Monday, March 4, 2019

TheStreet: Here's Why Oil Prices Are Going Higher

By SIMON CONSTABLE

A largely unanticipated cut in oil supplies will send prices for crude oil surging this year. And that will also help oil stocks break out of their extended period of underperformance. 
  
Investors with an appetite for risk should consider buying the United States Brent Oil exchange-traded fund, which tracks the price of Brent crude oil. Or try investing in the Energy Select Sector SPDR ETF which tracks stocks of major oil producers. Read more here.

WSJ: What Is Implied Earnings Growth?

By SIMON CONSTABLE

Investors may start hearing more about “implied earnings growth.” It is a metric that can help people make investment decisions, and it is especially relevant during times of market tumult when stocks frequently get mispriced.

Whenever analysts value securities, they make assumptions about the growth of the company. Faster-growing firms generally warrant higher valuations than those likely to see only modest profit increases, other things being equal. Read more here.

WSJ: Commodities Outlook Remains Rocky

By SIMON CONSTABLE

Commodities-focused funds took a beating in the last three months of 2018 as worries over a slowing economy sent prices for energy and materials plunging.

While there has been a modest rebound early this year, analysts aren’t optimistic for a return to boom times soon. Read more here.

Grain Silos
GraindryerCC BY-SA 4.0, via Wikimedia Commons


WSJ: British Stock Investors Go ‘on Strike’ Ahead of Brexit

By SIMON CONSTABLE

Individual investors in the U.K. soured on fund investments in a big way in 2018, and analysts say nervousness over Brexit was mostly to blame.

The amount of money flowing into retail investment funds in the U.K. plummeted more than 85% last year to £7.2 billion (about $9.2 billion) from £48.5 billion the year before, according to recently published data from the Investment Association, a London-based fund-management trade body. Last year’s total was well below the £22.3 billion average over the past decade, the data show. Read more here.


TeroVesalainen, CC0, via Wikimedia Commons

WSJ: In a Down Market, ETFs Could Make Things Even Worse

By SIMON CONSTABLE

There’s a potential problem lurking in the financial markets, and it is partly a result of exchange-traded funds.
While ETFs have been widely praised for lowering trading costs, and have soared in popularity with investors, there have been concerns dating back at least to 2011 that the profusion of ETFs based on the same or similar stocks makes markets more vulnerable in times of volatility. Read more here.
Photo by Robb Miller on Unsplash