When you buy a stock, you shouldn’t focus on how much you think it’ll be worth next week, next month, or even next year. What you should focus on instead, as I do below with Bank of America , is how much it’ll likely be worth in a decade or two, after allowing the law of compounding growth to work its magic.
Category: Financial Markets
Industrials Keep Dow Away from 20,000
U.S. stocks pared some gains in afternoon trading on Tuesday, pulling the Dow Jones Industrial Average away from the elusive 20,000 mark as losses in industrials slightly offset gains in technology and financial shares. The blue-chip index, which came within 20 points of hitting the milestone earlier, was trading near session lows.
2 Dividend Stocks That Are Too Unsafe
To sidestep that imminent sell-off, investors should be very choosy with their dividend plays next year. Dividend stocks with poor earnings growth, unsustainable payout ratios, or inconsistent dividend hikes should be avoided at all costs.
Market Recon: You Can’t Put Your Head in the Sand
Going forward, investors will have to measure the extent that the President-Elect’s proposed policy shifts have pulled forward into 2016, the gains that otherwise might have been realized in 2017. Measure against what, exactly? Currently, the S&P 500 is trading at more than 22x 12 month trailing earnings.
Rev’s Forum: Holiday Trading Is a Tendency, Not a Certainty
” A Santa Claus rally is a surge in the price of stocks that often occurs in the week between Christmas and New Year’s Day. There are numerous explanations for the Santa Claus Rally phenomenon, including tax considerations, happiness around Wall Street, people investing their Christmas bonuses and the fact that the pessimists are usually on vacation this week”.
Global Stocks Mixed on Thin Trading, Dollar Falls: Markets Wrap
Global stocks were mixed on a day when many markets were closed for a holiday. Japanese shares fell as the yen gained against the dollar, while Chinese equities recovered from earlier losses and Brazil’s stocks led gains among major global gauges amid thin liquidity.
How Ugly Can the Bond Rout Get?
The beauty of bonds comes from the predictability of their payment schedules. That predictability is maintained through the threat of default; if the bond payer doesn’t pay on schedule, the bond holder has recourse that often includes taking control of the defaulting bondissuer.
3 Reasons to Be Bullish Heading Into 2017
November 8 couldn’t have come soon enough. Not only is the U.S. presidential election finally over, but the stock market has rallied to new all-time highs since then.
These Stocks Could Double in 2017
Stocks that have been beaten down by pessimistic investors always have the potential to soar if things start to go right. They also have the potential to tumble further, punishing investors for betting on a turnaround that never surfaces.
Forget Altria: These 3 Stocks Doubled Last Year
Altria has smoked the competition and many other stocks when it comes to long-term performance, but this year there were more than a few stocks that did even better. Image source: Flickr via Claudio Toledo.
How Risky Will 2017 Be for Philip Morris International?
Tobacco has been a long-term winner for investors, and although it has been a separate publicly traded company for less than a decade, Philip Morris International has done just as well as many of its longer-tenured peers in the industry. However, Philip Morris faces several different types of risks, and each of them has caused investors some concern in the past year.
Boeing Sends Sub-Hunters to Norway
Earlier this year, Boeing Defense head Leanne Caret laid out a plan to refocus Boeing’s efforts away from fighter jet production, and toward the sale of auxiliary aircraft such as transports and surveillance and maritime patrol aircraft. Earlier this year, we told you about Boeing’s big $3.2 billion sale of nine P-8A Poseidon maritime patrol aircraft to Great Britain.
China Bank Says Bond Guarantee Forged as Market Mood Worsens
China Guangfa Bank Co. said Monday that documents and seals for a letter claiming to guarantee bond payments by the lender were forged, in the second such incident in the nation this month, raising concern about transparency in the world’s third-biggest bond market.
China Inc. Struggle to Sell Bonds Poses Quandary for Economy
China’s roaring bond engine is stalling heading into the new year, posing a quandary for policy makers as they try to curb leverage while keeping economic growth on track. Bond issuance in December by Chinese companies and banks is 142 billion yuan less than the amount of notes they must repay this month, data combined by Bloomberg show.
Allergan, Apple, Costco: Doug Kass’ Views
Doug Kass shares his views every day on RealMoneyPro. Click here for a real-time look at his insights and musings.
