WFC

In the News: Healthcare Uncertainty, Housing Confidence Drops, and Banks Reel in Risk

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Let’s take a look at some of the top stories impacting the markets, including the heightened uncertainty surrounding healthcare legislation, the drop in the NAHB Housing Market Index, and measures being taken by banks to limit exposure to risky counterparties. By Kris Rosemann Shares of health insurers and health care providers (XLV) are facing notable selling pressure December 17 after a federal judge in Texas ruled the Affordable Care Act is unconstitutional without the penalty for lack of insurance coverage, which was repealed by Congress last year. The ruling came on the evening of December 14, but it is almost certain to be appealed. The Affordable Care Act has been beleaguered for some time now, and the latest news casts … Read more

What’s Weighing on the Markets

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Renewed concerns over the severity of trade tensions, a flattening yield curve, negative news out of the homebuilding space and other geopolitical uncertainties have investors feeling anxious. December 4 marked the worst day for the Dow Jones Industrial Average since October 10. By Kris Rosemann What was once thought to be broad-based optimism related to potentially easing trade tensions between the US and China (FXI) and investors taking a liking to recent commentary from the Fed regarding an easing of the future trajectory of rate hikes came tumbling down during the trading session December 4. President Trump tweeted early in the session that people should remember he is “a Tariff Man” if a trade deal cannot be reached with China, … Read more

In The News: 10-Year Treasury Yield, Wage Pressure in Restaurants, Cannabis Volatility

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Let’s take a look at some of the hottest topics around the markets. By Kris Rosemann Financial stocks (XLF) rallied during the trading session September 19 as the 10-year US Treasury yield crossed the 3% threshold for the first time since late May 2018 and investors anticipated rising net interest margins for banks. Strong levels of consumer confidence are likely helping the banking sector as well, but we’re watching closely as the Fed continues on its hawkish path with two more rate hikes expected in 2018 after completing seven hikes since December 2015. The potential for an inverted yield curve cannot be ruled out, but some observers are expecting a continued rise in the 10-year Treasury yield through the end … Read more

Dividend Increases/Decreases for the Week Ending June 29

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Below we provide a list of firms that raised their dividends during the week ending June 29. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Camden National (CAC): now $0.30 per share quarterly dividend, was $0.25. Citigroup (C): now $0.45 per share quarterly dividend, was $0.32. Computer Services (CSVI): now $0.36 per share quarterly dividend, was $0.31. Discover Financial Services (DFS): now $0.40 per share quarterly dividend, was $0.35. First Bancorp (FNLC): now $0.29 per share quarterly dividend, was $0.24. Glacier Bancorp (GBCI): now $0.26 per share quarterly dividend, was $0.23. … Read more

Study: Valuentum’s Best Ideas Newsletter Portfolio

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To read the study, please click on the image to download the pdf document (pdf).

ICYMI: Valuentum’s Improved Stock and ETF Web Pages

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Valuentum has rolled out improved stock and ETF web pages on its website valuentum.com/. Now, subscribers can access key proprietary information on the stock and ETF web pages in addition to the customary stock and ETF reports. Dear reader, We have some exciting news that we can’t wait to share with you! At valuentum.com/, we have rolled out new stock and ETF pages that conveniently include a variety of our proprietary metrics from the Dividend Cushion ratio to the Economic Castle rating and beyond! There’s even mouseover functionality so you can learn about how we define the key metrics across our stock-selection and dividend growth methodologies. You’ll still have access to the stock and dividend reports on the landing pages, … Read more

Bank Earnings Pour In

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The banking industry is on solid footing, and while Wells Fargo is creating negative headlines, the first quarter of 2018 was a good one for many financial institutions. Expanding revenue and net income, increased capital-return programs, solid returns on equity, and generally positive commentary, despite an increasingly competitive lending environment, were the norm. A narrowing of spreads on US Treasury instruments may pose a challenge to net interest margin expansion in the group, but there are other opportunities to capitalize on a surging LIBOR and the increasingly volatile equity market environment. All in, the performance in the first quarter of 2018 was “more good than bad” for the banks, and we continue to look for the right price to consider … Read more

The “Luck” and “Randomness” of Index Funds

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Please select the image below to download the document. Image shown, page 1 of 14. Tickerized for Valuentum’s coverage universe.

Buffett’s Berkshire, Corporate Buybacks on Pace for Record; Lithium, Steel Prices on the Move

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Image Source: Berkshire Hathaway, Shareholder Letter (2017). “Fifteen common stock investments at year end that had the largest market value.” “The less the prudence with which others conduct their affairs, the greater the prudence with which we must conduct our own.” – Warren Buffett, Shareholder Letter (2017) By Kris Rosemann and Brian Nelson, CFA Simulated Best Ideas Newsletter portfolio holding Berkshire Hathaway’s (BRK.A, BRK.B) fourth-quarter results didn’t disappoint, and commentary from the Oracle of Omaha, Warren Buffett, was at its finest in the company’s Shareholder Letter. The letter was chock full of insights, from an emphasis on normalized earnings power, to buying stocks at a “sensible purchase price,” to warning about the dangers of “purchasing frenzy” with respect to M&A, … Read more

The Sell Off February 5 Remains Minimal Compared to the Gains of Past Years

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Image shown: The SPDR Dow Jones Industrial Average ETF (DIA) share price performance since mid-2009. The pullback the past few days hasn’t amounted to much, but it has caught the attention of investors.   Recent equity market price declines don’t add up to much compared to the huge gains of recent years. Typical bear markets result in the evaporation of nearly 40% of investor wealth, on average. By Kris Rosemann and Brian Nelson, CFA The recent sell-off in equities accelerated in the trading session February 5 as concerns regarding an uptick in inflation (embedded in discount rates within valuation frameworks) and potentially materially tightening monetary policy in the US are weighing on investors’ minds. When the dust finally settled at … Read more