The Mining Report: What's the biggest risk to a mining investor in a broad market correction? Björn Paffrath: Probably a worldwide economic slowdown, especially in China. If demand is fading, metal prices will fall. If the Chinese people need money to pay debt, they will likely sell some gold too. That also counts for other investors in general. Also, if the broad market will enter a longer correction phase, then the mining stocks will get hit too. In the end, if we like it or not, mining stocks are correlated to the general market. That's the risk. That's my biggest fear. Some goldbugs believe gold prices will rise dramatically if there's a crisis but, in general, we have to be very careful with such assumptions, as we could see from the year 2008. TMR: Some banks remain quite bearish on gold with the S&P near record highs.
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.
The Energy Report: Why are you excited about the oil and gas space right now? Peter Epstein: Oil and gas is unique in that it hasn't budged when so many commodities have fallen precipitously in price. Coking coal prices, for example, are at multiyear lows. The iron ore price has fallen below $100/metric ton. The uranium spot price has fallen to a nine-year low.
Stock Update (NYSE:AXP): American Express Serves Fans the Finest of the 2014 US Open with Innovative Digital and On-Site Services
[Business Wire] - American Express is harnessing the latest technology to get tennis fans on-site and around the world involved in the action on the courts at the USTA Billie Jean King National Tenn Read more on this. American Express Company (AXP), valued at $93.15B, started trading this morning at $88.01. Today, shares have traded between $87.91 and $88.64 per share and has traded between $71.47 and $96.24 over the past year. AXP shares are currently priced at 16.02x this year's forecasted earnings, which makes them relatively expensive compared to the industry's 13.40x forward p/e ratio. And for those looking to make a return holding the stock, the company pays shareholders $1.04 per share annually in dividends, yielding 1.10%. According to a consensus of 27 analysts, the earnings estimate of $1.36 per share would be $0.
Stock Update: Monsanto Company (NYSE:MON) – Monsanto’s Expanded Set of Innovations Highlight Long-Term
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.
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.