Charts point to big buying opportunity for Exxon Mobil

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Volatility has crept back into the market, and energy stocks are reeling.

The energy sector has fallen 10 percent this month as oil broke below $60 for the first time this year and the Dow and S&P 500 dance along the lines of a correction. According to one technician, the sell-off is presenting an attractive buying opportunity for the biggest name in the group: Exxon Mobil.

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Don’t be fooled by the ‘stocks are cheap now’ argument. They’re not

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The stock correction, while dramatic, hasn’t really done a whole lot to make the market look more affordable.

In fact, valuations remain high by historical standards when looking over five- and 10-year periods. Normally, investors will go bargain-hunting when the market saw as sharp a dive as it has during February, but low-priced sectors are still hard to find.

As a group, the S&P 500 has fallen from trading at more than 18 times forward earnings to 16.3 times as of Friday. While that gets the index closer to its normal level, that still is a shade above the five-year average of 16 and considerably above the 10-year standard of 14.3, according to FactSet.

Looking inside the index, six of the 10 sectors are trading below the five-year average, with energy the only one meaningfully under, while only one is below the 10-year norm. (The real estate sector is too recent to track its history.)

While the correction has brought valuations more in line, most strategists aren’t recommending using the metric as a guide for buying.

“On a valuation basis, concerns remain,” John Stoltzfus, chief investment strategist at Oppenheimer Asset Management, said in a note to clients. “Valuations aren’t cheap though we’d suggest that they aren’t terribly rich considering six quarters of consecutive earnings growth as well as the relative valuations of stocks and bonds against prospects we see for reflation versus worrisome inflation.”

The comments reflect a growing dilemma in the markets: How do prices line up with high expectations for earnings balanced against worries over inflation?

This bull market that began 10 years ago next month has been dependent on what strategists call “multiple expansion” — the willingness of investors to pay higher prices compared with earnings, fueled by expectations that growth will continue.

Price-to-earnings sat a little above 10 in March 2009 and has been on a steady trek higher since around October 2011.

Valuations “have improved meaningfully with the recent decline in equity prices and improvement in [earnings] expectations,” said Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets. However, “multiple expansion is unlikely with Fed tightening ramping up and given the late stage of the bull market.”

So rather than just looking for low multiples, the best bet for investors could be to find sectors that suffered the most during the correction.

Stoltzfus calls the group “babies thrown out with the bathwater” and advised clients to “stay tuned” for opportunities that will arise as market volatility continues.

Sam Stovall, the chief investment strategist at CFRA, advises a similar approach, looking for the sectors that took the biggest beating during the sell-off and drilling down for opportunities. Specifically, he said market history since 1990 shows that the three sectors and 12 sub-industries that lose the most during corrections will outperform in the six months ahead.

In this case, that means energy, health care and materials among broad sectors, while the three worst-performing sub-industries have been semiconductors, life and health insurance, and a tie between health care supplies and oil and gas exploration and production. For instance, though materials are still slightly expensive compared with historical norms, the sector’s 10.6 percent loss during the correction makes it attractive.

“Due to the swiftness of the sell-off, history says we should expect a quicker conclusion and more rapid recovery than normal,” Stovall said in a note.

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While Uber Invests In Lobbying And AI, Drivers Are Fighting For Decent Pay

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For almost nine years, Uber has drawn attention and business with its neoteric solutions and rule-breaking style. Along the way, it’s also drawn plenty of public criticism.

For example, Uber has gained an international spotlight for using special kinds of software to gouge riders and track them after drop-off, to spy on and manipulate competitors, and to circumvent authorities. Regulators have questioned whether it’s a public nuisance, or clogging our streets, or has mishandled breaches of user data, or failed to protect and perform sufficient background checks on its drivers, a (proportionately tiny) number of whom later committed rape or murder.

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Lots of Russians want to invest in bitcoin but we believe it’s a bubble, wealth fund chief says

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A panel of fund managers have given their tips on where to find pockets of value in the market — and what assets investors should avoid.

The cryptocurrency bitcoin soon popped up in the discussion.

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Is The Stock Market Overvalued?

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There’s a great debate on Wall Street regarding the stock market’s valuation right now. The market has soared since the historic 2009 low. Additionally, this is now the longest period in history we have not had a 5% decline in the S&P 500. That is leading many people to question whether or not the market is overvalued as we make our way into 2018.

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Now is the best time to invest in bitcoin, says digital currency hedge-fund manager

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Market watchers should invest in bitcoin now that prices are down, says BK Capital Management founder Brian Kelly.

“Now, when everyone is saying … it’s over, that’s it, bitcoin is dead, for the 175th time. Now’s the time you start looking at it, on the buy side,” Kelly, portfolio manager of the BKCM Digital Asset Fund, told CNBC on “Fast Money” Tuesday.

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Social investing and other hot topics at the world’s biggest ETF conference

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The Inside ETFs Conference, one of the largest gatherings of investment advisers in the world, begins Monday.

Nearly 2,500 participants are expected in Hollywood, Florida, for four days to debate the future of investing in general and dissect the enormous momentum behind exchange-traded funds.

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Whether Falling Dollar Is Good News or Bad

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Enthusiasm for a weaker dollar turned to something less for the market today as the S&P 500 and Nasdaq finished in the red.
The S&P 500 dipped 0.1%, to 2837.54, while the Nasdaq Composite fell 0.6%, to 7415.06. The Dow Jones Industrial Average rose 41.31 points, or 0.2%, to 26,252.12. The U.S. Dollar Index fell 1%, to $89.21, its lowest in three years.

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Direct foreign investments in the economy of the Republic of Moldova

After the proclamation of the independence of the republic and the beginning of economic reforms in order to ensure the transition to markets, the economy and government began to pay special attention to attracting investment in the country’s economy. The legislative basis for this was the Law on Foreign Investments. It was adopted by Parliament in 1992. Later, in 2004, the Law on Investments in Entrepreneurship was adopted.

Over the past ten years, the government has taken steps to attract direct investment in the economy of the republic. Due to this, in the last decade foreign direct investments in the economy of Moldova, including in absolute volume, and in the specific weight in the domestic gross product. In 2009, foreign direct investment accounted for about 1.6% of Moldova’s GDP.

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Foreign direct investment in Moldova grew by a quarter

242718The net inflow of foreign direct investment to Moldova in the first quarter of 2017 amounted to 40.2 million dollars, an increase of 24% compared to the same period last year.

This was reported by the Ministry of Economy and Infrastructure, noting that in January-March this year. net acquisition of financial assets amounted to $ 1.7 million, and a net commitment of $ 41.9 million.

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