MCM securities analyst, John Meyer, tells The Cincinnati Business Courier that tasty Kroger/Whole Foods merger deal is unlikely to happen. Will investors go hungry?
For a limited only, new MCM clients who qualify are eligible for one full-year of free equity and ETF trade commissions, making now a great time to refer someone you know!
Personal referrals are MCM’s primary source of new business growth. We are actively seeking to grow so that we can bring more of MCM’s great benefits and services to more people. We are very thankful for each referral we receive and for all of our existing clients who joined the MCM family via referral. If you appreciate someone who shared MCM with you, it’s likely someone you know will also appreciate the gesture. So…share the wealth, figuratively of course, by referring someone you know. They’ll be grateful, and we will too.
If you live in the United States and have yearly family income of $150,000 or more, a recent study by Nielsen Global Consumer Insights reveals that there is a 25% chance that you have little or no savings because you consume every last dollar you earn. This is called living hand-to-mouth or, to put it bluntly, you’re basically broke. Isn’t that hard to believe?
The average family income in the U.S. is just under $47,000 as of 2014. It would be reasonable to think those fortunate souls making over $150,000 would not be struggling each month to make ends meet. Not so, according to Nielsen. Far from it, in fact. The same study revealed 33% of households making between $50,000-$100,000 and 50% of households making less than $50,000 are in the same hand-to-mouth situation.
Polling ahead of yesterday’s Brexit referendum in the U.K. pointed to a slim victory for Remain proponents, including Prime Minister David Cameron. As a result, stocks gained steadily in the days leading up to the historic vote. How misleading those polls turned out to be as a majority of Britons cast their votes in favor of leaving the EU. This is a bona fide historic event but it is not a cause for panic and should not alter the basic calculus for the vast majority of individual investors.
Not surprisingly, global equity markets sold off by as much as 8%, the British pound plummeted, the euro fell and the price of gold jumped to a two-year high. Morning trading on the New York Stock Exchange is much tamer than elsewhere with the major stock indices moving down by 2.0-2.5%, on average. Fixed income markets are moving decidedly higher.
In the short-term, MCM portfolio managers are busy sorting through the carnage hunting for mispriced assets that can be bought at attractive discounts and/or sold for outsized profits. Our objective to maximize investment rate-of-return in client portfolios remains unaffected by the events in Europe.
Longer-term, all eyes will be on other EU countries and whether or not they follow Britain’s example and stage referendums of their own. Italy, Spain and Greece immediately come to mind. A total collapse of the EU is not out of the question. The only sure thing is that capital market volatility will be with us a good while longer.