Money Morning Capital Wave Strategist Shah Gilani – sometimes called “the reluctant bull” – joined FOX Business’ “Varney & Co.” today (Friday) to discuss why the U.S. is the “place to be.”
If home ownership is the American Dream… then why do we need government to subsidize it?
We’ve been studying the resource markets – and gold in particular – for over 30 years. And have seen almost every cycle the yellow metal has gone through.
One thing is certain in our opinion: International investors, central banks and corporations are all looking to buy gold… And these slow summer months are likely providing the best price.
A stock market sell off can be the best time to hunt for stocks to buy. Stocks can slide 10% to 20% before it’s all said and done.
Facebook (Nasdaq: FB) stock is up more than 30% today as investors applaud the second-quarter earnings report released yesterday (Wednesday).
Investors were thrilled to see FB earnings improve from previous disastrous quarters, and their exuberance pushed Facebook stock above $30 a share for the first time since January.
But, before you think FB stock is now the hottest investment of 2013, take a closer look at what’s going on.
First off, some of the gains are very likely thanks to a short squeeze. Heading into the release, some 39,754,124 FB shares were sold short, making it currently one of Nasdaq’s most heavily shorted stocks.
Volume suggested a race to cover shorts was in play.
And despite the solid gains, Facebook stock still isn’t trading over its May 2012 IPO price of $38, a level not seen since the famously flawed debut.
“Bottom line to me is Facebook may prove to be a great short-term trading opportunity, but I remain absolutely convinced it has no place in a long-term investor’s portfolio,” Money Morning Chief Investment Strategist Keith Fitz-Gerald said. “Where’s Eastern Airlines today? Where’s Palm Inc.? Research in Motion (Nasdaq: BBRY)? AOL Inc. (NYSE: AOL)? Myspace?”
While some investors get lured into this Facebook exuberance, here’s why Fitz-Gerald warns against it.
Sure, Facebook Earnings Weren’t Bad…
FB stock opinion aside, there’s no question this was the best Facebook earnings report since the company went public.
The social media giant posted earnings of $0.19 a share, a nickel better than forecasts, and up from $0.12 a year earlier. Revenue climbed to $1.81 billion, also beating projections of $1.62 billion, and up 53% from $1.18 billion a year ago.
The big question on everyone’s minds was how the Menlo Park, CA-based company tackled mobile. Facebook was late to the mobile arena and has been playing catch-up since. It finally appears as though it’s making headway.
Mobile advertising revenue accounted for roughly 41% of Facebook’s $1.60 billion in total advertising revenue in Q2, up from 30% in the first quarter.
If you’re an investor who has been following a traditional income-style portfolio allocation that includes a lot of U.S. Treasury bonds, then you are likely having a very uncomfortable summer.
Indeed, since the Federal Reserve’s “taper” narrative was first introduced to Wall Street by Chairman Ben Bernanke on May 22, there’s been a virtual bloodbath in the bond market.
According to the June jobs report, the economy added 195,000 jobs last month, on par with the revised pace in May. Economists were looking for 165,000, and a dip in unemployment to 7.5%.
Whether you own gold or have been sitting on the sidelines, you must be wondering whether now is the time to buy more or to finally get in the game.
The Fed is taking its foot off the gas, stocks are reacting wildly to any news, and no one knows if the market can function independently of quantitative easing.
No one but Shah Gilani, that is.
The always vocal, usually incorrect and always extremely left Congresswoman Sheila Jackson Lee recently said:
“Healthcare is a right! It should be in the Constitution. Although it was not listed per se in the Constitution, it should be!”
