Welcome to the weekly edition of What’s Hot In Stock Market News. To help you stay up to date with Shares and Stock Markets, here are some of the news items that caught my attention this week
What’s New This Week?
More Austerity For UK Despite Recovery: Britain faces fresh government spending cuts worth $41 billion (£25 billion), signalling the scars of the financial crisis in one of Europe’s strongest economies have far from healed. In a speech on Monday Chancellor George Osborne said £25 billion would be cut over two years through to early 2018, equivalent to nearly 2% of government spending over that period.
Swedroe: The Best Approach To ‘Value’: It’s well documented in the academic research on stock returns that value stocks have outperformed growth stocks. And we see the higher returns to value stocks in all almost countries. And not only has value outperformed growth, but the persistence of its outperformance has been greater than the persistence of stocks outperforming bonds.
Investors Most Bullish In Nearly 27 Years: Sentiment is not a timing indicator, but it is an indicator of problems. And bullish sentiment today is greater today than at any time in the past 27 years according to Asbury Research. Investor sentiment is an important component of financial market analysis because it tells us what investors are collectively thinking.
French Unions Hold Goodyear Execs Hostage: Two Goodyear executives were held hostage for around 30 hours by French workers protesting over pay and plans to close their factory. Production manager Michel Dheilly and human resources manager Bernard Glesser were prevented from leaving their offices at the Goodyear tyre factory in northern France early Monday. They were released Tuesday afternoon.
Pot Stocks Light Up The Market: The business of legal marijuana is booming in Colorado and investors are catching a contact high. Yes, there are pot stocks. Nearly all of them are thinly traded penny stocks available only on over-the-counter exchanges, but shares of companies that service the growing cannabis market have been blazing in recent weeks.
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