Wall Street is lacking momentum as the Presidential inauguration comes closer and the level of consternation in the market is palpable. Markets closed down (SPY -0.3%) on low volume, however, stocks have mostly stalled, leaving the Dow flat for the month led by declines in utilities and energy shares.
NEW YORK (Reuters) - U.S. stocks added to losses in afternoon trading on Thursday, led by declines in utilities and energy shares, with investors cautious ahead of Donald Trump's inauguration on Friday.
(Reuters) - Insurance broker Aon Plc is in advanced talks to sell its employee benefits outsourcing unit to buyout firm Clayton Dubilier & Rice LLC for nearly $4.5 billion, people familiar with the matter said on Thursday.
WASHINGTON (Reuters) - U.S. regulators has found no evidence of any defects in Tesla electric cars after investigating the death of a man whose Model S collided with a truck while he was using its Autopilot system, the first fatality involving semi-autonomous driving software.
SAN FRANCISCO/NEW YORK (Reuters) - This past November, Nasdaq Inc hired a helicopter to film Manhattan's skyline using Snapchat's new video-camera sunglasses and sent the aerial footage to its social media followers.
NEW YORK (Reuters) - Mylan NV has yet to reach a settlement with the U.S. Department of Justice over the classification in the Medicaid program of life-saving allergy treatment EpiPen, the acting head of a top U.S. government health regulatory agency told Senator Charles Grassley in a letter disclosed on Thursday.
WASHINGTON (Reuters) - Western Union Co agreed to pay $586 million and admitted to turning a blind eye as criminals used its service for money laundering and fraud, the U.S. Department of Justice and the Federal Trade Commission said in statements on Thursday.
SEATTLE (Reuters) - Spirit AeroSystems Holdings Inc , a major supplier to aircraft maker Boeing Co , is considering outsourcing up to 85 U.S. supply chain jobs, possibly to a company overseas, according to three people familiar with the plan.
Submitted by Lance Roberts via RealInvestmentAdvice.com,
What Drives Returns
A little over a year ago, John Coumarianos penned a very interesting note with respect to the view that it is just "volatility" is driving prices.
"The great economist John Maynard Keynes once said: 'Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist.'"
The point of his article was debunking the idea investors who have the fortitude to withstand volatility in the markets will eventually be rewarded assuming increased volatility pushes asset prices higher.
The problem, which I addressed in Tuesday's post entitled the "The Psychological Impact Of Loss," is the repeated emotional mistakes made by investors which are ultimately driven by the very volatility investors are supposed to withstand.
But more importantly, while the idea of "efficient markets" and "random walk" theories play out well on paper, they don't in actual practice.
What drives stock prices (long-term) is the value of what you pay today for a future share of the company's earnings in the future. Simply put - "it's valuation, stupid ...
While president-elect Donald Trump's post-election stock market gains are among the greatest in US History, he faces an uphill battle tomorrow as he steps to dais for inauguration. In the last 80 years, newly-elected presidents have seen inauguration-day-losses, two-thirds of the time.
Trump had been #winning...
But faces a problem tomorrow in maintaining that exuberance as the following table shows only 33.3% of newly-elected inauguration days were winners, losing on average 0.9%...
(NOTE: the 5.28% plunge on the day of Obama's first inauguration)
And while analogies to Reagan remain common, we wonder just what happens when (or if) Trump cannot live up to the expectations already priced in...
Netflicks is proud to present an exclusive new series, "The Walking BrainDead". In the action packed pilot episode, chaos ensues when hundreds of thousands of braindead walkers descend upon Washington, DC. They have stumbled into Washington to wreak havoc and stop the Inauguration of the incoming President, the former motivational speaker Ronald Crump. The crowd has their telltale blank stares and confusing cardboard signs. They are also monotonously chanting weird incoherent slogans. It's very hard to identify the sexes, as most of the crowd is either gay or gender neutral. But do not let the walker's stupid comments and irrational thoughts fool you. They have been programmed and directed by three very savvy, wealthy, and dangerous criminal masterminds. Their leaders are hedge fund titan George Morose, Chuck And Cheese founder, John Molestah, and computer security entrepreneur, Hillary Clanton. But the sworn enemies of the Braindead, the Delusionals, will be there to protect Ronald Crump. The Delusionals are led by the flamboyant Milo Yfopulous. However, Milo will not be in DC as he just had his nails done. But the Delusionals will be led by their other fiery leader, the rotund Alex James. Violence erupts when the Braindead use their tried and true battle tools - relentlessly cursing, crying, screaming, throwing eggs, sucker punching, rioting, destroying private property, and making completely false accusations. Tune in to see this exciting pilot episode.
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