Month: June 2015

I believe most technical analysis is dubious.  I heard a saying on Fast Money, the other day, that the ships at the bottom of the sea are full of  charts.  None the less, I do believe divergence to be a reliable short term indicator.  There are some notable divergences showing up on my weekend screen before the latest Greek Drama and bank closings.  They are as follows: Dow Jones Transports Index has been getting pummeled.  This probably has more to do with the collapse in crude oil and the weakened prospects of moving it by train than a general economic … Read more

We recently purchased Dupont, sub $70, as stock is flirting at the lowest level all year.  The sell off is ironic because it was due to activist Nelson Peltz’s failed board seat proxy.  Peltz insisted he was keeping his stake and a couple of insiders added to theirs yet the stock moved lower.  The company is spinning of a performance chemical unit July 1. and investors will own a piece of this as well.  In last week’s Barron’s Round Table, famed investor Brian Rogers wrote “You never want to make bold statements, but based on what happened at DuPont [DD], I can’t imagine it underperforms … Read more

By KAREN HUBEJune 20, 2015Fixed-income annuities have never paid out so little, and yet had so much appeal. These annuities, which provide a lifetime of guaranteed income, are paying out 12% less, on average, than in 2011, and 25% less than in 2007. And yet sales jumped 17% last year, to their highest level in five years. Source: The Best Annuities – Barron’s The writer’s perspective: “It’s no wonder that with interest rates at such miserly levels, the enthusiasm for annuities has been rising.  I’ve had a  client and even some prospects mention them to me lately asking my opinion.  Candidly … Read more

It is likely that further gains in the market will be muted or even unlikely based on multiple valuation measures.  We look at several in this post.  As a matter of reference these observations are discussed in detail at our latest Investment Survival Workshops. If you have never been to one, they are worthwhile( no one has ever rated them less than good or excellent) and if you have attended a workshop in the past, we update these events with current and timely topics so please join us for the next one.  We keep a schedule of the upcoming workshops at workshops.saxangle.com Based on … Read more

Buybacks and Dividends All That’s Left in S&P 500, Goldman Saysby Joseph CiolliMay 19, 2015 — 10:00 PM MDT The $1 trillion that U.S. companies are on track to return to shareholders this year will constitute the market’s entire return in 2015, according to Goldman Sachs Group Inc.Dividends and buybacks will be responsible for supporting a market where the median stock in the Standard & Poor’s 500 Index is trading at 18.2 times earnings, putting it in the 99th percentile of historical valuation, the firm said in a note to clients. Goldman Sachs forecasts that the S&P 500 will rise … Read more

EU Prepares for Worst as Greece Drives Finances to Brinkby Radoslav TomekPatrick DonahueJune 12, 2015 — 5:13 AM MDT Updated on June 12, 2015 — 10:17 AM MDTShare on FacebookShare on Twitter Greek Debt: Will EU Pressure Bring Deal or Default? Don’t Miss Out — Follow Bloomberg OnFacebook Twitter Instagram YouTubeRecommendedSalvation to Catastrophe: What Might Happen to GreeceGreece Counts Cost of One Man’s GambleElizabeth Warren Says Dimon’s Irked Because She Knows His Tricks Greek Debt: Will EU Pressure Bring Deal or Default?Share on FacebookShare on TwitterEuropean officials are preparing for the worst as Prime Minister Alexis Tsipras’s brinkmanship pushes Greece’s … Read more