What To Buy When Stocks Aren't Cheap
Whether or not the long-awaited correction comes, there are parts of the market that look better than others.
The Week Ahead: What's Next on the Investor's Wall of Worry?
Despite what many feared just after the Labor Day holiday, the markets did survive the FOMC meeting. There was considerable selling up through last Tuesday morning when a Wall Street Journal reporter’s comments apparently convinced the market that the Fed was not going to change its policy.
This sparked a rally that pushed the S&P 500 and Dow Industrials to further new record highs. It is too early to tell exactly who was selling on the correction but I would expect it came mostly from individual investors. At the early August lows, $16.3 billion came out of US stock ETFs and $2 billion out of mutual funds.
This has been the trend for most of the bull market as there has been a number of panic selloffs where many investors ended up selling near the correction low. It seems like there is always something new on the investor’s wall of worry.
Now it may be a too successful Alibaba IPO that will resurrect the bubble talk and keep investors on the sidelines. No matter what happens to the stock price down the road, I am sure this IPO record will last for some time. The average investor was unlikely to get any of the shares, which probably reinforces the view that the investment playing field is not level.
I would not be surprised to see a number of articles in the coming weeks that warn investors that the last time the IPO market was so frothy was just before the dot.com bubble burst in 2000. In Friday’s Wall Street Journal’s article Alibaba Mania Isn't Built to Last they warn that a sky high price of Alibaba Group (BABA) is likely not sustainable.
Can The Economy Withstand Another Housing Breakdown?
With the three fascinations of the week, the Fed’s FOMC statement, the separation vote in Scotland, and the Alibaba IPO, now history, will investors re-focus on the economy?
Alibaba IPO Day Recap: Run Jack, Run
Beware all the Alibaba IPO hype.
Rite Aid Falls Despite A Strong Q2'15 As It Lowers Its 2015 Guidance
The company’s stock price has declined by 18.5% because management lowered its fiscal 2015 guidance (mentioned at the end of the article), mainly due to an anticipated decline in reimbursement rates and lower profitability from generic drugs in the second half of the fiscal.
Micron: Factors Responsible For A 10% Increase In Our Valuation
Though DRAM revenue declined marginally sequentially, both average selling prices and cost per bit decreased in the low-single-digit range, resulting in relatively stable DRAM margins compared to the last two quarters. On the Trade NAND side too, gross margins were stable in Q1 2015 with generally flat mix adjusted prices and costs.
Resolution Of Tax Dispute In Mongolia Boosts Rio Tinto's Plans For Expansion Of Copper Mine
A tax dispute that could potentially have delayed the development of Rio Tinto's Oyu Tolgoi copper mine in Mongolia, has been resolved. This is good news for the company as the project is an integral part of its plans to ramp up its copper production.