Category Archives: Daily Top Ten

Topley’s Top Ten – February, 27 2018

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1.Buffet Warns on Margin Debt.

Warren Buffett offers his ‘strongest argument’ against a practice investors are doing in record numbers

Akin Oyedele

Berkshire Hathaway CEO Warren Buffett has argued against borrowing money to invest in stocks.

  • So-called margin debt rose to a record in January.
  • Margin calls, in which brokers demand a cash replenishment of their clients’ accounts, were among the reasons strategists cited for the pace of the recent stock sell-off.

Warren Buffett doesn’t recommend going into debt to buy stocks.

But that’s exactly what investors are doing in record numbers.

Margin-debt balances — loans individual investors take from their brokers to beef up their portfolios and maximize returns — rose to a record $665.72 billion in January, according to datafrom the Financial Industry Regulatory Authority.

http://www.businessinsider.com/warren-buffett-on-margin-debt-for-stocks-investing-2018-2

https://www.marketwatch.com/story/margin-debt-levels-are-a-poor-tool-for-timing-the-stock-market-2017-09-27

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Topley’s Top Ten – February 21, 2018

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1.Problem for Bears—Fundamentals…Corporate Profits Rise Most Since 2011

  • S&P 500 Index earnings are forecast to grow more than 20%
  • Fundamentals are ‘nothing short of spectacular,’ analyst says

A stream of rosy profit reports has helped soothe the nerves of investors rattled by this month’s stock market plunge. U.S. companies are seeing the biggest growth spurt in quarterly earnings in six years, and the pace is set to accelerate.

The question now is whether that momentum will fuel further stock gains.

https://www.bloomberg.com/news/articles/2018-02-21/as-stock-jitters-recede-focus-shifts-to-surging-company-profits

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