We see what we believe are some great opportunities right now in Healthcare -- and we like the sector overall. Argus Director of Research Jim Kelleher, CFA, recently completed his quarterly sector review and raised Healthcare sector to Over-Weight from Market-Weight. The healthcare environment is undergoing rapid transitions, and we now see an unfolding period of significant promise and opportunity. Our newly-favored stance is based on resumption of deferred medical procedures and significant new quality-of-life drugs and treatments. The category is broad and has underperformed the S&P 500 over the past year. The Healthcare sector ETF (XLV) is up 15% over the past year compared to a gain of 31% for the S&P 500. We see opportunity here to pick up some steady companies, with big brands and solid financials. These companies are science-focused and enhance lives. They are innovators. In our list this week, we look across several subsectors within the Healthcare sector and pull out some leaders we like. These stocks also are included in our Focus List and Model Portfolios, as noted below.

The benchmark U.S. 10-year Treasury bond yield is near 4.1%. The yield tipped over the key 5% threshold in mid-October, its highest rate in nearly 16 years, before retreating to current levels. The current yield is down almost 20% from the October peak. The retreat is now the interesting part. The Federal Reserve has all but said that it is done raising interest rates for this tightening cycle. Economists and Wall Street are eagerly waiting hints that the Fed's "pivot" might translate into the fed funds rate actually starting to inch down. But Chairman Powell is maintaining a cautious tone. Argus' Fed watcher, Kevin Heal, has remained equally steady with his projection that the first rate cut is not likely until the second half of this year. The U.K. is seeing a similar trend, with its 10-year benchmark bond yield at 3.9%. Sentiment there is also growing that higher rates might be elevated for longer than expected, as the U.K. has experienced rampant inflation over the past few years. Elsewhere, political uncertainty in South Africa and Brazil are keeping those sovereign debt interest rates near 10%. Russian debt is above 12%, up 300 basis points from a year ago, as the conflict with Ukraine drags on. At the other extreme among the biggest nations, yields for Japanese debt remain low at 0.7%. From a portfolio perspective, we would avoid over-weighting foreign-government fixed-income securities at this time, given their volatile yields, sovereign risks, and repatriation issues.

Stocks closed higher on Thursday as investors digested new economic data. The January ISM Manufacturing PMI index registered a reading of 49.1, up from 47.1 in December, with growth in new orders, production, and prices, while backlogs, employment and inventories contracted. The S&P Global's reading of 50.7 is up from 47.9 in December, with an increase in new orders, and both input and output prices and employment increased fractionally. U.S. construction spending rose 0.9% in December, following a 0.4% increase in November. Meta Platforms (META) reported after the close and was up more than 14% within an hour after releasing results. Likewise, Amazon.com (AMZN) rose nearly 13%. The S&P 500 closed up 1.3%, the Dow 0.1% and the Nasdaq gained 1.3%. Crude oil fell to just below $73 per barrel, while gold was up $5 to $2072 per ounce.

Stocks headed lower on Thursday morning as investor digested new economic data. CPI was hotter than expected. In December, headline CPI rose 0.3%, up from 0.1% in November and ahead of the expected 0.2% increase. This brings the annual rate to 3.4%, up from 3.1% last month. Energy prices rose 0.4% and food prices rose 0.2%. Initial jobless claims were 202,000 this week, falling 1,000 from the previous week's revised level and the lowest since mid-October. Ongoing unemployment was 1,834,000, down 34,000 from the prior week. In other news, eleven bitcoin ETFs began trading on Thursday. The Dow fell 0.7%, the S&P 500 lost 0.8% and the Nasdaq was down 0.9%. Crude oil traded above $73 per barrel, while gold rose $2 to $2030 per ounce.

