Archives for September 5, 2019

Americans are trying to get Denmark’s negative-interest mortgages

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Two weeks ago Jyske Bank, Denmark’s third-largest bank, shocked the world by offering mortgages with a negative interest rate. Put simply, the bank would effectively pay customers to borrow money. It’s a bit more complicated than that, however, as borrowers have to pay fees that offset the savings.

The news got loads of attention, as people struggled to wrap their heads around being paid for something they are supposed to be purchasing. Consumers around the world wanted in on the action.

The weekend following the negative mortgages announcement, Jyske Bank received 80-90 inquiries from Americans who wanted these viral mortgages.

It’s all been rather amusing for Jyske Bank and its housing economist Mikkel Høegh, who has had to deal with all the attention.

“What I have said to the Americans is that they have to have a Danish property to get such a loan,” Høegh told Yahoo Finance in an email. “Some of the Americans then asked if I could help them buying a property in Denmark. I can’t with that but we can help them with the funding if they get the house.”

Jyske Bank has had to do a lot of clarifying; there’s a widespread misconception that the bank is actually paying borrowers to take their money. First of all, the bank is not actually paying anyone; it is simply forgiving part of the loan each time a payment is made. A mortgage borrower is likely to end up paying Jyske back a little more than they borrowed, factoring in fees and charges associated with arranging the mortgage loan.

And the bank can afford to do this without losing money because it borrows at negative interest rates as well.

“The experience has been quite good,” Høegh told Yahoo Finance in an email. “Many people like to hear about the loans and apply for them.” Høegh added that the country was amidst a historic refinancing of mortgages. Mortgage debt in Denmark increased in 88 of 98 municipalities, according to Denmark’s national bank, with most customers choosing fixed rates.

How it works

Denmark has had low interest rates for a long time, and the country’s banking system has a closer than normal relationship between borrowers and investors, facilitated by banks.

Because interest rates have gone down and the prices of mortgage bonds have gone up for investors, those rates can be passed on to borrowers — creating negative mortgages if they’re low enough.

The fact that banks and investors are willing to invest with negative returns is not necessarily a good thing, because it shows they would rather take a small loss than lose more elsewhere, because they view the economy as less-than-healthy. Though negative interest rates aren’t new in Europe, they are breaking new ground, from these types of mortgages to Germany selling a negative-yielding 30-year bond for the first time in August.

Despite being in “historic remortgaging,” Høegh said the negative interest rates don’t actually make it any easier for home buyers to get a loan, but makes it easier to get a bigger loan – a lower rate means a higher disposable budget.

“People find the new loans very attractive, but I don’t think that it is a big surprise for them,” said Høegh. “The most surprising thing is that de-link between the real estate prices and the interest rate is in these years less significant.”

In other words, a flurry of borrowing and higher-value loans hasn’t had a big effect on housing prices, even though many of these loans are used to buy property or renovate.

Nordea, another bank in Denmark that began offering zero-interest 30-year loans, hasn’t seen much of a change, on the other hand, perhaps illustrating that despite global coverage, it hasn’t had much of an effect.

“We don’t think that anything has changed,” said Lise Bergmann, housing economist and chief analyst at Nordea. “The investor interest is more or less the same as before the news coverage.”

Looking at a chart regarding new loans provided to Yahoo Finance by Jyske Bank, the answer is probably somewhere in the middle. There has, indeed, been a surge in new loans this summer, but on a 20-plus year chart, it’s not as breathtaking as one might expect from a negative-interest mortgage.

College graduates who choose this major could earn over $100,000

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Looking for a college major that will help squash your student loan debt?

Consider electrical engineering.

Recent graduates in that field are earning the highest median annual salary — $72,600, according to the National Center for Education Statistics.

Longer term, electrical engineers earn a median salary of $99,070, according to data from the Bureau of Labor Statistics.

