Sunday, July 21, 2019
Last week, Blue Apron (APRN) found an ingenious way to lift its share price. The company announced a 1:15 reverse stock split. Of course, a reverse split doesn’t add a dime to shareholder value. You simply own one share now for every 15 you used to own, meanwhile the share price jumps 15 fold. In […]
I receive a lot of questions concerning the different investments on closed-end funds (CEFs); particularly the category of high yield investment types. A lot of investors see the yields and monthly dividends and decide to jump into CEFs without understanding what they are buying. You can find several danger signals that will tell when to […]
With my focus on higher yield investments, I often receive questions about various closed-end funds. CEFs are actively managed investment pools with shares that trade on the stock exchanges. A lot of these funds carry very attractive yields. The danger is that this is an asset class where it is hard to separate the good […]
After a decade of zero percent short term rates, in 2016 the Federal Reserve Board started to increase its Fed Funds Rate, which is the rate that drives all short term interest rates. That rate is now effectively 2.5%. Over the same period, rates at the longer end of the yield curve have not risen […]
Two months after its stock started to crash, PG&E Corp. (NYSE: PCG) has made it official. The company will file for Chapter 11 bankruptcy at the end of January 2019. The large California utility faces up to $30 billion in legal liabilities stemming from power infrastructure caused Northern California wildfires in 2017 and 2018. Here […]
Recently, as part of my ongoing research in the high-yield investment world, a newswire release crossed my screen that had me scratching my head. One reason to invest in a fund-type of product is to diversify and reduce risk. However, this exchange traded note (ETN) that I found seems to be structured in a way […]
Are bond funds a safe haven if the stock market crashes? With interest rates about to rise, is it a good time to invest in a bond fund? These are questions investors may be asking themselves as the stock market may be peaking and the Fed keeps jacking up interest rates. If you are fearful […]
It was nice to see the New York Times catching up to what I told you months ago here… the headline read ‘Amazon Sets Its Sights on the $88 billion Online Ad Market’. I first brought this to everyone’s attention an article in early June. You can read it here. So get ready everyone… it […]
Following a string of high-profile scandals, Warren Buffett’s favorite bank has never really recovered, with its recent quarterly results confirming the ongoing struggle. Is there any way back to centre for the beleaguered bank?
In recent months, it has gotten harder to separate the performance of the U.S. stock market from the performance of the FAANG stocks (Facebook, Amazon, Apple, Netflix and Google/Alphabet). Despite Facebook’s face-plant, after its earnings announcement led to the worst one-day loss ever for any stock, the overall performance of the market year-to-date has been […]