Global stocks are picking up the pace. While the S&P 500 has jumped almost 11% in the past month, the EAFA index of large- and mid-cap stocks based in countries other than the U.S. and Canada has risen 10%. Over the past six years, the performance gap has been wider, with the S&P 500 advancing 12% compared to a 7% gain for the EAFE. But the underperformance has given global stocks a valuation advantage, particularly in the area of dividends. The EAFE dividend yield of 2.4% is 80 basis points higher than the comparable S&P 500 dividend yield. We think global dividend stocks now offer opportunity, particularly given the endless speculation over the direction of interest rates in the U.S., which has created market-timing headaches for equity income investors. Those investors have endured recent wide swings in prices for rate-sensitive equity sectors such as Utilities, REITs and MLPs. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to volatile U.S interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also a number of positives in this asset class for U.S. investors, including a wide selection of companies that pay dividends, robust industry diversification, and, as we have mentioned, higher yields and lower valuations. Argus has recently boosted its global coverage, and recommends the following international dividend stocks, each of which has at least a long-term HOLD rating from an Argus analyst.

Stocks were mixed on Wednesday morning as investors weighed earnings from Target and new housing market data. Target shares rose more than 3% after the retailer reported strong second-quarter earnings; however, sales fell and management lowered its full-year earnings guidance, citing the impact of inflation on consumer spending. Housing market data was positive. The Commerce Department said that overall housing starts rose 3.9% in July to an annualized 1.452 million units, above the Reuters consensus forecast of 1.448 million. Starts for single-family homes rose at an even stronger 6.7% rate. The Dow rose 0.3%, the S&P rose 0.1%, and the Nasdaq fell 0.2%. Crude oil traded near $81 per barrel, while gold fell slightly to $1934 per ounce.

Market sentiment remains tepid, at best, which is no surprise based on the yearlong neutral price action. There are hundreds of sentiment indicators, with more and more coming out each year. And there are big differences between these indicators -- making some more valuable than others. As we see it, market-type polls are the most numerous but certainly not the most valuable, as they reflect investor attitudes toward the overall market but not necessarily about actual positionings. Indicators that show what investors are doing with their money (positionings) are the most valuable, in our opinion.

In this edition, global oil inventories face future; feeling the internet's backbone; and initiating coverage of Qualys; and Lithium Americas, Bausch & Lomb and Macy's.

In this edition, railroads may be in for a bumpy ride; ESG has some opportunities; biotechs innovate; and Constellation Brands, Autodesk, and Tencent.

In this edition, railroads may be in for a bumpy ride; ESG has some opportunities; biotechs innovate; and Constellation Brands, Autodesk, and Tencent.

Stocks finished sharply lower on Thursday after giving up early gains. Investors weighed earnings from a range of major companies, including Disney, PepsiCo, and AbbVie. On the employment front, the Labor Department said that first-time claims for state unemployment benefits rose by 13,000 to 196,000 for the week ended February 4, above the Reuters consensus forecast of 190,000. Continuing claims rose by 38,000 to 1.688 million. The Dow fell 0.73%, the S&P 0.88%, and the Nasdaq 1.02%. Crude oil traded near $78 per barrel, while gold fell $18 to $1860 per ounce.

Global stocks are on a run. While the S&P 500 has jumped almost 8% year-to-date, The EAFA Index of large- and mid-cap stocks based in countries other than the U.S. and Canada has risen 9%. Over the past six months, foreign stocks also have outperformed, climbing 11% versus a 1% decline by the U.S. market. The story is different over the past five years, as the S&P 500 has risen 50% and global stocks have fallen 1%. Even so, the long outperformance has given global stocks a valuation advantage, particularly in the area of dividends. The EAFE dividend yield of 2.7% is 100 basis points higher than the comparable S&P 500 dividend yield. We think global dividend stocks now offer opportunity, particularly given the endless speculation over the direction of interest rates in the U.S., which has created market-timing headaches for equity income investors - who have endured recent wide swings in prices for rate-sensitive equity sectors such as utilities, REITs and MLPs. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to volatile U.S. interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also a number of positives in this asset class for U.S. investors, including a wide selection, robust industry diversification, and, as we have mentioned, higher yields and lower valuations. Argus recently boosted its global coverage, and recommends the following international dividend stocks, each of which has at least a long-term BUY rating from an Argus analyst. This list of approximately 25 companies offers exposure to eight of the 11 major industrial sectors. The list includes companies from 10 countries.