“If you were to get a doctorate, you’d get higher pay but you’re incurring more debt,” said Kyle Kensing, online content editor at CareerCast. The job hunting website analyzed employment data from the BLS.

“For electrical engineers, making around $73,000 right out of the gate is really impressive,” Kensing said.

Expect to fight hard to get your foot in the door, though.

The unemployment rate is only 3% for new electrical engineering graduates, which suggests that competition for open posts is tough, CareerCast found.

“You’ll end up miserable if you don’t like it, and the prospects aren’t great if you don’t have an aptitude for it,” said Kensing. “I would recommend considering a double major or a minor in something you’re passionate about, but get a degree in something a little more stable.”

Here are the other majors that offer attractive employment prospects upon graduation.

Computer and information systems

Whether your plan is to become a software developer or you hope to build a career in cybersecurity, you can’t go wrong with a major in computer and information systems.

Recent graduates with bachelor’s degrees in this field have median annual earnings of $65,400, according to the National Center for Education Statistics.

Hiring prospects are looking strong for careers in this field.

For instance, information security analysts earn a median salary of $98,350, according to the Bureau of Labor Statistics. These jobs are expected to grow by 32% from 2018 to 2028.

Median salaries exceed the $100,000 mark for software engineers and application software developers, the bureau found.

Finance and accounting

Accounting majors who just received their degree are starting at a median salary of $57,700, while finance majors are making $63,700, according to the National Center for Education Statistics.

Both disciplines pay off if you stick with them.

Financial advisors have a median pay of $88,890 per year, while accountants and auditors have a median salary of $70,500, the BLS found.

Marketing

Newly minted graduates with a bachelor’s in marketing start off with a median salary of $50,400, the National Center for Education Statistics found.

However, there’s plenty of potential. The median annual pay for advertising, promotions and marketing managers is $132,620, according to the BLS.

Jobs in this discipline are expected to grow by about 8% from 2018 to 2028 — beating the average growth rate of 5% for all occupations, the BLS found.

“Marketing is an alternative route and a bit of a deviation from the other degree programs we found in this report,” said Kensing.

Stocks to Watch: Eton Pharmaceutcials Inc (ETON)

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Looking at the recent signals on shares of Eton Pharmaceutcials Inc (ETON), we can see that the short-term MACD indicator is presently pointing to a Sell. The MACD is typically used to measure bullish or bearish price movements. The MACD signal direction is currently reading Strongest. Switching to another short-term indicator, we have noted that the current 7-day average directional indicator is Sell. This signal may be used to determine the market trend. The 7-day average directional direction is currently Weakest. This signal indicates whether the Buy or Sell signal is getting stronger or weakening, or whether the Hold is leaning towards a Buy or Sell. The 7-day directional strength is Weak. This trend strength indicator measures the signal based on historical performance where minimum would indicate the weakest, and maximum would represent the strongest.

Investors might be looking to rebuild the portfolio as we move into the second half of the year. New investors can be tempted to try to maximize returns by owning one specific sector or be exposed to a fairly large single investment. By diversifying the portfolio, investors might be able to protect themselves from a sudden move against the position. Finding the correct portfolio balance is how many investors choose to approach the markets. This may take some time to master, and there may be some bumps along the way. Investors managing their own money may want to make sure that they know exactly what stocks are in the portfolio at all times. Keeping tabs on portfolio performance can also be a good way to make sure that it is weighted properly.

Investors are often watching stock price support and resistance levels. The support is a level where shares may see a rebound after they have fallen. If the stock price manages to break through the first support level, the attention may shift to the second level of support. The resistance is the opposite of support. As a stock rises, it may see a retreat once it touches a certain level of resistance. After a recent look, the stock’s first resistance level is 5.71. On the other side, investors may be taking note of the first support level which is currently 5.36.

