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Invest in These 5 Stocks With Solid Relative Price Strength – Yahoo Finance

Posted: January 18, 2020 at 4:45 pm


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Earnings growth and valuation multiples are indeed important for investors to determine a stock's ability to offer considerable returns. But these are also essential in determining whether a stocks price performance is better than its peers or the industry average.

If a stocks performance is lacking that of the broader groups despite impressive earnings growth or valuation multiples, then something must be wrong.

Its always advisable to stay away from these stocks and bet on those that are outperforming their respective industries or benchmarks. This is because betting on a winner always proves to be lucrative.

Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 over a period of 1 to 3 months at the least and having solid fundamentals indicate room for growth and are the best ways to go about this strategy.

Finally, it is important to find out whether analysts are optimistic about the upcoming earnings results of these companies. In order to do this, we have added positive estimate revisions for the current quarters (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.

Screening Parameters

Relative % Price change 12 weeks greater than 0

Relative % Price change 4 weeks greater than 0

Relative % Price change 1 week greater than 0

(We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, four weeks and one week.)

% Change (Q1) Est. over 4 Weeks greater than 0: Positive current quarter estimate revisions over the last four weeks.

Zacks Rank equal to 1: Only Zacks Rank #1 (Strong Buy) stocks that have returned more than 26% annually over the last 26 years and surpassed the S&P 500 in 23 of the last 26 years can get through. You can see the complete list of todays Zacks #1 Rank stocks here.

Current Price greater than or equal to $5 and Average 20-day Volume greater than or equal to 50,000: A minimum price of $5 is a good standard to screen low-priced stocks, while a high trading volume would imply adequate liquidity.

VGM Score less than or equal to B: Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or #2 (Buy) offer the best upside potential.

Here are five of the 10 stocks that made it through the screen:

SYNNEX Corporation SNX: SYNNEX is a leading business process services provider to original equipment manufacturers (OEMs), resellers, systems integrators and retailers and customer engagement services (CES) to a wide array of vertical markets. The FY 2020 Zacks Consensus Estimate for this Fremont, CA-based company is $13.97, representing 5.4% earnings per share growth over FY 2019. Next fiscal years average forecast is $14.54 pointing to another 4% growth. SYNNEX has a VGM Score of A.

MagnaChip Semiconductor Corporation MX: A designer and manufacturer of analog and mixed-signal semiconductor products for consumer, computing, communication, industrial, automotive and Internet of things (IoT) applications, MagnaChip Semiconductor has a VGM Score of A. Over 30 days, the Luxembourg-based company has seen the Zacks Consensus Estimate for 2020 increase 91.2% to 65 cents per share.

Delta Air Lines DAL: Delta Air Lines, headquartered in Atlanta, GA, is a leading provider of scheduled air transportation for passengers and cargo throughout the United States and around the world. The firm has a VGM Score of A and an excellent earnings surprise history having surpassed estimates in each of the last four quarters, the average being 8.2%.

Amedisys, Inc. AMED: Amedisys provides home health and hospice services throughout the U.S. to the growing chronic, co-morbid, and aging American population. Sporting a VGM Score of B, this Baton Rouge, LA-headquartered companys expected EPS growth rate for three to five years currently stands at 16.4%, comparing favorably with the industry's growth rate of 12.7%.

Forterra, Inc. FRTA: Founded in 2016 and headquartered in Irving, TX, Forterra is a leading manufacturer of water and drainage pipe in the U.S. and Eastern Canada. The company has a VGM Score of A and an excellent earnings surprise history having surpassed estimates in each of the last four quarters, the average being 78.4%.

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Invest in These 5 Stocks With Solid Relative Price Strength - Yahoo Finance

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January 18th, 2020 at 4:45 pm

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The Clorox Company to make $190 million investment in West Virginia – WSAZ-TV

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BERKELEY COUNTY, W.Va. (WSAZ) -- A leading manufacturer of consumer and profession products has announced it is seeking approval to build a cat litter manufacturing plant in Berkeley County.

If approved, the Clorox Company's investment would bring $192 million in economic development to West Virginia and create approximately 100 full-time jobs.

"I can't tell you how proud I am that Clorox is exploring this expansion opportunity in West Virginia," Gov. Justice said. "Clorox has a proven track record in the Mountain State both Mineral and Tucker Counties have greatly benefited from having the company's Kingsford charcoal facilities and all the investments the company has made in our local communities."

Clorox sent a draft plan to Berkeley County officials, which is the first step in the development process for the proposed site. The company is planning several public meetings and two open houses for the community in the coming weeks.

Berkeley County was chosen as the ideal location for the proposed facility due to the local workforce availability, nearby resources, and regional transportation infrastructure including rail.

The Clorox Company, based in Oakland, CA, is a Fortune 500 company that manufactures and sells cleaning products and household supplies under various brands.

