The US has officially imposed tariffs on $34 billion of imports from China, and China in response has imposed tariffs on $34 billion of US goods exported to China. We want to share some of the relevant facts to put the tariffs in perspective. In 2017, total US imports were $2.9 trillion and total US exports were $2.35 trillion. The $34 billion of tariffs equates to 1.2% of total US imports, and 1.4% of total US exports. We think this is important because both the US and China are imposing… View More
Looking at Walgreens adjusted 2018 third quarter (Q3) earnings per share (EPS) of $1.53 and revenues of $34.33 billion (surpassing analysts’ expectations of $1.47 and revenues and $33.65 billion respectively), we are reminded of the importance for investors to control emotional responses. After beating on earnings, and raising its quarterly common dividend by 10% to $0.44 a share, along with announcing a new $10 billion share repurchase program, which is scheduled to be completed in the ne… View More
Investor Sentiment is less bullish but not yet bearish (7 on a scale of 10, with 10 being the most bullish). Europe has become strikingly out of favor over the last few months and Technology remains the preferred sector though optimism towards FAANG has moderated slightly. A majority of investors are betting on 2 more hikes this year and a year- end 10-year yield around 3%. Trade dominates the list of concerns and long USD is a widely held view. The NASDAQ and Growth indices outperformanc… View More
At the beginning of every new year we look toward the future in anticipation of what it will bring, and for years we've shared Bob Doll's Top 10 Predictions because he tends to get over 70% of them correct every year. As we begin the second half of the year, we wanted to share an update on how this year's predictions are working out. Below is his mid-year scorecard. The BLUE predictions are correct so far, and the RED predictions are too early to call yet. So far, 2018 has been a … View More
Trade headlines are likely to continue dominating markets; that is, until the second quarter corporate earnings season begins in July. The trade tensions between the U.S. and China continued. Thus far, the Trump administration has threatened to impose tariffs on roughly $450 billion of Chinese goods, nearly equivalent to the total value of Chinese imports last year. China promised a strong response including retaliatory tariffs as well as increased regulatory scrutiny on U.S. companies o… View More