How Investing in GATEX Could Impact Your Portfolio
GATEX could increase the exposure of an investor’s portfolio in the equity market. It has less volatility risk than the equity markets.
Banking
Market Realist has the latest news and updates on banking, U.S. banks, credit unions, and savings and loan associations.
Traditional assets: Defining active and passive management
Active asset management refers to those asset managers that essentially try to outperform the average market return, a benchmark, or a hurdle rate that may have been set internally.Financials Why low funding cost is an advantage for Wells Fargo
If a bank is able to keep its cost of deposits low, it will have a competitive advantage. Wells Fargo has the lowest cost of deposits among its peers—despite having a very high deposit base.
Why Does Fixed Income Look Promising?
Under the current uncertain economic circumstances, investors searching for higher yield might turn to fixed income.
Softbank’s Journey from Alibaba to Uber and WeWork
In 2017, Softbank (SFTBY) created a pool of $100 billion to promote new business ventures. The company provided seed funding to entrepreneurs worldwide.
Why MLPs Saw a New 52-Week Low Last Week
MLPs went through some carnage last week. The Alerian MLP Index (^AMZ), which tracks the performance of 50 energy MLPs, saw a new 52-week low of 258.45.Financials Why Wells Fargo focuses on non-interest income
Wells Fargo wants to maintain a balance between its interest income from loans and non-interest income. Non-interest income accounts for nearly 49% of Wells Fargo’s revenues.Financials Why cross-selling is part of Wells Fargo’s strategy
Wells Fargo’s (WFC) first, and possibly the most important, operational strategy is focusing on cross-selling. It’s the most important pillar of its operational strategy.
Understanding Banks’ Market and Reputational Risks
All banks face risks. Two key areas to understand are banks’ market risk and reputational risk. Here’s a summary of each type.
Which Sectors to Avoid if Inflation Rises
Telecom services and utilities, the traditional dividend stars, have provided a fillip to US equities in 2016.
Brexit Vote: How Did US Treasury Auctions React?
The US Treasury auctioned 30-year TIPS (VIPSX)(LTPZ) worth $5 billion on June 22.
Understanding a Bank’s Operational and Business Risks
Banks experience operational risk in all daily bank activities, such as a check incorrectly cleared or a wrong order punched into a trading terminal.
Get Real: Breaking Down and Bouncing Back
In this morning’s edition of Get Real, we saw that WeWork’s layoffs are taking a toll. Meanwhile, the cannabis industry could be bouncing back.
What’s behind MLP Performances for the Week Ended November 10?
Of the total 95 MLPs, 62 ended last week in the red, 30 ended in the green, and the remaining three ended flat. Energy Transfer Partners (ETP) fell 5.5%.Financials Why Wells Fargo uses human resources as a strategic tool
Wells Fargo (WFC) believes that people are a competitive advantage source. Integrating sound human resource practices lies at the core of Wells Fargo’s strategy.
Low-cost deposit growth is a key strength for U.S. Bank
U.S. Bank does well in increasing its low-cost deposit base. In 4Q14, money market deposits grew the fastest at 19.7%—compared to 4Q13.
An Introduction to Brazil’s Largest Banks, Latin America’s Biggest
Since the ’80s and ’90s, Latin American banks have stabilized. Today, the largest banks in Latin America are concentrated in two countries: Brazil and Mexico.
Is Bank of America Going Out of Business?
Many businesses have closed due to uncertainty amid the COVID-19 pandemic. Even financial mainstays like Bank of America have been feeling the pressure.
Bank of America and Wells Fargo: Comparing Interest Rate Exposure
Since Donald Trump’s presidential victory, Wall Street analysts have raised their forecasts for the major banks’ (XLF) net interest margins as they anticipate rising interest rates and economic growth.
How to Make Money with Dividend Investing
If you’re an income investor, I’ve got a strategy for you. Dividend investing is a time-tested way to grow your account over the long haul.
Is It Pointless to Look at Big Banks’ Q1 Earnings?
JPMorgan Chase will announce its first-quarter results before the markets open on April 14. Analysts expect the bank to post revenues of $29.7 billion.
Was 2019 a “Nightmare” for Warren Buffett and Berkshire?
Warren Buffett underperformed the stock markets last year. Berkshire Hathaway’s returns versus the S&P 500 were the worst since 2009.
Goldman Sachs’ Best Stock Picks for 2020
Strategists at Goldman Sachs (GS) project Netflix (NFLX), T-Mobile (TMUS), and Coca-Cola (KO) to be among the best stock picks for 2020.
Dish Stock Jumps after Chairman Mentions SoftBank in Merger Trial
Dish stock jumped after Dish Network Chairman Charlie Ergen mentioned financial support from SoftBank in the T-Mobile–Sprint merger trial. We’ll look at what this support means to Dish.