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The Clorox Company to make $190 million investment in West Virginia - WSAZ-TV

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January 18th, 2020 at 4:45 pm

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Grayscale Investments Reports Record-Breaking Year – Cointelegraph

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Digital currency asset manager Grayscale Investments banked a stellar 2019 to surpass the $1 billion mark in total investments and now has over $2 billion in AUM.

In a comprehensive eighteen-page report, the firm touted a record Q4 in 2019. It raised $225.5 million into its investment products, lifting the years inflow to $607.7 million after back-to-back quarterlies over $225 million, possibly signaling a larger market trend.

71 percent of the years inflow sprung from institutional investors. Managing director Michael Sonnenshein told Cointelegraph:

We saw record-breaking investment into Grayscales family of products, illustrating continued demand from investors for digital currency access products and with a majority of investment coming from institutions, its clear that were experiencing institutional adoption.

Existing clients amassed 75% of capital raised. 36% of Grayscale clients now use multiple of the companys 10 products. The company saw its client base grow by 24%.

Grayscale Bitcoin Trust, which Cointelegraph first reported on last year, led 2019s investment demand with $471.7 total $193.8 million of it raised in Q4, another historical high for the New York-based firm.

Signaling a shift among traditional institutions, communications director Marissa Arnold told Cointelegraph, As the largest digital currency asset manager, we feel that our numbers are indicative of broader market sentiment and institutional flows into digital currency.

As younger investors continue finding Bitcoin and other digital currencies safer investments, especially as Bitcoin enjoys a slight surge, this may be the case.

Projecting the larger crypto market, Arnold added:

The asset class is experiencing increased validation from legacy companies like Fidelity and CME, signaling to institutions and the investment community as a whole that crypto as an asset class is here to stay.

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Grayscale Investments Reports Record-Breaking Year - Cointelegraph

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January 18th, 2020 at 4:45 pm

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The Crossroads Of Investments And Values – Forbes

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As a financial advisor, the majority of my conversations with clients and prospects revolve around money. They ask how much they should invest to reach their goals, what they can expect in returns, and how to mitigate risk. How a financial services professional answers these questions is what separates a true advisor from a salesperson. Theres nothing wrong with being a salesperson, but if I am to act with fiduciary responsibility on behalf of my clients, I must know whats important to them. Whats important doesnt always mean what we think it does. When it comes to buying an equity position in a company, what could be more important than returns? As it turns out, a lot.

Advances in technology, among other things, have provided both investors and advisors an opportunity to dive deeper than ever before into the behavior of companies.

Publicly traded companies have a culture. The culture is one they both encourage and create, and more often than not, the true culture of a company is reflected by the philanthropic and investment decisions made by its leadership. For a time, people of faith were limited in their ability to gather knowledge about what the companies in their portfolio support outside of what they primarily do. Advances in technology, among other things, have provided both investors and advisors an opportunity to dive deeper than ever before into the behavior of companies. I, as a financial advisor, have a responsibility to inform my clients of everything I think theyd be interested in knowing about their investments. The majority of the time, conversations about whats really important lead to positive results.

In a recent discussion with a couple I am new to working with, the conversation reached a point where I was able to ask, What wouldnt you invest your money in? Is there anything specifically you would want to avoid? Yes, of course, they replied. We wouldnt want to invest in companies supporting abortion, pornography, gambling , along with a couple other industries. Their response gave me the opportunity to act as a fiduciary, in the best interest of my clients.

I showed the couple a report based on information theyd provided before our meeting using the eVALUEator Biblically Responsible Investing screening tool. The report highlighted where and how their portfolio was currently invested. It was revealed that more than 30% of the companies they were holding through mutual funds and ETFs are actively involved in activities they just told me they wanted no part of. They were, to say the least, shocked.

Unfortunately, shock is an all-too-common response. I live and work just south of Nashville, in the Bible Belt. To say faith and values are important here is an understatement. Most people I know try to live out those values in their everyday lives as best they can. But when it comes to what people invest their money in, they just dont know what they dont know. Truthfully, its one of those things we dont talk about that much, but we should. Its my job to inform people how their investment dollars are being used as much as it is to discuss returns, strategies, and progress toward their ultimate goals. If I do one and not the other, I believe I have missed the mark.

There are a number of reasons why I believe someone should consider biblically responsible investing for their portfolio. I want to briefly touch on two reasons: values and stewardship.

Many people cant tell you where their money is invested. The questions advisors hear most often are related to returns. When our money is invested, we become owners in these companies, and through our investment, we support their mission, vision, and culture. Our dollars reinforce and grow values you may not support. Biblically responsible investing allows you to invest in companies whose mission, vision, and culture align with pro-life, pro-family values while experiencing the same or possibly better returns.

Many of the stocks in the S&P 500 support industries and organizations that do not meet the screening criteria of the eVALUEator Biblically Responsible Investing tool. Every portfolio I have reviewed has been holding multiple positions in those companies. As people of faith, we are called to be stewards of ALL the resources with which we are blessed, including how we invest our financial blessings. 1 Corinthians 10:31 challenges us with the words whatever you do, do it all for the glory of God.1 I am reminded of the Parable of the Talents. The consequences for the one who took the money hed been given and had nothing to show for it when the master returned were severe. The story tells me that where we invest money is important to God.

