The dividend yield of the broad US S&P 500 index is now just under 1.5 percent, only marginally higher. That is probably one reason why the US stock exchanges are running out of breath after months of chasing records.
The bulls, however, are reassured that the minutes of the recent Fed meeting clearly show that the economy should continue to be supported. Interest rate hikes are not an issue. That gives investors the price-driving scenario of a picking up US economy.
The bulls are getting weaker, but the bears are far from getting the upper hand.
Investors on Wall Street remained nervous on Friday. After its weakness the previous day, the Dow Jones Industrial initially returned with a new record of 31,648 points, but then lost its tailwind under the impression of increased bond yields. With 31,494 points, he then crossed the finish line unchanged in percentage terms. On a weekly basis, it gained 0.1.
The ongoing vaccination campaign supported the expectation of an early recovery from the Corona crisis. In addition to lavish government aid and loose interest rates, this is also a reason for worries about future inflation, which is currently driving up bond yields. “If this trend continues, the stock market would then be a little less without alternatives,” said market observer Jochen Stanzl from CMC Markets.
The tech-heavy NASDAQ 100 fell 0.4 percent to 13,581 points. Because tech values have recently become less important among investors, he posted the fourth loss day in a row.
The order books are currently filling up because customers are ramping up production due to the current shortage of microchips. As a result, shares in competitor Lam Research rose 3.6 percent.
The shares shot up by almost ten percent to the next high. Here, too, a competitor was given wings with Caterpillar. Its shares also remained on the hunt for records, they were the front runners in the Dow with a rise of five percent.
The papers of the airlines American, Delta and United, for example, advanced by 2.9 to 6.8 percent. Analyst Sandy Morris from Jefferies Research currently sees bright spots with some catching up to do in travel behavior.
The pillars for this are vaccinations, test options and health cards.
The price setback of the past few days is only a pause in the share rally and not a trend reversal, said analyst Jeffrey Halley from brokerage firm Oanda of Reuters. “No central bank in the world is currently thinking of taking its foot off its monetary policy gas.
The financial markets will be flooded with cheap central bank money throughout 2021 and a large part of it will flow into stocks. ”
The insurance group Allianz got off surprisingly lightly in the Corona year 2020. For 2021, CEO Bäte is aiming for a record result again, as the group announced in Munich on Friday. In some cases, the insurer has turned the price screw with its business customers significantly and parted with unprofitable contracts.
The group does not want to be responsible for the nationwide closure of businesses. And even a final cancellation of the Olympic Games would not hurt the alliance. Meanwhile, the shareholders can look forward to a stable dividend.
The ZEW index of the Mannheim Center for European Economic Research is a good indicator for the development of the stock exchange, as it provides information about the emotional state of analysts and investors. And if you go after that, the general economic weather situation in Germany should soon brighten. Because the stock marketers are again looking more positively on the German economy.
The barometer of their expectations for economic development in the next six months in February surprisingly rose by 9.4 points to 71.2 points, as the ZEW announced in its monthly survey of analysts and investors. Economists polled by Reuters, however, had expected a decrease to 59.6 points. “
The financial market participants are returning with great optimism – they believe that the German economy can overcome the crisis in the next six months,” explains Michael Holstein, chief economist at DZ Bank. “In the opinion of the financial market participants, the restrictions are likely to be relaxed from spring. You don’t believe in a third wave. ”
The re is currently music on the stock exchanges. Not only because the prices are climbing strongly, but also because the music rights of pop stars are in great demand with investors. Now the French conglomerate Vivendi is providing the next bang.
The UMG portfolio includes the Beatles, Lady Gaga and Rihanna.
Warren Buffett is known as the “Oracle of Omaha” by his followers. Because the major investor recognizes worthwhile trends and companies that others have not yet noticed. No wonder Buffett’s buys and sales are making headlines and price action alike. An example was given last week when it became known that Buffett had made a major stake in the US telephone company Verizon and the US oil company Chevron. Buffett’s Berkshire Hathaway company now holds $ 8.6 billion in Verizon and $ 4.1 billion in Chevron, according to a statement to the Securities and Exchange Commission.
The Verizon shares then rose by three, Chevron papers by 2.2 percent. Berkshire also increased its stakes in pharmaceutical companies Abbvie, Bristol-Myers Squibb and Merck & Co, while it sold stakes in Pfizer and Apple. Buffett increased his stake in the US subsidiary of Deutsche Telekom, T-Mobile US, from 2.4 to 5.2 million shares. In total, Berkshire Hathaway has interests in more than 90 companies. “
The se are classic Buffett investments,” explains Steven Check from Check Capital Management. “Verizon has a low price / earnings ratio, and with oil prices recovering, energy stocks still have a long way to go to recover.” Recently, there have also been rumors that Chevron is dealing with rival Exxon given its tight financial and uncertain financial position Future could merge.
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