Tuesday, June 22, 2021
Of the largest 20 stocks (by market cap) in the U.S., which one do you think has the best performance year-to-date? Is it Apple (AAPL), the world’s largest company my market capitalization? Is it electric vehicle powerhouse and crypto-investor Tesla (TSLA)? Given the semiconductor shortage that’s pushing up chip prices, maybe it’s NVIDIA (NVDA)? Despite […]
It’s not often that you hear investors talking about a bank stock as exciting. Well, it may be more accurate to say, it’s not often you hear investors talk about a bank stock at all. Bank stocks don’t tend to be all that interesting in terms of growth (although they can be excellent dividend stocks). […]
The economy may be improving, but last week’s Federal Reserve statement made it clear that there will be no tapering anytime soon. In other words, the Fed will continue to purchase bonds, and interest rates will remain near zero. It’s not all that surprising as the Fed has made it clear they don’t want to […]
Recently, my wife—who does not follow the financial world—asked me how a hedge fund works. She read about the immense loss suffered by Credit Suisse due to the Archegos hedge fund meltdown. She wanted to know if the losses would affect customers of the bank. The discussion started me thinking about how complicated our financial […]
On a day when the markets were down, banking stocks like Bank of America (BAC) generally had positive performances. BAC traded almost 2.5x the usual number of options with about two-thirds of the action in calls. This is generally a bullish sign for the stock (which was up 2% at the time). One very large […]
Shares of Bank of America (BAC) reached “oversold” levels after falling for eight-straight sessions. It held its 50-day moving average while recently announcing fourth-quarter earnings. The chart below shows the RSI (relative strength index) for the stock recently hitting 40, as well as levels from late October. You will also see RSI reached 30 in […]
With stock market valuations sitting near 20-year highs, investors are hoping corporate results and profit outlooks will help determine to what degree the valuations are justified. The catalyst that will drive the market to higher highs over the near-term will be the current fourth-quarter earnings season that will carry over into mid-February and a month […]
Masayoshi’s Son’s Softbank (SFTBY) is in the news again…this time with a $40 billion cash-and-stock deal to sell its chip design architecture firm, ArmHoldings, to Nvidia (NVDA). SFTBY will receive $21.5 billion in NVDA shares and $12 billion in cash, only a little more than the $32 billion that it paid for Arm in 2016. […]
Before the pandemic, the U.S. was already on a path to becoming a cashless society. Each year, more and more Americans come to rely solely on credit cards or smartphones to make payments. But, there is always that one place: the small store that is “cash only,” the gas station that charges less if you […]
Chuck Butler recently discussed the probability of default of $300 trillion in global debt. Chuck added, “The Fed always runs to save Wall Street.” Why is that? Why not Main Street? The Federal Reserve website outlines their mission: “The objectives as mandated by the Congress in the Federal Reserve Act are promoting (1) maximum employment, which means all Americans […]