As a fiduciary, I examine multiple solutions to address clients needs and remove as much risk as possible. When I help people align their values with their investment goals (and the biblically responsible investing options are plentiful), I have lived up to who I am as a true financial advisor.

This content was brought to you by Impact Partnership BrandVoice. Investment advisory services offered through Optivise Advisory Services, LLC (OAS), an SEC-registered investment advisor.OAS and Anchor Financial, Inc. are independent of one another. Insurance and annuities offered through Stacey Andres, TN Insurance License #2239578. DT# 1051467-0121

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January 18th, 2020 at 4:45 pm

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Get Started In Multifamily Real Estate Investment In 2020 – Forbes

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Theres a reason many high-net-worth individuals still consider real estate the best investment you can make today: its a solid foundation for building wealth. If you invest wisely in one property that appreciates over time, you can use the residual income generated to acquire more properties and continue to expand your assets.

Real estate investing isnt a get-rich-quick scheme or a venture you should jump into without doing your homework but properly executed, it is a savvy strategy for creating and growing wealth. And if you are considering getting started in real estate in 2020, multifamily properties are an excellent first step into the market.

Why multifamily housing?

For years, multifamily housing has attracted the attention of investors looking for high-value, low-risk properties. The multifamily sector continues to lead as the most in-favor asset class for high-net-worth investors, according to recent data from National Real Estate Investor (NREI). A growing number of Americans are renting, due to workforce, demographic and lifestyle shifts, and those trends seem likely to continue in coming years. With occupancy rates high and vacancy rates low, now is a good time to pursue multifamily properties.

You have to be willing to put in the work and get out from behind your computer to be successful as an investor. Here are four steps you can take to lay the groundwork for your first real estate investment.

Identify your purchasing budget before you engage.

You wouldnt walk into a car dealership or even a shopping mall without first knowing how much you can spend. This step is even more critical when it comes to real estate. Study your finances carefully before looking at properties. What is the firm limit of your purchasing budget? What is a conservative range you can stay within to allow for unexpected expenses? Set realistic expectations from the beginning so you dont get in over your head on your first deal.

Get to know the neighborhood you'd like to invest in.

You need to be very familiar with an area youre thinking about buying in. What are its benefits and drawbacks? What kind of tenants are you hoping to attract? What features and amenities are most important to this audience? For example, if youre looking to rent apartments to families with small children, overall safety and public school proximity are factors to consider.

Knowing the neighborhood well also helps you estimate how far your budget will go and how long a property will take to sell or rent. Use this information to shape your overarching goal, whether that is holding onto it as a long-term investment property or flipping it to sell in a shorter period of time.

Assemble your dream team.

Real estate investing isnt a one-person operation. Youll need a reliable team of professionals who are great at what they do and with any luck, youll be able to work with them on many more projects in the future. Find the right people based on their area of expertise and the scope of work.

Research realtors who specialize in the neighborhood you want to buy in, so they can help you navigate pricing, area demographics and contract negotiations. Ask for recommendations for contractors and other trades (electrician, plumber, carpenter, HVAC technician, etc.) who can deliver outstanding results. Great workmanship is the key to getting your property rented or sold in record time. If you offer a home in pristine condition, it makes the decision for the tenant or buyer simple. So its crucial to build a crew that has an eye for detail and doesnt do quick, sloppy work, whether they are refreshing the exterior paint or doing a full gut renovation.

Weigh the benefits of hold vs. sell.

While it may sound good in theory to buy and hold real estate as investment properties, you also have to know your capabilities. Do you have the time and patience to deal with tenants? Or do you prefer to get in and out and onto the next project? Only you know your personal abilities and preferences. Take them into account as you run the numbers. What should your ideal profit margin be if you hold vs. sell? What other factors such as time, energy or other obligations do you need to factor into your decision?

Investing in real estate takes patience, time and diligence, but it can make a major difference in your financial future. Make 2020 the year you take the leap as a first-time investor.

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Get Started In Multifamily Real Estate Investment In 2020 - Forbes

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January 18th, 2020 at 4:45 pm

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Goldman Sachs Unveils $750 Billion Climate Plan For Investing in Solutions, Vows Never to Support Arctic Drilling – Good News Network

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David Solomon, chief executive of Goldman Sachs, recently wrote an editorial in the Financial Times in which he laid out the premise behind a $750 billon plan for a decade of investing, financing, and advisory activity exclusively for 9 climate-critical areas such as renewable energy, sustainable agriculture, and carbon reductions.

Companies have traditionally treated sustainability as a peripheral issue, writes Solomon in the FT, focusing narrowly on the way they manage their impact on the environment. We dont have the luxury of that limited perspective any more.

