The escalation in the U.S.-China trade war earlier this month raised the decibel level on recession talk from a whisper to a quiet conversation, if not elevating it to a full-throated forecast just yet. Would a full-blown trade war with China be enough to tip the U.S. into recession? The U.S. is already experiencing a manufacturing recession as the trade war dents business confidence and puts a damper on new investment.
Defaults on bonds issued by debt-laden U.S. companies with speculative-grade ratings are on pace to reach a new high this year for the post 2008 crisis era, according to Goldman Sachs analysts. The bank has tracked more than $36 billion of defaulted so-called “junk bonds” already in 2019, and there are likely to be more, particularly in the energy sector, to eclipse the prior post crisis default record of $43 billion in 2016, wrote Goldman analysts led by Lotfi Karoui in a Thursday note to clients. “Thus far, defaults have been highly concentrated among energy issuers, a trend that reflects structural as opposed to cyclical challenges,” the Goldman analysts wrote.
Whether the market hits another rough patch next week, there's one thing that is certain: Investors who buy a stock just before it goes ex-dividend are entitled to the next payout. Bespoke Investment Group compiled a list of 19 stocks in the S&P 1500 that are going ex-dividend on Monday. Buying shares before the market close on Friday entitles the purchaser to the next dividend payment.
As Mark Cuban, the “Shark Tank” star, billionaire entrepreneur, and NBA franchise owner explains, just pay off your debts. The personal finance site NerdWallet put our revolving credit card balance at $420.22 billion in late 2018. The revolving number is just the credit card debt we carry from month to month.
From the lofty perch of old age, and after a lifetime of thrift, I declare that I am qualified to comment on how not to waste money. We've all heard the reports: Most Americans live paycheck to paycheck, a large number can't come up with $400 for an emergency, and there's no money to save for retirement and other goals. Most of that data comes from surveys where people are, in effect, saying they don't have enough income.
For financial scammers, that means 10,000 potential new victims every 24 hours. While anyone, anywhere, at anytime can be a victim of a financial scam—and below are some of the most common ones—seniors are particularly at risk. “Older Americans are more vulnerable for many reasons,” says Joe Snyder of the National Adult Protective Services Association (NAPSA), a Washington, D.C.-based nonprofit that works with the financial industry, seniors groups and others to reduce rip-offs.
Bhanu Baweja, deputy head of global macro strategy at UBS, discusses the possibility of a debt default by Argentina on "Bloomberg Markets: European Close."
The country is facing a retirement crisis, but some Americans are worse off than others. Workers in the top 20% of earnings distributions have half of all retirement wealth in both 1992 and 2010, compared with the bottom group, which saw its share fall from 3% to 1% between those years, a recent analysis at The New School's Schwartz Center for Economic Policy Analysis (SCEPA) found. The share of workers in the bottom fifth of the earnings distribution with no retirement savings jumped from 45% to 51% in those 18 years.
We have over $1 million in investments for ourselves, an additional $50,000 in investments for our two girls to be used for college. We have made investing mistakes, but we have learned from them. All told, we currently have over $1 million in investments for ourselves, an additional $50,000 in investments (529s and a Scottrade custodial account) for our two girls to be used for college, with our only debt being the final few years of our mortgage.
Benzinga has examined the prospects for many investor favorite stocks over the past week. Bullish calls included tech leaders and a retail colossus. Bearish calls also included tech giants, as well as an energy play.
Headline after headline has been wreaking havoc on the broader markets, as volatility remains elevated and as investors try to figure out their next step. Trade war worries, imploding foreign stock markets and recession concerns are engulfing the news flow. Casual investors will at least like the news from the stock market today, where the SPDR Dow Jones Industrial Average (NYSEARCA:DIA) rose 1.25%, the SPDR S&P 500 ETF (NYSEARCA:SPY) climbed 1.48% and the PowerShares QQQ ETF (NASDAQ:QQQ) jumped 1.61%.
Nordea Bank Abp, meanwhile, is offering 30-year mortgages at annual interest of just 0.5%. Years of easing by central banks hacked away at interest rates around the world, distorting the traditional economics of lending and borrowing. This is most pronounced in Europe, where a composite home-loan rate across the euro area fell to 1.65% in June, the lowest since records began in 2000.
In the last two quarters, billionaire, hedge fund manager, and mathematical genius Jim Simons has moved decisively into the cannabis sector, taking large positions in both Aurora Cannabis (ACB) and Aphria (APHA). Simons, known for his work in higher mathematics and military cryptography, founded the Renaissance Technologies hedge fund in 1982. The firm was a pioneer in quantitative trading, the application of higher mathematics to the financial markets, and has developed a reputation as one of the best returning hedge funds in the business.
