The Gold Report: You told The Gold Report last year you were "neutral" on the state of the U.S. economy. Since then, the headline unemployment number has improved. Even so, as David Stockman, former director of the Office of Management and Budget, says, there have been no net new jobs created since July 2000, and jobs paying over $50,000 per year have disappeared by 18,000 per month since 2000. What is your view of the health of the U.S. economy? Eric Coffin: I'm more positive than neutral these days, but I do agree somewhat with Stockman. As unemployment falls toward 6%, we would expect an increase in wage gains. But we're just not seeing that. And five years into the latest expansion, we're not seeing the economic growth spurts that tend to occur coming out of a really bad recession. I don't see how the U.S.
The Energy Report: The big news of last week was the announcement that Tesla Motors Inc. (TSLA:NASDAQ) will manufacture lithium batteries in Nevada. What impact will the gigafactory have on lithium? Thibaut Lepouttre: By 2020, the gigafactory will be producing 500,000 (500K) lithium-ion batteries a year. That is more lithium-ion batteries than are currently produced in the entire world.
Since the inception of the Investment Company Act of 1940, investors have grown to expect every mutual fund, closed-end fund (“CEF”), and exchange traded fund (“ETF”) to be treated as a “pass-through vehicle” for tax purposes. The entity itself would not pay any taxes, and all tax liabilities would be passed-through to the shareholders. That was the status quo for decades, until master limited partnership (“MLP”) funds came along.
Market Update: Cerner Corporation (NASDAQ:CERN) – Cerner Receives Regulatory Clearance for Acquisition of Siemens Health Services
[GlobeNewswire] - KANSAS CITY, Mo. -- Cerner announced today the U.S. Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976, as amended, ... Read more on this. Cerner Corporation (CERN), with a current market cap of $20.09B, started the session at $59.00. During the trading session, CERN traded between $58.05 to $59.07 and has traded between $48.39 and $63.07 over the past year. CERN shares are currently priced at 35.35x this year's forecasted earnings, which makes them relatively expensive compared to the industry's 17.58x earnings multiple for the same period. In a review of the consensus earnings estimate this quarter, 29 sell-side analysts are looking at $0.42 per share, which would be $0.07 better than the year-ago quarter and a $0.00 sequential decrease.
Market Update: Exxon Mobil Corporation (NYSE:XOM) – ExxonMobil Continues to Increase Wolfcamp Position
UBS (UBS) rolled out the ETRACS Diversified High Income ETN (DVHI) on Thursday (9/19/13). The new exchange traded note (“ETN”) is targeted at investors desiring significant monthly income from a diversified multi-asset mix. It will track the new NYSE Diversified High Income Index minus the 0.84% annual tracking fee. The underlying index has a current yield of 7.7%, and the ETN will make monthly cash distributions.
Investors have had to endure much more volatility in the past few weeks. We may know why — the Federal Reserve put an expiration date on its $3 trillion-plus bond-buying program. But some investors don’t know how to proceed. The Fed’s easy-money policy — mainly known as quantitative easing, or QE — probably will end next year.