Investing Research

Agricultural Commodities Sector Review: Showing Strength

The commodities sector has seen some real interesting price action of late. While Crude Oil and Precious Metals have been under pressure, the Agricultural Commodities have been holding up pretty well. I took a look at the agricultural commodities a couple weeks ago here. At the time, I was looking for some long term lows to come into play and all were subsequently hit. Some of the price levels were taken out

Thanksgiving Day Massacre: Crude Oil Plummets

Those expecting an uneventful Thursday as the US celebrates the Thanksgiving holiday have been greeted by just that as S&P 500 equity futures (ES) listlessly trudge sideways. Elsewhere – in an asset class that’s highly uncorrelated, currently – conditions couldn’t be more different.  WTI Crude Oil (CL – Quote) dropped as much as -8.06% session-over-session early today, and is currently down -6.28% to just above $69/bbl, representing the largest single

7 Warren Buffett Quotes For Active Investors

There have been several well known and influential investors over the years, but perhaps none as consistent in approach and value investing as Warren Buffett. He also provided the investing community with some pretty quote worthy material over the years in his interviews, speeches, books, and letters. When reading through the endless list of Warren Buffett quotes, many of which I hadn’t seen before, I was both humored and moved

Gold And Oil: Have The Charts Been Helpful?

In a 2013 See It Market article, we covered how trends can assist in investing and trading. Given their recent weakness relative to the S&P 500, it is fair to ask: Have trends been helpful in terms of avoiding the long periods of underperformance in gold and oil?   A Picture Is Worth A Thousand Words The weekly chart below shows the performance of the SPDR Gold Trust ETF (GLD –

Gold Rally Clouds Outlook Into Year End

After hitting 4 year lows, the recent Gold rally has brought the yellow metal back to $1200/oz.  That’s the good news. The bad news is that Gold failed to rally during September (a seasonally strong month) and is now trading in no man’s land. And with a stronger US Dollar and deflation in the air, it’s quite possible that the yellow metal will visit this level sometime over the coming months. But depending on who

How To Apply WACC: Weighted Average Cost Of Capital

In previous articles, using Caterpillar, Inc. (CAT) for the figures, we have looked at different ways in which to value the company. Those considered so far have been Asset Valuation, Calculated Intangible Value and P/E Method. In a future article we will consider perhaps the most reliable – the discounted cash flow. To calculate this, we need a weighted average cost of capital (WACC) for CAT, and that is what

Why Investors Should Watch This NYSE Divergence

The New York Stock Exchange Index (NYSE) is an extremely important gauge of overall market health. Why? According to the New York Stock Exchange website (www.nyse.com): “..The NYSE Composite Index is designed to measure the performance of all common stocks listed on the NYSE, including ADRs, REITs and tracking stocks. In January 2003 the NYSE reintroduced the NYSE Composite Index under a new methodology that is fully transparent and rule-based.

SP 500 Update: Oops, Central Banks Did It Again

It’s the rally that just doesn’t want to exhale. And this morning the S&P 500 (SPX – Quote) has taken market shorts to the brink. Futures are up about 16 points, reaching as high as 2070.95 over night.  What set off this overnight euphoria? The same thing that occurred just 3 weeks ago out of Japan… yup, more easing. This time it comes courtesy of China, as the Chinese central bank

Japanese Yen: The World’s Favorite Short Trade Is Ripe For Reversal

Amidst a market environment in which certain trades aren’t simply working well but are perceived to be without any risk whatsoever, the short Japanese Yen trade is arguably perceived to be the surest thing around. According to CFTC’s Commitments of Traders, speculative shorts continue to amble along with negative volume around record levels: After a year-long consolidation of the massive drop that began in late 2012 with Japanese Prime Minister Shinzo