The Financial Beat, LLC – Market Pulse

Market Pulse

A Treasury Yield Inversion is Unwelcome News

INTRO This week, the treasury yields between a 5-year note and 3-year note inverted. Meaning interest payments to purchase 3-year notes began to pay higher interest than that of a 5-year note. The relationships between the two differently termed bonds are usually the opposite. This inversion does not equate to a recession, but it does… View Article

Goldman Sachs & 1MBD

1MBD Right now, Goldman Sachs is being investigated for involvement in structuring a deal worth over $6 billion with 1MDB (1Malaysia Development Bhd.). 1MBD was a development arm of the Malaysian government, but no longer exists. SE Asian Goldman Executive, Tim Leissner, is accused of bypassing internal controls to the raise funds for 1MBD head,… View Article

GM Surprises Everyone with Layoffs

INTRO The American auto industry was walloped during the recession and received over $80 billion in cash through stock purchases through the Treasury Department TARP (Troubled Asset Relief Program). Ford received a loan from the Term Asset-Backed Securities Loan Facility. The debt reorganizations involved mergers, acquisitions, and a myriad of guarantees the automakers were required… View Article

October’s Stock Market Decline: An analysis

Stock Market Decline Last month, we saw the most significant decline in stock market performance since the Great Recession ended. For most of the year, we heard warnings to exit emerging market equities. Securities markets in developing countries first became susceptible to US tariff wars a weakening Chinese currency. Foreign investors were selling their shares… View Article

Stock Buybacks

Stock buybacks. You hear about them all the time, but why do companies maintain these programs? There are a few potential benefits a company can attain from repurchasing their stock. If after analyzing the market, executives conclude that currently traded price of their stock is low, they can buy back shares to lift the market… View Article

Online Mega Retailers-A Shopping Season Preview

INTRO As we near the holiday season, I thought that this would be a good time to preview some online megaretailers. Conversely, after the holiday season, I will also review who did well, who not so well, and explore what that could spell among retailers industry-wide. ALIBABA Alibaba Holdings (BABA), China’s largest e-commerce business, has… View Article

Student Loan Debt Is a US Problem

THE ACCEPTANCE LETTER When I received my acceptance letter from Baylor, it was one of the most joyous days of my life. I got into the school of my dreams but had no concept of the cost of school. My family had no savings for college. In my ignorant bliss, I supposed the details would… View Article

Alan Greenspan’s Take on the Labor Market

FED CHAIRMAN FRATERNITY In a recent interview, Alan Greenspan, one of the most well-known Fed Chairmen in recent history, gave his vote of confidence in the current Fed Chair, Jerome Powell. He described the present labor market as unprecedented because unemployment is at a 50 year low. Economists analyze shifts in macroeconomies as fractions of… View Article

Are threats to our economic growth converging?

By now, everyone is aware of the broad stock market plunge yesterday. The S&P 500 fell nearly 40 points yesterday; the NASDAQ -4.0%. The S&P had reached its 6-month high only three weeks ago. MarketWatch Bummer! The DJIA lost 836 points as well. It wasn’t pretty. Even though markets somewhat recovered today, it’s still been… View Article

Bearish Conditions for Global Bond Markets

The global bond market is suffering, and there doesn’t seem to be relief in sight. People have long sought after traditional investment products for stable and lower risk asset classes. The most widely invested in fixed-income products are treasury bonds and mutual funds. ETF-traded bond funds have been very popular over the past two years…. View Article

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