facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast blog search brokercheck brokercheck

The Best of What They Said and I Read Week Ending 2/17/19

Short excerpts from articles I found interesting.  I may not agree with the author and the following material is not intended as investment advice

The Wall Street Journal – February 15, 2019 – Nasdaq Exits Bear Market as Stocks Rally – Georgi  Kantchev and Corrie Driesbusch

  • “…The new year rally in technology stocks lifted the Nasdaq Composite to its eighth consecutive weekly rise and propelled the index out of the bear market it entered in late 2018.  Tech companies have largely reported fourth-quarter results that exceeded expectations, while easing fears among investors about trade tensions and rapid interest-rate increases have also propelled the index higher. The Nasdaq closed more than 20% above its Christmas Eve low, which marks a new bull-market run.”
  • “…It has risen 18% over the past two months, its largest eight-week gain since May 2009, but is still off 7.9% from its August record.  All three major U.S. stock indexes ended the week up more than 2%. The Dow Jones Industrial Average also notched its eighth consecutive week of gains for its best eight-week stretch since September 2009, rising more than 15%.”

Global Investors Investor Alert – February 15, 2019 – Frank Holmes 

  • “…Whether you’re a believer in renewable energy or not, the tipping point may have already occurred. Among the fastest growing jobs in the U.S. right now are wind turbine service technician and solar panel installer, for whatever that’s worth. And according to a report by Bloomberg New Energy Finance (BNEF), corporate purchasing of renewable energy more than doubled from 2017 to 2018…Analysts believe that, by 2035, renewable energy will account for more than half of all power generation as its price falls below that of coal and gas-generated energy. Fifteen years after that, nearly three quarters of total energy consumed around the world will be derived from renewable means, chiefly wind and solar.”
  • “…And we haven’t even mentioned electric vehicles (EVs)…China is leading the world in EV adoption and will likely continue to do so for some time. In the fourth quarter of last year, China was responsible for 60 percent of global EV sales... By the end of last year, electric cars made up about 7 percent of total new vehicle sales in China, with a compound growth rate of 118 percent since 2011. In about a decade, the Asian country will account for nearly 40 percent of the global EV market, followed by Europe (26 percent) and the U.S. (20 percent), according to BNEF.
  • “…American household debt hit a new record high. Overall debt rose by $32 billion to $13.5 trillion in the fourth quarter, the Federal Reserve Bank of New York said in a report out Tuesday.  With retail sales disappointing this week, investors will be looking at next Thursday’s release of the Leading Index for clues as to the future of the economy. While still positive, growth has been decelerating.”

The Kiplinger Letter – February 15, 2019

  • “The outlook for the higher education industry?Challenging, as the 6,000 such institutions in the U.S. face flat enrollment, higher operating costs, changing tastes in top majors and other big shifts.  The landscape is ripe for change as schools feel mounting pressure to meet new student demands.  Colleges can’t count on rising enrollment to offset rising costs, as they have in the past.The college-age population will stay flat until 2035 or so. Folks 25 and older are opting for college less because of the strong economy. And enrollment of international students was down in 2017 and 2018.”
  • “The type of school feeling the biggest effect: Small liberal arts colleges that don’t rank among the elites, especially those in the Northeast and Midwest. Seventeen such schools there have closed or merged in the past three years. They are suffering from a steep drop in liberal arts students and a shift to in-demand tech majors, such as computer science.  Increased competition will hit all institutions, though, and spur more-intense recruiting efforts.”
  • “What will schools do to answer the many challenges?...Some large universities are consolidating campuses or paring back faculty benefits.…Public universities are offering in-state tuition to out-of-state students who meet certain criteria, to lure more students…Schools will focus on improving students’ job prospects. New majors, such as blockchain, are being designed to prepare folks for the fast-changing economy…Look for new financing plans to allay fears of hefty loans. Make School, a start-up, has an accredited computer science degree with free tuition if students agree to repay 20% of their gross pay for five years.”  

Get Acquainted meeting

We offer a complimentary 45 minute “Get Acquainted” meeting. 

Contact Us