Lebanon forms new government with backing of Hezbollah

Lebanese demonstrators take part in a rally outside the Mohammad al-Amin mosque in the capital Beirut’s downtown district on October 20, 2019. Lebanon formed a new government on Tuesday, the presidency announced after Shi’ite Hezbollah and its allies clinched a deal on a cabinet that must tackle the country’s worst economic crisis in decades. Heavily indebted Lebanon has been without effective government since Saad al-Hariri resigned as premier in October under pressure from protests against sta


Lebanese demonstrators take part in a rally outside the Mohammad al-Amin mosque in the capital Beirut’s downtown district on October 20, 2019.
Lebanon formed a new government on Tuesday, the presidency announced after Shi’ite Hezbollah and its allies clinched a deal on a cabinet that must tackle the country’s worst economic crisis in decades.
Heavily indebted Lebanon has been without effective government since Saad al-Hariri resigned as premier in October under pressure from protests against sta
Lebanon forms new government with backing of Hezbollah Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-22
Keywords: news, cnbc, companies, waste, backing, shiite, resigned, worst, crisis, tackle, state, rally, lebanon, saad, forms, root, hezbollah


Lebanon forms new government with backing of Hezbollah

Lebanese demonstrators take part in a rally outside the Mohammad al-Amin mosque in the capital Beirut’s downtown district on October 20, 2019.

Lebanon formed a new government on Tuesday, the presidency announced after Shi’ite Hezbollah and its allies clinched a deal on a cabinet that must tackle the country’s worst economic crisis in decades.

Heavily indebted Lebanon has been without effective government since Saad al-Hariri resigned as premier in October under pressure from protests against state corruption and waste – root causes of the crisis.


Company: cnbc, Activity: cnbc, Date: 2020-01-22
Keywords: news, cnbc, companies, waste, backing, shiite, resigned, worst, crisis, tackle, state, rally, lebanon, saad, forms, root, hezbollah


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Mark Cuban, who made billions from the dot-com bubble, says here’s how you’ll know the rally is over

Mark Cuban, who made billions of dollars during the dot-com boom, said Wednesday that the stock market is not reminiscent of 1999. “Interest rates were a lot different back then,” Cuban said on CNBC’s “Fast Money Halftime Report.” The levels of day trading have receded and given way to the rise of index funds, creating a fundamentally different landscape, Cuban said. “There’s so much money chasing index funds, so as long as those funds keep on growing the market is going to go up,” said Cuban, w


Mark Cuban, who made billions of dollars during the dot-com boom, said Wednesday that the stock market is not reminiscent of 1999.
“Interest rates were a lot different back then,” Cuban said on CNBC’s “Fast Money Halftime Report.”
The levels of day trading have receded and given way to the rise of index funds, creating a fundamentally different landscape, Cuban said.
“There’s so much money chasing index funds, so as long as those funds keep on growing the market is going to go up,” said Cuban, w
Mark Cuban, who made billions from the dot-com bubble, says here’s how you’ll know the rally is over Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: kevin stankiewicz
Keywords: news, cnbc, companies, heres, billions, bubble, stock, trading, index, cuban, mark, money, different, rally, funds, lot, market, youll, dotcom, know


Mark Cuban, who made billions from the dot-com bubble, says here's how you'll know the rally is over

Mark Cuban, who made billions of dollars during the dot-com boom, said Wednesday that the stock market is not reminiscent of 1999.

“Interest rates were a lot different back then,” Cuban said on CNBC’s “Fast Money Halftime Report.” “And you saw a lot more people participating in the market. … You don’t see that now. That individual day trading really led the market to be frothy.”

The levels of day trading have receded and given way to the rise of index funds, creating a fundamentally different landscape, Cuban said.

“There’s so much money chasing index funds, so as long as those funds keep on growing the market is going to go up,” said Cuban, who sold Broadcast.com to Yahoo in April 1999 for $5.7 billion.

Cuban’s comments Wednesday were in response to concerns from investors who are comparing the stock market’s current valuation to the bull market in 1999 that concluded with collapse of the dot-com bubble.

Highly speculative internet stocks helped propel the tech-dominated Nasdaq up more than 500% from 1995 until the bubble burst in March 2000.


Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: kevin stankiewicz
Keywords: news, cnbc, companies, heres, billions, bubble, stock, trading, index, cuban, mark, money, different, rally, funds, lot, market, youll, dotcom, know


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Hedge fund giant Seth Klarman says the ‘rocket fuel’ feeding this rally will soon ‘run out’

Seth Klarman, chief executive officer of The Baupost Group LLC, listens during an interview in New York, June 8, 2018. Billionaire hedge fund manager Seth Klarman is warning this rally that has taken stocks to record highs could soon end. Klarman, who runs Baupost Group in Boston, wrote in a letter to investors that the “the rocket fuel that has propelled markets in 2019 will run out,” according to a Bloomberg News report. A Baupost spokeswoman confirmed the contents of the Bloomberg report to C


Seth Klarman, chief executive officer of The Baupost Group LLC, listens during an interview in New York, June 8, 2018.
Billionaire hedge fund manager Seth Klarman is warning this rally that has taken stocks to record highs could soon end.
Klarman, who runs Baupost Group in Boston, wrote in a letter to investors that the “the rocket fuel that has propelled markets in 2019 will run out,” according to a Bloomberg News report.
A Baupost spokeswoman confirmed the contents of the Bloomberg report to C
Hedge fund giant Seth Klarman says the ‘rocket fuel’ feeding this rally will soon ‘run out’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: fred imbert
Keywords: news, cnbc, companies, giant, seth, rocket, 2019, warning, klarman, report, rates, fund, returns, rally, soon, bloomberg, hedge, fuel, baupost, according, run


Hedge fund giant Seth Klarman says the 'rocket fuel' feeding this rally will soon 'run out'

Seth Klarman, chief executive officer of The Baupost Group LLC, listens during an interview in New York, June 8, 2018.

Billionaire hedge fund manager Seth Klarman is warning this rally that has taken stocks to record highs could soon end.

Klarman, who runs Baupost Group in Boston, wrote in a letter to investors that the “the rocket fuel that has propelled markets in 2019 will run out,” according to a Bloomberg News report. A Baupost spokeswoman confirmed the contents of the Bloomberg report to CNBC, but declined to comment further.

Klarman noted that about 31% of the fund’s portfolio was in cash to end 2019.

Stocks are coming off a blockbuster year as the S&P 500 surged nearly 29% in 2019, its best annual performance since 2013. Hopes around a possible U.S.-China trade deal, which was signed earlier this month, and the rate cuts from the Federal Reserve were major contributors to the rally.

But Klarman noted in the Jan. 15 letter he is worried about a possible “liquidity trap” as low rates don’t seem to jolt economic growth, especially in Europe. That’s where “interest rates go to die,” he wrote.

To be sure, Klarman issued a similarly dire warning at the start of 2019, citing the impact of global tensions on the global economy along with rising debt levels and a pervasive political divide.

The hedge fund manager, who’s drawn comparisons to Warren Buffett for his disciplined value style, as of a few years ago was managing about $30 billion after racking up years of market-beating returns. However, according to this latest report, Baupost managed only high-single digit returns last year, citing a “few mistakes” he made along with “conservative positioning,” according to the Bloomberg account.

—CNBC’s Michael Bloom contributed to this report.

Subscribe to CNBC on YouTube.


Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: fred imbert
Keywords: news, cnbc, companies, giant, seth, rocket, 2019, warning, klarman, report, rates, fund, returns, rally, soon, bloomberg, hedge, fuel, baupost, according, run


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Tesla shares will rally 50% to $800, says Street’s biggest bull on the stock

Shares of Tesla have more than doubled over the last 3 months, and New Street Research believes strong demand and management execution will drive shares even higher. On Tuesday the firm raised its target on the stock to a Street high of $800, which is roughly 57% above where shares currently trade.


Shares of Tesla have more than doubled over the last 3 months, and New Street Research believes strong demand and management execution will drive shares even higher.
On Tuesday the firm raised its target on the stock to a Street high of $800, which is roughly 57% above where shares currently trade.
Tesla shares will rally 50% to $800, says Street’s biggest bull on the stock Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: pippa stevens
Keywords: news, cnbc, companies, strong, tesla, biggest, raised, roughly, street, stock, rally, 800, bull, streets, trade, target, shares, research


Tesla shares will rally 50% to $800, says Street's biggest bull on the stock

Shares of Tesla have more than doubled over the last 3 months, and New Street Research believes strong demand and management execution will drive shares even higher. On Tuesday the firm raised its target on the stock to a Street high of $800, which is roughly 57% above where shares currently trade.


Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: pippa stevens
Keywords: news, cnbc, companies, strong, tesla, biggest, raised, roughly, street, stock, rally, 800, bull, streets, trade, target, shares, research


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Guggenheim’s Scott Minerd declares Trump winner over Fed on rates, sees market rally continuing

President Donald Trump’s early criticism of the Federal Reserve’s four 2018 interest rate hikes have proven right over time and the stock market loves it, Guggenheim Partners’ Scott Minerd told CNBC on Tuesday. “I think he was more concerned about slowing the economy in his administration.” However, Trump’s calls for lower rates proved prescient, Minerd argued, as the stock market plunged during the fall of 2018 and reached a nadir on Christmas Eve 2018. The rally should continue in throughout 2


President Donald Trump’s early criticism of the Federal Reserve’s four 2018 interest rate hikes have proven right over time and the stock market loves it, Guggenheim Partners’ Scott Minerd told CNBC on Tuesday.
“I think he was more concerned about slowing the economy in his administration.”
However, Trump’s calls for lower rates proved prescient, Minerd argued, as the stock market plunged during the fall of 2018 and reached a nadir on Christmas Eve 2018.
The rally should continue in throughout 2
Guggenheim’s Scott Minerd declares Trump winner over Fed on rates, sees market rally continuing Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: kevin stankiewicz
Keywords: news, cnbc, companies, stock, guggenheims, think, long, trumps, markets, sees, early, rally, winner, rates, fed, market, minerd, 2018, scott, trump


Guggenheim's Scott Minerd declares Trump winner over Fed on rates, sees market rally continuing

President Donald Trump’s early criticism of the Federal Reserve’s four 2018 interest rate hikes have proven right over time and the stock market loves it, Guggenheim Partners’ Scott Minerd told CNBC on Tuesday.

“I think he was [correct] in hindsight,” the money management firm’s global chief investment officer said in a “Squawk Box” interview from the World Economic Forum in Davos, Switzerland. “I think he was more concerned about slowing the economy in his administration.”

However, Trump’s calls for lower rates proved prescient, Minerd argued, as the stock market plunged during the fall of 2018 and reached a nadir on Christmas Eve 2018.

The Fed pivot early last year to take its foot off the gas and then cut rates three times fueled a nearly 29% rise in the S&P 500 in 2019, the best annual performance since 2013. Stock have also gotten off to a roaring start this year.

The rally should continue in throughout 2020, said Minerd, also a member of the New York Fed’s Investor Advisory Committee on Financial Markets. “Bull markets go as long as they go. As long as the central banks keep the liquidity spigots open, I don’t see any reason why we can’t just keep pushing asset prices higher.”


Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: kevin stankiewicz
Keywords: news, cnbc, companies, stock, guggenheims, think, long, trumps, markets, sees, early, rally, winner, rates, fed, market, minerd, 2018, scott, trump


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Thousands of armed activists gather at Virginia’s pro-gun rally

Thousands of armed pro-gun activists from across the United States rallied outside Virginia’s capitol building on Monday to protest new restrictions proposed by state lawmakers, with authorities bracing for violence. People across the United States were focused on the Virginia gun issue, said Philip Van Cleave, leader of the Virginia Citizens Defense League, which is organizing Monday’s rally. “They don’t want us to fail in stopping this,” Van Cleave said on Sunday. Van Cleave has rejected calls


Thousands of armed pro-gun activists from across the United States rallied outside Virginia’s capitol building on Monday to protest new restrictions proposed by state lawmakers, with authorities bracing for violence.
People across the United States were focused on the Virginia gun issue, said Philip Van Cleave, leader of the Virginia Citizens Defense League, which is organizing Monday’s rally.
“They don’t want us to fail in stopping this,” Van Cleave said on Sunday.
Van Cleave has rejected calls
Thousands of armed activists gather at Virginia’s pro-gun rally Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-20
Keywords: news, cnbc, companies, armed, states, thousands, cleave, rally, virginias, capitol, united, virginia, gather, richmond, activists, guns, progun, van, militia


Thousands of armed activists gather at Virginia's pro-gun rally

An armed militia member stands near his “troops” as others line up to enter a no-gun zone at the start of a rally by gun rights advocates and militia members near Virginia’s Capitol, in Richmond, Virginia, U.S. January 20, 2020.

