The Yummies are Causing the All-Time Stock Market Highs

Many have wondered why the stock market continues to make all-time highs, almost every day. This exceptional rise may be due to the Yummies, the Young Upwardly Mobile Millennials. Yes, the Millennials, also known as Generation Y. Many traits have been ascribed to this generation, but you don’t ever hear the members referred to as being invetor-oriented.

So let’s look at the facts. Legg Mason Global Asset Management, the 20th largest asset manager in the world, produced the 2017 Global Investment Survey, and the Summary of U.S. Results are very enlightening.

For example, did you know that Millennials invest more in non-cash investments than the Generation X or the Baby Boomers? As a matter of fact, 77% of Yummies apply their funds toward these assets, versus 75% for Gen x and 69% for Baby Boomers.

Let’s look at some definitions before continuing. Legg mason consideres Millennials to be between the ages of 18 and 35, Gen X at age 36 to 52, with Baby Boomers ranging from 53 to 71 years old.

Some other interesting factoids about the Yummies. They invest three times as much as Boomers in non-traditional investments. Plus, a far greater percentage of Yummies put their money into investment real estate than the Baby Boomers.

But what is most amazing is the fact that 11% of the Yummies invest in gold and precious metals versus only 7% of the Gen Xers and a measly 2% for the Baby Boomers.

When the respondents were asked which investment categories they believe offer the best opportunities over the next 12 months, 46% of the Yummies said domestic stocks, with Gen X and Boomers closely agreeing, both at 42%. International stocks came in second as an investment opportunity in the opinion of the Millennials.

Finally, 87% of Yummies have saivings, investments, or both but only 81% of Boomers have these assets, and just 75% of Millennials.

Many wonder why the FAANG stocks, Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), and Google (GOOG), continue to rise. So now you know. If you are wondering who is driving up the price of stocks and cryptocurrency, you need look no further than the Yummies.

by Fred Fuld III

Disclosure: Author owns AAPL and AMZN.

The Companies that will Benefit the Most from the New Tax Law

The new tax law has passed and is waiting for the signature of the president. This change will provide a huge economic benefit for many corporations, especially for those that keep money overseas, due to the repatriation tax holiday.

Although there will be benefits to having plants and facilities in other countries, it is expected that most companies will prefer to have most of their operations in the United States. Many U.S. citizens are now starting to benefit from the corporate tax cut such as the AT&T (T) $1,000 bonus for all employees.

From an investor standpoint, the fundamentals for certain companies should improve dramatically which should help the stock price. Here are some of the corporations with the biggest cash holdings overseas.

Apple (AAPL)  ~ $215 billion to $252 billion depending on what source you use and what day of the month it is

Microsoft (MSFT) ~ $128 billion

Cisco (CSCO) ~ $68 billion

Oracle (ORCL) ~ $48 billion to $54 billion

Alphabet / Google (GOOG) ~ $32 billion

Johnson & Johnson (JNJ) ~ $41 billion

Amgen (AMGN) ~ $36 billion

Watch the performance of these stocks during the new year. Speaking of new year, Happy New Year!!!

Warren Buffett has Been Buying Apple

Warren Buffett’s Berkshire Hathaway (BRK-A) (BRK-B) just filed its latest shareholdings with the SEC a few days ago, and shows some interesting data. Buffett has added to three new positions and reduced holdings in some stocks.

Most importantly, his shareholdings in Apple (AAPL) increased by almost four million shares during the third quarter of this year. Could that be the cause of the significant boost in the stock price or just a great call on the part of Buffett? Or both? After all, he made a great call on General Electric (GE) by dumping the stock earlier in the year.

Warren Buffett has also been adding to his positions in Monsanto (MON) and Synchrony Financial (SYF).

Reductions were made in the shareholdings of a few stocks. Berkshire sold over $17 million shares of IBM (IBM). Plus, he sold some Charter Communications (CHTR) stock and shares in Wells Fargo (WFC).

Warren Buffett has an outstanding track record, so reviewing his buys and sells may be helpful to you and your portfolio.

Wireless Charging: The Stocks in this Latest Hot Industry

Imagine that you have just landed from a flight and your cell phone is dead due to a used up battery charge. You walk through the airport and as you are strolling along, your phone is picking up radio frequencies that is charging your phone’s battery.

Or say you are walking down the street, the battery is dead in your cell phone, so you head into a coffee shop. A tiny chip in your phone picks up radio frequencies and converts them into energy to charge up your phone.

Think this is science fiction? Companies are already working on this technology now.

As an example, Energous Corp (WATT), a San Jose, California based company founded in 2012, has been working on just such a system. The company is developing WattUp, which allows for the wire-free distance charging of devices, including laptops, cellphones, and smart watches.