He says the recent June 3 nadir for stocks is his technical floor, which could lead to deepening losses if the market fails to hold above those levels. Market technicians often view recent lows or highs as levels of buying support or selling resistance that if breached translate into a bullish or bearish investment phase. On June 3, the Dow put in a low of 24,819.78 (see chart below): Meanwhile, the S&P 500 index (SPX) sank to 2,744.45 and the Nasdaq Composite Index (COMP) put in a low of 7,333.02 on the same date.
The cereal maker poked above a 54.84 buy point. A Composite Rating of 86 is helped by high return on equity and accelerating sales growth in recent quarters. It also offers an annualized dividend yield of 3.6%.STOCK MARKET TODAY is sponsored by Interactive Brokers.
In most cases, dividend yields are tantalizingly high for a reason (the stocks are cheap and rightly so) – and are simply not supported by the fundamental earnings power of the business. Cheap Dividend Stocks to Load Up On Given that a dividend yield is a function of the company's annual dividend and its stock's current price, it very often tells you more about the latter than the former. Even a mediocre dividend can suddenly produce a high yield if the stock price falls off a cliff.
I recently told subscribers of my stock letter Brush Up on Stocks to get more bullish on stocks because of robust insider buying in cyclical sectors like tech, banks, industrials, chemicals, airlines, autos, hotels, energy, mining, and brokerage and investment companies. Insiders would definitely not be doing this if — like Gundlach — they saw a recession on the way. Instead, they'd be on a buyer's strike, or at best they'd favor utilities or consumer non-discretionary companies.
Long term government bond yields have been transmitting a potentially recessionary signal that's shaken investor confidence and reverberated across worldwide markets. As investors fret over the weakening global economy, plunging bond yields may dissuade Beijing from potentially exercising what some fear could be a weapon in its trade dispute with the U.S.: Selling Treasuries (TNX). The historic lows in long-term interest rates, and the resulting inversion of the yield curve, suggests that China would be fighting what's currently the market's most powerful trend.
One of the most reliable harbingers of U.S. recession—short-term interest rates on U.S. Treasury debt higher than longer-term yields—has been flashing warning signs for months. The most straightforward explanation is that traders believe the Federal Reserve needs to lower interest rates. The good news is that the U.S. consumer remains healthy: Household spending excluding groceries and energy is rising about 4% a year, which is still the fastest sustained pace since 2007.
Given long-term demand uncertainties facing the industry, energy companies of all sizes should be paying out dividends that are at least as good as the nearly 2% yield on the S&P 500, he says. Still, it is hard to find big fans of energy stocks, even among investors focused on the sector. That's understandable, given that energy is by far the worst-performing group in the S&P 500 over the past decade, with an annualized return of 4.4%, against 14% for the index.
Medical and dental costs We retired early thanks to two key factors: My high earnings, and my wife's retirement health insurance benefits. My six-digit salary and our frugal lifestyle resulted in substantial wealth accumulation. But, without health insurance, we couldn't have afforded the risk of early retirement.
In the past, China has shown extraordinary restraint in response to U.S. tariffs and President Trump's critical tweets. Let us discuss your game plan if China retaliates, starting with the help of two charts. Please click here for an annotated chart S&P 500 ETF (SPY) Even though the Dow Jones Industrial Average (DJIA) is the most popular index, for analysis purposes, investors ought to focus on S&P 500 because the most money is tied to the S&P 500 Index (SPX) of the largest U.S. companies.
Advanced Micro Devices (NASDAQ:AMD) has been all over the map lately. Ideally, bulls will see shares reclaim prior uptrend support (blue line), as well as the 20-day and 50-day moving averages. If AMD stock can do that, a test of resistance between $34 and $34.50 is on the table.
The cover story in this weekend's Barron's offers stock picks for an energy sector rebound. Other featured articles discuss how the trade war is hitting tech's bottom line and why banks are not an alternative to utilities. Also, the prospects for an apparel retailer, a discount grocer, a genetic testing company and more.
Two Wall Street analysts at (GS) collaborated on a (GE) research report and reached a meaningful conclusion. Analyst Joe Ritchie, who covers industrial stocks, and analyst Alex Scott, who covers the North American life insurance industry, published a report comparing General Electric (ticker: GE) insurance reserves to other insurers. Goldman's report followed the negative report from forensic accountant Harry Markopolos, which challenged many GE long-term care insurance accounting assumptions, among other issues.