Föhrenbergkreis Finanzwirtschaft

Unkonventionelle Lösungen für eine zukunftsfähige Gesellschaft

Posts Tagged ‘Stocks’

Italy’s Politics Fail to Rattle Its Financial Markets

Posted by hkarner - 14. Mai 2018

Date: 13-05-2018
Source: The Wall Street Journal

A likely government coalition, once considered a threat to the Italian economy and the eurozone, hasn’t stopped its stocks and bonds

Italy may be led by a coalition of the hard-right League party, led by Matteo Salvini, left, and the antiestablishment 5 Star Movement, led by Luigi Di Maio, right.

In Italy, a political pairing that investors once considered a worst-case scenario is set to become the new government, yet Italian stocks continue to outperform all other major developed markets this year.

The anticipated government coalition between the hard-right League party and the antiestablishment 5 Star Movement, a combination long considered by analysts to pose a major risk to the country’s economy and the eurozone itself, hasn’t stopped Italian stocks and bonds from outperforming.

The country’s headline stock index, the FTSE MIB, is up 11% this year, well above the eurozone’s broader Euro Stoxx 50 index and the S&P 500, each up around 2%. Den Rest des Beitrags lesen »


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Stocks and Bonds Are Going Nowhere Fast, Stranding Investors

Posted by hkarner - 8. Mai 2018

Date: 07-05-2018
Source: The Wall Street Journal

Despite a strong economy and robust corporate earnings, investors aren’t piling in—but they aren’t bailing either

Traders working on the floor of the New York Stock Exchange on Friday after the U.S. Labor Department reported the unemployment rate fell to its lowest level since December 2000.

U.S. stocks and bonds appear deadlocked despite a positive response to April’s “Goldilocks” jobs report, reflecting the conflicting impulses of a strong economy against rising interest rates and creeping fears about inflation.

Lingering concerns over the durability of the global growth story and the likelihood of tightening monetary policy have left many investors in a rut, neither inspired to pour money into the market nor convinced they should bail out just yet.

Markets’ inability to get a meaningful boost from the glut of strong corporate earnings over the past few weeks has sapped confidence further. And other events that likely would have jolted the markets last year, such as the unemployment rate falling to its lowest level in nearly two decades and Apple Inc. announcing an additional $100 billion in share buybacks, have failed to spark a sustained rally. Den Rest des Beitrags lesen »

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For Many Investors, the Tech Rout Is ‘Nothing to Lose Sleep Over’

Posted by hkarner - 10. April 2018

Date: 09-04-2018
Source: The Wall Street Journal

Some are calmly riding out the market’s turmoil, while others see an opportunity to buy shares of technology stars

When the rout in technology heavyweights like Facebook Inc., Amazon.com Inc. and Alphabet Inc. spilled over into the broader market in late March, many feared that individual investors would flee for the exits, exacerbating the declines.

Instead, Alex Boucher, a 22-year-old college student in Westfield, Mass., added to his position in chip maker Nvidia Corp., seeing a chance to pick up the pricey stock at a discount.

San Jose, Calif.-based contractor Michael Chu, 34, shrugged off a $2,700 loss in his tech-heavy index-fund holdings, betting the technology selloff was “just one of those downturns that will pick back up.”

And in Dallas, portfolio manager Craig Hodges took only two phone calls from clients on a day when the Dow Jones Industrial Average fell nearly 500 points, a pittance compared with the 10 to 15 investors he would hear from daily at the peak of the 2008 financial crisis.

It isn’t that investors aren’t worried about the stock market: Roughly 37% of individual investors expect stocks to fall over the next six months, according to an American Association of Individual Investors survey, the highest share since September. And it isn’t that individuals don’t own technology shares, either: As investors have loaded up on index funds, many are more exposed to the tech sector than ever.
Den Rest des Beitrags lesen »

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Can Big Tech Stocks Grow Without Limits?

Posted by hkarner - 8. April 2018

Date: 07-04-2018
Source: The Wall Street Journal By Jason Zweig

Traditionally, the bigger companies have gotten, the harder it has become for them to keep growing at the same rate. Has that changed?

The more flippant the investing cliché, the more you should question it. Consider “the bigger they are, the harder they fall.”

At their lows this week, the technology shares that have until recently been the stock market’s darlings — Facebook, Amazon.com, Netflix, Google’s parent company Alphabet and other giants — had fallen more than 17% since March 13. Over the same period, U.S. stocks overall fell 8%.

At first, the drop in big tech stocks seems driven by bad news that is bound to worsen: Facebook improperly sharing personal data, President Trump criticizing Amazon, European regulators investigating potential antitrust violations. Den Rest des Beitrags lesen »

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Cashing In: Why Cash Should Be in Your Portfolio Again

Posted by hkarner - 6. April 2018

Date: 06-04-2018
Source: The Wall Street Journal

As volatility returns to the markets and interest rates rise, cash is turning out to be a safe asset

The Federal Reserve’s rate increases and the Trump administration’s fiscal profligacy have pushed up the yield on cash and cash-like instruments to the highest level in years.

Holding cash is investment heresy after a decade of the lowest interest rates in history. It is time to consider the sacrilegious and add cash back into portfolios.