Looking further, we can see that the current 9 day MACD for Eton Pharmaceutcials Inc (ETON) has been noted at -0.13. This value represents the difference between a short-term and a long-term moving average. A reading above zero may offer a bullish signal, and a value below zero may indicate a bearish signal. Going a little further, we can see that the difference between the most recent close and the close one month ago is presently -0.65. This represents a percent change of -10.42% over that period of time. Taking a look back to the start of the calendar year, we can see that the price change has been noted at -0.53. Investors may be trying to gauge which way company shares will trend in the second half of the calendar year. As companies start reporting quarterly earnings, everyone will be focused on how the actual numbers stack up against analyst estimates. An earnings beat may prod company shares higher, while a miss may stall momentum.

Shares of Eton Pharmaceutcials Inc (ETON) currently have a standard deviation of +1.71. Standard deviation is defined as a measure of the dispersion from the mean in regards to a data set. When dealing with financial instruments, the standard deviation is applied to the annual rate of return to help gauge the volatility of a specific investment. Tracking the standard deviation may help investors with trying to project if a stock is primed for a major move. The stock’s current pivot is 5.47. The pivot point is frequently used as a trend indicator. The pivot is the average of the close, low, and high of the prior trading period.

Investors often have to make the decision of how aggressive they are going to invest. Some investors looking to make a quick dollar may jump in head first without a plan. This can be dangerous for the health of the portfolio in the long-term. Taking a chance on a risky stock may provide high returns, but investors often need to calculate whether the risk is worth the reward. Managing that risk in turbulent markets may help keep the average investor afloat when the markets inevitably turn sour for an extended period. Doing all the necessary stock research may include keeping a close tab on technicals, fundamentals, relevant economic data, and earnings reports. Investors may have to find a way to keep the rational side from being consumed by irrational behavior when studying the markets.

Stocks to Watch: Motorola Solutions (MSI)

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Interested investors might be taking a look at the medium range signals for Motorola Solutions (MSI). The reading from the 40-day commodity channel index is currently Buy. The CCI indicator is mainly used to identify oversold and overbought levels. The signal direction is Weakest.

Investors may be combing through all the latest earnings reports and trying to make sense of all the numbers. With lots of information readily available, investors may be searching for that next batch of stocks to add to the portfolio. Finding high quality stocks may be at the top of the investor’s checklist. Once high quality stocks are spotted, the investor may be then looking for bargains among those stocks. Many investors will look for stocks that have displayed consistent earnings growth over an extended period of time. When a company drastically over performs for a quarter, investors may be quick to investigate. The same things may be done if a company severely underperforms compared to projections.

Shifting to the 50-day moving average vs price signal, the reading is measured at Buy for Motorola Solutions (MSI). This indicator is used to watch price changes. After a recent look, the signal strength is Soft, and the signal direction is Weakest.

Investors may also be interested in following other technical signals. Checking on the 50-day parabolic time/price signal, we can see the signal is presently Buy. The parabolic strength is Weak, and the direction is Weakest.

Investors may be analyzing the portfolio as we continue to move closer to the end of the year. Studying first half results may assist to identify trades that panned out, and those that didn’t. Keeping tabs on pervious trade outcomes may be a good way to accurately see what actually happened. It may be necessary to dig a little deeper to try and figure out why certain trades worked, and why others did not. Many investors may feel like they have missed the boat, and they may be wondering if stocks will see increased momentum closing out the year. Attaining comprehensive knowledge of the markets may take years to truly figure out. Combining technical analysis and tracking fundamentals may help the investor see the complete picture and develop confidence for trading into the future. Being able to sift through the endless sea of information may take some perseverance and extreme focus.

Many investors will often want to widen the focus when studying equities. Let us now take a look at some longer term technical indicators. Motorola Solutions (MSI) currently has a 60-day commodity channel index of Buy. The CCI indicator is typically used to scope out overbought and oversold levels. The direction is presently Weakest.

Changing lanes, the 100-day moving average verse price signal is Buy for Motorola Solutions (MSI). The 100-day MA verse price strength is Strong, and the direction of the signal is Weakest.

