By Saumya Vaishampayan WSJ Wed., Feb. 20, 2019 Japan endured a sharper-than-expected drop in exports last month, the latest indication that global growth is decelerating. Stock investors seem unflustered. Japanese exports fell 8.4% in January from a year ago, the most since October 2016, to 5.574 trillion yen ($50.4 billion), according to data released Wednesday. Japan, the world’s third-largest economy, has suffered from lower demand for goods such as smartphone components and the hit to Chinese growth from U.S. tariffs. Japan’s exports to China slid by 17% in January. Still, stocks advanced across the region on Wednesday—even though the decline in exports was worse than consensus expectations, according to Refinitiv, for a 5.5% drop. The Nikkei rose as much as 0.9%, and was up by 0.3% more recently. Other export-reliant markets linked to the tech cycle and mainland China also advanced: Taiwan’s Taiex rose 0.8%, while South Korea’s … [Read more...] about Stock Investors Look Past Gloomy Trade Data
Sections SEARCH Skip to content Skip to site index Economy Subscribe Log In Subscribe Log In Today’s Paper Advertisement Supported by The quarterly parade of updates on profits and losses will either give credence to fears about the economy or ease them. ByMatt Phillips Oct. 14, 2018 Last week was all about fear. This week, investors could turn to greed. After the stock market was rocked by its worst week in seven months, investors will now start to contend with the quarterly parade of updates on profits and losses from corporate America. These reports, and the executive pronouncements that come with them, will either give credence to investors’ fears — that Strong economic growth and steep cuts to corporate tax rates produced jumps in corporate profits of 27 percent in the first quarter and 25 percent in the second. That growth helped push stock benchmarks to record levels as recently as September. … [Read more...] about After an Ugly Week, Stock Investors Seek Clues in U.S. Earnings
Now here’s an interesting chart in an era of rising global bond yields. From Bank of America Merrill Lynch, it plots US dollar-denominated stock market returns by individual nation versus the size of their current account balance as a percentage of GDP over the past two years. Over that period, coinciding with a gradual lift in global bond yields, stocks in those nations that have run a current account surplus have, from a broad perspective, tended to outperform those that have run a current account deficit. Put another way, those with excess savings have generally produced larger US dollar-denominated returns than those relying upon the kindness of others to make up their funding shortfall. That comes with the disclaimer that the US was excluded from BAML’s analysis, and clearly stocks there have performed strongly despite continued deficits. However, while past performance is not indicative of future returns, it does provide some food for thought for stock investors … [Read more...] about Here’s an interesting chart for stock investors in an era of rising bond yields
Published July 06, 2018 Markets Motley Fool Facebook Twitter Comments Print Q: The Trump administration's trade war with China has officially started, and we seem to be on the brink of similar events with most of our key trading partners. Is this a positive or negative factor for U.S. stocks? On the surface, it may seem like U.S. corporations would be a big winner of President Trump's tariffs. After all, if imported goods become more expensive, U.S.-made goods would become more competitive, and the companies that make them should sell more, right? Continue Reading Below Well, not really. There are a few reasons why a trade war will likely be an overall negative factor for U.S. stocks. For one thing, many U.S. companies do a substantial portion of their business overseas. For example, heavy equipment maker Caterpillar generates about 60% of its revenue outside of North America. Retaliatory tariffs could be devastating to these businesses' international … [Read more...] about Ask a Fool: Is a Trade War Good or Bad for Stock Investors?
Published June 29, 2018 Markets Motley Fool Facebook Twitter Comments Print It's fun to chat around the water cooler about the next big tech stock, but when it comes time to invest, people often overlook incredible companies because they aren't household names or exciting businesses. Boring can be brilliant. And that's why investors should stop overlooking Winnebago Industries Inc. (NYSE: WGO) and The Scotts Miracle-Gro Company (NYSE: SMG). RV maker dips into the water Continue Reading Below Winnebago, headquartered in Minnesota, manufactures Class A, B, and C motorhomes, towables, specialty vehicles, and parts and services. And while the idea of recreational vehicles (RVs) might be boring to some, the RV business has been strong recently. The company's third-quarter results sent its stock soaring by more than 12% after the news release was well-received by investors. Winnebago's towables division, thanks to its 2016 acquisition of Grand Design, continues … [Read more...] about 2 Boring but Brilliant Stocks Investors Shouldn’t Overlook