Posts Tagged ‘Corporates’

Wealthy Unload Munis; Junk, Corporates, Equities, All Overpriced; Take Some Chips Off The Table

Wealthy Unload Munis; Junk, Corporates, Equities, All Overpriced; Take Some Chips Off The Table

Exterior of Warehouse with Traffic Cones

Courtesy of Mish

Inquiring minds are reading Rich Stunned by Recession Sell Munis for First Time by Bloomberg columnist Joe Mysak.

For the first time in decades, the rich showed no confidence in state and local governments during a recession.

This astonishing tale is told in the new edition of the Internal Revenue Service’s Statistics of Income Bulletin, which shows that in 2008, the latest year for which preliminary data is available, the richest taxpayers collected $7 billion less in tax-free interest than they did in 2007, an unprecedented drop of 15 percent.

The IRS had no explanation for the drop. A spokesman said there was no technical reason behind the decline, such as a change in tax treatment. So all we have are the numbers to tell the story.

Municipal bonds, as an asset class, were screaming “buy me” in 2008. There should have been an increase in tax-exempt interest earned.

Some investors did buy — just not those at the very top. The total number of individuals reporting tax-exempt interest grew in 2008, to 6.4 million from 6.29 million the year before.

How do we explain that drop in the amount of tax-exempt interest reported? It’s most likely a combination of reasons, all, again, inspired by fear: Some investors sold munis and bought CDs and Treasuries, and some shifted to shorter tax- exempt maturities, which pay less.

I can’t wait until next March, when the next installment of The Rich and Their Municipal Bonds comes out.

Take Some Chips Off The Table

I do not like Munis here. For starters, I think there will be a number of counties in Florida that go bankrupt. Harrisburg, Pennsylvania (the state capitol) is likely to go bankrupt as is Detroit, Michigan.

Yes, everyone is aware of those.

However, when liquidity is flowing everywhere, as it has been since March 2009, nothing seems to matter. Indeed, it is easy to be complacent because nothing matters. The correct way of thinking about this is: nothing matters "now".

Add in a few cities going bankrupt in California, and in a liquidity crisis I can practically guarantee it will matter. Although there may be some good bets out there, munis seem to be richly priced which means there are better opportunities ahead.

Liquidity…
continue reading


Tags: , , ,




 
 
 

Zero Hedge

In The Fed, We Trust?!

Courtesy of ZeroHedge View original post here.

Authored by Michael Lebowitz and Jack Scott via RealInvestmentAdvice.com,

Part one of this article can be found HERE.

President Trump recently nominated Judy Shelton to fill an open seat on the Federal Reserve Board. She was recently quoted by the Washington Post as follows:

“(I) would lower rates as fast, as efficiently, and as expeditiously...



more from Tyler

The Technical Traders

Market Trend Change Triggered Today

Courtesy of Technical Traders

CLICK HERE TO GET REAL TIME TRADE ALERTS!

...

more from Tech. Traders

Phil's Favorites

How gambling built baseball - and then almost destroyed it

 

How gambling built baseball – and then almost destroyed it

A team photograph of the 1919 Chicago White Sox squad, many of whom would be implicated in throwing that year’s World Series. Heritage Auctions

Courtesy of Rebecca Edwards, Rochester Institute of Technology

Imagine if, after watching the thrilling victory of the Chicago Cubs in Game 7 of the 2016 World Series over the Cleveland Indians – a game in which the Cubs won their first championship in over a century – you learn...



more from Ilene

Kimble Charting Solutions

High Times Going To Return For Pot Stocks?

Courtesy of Chris Kimble

High times for pot stocks do not come to mind when looking at this 6-pack!

On average, these stocks have declined nearly 50% since recent highs.

Are pot stocks about to experience “High Times” again?

The large declines since recent highs has each of these stocks testing support at each (1).

If the pot stocks are to move higher, these key support lines need to hold.

Out of these six stocks, ABBV is reflecting relative strength to the others, as it has been moving higher off support the past 60-days.

...

more from Kimble C.S.

Insider Scoop

44 Stocks Moving In Wednesday's Mid-Day Session

Courtesy of Benzinga

Gainers
  • Viveve Medical, Inc. (NASDAQ: VIVE) shares climbed 139.1% to $9.08 after surging 16.21% on Tuesday.
  • Achillion Pharmaceuticals, Inc. (NASDAQ: ACHN) shares climbed 69.2% to $6.18 after Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) reported the purchase of Achillion Pharmaceuticals in a $930 million deal.
  • Ideal Power Inc. (NASDAQ: IPWR) surged 55.6% to $3.50....


http://www.insidercow.com/ more from Insider

Chart School

Review of Andrew CardWell RSI with Wyckoff price waves

Courtesy of Read the Ticker

RSI measures relative strength of price action of a set period versus prior set periods. It helps review the price swings or waves, the power of each price thrust into new ground, or lack of it. Price thrust like many things relies on energy, and energy is not a constant, it has a birth, a life and a death and relative strength helps us see that cycle. 

More from RTT Tv






Chart in video

Click for popup. Clear your browser cache if image is not showing.



...

more from Chart School

Digital Currencies

Zuck Delays Libra Launch Date Due To Issues "Sensitive To Society"

Courtesy of ZeroHedge View original post here.

Authored by William Suberg via CoinTelegraph.com,

Facebook is taking a much more careful approach to Libra than its previous projects, CEO Mark Zuckerberg has confirmed. 

“Obviously we want to move forward at some point soon [and] not have this take many years to roll out,” he said. “But ...



more from Bitcoin

Lee's Free Thinking

Look Out Bears! Fed New QE Now Up to $165 Billion

Courtesy of Lee Adler

I have been warning for months that the Fed would need new QE to counter the impact of massive waves of Treasury supply. I thought that that would come later, rather than sooner. Sorry folks, wrong about that. The NY Fed announced another round of new TOMO (Temporary Open Market Operations) today.

In addition to the $75 billion in overnight repos that the Fed issued and has been rolling over since Tuesday, next week the Fed will issue another $90 billion. They’ll come in the form of three $30 billion, 14 day repos to be offered next week.

That brings the new Fed QE to a total of $165 billion. Even in the worst days of the financial crisis, I can’t remember the Fed ballooning its balance sheet by $165 bi...



more from Lee

Biotech

The Big Pharma Takeover of Medical Cannabis

Reminder: We are available to chat with Members, comments are found below each post.

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



more from Biotech

Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

more from M.T.M.

Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



more from Our Members

Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

...

more from Promotions





About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>