Thousands of armed pro-gun activists from across the United States rallied outside Virginia’s capitol building on Monday to protest new restrictions proposed by state lawmakers, with authorities bracing for violence.

The rally began on a cold morning with a festival-like atmosphere in the streets of Richmond. Many in the crowds were dressed in camouflage or tactical gear and carrying weapons as they exchanged pleasantries with others arriving at the event. Some browsed vendors’ pro-gun T-shirts and other merchandise, much of it carrying slogans supporting President Donald Trump.

Those backing tougher gun restrictions see Democrats taking control of the Virginia legislature for the first time in a generation on campaign promises of tougher access to arms as offering a model for other traditionally gun-friendly states.

Activists at the rally argued that Virginia is stomping on their constitutional right to bear arms and vowed that Monday’s event will help citizens understand how quickly they can lose the ability to carry guns, based on who wins at the ballot box.

Trump tweeted Monday morning to criticize the move by the Democratic Party in Virginia.

“What’s going on here, if not stopped, will spread to other states,” said Teri Horne, who had traveled to Virginia from her home in Texas with her Smith & Wesson rifle and .40-caliber handgun. “They will come for our guns in other states if we don’t stop them in Virginia.”

Activists said they were planning only a peaceful protest. Security was tight with a large police presence. Those wanting to enter Capitol Square to hear the morning’s speakers had to pass through a single entrance for security screening, leaving their guns outside.

Tension rose ahead of the rally after the FBI last week arrested three members of a small neo-Nazi group, who authorities said hoped to ignite a race war through violence at the gathering, reminiscent of a 2017 white supremacist rally in nearby Charlottesville.

People across the United States were focused on the Virginia gun issue, said Philip Van Cleave, leader of the Virginia Citizens Defense League, which is organizing Monday’s rally.

“They don’t want us to fail in stopping this,” Van Cleave said on Sunday. “We’ve gotten huge donations from other states.”

Van Cleave has rejected calls for violence, but he has urged tens of thousands of armed supporters from across the United States to be in Richmond to provide security for his group.

A spokesman for the Capitol police said Van Cleave had worked closely with law enforcement on plans for the rally.

High-profile national militia figures gathered for a meeting on Sunday near Richmond said they wanted Monday’s event to be peaceful, but feared the worst, including the risk of a “lone wolf” unleashing bitter fighting with a single shot.

“The buildup is probably one of the most intense I’ve seen,” said Tammy Lee, a right-wing internet personality from Oklahoma who was involved in the Charlottesville “Unite the Right” rally.

Christian Yingling, head of the Pennsylvania Light Foot Militia and a leader in Charlottesville, said none of his men would carry long guns and they wanted to avoid skirmishes.


Company: cnbc, Activity: cnbc, Date: 2020-01-20
Keywords: news, cnbc, companies, armed, states, thousands, cleave, rally, virginias, capitol, united, virginia, gather, richmond, activists, guns, progun, van, militia


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Thousands-strong Hong Kong protest cut short by clashes

Police stand guard during a protest at the New Town Plaza shopping mall in Shatin in Hong Kong on December 15, 2019. They held up signs that read “Free Hong Kong” and waved American and British flags. Hong Kong media outlets reported that police arrested the rally’s organizer, Ventus Lau, shortly after he spoke to reporters. “I think Hong Kong has not been the focus of the world anymore,” he said. A former British colony, Hong Kong was returned to China in 1997.


Police stand guard during a protest at the New Town Plaza shopping mall in Shatin in Hong Kong on December 15, 2019.
They held up signs that read “Free Hong Kong” and waved American and British flags.
Hong Kong media outlets reported that police arrested the rally’s organizer, Ventus Lau, shortly after he spoke to reporters.
“I think Hong Kong has not been the focus of the world anymore,” he said.
A former British colony, Hong Kong was returned to China in 1997.
Thousands-strong Hong Kong protest cut short by clashes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-19
Keywords: news, cnbc, companies, return, park, kong, rally, near, protesters, chinese, lau, clashes, short, protest, thousandsstrong, cut, hong


Thousands-strong Hong Kong protest cut short by clashes

Police stand guard during a protest at the New Town Plaza shopping mall in Shatin in Hong Kong on December 15, 2019.

Clashes broke out between protesters and police in Hong Kong on Sunday, cutting short a rally after thousands had gathered at a park to call for electoral reforms and a boycott of the Chinese Communist Party.