The value of cash was demonstrated in the first quarter: Both stocks and bonds lost money—the first quarter that has happened since the aftermath of Lehman’s failure in 2008. Cash turned out to be the safe asset. Den Rest des Beitrags lesen »

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Big Tech’s Decline Hits a Heavily Owned Stock Sector

Posted by hkarner - 30. März 2018

Date: 29-03-2018
Source: The Wall Street Journal

Investors piled into hot technology stocks last year and reaped outsized gains. Now the sector’s sharp reversal stands to have the opposite effect.

High-flying companies including Microsoft Corp., Alphabet Inc., and Facebook Inc., were among the most widely held last year by institutional equity strategies, such as pension funds and endowments, according to eVestment data. In the final three months of 2017, more than 22% of such portfolios held Microsoft, up from less than 21% a year earlier, making the technology giant the most widely held.

Alphabet, the second most owned company, was in nearly 22% of portfolios in the fourth quarter, up from less than 21% a year ago. And Facebook, the sixth most widely held company, was in 16% of portfolios, versus 14% a year earlier, the eVestment data show. Apple Inc. and Amazon.com Inc., technically a consumer stock, also cracked the top 10 in ownership breadth. Den Rest des Beitrags lesen »

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Europas Firmen zahlen mehr Dividende – Österreich abgeschlagen

Posted by hkarner - 7. März 2018

6. März 2018, 15:55 derstandard.at

Dividenden tragen auf lange Sicht ein Drittel zur Aktien-Gesamtperformance bei

Wien – Europäische Firmen zahlen ihren Aktionären besonders viel Dividende – heuer werden sie 323 Mrd. Euro ausschütten, um 7,7 Prozent mehr als 2017, erwartet Allianz Global Investors. Weltweit an der Spitze steht Neuseeland mit 5,11 Prozent Dividendenrendite, gefolgt von Russland (4,83) und Portugal (4,47). Österreichische Unternehmen rangieren mit 2,22 Prozent erst auf Platz 25, im unteren Drittel. Deutschland liegt mit seinen 2,51 Prozent nur drei Plätze vor Österreich – Japan jedoch mit 1,94 Prozent hinter Österreich, ebenso wie US-amerikanische Unternehmen (1,89 Prozent). Den Rest des Beitrags lesen »

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If You Didn’t Sell Stocks This Month, You’ve Probably Got FOMO

Posted by hkarner - 1. März 2018

Date: 28-02-2018
Source: The Wall Street Journal

After getting burned during the financial crisis, everyday investors say they gave up on trying to time the market

The market’s February gyrations were a shock, coming after a prolonged period of calm and steadily rising share prices.

Individual stock investors jolted by February’s market tumult said fear of missing out on the next leg of the bull market still outweighs fear of a big correction.

The market’s February gyrations were a shock, coming after a prolonged period of calm and steadily rising share prices. Early in the month, the S&P 500 and Dow Jones Industrial Average both fell into correction territory—marked by a 10% decline from their most recent highs—while the latter experienced its biggest-ever intraday point swing.

Yet many individual investors said they had been humbled trying to time big market moves in the past and so didn’t try to do so this time. Their calm may have helped share prices rebound. As of Tuesday, the S&P and Dow were up 6.3% and 6.5%, respectively, from their Feb. 8 lows and are now down just 4.5% each from their Jan. 26 highs. Both indexes are also up year to date, after briefly pulling into negative territory early on. Den Rest des Beitrags lesen »

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The Market Dogs That Didn’t Bark

Posted by hkarner - 28. Februar 2018

Anatole Kaletsky is Chief Economist and Co-Chairman of Gavekal Dragonomics. A former columnist at the Times of London, the International New York Times and the Financial Times, he is the author of Capitalism 4.0, The Birth of a New Economy, which anticipated many of the post-crisis transformations of the global economy. His 1985 book, Costs of Default, became an influential primer for Latin American and Asian governments negotiating debt defaults and restructurings with banks and the IMF.

Did February’s equity-price reversal mark the end of the bull market, or was it just a temporary correction? In addressing this question, one must look not just at the stock market, but also at oil prices, long-term US interest rates, and currencies.

LONDON – Three months ago, I argued that rising stock markets around the world were a consequence of improving economic conditions, not a sign of “irrational exuberance.” Since that commentary was published, share prices accelerated upward, and some “irrational exuberance” did start to appear, leading to a sharp fall in early February. Although most stock markets are still well above their levels of last November, the question lingers: Did February’s reversal mark the end of the bull market, or was it just a temporary correction?

The strongest evidence, as Sherlock Holmes might have remarked, comes from the dog that didn’t bark. More precisely, it comes from three vehement guard dogs – oil prices, long-term US interest rates, and currencies – that slept peacefully through the commotion on Wall Street. Den Rest des Beitrags lesen »

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Stocks Are Probably Overpriced, but Don’t Be Too Sure

Posted by hkarner - 25. Februar 2018

Date: 24-02-2018
Source: The Wall Street Journal By Jason Zweig

The more overvalued stocks have gotten, the better they have performed. That might not be over yet.

For years now, market strategists — and financial columnists, for that matter — have been warning investors to expect low returns. Nevertheless, stocks have delivered great results.

Over the five years through Thursday, the S&P 500 has earned an average of 14.6% annually, including dividends; in the last 12 months, it’s up 16.7%. The louder the warnings became, the better stocks have performed.

In their latest survey of global investment returns, released this week, financial researchers Elroy Dimson of Cambridge Judge Business School, and Paul Marsh and Mike Staunton of London Business School explore why. Den Rest des Beitrags lesen »

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