WASHINGTON — President Donald Trump suggested Wednesday evening that a soaring stock market might be “in a sense” reducing the national debt, a statement that is not true, in any sense. “The country — we took it over and owed over $20 trillion,” Trump told the Fox News personality Sean Hannity, following similar remarks he made earlier Wednesday in a speech he delivered on tax issues in Pennsylvania. “As you know the last eight years, they borrowed more than it did in the whole history of our country. So they borrowed more than $10 trillion, right? And yet, we picked up $5.2 trillion just in the stock market. Possibly picked up the whole thing in terms of the first nine months, in terms of value.” “So you could say, in one sense, we’re really increasing values. And maybe in a sense we’re reducing debt.” The comments represented the latest in a long-shifting series of positions on debt issues for Trump as both … [Read more...] about Trump makes puzzling claim that rising stock market erases debt
Foreign stocks have had a fine year, up more than 20 percent in developed countries and 27 percent in the emerging markets, and more U.S.-based investors have gone along for the ride. But now analysts warn there are factors that can derail the bull run. They note that price-to-earning ratios on foreign stocks are back near pre-financial crisis highs. Five of the top 10 ETFs this year, as ranked by new investor money, track the MSCI EAFE developed markets index and the MSCI Emerging Markets Index. These overseas ETFs have taken in a combined $62 billion from investors through the end of September — that's double the haul for top S&P 500 ETFs, according to FactSet Research Systems. There are more U.S. bond ETFs (three) than S&P 500 portfolios (2) in the top 10 for new ETF money in 2017. … [Read more...] about The biggest stock market trade of the year may be at a tipping point
While U.S. corporate pensions regained some swagger after Wall Street’s record run this summer, they are still far from their heyday before the 2007-2009 credit crunch when they appeared to be in great shape to meet retirement obligations. Rockbottom bond yields around the world remain the biggest obstacle for many pensions as they try to backfill a $400 billion funding gap and shore up funds to cover payments to current and future retirees. This low-rate climate is not expected to change much even as the Federal Reserve prepares to reduce its $4.2 trillion of bond holdings possibly from next month and investors speculate whether the European Central Bank may slow its bond purchases. "We are still not back to where we were before the financial crisis, despite the great run in equities and fixed income markets over the last eight to … [Read more...] about US pensions stuck in the red despite stock market boom
William Cline is going against the grain. Cline, a well-known economist, isn’t convinced that the stock market is wildly overvalued. That’s an increasingly lonely view. “Warning Signs Mount as Stocks Stumble,” the Wall Street Journal headlined this week. “Investors are running out of reasons to keep buying U.S. stocks, exposing a growing number of warning signs,” the Journal wrote. The most commonly cited are high P/E ratios, meaning the relationship between stocks’ prices (the P) and their profits or earnings (the E). A June survey of investment managers by Bank of America Merrill Lynch found that 84 percent felt U.S. stocks were the most overvalued in the world. Going back to 1936, the average P/E for the reported earnings of the Standard & Poor’s 500 stocks has been about 17, notes Howard Silverblatt of S&P. Recently, the P/E has been about 24. Some tech companies have especially high P/Es. Not so fast, says Cline in a short … [Read more...] about Is the stock market crazy — or just giddy?
The risk of a stock market crash is highest over the next 10 weeks if historical price patterns repeat, according to Investormint. The sobering reality for investors is that the weakest month of the year and the weakest year of the decade is almost upon us. (PRWEB) August 22, 2017 A new research study conducted by leading financial publisher, Investormint, shows that the potential for a stock market crash is higher over the next 10 weeks than at any other time this decade if history is to be believed. A team of research analysts examined the magnitude and duration of stock market crashes since 1900 and uncovered a mysterious pattern of major declines. “The results highlight the high stakes game of chicken that investors are playing by staying fully invested at this time”, said George Windsor, Editor-In-Chief at Investormint. The study highlights that major stock market crashes took place in seven of the ten decades last century. And the trend continued in the … [Read more...] about 100+ Year Study: Stock Market Crash Risk High
It became quite clear to Jim Cramer on Monday that the stock market was trading on, well, nothing. "I've thought a lot about these periods and I've learned that there is such a thing as random movement periodically, and it always gets ascribed to something. The market's not always logical and the action doesn't always have to have a concrete cause," the "Mad Money" host said. "It might as well be ascribed ... to the eclipse." For example, the Nasdaq extended its losing streak, led by technology stocks. FAANG, Cramer's acronym for the stocks of Facebook, Apple, Amazon, Netflix and Google, now Alphabet, all opened lower. In due course, analysts scrambled to find explanations for the tech giants' declines, compiling obituaries about potential issues that could doom the stocks once and for … [Read more...] about Cramer: Don’t panic about the stock market’s useless August action
A CEO mutiny against President Trump. An escalating nuclear threat with North Korea. Uncertainty about healthcare reform. The departure of top Trump strategist Steve Bannon.So far the mounting turmoil has not rattled Wall Street to a significant degree, with the stock market still hovering near record highs.There’s an old saying that stocks often “climb a wall of worry,” and this summer it seemed investors stopped worrying much at all about the political noise emanating from Washington.“We’ve gone a very long time without so much as a modest correction” in stock prices, said Ryan Detrick, senior market strategist at investment firm LPL Financial. Although stocks indexes certainly have headed south on particular days, a correction usually is defined as a decline of at least 10% in a stock, bond, commodity or index. The market’s ascendant attitude might be changing because U.S. political unrest has become so incessant of late, some … [Read more...] about How long can the stock market ignore the troubles in Washington?
show chapters Vadim Zlotnikov: High earnings expectations hurt opportunity for positive surprises Monday, 10 Jul 2017 | 9:56 AM ET | 02:51 Stocks have sailed along for a year and a half without a significant correction, but analysts see increasing signs of trouble ahead. Global strategists from Citigroup and JPMorgan both fired off warnings Monday about events that could affect the rally in equities. Citigroup pointed to rising rates as a threat, and JPMorgan analysts said they are concerned second-half earnings may not be as robust as the market is … [Read more...] about Two catalysts that could trigger a stock market correction
Getty Images Gold prices rose on Wednesday as the dollar weakened and stock markets fell after a delayed U.S. healthcare bill increased doubts about President Donald Trump's ability to pass economic stimulus measures. The dollar sank to its lowest since November as Japan's yen strengthened and the euro hit a one-year high when European Central Bank President Mario Draghi hinted that stimulus could be trimmed this year. A weaker dollar makes dollar-denominated bullion cheaper for holders of other currencies and can increase demand. Spot gold was up 0.22 percent at $1,249.6899 an ounce, while U.S. gold futures settled at $1,249.10, up $2.2. Gold prices have been held down in recent months as stock markets rose and hit record highs in the United States and … [Read more...] about Weaker dollar and stock market jitters drive gold higher
show chapters Faber: I would rather invest in Europe than US Wednesday, 31 May 2017 | 12:00 PM ET | 02:48 Stocks are near record highs, driven by surging tech shares, a sharp contrast with the bond market, where interest rates have been sinking on worries the economy just isn't getting enough juice for growth to pick up. The S&P 500 also is just a short hop to record territory, and it too tells a very different story from the Treasury market, where the belief is that the Federal Reserve may have to stop raising interest rates after its next hike in mid-June … [Read more...] about Bond market’s recession warning is at odds with the stock market trading near all-time highs