As global markets struggle to recover from the impacts of rising inflation and the Russian invasion of Ukraine, one thing has not changed: U.S. stocks are more expensive than global stocks on numerous valuation metrics. Consider P/E ratios. The P/E ratio on the S&P 500 is 18, above the global average of 12 and well above the 6-11 average P/Es for emerging markets stocks. A review of yields tells a similar story. The current dividend yield for the S&P 500 is 1.7%, versus the global average of 3.8% and Asian, Australian, and Latin American yields of 5%-12%. The foreign region that does not completely fit the pattern is the Middle East. The average P/E on a Saudi Arabian stock is a high 17.3 and the yield is a low 1.9%. This can be blamed on high oil prices. One reason investors generally are willing to pay a higher price for North American securities is the transparency of the U.S. financial system. What is more, global returns can be volatile across individual countries, given currency, security, political, and geopolitical risks; indeed, U.S. stocks are outperformed EAFE in 2022 (as well as over the past five years). Even so, we recommend that growth investors have approximately 5%-10% of their equity allocations in international stocks to take advantage of the value, and we have been adding global stocks to our universe of coverage.

Monday Tee Up: Inflation and Earning Season Kickoff

Dividends are supposed to lend stability to a portfolio. However, U.S.-based income investors have experienced a high degree of volatility in recent years, as the Federal Reserve since 2018 has embarked on two campaigns to raise interest rates, sandwiched around a desperate program that lowered the federal funds rate to zero in order to help the economy recover from the pandemic. The endless speculation over the direction of rates has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity sectors such as Utilities, REITs and MLPs. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to volatile U.S interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also a number of positives in this asset class for U.S. investors, including a wide selection, robust industry diversification, higher yields, and lower valuations. Argus has recently boosted its global coverage, and recommends the following international dividend stocks. Note this list of 25 companies offers exposure to eight of the 11 major sectors. The list includes companies from 10 countries.

Stocks fell on Thursday morning, led by declines in the Energy and Consumer Staples sectors. First-time unemployment claims rose by 6,000 to 260,000 for the week ended July 30 and were slightly above the consensus forecast. Continuing claims also rose by 48,000 to 1.416 million. On the earnings front, Conoco posted better-than expected second-quarter results and said that it would substantially boost returns to shareholders through dividends and buybacks. The Dow fell 0.3%, the S&P 0.2%, and the Nasdaq 0.3%. Crude oil fell more than 2% to $88.50 per barrel, while gold jumped $27 to $1804 per ounce.

In the pharmaceutical industry, GSK ranks as one of the largest firms by total sales. The company wields its might across several therapeutic classes, including respiratory, cancer, and antiviral, as well as vaccines. GSK uses joint ventures to gain additional scale in certain markets like HIV.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In 2018, the U.S. Federal Reserve embarked on an aggressive campaign to raise interest rates, causing Treasury yields to swoop and dive, resulting in a wild ride for supposedly stable U.S. high-income equities. The central bank reversed course in 2019, before moving to the sidelines. In 2020, due to the coronavirus, the Fed is back in action, cutting rates, backstopping numerous financial markets and pledging to do "whatever it takes" and "for as long as necessary." Also due to COVID-19, many U.S. companies have cut back or eliminated their dividends in order to preserve capital during the pandemic. The endless speculation over the timing of the Fed's next moves has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity classes such as Utilities, REITs and MLPs -- even as generally positive industry fundamentals remained largely intact. In our view, investing in international income stocks is one way to increase diversity of holdings while reducing sensitivity to the Fed's head fakes on rate policy. Investing in overseas stocks carries its own set of risks, such as currency exchange and even the potential for geo-political turmoil. But there are also lots of positives in this asset class for U.S. investors, including a wide selection, robust industry diversification, higher yields and lower valuations. Argus has boosted its global coverage, adding the following BUY-rated international dividend stocks.

