Blog

 • 7th Oct 2019 11:08 GMT+1
 • Estimated read time: 3 minutes

When the global economy seems to be facing an uphill battle, the US is set to impose an additional $7.5 billion worth of tariffs annually on a range of EU goods on October 18th in response to illegal subsidies the EU paid to its airline manufacturer Airbus. According to a statement from the Office of the United States Trade Representative, the US will impose an...

 • 7th Oct 2019 10:58 GMT+1
 • Estimated read time: 3 minutes

Last week was particularly turbulent for US equity markets with the Dow Futures (CME GROUP: YM) down 890 points by Wednesday with the release of a weak purchasing managers survey (ISM PMI) for September showing the second month of contraction. A figure above 50 on this diffusion index indicates growth, while a value below 50 indicates contraction.

The Dow recovered some territory by Friday...

 • 2nd Oct 2019 11:06 GMT+1
 • Estimated read time: 3 minutes

The credit rating agency Fitch Ratings took the credit market by surprise when it unexpectedly announced it was downgrading Saudi Arabia’s debt credit rating to A from A+ on September 30th. The last time Fitch rated Saudi Arabia at this level was back in 2005. The outlook on the rating had previously been “stable,” meaning Fitch anticipated no rating change following the surprise attack on the country’s oil facilities on...

 • 24th Sep 2019 10:23 GMT+1
 • Estimated read time: 3 minutes

In the latest round of increasing tensions in the Middle East, US President Trump last week announced the deployment of US defence forces to Saudi Arabia and the United Arab Emirates in response to an alleged Iranian attack on Saudi oil fields and facilities in the east of the country that sent oil prices higher for a brief period. Reassuring messages from the Kingdom that production could be restored relatively quickly along with robust supplies of crude oil inventory kept prices from...

 • 16th Sep 2019 11:11 GMT+1
 • Estimated read time: 2 minutes

It seems a weekend is a long time in the oil market. Late last week the International Energy Agency (IEA) published their monthly oil market report where they say, “In recent weeks, tensions in the Middle East Gulf have eased and oil industry operations appear to be normal.” Then news broke on Sunday that 50% of Saudi oil production is offline following a synchronised drone attack that the Saudi and US governments blame on Iran. Saudi...

 • 16th Sep 2019 11:06 GMT+1
 • Estimated read time: 3 minutes

Space-sharing firm WeWork was supposed to be the next Wall Street unicorn. A unicorn firm is a nickname given to start-up companies that become a quick success – stemming from the definition that a unicorn is “something highly desirable but difficult to find or obtain.”

Instead, some analysts are calling WeWork the poster child of what is failing in today’s initial public offering (IPO) market with reports that underwriters JP...

 • 13th Sep 2019 11:26 GMT+1
 • Estimated read time: 3 minutes

It seems there is a new story every day about the impending global economic slowdown and imminent US stock market correction. Last week US non-farm jobs grew in August at the slowest annual pace in the previous seven years (see chart). The weak jobs number came on top of a slowing US manufacturing purchasing managers survey that showed a contraction for the first time since January 2016. Weak indicators like these have investors climbing a wall of worry, but it is not apparent which...

 • 20th Aug 2019 22:17 GMT+1
 • Estimated read time: 3 minutes

Market volatility has picked up in recent weeks and investors are starting to worry that a market correction could be around the corner. In July this year, the US reached a record economic expansion, breaking the previous 120-month record. The stock market has come along for the ride, marking the longest bull market in history, beginning in March 2009. Some investors are worried that the party will have to end at some point but predicting exactly when is the hard part. (For more see,

 • 20th Aug 2019 22:00 GMT+1
 • Estimated read time: 3 minutes

It has been a tough week in the US equity markets, with the Dow Jones Industrial Index falling as much as 800 points on Wednesday, but finishing the week down 400 points after some recovery later in the Friday trading session. Markets went into meltdown after the 10-Year US Treasury bond priced with a yield less than the 2-year bond something market strategists call an inverted curve. Economists and other market analysts...

 • 12th Aug 2019 11:43 GMT+1
 • Estimated read time: 3 minutes

Walmart (NYSE: WMT) is due to report second-quarter financial results before the opening bell on August 15th. Analysts will be closely watching these results for any indication of where management sees the business going in the second half of 2019. The first half of 2019 has been relatively smooth with analysts expecting earnings pre-share of $1.21 in the second quarter, following 1Q results of $1.13 per share, which beat...

 • 25th Jul 2019 11:49 GMT+1
 • Estimated read time: 4 minutes

Market participants are growing increasingly worried about the health of the global macroeconomy. The US/Chinese trade dispute runs hot and cold, with threats and counter-threats, taking the world’s stock markets with it. Investors have become so concerned about a global slowdown that they seem to have talked themselves into believing that the US Federal Reserve could cut interest rates by 50 basis points (a move usually implemented in times of crisis) when it meets at the end of July....

 • 16th Jul 2019 11:41 GMT+1
 • Estimated read time: 3 minutes

The US stock market closed on a high last Friday with the Dow Jones Industrial Average over 27,000, and the S&P 500 Index over 3,000 after testimony before Congress from US Federal Reserve (the Fed) Chairman Powell confirmed market expectations that the central bank will likely lower borrowing rates at the end of July. The rate cut expectation comes despite strong reported US job-growth and stable consumer inflation, factors some analysts and economist point to as reasons not to lower...

