Fed’s Projections Meet Market Expectations

Fed's Projections Meet Market Expectations

Major Moves The last time we received the Fed’s forward-looking estimates for interest rates and growth was last December. At the time, the median estimate for the overnight interest rate by the end of 2019 included two more hikes in 2019. Since then, traders had shifted to an assumption that there was zero chance for a rate hike and a 25% chance for a rate cut by the end of the year as growth has slowed in Asia, Europe and much of North America. The risk today was that the Fed would…

How Entertainment Became an Empire

How Entertainment Became an Empire

Walt Disney (NYSE:DIS) is one of the most powerful companies, in one of the most powerful sectors of any economy: entertainment. Before it became a company with a $164 billion market cap, with interests spanning the globe, Disney was more closely associated with the vision of the man after whom it was named. It was this vision that laid the groundwork for the company to become the media giant it is today. On March 20, 2019, Disney officially acquired all the media assets of 21st Century Fox for $71.3 billion, making it…

Best And Worst Q1 2019: Large Cap Value ETFs And Mutual Funds

David Trainer

The Large Cap Value style ranks third out of the twelve fund styles as detailed in our Q1’19 Style Ratings for ETFs and Mutual Funds report. Last quarter, the Large Cap Value style ranked first. It gets our Attractive rating, which is based on an aggregation of ratings of 66 ETFs and 899 mutual funds in the Large Cap Value style. See a recap of our Q4’18 Style Ratings here. Figures 1 and 2 show the five best and worst rated ETFs and mutual funds in the style. Not all…

Crypto Initiative Could End IBM’s Long-Term Downtrend

Crypto Initiative Could End IBM's Long-Term Downtrend

Dow component International Business Machines Corporation (IBM) could trade higher after receiving letters of intent from six banks to issue stablecoins, a.k.a. “tokens,” on the tech giant’s World Wire payment network. Traditional currencies will underwrite the coins, removing a major obstacle for traditional businesses to adopt the futuristic cryptocurrency system. When implemented, the network will support much faster movement of capital than the low-tech worldwide banking system currently in place. IBM took the top slot in blockchain technology in a September 2017 survey by Juniper Research, a digital commerce and…

Factors That Influence Black-Scholes Warrant Dilution

Factors That Influence Black-Scholes Warrant Dilution

A warrant is like an option, except it is issued by a company. The warrant gives the holder the right to buy stock from the company at a specified price within a designated time period. When an investor exercises a warrant, he or she buys stock from the company and those proceeds are a source of capital for the firm. While warrants aren’t that common, it’s important to understand what they are, and how to value them, in case a company you own shares in offers warrants, or may in the future. Warrants…