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The Best of What They Said and I Read Week Ending 4/29/2018

Short excerpts from articles I found interesting.

I may not agree with the author and the following material is not intended as investment advice.

Barron’s  – April 27, 2018 – No Volatility Here:  Cash Makes a Comeback - by Daren Fonda

“Rising interest rates are punishing bonds and causing stocks to teeter. But cash investments—a misnomer until recently—haven’t looked so good in years.  Yields on money-market funds and other cash sanctuaries are approaching 2%, levels not seen in almost a decade. “Cash is an asset class once again,” says Deborah Cunningham, chief investment officer of global money markets at Federated Investors.

“Cash’s comeback has been a long time coming. From 2009-2016, the Fed held short-term rates near zero…But as the Fed has hiked rates—five times since late 2016—money-market yields have rebounded. The average is 1.5%, almost a point above the level a year ago, according to Crane Data…”

The Wall Street Journal – April 27, 2018 – Amazon Closes in on Title of Largest U.S. Company – by Amrith Ramkumar

“A 4.6% drop in Apple shares this year recently put the technology behemoth’s market capitalization at about $820 billion, well below its record…Assuming Apple’s stock stays flat, Amazon shares would need to get to $1,694.03, a nearly 7% additional gain, for the company to pass Apple in market value…”

“Amazon’s latest record comes after the company delivered a one-two punch, reporting its best revenue growth in more than six years while topping $1 billion in profit for the second straight quarter. …The company also said it would raise the annual price of its Prime membership program 20% to $119, a sizable leap that could deliver meaningful revenue but also comes amid a sharp jump in fuel prices. Amazon recently said it has more than 100 million Amazon Prime members…”

U.S. Global Investors – April 27, 2018 – Investor Alert – by Frank Holmes

“…Bitcoin is back in the news in a big way. The world’s largest cryptocurrency neared $10,000 this week, meeting strong 200-day moving average resistance of around $9,800. Also this week, the 17 millionth bitcoin was mined. Remember, the crypto was originally designed to have a limited supply of “only” 21 million, an attractive feature that should continue to burnish its value as we get ever closer to that ceiling…”

“…The major market indices finished down this week. The Dow Jones Industrial Average lost 0.62 percent. The S&P 500 Stock Index fell 0.01 percent, while the Nasdaq Composite fell 0.37 percent. The Russell 2000 small capitalization index lost 0.50 percent this week…The 10-year Treasury bond yield fell 0.3 basis points to 2.958 percent…”

“…A heated debate lasted for months over whether companies would hand the biggest tax break in three decades back to shareholders or reinvest it in its businesses. Finally, there’s finally some hard data. Among the 130 companies in the S&P 500 that have reported results in this earnings season, capital spending increased by 39 percent, the fastest rate in seven years, according to data compiled by UBS AG show…”

“…The yield on the benchmark 10-year Treasury note hit 3 percent intraday for the first time in more than four years on Tuesday. The rally in yields has put bonds in negative territory this year…”

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