Police fired tear gas near the park, known as Chater Garden, after some protesters attacked plainclothes officers — a return to the violence that has roiled the Chinese territory off and on for months.

Sporting their movement’s trademark black clothing and face masks, rally participants had earlier packed into Chater Garden, located near the city’s Legislative Council building. They held up signs that read “Free Hong Kong” and waved American and British flags.

“We want real universal suffrage,” the protesters chanted. “Disband the police force, free Hong Kong!”

Hong Kong media outlets reported that police arrested the rally’s organizer, Ventus Lau, shortly after he spoke to reporters.

Local broadcaster RTHK cited fellow organizers as saying that Lau was arrested for allegedly violating the police’s conditions for the rally.

Earlier in the day, Lau said he believes more large-scale protests are needed for global attention to return to Hong Kong, with the protest movement losing some of its momentum in recent weeks.

“I think Hong Kong has not been the focus of the world anymore,” he said.

He urged other countries to launch sanctions against Hong Kong’s government if it does not allow residents to directly elect Legislative Council members this year.

A former British colony, Hong Kong was returned to China in 1997. While the framework of “one country, two systems” promises the city greater democratic rights than are afforded to the mainland, protesters say their freedoms have been steadily eroding under Chinese President Xi Jinping.

Frictions between democracy-minded Hong Kongers and the Communist Party-ruled central government in Beijing came to a head last June, when proposed extradition legislation sparked months of mass demonstrations.


Company: cnbc, Activity: cnbc, Date: 2020-01-19
Keywords: news, cnbc, companies, return, park, kong, rally, near, protesters, chinese, lau, clashes, short, protest, thousandsstrong, cut, hong


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Stocks appear detached from reality, rallying for two things that may not happen

The S&P 500 has soared 12% since the beginning of October. S&P 500 earnings are expected to drop by 0.3% in the fourth quarter of 2019, marking the first back-to-back quarterly decline since 2016, according to Refinitiv. Detached from economic realityThe stock market and the economy are also telling two different stories, at least for now. S&P 500 materials and consumer discretionary only eked out 6% and 4% gains, respectively, in the past three months, versus the broad market’s 11% climb. The b


The S&P 500 has soared 12% since the beginning of October.
S&P 500 earnings are expected to drop by 0.3% in the fourth quarter of 2019, marking the first back-to-back quarterly decline since 2016, according to Refinitiv.
Detached from economic realityThe stock market and the economy are also telling two different stories, at least for now.
S&P 500 materials and consumer discretionary only eked out 6% and 4% gains, respectively, in the past three months, versus the broad market’s 11% climb.
The b
Stocks appear detached from reality, rallying for two things that may not happen Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-18  Authors: yun li
Keywords: news, cnbc, companies, stock, detached, rallying, things, reality, market, quarter, shortterm, strategist, 500, happen, stocks, earnings, rally, appear


Stocks appear detached from reality, rallying for two things that may not happen

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 31, 2018. Brendan McDermid | Reuters

The new year is not even three full weeks old, and already half a trillion dollars has been added to the S&P 500’s value. Some investors worry either the economy has to suddenly jolt into action or earnings have to surprisingly surge — two things unlikely to occur — in order to justify these kinds of gains. The S&P 500 has soared 12% since the beginning of October. Not only does the rally defy many tried-and-true economic indicators, it also ignores the ongoing profits slump, leading many Wall Street strategists to urge caution. “People are getting too optimistic in the short-term,” said Tom Essaye, founder of The Sevens Report. “We keep pricing in all this really good stuff that’s going to happen, but it has not shown up yet …This market is in a full melt-up mode, and it would be foolish to try and stay in front of it.” Perhaps the easing trade tensions between the U.S. and China unleashed animal spirits, or the Federal Reserve’s massive bond-buying is working its magic. But if the rally is purely driven by expectations for a rapid rebound in earnings growth and the global economy, this level of enthusiasm should elicit concerns.

‘Way ahead of its earnings’

The problem front and center is how investors are looking past the continuous earnings rout, betting on a snapback as soon as the first quarter of 2020.

S&P 500 earnings are expected to drop by 0.3% in the fourth quarter of 2019, marking the first back-to-back quarterly decline since 2016, according to Refinitiv. Analysts project much higher earnings growth in 2020, a 6% increase in the first quarter. “It just seems obvious to me that we’ve had a situation where earnings have gone nowhere and the markets have gone straight up,” said Matt Maley, chief market strategist at Miller Tabak. “I don’t want to call it a bubble yet but it’s moving in that direction. The market is way ahead of its earnings.”

