Goldman Sachs' new consumer loan initiative is designed to keep the Wall Street giant ahead of the growing number of non-bank lenders making inroads. These firms, like peer-to-peer lenders Prosper and Lending Club, are growing fast. Goldman has some big advantages, though - which make its entry into the consumer loan market undoubtedly a smart move.
- Goldman Plays Defense With Consumer Loan Initiative
- The Most Dangerous Financial Headline I've Seen Since the 2008 Crisis
- Dividend Investing News: 23 New Increases for Yield Seekers
- Goldman Sachs (NYSE: GS) Earnings Show Investment Banking Growth; Stock Rises
- YHOO, JPM, and GS Earnings Top Today's Wall Street News
- Dow Jones Industrial Average Today Hits Record High Near 17,000
- Apple iPhone Update Leads Today's Financial News
- Facebook (Nasdaq: FB) Challenges Networkers with "Wedge"
- Stock Market News: Dow Dips on Global Growth Forecast
- Goldman Sachs (NYSE: GS) Lines Up Its Next Victim: Ecuador
- Don't Be Fooled by Goldman Sachs' (NYSE: GS) Earnings Beat
- Stock Market Today: It's Easy to Beat Earnings Estimates When You Aim Low
- It's Game Over, Goldman Sachs (NYSE:GS) Has Won
- Forget Goldman Sachs; Only Fools Rush In
- Why a Goldman Sachs (NYSE: GS) Report Says It's Time to Buy Stocks
- "Jerry Maguire" Waves Goodbye to Goldman Sachs (NYSE: GS) and its Muppets
In my capacity as Chief Investment Strategist, I read newsfeeds from more than 100 sources every day. That helps me keep tabs on the Unstoppable Trends we follow at Total Wealth, what's going on around the world, and, more importantly, discover opportunities for you that others don't yet understand or even recognize.
Given everything going on - ISIS, Russia, Washington, fabricated economic numbers, earnings... you name it - it takes a lot to surprise me. I'm pretty jaded.
Dividend investing news: As we enter the final quarter of 2014, here's a look back at the robust dividend activity in Q3.
According to data from S&P Dow Jones Indexes, 563 companies raised, restored, or approved extra dividends in Q3. That's up 18.5% from last year's Q3 tally of 475. And dividend boosts in Q4 2014 are expected to trump Q3's activity.
Goldman Sachs Group Inc. (NYSE: GS) stock is up today (Tuesday) after GS earnings surprised Wall Street with a strong beat. The investment powerhouse reported second quarter results before Tuesday's opening bell.
Wall Street news today, July 15, 2014: U.S. markets rallied on Monday as concerns over European debt subsided and investors took a more optimistic stance on second-quarter profit season. The financial sector led the charge ahead of their earnings this week. Today's futures were mixed as the markets prepare for Federal Reserve Chair Janet Yellen's semiannual testimony before Congress.
Investors will also keep a close eye today on earnings reports from Yahoo! Inc. (Nasdaq: YHOO) and Goldman Sachs Group Inc. (NYSE: GS), among others.
Dow Jones Industrial Average Today, July 1, 2014: flirted within two points of 17,000 on Tuesday, as transportation, technology, and small-cap stocks surged. The Nasdaq led the day by percentage gains, jumping more than 1.2%. The exchange's gains were fueled by Netflix, Inc.'s (Nasdaq: NFLX) gain of 6.5% after it received an upgrade from Goldman Sachs' analysts.
Top Financial news today, June 24, 2014: U.S. stock markets dipped on Monday as corporate mergers continued to make headlines and the United States saw home sales rise for a second consecutive month. Last month, sales of previously owned homes increased by 4.9%, the fastest one-month gain since August 2011.
Facebook Inc. (Nasdaq: FB) has built its own networking switches--crucial hardware devices that transport Internet information between machines--to power its increasing number of services.
Stock market news, June 11, 2014: The Dow Jones Industrial Average slipped more than triple-digits on news that the World Bank slashed its global growth forecast from 3.2% to 2.8%.
Unbowed by fines and new regulations, Goldman Sachs (NYSE: GS) has simply looked elsewhere for fresh victims.
In a deal that barely registered with the mainstream media, Ecuador's central bank agreed earlier this week to swap half of its gold reserves - worth $580 million - with Goldman in exchange for liquid assets.
The Ecuadorian central bank thinks it's going to earn $16 million to $20 million in profit over the three-year duration of the deal.
Goldman Sachs (NYSE: GS) stock rose 1.22% yesterday (Wednesday) to $178.75, ahead of today's Q4 earnings release.
Analysts project EPS of $4.21 on revenue of $7.71 billion. Those figures are down from last year, when GS reported EPS of $5.60 on revenue of $9.24 billion.
The bank is scheduled to report earnings at 7:30 A.M. EST and will follow up with a conference call at 9:30 A.M.
