Article Index
Corporate Profits

Earlier this month, Jeremy Siegal, a well-known “bull” on CNBC, took to the airwaves to predict the Dow Jones Industrial Average would go beyond 18,000 by the end of this year. Acknowledging overpriced valuations on the key stock indices are being ignored, he argued historical valuations should be…

The Chinese economy had been growing at about 10% a year, like clockwork, for years. Now, China is in the midst of an economic slowdown, with growth expected to come in this year at 30%–50% below China’s five-year average growth rate. Why is China’s economy growing so slowly,…

Consumer spending in the U.S. economy is highly correlated to consumer confidence. If consumers are worried about the economy, they pull back on their spending. The Conference Board Consumer Confidence Index decreased by 1.63% in February from January. (Source: Conference Board, February 25, 2014.) And we see the…

Last night started out like every other State of the Union address I’ve seen… The President told us all the good stuff about the U.S. economy, like how American corporate profits are at a record high, how the stock market is at record highs, how millions of new…

Well, here we are with only a few days left for Ben Bernanke in his role as chairman of the Federal Reserve, which has also been aptly dubbed as America’s “money printing press.” In his final meeting as the head of the most powerful central bank in the…

Don’t for a second believe consumer spending in the U.S. economy is improving! J. C. Penney Company, Inc. (NYSE/JCP) has announced it will be closing 33 stores in the U.S. economy. By doing this, the retailer will save about $65.0 million a year starting in 2014. 2,000 employees…

As the realization that the political structure in America is steering far more leftward sets in, businesses and investors are beginning to fear the substantial increase in dividend and capital gains taxes. Many investors have been searching for dividend yield to sustain income due to the absence of…

Marissa Mayer, the new CEO of Yahoo! Inc. (NASDAQ/YHOO), recently spoke about her plans for the future of the company. As we all know, technology stocks in this sector are constantly evolving. At one time, Yahoo! was a giant among technology stocks; those days have long since passed.…

Earlier this year, I introduced a popular key indicator—the Baltic Dry Index—that measures the shipping rates of transporting bulk dry commodities worldwide. It is considered a key indicator because it gauges the demand of the basic raw material inputs that go into every factor of finished goods, building…

It is summertime, and you expect the trading action in the stock market to be subdued, but there’s a big divergence taking place, and it isn’t good. The Dow Jones Transportation Index is not confirming the primary trend of the Dow Jones Industrials or the S&P 500 Index.…

Ever since the beginning of June, when the stock market came out of its correction, there has been seesaw-trading action with three meaningful peaks and valleys in the S&P 500 Index. We’re now working on the fourth, and who knows where it will lead. Expectations for corporate profits…

The stock market is ticking higher in the face of continued weak economic news, and it’s mostly due to the good corporate profits we’re getting. For the most part, we’re so far seeing good corporate profits, because expectations were already reduced. Some companies are slightly reducing their outlooks…

Yahoo! Inc. (NASDAQ/YHOO), one of the former leading technology stocks, has been plagued with a stock price that just hasn’t moved for quite a long time, as opposed to several other technology stocks that have had significant price appreciation. Not only have corporate profits been evasive for the…

Big banks in the U.K. jumped on the news that the U.K. central bank would provide billions of pounds of new money to the big banks should Europe’s financial crisis take a turn for the worse. Too bad the rest of the citizens can’t be in line for…

Amongst everyone from the average American to the politicians campaigning in November’s election, one of the ideas often discussed (to get the U.S. economy going) is how to convince corporations to invest the record amounts of cash they have in the bank. Yes, corporations are holding record amounts…

Oil stocks have been targets for jokes and hatred from the average citizen for years. The common thinking is that oil stocks are evil organizations bent on destroying the world and generating as much corporate profits as possible along the way. But I think there’s a big gap…

The retail sector is a difficult area for many firms to generate strong corporate profits. Corporate profits tend to be at the whim of the fickle consumer. This is true for many firms in the retail sector, except for NIKE, Inc. (NYSE/NKE). NIKE has consistently outperformed many other…

The recent sale of Edvard Munch’s “The Scream” for almost $120 million is a clear indication of the market sentiment regarding hard assets. The sale took place at Sotheby’s Holding, Inc. (NYSE/BID) auction house, one of a few firms whose investment strategy is to auction off high-end art…

When it comes to investment strategy, many U.S.-based firms simply take the approach of blaming cheap foreign labor everywhere else and throwing up their hands as if there’s nothing they can do. That’s not much of a long-term investing strategy. There are some examples of U.S.-based firms that…

Just a few months ago, some economists were saying that the U.S. would escape the recession in Europe and the slowdown in China, to which I argued, “NOT A CHANCE.” About 40% of all profits earned by the S&P 500 companies come from overseas (source: Bloomberg; April 9,…