May 19, 2022 | Daily JAM, Jubak Picks, USB |
Back on April 11 when I sold Wells Fargo (WFC) and the Invesco KBW Bank ETF (KBWB) out of portfolios to reduce my exposure to a slowing economy caused by the Federal Reserve interest rate increases, I kept my position in U.S. Bancorp (USB) because I wanted to collect the dividend due to be paid out on April 15 (and because I thought super-regional U.S. Bancorp, as one of the best managed banks in the country, was less exposed to the downward trend in the sector.) Well, as of May 19, I’ve certainly collected my quarterly dividend (the stock current yields 3.75%) and the downward trend in financial stocks has picked up speed with the Fed announcing (well, as close to “announcing” as the Fed ever does) interest rate increases for the June, July and September meetings of the central bank, so I’ll be selling U.S. Bancorp out of my Jubak Picks Portfolio tomorrow May 20.
May 17, 2022 | ALB, Daily JAM, DAL, DE, DIS, FQVLF, Long Term, MRVL, NVDA, PFE, SCCO, USB, Volatility |
In my weekend Saturday Night Quarterback I said that this week would, probably, answer the question of whether Friday’s big bounce was just a bounce, the start of a buy on the dip rally, or even a bear market rally with a bit of staying power. Two days into the week I think the market action is moving in favor of a bear market rally, one of those often quite powerful upside moves that punctuate extended bear markets.
April 11, 2022 | C, Daily JAM, Dividend Income, JPM, Jubak Picks, KBWB, Perfect Five-ETFs, USB, WFC |
Just want to make sure that no one missed the sell recommendations in yesterday’s Saturday Night Quarterback post. Big banks will kick off another earnings season beginning with JPMorgan Chase (JPM) on Wednesday, April 13. Citigroup (C) and Wells Fargo (WFC) follow on April 14. Bank of America (BAC) reports on April 18. Bank earnings forecasts present a complicated picture for the quarter–which is only appropriate since that’s true of Standard & Poor’s 500 earnings forecasts as a whole.
April 9, 2022 | C, Daily JAM, Dividend Income, Jubak Picks, KBWB, Perfect Five-ETFs, Short Term, USB, WFC, You Might Have Missed |
Big banks will kick off another earnings season beginning with JPMorgan Chase (JPM) on Wednesday, April 13. Citigroup (C) and Wells Fargo (WFC) follow on April 14. Bank of America (BAC) reports on April 18. Bank earnings forecasts present a complicated picture for the quarter–which is only appropriate since that’s true of Standard & Poor’s 500 earnings forecasts as a whole.
June 29, 2021 | C, Daily JAM, KBWB, Morning Briefing, USB |
That didn’t take long. On Thursday the Federal Reserve reported that all 23 big banks tested in its annual stress test, passed. Which means that the last remaining restrictions on dividend increases and share buybacks are now history. Yesterday big banks started to announce dividend increases
May 12, 2021 | Daily JAM, Videos |
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. The twenty-third YouTube video “Five Stocks for an Inflation Scare” went up today.
March 25, 2021 | C, Daily JAM, Dividend Income, KBWB, Perfect Five-ETFs, USB |
U.S. banks that pass their next stress tests will be allowed to raise their dividends after June 30, the Federal Reserve said today, March 25. The Fed will also lift any remaining restrictions on stock buybacks.
March 18, 2021 | Daily JAM, Jubak Picks |
I’d like to add more exposure to the bank sector. But what? At this stage in the bank stock rally, I’m looking for well-run banks that will be able to take advantage of the increase in the yield spread to add to earnings. (As opposed to earlier in the cycle, when I added Citigroup because things were getting a lot better even for not-so-well run banks.) Bank of America (BAC) is one possibility. But the stock is up 25.80% for 2021 as of March 18 and up 32.26% in the last month. I think, instead, that I’ll go with U.S. Bancorp (USB), the country’s largest regional bank. U.S. Bancorp is up 16.96% for 2021 to date and up “only” 21.27% in the last month. It also comes with a 3.8% dividend (well above the 1.90% paid by Bank of America) that will give investors some downside protection. I’m adding that stock to my Jubak Picks Portfolio on Friday.
March 18, 2021 | Daily JAM, Morning Briefing |
After not moving very much yesterday on the actual news from the Federal Reserve-the Standard & Poor’s 500 finished up 0.29% and the NASDSQ Composite closed higher by 0.40%, today, March 18, markets decided they really didn’t like the Fed’s stance on inflation, interest rates, and bond yields.
A day after Fed chair Jerome Powell said the Fed wasn’t much concerned about either the projects for higher inflation or the rise in Treasury yields, the yield on the 10-year Treasury spiked to 1.71% at the close. (It was at 1.74% as 1 p.m. in New York.) The closing yield amounted to a jump of 7 basis points in the yield on the benchmark Treasury issue. The yield on the 10-year Treasury is now up an astonishing 42 basis points in a month. And as has been the case in 2021 and as you might expect, stocks sold off with high multiple, high momentum technology shares taking the worst beating.
January 2, 2018 | Daily JAM, Notes You Need |
In my daily trawling through the market I come upon lots of tidbits of knowledge that I think are important to investors but that don’t justify a full post. I’ve decided to start compiling these notes here each day in a kind of running mini blog that I’m calling Notes You Need. A typical item resembles this from today: “10:40 a.m.: Ahead of earnings Barclays raised its target on U.S. Bancorp (USB) to $65 from $60. Stock was trading at $53.38 at the open. Before Christmas, December 17, to be precise UBS downgraded the bank stock to neutral from buy (while raising its target price to $60 from $58.) The downgrade reflects a shift to favor banks with a higher exposure to tax cuts in the recently passed tax bill.”
July 13, 2016 | Daily JAM, Morning Briefing, Short Term |
Not terribly surprising that U.S. stocks are meandering in slightly negative territory today after busting out to new all-time highs. We’re about to head into the meat of earnings season and a little profit taking undoubtedly makes sense to many of those who caught the recent run. Tomorrow JPMorgan Chase (JPM) kicks off a run of earnings reports from big banks. IBM leads off technology earnings on July 18
April 14, 2014 | Uncategorized |
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