Detached from economic reality

The stock market and the economy are also telling two different stories, at least for now. The U.S. manufacturing sector has been contracting since August as exports dropped amid the China trade war. However, the gloomy readings on the key industry didn’t prompt investors to take shelters. Instead, stocks kept rising to new records.

While megacap tech giants lift the market higher, more economically sensitive pockets of the market continue to fall behind. S&P 500 materials and consumer discretionary only eked out 6% and 4% gains, respectively, in the past three months, versus the broad market’s 11% climb. Meanwhile, a century-old classic tool known as Dow Theory has yet to confirm the rally is for real. The Dow Jones Transportation Average hasn’t hit new record highs with industrial stocks consistently underperforming over the past year. Many believe transportation stocks are a barometer of global economic activity and any rally without their support cannot be a long-lasting one.

Don’t fight the Fed?

Some strategists floated the theory that the rally is driven by the Federal Reserve’s commitment to providing liquidity in the short-term borrowing market for banks, known as the “repo” market. On Oct. 11, the central bank announced it would begin purchasing $60 billion of Treasury bills a month to keep control over short-term rates. The magnitude of the purchases resembles the quantitative easing program the Fed conducted during and after the financial crisis.

“The primary driving force behind the advance is increased liquidity/money flows — massive injections of funds into their systems by central banks,” David Rosenberg, chief economist and strategist of Rosenberg Research, said in a note. The increase in the Fed’s balance sheet has been in near lockstep with the stock market’s climb. The balance sheet has expanded 10% since October, while the S&P 500 shot up 12%, including notching its best fourth quarter since 2013. “Whether one wants to call it QE or not, we believe this excess liquidity has suppressed volatility to extremely low levels,” Michael Wilson, Morgan Stanley’s chief U.S. equity strategist, said in a note. “A liquidity driven bull market typically overshoots fair value.”

‘A euphoric mood’


Company: cnbc, Activity: cnbc, Date: 2020-01-18  Authors: yun li
Keywords: news, cnbc, companies, stock, detached, rallying, things, reality, market, quarter, shortterm, strategist, 500, happen, stocks, earnings, rally, appear


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One S&P 500 sector is enjoying a stealth rally to records

There’s been a surprising winner as markets have rallied to records — the utilities sector. The XLU utilities ETF is up 3% this week, nearly double the gain on the S&P 500, and the top performer on markets. While the utilities sector yields 3%, the 10-year holds at 1.8%. The other high-dividend sectors are REITs and energy. Gordon adds that American Electric Power and Dominion Energy look like two good candidates to get exposure to the sector.


There’s been a surprising winner as markets have rallied to records — the utilities sector.
The XLU utilities ETF is up 3% this week, nearly double the gain on the S&P 500, and the top performer on markets.
While the utilities sector yields 3%, the 10-year holds at 1.8%.
The other high-dividend sectors are REITs and energy.
Gordon adds that American Electric Power and Dominion Energy look like two good candidates to get exposure to the sector.
One S&P 500 sector is enjoying a stealth rally to records Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: keris lahiff
Keywords: news, cnbc, companies, rally, sectors, yield, xlu, stealth, 500, highdividend, yields, gordon, utilities, theyre, sector, records, week, enjoying


One S&P 500 sector is enjoying a stealth rally to records

There’s been a surprising winner as markets have rallied to records — the utilities sector.

The XLU utilities ETF is up 3% this week, nearly double the gain on the S&P 500, and the top performer on markets.

Todd Gordon, founder of TradingAnalysis.com, sees signs its outperformance can continue.

“The story begins, I think, with yields, no surprise here. We’ve seen U.S. bond yields drop,” Gordon said on CNBC’s “Trading Nation” on Thursday. “We’re moving lower here in the 10-year yield following a very clear correlation of declining yields and strong utilities. We’re seeing the XLU … break to new highs so obviously that’s a very strong indicator.”

Bond yields and high-dividend sectors such as utilities move inversely — investors hunt for alternative sources of yield in defensive trades such as utilities and real estate investment trusts.

“Sometimes I’ve seen these sectors kind of lead the underlying bond market, which is very strange, so perhaps utilities are signaling that we might see lower yields to come,” Gordon added.