Asian stocks lower in light trading after Christmas
KEEPING SCORE: The Shanghai Composite Index fell 1.1 percent to 3,075.11 and Tokyo’s Nikkei 225 lost 0.1 percent to 19,410.43. Seoul’s Kospi gained 0.1 percent to 2,037.
Stocks Under $10 Portfolio: Look for Light Volume This Week
The following is an excerpt from the Stocks Under $10 Weekly Roundup originally sent to Stocks Under $10 subscribers on Dec. 23. Click here to learn more about this dynamic portfolio managed by David Peltier. Stocks ticked lower this week on light volume, ahead of the Christmas holiday.
What Is the Santa Rally?
The term refers to the idea that the stock market tends to rise during the period just before Christmas through the end of the year. In its length, the phenomenon is actually closer to Hanukkah, with the rally period being the last five trading days of the calendar year and the first two trading days after New Year’s Day.
Will Wynn Resorts, Limited Raise Its Dividend in 2017?
At as high as 7.5% dividend yield in the recent past , Wynn has since slashed its dividend to now just 2% over the trailing 12 months. Things are starting to look good for Wynn’s underlying business once more — could this lead to a dividend raise in the year ahead? Wynn Resorts stock rose massively in the run-up to 2014 thanks largely to the rise in Macau, the gaming mecca off the coast of Mainland China that, at its height, was earning around seven times the gaming revenue of Las Vegas.
2 Winning Stocks From 2016 That Surprised the Market
After a tumultuous year of headlines and a strong showing for major U.S. indexes, 2016 is finally nearing its end. On this episode of Industry Focus: Consumer Goods , Vincent Shen and Fool.com senior contributor Asit Sharma take some time to reflect by sharing their favorite surprise winners of 2016 in the consumer and retail space, before turning their attention to some important trends and takeaways for 2017.
3 Great Income Stocks That Could Double Their Dividends
Most income investors search for stocks based on yield alone, which can be a huge mistake. I’d argue that it is a far better strategy to look for dividend stocks that have strong earnings power and low payout ratios.
3 High-Yield Dividend Stocks to Buy in January
High-yield dividend stocks are favorites among income investors, but not all dividend stocks are created equal. As yield and stock price are inversely related, chasing high yields could trap you if the stock’s falling because of deteriorating growth prospects or troubles within the company.What you need is rock solid companies with strong growth catalysts that can support high dividends and yields going forward.
The Worst Silver Stock in 2016
In a year when the average silver stock gained 137%, and every single one of them handily beat the S&P 500, calling one the “worst” reveals the title to be subjective. Coeur Mining was far and away the best silver miner of 2016, rising 266%, substantially ahead of Hecla Mining , which is up “just” 186% year to date.
This Stock Could Turn a $10,000 Investment Into $1,000 in Future Annual Cash Flow
“The thing is, if you’re just oogling fat current dividend yields you are missing the more profitable boat. When it comes to dividend investing, the far smarter play is to zero in on companies that consistently increase their dividend payouts.”
Huntington Ingalls Bags $1.5 Billion Warship Contract
According to recent media reports, the U.S. Navy has just floated a plan to grow its battle fleet from the current 273 warships to 355 — an increase of 82 ships. So file this story under “one down, 81 to go.”
5 Ways Your Retirement Can Easily Be Ruined
Nearly all Americans share one goal: they want to be able to hang up their work coat after many years in the labor force and know that they’re financially set for retirement. Unfortunately, this is a goal that’s being reached by a depressingly low number of Americans.
Paschi Seeks State Aid as Italy Sets $21 Billion for Banks
Italy’s government is set to rescue Banca Monte dei Paschi di Siena SpA after the world’s oldest lender failed to raise 5 billion euros from the market, in what will be the country’s biggest bank nationalization since the 1930s. Italy will plow as much as 20 billion euros into the country’s banks providing both emergency liquidity guarantees and capital injections, as more lenders may seek lifelines soon.
What Happened in the Stock Market Today
Stocks rose on Friday ahead of a three-day weekend in observance of the holidays. The Dow Jones Industrial Average Biotech Synergy Pharmaceuticals, which specializes in gastrointestinal therapies, soared 22% after it announced positive clinical test results.
