After Last Week’s Sell-Off, A Market Correction Is More Clearly Underway

Stock markets around the world got clobbered last week. The U.S. was down 5%-6%. Europe fell 5%-8%. China and nearby countries also dropped 5%-8%. Latin America was mixed, but still down 1%-8%. Continue reading

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Consolidated Water (CWCO) Update

Consolidated Water reported net income attributable to stockholders of $2.23 million or 15 cents per share for the 2015 second quarter ended June 30. This was below last year’s $2.76 million or $0.19 per share and also a penny short of the consensus estimate. Continue reading

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Good Opportunities in Income-Producing Stocks

For many investors, the U.S. economy’s gain of 215,000 jobs in July “sealed the deal” for a Fed Funds rate hike in September. A 25 basis point rate hike is now more likely, according to the futures market. The current September contract for Fed Funds futures, according to my estimates, implies a 44% probability of no increase and a 56% probability of a 25-basis point increase at the upcoming September 17 FOMC meeting. Alternatively, the CBOE’s black box puts the odds of no increase at 55%. (Of course, the probability calculations are sensitive to the assumptions used. The fact that the current Feds Fund target rate is a range between 0.00% and 0.25% complicates the analysis.) Continue reading

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Commodities, China Probably Won’t Break The Market’s Back

After today’s open, it is obvious that the market is retesting its early July lows.  Talk about whiplash!  The market went straight up in eight trading sessions, to an intraday high of 2132.82 (on the S&P 500), above the previous high of 2129.87 set on June 22, but just shy of the all-time high of 2134.72 set on May 20.  That higher high keeps the hope of a resumption of the uptrend intact.  The latest sell-off is scary, but I would be reluctant to bail out now. Continue reading

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