Gina Sanchez, CEO of Chantico Global, says utilities could still outperform despite sky-high multiples.

“We have utilities at really high multiples — I mean, utilities are regulated, they’re slow growers, they’re great payers, they’re not supposed to be at multiples of 21 times,” Sanchez said during the same segment. “And yet that’s where they are, and yet their dividends are still almost 3%, they’re still the third-highest-paying dividend sector in the S&P.”

While the utilities sector yields 3%, the 10-year holds at 1.8%. The other high-dividend sectors are REITs and energy.

“That basically tells you that there’s actually still going to be some capital that will be attracted to that dividend, especially, to Todd’s point, if rates continue to go low and it will drive investors into high-dividend sectors,” said Sanchez.

Gordon adds that American Electric Power and Dominion Energy look like two good candidates to get exposure to the sector. AEP is up 4% this week, while Dominion has climbed more than 1%.

Disclaimer


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: keris lahiff
Keywords: news, cnbc, companies, rally, sectors, yield, xlu, stealth, 500, highdividend, yields, gordon, utilities, theyre, sector, records, week, enjoying


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Hedge fund legends David Tepper and Stanley Druckenmiller tell CNBC they’re still bullish, for now

Billionaire investors David Tepper and Stanley Druckenmiller told CNBC on Friday they remain bullish on the market even as stocks keep hitting record highs. Tepper, the Appaloosa Management founder, exclusively emailed “Squawk Box” co-host Joe Kernen, saying, “I love riding a horse that’s running.” The Fed-driven stock market rally that ensued at the time became known as the “Tepper rally.” Tepper started Appaloosa in 1993, and grew it into a powerhouse, returning 25% a year. In May, he said he


Billionaire investors David Tepper and Stanley Druckenmiller told CNBC on Friday they remain bullish on the market even as stocks keep hitting record highs.
Tepper, the Appaloosa Management founder, exclusively emailed “Squawk Box” co-host Joe Kernen, saying, “I love riding a horse that’s running.”
The Fed-driven stock market rally that ensued at the time became known as the “Tepper rally.”
Tepper started Appaloosa in 1993, and grew it into a powerhouse, returning 25% a year.
In May, he said he
Hedge fund legends David Tepper and Stanley Druckenmiller tell CNBC they’re still bullish, for now Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: matthew j belvedere
Keywords: news, cnbc, companies, david, rally, started, tepper, told, appaloosa, returning, nearly, hedge, druckenmiller, source, reserve, tell, theyre, legends, stanley, fund, market


Hedge fund legends David Tepper and Stanley Druckenmiller tell CNBC they're still bullish, for now

Billionaire investors David Tepper and Stanley Druckenmiller told CNBC on Friday they remain bullish on the market even as stocks keep hitting record highs.

Tepper, the Appaloosa Management founder, exclusively emailed “Squawk Box” co-host Joe Kernen, saying, “I love riding a horse that’s running.” He added, “We have been long and continue that way.”

However, Tepper said, “At some point, the market will get to a level that I will slow down that horse and eventually get off.” He did not specify when that might be.

While Tepper provided no further details on what may cause him to get out of the market, a source told CNBC’s Scott Wapner that Tepper got more fully invested in December.

The source said Tepper started to believe last month that the market was going to continue higher as the Federal Reserve was putting more money into the system and as U.S.-China trade tensions were starting to ease.

Appaloosa outperformed in December and so far in January, the source told Wapner.

The S&P 500 gained nearly 2.9% in December, capping an almost 29% advance for all of 2019 in the best year since 2013. The index picked up where it left off in 2020, increasing nearly 2.8% this month.

Tepper is well-known for a 2010 market call he made on CNBC that super-low interest rates by the Federal Reserve, coupled with the central bank’s massive bond-buying, would make most investment choices go up. The Fed-driven stock market rally that ensued at the time became known as the “Tepper rally.” The market rally continued the entire decade.

Tepper started Appaloosa in 1993, and grew it into a powerhouse, returning 25% a year. In May, he said he was returning Appaloosa capital to investors and converting the fund into a family office. Tepper also owns the NFL’s Carolina Panthers.


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: matthew j belvedere
Keywords: news, cnbc, companies, david, rally, started, tepper, told, appaloosa, returning, nearly, hedge, druckenmiller, source, reserve, tell, theyre, legends, stanley, fund, market


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