Charles Biderman, chief executive officer of TrimTabs Investment Research Inc., says “companies have been reducing the amount of money they are spending on dividends compared to buybacks.” Biderman talks with Bloomberg’s Tom Keene on Bloomberg Radio’s “Bloomberg Surveillance.” (Source: Bloomberg)
Fear and greed rule markets. Always have. Always will. Since the start of this year, when the Fed was creating $4 billion of new money daily, $85 billion monthly and $1 trillion annually, and saying it would be keep doing that forever, investors got very greedy. Investors kept buying stocks, bonds, emerging markets, gold, all that stuff. On May 22 almost all markets were at multi-year if not all time highs. Read More
Stock and bond prices both here and abroad have been going up and down like a yoyo lately. Some of you must be wondering what the heck is going on here? Well, here is my opinion. Investors globally have become addicted to newly created free money ever since 2009. Therefore, when Federal Reserve Chairman Bernanke intimated on May 22 that the free money will “Taper”, the markets have been acting similar to how heroin addicts would respond if they knew their drug would not be available anymore. Read More
The S&P 500 Index rose 2.10% in May, its seventh consecutive monthly gain. While “sell in May and go away” has not worked well so far this year, what should investors expect for June? We do not try to do short-term market timing at TrimTabs, but historical data helps put the situation into perspective. Since 1950, the S&P 500 Index has risen in seven consecutive months 14 times, or roughly once every 4.5 years. Eight-month rallies occurred eight times (the last ended in January 2007). On the other hand, declines in consecutive months are far rarer. Since 1950, the S&P 500 Index fell for seven straight months only once. Read More
Sausalito, CA — June 5, 2013 — TrimTabs Investment Research estimates that the U.S. economy added 135,000 jobs in May, up from 67,000 jobs in April.
“Employment growth is stuck in low gear,” said David Santschi, Chief Executive Officer of TrimTabs. “The economy has added an average of 121,000 jobs per month this year, which by itself is not enough to reduce unemployment.” Read More
Let me be blunt. I do not see any way that the US economy can rebound back to its average yearly income growth of 5 percent after inflation from 1982 through to 2007. Remember coincident with that rapid growth in incomes, the value of all US stocks soared from $1 trillion at the end of 1982 to $22 trillion in 2007. A 22-bagger. However, since the economy bottomed in 2009, nominal growth in wages and salaries has averaged about 3 percent per year, and that’s before, not after inflation. Yet, despite the current slow growth environment stock prices again are at record highs. Read More
Charles Biderman, chief executive officer of TrimTabs Investment Research Inc., discusses investing in exchange traded funds. Biderman talks with Bloomberg’s Pimm Fox and Carol Massar on Bloomberg Radio’s “Taking Stock.”