
31.Oct.2018
Yesterday’s rally occurred despite GE sinking 10% (YTD -40%) to 2009 lows after the company scrapped its dividend following an exceptional loss of USD22bn in its power unit which also led the SEC to widen an accounting probe. IBM which has been for a long time a master at realizing assets for exceptional profits has now likely made the single purchase too much, at a stellar price with borrowed money for a company that will accrue very little to its bottom line. IBM will acquire the debt of Redhat and issue some more debt of its own to buy this company as it also announced it would to buy back USD4bn of its own shares to help investors swallow the pill… "Our strong cash generation allows IBM to both invest in world-class innovations and to return money to shareholders," said CEO Ginni Rometty. The judgment of the market was a further 4% decline in IBM share, extending a decline of around 7.6% the day before (and of 15% over the past week). IBM also got a quick credit downgrade of Fitch from A+ to A which placed the company on watch negative, indicating the rating could be lowered again. GE’s decision to cut its dividend was the 8th largest in the history of the S&P500. The impact of GE on the S&P500 is now only 1/10th of that of Apple but its shares are held by many pensioners as a core “good father” equity investment. D. Trump referred to the stock market correction as “a little pause” and cautioned against the risks of voting Democrats. “The Stock Market is up massively since the Election, but is now taking a little pause - people want to see what happens with the Midterms. If you want your Stocks to go down, I strongly suggest voting Democrat. They like the Venezuela financial model, High Taxes & Open Borders!”. D. Trump may have forgotten that the Venezuela model is what it is, courtesy also of his own sanction regime that contributed to halving the country’s oil production.
————- This is a delayed and abbreviated version of our premium subscription-based report sent by email to our subscribers every day prior to Asian Markets Closing by 5AM CET time. For a timely and detailed update on global markets, a comprehensive suite of market reports and a briefing of our tactical model portfolios positioning, consider our premium research. Discounts may apply for all private (USD500/year) and professional (USD2’000/year) subscription plans. We help you know when to run and when to sit by tracking all established or developing trends on all major asset classes and by flagging all statistically meaningful market breakouts or trend breaches. To join our 2 weeks free trial, simply click the link below. You won’t regret it! https://www.bentinpartners.ch/subscribe ————- Important Disclaimer: © Copyright by BentinPartner llc. This blog is not intended as a recommendation, an offer or solicitation for the purchase or sale of any security or underlying asset referenced herein or investment advice. Investors should seek financial advice regarding the suitability of any investment strategy based on their objectives, financial situation, investment horizon and particular needs. This blog does not include information tailored to any particular investor. It has been prepared without any regard to the specific investment objectives, financial situation or particular needs of any person who receives this report. Accordingly, the opinions discussed in this blog may not be suitable for all investors. You should not consider any of the content in this report as legal, tax or financial advice. The data and analysis contained herein are provided "as is" and without warranty of any kind. BentinPartner llc, its employees, or any third party shall not have any liability for any loss sustained by anyone who has relied on the information contained in any publication published by BentinPartner llc. The content and views expressed in this report represents the opinions of Marc Bentin and should not be construed as guarantee of performance with respect to any referenced sector. We remind you that past performance is not necessarily indicative of future results. Although BentinPartner llc believes the information and content included in this report have been obtained from sources considered reliable, no representation or warranty, express or implied, is provided in relation to the accuracy, completeness or reliability of such information. This blog is also not intended to be a complete statement or summary of the industries, markets or developments referred to in the blog. #DollarIndex @federalreserve #ForexMarket #ForexNews #USD #USTreasuries #TradeWars #Markets