The stock took a dump today, dropping 5% to 14.74 per share, probably due to the fact that it was just announced yesterday that the Senior Vice President of Product Marketing sold 1615 shares on June 14. However, if you look closer, you would find that, first, this was an automatic sale, and second, he still has over 100,000 shares of the stock. So the sale represented only a small part of his position.

According to a report in the Weekly Register, 27 institutions have increased positions in the stock, with 21 new positions. The stock has a market cap of $303 million.

Investors should be aware that the company is generating significant negative earnings, and should therefore be considered very speculative.

Other wireless electricity stocks can be found by looking at the publicly traded members of the Wireless Power Consortium, of which over 200 businesses have joined. They utilize Qi wireless charging as an open standard.

Of course, you will find many of the large corporations, such as Apple (AAPL), AVID (AVID), Texas Instruments (TXN), and Verizon Wireless (VZ), are members.

Leggett & Platt (LEG), which is a producer of engineered products, has a division for developing wireless power transmitters for integration.

ON Semiconductor (ON) is also working on wireless power technology. This semiconductor company is based in Phoenix, Arizona.

Semtech Corporation (SMTC) a Camarillo, California which makes and sells analog and mixed-signal semiconductor products, is also developing wireless power technology products.

Altogether, there are about 20 publicly traded stocks that are part of the Consortium. Maybe one of these companies can charge up your portfolio.

Disclosure: Author owns WATT. 

Please note: some of these stocks are very low cap and should be considered very speculative.

Trivia: The iPhone Name was Originally Owned by Cisco, Not Apple

Here is a bit of financial trivia for you.  Linksys, a division of Cisco Systems Inc. (CSCO), released its iPhone on Monday, December 18, 2006, which was a phone that connects to a home wireless network for making phone calls through the Internet using the Skype service. Skype was originally owned by eBay Inc. (EBAY)at the time and is now owned by Microsoft (MSFT).

It had been anticipated that Apple Computer Corp. (AAPL) would be using the iPhone name back then, but it had been registered by Cisco in 2000. The iPhone trademark is now owned by Apple.

More info about the “first” iPhone release can be found here, an article from bizjournals back in 2006.

What Warren Buffett has been Buying

Warren Buffett, the Chairman & CEO of Berkshire Hathaway (BRKA), is probably the most well known investor in the world. Many investors like to piggyback off of his investments, in order to match his great returns.

Well, it’s that time of year when Berkshire Hathaway reports its holdings on Form 13F to the Securities & Exchange Commission. The company filed its form today, dated February 14, 2017.

The most interesting part of the filing are the stocks that Buffett has added to the Berkshire portfolio.

First, one of his new positions is Southwest Airlines (LUV), acquiring 43,195,053 shares.

Buffett also added to his positions in other airlines, such as Delta Air Lines (DAL), increasing the position almost ten fold  from 6,333,923 to 60,025,995.

Another airline he likes is United Continental (UAL) where holdings have gone up by 24,418,340 shares, from 4,533,013 to 28,951,353.

In the tech area, Buffett likes Apple (AAPL). The Berkshire holdings went up from 15,227,702 shares to 57,359,652 shares.

Holdings also rose in American Express (AXP) and Bank of New York (BK).

You have to admit that Warren Buffett has an outstanding track record. Following in his footsteps may be a strategy worth considering.

Disclosure: Author owns AAPL.

 

Top Untaxed Foreign Earnings Stocks

The United States has one of the highest tax rates in the world for corporations. In the past, the U.S. Government might have thought that this was a great source of income for the government, yet the risk of unintended consequences has taken place.

Companies that have earnings in other countries have decided to leave those earnings there in order to avoid the U.S. taxation, creating what is called untaxed foreign earnings. If the money is brought back to the United States, it becomes taxable at 35%. Over one third of the income is a pretty big chunk of money to be removed from the corporate coffers.

So what are the unintended consequences? Companies that are forced to leave their profits overseas due to the oppressive taxation, can’t use that money to hire more Americans, can’t use it to improve machinery and plants, and can’t use it to pay out higher dividends which could benefit income investors and pension plans. It also can’t be used to buy out smaller companies. Basically, it prevents money from flooding the US economy.

The current administration has proposed a 10% tax on repatriated funds, which would be a huge benefit to many corporations, primarily in the areas of technology and health care.

So there may be a play in some of the stocks that are holding huge amounts of money in other countries. For example, Apple (AAPL) holds more money outside the U.S. than any other publicly traded company, somewhere around $200 billion (give or take $25 billion; when you’re talking about that much money, who’s counting).

