Joe’s Writing Hiatus is Over, Markets up on Stress Tests
$1 First I apologize for the extended break between posts. A LOT happened since the last post, but all in all markets are still on the way up (or even), despite struggles by Congress to pass health care bills. Markets are doubting this administration can pass any major legislation, posing a threat to current prices which have tax reforms priced in. If nothing passes many stocks will fall…
$2 Today the Fed released its results for annual bank stress tests with all banks passing for the first time. Several events depend on this result, such as dividend hikes or buybacks from Bank of America ($BAC) and Citigroup ($C). Warren Buffett’s Berkshire Hathaway ($BRK.B) announced a bet for Bank of America if it passed the stress tests as well, a positive sign for the bank and its stock. Markets responded very favorably to all of this news.
$3 Yesterday bond markets across the globe went haywire after comments by Mario Draghi that quantitative easing may not last much longer in Europe. This is a positive sign for European markets, but other economies saw bond yields and currency values drop. Like the US, Europe is seeing employment rates continue to rise but wages remain stubbornly stagnant. Draghi’s comments may be premature.
Technology stocks and indexes continue to fall from highs after a long bull run. I am still invested and will likely remain so. Amazon’s ($AMZN) announcement of a partnership with Nike ($NKE) and its purchase of Whole Foods Market ($WFM) for $13.7B, Tesla’s ($TSLA) second successful rocket landing in as many tries, and the semiconductor bull market that continues support my stance. Opportunities like this and the oil industry’s lows should pique your interest throughout your investing lifetime.
We’re back in full swing! That’s all for now.