Investing in Latin America Can Bear Fruit, but Should We?
With commodity prices recovering and major developed markets (EFA) (VEA) caught in the lull, Latin America should see sunnier days ahead.
Financials
How REIT Classification Benefits Preferred Securities
S&P Dow Jones Indices and MSCI (MSCI) have decided to shift stock exchange-listed equity REITs and other listed real estate companies from the financial sector (XLF) to a new real estate sector.Financials Bank of Japan announces QQE2, expanded monetary stimulus
At its monetary policy meeting held on October 31, the Bank of Japan (or BOJ) announced new stimulus measures. The measures come in addition to those it announced earlier.
Why did Lone Pine Capital buy a stake in SBA Communications?
SBA Communications Corporation is a 2.11% position initiated by Lone Pine Capital in 4Q 2013.
Ray Dalio: The Next Downturn May Be a Difficult One to Reverse
“The next downturn may be a difficult one for central banks to reverse,” warned Ray Dalio, CEO of the world’s largest hedge fund.
How to Pick Asset Management Stocks to Invest in
If you’re looking to diversify your portfolio, asset management stocks are worth a look. Here’s how to pick the right asset management stock to invest in.
How Saudi Arabia’s Bond Sale Affects US Treasury Bonds
Saudi Arabia has also been involved in the sale of US Treasuries. The country is the 15th-largest holder of US Treasury bonds in the world.
Introducing Danaher: A Diversified Healthcare Company
Danaher is a diversified conglomerate with a market cap of ~$56 billion. Its customers are mostly professionals and organizations rather than retail consumers.
Dalio: What Policies Are Required of Central Bankers?
Ray Dalio: Here’s what’s required of central bankers Given the inadequacy of monetary policy measures to stimulate the economy, we may see “more direct placements of purchasing power in the hands of spenders,” believes Ray Dalio. He has outlined what central bankers should do. “Continue to make debt assets extremely unattractive for savers” For some […]
Marijuana: Why Is Washington Changing Its Laws?
In 2012, Washington was the second state to legalize recreational marijuana. Now, the state plans to revamp its marijuana laws.
PayPal Continues to Invest in India Expansion
PayPal (PYPL) has continued to make more investments in India since it launched domestic operations in the country last year.
The Word on the Street: What Analysts Are Recommending for Joy Global Now
Of the 17 analysts surveyed by Bloomberg, only five issued “buy” recommendations for Joy Global, while 11 issued “holds,” and one issued a “sell.”
The Biggest Detractors for Einhorn’s Greenlight in 2018
Overall, in 2018, the most significant contributors to Greenlight Capital’s gains included Micron Technology (MU) and Twitter (TWTR).
Morgan Stanley and Goldman have bigger bond exposure than Bank of America and Citi
Bond underwriting exposure could be risky for investment banking departments, as interest rates begin to rise and refinancing slows.
Spread between 5/1 ARMs and 30-year fixed rate mortgages blows out
The spread between the 30-year fixed rate mortgage and the 5/1 ARM changes over time After the financial crisis, Adjustable Rate Mortgages (ARM) got somewhat of a dirty name. Lenders were criticized for using the low “teaser” rate on mortgages to evaluate whether the buyer could afford the home; many borrowers were unable to afford […]
Investor Sentiment Favors Peru, Chile, and Brazil
Investor sentiment with respect to Latin American economies has definitely been changing since the beginning of the year.
Jeffrey Gundlach: The Fed Has Been Supporting the S&P 500
Gundlach also believes it’s interesting to look at the correlation between the size of the Fed’s balance sheet and the S&P 500 (SPY) (SPXS) (SPXL) level.
Is the Brexit Vote the Beginning of a Movement?
Popular opinion holds that the Brexit referendum has opened the gates for other such votes in the future.
Elizabeth Warren Targets WeWork’s Layoffs and CEO
Last week, CNBC said that WeWork (WE) is firing 2,400 people. Supposedly, this will “create a more efficient organization.”
Why Deutsche Bank Prefers Bank of America over J.P. Morgan
In this series, we’ll compare Bank of America and J.P. Morgan on the basis of their 2Q earnings, profitability, cost-cutting initiatives, and interest rate sensitivities.
Kroger versus Walmart: Which Grocery Stock Is Best?
Despite some impressive signs of Kroger’s (K) success, Walmart stock (WMT) is the better pick for the grocery sector. Here’s why.
Why David Einhorn Is Betting against Amazon
On a YTD (year-to-date) basis, Amazon has returned nearly 40% as of November 3, 2017.Energy & Utilities Must-know: An overview of Athlon Energy
Athlon is an independent oil and gas exploration and production company. Its activities include the acquisition, exploration, and development of oil and liquids-heavy gas resources in the Permian Basin.Financials Financial intermediation, systemic risks, and “too big to fail”
When financial intermediaries allocate funds, they assess the risks and returns that come from various risky claims. Intermediaries help allocate resources and risks throughout the economy. Financial intermediation can result in concentrated risks. The risks increase the financial system’s fragile state. These risks are called systemic risks.