Stocks were mixed on Tuesday morning as investors weighed prospects for further government stimulus measures and the approval of a coronavirus vaccine in Russia - despite the lack of standard Phase 3 testing. The Labor Department said that its producer price index rose 0.6% in July, above the Reuters consensus forecast of 0.3% and the strongest growth since October 2018. The Dow rose 0.9%, the S&P rose 0.3%, and the Nasdaq fell 0.3%. Crude oil traded near $42 per barrel, while gold dropped more than 4% to $1954 per ounce.

Stocks fell on Thursday, reversing some of Wednesday's gains amid weak employment and consumer spending data. First-time unemployment benefit claims fell from the prior week, but still totaled 3.839 million - bringing the six-week total to more than 30 million. Consumer spending also plunged a record 7.5% in March, greater than the consensus call for a 5.0% decline. Meanwhile, the Federal Reserve expanded its 'Main Street' lending program to help medium-sized businesses. The Dow fell 1.17%, the S&P 0.92%, and the Nasdaq 0.28%. Crude oil rose to nearly $19 per barrel, while gold fell $18 to $1695 per ounce.

Argus Research covers 55 leading global healthcare companies. Many of them are working on new products, vaccines and medicals supplies and equipment to help healthcare professionals treat Covid-19 patients and prevent the outbreak from spreading even further than its current trajectory projects. Argus Senior Analyst David Toung and Security Analyst Jasper Hellweg cited the following companies in the current battle.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In 2018, the Federal Reserve embarked on an aggressive campaign to raise interest rates -- causing Treasury yields to swoop and dive, resulting in a wild ride for supposedly stable U.S. high-income equities. In 2019, the Fed lowered rates, in order to restore a normal upward slope in the yield curve. And in 2020, global investors, fearing the spread of the coronavirus, have pushed rates lower still. The endless speculation over the direction of rates has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity classes such as utilities, REITs and MLPs -- even as generally positive industry fundamentals remained largely intact. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to U.S interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also many positives in this asset class for U.S. investors.

Stocks rose on Tuesday morning as investors weighed congressional testimony from Fed Chair Jerome Powell, who emphasized the continued strength of the U.S. economy while also noting the risks posed by the coronavirus. T-Mobile shares rose 10% after a federal judge approved the company's merger with Sprint, while Under Armour fell more than 16% after issuing disappointing guidance. The Dow rose 0.1%, the S&P 0.5%, and the Nasdaq 0.8%. Crude oil traded near $50 per barrel, while gold fell $12 to $1568 per ounce.

The Dow Jones Industrial Average dropped more than 600 points on Friday, as investors expressed anxiety over the outbreak of coronavirus, its potential spread, and its ultimate impact on the global economy (already slowed by trade wars). Though the infectious disease may be new, investors do have some experience with virus outbreaks over the past decades, and the results have been favorable. We identified 12 outbreaks since the AIDS crisis in 1981, and have measured the market's return in the six- and 12-month periods after the month-end during which the virus emerged. On average, the S&P 500 rose 9.3% in the first six months, and 14.2% over the full year. The steepest decline was an 11% drop after the AIDS crisis emerged, but we note that market environment also was characterized by high interest rates and high inflation. Each health scare was different, and the coronavirus has its own challenges. But scientists and healthcare officials have been quick to respond. If history is any guide -- and assuming the virus does not mutate to become more lethal or transmissible -- stocks should recover.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In 2018, the U.S. Federal Reserve embarked on an aggressive campaign to raise interest rates, causing Treasury yields to swoop and dive, resulting in a wild ride for supposedly stable U.S. high-income equities. Then the central bank reversed course in 2019, before moving to the sidelines (we shall see) in 2020. The endless speculation over the timing of the Fed's next moves has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity classes such as utilities, REITs and MLPs - even as generally positive industry fundamentals remained largely intact. In our view, investing in international income stocks is one way to increase diversity of holdings while reducing sensitivity to the Fed's head fakes on rate policy. Investing in overseas stocks carries its own set of risks, such as currency exchange and even the potential for geopolitical turmoil. But there are also lots of positives in this asset class for U.S. investors, including a wide selection, robust industry diversification, higher yields and lower valuations. Argus has recently boosted its global coverage, adding the following BUY-rated international dividend stocks.

