Wall Street, the alleged culprit of the financial meltdown that started eight years ago, has become the whipping boy for the 2016 presidential race. Does the intense animosity of Bernie Sanders, Hillary Clinton and Donald Trump explain the dive in the share prices of investment banks, private-equity firms and managers of hedge funds?
See Also: How the Presidential Election Will Affect the Stock Market
Its hard to escape the correlation. On May 26, 2015, Sanders, the socialist senator from Vermont, announced that he would seek the Democratic presidential nomination. Three weeks later, Trump, the wealthy New York businessman, announced his quest for the Republican nod. A week after that, shares of Goldman Sachs Group (GS, $155), the very symbol of Wall Street power and wealth, peaked at $219 a share. Within eight months, Goldman shares had fallen by nearly one-third. Morgan Stanley (MS) dropped even more. (All prices and returns are as of March 1; investments in boldface are those I recommend.)
Top Financial Stocks To Own Right Now: Nuveen Municipal Value Fund Inc.(NUV)
Nuveen Municipal Value Fund, Inc. is a closed-ended fixed income mutual fund launched by Nuveen Investments, Inc. The fund is managed by Nuveen Asset Management. It invests in the fixed income markets of the United States. The fund also invests some portion of its portfolio in derivative instruments. It invests in undervalued municipal securities and other related investments the income, exempt from regular federal income taxes that are rated Baa or BBB or better. It employs fundamental analysis with bottom-up stock picking approach to create its portfolio. The fund benchmarks the performance of its portfolio against the Standard & Poor?s (S&P) National Municipal Bond Index. Nuveen Municipal Value Fund, Inc. was formed on April 8, 1987 and is domiciled in the United States.
- [By Donald van Deventer]
The latest implied forward rate forecast from Kamakura Corporation shows projected 10-year U.S. Treasury yields differing -0.07% to 0.03% from last week while fixed rate mortgage yields varied by -0.01% to 0.08%. Mortgage yields, determined by the Monday through Wednesday weekly survey of the Federal Home Loan Mortgage Corporation, lag Treasury movements simply because of the 3-day yield calculation used in the Primary Mortgage Market Survey. The 10-year U.S. Treasury yield is projected to rise from 2.92% at Thursday’s close (down 0.06% from last week) to 3.374% (down 0.06% from last week) in one year. The 10-year U.S. Treasury yield in ten years is forecast to reach 4.639%, 1 basis point lower than last week. The 15-year fixed rate mortgage rate is forecast to rise from the effective yield of 3.69% on Thursday (down 0.001% from last week) to 4.222% (down 0.006% from last week) in one year and 6.29% in 10 years, up 0.038% from last week. We explain the background for these calculations in the rest of this note, along with some mortgage servicing rights metrics. The forecast allows investors in exchange traded U.S. Treasury funds (TLT) (TBT), total return bond funds (BOND), municipal bonds (NUV) and exchange traded mortgage funds (REM) to assess likely total returns over the next 120 months. Treasury-related exchange traded funds affected by the forward rates include:
Top Financial Stocks To Own Right Now: Baidu Inc.(BIDU)
Baidu, Inc. provides Chinese and Japanese language Internet search services. Its search services enable users to find relevant information online, including Web pages, news, images, multimedia files, and blogs through the links provided on its Websites. The company also offers online community-based products and entertainment platforms; an instant messaging service; and a consumer-oriented e-commerce platform. In addition, it designs and delivers online marketing services and auction-based P4P services that enable its customers to reach users who search for information related to their products or services. The company serves online marketing customers consisting of small and medium sized enterprises, large domestic corporations, and Chinese divisions or subsidiaries of multinational corporations primarily operating in the medical, machinery, education, franchising, electronic products, e-commerce, ticketing, tourism, information technology, consumer products, real estate, entertainment, and financial services industries. It sells its online marketing services directly, as well as through its distribution network. The company was formerly known as Baidu.com, Inc. and changed its name to Baidu, Inc. in December 2008. Baidu, Inc. was founded in 2000 and is headquartered in Beijing, the People?s Republic of China.
- [By Javier Hasse]
The top gainers in the index were:
Baidu Inc (ADR) (NASDAQ: BIDU), up 8.16 percent Whole Foods Market, Inc. (NASDAQ: WFM), up 5.95 percent
The top losers in the index were:
- [By Charles Carlson, CEO and Portfolio Manager, Horizon Investment Services]
One of my favorites is Baidu (BIDU), the Chinese search-engine company. You may recall I selected Baidu as one of my favorite turnaround stocks at the beginning of 2013.
T.Clarke plc, a building services contractor, provides electrical and mechanical installation services and supplies associated equipment. The company offers information communications technology (ICT) services in the areas of structured cabling and connectivity, network infrastructure and security, networked energy management, data centre infrastructure, and managed and support services; facilities management services, such as preventative, reactive, and planned maintenance solutions; and green technologies services, which comprise photovoltaics, rainwater harvesting, biomass boilers, ground source heating, air source heating, wind turbines, lighting, and carbon reduction audit services. It also provides massive reading station redevelopment, cross rail, border rail link, and underground power upgrade services for the rail sector; lifecycle building services combining mechanical and electrical works with ICT for utilities and technologies sectors; lifecycle services for ho tel and residential sectors, which include electrical, ICT, and mechanical systems design, installation, commissioning, and maintenance; and mechanical and electrical contracting services for education, healthcare, government/local authority, retail and leisure, stadiums, transport, towers, media, and residential sectors. In addition, the company manufactures and prefabricates elements of an installation, as well as engineering components. T.Clarke plc was founded in 1889 and is headquartered in London, the United Kingdom.
- [By Jon C. Ogg]
24/7 Wall St. believes that AT&T Inc. (NYSE: T), General Electric Co. (NYSE: GE), Goldman Sachs Group Inc. (NYSE: GS), J.P. Morgan Chase & Co. (NYSE: JPM), Nike Inc. (NYSE: NKE) and Walt Disney Co. (NYSE: DIS) will all make dividend hike announcements before the end of 2013.