This week we show several contrary market indicators, which are positives for the stock market overall. We also feature a large alternative investment manager paying a 6.3% dividend, poised for a turnaround.
Wall Street’s latest plan to extract fees from clients comes in the form of “Robo-Advisors” – computerized programs that purport to substitute advice from a live investment advisor. On Friday, June 24, Betterment, a leading robo-advisor, arbitrarily decided to lock-out clients who wanted to trade in those fast market conditions.
Halliburton’s stock currently trades near $43, which is 47 times the 2017 earnings consensus street estimate. In our opinion, this is a prime example of how an industry turn does not necessarily make a stock in that industry a “buy”. Halliburton trading at 47x the 2017 estimate still is not cheap.
This week we feature a U.S. homebuilder with 40% upside to our target price over the next 24 months.
For the U.S stock market, we believe the volatility driven by Brexit will be short-lived. We suspect that in a year or two we will look back and wonder what the fuss was all about. We are even more confident in five years that will indeed be the case.