The sell-side firm endorsed its prior view that GM stock will be trading at a premium to Ford Motor Company (NYSE:F) stock during 2015. Bidness Etc is a team of more than 120 dedicated individuals who have distilled a decade and billions of dollars’ worth of trading experience to change the way people think about and interact with finance.
Using data collected between 1950 and 2013, we can see that the returns of a portfolio composed strictly of stocks have greatly outperformed those of bonds and a blended portfolio in the short term, or one-year period.
But when blended portfolios were held for five, 10 and 20 years, they began to do two curious things: 1) they gradually outperformed bonds, and 2) they demonstrated less risk than stocks.
In other words, stocks and bonds both have their own unique DNA of volatility, but when equally combined, the two have tended to balance each other out favorably. And in case the analogy was lost on anyone, the hare is the single-asset-class-domestic stocks, for instance-whereas the multiple-asset-class is the tortoise. Investors are flocking to the $3.6 trillion municipal bond market at a time of low interest rates, uneven global growth and concern that the nearly uninterrupted rise in many stocks and bonds since the financial crisis will come to an end.
Energy stocks were the best performers for the week, rebounding from recent underperformance. Financial stocks have been among the best performers over the past month and are showing signs of relative strength.
If oil can find a bottom and move higher, small- and mid-cap energy stocks would be among the first beneficiaries.
Chilean President Michelle Bachelet presented a bill this week that would make union leaders the only authorized negotiators in wage bargaining, while outlawing mining companies’ rights to replace workers on strike. After scouring a list of large-cap stocks with dividend yields of at least 3.75%, then comparing their valuation metrics, Seagate Technology (STX), an American data storage company incorporated in Dublin, Ireland, stood out from the pack.
The sell-side research firm also revised its earnings estimates upward for the company, following a $5 billion stock buy-back announcement by the auto giant.
Out of the 24 analysts who cover the company stock, 15 suggest a Buy and eight recommend a Hold.
This likely can be attributed to a flattening yield curve that should help banks and insurance companies as we move through 2015.
The proposal will risk further investment delays according to the mining companies affected. That starts with a 4% dividend yield, which is exceptional for a large-cap stock in this market.
In the last fiscal year, STX bought back 9% of its shares, giving the stock just over 13% total yield.
However, this will be positive for the inverse beneficiary companies in sectors such as airlines and consumer discretion. As of this writing, the stock is trading below its 50-day moving average of $56 and even further below its 200-day moving average of $60. Plus, Seagate has also adapted its enterprise storage business to include cloud-based solutions.
What is an option in stocks|