U.S. and Chinese officials are set to sign a Phase 1 trade agreement on Wednesday. The agreement should mark a cooling of the trade war between the countries, which has been percolating for almost two years. Phase 1 elements include China's agreeing to purchase $200 billion of U.S. goods over the next two years, while the U.S. will be reducing tariffs on Chinese products. In addition, both sides will meet every six months to resolve disputes. President Trump has indicated that a complete trade deal between the countries could involve two or three phases, though no meetings or timetables have been set. There is much to like about China, which continues to grow its economy at a 6% clip and is the second-largest economy in the world in terms of total GDP. China is a $14 trillion economy and represents about 16% of the $86 trillion global economy. Thus, China is a critical contributor to overall global economic growth, even if it "only" grows 5%-6%. In fact, 6% growth in the Chinese economy today adds more to global output -- by our reckoning, 20% of incremental GDP growth this year -- than the 10% growth achieved five years ago, when China was growing faster but was smaller. We expect extraordinary growth -- in the 5%-7% range -- to continue in China for at least the next decade. Drilling deeper, we think it is important to note that, on a GDP per-capita basis, this mighty nation remains a fraction of the size of the United States. Thus, the growth going forward may be different from the growth experienced in the past decade. We are expecting a shift in focus of Chinese out of domestic infrastructure such as dams, roads, airports, rail systems and cities and into raising the living standards of its 1.4 billion people, spending on programs to lift citizens out of rural poverty, lengthening their lives and cleaning the air, among other initiatives. This growth should favor business and consumer services, as well as financial services and healthcare.

Stocks were mixed on Tuesday morning as investors weighed prospects for further government stimulus measures and the approval of a coronavirus vaccine in Russia - despite the lack of standard Phase 3 testing. The Labor Department said that its producer price index rose 0.6% in July, above the Reuters consensus forecast of 0.3% and the strongest growth since October 2018. The Dow rose 0.9%, the S&P rose 0.3%, and the Nasdaq fell 0.3%. Crude oil traded near $42 per barrel, while gold dropped more than 4% to $1954 per ounce.

Stocks fell on Thursday, reversing some of Wednesday's gains amid weak employment and consumer spending data. First-time unemployment benefit claims fell from the prior week, but still totaled 3.839 million - bringing the six-week total to more than 30 million. Consumer spending also plunged a record 7.5% in March, greater than the consensus call for a 5.0% decline. Meanwhile, the Federal Reserve expanded its 'Main Street' lending program to help medium-sized businesses. The Dow fell 1.17%, the S&P 0.92%, and the Nasdaq 0.28%. Crude oil rose to nearly $19 per barrel, while gold fell $18 to $1695 per ounce.

Argus Research covers 55 leading global healthcare companies. Many of them are working on new products, vaccines and medicals supplies and equipment to help healthcare professionals treat Covid-19 patients and prevent the outbreak from spreading even further than its current trajectory projects. Argus Senior Analyst David Toung and Security Analyst Jasper Hellweg cited the following companies in the current battle.

The Dow Jones Industrial Average dropped more than 600 points on Friday, as investors expressed anxiety over the outbreak of coronavirus, its potential spread, and its ultimate impact on the global economy (already slowed by trade wars). Though the infectious disease may be new, investors do have some experience with virus outbreaks over the past decades, and the results have been favorable. We identified 12 outbreaks since the AIDS crisis in 1981, and have measured the market's return in the six- and 12-month periods after the month-end during which the virus emerged. On average, the S&P 500 rose 9.3% in the first six months, and 14.2% over the full year. The steepest decline was an 11% drop after the AIDS crisis emerged, but we note that market environment also was characterized by high interest rates and high inflation. Each health scare was different, and the coronavirus has its own challenges. But scientists and healthcare officials have been quick to respond. If history is any guide -- and assuming the virus does not mutate to become more lethal or transmissible -- stocks should recover.

