News Stocks 

Buybacks are the ‘dominant’ source of stock-market demand, and they are fading fast: Goldman Sachs

“Goldman Sachs predicts that share repurchase authorizations will fall another 5% in 2020, and for good reason, given that in 2019, S&P 500 companies paid out more than 100% of their free cash flow in the form of dividends and buybacks” writes Markets Reporter for marketwatch.com. Corporations are on pace to provide $480 billion in bids for S&P 500 SPX, +0.07%  stocks this year, according to an analysis by Goldman Sachs, providing more demand than any other source in 2019, including households, mutual funds or exchange-traded-funds.There has been no bigger…

Read More
News Stocks 

A wildly popular trade that involves buying proven stock-market winners just saw its biggest outflow on record

“Those investors have continued to flee this month, with $155 million pulled from the momentum ETF on Nov. 5 alone” writes Finanzen Net Gmbh for businessinsider.com. Investors pulled a record $1.6 billion from momentum-focused exchange-traded funds last month, according to Bloomberg data going back to 2012. Both growth and momentum strategies have dominated the more than 10-year bull market as historically easy monetary conditions have reset investor valuation thresholds.Here are the top weightings in the ETF, ranked by current market value: The rotation away from the momentum trade comes as…

Read More
Markets News Stocks 

Get ready for a jolly holiday season, and maybe a stock market rally, Ned Davis Research says

“And according to an analysis by Ned Davis Research, markets will not only do better than last year, but may even ring in the holidays with a rally” writes Andrea Riquier for marketwatch.com. Read: Investors got spooked by the Christmas market massacre, new fund flow data shows But conditions are different this time, according to Ned Davis analysts Will Geisdorf and Wenbo Zhou. Source: marketwatch.com

Read More
News Stocks 

How big a year-end stock-market rally to expect this time

“Oil prices might be acting like a warning light when it comes to the stock market, which is trading near all-time highs despite growing concern over the U.S.-China tariff battle and rising global trade tensions” reports marketwatch.com. Caterpillar Inc. is scheduled to report third-quarter earnings on Wednesday, and expectations are subdued as trade tensions with China persist and global economies show signs of slowing.Gerber says a report about arsenic in baby food ‘may have caused unnecessary alarm.’ See full story. Source: marketwatch.com

Read More
Markets News Stocks 

A stock-market selloff could spark an economic recession, says BNY Mellon’s Liz Young

“But this rosier outcome, and whether equity markets can overcome recent jitters and break out to new highs, may hinge on what the Federal Reserve does in the coming months, she said” writes Markets Reporter for marketwatch.com. And Liz Young director of market strategy at BNY Mellon, says that a sharp downturn of major equity indexes could actually be the catalyst that tips U.S. expansion, currently in its record 11th year, into recession.That disdain for market declines expressed by the fictional corporate raider played by Michael Douglas in the 1987…

Read More
News Stocks 

Federal Reserve and global central banks have reached a ‘tipping point’, amplifying stock-market uncertainty

“Central banks will remain accommodative, but this can only provide the backdrop for structural reform and fiscal policy measures” writes Mark Decambre for marketwatch.com. In the next 2 years, the growth baton will either be passed – or dropped,” he told MarketWatch. “The broader issue is that central banks are reaching a tipping point – as illustrated by ECB [Thursday].Indeed, the Fed has often cited stubbornly low inflation, below the central bank’s target of 2%, as one reason for its rate-cut policy. Source: marketwatch.com

Read More
Markets News Stocks 

Why a bout of small-cap carnage could be a red flag for stock-market bulls

“The Russell 2000 is made up of the bottom 2,000 stocks by market cap in the Russell 3000 index” writes Markets Reporter for marketwatch.com. U.S. stocks lost ground for five straight days last week, but the pain dealt to the major benchmarks was nothing compared with those felt by small-cap stocks.In other words, small-cap stocks are nearly as susceptible as large-caps to volatile market sentiment related to trade concerns. Source: marketwatch.com

Read More
Markets News Stocks 

The best strategy to recover from a stock-market bottom is one you already know

“For some younger investors, the mortgage-credit crisis, stock-market bloodbath and eventual rebound might seem irrelevant, or even ancient history” writes Investing Columnist for marketwatch.com. Since we’re 10 years out from the bottom, you will be impressed with the 10-year return figures for most stock mutual funds.Even the most reasonable person can panic during a sustained stock-market decline.Charles Lemonides is the chief investment officer of ValueWorks, which is based in New York and has about $200 million in assets under management. Source: marketwatch.com

Read More
News Stocks 

How trillion-dollar stock-market index funds are vulnerable to manipulation that ‘could harm American investors’

“A recent op-ed in the New York Times cautions that passive index funds may be vulnerable to bias and, possibly manipulation, as interest in those funds has ballooned over the past decade” writes Mark Decambre for marketwatch.com. Dangers may lurk in index funds, a popular area of the stock-market known for its recent and consistent record of outperformance against actively managed funds, according to experts. Nearly $6.7 trillion, or a third of those assets resided in passive funds at that time, the data provider said.Such passive ETFs track an index…

Read More
News Stocks 

Chinese stock-market investors are cheering Trump’s softened tone on tariffs

“The U.S. is slated to hike tariffs on $200 billion worth of Chinese imports on that date if no agreement is reached, according to the Associated Press” writes Markets Reporter for marketwatch.com. China’s exports fell 4.4% year-over-year and imports dropped 7.6% in December while exports from Korea, a popular barometer for global trade, slid 5.8% in January and imports shrank 1.7% in January.The news has also bolstered U.S. stocks SPX, +0.35% with major indexes trading at 2019 highs. Source: marketwatch.com

Read More