GS stock has performed well lately, up 10% in the last three months and 29% in the last year.
Here's our market roundup for investors:
- Earnings continue to beat estimates- The third quarter was supposed to be a dismal earnings season but lowered expectations are giving companies a boost. Johnson and Johnson (NYSE: JNJ) and Goldman Sachs Group Inc. (NYSE: GS) reported better-than-expected profits this morning and each offered investors something else to cheer about. JNJ's third-quarter profits fell 7% from last year but its adjusted EPS of $1.25 beat Wall Street's estimates of $1.21. Goldman had a third-quarter profit of $1.51 billion, compared with a year-earlier loss of $393 million and easily beat both earnings and revenue forecasts. Besides the strong earnings, Goldman announced that it would increase its quarterly dividend to 50 cents from 46 cents and JNJ raised its 2012 earnings forecast. JNJ stock is up 1.4% in early trading and GS stock is up 1.0%.
"Investors are cycling back into risk as earnings as well as economic numbers in the U.S. are somewhat better than expected," Chad Morganlander, a Florham Park, NJ-based fund manager at Stifel Nicolaus & Co. told Bloomberg News in a telephone interview. "Economic growth will continue to be sluggish even with the flickers of hope that we've seen this morning."
It's game over.
The match that ended last Thursday wasn't the final match in the series being played here on U.S. fields.
But it might as well have been.
The score was so lopsided, it reminded me of those long ago and far away matches where everybody cheered the action, not the players, because the deck was always heavily stacked and the outcomes almost always a foregone conclusion.
Those days, long ago, such lopsided matches were all the rage in Rome.
And typically, when scores were posted, it would be something like Christians nothing, Lions twenty.
Last week, though the score didn't reflect the intensity of the match, the outcome was just as lopsided.
It ended up Justice nothing, Goldman Sachs (NYSE:GS) won (I mean one).
You see, there is no fire raging. It's all just smoke on the water. That's because the regulators - and oh yeah, that includes the Justice Department - have been thoroughly captured by the real lions of Wall Street. (Now, there's an idea for a reality T.V. show.)
In case you were too busy watching those other matches over in London, here's what just happened.
The investment bank's 40-page bullish report, titled "The Long Good Buy: The Case for Equities," says to forget the huge run-up since 2009, forget the 25% rise in equities over the last five-and-a-half months, and forget bonds. This party is just getting started.
Are they right? Yes, they are.
Should you heed their advice and sell your bonds and load up the truck with equities? Hell no.
Goldman's report is like me forecasting increasing dark towards evening. It's too obvious. Of course stocks are a better buy than bonds in the long run when bond yields are so low.
But there's this little problem of timing that they don't address.
If you load up on equities now, and there's a correction, or worse, a double-dip in major market economies, and you get taken to the cleaners, unless you're young enough to hold onto your stocks for a generation, you may be done... as in toast.
Right now is not the time to jump onto the bull market. It looks great, I agree. But this creature is getting restless, and coming into the spring, some caution may be warranted.
If you want to get in, have patience. There's plenty of time, if the markets are presenting a generational buying opportunity.
By the way, they already have had a generational run, and you probably missed it. Did you load up in March 2009? Did you load up in October of last year?
Piling on right now is exactly when the fools rush in. Forget Goldman. You know they fleece their clients. Just because you aren't a client doesn't mean they're not out to use you, too.
The markets didn't rally on the Goldman report. They shrugged it off as mere public relations, perhaps to defray that conversation about the firm playing its clients like puppets.
What drove markets last week was China. There are increasing worries that the Chinese economy may be slowing more than anticipated. If that is the case, if Chinese GDP growth slows to below 7.5%, global markets will cool down. If its GDP growth falls to 5%, or lower, global markets could crash.
Yes, I mean crash, as in, drop 50% in short order.
"The prospects for future returns in equities relative to bonds are as good as they have been in a generation," Chief Global Equity Strategist Peter Oppenheimer wrote in the Goldman Sachs report, "The Long Good Buy; the Case for Equities." "Given current valuations, we think it's time to say a "long goodbye' to bonds, and embrace the "long good buy' for equities as we expect them to embark on an upward trend over the next few years."
The report's main focus is that when you compare the price and future returns of stocks to bonds, stocks are a much better deal. Inflation concerns are threatening the bull market in bonds, and a Treasury sell-off has pushed up yields.
The 10-year Treasury yield has risen more than 30 basis points (0.3 percentage point) in a week to close to 2.4%. The 10-year Treasury yield hit a record low of 1.67% in September last year.
"We would expect the early rises in bond yields to be positive for equity prices as they both become a reflection of rising growth and inflationary expectations, and could expect some equity re-rating in the initial stages of rising yields," Oppenheimer wrote in the report.
With Goldman Sachs' endorsement to buy stocks, investors following their call could push the market higher than the 12% gains netted already this year.