Other companies with a lot of funds held overseas include:

Alphabet [Google] (GOOG)

Cisco (CSCO)

General Electric (GE)

IBM (IBM)

Intel (INTC)

Microsoft (MSFT)

Oracle (ORCL)

Pfizer (PFE)

It may be a while before the untaxed foreign earnings tax break takes place, but when it does, the benefits to the companies should be swift.

Disclosure: Author owns AAPL and MSFT

Corporate Stock Earnings Reports For Week 1 of February

Looking for some interesting moves in some stocks this upcoming week? Check out the companies that will be reporting earnings.

If earnings exceed analysts’ expectations, the stocks can shoot up. If the numbers underperform, the stock can tank. Then again, occasionally, stocks don’t move the way you would have expected.

Anyway, many traders use earnings plays for trading strategies. Also, option traders look for high implied volatility of stocks for for option selling strategies.

Here are many of the enormous number of stocks reporting earnings this week:

Monday

 

CR

GGG

PFG

 

Tuesday

 

AET

AAPL

HOG

NDAQ

PFE

UA

UPS

X

 

Wednesday

 

ALL

MO

FB

MET

OI

SFLY

 

Thursday

 

AMZN

AMGN

BDX

BSX

CMG

CI

CME

DV

EL

FEYE

GPRO

IP

MRK

PM

SIRI

V

 

Friday

 

CLX

CSY

HMC

WY


If you like interesting stock lists like this, be sure to check out many of the free stock lists here at WallStreetNewsNetwork.com.


“Jim Cramer Causes Market to Break 20,000”

Can you believe this headline? “Jim Cramer Causes Market to Break 20,000”

This was a headline that I had printed up on a fake newspaper about ten years ago. I had two of these newspapers printed up, one I send to Jim Cramer and one I kept for myself.

Jim Cramer actually held this newspaper on his show displaying the big headline, back on Tuesday, November 21, 2006, shortly before Thanksgiving.

Back then of course, the 20,000 level on the Dow Jones Industrial Average was a fantasy. Who would have thought back then that 20,000 would be reached, especially after the market crash?

This newspaper was printed as the Los Angeles Herald Examiner, a newspaper that no longer exists. It also features a picture of the floor of the New York Stock Exchange, with a fictitious article underneath.

In the article, a few stocks were mentioned with outrageous prices, but one that was very prescient was the statement “Apple Computer (AAPL) which ended the day at $853”. Remember back then, this was prior to the 7 for 1 stock split in 2014, so dividing that 853 by seven, would give you a current price of about 121, which is where the stock is trading now.

If you want to check out the details of the Dow Jones Industrial Average Index and how to “game it” or run what-if’s, check out the article called Stock Trading Hack: How to Game the Dow Jones Industrial Average.

Corporate Stock Earnings Report for Week 4 of October

Looking for some interesting moves in some stocks this upcoming week? Check out the companies that will be reporting earnings this week.

If earnings exceed analysts’ expectations, the stocks can shoot up. If the numbers underperform, the stock can tank. Then again, occasionally, stocks don’t move the way you would have expected.

Anyway, many traders use earnings plays for trading strategies. Also, option traders look for high implied volatility of stocks for for option selling strategies.

Here are many of the enormous number of stocks reporting earnings this week:

Monday

  • AVB
  • RMBS
  • SONC
  • V
  • ZION
 
Tuesday
 
  • AAPL
  • AMTD
  • BHI
  • CAT
  • CMG
  • COF
  • GLW
  • GM
  • JBLU
  • LLY
  • MMM
  • MRK
  • P
  • PNRA
  • S
  • T
  • UA
  • USG
  • UTX
  • VRX
  • WHR
  • WFT

 

Wednesday
  • AEM
  • AVY
  • ABX
  • KO
  • CMCSA
  • EFX
  • BEN
  • GD
  • GSK
  • HES
  • HLT
  • MDLZ
  • SIX
  • TSLA
  • WM
Thursday
 
  • ABB
  • AET
  • GOOG
  • GOOGL
  • MO
  • AMZN
  • AMGN
  • BIDU
  • BMY
  • CAB
  • CELG
  • CL
  • COP
  • F
  • FMS
  • IP
  • POT
  • RTN
  • TWTR
  • UPS
  • VALE
  • WWE
 
Friday
 
  • ABBV
  • BUD
  • AON
  • CBOE
  • CVX
  • XOM
  • HSY
  • PSX
  • WY
  • XRX

If you like interesting stock lists like this, be sure to check out many of the free stock lists here at WallStreetNewsNetwork.com.