S&P 500 Index Nears Record High amid Earnings Season
The S&P 500 Index, represented by the SPDR S&P 500 ETF (SPY), rose 0.3% on October 23, nearing the all-time high it saw in July.Financials Understanding the simple moving average in technical analysis
The simple moving average (or SMA) is an average of the closing price of a stock over a specified number of periods. The moving average smooths the short-term fluctuations in the stock prices.
Leverage and mortgage REITs – Part 2
Leverage and Mortgage REITs – Part 1 How a mortgage REIT typically does it Most mortgage REITs use repurchase agreements to fund their balance sheet. A repurchase agreement (repo) is basically a secured loan. The REIT will pledge the mortgage backed securities they just bought as collateral for a loan. It is actually an agreement […]Financials Risks you should know before investing in international bond funds
In this article, we’ll discuss some of the risks an investor must consider before investing in international bonds. Some of these risks are unique to this asset class.
Must-Know: What Is PEG Ratio and How Is It Used?
Investors use a bunch of metrics to determine if a stock is attractive. One such metric is the PEG or the price-to-earnings-to-growth ratio.
We’re in ‘an Environment of Abnormally Slow Growth,’ Says Dalio
This isn’t a normal business cycle Billionaire hedge fund manager Seth Klarman said, “the stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions.” Ray Dalio believes that this isn’t a normal business cycle. In our April 2015 series Business Cycle Investing: What Should You Look […]
Movement Toward a Cashless Economy Set to Take a Big Leap Forward with Introduction of uBuck Pay
LiteLink Technologies Inc. (CSE:LLT) (OTC:LLNKF) has created quite possibly the fastest, most secure & most cost-effective digital payment platform ever!
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.
Primer on mortgage backed securities, Part 5
Continued from Primer on mortgage backed securities, Part 4. Prepayment risk Prepayment risk and interest rate risk go hand-in-hand. The main difference between a mortgage backed security and a government bond is that with a government bond, you know exactly when you will get your principal and interest payments. If you purchase a 7-year Treasury […]
Stephen Mandel’s Lone Pine Capital buys a new position in Equinix
Lone Pine initiated a new position in Equinix (EQIX) last quarter that accounts for 1.81% of the fund’s total 1Q portfolio. Lone Pine had exited the position in 4Q 2013 and restarted it last quarter.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.Financials The big 3 ETF providers in the US—iShares, SPDR, and Vanguard
In the U.S., Blackrock (BLK), State Street GA (STT), and Vanguard are the top three ETF providers. They have a 40.1%, 22.3%, and 20.7% market share, respectively.Energy & Utilities Why the triple top and triple bottom patterns are important
The triple top pattern is formed in the uptrend. In this pattern, three consecutive peaks are formed. The peaks have roughly the same price level.
Why Does Fixed Income Look Promising?
Under the current uncertain economic circumstances, investors searching for higher yield might turn to fixed income.
Primer on mortgage backed securities, Part 1
What are mortgage backed securities? Mortgage backed securities are pools of individual mortgages that have similar characteristics. They allow a relatively illiquid asset (an individual home mortgage) to be converted into a very liquid asset that can be traded with relative ease. They also allow an issuer to divide up the cash flows in order […]
ValueAct challenges “One MSCI” strategy
In September 2014, MSCI approved a quarterly dividend and raised its share repurchase authorization to $850 million from $300 million.Financials Omega Advisors buys stake in IntercontinentalExchange
Omega Advisors opened a new 1.36% position in Intercontinentalexchange (ICE), a leading operator of global markets and clearing houses, in the fourth quarter.
Fannie Mae TBA securities shrug off the March FOMC meeting
Given that another $10 billion in tapering was already priced in, TBAs didn’t react to the FOMC meeting. MBS spreads tightened as MBS rallied in the face of a bond market sell-off.Financials Key differences between PCE and CPI as inflation measures
The CPI and PCE are both important indicators of U.S. inflation. CPI is more important from an individual perspective, while PCE is more important for monetary policy.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.
What to Expect from Chubb in 4Q17
Chubb Limited (CB) plans to release its 4Q17 earnings report on January 30. The average estimate from Wall Street analysts for earnings per share or EPS in 4Q17 is $2.33.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.
Must-know: A glossary of technical analysis terms
In technical analysis, there’s a series of common terms. Understanding the glossary of technical analysis terms is helpful for investors. Technical analysis is used to predict stock prices. It uses price, time, and volume data.
Cannabis Legalization: Dark Clouds Loom Post Debate
Cannabis legalization is gaining traction not only in the US but also globally. The third presidential Democratic debate was held on September 12.
Which Sectors to Avoid if Inflation Rises
Telecom services and utilities, the traditional dividend stars, have provided a fillip to US equities in 2016.