Brexit Yes, You Better Be-Leave It

Posted on by The INO.com Team

Hello MarketClub members everywhere. There's no doubt about it, yesterday's break in the world markets was caused by a little country in the North Atlantic named Great Britain and whether or not it's going to stay in the EU.

MarketClub's Mid-day Market Report

Having been born and raised in England, I cannot imagine in my wildest dreams why Great Britain would want to give up its sovereignty, its currency and cede control to Brussels. The EU is a bloated, incompetent bureaucracy that has a life of its own and answers to no one. To put this in perspective, the EU makes our government here in the U.S. look like it is super, super efficient. Continue reading "Brexit Yes, You Better Be-Leave It" →

Disney Continues To Deliver Robust Growth

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


I recently wrote two articles highlighting Disney as an inexpensive growth opportunity for long-term investors. In my opinion, Disney presents a compelling case for long-term investors. My positive sentiment is rooted in many lucrative franchises such as Star Wars, Pixar, Marvel, ESPN and the legacy Disney brand turning out original content such as Frozen and more recently Zootopia. Disney offers a deep and well-diversified product portfolio that is set to provide growth, income and safety well into the future. This portfolio gives rise to a basket of entertainment income streams via movies, licensing deals, theme parks, TV programing, resorts and distribution rights. Disney stock has been under pressure as of late due to increasingly worrisome revenue declines from its ESPN franchise. I feel this decline in the stock is unwarranted, and analysts underestimate the ability of Disney to evolve to the consumer and monetize ESPN via other means. My views were recently echoed by analysts at Pivotal Research which upgraded the stock from a hold to a buy and raised its target price from $104 to $122. JPMorgan Chase also reiterated its buy rating and assigned a $118 target price. Disney has witnessed fantastic growth over the last decade and considering future catalysts in the pipeline; Disney appears undervalued. Disney currently sits at a P/E of ~18 along with a PEG of ~1.5 and has seen its stock fall from $122 to a current price of ~$98 or alternatively a 20% decline. Taking a look at its P/E ratio (currently 18 – in-line with the broader market average) indicates that it’s an average stock and I believe Disney is much more than the average stock. This presents a great buying opportunity in an inexpensive, high-quality growth stock. Continue reading "Disney Continues To Deliver Robust Growth" →

Stocks Fluctuate On LinkedIn News While The Fed Looms

Posted on by The INO.com Team

Hello MarketClub Members everywhere. LinkedIn Corp. (NYSE:LNKD) shares have soared as high as 49% this morning after Microsoft Corp. (NASDAQ:MSFT) announced that it's buying the company in a deal valued at $26.2 billion. This has caused Microsoft shares to slip a little over 2% as investors digest the news.

MarketClub's Mid-day Market Report

All eyes will be on the U.S. Federal Reserve meetings that start Tuesday as they discuss fiscal policy and the trajectory of the U.S. economy in the wake of a weak employment report for the month of May. Many investors will be watching closely on Wednesday for Fed Chair Janet Yellen's statement, as she has dropped numerous hints that the central bank would introduce another interest rate hike this summer. Still, the central bank is unlikely to raise interest rates further this week due to the disappointing jobs data and unimpressive first-quarter economic growth.

Key levels to watch this week: Continue reading "Stocks Fluctuate On LinkedIn News While The Fed Looms" →

Are We Ready For Negative Interest Rates?

Posted on by George Yacik

George Yacik - INO.com Contributor - Fed & Interest Rates


With interest rates on 10-year Japanese government bonds already deep into negative territory and comparable German bunds just a basis point or two away, most of the world’s safest debt instruments are trading below zero. With the notable exception of U.S. Treasuries.

While we’re still a long way from reaching that point – the benchmark 10-year Treasury note ended last week at 1.64%, its lowest level in nearly a year-and-a-half and down more than 60 basis points so far this year – it’s certainly not too early to start thinking about it. After all, if it can happen in Germany and Japan and several other countries, why not here?

Switzerland’s 10-year government bond closed last week at negative 0.50%, while the comparable Japanese bond ended at minus 0.15%.
Germany’s 10-year bund, the benchmark for the euro zone, closed at just two basis points above zero. The average yield on all German government debt outstanding is now below zero.

In real life, this means that if you buy a Swiss or Japanese bond today and hold it to maturity, you’re guaranteed to lose money. Such a deal.

What’s driving this madness? Continue reading "Are We Ready For Negative Interest Rates?" →

Weekly Futures Recap With Mike Seery

Posted on by The INO.com Team

We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.

Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.

Silver Futures

Silver futures in the September contract settled last Friday in New York at 16.41 an ounce while currently trading at 17.35 up about 95 cents for the trading week. I’m now recommending a bullish position while placing the stop loss under the 10 day low which stands at 15.89 risking around $1.50 or $1,500 per mini contract plus slippage and commission as the chart structure will start to improve early next week. Silver prices are trading above their 20 and 100-day moving average telling you that the short-term trend is higher as interest rates around the world are hitting historic lows sending shockwaves into many markets especially the bond sector as traders are now interested in the precious metals once again as gold prices have surged as well. Negative interest rates around the world are starting to make investors skittish as they are looking for a place to hide money and that at the current time is the precious metals. I do think gold and silver prices Continue reading "Weekly Futures Recap With Mike Seery" →