Walmart Coin: A Bigger Deal than FB’s Libra and Bitcoin?
Retail giant Walmart (WMT) had applied for a digital coin patent. The news comes just as Facebook (FB) is pushing for its own cryptocurrency, Libra.
Ray Dalio, the Role of Credit, and the Economic Machine
Credit is the most important part of the economy, leading to increased spending, increased income levels, higher GDP, and faster productivity growth.
Get Real: Tesla Bears and the ‘Tariff Man’
The Dow Jones Index needs a Santa Claus rally this year. Instead, the Dow Jones might have to contend with the “Tariff Man.”
These 2 Tech Stocks Gained Big in November
In this article, we take a look at two growth tech stocks that have gained momentum recently. They’ve both outperformed the broader markets.
Warren Buffett Has Loads of Cash and No Takers
Berkshire Hathaway’s huge cash pile might stay in place for a while. Warren Buffett was outbid by Apollo Global Management in his efforts to buy Tech Data.
What Berkshire Hathaway Really Does, Says Buffett
Berkshire Hathaway is a huge conglomerate with diverse operations. The company’s operations are complex, so let’s take an easy-to-understand approach.
The main players in asset management
The efficient market hypothesis maintains that the market prices everything correctly and so it isn’t possible to outperform the market in the long run.
How big is the asset management industry?
Audited and verified annual figures at the end of 2013 indicate that total assets under management of US registered investment companies equalled nearly $17.1 trillion.
Citigroup globally established in emerging markets
Citigroup’s exposure in emerging markets is mainly to investment-grade global multinationals through its institutional businesses.Financials What’s the Dow Theory?
The Dow Theory was developed by Charles Dow. It identifies and signals the change in the stock market trends. It’s useful for trading and investing. The Dow Theory has six components.
A key overview of Adage Capital’s holdings in 3Q14
Adage Capital’s US long portfolio grew from $38.69 billion in 2Q14 to $40.2 billion in 3Q14. The portfolio comprised around 699 stocks.Financials How close is the FOMC to achieving its dual mandate?
We’ve talked about the dual mandate and factors constraining the Federal Reserve from achieving this mandate. Let’s now assess how close the Fed has come to achieving its macroeconomic objectives.
How Home Depot Drives Membership Loyalty With Pro Customers
The Home Depot’s (HD) focus on the pro customer allows the retailer to compete in the installations market and the product demand the services create.
U.S. Bank’s non-performing assets declined in 4Q14
U.S. Bank’s (USB) non-performing assets were $1,808 million at the end of 4Q14. The ratio declined by 11.24%—compared to 4Q13.
How does Bank of America make money?
Net interest income contributes about half of Bank of America’s total income. Investment and brokerage services contribute the most to noninterest income.
Bank of America’s six operating segments
Bank of America operates through five major segments. Its Consumer and Business Banking segment contributes a third of the bank’s total revenues.
Bank of America: The second-largest US banking operation
Bank of America Corporation’s (BAC) banking operations are the second-largest in the United States by assets.
Why consumer banking is important for Bank of America
Consumer and Business Banking is Bank of America Corporation’s (BAC) largest segment. It contributes about a third of the bank’s total revenues.
Card loans rule Bank of America’s consumer loan portfolio
Credit card loans account for more than half of Bank of America’s total consumer loan portfolio.
Why Bank of America’s commercial loan portfolio is diversified
In addition to assessing the credit profile of the borrower, Bank of America ensures that loans aren’t too concentrated by industry, geography, or customer.
Bank of America’s Global Markets operations
Bank of America’s (BAC) Global Markets segment offers sales and trading services across asset classes to institutional clients.
A brief overview of U.S. Bank
We’ll provide an overview of U.S. Bank. It’s the fifth largest retail bank in the US—by deposits and assets. At the end of September 2014, it held $391 billion in assets.
Why U.S. Bank’s loan growth showed interesting trends
You need to understand loan categories better in order to see some very interesting trends in U.S. Bank’s loan growth. Its loans are divided into five main categories.
Apple Card in Hot Water Over Alleged Credit Limit Bias
The Apple Card is currently under regulatory scrutiny related to gender-biased credit limit approvals, according to a Bloomberg report on November 9.
Get Real: Big Tech Companies Dominate
In today’s Get Real, we saw updates on big tech companies’ latest happenings. Plus, more earnings results, projections, and expectations.Financials Richard Fisher explains why excess reserves can create velocity
Richard Fisher also discussed the impact of quantitative easing (or QE) on excess reserve balances held by depository institutions at his speech at the London School of Economics on Monday, March 24.