When deciding how to best approach the stock market, individual investors may need to figure out what their time horizon is going to be. Short-term traders may only be looking to hold stocks for a short period in order to capitalize on fluctuations. Longer-term investors may be looking at more of a buy and hold strategy, and they may not be very concerned with the day to day shifts of a stock’s price. Accumulating as much knowledge as possible about specific stocks and the markets in general can help the investor prepare for success. Because there is no magic strategy that can be employed to guarantee profits, investors may need to evaluate multiple methods before choosing which one to pursue.

Stocks to Watch: Shiloh Inds Inc (SHLO)

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Looking at the recent signals on shares of Shiloh Inds Inc (SHLO), we can see that the short-term MACD indicator is presently pointing to a Sell. The MACD is typically used to measure bullish or bearish price movements. The MACD signal direction is currently reading Strongest. Switching to another short-term indicator, we have noted that the current 7-day average directional indicator is Buy. This signal may be used to determine the market trend. The 7-day average directional direction is currently Strengthening. This signal indicates whether the Buy or Sell signal is getting stronger or weakening, or whether the Hold is leaning towards a Buy or Sell. The 7-day directional strength is Weak. This trend strength indicator measures the signal based on historical performance where minimum would indicate the weakest, and maximum would represent the strongest.

Investors might be looking to rebuild the portfolio as we move into the second half of the year. New investors can be tempted to try to maximize returns by owning one specific sector or be exposed to a fairly large single investment. By diversifying the portfolio, investors might be able to protect themselves from a sudden move against the position. Finding the correct portfolio balance is how many investors choose to approach the markets. This may take some time to master, and there may be some bumps along the way. Investors managing their own money may want to make sure that they know exactly what stocks are in the portfolio at all times. Keeping tabs on portfolio performance can also be a good way to make sure that it is weighted properly.

Investors are often watching stock price support and resistance levels. The support is a level where shares may see a rebound after they have fallen. If the stock price manages to break through the first support level, the attention may shift to the second level of support. The resistance is the opposite of support. As a stock rises, it may see a retreat once it touches a certain level of resistance. After a recent look, the stock’s first resistance level is 4.46. On the other side, investors may be taking note of the first support level which is currently 4.04.

Looking further, we can see that the current 9 day MACD for Shiloh Inds Inc (SHLO) has been noted at -0.05. This value represents the difference between a short-term and a long-term moving average. A reading above zero may offer a bullish signal, and a value below zero may indicate a bearish signal. Going a little further, we can see that the difference between the most recent close and the close one month ago is presently -1. This represents a percent change of -19.31% over that period of time. Taking a look back to the start of the calendar year, we can see that the price change has been noted at -1.65. Investors may be trying to gauge which way company shares will trend in the second half of the calendar year. As companies start reporting quarterly earnings, everyone will be focused on how the actual numbers stack up against analyst estimates. An earnings beat may prod company shares higher, while a miss may stall momentum.

Shares of Shiloh Inds Inc (SHLO) currently have a standard deviation of -1.09. Standard deviation is defined as a measure of the dispersion from the mean in regards to a data set. When dealing with financial instruments, the standard deviation is applied to the annual rate of return to help gauge the volatility of a specific investment. Tracking the standard deviation may help investors with trying to project if a stock is primed for a major move. The stock’s current pivot is 4.32. The pivot point is frequently used as a trend indicator. The pivot is the average of the close, low, and high of the prior trading period.

Investors often have to make the decision of how aggressive they are going to invest. Some investors looking to make a quick dollar may jump in head first without a plan. This can be dangerous for the health of the portfolio in the long-term. Taking a chance on a risky stock may provide high returns, but investors often need to calculate whether the risk is worth the reward. Managing that risk in turbulent markets may help keep the average investor afloat when the markets inevitably turn sour for an extended period. Doing all the necessary stock research may include keeping a close tab on technicals, fundamentals, relevant economic data, and earnings reports. Investors may have to find a way to keep the rational side from being consumed by irrational behavior when studying the markets.