The evidence of climate change is clear. And, people in both developed and developing countries are questioning the ability of their economies to reward their hard work.

Solomon and Goldman Sachs believe that transportation, the largest carbon-emitting sector of the world economy, must absolutely be a priority, while also mentioning affordable education and retraining investments, and investments in sustainable agriculturethe details of which he didnt mention in his short piece.

RELATED: Dutch Guy Famous for Cleaning Up Pacific Garbage Patch is Now Clearing the Worlds Rivers Too

Goldman Sachs stated that as part of its commitment to the 9-sector plan, it will neither finance, nor advise on any project that directly supports new upstream Arctic oil exploration or development.

Also included was a similar commitment to refuse all financing and support for coal-fired power plants unless they also included modern carbon capture technology to the degree that the emissions are offset.

A joint statement from the Sierra Club and Rainforest Action Network said that the banks fossil finance policy is now the strongest among the big six U.S. banks.

Important in their investing blueprint is a focus on climate goals that have definable and measurable metrics. This will allow Goldman Sachs partners to accurately track environmental progress of such pathways as well as the financial growth potential and measurable returns, which Solomon insists must be a primary focus.

MORE: Top 10 Most Exciting Environmental Stories in 2019 Raise Hope for Eco-Friendly 2020

capital must be deployed to those opportunities that have the greatest potential for success, and we must generate strong returns on invested capital to serve those saving for retirement, writes Solomon in the FT. This is because retirement is a vitally important source of investment capital, and is one of the most reliable metrics for economic strength.

Here, classic economics meld with climate-activism in an interesting way that can help everyone involved achieve their goals. People who care most about climate change, Swedish activist and Time Magazines Person of the Year, Greta Thunberg for example, often remark that the previous generation has sacrificed the environment and the climate of their childrens generation in order to maximize profit and material possession; or some variation on this same theme. Such a focus can now be used to rev the engine of solution-based start-ups and industries.

CHECK OUT: Three-Story Water Battery Has Already Slashed Universitys Electrical Costs By 40% in One Month

Consumer buying is a much weaker marker of economic strength and resilience than savings, investment, and production, as Solomon points out, which goes hand in hand with those acting to reduce carbon emissions. Like a steady saver, they would rather sacrifice time, capital, and pleasure now so as to be able to continue to enjoy them for years to come.

This blending of mutual long-term planning can not only promote a stronger economy, but a more sustainable world with a more stable climate.

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Goldman Sachs Unveils $750 Billion Climate Plan For Investing in Solutions, Vows Never to Support Arctic Drilling - Good News Network

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January 18th, 2020 at 4:45 pm

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Toyota to Invest $394M in Flying Taxi Start-Up Joby Aviation – Yahoo Finance

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Toyota Motor Corporation TM will make an investment of $394 million in the U.S. start-up, Joby Aviation, which engages in the production of all-electric vertical take-off and landing aircraft (eVTOL), for urban transportation services.

Toyota, alongside Baillie Gifford and Global Oryx and other investors, is the lead investor in Joby Aviation's $590-million Series C financing. It will work with Joby Aviation to design and build a fleet of eVTOL for use in a ride-hailing service.

The prototype aircraft, which looks like an enormous toy drone, features six electric propellers and is capable of flying 150 miles on a single charge, at speeds of up to 200 miles per hour.

Toyota was also part of a previous funding round for Joby Aviation that helped the company raise $100 million, back in 2018. The latest investment brings Joby Aviations total funding to $720 million, including the previous rounds.

Further, Toyota is making advancements toward self-driving vehicles. It is signing collaboration agreements to develop autonomous car technology. In 2019, Toyota invested in Recogni Inc. and May Mobility for self-driving shuttle buses. Earlier this month, it announced plans to build a prototype city of the future Woven City in Japan, which will be built on a 175-acre site at the base of Mt. Fuji.

Toyota plans to introduce fuel-cell-enabled SUVs, and pick-up and commercial trucks, by 205. Additionally, the company is working on hydrogen fuel stations in collaboration with various partners. It aims to achieve half its global sales from electric vehicles during this period.

Moreover, Toyota is shifting its vehicle production to newer cost-saving platforms, which will slash costs by 20%. The company has strengthened its ties with Subaru and the partnership intends to make better cars suitable for CASE (connected, autonomous, shared and electric) era.

Zacks Rank & Stocks to Consider

Currently, Toyota Motors carries a Zacks Rank #3 (Hold). Shares of Toyota have outperformed the industry it belongs to. Its shares have appreciated 11.7% compared with the industrys rise of 3.7%.

Some better-ranked stocks in the Auto-Tires-Trucks sector include Blue Bird Corporation BLBD, BRP Inc. DOOO and SPX Corporation SPXC, each carrying a Zacks Rank of 2 (Buy), at present. You can see the complete list of todays Zacks #1 (Strong Buy) Rank stocks here.

Blue Bird has an estimated earnings growth rate of 25.47% for 2020. The companys shares have appreciated 7.6% in a years time.

