In what is being termed as "this is not QE", the Federal reserve will soon start expanding its balance sheet again, in a manner to be specified later.
Shoring up the bank reserves has become a priority after last months spikes in overnight lending rates. On the topic of banks, we think there will be further rate cuts this year, whether warranted or not, and this puts banks' future earnings under pressure. Financials were Buffett's go to sector a little while ago. I think the best prices in financial equities are still to come.
On to these nuggets from my feed reader ...
The American Farmer in Crisis
Beth Ford, CEO of Land'O Lakes discusses how the American farmers are suffering today. Trade war has taken its toll and the Trump bailout for the farmers is far from enough.
Are environmental, social and governance (ESG) investing returns higher or lower than similar investments? The CFA Institute reviews the current findings and wants to hear your perspective.
Personally one would think that investors would consider paying a premium for the returns for ESG investments. This indicates a lower return on ESG then comparable investments. But in the era of algo driven and robotic investments, this would be arbitraged away.
So I expect there to be not much of a difference.
Children Now Average $30/Week in Allowance
Allowances were for the rich when I was growing up in India. $30/week seems to be a nice average allowance for a kid. I suppose with $0 brokerage commissions, kids now have the opportunity to be the next Buffett on the cheap.
This is all for today. Stay tuned for the next installment tomorrow.
Simplify Your Stock Research with this Excel Based Stock Research Software
Getting fundamental financial data and analyzing stocks can be painful and tedious. What if there was a convenient Excel based tool that gets the fundamental data you need at the click of a button! You can then easily build your valuation model and analyze your stocks at a fraction of the normal time.
Get EXCLUSIVE 20% discount for Value Stock Guide readers. Use the coupon code valuestockguide at checkout
You support Value Stock Guide with a small commission if you decide to purchase a subscription to marketXLS.
Take Advantage of Our Considerable Value Investing Expertise
Learn Our Value Investing Process
Learn from Our Past Investments
Become a Member and Invest with Us