This economy is just like the one Trump ran against in 2016 — except one thing

We don’t yet know how Democrats will run against President Donald Trump’s economic record. But we know exactly, after Friday’s jobs report, how Donald Trump would run against it. That’s the cleanest political-economic takeaway from the news that the economy added just 130,000 jobs in August, about 40,000 short of expectations and undermined further by weak details in the report. […]

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Stock dividends offer more yield than 30-year Treasury bond for first time since 2009

Here’s another consequence of the rally in government bonds that’s sent yields crashing around the globe — U.S. stocks now offer more yield than the 30-year U.S. Treasury bond. As the chart below, going back to 1977, from Bespoke Investment Group highlights, the Tuesday move marked the first time since the financial crisis that the dividend yield on S&P 500 […]

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Here’s what it takes to weather a major bear market and then buy stocks on the cheap

Perhaps the most important key to the long-term success of your stock market strategy is whether you will stick with it through a bear market. That’s because you can have the theoretically best strategy on the planet and still lose money if you bail at the bottom of the next bear market. Yet determining your bear-market behavior is surprisingly difficult. […]

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Yep: Wall Street is now chasing the market

Fascinating new data from Bank of America shows how terrified money managers are chasing the stocks that have already gone up, in the hope of not getting fired for missing the latest rally. “Active investors are now “buying what’s working” more aggressively than usual,” write the bank’s quantitative data team in a new report. So-called momentum stocks, meaning the stocks […]

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Grocery Outlet’s off-price model is poised for growth — as long as the shelves stay stocked

Grocery Outlet Holding Corp. is poised for growth, according to Morgan Stanley analysts led by Simeon Gutman, as long as the off-price grocer can keep goods on the shelves. Morgan Stanley was among at least four analyst initiations for Grocery Outlet GO, +4.64%  on Monday; analysts there rate the stock equal-weight with a $30 price target. Grocery Outlet shares began […]

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401(k) retirees won’t buy annuities unless they are better designed

In an unusual bipartisan effort, Congress is close to passing the SECURE Act (Setting Every Community Up for Retirement Enhancement). In a key provision, the Act encourages employers sponsoring 401(k) plans to offer retirees the chance to convert their plan balances into annuities with monthly payments for the rest of their lives.  In specific, the Act establishes a safe harbor […]

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What trade war? U.S. consumer remains resilient in the face of Trump’s tariffs

While U.S. many businesses are expressing increasing concern over the effects of tariffs on imports and exports imposed by the U.S. and China, the U.S. consumer doesn’t seem to be feeling the same pain, according to a Friday research note from Bank of America Merrill Lynch. “For the last several months, retail sales have been growing at a solid pace […]

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Dow, S&P end in record territory after Powell boosts expectations for Fed rate cut

The Dow and S&P settled at an all-time highs Thursday, after Federal Reserve Chairman Jerome Powell left investors feeling fairly confident about the odds of an interest rate cut later this month. Powell testifying Wednesday before the House Financial Services Committee and Thursday in front of the Senate Banking Committee gave investors more hope that a rate cut is coming. […]

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