Even momentum comeback can’t save quants

By some measures, equity quantitative funds in the United States should be thriving. But they’re not.

Their fundamental counterparts are having a banner year. Stock correlations are at all time lows and clearer market trends are breathing life back into the momentum trade, a strategy among equity quants that bets the winners will keep winning. As those shares chart increasingly independent paths from the losers, equity fund managers are recording their strongest performance in five years, data compiled by JPMorgan Chase show. read more

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The contrarian Perspective on dividend-paying stocks

Investors tend to see companies that pay dividends as dull, but dependable, stewards of shareholder funds, but there are an assortment of reasons why those payouts are not necessarily the best indication of a strong firm.

Dividends and stock buybacks are the basic demands of activist investors in the last few decades as they push company managers to uncover more value for investors. These are often vulnerable supervisors who’ve been struggling to unlock expansion. Take General Electric Co. for instance, a U.S. stalwart that lots of fear is going to slash its dividend after falling short of third-quarter profit expectations. With a return of 4.8 percent, GE’s dividend appears to be appealing, but the firm has been fighting with restructuring, weakness in management and operations upheaval. read more

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A 6.8 Percent dividend yield that Is actually safe

I enjoy dividend increases. I enjoy it even more when a company vows to boost its dividend for many years into the future.

Case in point: Capital Power Corp..

In July, the independent power producer not only increased its dividend by 7.1 percent — its fourth consecutive yearly increase — but extended its 7-per-cent yearly dividend growth advice by two decades, towards the end of 2020.

The projected hikes still require board approval, mind you, but Edmonton-based Capital Power probably would not be making these promises unless it was convinced it could deliver. read more

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Metal bulls multiply as International economic engine fires up

International expansion is on a tear, and that can only be positive for metals prices.

That is the message coming out of the industry forward of LME Week. For the first time in years, optimism is widespread amongst traders, smelters, miners and agents gathering in London, buoyed by a combination of strong growth throughout the planet’s key demand centers, provide curbs in China and a return of investor interest.

“The global economy looks far better than it’s done probably since the catastrophe — possibly before that,” said Saad Rahim, chief economist at Trafigura Group PTE, the second-largest metals dealer. “I’m pretty bullish.” read more

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As Trump tax comes to Flooring, failure could spell stocks selloff

Investors are increasingly pricing at the impact of a corporate tax cut to the stocks of U.S. companies, leaving the market ready for a steep sell-off if the Republican-controlled Congress fails to pass among U.S President Donald Trump’s top priorities.

The grade Samp;P 500 is up about 6 percent from its August lows since the Trump government has rolled out its tax reform proposal, which would cut corporate taxes to 20 percent from the current 35 percent and permit businesses to bring back some of the $2.6-trillion (U.S.) in cash now held overseas at reduced rates. read more

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Bullish on Xerox

Xerox Corp. dropped from $37.83 to $22.34 (A-B) below its decreasing 40-week Moving Average (40wMA) and under a falling trend-line (dotted line). The inventory found support at ±$23 (dashed line) and then rallied above the falling trend-line and over its 40wMA to reach $30.76 (C). Following a correction to support in the climbing trend-line (solid line) and in its own 40wMA (D), Xerox declared the up-trend (E). This price action signalled renewed investor interest and the beginning of a new up-leg toward greater targets. A slight decline may occur toward ±$31, but just a sustained decline below ±$29 would be negative. Point amp; Figure measurements provide goals of $36 and $39. Higher targets are observable. read more

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Nike coming for Lululemon, sharpens focus on women’s wear

ike Inc. is increasing investments in yoga pants and sports bras as part of a quest to revive growth, intensifying its battle with Lululemon Athletica Inc. for women.

Nike will open pant studios in 5,000 stores on Nov. 1 to highlight new styles for workouts and leisure, the company said in supplemental documents to an investor presentation on Wednesday. A presence in thousands of stores would dwarf the footprint of Lululemon, which helped turn yoga and fitness gear into everyday attire. It has 421 locations, mostly in the U.S. and Canada. read more

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Nickel the latest metal to feel the electric Car buzz

It was lithium. Subsequently it was cobalt. And now it’s nickel’s turn in the electric car spotlight.

Nickel is equally as important as the other two metals in fabricating the batteries which will power the green tech revolution.

It’s used in both currently dominant lithium battery configurations, nickel-cobalt-manganese and nickel-cobalt-aluminium.

Indeed, it may improve its substance share against cobalt, a metal that’s posing all kinds of supply issues, both moral and physical, for the automotive industry. read more

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This REIT is right at home in my portfolio

Everybody needs a place to call home. But not everybody can afford to purchase a house — particularly at today’s dizzying rates.

That, in a nutshell, is why I included Canadian Apartment Properties REIT in my .

Now, I will take a better look at CAP REIT and explain why I feel it is an attractive choice for investors looking for steady income with a dash of expansion possible.

CAP REIT is Canada’s largest multiunit residential landlord, with a portfolio of approximately 50,000 apartment units, townhouses and land-lease websites spanning eight provinces and targeting customers across the “affordable,” “mid-tier” and “luxury” segments. read more

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Oil Shareholders jump back into the fray as Resurrection beckons

Oil investors are back in the ring.

Hedge funds are finding gambling on West Texas intermediate crude more attractive {}, with complete positioning on the U.S. benchmark increasing to the highest in nearly a year. The spike comes as oil prices have held steady over $50 (U.S.) a barrel — a key emotional level — for about two weeks.

“Generally speaking, people are more inclined to get into oil at the moment,” Ashley Petersen, direct oil analyst in Stratas Advisors in New York, said in a phone interview. “Over all, there has been a true belief that the industry has kind of stabilized the ship and is on the upswing.” read more

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