Stocks rose on Tuesday morning as investors weighed congressional testimony from Fed Chair Jerome Powell, who emphasized the continued strength of the U.S. economy while also noting the risks posed by the coronavirus. T-Mobile shares rose 10% after a federal judge approved the company's merger with Sprint, while Under Armour fell more than 16% after issuing disappointing guidance. The Dow rose 0.1%, the S&P 0.5%, and the Nasdaq 0.8%. Crude oil traded near $50 per barrel, while gold fell $12 to $1568 per ounce.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In 2018, the Federal Reserve embarked on an aggressive campaign to raise interest rates -- causing Treasury yields to swoop and dive, resulting in a wild ride for supposedly stable U.S. high-income equities. In 2019, the Fed lowered rates, in order to restore a normal upward slope in the yield curve. And in 2020, global investors, fearing the spread of the coronavirus, have pushed rates lower still. The endless speculation over the direction of rates has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity classes such as utilities, REITs and MLPs -- even as generally positive industry fundamentals remained largely intact. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to U.S interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also many positives in this asset class for U.S. investors.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In 2018, the U.S. Federal Reserve embarked on an aggressive campaign to raise interest rates, causing Treasury yields to swoop and dive, resulting in a wild ride for supposedly stable U.S. high-income equities. Then the central bank reversed course in 2019, before moving to the sidelines (we shall see) in 2020. The endless speculation over the timing of the Fed's next moves has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity classes such as utilities, REITs and MLPs - even as generally positive industry fundamentals remained largely intact. In our view, investing in international income stocks is one way to increase diversity of holdings while reducing sensitivity to the Fed's head fakes on rate policy. Investing in overseas stocks carries its own set of risks, such as currency exchange and even the potential for geopolitical turmoil. But there are also lots of positives in this asset class for U.S. investors, including a wide selection, robust industry diversification, higher yields and lower valuations. Argus has recently boosted its global coverage, adding the following BUY-rated international dividend stocks.

U.S. and Chinese officials are set to sign a Phase 1 trade agreement on Wednesday. The agreement should mark a cooling of the trade war between the countries, which has been percolating for almost two years. Phase 1 elements include China's agreeing to purchase $200 billion of U.S. goods over the next two years, while the U.S. will be reducing tariffs on Chinese products. In addition, both sides will meet every six months to resolve disputes. President Trump has indicated that a complete trade deal between the countries could involve two or three phases, though no meetings or timetables have been set. There is much to like about China, which continues to grow its economy at a 6% clip and is the second-largest economy in the world in terms of total GDP. China is a $14 trillion economy and represents about 16% of the $86 trillion global economy. Thus, China is a critical contributor to overall global economic growth, even if it "only" grows 5%-6%. In fact, 6% growth in the Chinese economy today adds more to global output -- by our reckoning, 20% of incremental GDP growth this year -- than the 10% growth achieved five years ago, when China was growing faster but was smaller. We expect extraordinary growth -- in the 5%-7% range -- to continue in China for at least the next decade. Drilling deeper, we think it is important to note that, on a GDP per-capita basis, this mighty nation remains a fraction of the size of the United States. Thus, the growth going forward may be different from the growth experienced in the past decade. We are expecting a shift in focus of Chinese out of domestic infrastructure such as dams, roads, airports, rail systems and cities and into raising the living standards of its 1.4 billion people, spending on programs to lift citizens out of rural poverty, lengthening their lives and cleaning the air, among other initiatives. This growth should favor business and consumer services, as well as financial services and healthcare.

