The stock market in 2014: up, but volatile
Results were helped along by a boost in Abbott’s diagnostics business, which grew by 9% in the quarter. Abbott also issued earnings guidance for 2014, saying that it expects to book profit of $2.21 a share, exactly what analysts had targeted. The company boosted its share repurchase plans as well, to $2 billion for the year. The stock is up 1.2% in premarket trading. Start 2014 off right Abbott has been a good stock lately, up 20% in the last year.
Vietnam’s Stock Surge Encourages IPOs
Should investors in the stock market root against Peyton Manning in the Super Bowl ? Its completely random and, in the words of one analyst, totally irrelevant, yet the Super Bowl indicator has been right about the direction of the market more often than not. The Super Bowl predictor holds that the Standard & Poors 500 will rise for the year if an NFC team (or an AFC team that started in the NFC) wins the big game. Thus, bulls theoretically should root for the Seattle Seahawks over the feel-good story of Manning and the Denver Broncos .
Robert Shiller: I’m still investing in the stock market
22, 2014 11:57 a.m. ET Investors are warming to Vietnamese stocks, wagering on accelerating growth in an often overlooked economy. Rising share prices are encouraging the government, which owns many companies ranging from the country’s flagship airline to its largest brewery, to privatize by selling shares in Vietnam’s capital markets. Officials recently have signaled that they are proceeding with privatization plans, which has bolstered investors’…
Will the stock market drop if Peyton Manning wins the Super Bowl?
When financial historians analyze investor returns subsequent to the 2008 market upheaval, I think what will really stand out is how significantly the returns achieved by those who looked past the headlines outpaced the returns of people who didn’t. Paralyzed by fear, the latter kept a disproportional amount of cash in the bank or invested in very low-yielding bonds and failed to participate in the market rally which had begun in 2009 and kicked into hyper-drive in 2013. I say probably not. Though I don’t believe 2014 will deliver equally huge returns, I continue to be optimistic WHAT STOCK TO INVEST not only for the reasons I have already stated but also other positive developments: The emergence of both the euro zone (a quarter of the world’s economy) and Japan (the world’s third-largest economy) from protracted recessions will continue to have positive effects for markets around the world. Now that a budget deal has been reached, market-spooking rumors are unlikely to emanate from Washington.
Is the stock market getting too overheated?
In fact, even though the unemployment rate is 7 percent, the real jobless rate is probably in the range of 12 to 15 percent, and the labor participation rate is at historic lows. Oil and gas prices are steady and trending downward. That said, if the economy heats up more than the current trend line, energy prices will follow suit. The REIT market (real estate investment trusts) got hit in 2013, breaking a long-term winning streak, but in our estimation such an asset class should remain part of most portfolios because of the likelihood of increased real estate rents or lease prices, offsetting some of the interest rate risk inherent with such instruments. In terms of market and industry sector weightings, in very general terms, an improving economy should result in outperformance in such sectors as industrial and capital goods (manufacturing picking up), technology (companies replenishing aging equipment) and consumer discretionary (the consumer feeling more willing to spend in an improving economy).
The firm’s strategists called the S&P 500 valuation “lofty by almost any measure” and attached a 67 percent probability to the chance that the market would fall by 10 percent or more. (Read More: Housing market could be facing another bubble: Shiller ) In December, Shiller, who co-founded the Case-Shiller index of home prices, shared an equally bearish view on the U.S. housing market. He told CNBC that the market could be in the early stages of yet another bubble. “In the housing market, it has its own momentum right now as people see it coming back.