While the Federal Reserve and European Central Bank talk about potentially cutting interest rates, it's important to remember that many governments around the world are near zero—or in some cases negative interest rates
| | Good morning. While the Federal Reserve and European Central Bank talk about potentially cutting interest rates, it's important to remember that many governments around the world are near zero—or in some cases negative interest rates. There's now over $12.3 trillion in global debt with negative yields. Or, in other words, where lenders pay borrowers for the privilege of borrowing their money instead of the other way around.
That may sound attractive to borrowers: get money now and owe less later. That's even the case for homebuyers in Denmark, where mortgage rates have gone to zero. But the endgame for this status quo is unknown—but likely dire. Hmm, if only there was some kind of prior even in the housing market to give investors an idea of what happens when borrowing costs are too cheap? | | | Was this email forwarded to you? Get your own! Sign up here. | | | | | | | | DOW 26,753.17 | +0.94% | | | | S&P 2,954.18 | +0.95% | | | | NASDAQ 8,051.34 | +0.80% | | | | *As of market close | | • | Stocks shrugged off Iranian saber-rattling, and made a run for new all-time highs on Thursday. | | • | Oil surged 5 percent and gold hit a 5-year high, on geopolitical fears and a dovish monetary outlook. | | | | | | S&P 500 Index Hits All Time High | | | Stocks, gold, and oil all surge higher Thursday. | | Markets made another run at all-time highs on Thursday. The S&P 500 index hit new highs during intraday trading.
The move shrugged off geopolitical events, such as Iran's shooting down of a U.S. drone, in a clear escalation of conflict between the two countries. Bullish earnings and some big public offerings helped send markets higher, but stocks moved off their highs as President Trump made belligerent comments regarding Iran.
» FULL STORY | | | | | | Slack Joins IPO Club | | | Software company sees shares soar over 40% in debut. | | Cloud-based team collaboration software company Slack (WORK) went public on Thursday, joining a busy field of companies making the move to stock exchanges after years or being privately-held.
Shares of the company were originally priced at $26, giving the company a rough valuation of $15.7 billion. However, trading began around $36-37, indicating that shares gained about 40 percent from their open.
» FULL STORY | | | | | | | Insider Activity: Scientific Games Corp (SGMS) | | Shares of gaming technology company are down over 60 percent from 52-week highs. | | Billionaire investor Ron Perelman bought 120,000 shares of Scientific Games Corp (SGMS) on Wednesday, June 19th. The total cost came in at over $2.34 million. Perelman is already a director at the company, and also a 10 percent owner as well.
The Las Vegas-based company develops technology related to the gaming industry, including physical gaming machines, video lottery systems, and related hardware and software.
» FULL STORY | | | | | | Unusual Options Activity: Snapchat (SNAP) | | | Traders bet on rise in social media company. | | A bullish bet is being made that shares of Snapchat (SNAP) will continue to rally in the next few weeks.
On Thursday, over 11,700 contracts of the July 12th $15.50 call options contracts had been traded, against an open interest of 106, representing a 110-fold surge in volume. This bet, with shares currently at $14.70, implies that shares will rally by at least 5.4 percent in the next month.
» FULL STORY | | | | | | | TOP | | ORCL | 8.182% | | | NBL | 6.149% | | | HFC | 5.358% | | | HAL | 4.906% | | | SLB | 4.766% | | | BOTTOM | | CCL | 7.646% | | | ALK | 3.404% | | | AAL | 3.192% | | | RCL | 3.188% | | | NCLH | 2.504% | | | | | | | | | Geopolitics is helping oil bulls to make a spectacular come-back after a few days' of directionless trading | - Tamas Varga, PVM Oil Associates Ltd. analyst | | | | Will the Fed ever learn? | | | The Fed announced they are done raising interest rates this year. The bad news…it's too late. The damage is already done. The Fed's reckless rate hikes have already triggered an event that's a proven economy killer. It ignited the Dot-Com bust, housing crash and debt crisis. What happens next is unstoppable. What lit the fuse? Go here to find out. | | | |
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