BRP has a projected earnings growth rate of 19.75% for the ongoing year. Its shares have gained 57% over the past year.

SPX has an expected earnings growth rate of 8.09% for the current year. The stock has surged 79.7% in the past year.

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This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the companys drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Blue Bird Corporation (BLBD) : Free Stock Analysis Report Toyota Motor Corporation (TM) : Free Stock Analysis Report SPX Corporation (SPXC) : Free Stock Analysis Report BRP Inc. (DOOO) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research

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Toyota to Invest $394M in Flying Taxi Start-Up Joby Aviation - Yahoo Finance

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January 18th, 2020 at 4:45 pm

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Investing in 2020: Should Investors Ride the Wave With Bank of America? – Motley Fool

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Bank of America (NYSE:BAC) reported a strong quarter to close out 2019. The top- and bottom-line results exceeded Wall Street expectations with revenue of $22.5 billion, $150 million higher than analyst projections, and EPS of $0.74 per share, which beat estimates by $0.06.

CEO Brian Moynihan noted that the results reflect "the strength of the U.S. consumer," which is evidenced by growth in spending activity among Bank of America customers -- up 5.9%, or $3 trillion, from 2018. Loan demand was also up during the quarter, a reflection of rising U.S. employment levels and growing wages. The U.S. economy continues to expand, and investors should consider this a key factor when investing in Bank of America.

Image source: Getty Images.

So if Bank of America reported solid earnings results and strong demand thanks to an expanding economy, why did the stock drop after earnings were released on Jan. 15? Lower interest rates were one reason, heavily affecting the company's revenue in the second half of 2019 and resulting in a 4% loss of profit year over year. As a result, management turned their focus to improving performance in loans and deposits, increasing attention to fee-generating businesses, and taking on additional risks. For example, The Wall Street Journal reported that the company's stock buybacks and share repurchases in 2019 helped improve EPS by $0.04 from a year earlier. This strategy allowed Bank of America to take advantage of its strong balance sheet to provide returns to shareholders.

BAC data by YCharts.

Considering all this, should Bank of America remain a long-term choice for investors?

Investors are right to be concerned about interest rate stability, which is necessary for Bank of America's business to flourish -- especially its loans. If interest rates spike, the company's margins will rise. All this depends on the Federal Reserve, which currently maintains a steady outlook, given low unemployment and modest economic growth. While there are no obvious catalysts that would change this, investors will want to remain cautious ahead of the looming election cycle. A change in political party might bring uncertainty about regulatory changes; Democrats in particular might want to limit the number of buybacks companies can make.

That said, investors should feel positive about Bank of America's long-term growth for 2020. Management remains confident that performance will be consistent with that shown in 2019, and they foresee solid loan growth in the current economic environment. In addition, management expects the credit card business to continue to grow, with a focus on the profitability of the new accounts.

Comparing Bank of America withother potential investments in the banking space, including JPMorgan Chase (NYSE:JPM) and Goldman Sachs (NYSE:GS), shows that Bank of America's businesses go beyond trading and credit cards, with loan growth and digital banking particularly helpful in stabilizing the company over time. Its long-term advantages make Bank of America an attractive investment opportunity for 2020 and beyond.

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Investing in 2020: Should Investors Ride the Wave With Bank of America? - Motley Fool

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January 18th, 2020 at 4:45 pm

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Bull Market, Treasury Notes and Green Investing: Market Recon – TheStreet

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You Can't Stop Rock and Roll

Here it comes, you're never gonna top it

On a run, no way you can stop it

Total style, perfection in decay

Running wild, flat out all the way

--Dee Snider (Twisted Sister), 1983

The broadest of equity market indices closed Thursday at all-time highs. As did the far more elite and narrow. The S&P 500, the Nasdaq Composite, the Dow Jones Industrial Average -- hard chargers, all. How about the small-caps? Both the Russell 2000 and the S&P 600 closed at 16-month highs. Same for the Transports. Pick a measure for equity market performance. Any measure. Throw a dart if you have to. Good chance that wherever that "dart" sticks, you've won a prize. A prize that rallied hard into the close, at the top of its charts.

The yield spread (3mo/10yr) that I constantly mention did manage to ease back a few basis points. This allowed growth stocks to regain their position at the top of our daily performance standings after a few days of market support having been drawn from more defensive sectors. So, it was that semiconductor stocks and software names led the Information Technology sector, hand in hand, to the top of that leader-board. Industrials, however were right behind tech for the day, which makes perfect sense. Just a day after the U.S. and China had agreed to their Phase One trade deal, the U.S. Senate passed the USMCA trade pact that will replace NAFTA, restoring and perhaps improving conditions of trade with Mexico (our largest trading partner) and Canada.

Those two deals, if executed by all parties to the letter of what has been agreed to, would (could?) add more than a percent to U.S. GDP over two years, depending on what economic opinion you read. The only thing they do agree on is that both deals are positive if properly executed.

