, the founder and chairman of Research Associates and manager of PIMCO’s All Asset All Authority; and the team at Sequoia are not the life of the party these days.
In fact, after reading their respective commentaries, you’re more likely to call your physician for a prescription for an antidepressant than to call your stockbroker with an order to buy something in this market.
Consider, for instance, just some of the pearls of despair in Grantham’s latest missive.
The euro zone, for instance, is a “terrifying situation” for which the only appropriate response is “surely to be more cautious that usual.” And, “the U.S., and to some extent the world, will not easily recover from the current level of debt overhang, the loss of perceived asset values, and the gross financial incompetence on a scale hitherto undreamed of.”
And then there’s this one: “…the U.S. in particular has rapidly acquired relative deficiencies over the last 20 years that will hamper the effective functioning and growth of its economy.” And this: “I despair that this country and its government have failed to take at all seriously the most important and the most dangerous issues: depleting resources, development of a comprehensive energy policy, and, yes, global warming.”
It goes on.
Despite that outlook, at least one of the funds in GMO’s family is doing quite well, thank you very much. The GMO Quality IV GQEFX +0.42% is up more than 10% year-to-date, while the Standard & Poor’s 500 SPX +0.32% stock index is down close to 1%.
How could that be possible, given Grantham’s outlook?
According to one analyst, it’s a matter of investing in the right stocks, mainly high-quality mega-cap companies with a history of paying and increasing dividends, at the right time. “Investors are flocking to these sort of companies because of the market volatility,” said Todd Rosenbluth, a mutual fund analyst at S&P Capital IQ Mutual Fund Reports.
And Grantham said this of GMO Quality’s performance: “We would normally count on winning in this strategy in a big down year, but in a nearly flat year this difference is a testimonial to how risk-averse investors have been at the U.S. stock level.”
What’s even better to note is that Grantham still considers U.S. high quality stocks to be relatively cheap.
Others, meanwhile, have a slightly different take on why Grantham, Arnott and the team at Sequoia are doing so well. It’s the best-offense-is-a-good-defense theory of investing. “By being defensive, you can stand out in this market,” said Kevin McDevitt, a CFA charterholder and a Morningstar analyst.
In Grantham’s case, that means investing, as Rosenbluth said, in mega-cap companies. For instance, the average market capitalization of a holding in the GMO Quality fund is $115 billion, which twice the average for large-cap blend funds, said McDevitt.
As for Bob Goldfarb and David Poppe, the managers of the Sequoia Fund SEQUX +0.58% , it might be hard to say just how bearish they might be. They’re bottom-up, not top-down managers according to McDevitt. But judging by the percent Sequoia has invested cash, the two managers are legitimate bears as well. Goldfarb and Poppe, who won Morningstar’s domestic-stock fund manager of the year in 2010, have 27% of the fund’s assets invested in cash and 73% invested in stocks.
Despite that composition, the fund is up nearly 11% year to date, a testament to the fund manager’s stock-picking ability.
McDevitt noted that Goldfarb and Poppe, in the style of Warren Buffett, have a knack for investing in companies that have a quality business and competitive advantage.
The top 10 holdings in the GMO Quality fund include Microsoft Corp. MSFT -0.04%, Johnson & Johnson JNJ +1.30% , Cisco Systems Inc. CSCO +0.17%, Philip Morris International Inc. PM +0.98%, The Coca-Cola Company KO +0.06% , Oracle Corp. ORCL +0.38%, Pfizer Inc. PFE +1.34%, Apple Inc. AAPL +0.20%, Wal-Mart Stores Inc. WMT +0.52% and Google Inc. GOOG +0.05% (GOOG).
Read more about Grantham in this related story, GMO’s Grantham: Risk doesn’t pay.
Also of note, Rosenbluth said, there are three other funds that have a similar investment style to the GMO Quality and that carry S&P’s highest rating, five stars. Those being the Dreyfus Appreciation Fund DGAGX +0.43%, Meridian Growth Fund MERDX -7.19% and the Yacktman Fund YACKX +0.47%.
The top 10 holdings include Valeant Pharmaceuticals International Inc. VRX -0.54% , Berkshire Hathaway Inc. A BRK.A -0.67% , TJX Companies TJX +0.19% , Fastenal Co. FAST +0.59% , IDEXX Laboratories Inc. IDXX -0.23% , Precision Castparts Corp. PCP -0.04% , Advance Auto Parts Inc. AAP +0.20% , Rolls-Royce Holdings PLC RYCEY +1.08% UK:RR +0.78% , Mohawk Industries Inc. MHK -0.35% , and O’Reilly Automotive Inc. ORLY +0.47% .
McDevitt said the Sequoia fund isn’t for investors looking to take advantage of bullish returns from what might seem to be bearish managers. Rather, it’s a fund for those who share Goldfarb and Poppe’s philosophy of investing for the long-term.
