On Nov. 8, 2016, India’s Prime Minister Narendra Modi proved one more time that he’s not an ordinary politician when the government withdrew the legal-tender status of the 500- and 1,000-rupee currency notes. India’s decision to ban some currency has created problems, but only in the short term. The economy and market remain robust, and the coming volatility is an opportunity to buy.
Demand for pest control remains steady even in the most challenging of economic environments. Couple that with organic growth opportunities and smart acquisitions, this pest-hunting company is set to creep and crawl its way to continued profits and growth.
If the new administration lives up to its promises and increases the defense budget during its time in office, current equity valuations in the industry should be sustainable. But prospective investors should remember that the new administration’s first proposed budget will be for 2018, so the defense industry’s financial results won’t receive a bump until 2019. And not all companies will benefit to the same degree.
The December 2015 issue of Conrad's Utility Investor emphasized the importance of diversification to generating differentiated returns in 2016. Despite a few laggards, that article's picks outperformed, generating an average total return of 18.6 percent. This year, we opted to highlight 10 trends that should drive outperformance.
OPEC's Nov. 30 meeting yielded an accord to cut oil production by 1.2 million barrels per day, sending the price of West Texas Intermediate 9 percent higher on Wednesday and 3.5 percent higher on Thursday. After this exuberance subsides, the market's focus will shift to whether OPEC members honor their agreement and a potential recovery in US oil production.
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