Mid Term

Special Report: 10 Great Growth Stocks that Are Getting Greater–today my 8th pick BYD

Special Report: 10 Great Growth Stocks that Are Getting Greater–today my 8th pick BYD

GREATER Growth Stock Pick #8: BYD (BYDDF). I know; I know. What’s a Chinese stock doing on this list? It’s here because BYD, not Tesla (TSLA) is the big growth story in electric vehicles and not just for this month–but for years. And because I can see two catalysts that are about to power this stock higher. Morningstar calculates that BYD is 20% undervalued right now. Because this is a China stock we’ll need to take a deep look at valuation later in this post. But first, the growth story.

Don’t give up on your volatility hedges yet–look what’s on the horizon

Don’t give up on your volatility hedges yet–look what’s on the horizon

My bets on rising volatility have been hammered in the last few days. The December 20 Call Options on the CBOE S&P 500 Volatility Index (VIX) at $280 a contact dropped another 21% today to $121 a contract. The January 17 Call Options at 17 that I bought for $268 closed at $211, down another 16%.The VIX itself ended the day at 14.23, down 7% for the session. It’s sure hard looking at losses like this. But I would remind you that the VIX is very volatile. The volatility index was at 21.71 on October 20. And that the calendar is marked with two big events that could reunite financial market volatility, one courtesy of the House of Representatives and the other courtesy of the Federal Reserve.

What a surprise! Consumers are in debt trouble

What a surprise! Consumers are in debt trouble

Credit card debt surged again during the third quarter and so did the number of people missing payments, according to data released today, November 7, by the Federal reserve Bank of New York. Credit card balances rose by $48 billion in the third quarter to a record high of $1.08 trillion The $154 billion year-over-year gain in debt was the largest such increase since of this beginning of this data in 1999.

Saturday Night Quarterback says, For the week ahead expect…

Saturday Night Quarterback says, For the week ahead expect…

To catch you up in case your eyeballs have been focused elsewhere (and there’s certainly a lot of elsewhere to watch right now). First, the Russell 2000 broke below its July high. Then the NASDAQ Composite followed (down 12.2% from the July 31 high at the close on October 26.) Then the NASDAQ 100 joined in (down 10.9% as of the close on October 26.) And finally on Friday, October 27, the Big Daddy, the Standard & Poor’s 500 extended its slide from its July high to 10%. All thee indexes are now in correction. (Defined as a drop of 10% or more from the previous high.) The index and correction that worries me the most? The NASDAQ 100.

At 4.9%, third quarter GDP growth is even hotter than feared

At 4.9%, third quarter GDP growth is even hotter than feared

The U.S. economy grew by an annual rate of 4.9% in the third quarter, the strongest pace since 2021 and twice the pace of growth in th second quarter. Before the report from the Bureau of Economic Analysis, economists surveyed by Bloomberg were expecting annual growth of 43%. Growth at that rapid a pace, they worried then, could lead the Federal Reserve to consider raising interest rates at its November 1 meeting. Obviously now, after growth at 4.9% far exceeded projections of 4.3% growth, those worries are a little more pronounced. But only a little.

The technicals look increasingly awful for stocks

The technicals look increasingly awful for stocks

I know the bond market is getting most of the headlines at the moment. And it should be. By some measures, volatility in the Treasury market, you know, the old safe haven Treasury market, exceeds volatility in equities. And then there’s the drama of watching the assault on 5% yield on the 10-year Treasury. The drama isn’t just theatrics either. Above 5% yield on the 10-year Treasury there’s an increasing likelihood that something in this over-stretched credit market will break. But…you can’t ignore the stock market. The technical picture is increasly scary. Here too something looks like it could break–and not in a good way.

So how high will yields go? I’m hearing 6% or even 7%

So how high will yields go? I’m hearing 6% or even 7%

Today the yield on the 10-year Treasury closed at 4.71%. That was down 2 basis points on the day but in the year the yield is up 96y basis points. Almost a full percentage point. How high can yields go? Bond traders and investors want to know. Investors in other financial assets, stocks, for instance want to know. The Federal Reserve, which is supposed to set interest rates but is increasingly a sideline spectator on rates, wants to know.

The yield on the 10-year Treasury jumped another 13 basis points today, October 3

The yield on the 10-year Treasury jumped another 13 basis points today, October 3

Where did the slow-moving, deep and placid Treasury market go? The yield on the 10-year benchmark Treasury–you know the one used to set the interest rate on things like mortgages–moved up another 13 basis points today, October 3, to 4.80%. That’s a jump to 24 basis points in just two days. The Treasury market just doesn’t move like this. The yield on the 10-year Treasury is now up 63 basis points in the last month.