Stocks to Watch: Citizens Financial Corp [Wv] (CIWV)

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Tracking shares of Citizens Financial Corp Wv, we have noted that Span A is presently above Span B. Traders following this signal will be looking for signs of a bullish stock price shift.

Novice investors might be striving to create a trading strategy that produces results in the equity market. Once all the research is complete and the stocks are picked, they may need to decide what kind of time frame they will be working with in terms of buying and selling. Some investors will be making longer-term term plays, and others will be trying to make shorter-term moves. At some point, every investor will have to decide when to sell a winner and when to cut loose a loser. This can be one of the most difficult decisions to make. Investors may find it really hard to sell an underperforming stock when they still believe that it will turn around and move to profit. Waiting around for a turn around that may never come can lead to the undoing of a well crafted portfolio. Regularly staying on top of the markets may allow the investor to make educated buy or sell decisions when the time comes. This may involve following major economic data, studying company fundamentals, and checking in on historical price movement and trends. Investors who are able to keep their emotions in check might find themselves in a better position than those who let emotions get the best of them.

Active traders have a wide variety of technical indicators at their disposal for completing technical stock analysis. Presently, the 14-day ATR for Citizens Financial Corp Wv is spotted at 0.22. First developed by J. Welles Wilder, the ATR may assist traders in determining if there is heightened interest in a trend, or if extreme levels may be signaling a reversal. Simply put, the ATR determines the volatility of a security over a given period of time, or the tendency of the security to move one direction or another.

Shifting gears to the Relative Strength Index, the 14-day RSI is currently sitting at 56.58, the 7-day is 54.88, and the 3-day is currently at 51.84 for Citizens Financial Corp Wv. The Relative Strength Index (RSI) is a highly popular momentum indicator used for technical analysis. The RSI can help display whether the bulls or the bears are currently strongest in the market. The RSI may be used to help spot points of reversals more accurately. The RSI was developed by J. Welles Wilder. As a general rule, an RSI reading over 70 would signal overbought conditions. A reading under 30 would indicate oversold conditions. As always, the values may need to be adjusted based on the specific stock and market. RSI can also be a valuable tool for trying to spot larger market turns.

Some investors may find the Williams Percent Range or Williams %R as a helpful technical indicator. Presently, Citizens Financial Corp Wv’s Williams Percent Range or 14 day Williams %R is resting at -47.89. Values can range from 0 to -100. A reading between -80 to -100 may be typically viewed as strong oversold territory. A value between 0 to -20 would represent a strong overbought condition. As a momentum indicator, the Williams R% may be used with other technicals to help define a specific trend.

Taking a peek at some Moving Averages, the 200-day is at 12.62, the 50-day is 14.77, and the 7-day is sitting at 15.50. The moving average is a popular tool among technical stock analysts. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader figure out proper support and resistance levels for the stock.

Traders are keeping a keen eye on shares of Citizens Financial Corp Wv. The Average Directional Index or ADX may prove to be an important tool for trading and investing. The ADX is a technical indicator developed by J. Welles Wilder used to determine the strength of a trend. The ADX is often used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of the trend. Presently, the 14-day ADX is resting at 33.69. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend.

Stock market investors may be well aware of how turbulent the investing climate can be. Markets might be surging to new highs leaving the average investor to wonder what will happen next. When everything is going higher in the stock market, it may seem as though every pick is going to be a winner. Conversely, when things are going down, investors may be cursing the day they ever entered the markets. These ups and downs are a normal part of investing in the stock market. Having a well thought out investing plan may help ease the burden of day to day volatility. Many successful investors and traders will preach the wonders of sticking to an outlined plan. It may take some time to actually realize how well the plan is working. If after some time the results continue to be sub-par, then it may be time to devise a different plan.