Better Buy: Las Vegas Sands Corp. vs. MGM Resorts
Because each casino operator has placed separate bets on the gaming market, investors will want to know which makes the better investment as the industry’s rebound gains momentum. Sands and MGM have their feet firmly planted in the two biggest gambling markets, Las Vegas and Macau, but that’s where the similarities end.
Deutsche Bank, Credit Suisse Settle U.S. Subprime Probes
Deutsche Bank AG and Credit Suisse Group AG agreed to pay a combined $12.5 billion to resolve U.S. investigations into sales of the toxic debt that fueled the financial crisis, putting behind them a major dispute that undermined confidence in the banks and raised questions about their turnarounds. Deutsche Bank will pay $7.2 billion and take a $1.2 billion pretax charge this quarter, while Credit Suisse agreed to a $5.3 billion deal and will recognize a $2 billion hit to earnings, the banks said in separate statements early Friday.
Why Sears Holdings, GNC Holdings, and Pengrowth Energy Slumped Today
Friday once again was a letdown for those who had hoped that Dow 20,000 would happen at some point during the week. Stocks gained slightly, but the Dow’s rise was limited to 15 points, leaving it 66 points shy of the fabled milestone.
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This week has proven to be a disappointment for bullish investors who were hoping to see the Dow Jones Industrials reach a historic 20,000 milestone. Friday brought slight gains to the overall stock market, but they weren’t enough to push the Dow into uncharted territory, and advances for most major market benchmarks were limited to less than a quarter of one percent.
Tobacco Stocks: What to Watch in 2017
Tobacco stocks have been extremely successful investments for long-term shareholders, and as the calendar changes, investors are looking closely at what will affect tobacco stocks in 2017. Stalwarts like Altria Group from Altria gave U.S. investors another opportunity to jump into the international tobacco area as the company went up against British American Tobacco and other international competitors.
Stocks End the Week on a Positive Note
Wall Street ended the week on a positive note on Friday as investors doubled down on a rally fueled by optimism that President-elect Donald Trump’s policies will boost economic growth. The Dow Jones Industrial Average, which briefly came within striking distance of the historic 20,000 level earlier this week, recorded its seventh straight weekly gain.
Deutsche Bank Reassures Staff of Strength After U.S. Settlement
Deutsche Bank AG moved to reassure employees of its financial strength after reaching a $7.2 billion settlement with U.S. regulators over toxic subprime debt, and said it found no evidence the firm had breached sanctions against Russia in a separate probe. The lender, which saw its stock plunge this year amid legal concerns on multiple fronts, said in a memo to staff Friday that it doesn’t expect the settlement to affect its credit rating or its ability to operate in the U.S., and it anticipates paying the coupons on all its debt instruments.
Stocks Struggle for Momentum, But Weekly Gains in Sight
U.S. stocks were little-changed in their final trading day before the holidays on Friday, and while indexes remained on track for a positive week, the “Santa rally” that has taken indexes to repeated records appeared to stall with few catalysts to spur buying. While the Dow once again appeared unlikely to pierce through the closely watched milestone of 20,000, the blue-chip index is set to log its seventh weekly gain in a row.
Best Fashion Stocks of 2017
Clothing brands and the apparel industry can be a fickle place, with many of the most iconic apparel brands actually suffering among a changing consumer landscape. This list of clothing retail stocks breaks down the sector to try to find the best publicly traded fashion stocks.
Where Did the Stocks Making New Highs Go?
In yet another sign that we are late in the rally, we saw the number of stocks making new highs on the NYSE contract to levels not seen since before the election. Let me remind you that the S&P is a mere 10 points off the high.
Tiny Stocks Find a Friend in Trump
U.S. equities have been hitting new record highs, with small-cap value stocks and related exchange traded funds leading the broad market rally, after Donald Trump won the presidential elections and bolstered the economic outlook. The benchmark Russell 2000 Index, a widely observed measure of U.S. small-cap stocks, gained about 14% and the Russell 2000 Value Index advanced over 17% since the U.S. presidential elections.
Barclays to Face Off Against U.S. Over – Craptacular’ Loans
The U.S. Justice Department sued Barclays Plc for fraud over its sale of mortgage bonds after the bank balked at paying the amount the government sought in settlement negotiations. The lawsuit announced on Thursday is rare for big banks, which typically negotiate a settlement with the government rather than risk drawn-out litigation and a possible trial.