So, where does that leave us? A market that is now in something well beyond what I would call a confirmed upward trend. Alphabet (GOOGL) joined the $1 trillion market-cap club on Thursday. Any dents in the armor? Any at all? On an intra-day basis, trading volume ebbed just a bit. That said, winners trounced losers at both of New York's exchanges, and advancing volume beat declining volume at those exchanges by nearly an aggregate 3 to 1. Given the way stocks closed, lower volume may have simply been the result of lesser supply than lack of interest. The appetite was there.

Valuation is now at19x forward-looking earnings. Will earnings catch up to valuation? Do they even need to? The answer is yes, they do. But maybe not today, or even this quarter. We already know, at least I think we know, that Q4 earnings are not going to bring home the roses. I also think that we know that in this era of compressed prices for credit over time -- married to loose fiscal policy and then mixed with an aggressive plan to add liquidity by the central bank -- the environment for elevated valuation metrics is indeed justified.

It really is all about adapting to, and excelling in, the environment provided. I think we all agree that the Fed cannot add liquidity to the mix forever, or at least not at the pace in place since the September cash market mini-crisis. In a perfect world, the deals now in place and in the works with U.S. trading partners not only maintain, but accelerate economic growth to the point where large-cap corporate earnings growth turns positive for the year after what will be four consecutive quarters of contraction.

Can this fairy tale ending play out the way we all would like to see? Oh, it can. I learned a long time ago to never fully discard any possibility. That said, even if the porridge is just right and everything ends up working out perfectly for Goldilocks, this is an election year and there remains what appears to be permanently elevated levels of both political and geopolitical risk.

At a minimum, there will be heightened headline risk to equity valuations. Beyond that? The risk that the central bank becomes uncomfortable with the current balance sheet expansion before the economy -- and by extension equity valuations -- are ready to hold their gains based on fundamental support. No, you can't stop Rock& Roll, but Rock& Roll can stop. With or without you.

Long-time readers know that I have been an advocate in the past of having the Treasury Department create more vehicles for long-term investment (aka long-term borrowing). I mean, we all get the whole "issue a ton of short-term paper and have the Fed gobble it up at artificially created price points" thing. It makes sense in this environment. It would make sense forever, if the rapid and reckless expansion of the monetary base just to allow the federal government broad access to funding while anchoring the short end of the curve forever, came with no strings attached and no risk.

That said, when the Fed picks up its football and goes home, Treasury is going to have to issue debt securities -- and a whole lot of them -- at distant maturities, if only to keep the wolves at bay. On Thursday, Treasury announced that at some point in the first half of 2020,it will start issuing 20-year paper. Detailswill follow at Treasury's quarterly refunding announcement on February 5 (which in unrelated news, also happens to be the day of the Macy's (M) investor event at the New York Stock Exchange)

To that news, I say that it's about time. I add that Treasury needs to push out 40- and 50-year paper as well, as I seriously doubt that anyone in Washington is ever going to try to tackle the federal government's budget deficit until the day we wake up and the problem has moved beyond what is considered addressable through the normal application of policy.

Don't get me wrong, I have always been invested in energy, or you might say "big oil." Despite fluctuations in sector valuation, there is nothing like knowing one can count both strong cash flow and, by extension, a robust return to shareholders. All one needs is the minimum in risk management adaptability to keep these names performing if not with the broader market, at least in positive territory.

Green, or ESG-based (Environmental, Social and Governance) investing is here to stay, and those of us who pull our living from the financial marketplace better recognize this change in both investment trends and trends in capital spending. Like it or not. Understand. Identify. Adapt. Overcome. Younger investors will read that and think, "well, no kidding." For those of us a little older, we have cut our teeth on learning how to get the information we need from balance sheets. For us, fundamental analysis has traditionally told us which way the bus was moving, while technical analysis told us where the bus stops were located.

See Jim Cramer on Mad Money on Thursday evening? See the interview with Microsoft (MSFT) CEO Satya Nadella? If there's a smarter dude on the planet, I'm not really sure. Maybe Jim himself. Maybe Peter Tchir -- but we're talking about an elite level here.

Well, to catch those of you up who missed it, Microsoft has pledged to not just clean up the firm's carbon footprint, but to become "carbon negative" by 2030. What? Microsoft will eliminate carbon emissions and invest $1 billion toward toward climate-based commitments. Carbon negativity is the reduction of the firm's footprint to less than neutral. In net, removing carbon dioxide from the atmosphere. Kind of like negative interest rates, except it's a good thing. By 2050, get this... Microsoft believes that it can eliminate all emissions that the firm has produced since 1975. The year of the Big Red Machine. That's a long time. The firm claims to have been carbon neutral since 2012. That's impressive in itself.

Hey,earlier this week, we heard from BlackRock (BLK) CEO Larry Fink, who runs a mere $7.43 billion in assets. He is telling you that climate considerations are a priority for future investment. The belief is that climate change is a factor in determining the longer-term prospects for corporate success. Do we need more than this?

