By Michael Lombardi, MBA | October 20, 2014
It’s widely expected that at the end of this month, the Federal Reserve will end its third round of quantitative easing (that began in September of 2012). This is QE3, where the Federal Reserve was printing $85.0 billion of new money every month and using it to buy U.S. Treasuries and mortgage-backed securities (MBS). In the beginning of 2014, the Fed started reducing the amount of money it was printing … Read More
By Michael Lombardi, MBA | October 17, 2014
Over the past few months, I warned my readers the stock market had become a risky place to be. While I also suggested euphoria could bring the market higher than most thought possible—to the point of irrationality—the bubble has now burst. Key stock indices are falling and fear among investors is rising quickly.
Please look at the chart below of the Chicago Board Options Exchange (CBOE) Volatility Index (VIX). This … Read More
By Michael Lombardi, MBA | October 15, 2014
Now that the Dow Jones Industrial Average has fallen 1,035 points (six percent) from its mid-September peak, the question investors are asking is “how far will she go?” For small-cap investors, the drama is greater, as the Russell 2000 Index has fallen 12.5% from its July peak.
Since 2009, every market pullback presented investors with an opportunity to get back into stocks at discounted prices. Even some editors here at … Read More
By Mitchell Clark, B.Comm. | October 15, 2014
If there’s one thing the stock market needs, it’s a distraction from global growth worries and geopolitical events. And corporate earnings are the ticket for that as this season’s numbers are starting to pour in.
Pharmaceutical benchmark Johnson & Johnson (JNJ) once again beat Wall Street consensus, generating another good quarter of both sales and earnings growth.
The company completed a major divestiture of its ortho-clinical diagnostics division during its … Read More
By Mitchell Clark, B.Comm. | October 8, 2014
My favorite pharmaceutical company for long-term investors is still Johnson & Johnson (JNJ), for now.
This business has managed to produce very good financial growth in recent history and its share price has appreciated exceptionally well considering this is a DOW stock, especially over the last two years.
Large-cap companies can’t avoid the business cycle and they can’t avoid industry-specific trends. For pharmaceuticals in particular, the drug development cycle can … Read More
By Mitchell Clark, B.Comm. | October 7, 2014
More good numbers are coming down the earnings pipeline, and if the broader stock market is going to take a well-deserved rest, corporate results are a positive indicator going into 2015.
Global Payments Inc. (GPN) is a very good business in terms of its financial growth. The Atlanta-based company is one of the world’s largest processors of credit and debit card payments and business is growing by the double-digits.
The … Read More