Interest Rates

On the continuing theme of dividend-paying large-cap companies, it’s pretty clear that institutional investors have been migrating towards these stocks because they don’t expect a lot of economic growth over the near term. In fact, we could get a major slowdown in the global economy in the near…

Only a few weeks back, silver was the toast of the town. The metal used in numerous industrial and electronic applications had been on a nice run-up since early February when the July silver futures contract was trading below $28.00 per ounce. The climb was steady, but at…

The first-quarter earnings season is upon us again and, depending on the results, it could help to drive trading over the next several months. Traders are looking for direction and reasons to invest, but the overseas risk in European debt and higher interest rates in China are not…

Many thought China was set to stall in 2011, but so far this has not been the case. The country’s gross domestic product (GDP) growth continues to be impressive coming in at 9.7% in the first quarter, above the estimate of 9.55%, according to the National Bureau of…

Most capital markets are due for a correction and that makes it more difficult to be a new buyer of stocks, bonds or commodities right now. All you have to do in the equity market is pull up a one-year stock chart on the S&P 500 Index and…

“When in doubt, look at the charts.” The above has been my motto for years. I believe that stocks and the stock market are leading indicators. They tell us what is going to happen with specific industries, various prices and the economy six to 12 months out. One…

The stock markets remind me of the real estate market in Toronto, Canada. While the U.S. housing market crashed, the real estate market in Toronto is as strong as it has ever been. In fact, builders can’t find enough lots to build homes on and developers can’t put…

The number of nails needed for the housing market’s coffin box has yet to be finalized. Consider just some of these startling numbers and trends: The median price of a resale home in the U.S. fell 5.2% in February 2011 to $156,100 (the lowest level since April 2002)…

Change is in the air, and it’s happening all around. There is growing expectation that both the Bank of England and the European Central Bank will soon raise their benchmark interest rates. The inflation rate in the U.K. just hit 4.4% in February, which is more than double…

So this is what the American dream has come down to: if you want to buy a house these days, you pay cash. Some say it was President Carter that started the dream, “every American should be able to own a home.” Others say it was Bill Clinton’s…

While things are looking up this year, there is going to be major upward pressure on interest rates going into 2012. The reason is price inflation, and it’s coming with some significant fervor. This isn’t any big prediction. All you have to do is follow the commodities market…

Okay, so we’ve had the grandest of grandest rallies. The Dow Jones Industrial Average is up a whopping 89% since its March 9, 2009 low. The majority of investors missed this great opportunity to make money in the stock market, because they were selling on fear instead of…

I look at the U.S. job report numbers released by the Labor Department on Friday, and I just need to laugh inside. It was a terrible report. But the news media didn’t see it that way. Most news sources said that the stock market was rallying on Friday…

The power of a few large-cap companies to sway stock market sentiment is great. As recent corporate events illustrate, not only does good earnings news move the market, but, increasingly, dividend news is moving share prices. This is big and it’s a sign of the new age of…

This morning comes news that McDonald’s Corporation (NYSE/MCD) same-store sales rose five percent in its latest quarter. While General Electric Company (NYSE/GE) is the bellwether stock I follow for indications on where the economy in general is headed, I follow McDonald’s stock to see how the majority of…

In each PROFIT CONFIDENTIAL editorial, we quote an older edition of this e-letter, usually an exact prediction I made and the forthcoming outcome. You’ll find this daily in a section below entitled, “What He Said.” Today’s “What He Said” paragraph is a quote from the summer of 2006,…

A company would have been bankrupt years ago if it was run like the U.S. government. Why do I say that? Because companies cannot go on forever just borrowing money while losing money on operations! But that is exactly what our governments do. What has conservatives like me…

The current momentum in stocks is well deserved. There’s no other place for large investors to invest their money and expect to get a return on investment greater than the rate of inflation. There’s also earnings momentum and that’s going to carry share prices further, at least over…