Listen, I don't care whether or not you blame mankind for climate change. Regardless of fault, the world's leading asset manager believes this is an issue, and one of the world's leading tech CEOs believes this is an issue. The money is going to go where it is going to go, and who are we really on Wall Street, if we do not follow our mercenary little hearts, um I mean capital flows. Um, no, I mean what's now accepted as ethically correct. Yeah, that's the ticket.

Taiwan Semiconductor (AAPL) reported on Thursday morning. More important than the impressive earnings beat, was the guidance for the current quarter, as well as the expressed confidence regarding the ongoing roll-out of 5G technology. TSM's key customers include Apple (AAPL) , Advanced Micro Devices (TSM) , Nividia (NVDA) , Qualcomm (QCOM) , and Broadcom (AVGO) .

How about Kratos Defense (KTOS) ?... The firm announced on Thursday that it will participate in a multiple-award, indefinite-delivery/indefinite-quantity contract for U.S. Army advanced communications systems. Participating companies will compete for up to $5.1 billion in awards over a 10-year period as the U.S.Army seeks to rapidly develop technology to support networked battle command communications solutions. Ending in January 2030, this program will run with a five-year base period and five-year option.

08:30 - Housing Starts (Dec): Expecting 1.374M, Last 1.365M SAAR.

08:30 - Building Permits (Dec):Expecting 1.465M, Last 1.474M SAAR.

09:15 - Industrial Production (Dec): Expecting -0.1% m/m, Last 1.1% m/m.

09:15 - Capacity Utilization (Dec): Expecting 77.2%, Last 77.3%.

10:00 - U of M Consumer Sentiment (Jan-adv): Expecting 99.4, Last 99.3.

10:00 - JOLTs Job Openings (Nov): Last 7.267M.

13:00 - Baker Hughes Oil Rig Count (Weekly): Last 659.

09:00 - Speaker: Philadelphia Fed Pres. Patrick Harker.

12:45 - Speaker: Reserve Board Gov. Randal Quarles.

12:45 - Speaker: Reserve Board Gov. Michelle Bowman.

Before the Open: (FAST) (0.31), (KSU) (1.84), (RF) (0.39), (SLB) (0.37), (STT) (1.69)

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Bull Market, Treasury Notes and Green Investing: Market Recon - TheStreet

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January 18th, 2020 at 4:45 pm

Posted in Investment

How One Former Wall Street Investment Advisor Is Disrupting The Finance Industry With Her New Platform – Forbes

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Dana L. Wilson, founder of CHIP

Recent reports find that the racial wealth gap in America is widening. Research indicates that 40% of Americans dont have $400 for an emergency and 25% of Americans dont have any money saved for their retirement. For Blacks and Hispanics, the aftermath of a financial crisis could have more deleterious effects. Whites are more likely than Blacks and Hispanics to own a home and have other assets, which can be liquidated in the event of a financial emergency. For Black Americans in particular, the residual effects of slavery and discriminatory practices such as redlining, have made it more difficult to accumulate wealth. Dana L. Wilson is a New York City-based investment advisor who has worked on Wall Street and at firms like Merrill Lynch, State Farm and SunTrust Bank. With her over 10 years of industry experience, Dana has developed a unique understanding of the finance industry and the challenges that it faces. With these challenges in mind, Dana created CHIP. CHIP was developed with the purpose to ensure the visibility of financial professionals of color. Dana sat down with Forbes to discuss why she created CHIP, how she expects CHIP to transform diversity and inclusion in the industry and how the platform is unlike anything else on the market today.

Janice Gassam: Could you share with the readers a little bit about CHIP, what it is and how it works?

Dana Wilson: Sure. CHIP is an online platform and it stands for Changing How Individuals Prosperright now its a platform thats functioning as a database of Black and brown financial advisors and certified financial planners. So, really right now, were building out our professional database so were looking to get as many financial advisors and certified financial planners of color on the platform. Once we get to our goal number, we will release it to the public and theyll be able to go to our site, download the app, and really search for any advisor that theyre looking to work withtheyll be able to tell what city and state the person is located in, whether or not they are a fee-only advisor, which really just means that theyre only charging a set fee for their servicesitll show you a lot of information based on your needs and what you might be looking for as an individual. We also walk you through, on the app, what different titles mean because I think sometimes there might be a lot of confusionand a lack of understanding regarding what all the terminology is within the industry when it comes to different types of professionals.

Gassam: Why did you feel a platform like this was necessary?

Wilson: I felt that this was important, just based on my overall experience within the industry. Ive been in the financial industry for over 10 years nowover my time in the industry I feel like the same problems still exist when it comes to when it comes to the recruitment and retention of Black and brown professionals and the way that were serviced in the financial industryits really hard to be able to build out a business when you dont have the support, when you dont see people that look like you sitting in those seats, sitting in those senior management positionsit becomes even more difficult when youre trying to make your goals and deadlinesso for myself its been definitely a journey to sit in a place where Ive been the only woman of colorunfortunately in some situations Ive kind of gotten used to that and I felt that CHIP was extremely important not just for the industry as far as visibility but then also allowing the end user, if that person happens to be a person of color, letting them know that we are here and we do exist and I think that sometimes in corporate and even in the independent space that Im in, we dont see a lot of thatsometimes you dont necessarily find the person that might fit your needsor you might even be intimidated by the person that you start talking tosometimes being able to take those layers away and make people feel comfortable and know that there are people out there that look like youI know a lot of instances where people may feel like oh, I dont have enough money to work with an advisor, or Ive tried to do that before and they didnt really pay attention to me because I didnt have this large sum of money. CHIP is the place to say even if youre not necessarily ready, this is the place to know that you do have people to help and that are willing to educate youdeveloping this sense of visibility within the industry to kind of change a lot of whats broken in the financial system when it comes to ensuring that were [doing] a really good job to recruit and retain but then also creating really well designed, strategic and intentional shift of generational wealth when it comes to the communities that we want to serve.

Gassam: Is there anything like CHIP on the market already?

Wilson: Theres things similar to CHIP on the market, theres definitely other sites where you can go and search for advisorsbut CHIP is different in the fact that we dont just focus on independent advisors, we also focus on financial professionals in the more corporate, larger and institutional space and the reason being is that its sometimes hard for Black and brown professionals to get a seat at the tableits important that we showcase the fact that were able to be at the forefrontwere the only ones really focused on the corporate space as opposed to just independent and just fiduciary. Sometimes people dont even get to get on that side of being independent, which is just running your own practice and running your own businessbefore starting their career within the corporate space. Its important that we focus on both of those because the numbers are unfortunately low on both sidesif were only focusing on one particular segment, which is just independent advisors, were not helping the problem and the issue, so I think its important to focus on both.

Gassam: If I am a financial advisor and I identify as a person of color and I want to be on the website, what would the process be?

Wilson: Right now, its a very simple process. You can go to the websitethere are several different buttons that show advisors how to apply now, they can fill out a 2-3 minute questionnaire, that questionnaire gets filtered back towards us, and that automatically creates a profile on the appwe do our own quick background checkjust to make sure everyone on the platformis sticking our mission for CHIP.

Gassam: What do you envision the impact of CHIP being on the finance industry?

Wilson: So high-level, I really see CHIP being that bridge between the general public and professionals of color when it comes to the financial industry and really breaking down those wallsalso just bringing that visibility to helping people understand that you can do more and you can find success in this business. I think that anyone who has a desire to be in the financial industry, sometimes its tough when you dont necessarily see other people, you dont have the opportunity to network, you can become really siloed within your division or your corporate sector. But when you have that support system outside, it really makes a difference, especially when it comes to succession planning, when it comes to generational wealth, when it comes to the idea of hey, maybe I want to be able to sell my classes to someone who looks like me and were able to be very intentional about that. From a business perspective I see a lot of financial professionals able to really find revenue-generating opportunities from thisI think skys the limit. I think one of the biggest things within finance is just the education and not just the education but also understanding the industry and understanding the different types of players within the financial industryCHIP is the place to do that and also giving financial professionals a voice. I havent really seen a place where we really have a voice and were able to communicate our journeys, our thoughts, our ideas and talk to the people that need us the most. I really see CHIP having a huge shift in generational wealth and educationthis is a place where there are experienced, knowledgeable, professionals and theres a perfect place to be able to recruit, to share, to learn, to hear our stories.

Gassam: For someone reading this who doesnt really understand what a financial advisor is, could you share a little bit about the profile of a person who needs a financial advisor? There is a perception that you have to be...maybe making a certain amount and have a bunch of assets before you really need a financial advisor.

Wilson: Anyone who is really open and willing tothat perception and that myth really is not doing us justice[we think] its going to cost us a couple thousand to even sit down and have a consultationand thats really not the case. You can start out with what you have and if what you have is $25, $50 those are things that you can start out witheven if youre just working with someone and maybe theyre just helping you to save, thats a starting point in itself. A lot of advisors, they do more than just help their clients investwe work with our clients on budgeting, on cash flow managementeven if you feel like youreat the point where, I want to build up my emergency fund, thats finethere are people who are willing to work with you to help you do thatyou dont have to have a couple hundred to a couple thousand saved up. You dont have to have a large six-figure salary to sit down and talk to someoneit really is a lot about educationit doesnt matter how much money youre making, its about what youre educating them to do with it.

If youd like to learn more about CHIP, click here.

This interview has been lightly edited for brevity and clarity.

Authors note: The author has had a partnership with the interviewee in the past.

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How One Former Wall Street Investment Advisor Is Disrupting The Finance Industry With Her New Platform - Forbes

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January 18th, 2020 at 4:45 pm

Posted in Investment


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