The fund own just 35 stocks and has a turnover ratio one-half its category, 23% to 50%. “This is not a fund to buy with the next two, six or 12 months in mind,” said McDevitt. By the way, McDevitt also said the fund’s allocation to cash is less a statement about the manager’s outlook for the market and more a statement about the absence of good values in the market.
Unlike Grantham, Goldfarb and Poppe, Arnott isn’t posting double-digit returns as manager of the PIMCO All Asset All Authority PAUDX 0.00% and the PIMCO All Asset PASDX 0.00% , both of which are funds of funds. But he is a bear and both those funds are in positive territory and outperforming the peer group. The former fund is up 1.4% year to date, while the latter is up nearly 1%. On average, funds in the category are down more than 2%.
Arnott didn’t deliver positive returns by investing only in high quality stocks or by investing heavily in a few dozen stocks. Instead, he’s got a broad mandate. He’s got the ability to invest all over the world in all kinds of stocks and bonds and in the case of the All Authority fund, the ability to go short as well as long.
In Arnott’s case, McDevitt said, his defensive posture has helped and his tactical moves have helped as well. For instance, the fund had just 6.8% of its assets invested in stocks in June. By September, Arnott increased the percent invested in stocks to 13%, taking advantage of the rise in the market at the time. “This could be a core fund for bearish investors who are risk averse,” said McDevitt.
mihail @ December 16, 2011
Europe’s never-ending debt saga has investors girding for volatile, unsteady currency markets for years to come.
This debt crisis has also boosted bullish bets on the world’s safe havens—the U.S. dollar and yen — well into the next 24 months in the options market, reflecting fears that problems in the euro zone could linger for years.
“There’s enough uncertainty surrounding Europe and the global economic picture that higher volatility will likely become a feature of this market for some time. And it’s more or less across the board,” said Aroop Chatterjee, senior currency strategist at Barclays Capital in New York.
This is the second time in four years that the options market has signaled such a high level of anxiety. Right after U.S. investment bank Lehman Brothers collapsed in September 2008, currency option prices options spiked as investors paid a high premium for protection against the market’s big moves.
Now the same scenario is playing out. And it’s anyone’s guess as to when it ends.
Implied volatility on one-month euro/dollar options surged to 18.35 percent on Monday—the highest in at least 2 1/2 years. That 18 percent figure is equivalent to expectations for a roughly 5.2 percent move in the euro over the next 30 days, options strategists said.
Implied volatility, or “vol,” is a measure of the options market’s expectations of price movements.
Tuesday’s speculation about plans to boost the euro-zone bailout fund did little to ease fears that the fiscal crisis could drag on, especially after Germany and Spain poured cold water on the idea.
Euro vols did retreat on Tuesday, but have generally traded above the 50-day moving average since early September.
One- to two-year euro/dollar vols were also elevated at nearly 17 percent, generally an indication of stress.
Heightened volatility in the one- to two-year time frame is unusual, analysts said. Normally, investors tend to sell long-term volatility even as short-term volatility spikes.
The fact that volatility is heightened down the road suggests worry that markets will remain unsettled.
“You have basically entered a period where front-end vols have really gone up and the long end has sort of tracked the front end, which is a function of risk aversion,” said Aditya Bagaria, FX options strategist at Credit Suisse in London.
Emerging Markets Also See Worry
In a clear sign that European contagion is spooking investors, option hedges against some of the best-performing emerging market currencies have soared as well.
The rise in volatility there underscores the vulnerability of these assets in times of stress despite their strong economic fundamentals. Already, these markets are experiencing capital outflows, similar to 2008.
Vols on one-month U.S. dollar/Mexican peso pair exploded to 28.4 percent on Friday, a roughly 2 1/2 year high from as low as 8 percent in July.
Traders said one-week Mexican vols had traded as high as 45 percent.
The peso’s one-month vols, though, slipped to 24.8 percent on Tuesday, but the increase in volatility is consistent with the peso’s 8 percent drop against the dollar this year.
Vols in the Brazilian real, the Turkish lira and the South African rand have also surged, just as they did three years ago.
“Investors have realized that, if more than half of the world is to have (stalling) growth, emerging markets will not likely have an easy time,” said Stephen Jen, managing partner at hedge fund SLJ Macro Partners in London.
“I think (emerging market weakness) will continue, even if large interventions slow down the pace of the prospective dollar rally. Too many long-term real money investors are still in these long-EM trades for the dollar rally to be over.”
Risk Reversal Skews
Further signs of stress are evident in risk reversals, a key indicator of risk sentiment in the options market. Risk reversals in major currencies are all showing a strong bias to hold U.S. dollars — still considered a bet on safety.