Stocks finished flat to slightly higher on Friday, aided by optimism over a phase I trade deal with China and the potential delay of upcoming tariffs. The Dow Jones Industrial Average was flat, while the Nasdaq Composite rose 0.5% and the S&P 500 added 0.3%, closing at a record high. As third-quarter earnings announcements began to wind down in a better-than-expected fashion, stocks also maintained momentum for the week, leading to a fifth consecutive rise. The Dow was up 1.2%, the Nasdaq added 1.1%, and the S&P 500 rose 0.9%. Year-to-date gains are now 18.7% for the Dow, 27.7% for the Nasdaq and 23.4% for the S&P 500.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to volatile U.S interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also a number of positives in this segment for U.S. investors. One is a more robust selection of high-quality names. Yields also tend to be higher in overseas markets in general. And finally, valuations can be more attractive.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In 2018, the U.S. Federal Reserve embarked on an aggressive campaign to raise interest rates, causing Treasury yields to swoop and dive, resulting in a wild ride for supposedly stable U.S. high-income equities. The central bank reversed course in 2019, before moving to the sidelines. In 2020, due to the coronavirus, the Fed is back in action, cutting rates, backstopping numerous financial markets and pledging to do "whatever it takes" and "for as long as necessary." Also due to COVID-19, many U.S. companies have cut back or eliminated their dividends in order to preserve capital during the pandemic. The endless speculation over the timing of the Fed's next moves has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity classes such as Utilities, REITs and MLPs -- even as generally positive industry fundamentals remained largely intact. In our view, investing in international income stocks is one way to increase diversity of holdings while reducing sensitivity to the Fed's head fakes on rate policy. Investing in overseas stocks carries its own set of risks, such as currency exchange and even the potential for geo-political turmoil. But there are also lots of positives in this asset class for U.S. investors, including a wide selection, robust industry diversification, higher yields and lower valuations. Argus has boosted its global coverage, adding the following BUY-rated international dividend stocks.

Forget summer somnolence. August has been the most volatile month of the year on several fronts. One of our favorite measures is daily rate of change (DRC), which examines the price movement in an index or stock regardless of its direction. To calculate DRC, we average the square roots of daily changes for a specified period, as using square roots eliminates the self-cancelling effects of averaging up with down days.

Growth stocks may be outperforming, again, in 2019. But in an environment of historically low interest rates (and with the Federal Reserve seemingly poised to cut again), many investors are still searching for high levels of income, which can often be found in value stocks. When we look for attractive high-yield/value stocks at Argus, we look for low valuations on metrics such as price/earnings, price/sales, price/book, yield and price/cash flow. But we also look for companies with clean balance sheets, high levels of profitability, cash-flow generation, and an experienced management teams. We seek to avoid companies in industries that are in secular decline, or with dividend yields that are so high that the payout is clearly at risk. That said, many value companies may face a substantial near-term industry problem. That might be a retailer fending off Amazon.com; or an energy company tied to the uncertain long-term outlook for demand for fossil fuels; or a newspaper company in the digital advertising age. Some value companies, such as tobacco companies, may face ongoing legal or regulatory risks. And others may be facing problems such as over-aggressive acquisitions, patent expirations or recent earnings stumbles. Based on requests from clients, we have designed a portfolio of companies followed by Argus Research that are BUY- or HOLD-rated on a long-term (five-year) basis and have an average yield of 4.0% or higher.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. The Federal Reserve in 2018 embarked on an aggressive campaign to raise interest rates, causing Treasury yields to swoop and dive, resulting in a wild ride for supposedly stable U.S. high-income equities. The endless speculation over the timing of the Fed's rate hikes created market-timing headaches for equity income investors. They endured wide swings in prices for rate-sensitive equity classes such as utilities, REITs and MLPs - even as generally positive industry fundamentals remained largely intact. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to the Fed's head fakes on rate policy. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also lots of positives in this asset class for U.S. investors.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. The U.S. Federal Reserve in 2018 embarked on an aggressive campaign to raise interest rates, causing Treasury yields to swoop and dive, resulting in a wild ride for supposedly stable U.S. high-income equities. The endless speculation over the timing of the Fed's rate hikes created market-timing headaches for equity income investors. They endured wide swings in prices for rate-sensitive equity classes such as utilities, REITs and MLPs - even as generally positive industry fundamentals remained largely intact. In our view, investing in international income stocks is one way to increase diversity of holdings while reducing sensitivity to the Fed's head fakes on rate policy. