Margin debt has seen a steep decline from its record high hit earlier this year. That’s a warning sign for US stocks, according to a new report from Bank of America Merrill Lynch. This measure has proven to be something of a solid stock market indicator, particularly around notable selloffs during the dotcom bubble and the financial crisis. Margin debt hit a record high back in May. It’s gone mostly downhill from there. The notable decline is a negative development for US equities, according to a new report from Bank of America Merrill Lynch. Margin debt, or the debt investors take on against their portfolios, recently slumped to its lowest level of the year as stock markets’ recent carnage has accelerated. This measure of risk has proven to be a somewhat reliable leading indicator for the stock market. “We view declining NYSE margin debt as a macro risk for US equities,” Stephen Suttmeier and Jordan Young, the firm’s technical research … [Read more...] about A reliable, little-talked about stock-market indicator is rolling over, and its a ‘warning’ sign for investors
Stock market reports
Growth fears grip world stock markets before Fed meeting
LONDON (Reuters) - World stock markets tumbled on Tuesday as fears about a slowing global economy gripped investors, just as the U.S. Federal Reserve looks set this week to deliver its fourth interest-rate hike of the year. FILE PHOTO: A man looks at an electronic stock quotation board outside a brokerage in Tokyo, Japan, November 13, 2018. REUTERS/Toru Hanai Germany’s Ifo economic institute said its business climate index fell for the fourth month in a row to its lowest level in more than two years, adding to the global growth worries. Blue-chip bourses in London, Paris and Frankfurt fell as much as 0.8 percent in early trade with oil stocks leading the decline as crude prices slid more than three percent. A speech by Chinese President Xi Jinping which investors had hoped could lift morale had little impact, with Chinese shares falling over 1 percent. Japan’s Nikkei lost 1.8 percent, with Monday’s fall in U.S. stocks to their lowest levels in more than a … [Read more...] about Growth fears grip world stock markets before Fed meeting
A possible stock-market crash is starting to freak out investors — and that might mean it’s time to buy
A widely monitored measure of investor sentiment falling to extreme levels may suggest the stock market‘s drop has gotten so bad that it’s good. The latest reading of the American Association of Individual Investors’ survey of bullish sentiment fell to the lowest level since mid-2016, coming in at 20.9. Another measure from the AAII, the percentage of bullish investors minus the percentage of bearish investors, has also fallen to multi-year lows. A handful of influential market strategists say all this extreme pessimism is forming something of a contrarian “buy” sign; in other words, such extreme readings must mean the market is bottoming. Watch stocks trade live. The recent acceleration of the stock market’s sell-off has pushed individual investors to one side of the boat. To some widely followed market strategists, that means it’s time to buy. As major US indexes have tumbled into a correction – down at least 10% from their … [Read more...] about A possible stock-market crash is starting to freak out investors — and that might mean it’s time to buy
The wounded stock market still pays dividends to investors
By Michael Wursthorn The Wall Street Journal Sun., Dec. 16, 2018 Dividends have been a silver lining for the stock market this year, but investors are grappling with whether they can keep up such a rapid pace of growth. Companies in the S&P 500 have spent nearly $421 (U.S.) billion on dividends through November, a record-setting sum that eclipsed last year’s mark of roughly $391 billion and the full-year tally of $420 billion, according to S&P Dow Jones Indices. More than two dozen companies announced additional dividend increases so far this month, which will push the year’s total even higher. Those payouts are easing investors’ burden as they navigate a challenging investment environment. The S&P 500 is on pace to fall 2.8% this year for its first annual loss since 2015, as concerns including a trade spat with China, Federal Reserve interest-rate increases and a sharp drop in oil prices point to the potential for an economic slowdown. … [Read more...] about The wounded stock market still pays dividends to investors
Is the stock market undervalued? The data says yes
By Paul Dietrich Published December 14, 2018 Opinion FOXBusiness Facebook Twitter Comments Print video Disney, AT&T stocks are undervalued: Paul Dietrich Fairfax Global Markets CEO Paul Dietrich discusses the state of the U.S. stock market. After a few weeks riding the stock market roller-coaster, financial journalists are trying to explain what is causing this extreme volatility. Continue Reading Below There seems to be a new “fear of the day” knocking down the stock market. Chinese trade talks, Brexit, government shutdowns, Fed rate hikes, inverted yield curves or Trump’s tweets all seem to be culprits in this conspiracy to drive down the stock market. Since none of these issues have any significant impact on the underlying U.S. economy, why do they cause so many declines in the stock market? More From FOXBusiness.com... Business and Economy Opinion Here’s what stocks Bank of America is … [Read more...] about Is the stock market undervalued? The data says yes