Bank of America has emerged as a strong investment choice following the devastating 2008 financial crisis. Most recently, it reported that it is positioned well enough to sustain any similar financial crisis by passing the Federal Reserve’s stress test. (more…)
Healthplan insurers run higher (ESRX, WCG)
Molina Healthcare beat earnings after the bell last night and raised FY guidance. All insurance plan stocks are up on the news. There are 2 companies left to report, and I’m going long both of them (more…)
Front-running the Fed – Buying NLY
by Ren Richardson, Learning Markets analyst
It is difficult to overstate just how thoroughly the Federal Reserve has reshaped the investing landscape during the last several years. While many investors have become accustomed to this environment (adaptation being one of the foremost traits of a savvy investor), it is instructive to step back and realize just how uniquely challenging this hunt for yield has become relative to previous eras. Not too many years ago, if you were told that yields of 5-6% would be what you could expect from any number of corporate junk bonds – and to be told such with a straight face – you would have wondered what bizarre curiosity had befallen financial markets. (more…)
Strangle the Bankers – Calls and Puts on BAC
This is kind of a hedge against my position that I posted today on ABX. In that trade, I am clearly quite bearish, but history leans heavily towards a positive reaction to the FOMC announcement. I can be skeptical all I want but it probably makes sense to have a little coverage. (more…)
3D Systems – a long term growth story
Additive manufacturing is an up and coming technology and manufacturing process that has gained the investing world’s attention. 3D systems is one of 2 big players in this space and they are reporting earnings tomorrow. Looking at the stock chart, you can see that there has been tremendous buying pressure leading up to earnings. Easy to think that the stock could sell off after earnings, but this is a pretty high growth name, that is just starting to gain the attention of moms and pop. Also, the overall market is seemingly on stable ground heading into earnings (FOMC decision did not rock the market and Apple did not disappoint) so the environment is benign for individual earnings growth stories to take hold
Understanding the U.S. Treasury’s TIC Data
Who buys U.S. Treasuries? Which countries are buyers and sellers? The U.S. government keeps tabs on that information and it can help us as investors. We show you how to find it and what it means.
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How Does a Liquidity Trap Affect Investors?
A liquidity trap occurs when the central bank keeps lowering interest rates all the way to zero in an effort to stimulate the economy but the economy does not respond as desired. Investors need to understand liquidity traps and how they affect your portfolios.
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Risks of Monetizing U.S. Government Debt
The Treasury and Federal Reserve are currently monetizing U.S. Debt. This is a risky move and has not turned out well in other economies. Learn more about these risks in this video.
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Is the Fed Really Running the Printing Presses?
This phrase "printing presses" -- when used to describe the Fed's actions -- is misleading and does not accurately portray the risks and opportunities of investing during a period of rising inflation or rising inflationary expectations.
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How Quantitative Easing Works
Quantitative easing is one of the bigger arrows in the Fed’s quiver. (more…)