One-month Australian dollar/U.S. dollar risk reversals, for instance, showed a “put” bias of -7.60 vols on Monday, the most extreme skew since at least 2007, but slipped on Tuesday. In general, put options suggest more investors are betting on a decline in the Aussie than a rise. The higher the number, the more bearish investors are on the currency.
Risk reversal skews favoring the greenback are further supported by positioning among hedge funds, such as Quaesta Capital in Zurich, Switzerland, which has increased long U.S. dollar positions in the last week in its $3 billion currency fund of funds.
Extreme long positioning in the Australian dollar also contributed to the negative bias. Real money accounts, Japanese retail investors and speculators are still clinging to Aussie net longs, though short-term investors are paring positions.
Copyright 2011 Thomson Reuters.
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mihail @ September 28, 2011
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Euro/dollar slid to a 7 month low. Greece continues to float between the next tranche of aid to the trenches. Will the fate of this debt hit country be known this week? Apart from Greece, the calendar is very busy and we will get hints on a possible rate cut by the ECB. Here is an outlook for the upcoming events, and an updated technical analysis for EUR/USD.
The big blow to the euro and to most currencies came from Ben Bernanke. The Fed announced “Operation Twist” but provided downbeat language on the economy and no further easing steps such as QE3. The impact of Bernanke on financial markets will likely accompany us for many months to come.
German Ifo Business Climate: Monday, 8:00. This survey from Europe’s No. 1 think tank always rocks the euro. It usually exceeds expectations and rises, but last month was different, with a drop to 108.7 points. This hurt the euro. Another slide to 107 points is expected now.
GfK German Consumer Climate: Tuesday, 6:00. This survey of 2000 consumers has been very stable in recent months, showing that German consumers are still doing well. A tick down from last month’s 5.2 points is expected now.
M3 Money Supply: Tuesday, 8:00. More money in circulation means more activity and more potential inflation. This is one of the factors that the ECB takes into consideration. The pace of expansion has slowed down to 2% last month. A similar number is likely now.
German CPI: Wednesday. This is the preliminary release, and is published separated for each German state. After remaining unchanged last month, this leading inflation indicator will likely show small drop in prices now, helping the ECB to lower the rates.
German Unemployment Change: Thursday, 7:55. This indicator is the best expression of the German strength. While it fell below expectations in recent months, this figure has still shown a steady drop in unemployment. A marginally bigger drop than last month’s -8K number is estimated now.
German Retail Sales: Friday, 6:00. After a big jump two months ago, no correction was seen, and retail sales continued rising, by 0.3%. Germany will likely see a small dip in volume now: 0.4%.
French Consumer Spending: Friday, 6:45. Europe’s second largest economy will publish consumer spending numbers for two months. After a few straight months of drops in spending, French consumers upped their spending two months ago by 1.2%. The figures that will be published now might offset each other, but the general direction will likely be more squeeze.
CPI Flash Estimate: Friday, 9:00. Inflation in the euro area has stabilized at a pace of 2.5%, lower than in previous months. Inflation is already less of a worry to the ECB, which changed its recent forecasts to balanced inflation and downside risks to growth. Lower inflation is expected now, but it will probably remain above the 2% target.
Unemployment Rate: Friday,9:00. The unemployment rate in the euro-zone has edged up to 10% after many months at 9.9%. The same depressing figure is expected now. Note that there is a big gap between countries like Spain, with more than 20% unemployment, and countries in the north with single digit figures.
* All times are GMT.
EUR/USD Technical Analysis
€/$ began the week with a big Sunday gap. When it finally closed the gap at around 1.3788 (discussed last week), the big plunge began. The pair fell as low as 1.3385 before consolidating.
Technical lines from top to bottom:
We start from a lower line this week. 1.3950 was a pivotal line when the pair traded in lower ranges. The pair got quite close to it a few weeks, and it remains strong resistance in the horizon. The swing low of 1.3838 held the pair and after EUR/USD fell to a six month low was a distinct line separating ranges during September.
1.3750 managed to cap the pair on a recovery attempt and is minor resistance. The round number of 1.37 is another minor resistance line at the moment. It served as resistance early in the year.
The low of 1.3630 seen in earlier is already more important resistance. 1.3550 provided support early in September and then switched to resistance after the fall.
The round number of 1.35 was a trough early in September remains a pivotal line. Very serious support is at 1.3430. This is a modification of the 1.3440 line, after the break. It separated ranges in a very clear way many times in the past, making it of very high importance.
The bottom at 1.3385 made just now is also of importance, as a break below this line will be a fresh 8 month low. Minor support is at 1.3322, which was a resistance line in the past.
More important resistance is at 1.3250 which held the pair early in the year. It’s followed by 1.3180 which worked as significant support in December 2010 and is now weak.
A key line before the round number of 1.30 is support at 1.3080. Towards the end of 2010, it prevented deeper falls.
The ultimate trough of 2011 at 1.2873.
I am bearish on EUR/USD.
mihail @ September 24, 2011
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This was a week to forget for stock markets, but certainly a week to remember for dollar bulls, as the dollar returned to strength last seen 7 months ago. German Ifo Business Climate, US housing data and Unemployment are the major events this week. Here is an outlook on the upcoming market-movers.
Last week Bernanke announced $400 Billion Twist to bail out the US economy from its bad condition by buying $400 billion long term securities of six to 30 years and sell them in three years. The Fed believes this would encourage mortgage refinancing drawing investors to the real estate market. Will this move help the struggling economy? It currently sent stocks, commodities and most currencies plunging against the dollar.
Euro-Zone German Ifo Business Climate: Monday, 8:00. Things took a turn for the worse amid a slowdown in the US economy and the financial crisis in the Euro-zone, German business confidence plunged to 108.7 in August, the worst drop since 2008, following 112.9 in the previous month. This reading was well below analysts estimations of 111.2 indicating a serious slowdown in recovery. A further decrease to 107.3 is expected.
US New Home Sales: Monday, 14:00. Sales of newU.S. homes dropped more than expected in July reaching 298,000 following 300,000 in June. Chip existing homes nearly diminish the feasibility of building new homes. The figure is expected to drop to 297,000.
US CB Consumer Confidence: Tuesday, 14:30. Consumers’ confidence in August slid 15 points to the lowest level since April 2009 reaching 44.5 after 59.2 in July. This drastic fall reflects Americans concerns over the weak job market conditions and rising prices of food and clothing decreasing consumer spending. A small increase to 46.8 is predicted.
US Core Durable Goods Orders: Wednesday, 12:30. Orders for long-lastingU.S. products excluding transportation, increased by 0.7% in July while Durable goods orders increased by 4.0%. This rise came after 0.6% increase in Core orders and 1.3% decrease in Durable goods orders. A smaller increase of 0.3% is forecasted.
US Unemployment Claims: Thursday, 12:30. The number of Americans filing initial claims for unemployment dropped less than predicted to 423,000 while a decline to 419,000 was estimated. This is the fifth week of increases indicating a mounting number of dismissals in a slowing economy.
US Pending Home Sales: Thursday, 14:00. Sales of existingU.S. homes dropped in July by 1.3% from a 2.4% gain in June while 0.8% fall was expected. This signifies the slowdown in the housing sector. Nevertheless economists are optimistic claiming the market will offer favorable conditions for potential buyers. A decrease of -1.9% is forecasted.
Canadian GDP: Friday, 12:30. The Canadian economy contracted 0.4% in the second quarter after Japan’s earthquake and tsunami but on a monthly base GDP increased by 0.2% in June following a 0.3% drop in May. An increase of 0.3% is expected now.
*All times are GMT.
mihail @ September 24, 2011
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Dividend paying stocks with yields above 10% are unusual. Fortunately, there are many Closed-End Funds (CEFs) trading at a discount to net asset value (NAV) with dividends exceeding 10%.
Below is a table of 30 CEFs with dividend payouts exceeding 10%, which trade at a discount, and have expense ratios below 2.0%…
Click to signin to see the content if you already bought it.
mihail @ September 16, 2011
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To get engaged in the forex investing markets, contacting any of these big broker assistance firms is going to be inside your best interest. Certain, anybody can get engaged within the forex market, but it does take time to understand about what is hot, what is not, and just where you should location your cash at this time.
International banks are the markets greatest users on the fx markets, as they have millions of dollars to invest every day, to earn interest and this is just 1 technique of how banks make money on the cash you save in their bank. Consider the bank that you deal with all of the time. Do you realize if you can go there, and acquire cash from ‘another’ country if you are heading out on vacation? If not, that bank is most likely not involved in fx trading. If you have to know if your bank is involved in forex trading, you are able to ask any manager or you can look at the financial information sheets that banks are to report towards the public on a quarterly baiss.
If you’re new towards the forex market, it’s essential to realize there is no one individual or 1 bank that controls all the trades that occur within the fx markets. Various currencies are traded, and will originate from anywhere in the world. The currencies that are most frequently exchanged within the fx markets consist of those of the US dollar, the Eurozone euro, the Japanese yen, the British pound sterling and also the Swiss franc also as the Australian dollar. These are merely a few of the currencies which are dealt on the forex markets, with numerous other counties currencies to be included as well. The main trading centers for the forex trading investing arenas are located in Tokyo, New York and in London but with other smaller trading centers situated believed out the world as well.
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mihail @ September 10, 2011
Posted in: Forex, Commodities and Futures | Comments Off
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mihail @ September 10, 2011