Mexico's central bank recently cut interest rates. As noted by Bank of America analysts, this marks the 800th rate cut by a central bank since the start of the financial crisis with the bankruptcy of Lehman Brothers.
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| |  Good morning. Mexico's central bank recently cut interest rates. As noted by Bank of America analysts, this marks the 800th rate cut by a central bank since the start of the financial crisis with the bankruptcy of Lehman Brothers.
While some banks have raised interest rates in that time—including the Fed—lower interest rates for longer periods of time entice buyers to make decisions they otherwise couldn't afford at higher borrowing costs. Some see this as a reason why the stock market has high valuations typically associated with a bubble. But compared to investing in government bonds with next to no yield, and with many common stocks still offering enticing yields, this market likely still has a long way to go higher.
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| | |  | DOW 29,398.08 | -0.09% | | |  | S&P 3,380.16 | +0.18% | | | | NASDAQ 9,731.18 | +0.20% | | | | | *As of market close | | | • | Stocks traded slightly up ahead of President's Day weekend, weighing earnings and coronavirus outbreak numbers. | | | • | Oil rallied 1.2 percent, hitting $52.06 per barrel. | | | • | Gold rose 0.4 percent, moving to $1,585 per ounce. | | | • | Cryptocurrencies traded up, with Bitcoin rising 1 percent to $10,308. | | | | | | | |
| | | How One Fund Lost Hundreds of Millions Shorting Tesla | | | | The average investor tends to stick to a few basic investment principles, starting with buying and holding stocks, usually through a diversified fund.
But some funds, available to wealthy investors, have more flexibility. They can use a lot more leverage, whether through borrowed money or the use of options. They can also hedge their positions, or even go short.
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| | Insider Trading Reports: Spectrum Brands Holdings (SPB) | | | | David Maura, Executive Chairman at Spectrum Brands Holdings (SPB), recently bought 16,709 shares. The buy increased his total holdings by 4.5 percent, and the purchase price came to just under $1 million.
He was joined by Jeremy Smeltser, CFO, who started building a stake with an 8,305 share purchase. That buy came to a total of just under $500,000.
Insiders have mostly been buyers at the company over the past three years, with only a handful of small insider sales.
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| | Unusual Options Activity: Nvidia (NVDA) | | | | June 2020 $340 calls on Nvidia (NVDA) saw a 13-fold rise in volume in recent trading. The options went from 100 open contracts to over 1,300.
The bet, expiring in 123 days, is that shares will rally about 17.2 percent from their current price near $290.
The option buyer paid about $7.80 per share, so shares will need to trade closer to $348 to profit at expiration. That's a full 20 percent higher.
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| | | | TOP | | | EXPE | 11.041% | | | | NVDA | 7.021% | | | | MHK | 4.026% | | | | DLR | 3.928% | | | | PAYC | 3.673% | | | | BOTTOM | | | IPGP | 6.988% | | | | ANET | 5.955% | | | | AIG | 4.811% | | | | MRO | 4.23% | | | | MOS | 3.747% | | | | |
| | |  | | This has been America's decade by far. In terms of the American stock market over the last decade, it has been up 250%. All of the other world stock markets, on average, are up 50% or 60%. | | - Ruchir Sharma, chief global strategist of Morgan Stanley Investment Management, on the relative outperformance of U.S. markets compared to global markets.  | |
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