One of Warren Buffet’s Favorite Metrics is Flashing Red—a Sign That Corporate Profits Are Due for a Hit

Here’s a crucial question for investors that the Wall Street crowd seldom addresses: Can corporate profits keep booming by growing faster than the economy? Is this the new normal, or will the GDP-gobbling trend reverse, as it always has in the past, turning today’s record-shattering rally into a rout? Shareholders beware. It’s the unhinging of […]

Amazon Counter Turns Rivals’ Storefronts—Starting With Rite-Aid—Into Package Pickup Centers

It’s often called the “Amazon effect,” the e-commerce giant’s tendency to send stock prices of traditional retailers reeling once it moves into their market. Drug-store chains, for example, saw their stocks tumble when Amazon bought an online pharmacy last year. Now one drug chain, Rite-Aid, has chosen to partner with the Amazon juggernaut. Rite-Aid’s stock […]

Worried About Recession? Here are 3 Ways Investors Can Decrease Stock Market Risk

How much can you handle? Determining how you invest should always begin with an assessment of your risk profile. That’s typically a combination of your time horizon and willingness, ability, and need to take risk in your portfolio. Ability and need require some planning around your goals, current financial circumstances, age, income, family situation and […]

Slack’s Stock Ends Its First Day Worth $21 Billion. Now the Hard Work Begins

Investors, say hello to the biggest tiny speck in the world. A decade ago, serial entrepreneur Stewart Butterfield co-founded startup Tiny Speck, which made video games that ultimately failed to catch on. But instead of giving up, he refocused the company on a chat app that his small team had created to communicate among themselves. […]

Slack Is Going Public Without an IPO. Here’s How a Direct Offering Works

Ten years after it was founded, Slack Technologies will list its shares on the New York Stock Exchange on Thursday. The ticker symbol? WORK. And the NYSE has set Slack’s stock reference price, which may help determine where it starts trading, at $26 a share, valuing the company around $15.6 billion. But in contrast to […]

When the Next Recession Hits, 4 Good Things Could Happen

Unless the GDP suddenly falls off a cliff, next month will mark the longest economic expansion U.S. history, surpassing the period from March 1991 to March 2001. Expansions don’t die of old age but eventually excesses will build in the system which will inevitably cause another economic contraction. No one knows when exactly that will […]

Slack IPO: The Stock Market Is Rolling Out Its Welcome Mat Over Recent, Successful Tech Listings

After a sluggish spring, technology companies braving stock offerings in the public market are finding a warmer reception this month. The biggest test will come later this week, when Slack Technologies is expected to start trading through a direct offering. Slack’s chat and collaboration platform has become a workplace tool in 600,000 organizations, 95,000 of […]

S&P 500 Has Performed 35% Worse Under Trump Than Under Obama

So much for having the “best” stock market returns. During his first two years in office, Donald Trump regularly pointed to the stock market as proof of his leadership’s effectiveness. Experts may have shaken their heads, saying that stock values aren’t an accurate measure of the country’s economic performance. But they are popular with voters, […]