 • 8th Jul 2019 11:19 GMT+1
 • Estimated read time: 4 minutes

Investors are continuously looking for ways to improve performance in their stock portfolios. Professional investors call it alpha, the extra return you get from a stock beyond what the market is offering. One way to hunt for such shares may be to use Finscreener.com’s bubble chart. In this example, we use the bubble chart to analyse the 30 stocks in the Dow Jones Industrial Average.

Setting up the analysis is...

 • 8th Jul 2019 10:46 GMT+1
 • Estimated read time: 3 minutes

As second-quarter earnings season gets underway, several companies in the S&P500 will report results in July. We take a look at three potential losers using Finscreener.com’s earnings ratings screening tool. You can use this tool to screen your S&P 500 winning stocks, or those reporting in August instead of July. You can also use it to explore stocks trading in other equity indices like the NASDAQ 100 or Dow...

 • 1st Jul 2019 11:17 GMT+1
 • Estimated read time: 4 minutes

The market expects the US central bank (The Fed) to start cutting short-term borrowing costs this year. In previous economic cycles, Fed cuts tended to cause market rallies, especially in emerging markets (EM). Emerging markets benefit from a reduction in US borrowing costs in two stages. The first is a rush to risky EM assets as the Fed lowers the cost of borrowing and the second is a medium to long term ability of EM central banks to reduce their borrowing costs too, which stimulates...

 • 1st Jul 2019 10:59 GMT+1
 • Estimated read time: 3 minutes

Markets are likely to get a boost from the news over the weekend that the US and China agreed to restart trade talks at the G20 economic summit in Osaka Japan over the weekend. While the US said it would not lift existing import tariffs on Chinese goods, it will refrain from introducing new tariffs on the remaining $300 billion worth of Chinese exports to the US.

With the stock market poised to continue its 10-year bull run on the back of this trade news, investors are rightly...

 • 24th Jun 2019 09:42 GMT+1
 • Estimated read time: 3 minutes

A low and falling interest rate environment can be very challenging for investors dependent on income from their portfolios to meet spending needs. The market is expecting the US Central Bank, also known as the Federal Reserve Bank, to start cutting interest rates later this year. Pushing down short-term interest rates and long-term bond yields may help consumers, but it hurts savers. Recently Bloomberg reported that there is 13 trillion dollars’ worth of global debt with a yield at or...

 • 24th Jun 2019 09:34 GMT+1
 • Estimated read time: 3 minutes

This time last year, many Wall Street analysts and economists were expecting the central bank of the United States, also called the Federal Reserve Bank, or just the Fed, to increase short-term borrowing costs to keep the economy from overheating. What a difference a year makes. Those same economists now expect the Fed to aggressively lower short-term borrowing costs to avoid a potential economic recession in 2020. The big question is whether now is the time to lower borrowing costs and...

 • 18th Jun 2019 12:20 GMT+1
 • Estimated read time: 3 minutes

Five stocks in the S&P 500 equity index hit their 52-week low price in June, and they are all in the retail sector. The share prices of Nordstrom Inc (NYSE: JWN), Kohls Corp (NYSE: KSS) and Macy’s Inc (NYSE: M) hit their 52-week low price in early June, and are down between 27 to 30% in 2019, making them some of the worst performers this year out the 30-odd stocks in the S&P 500 to hit a 52-week low in June. Other retail names hitting a 52-week low in June, but are down less than...

 • 17th Jun 2019 09:54 GMT+1
 • Estimated read time: 3 minutes

The investment landscape can appear overwhelming, sometimes, with so many investment choices. One of the more difficult decisions for the modern investor is the one between investing in a fund or investing in individual stocks. Both approaches have advantages and disadvantages.

Advantages and Disadvantages to Buying Stocks

There are definite advantages to purchasing individual stocks instead of a mutual fund or ETF. The most significant benefit is perhaps the degree...

 • 13th Jun 2019 16:34 GMT+1
 • Estimated read time: 3 minutes

Pessimism may be slowly creeping into the stock market. CNBC reported on Tuesday that two-thirds of Chief Financial Officers (CFOs) responding to the most recent Duke University Global Business Outlook survey see a recession hitting the US economy by the end of 2020. Factors likely contributing to this view are the ongoing, and potentially growing, a trade war with China and expectations that the US Federal Reserve Bank is on the cusp of slashing short-term interest rates to prop up the...

 • 10th Jun 2019 08:34 GMT+1
 • Estimated read time: 3 minutes

Last week the oil market slipped into a bear market with prices down nearly 20% from their peak of $66.80 per barrel in April 2019. The quick pace of the downdraft came a surprise to some market participants. Both the supply and demand side are hitting the oil market at the same time. Demand for oil is weak, given concerns about the changing state of the US economy and uncertainty around the trade dispute with China and Mexico. For example, data from the US EIA showed America’s total...

 • 10th Jun 2019 08:29 GMT+1
 • Estimated read time: 3 minutes

Gold prices hit their highest levels in 14 months on Friday as traders and investors aggressively increased expectations that the US Federal Reserve Bank may cut short-term interest rates this year. Investors are increasingly nervous that the US economy is slowing down as President Trump presses ahead with his trade war against China and Mexico. A weak jobs report for May added to investors’ fears by creating just 75,000 jobs compared to economists’ expectations of 180,000 for the...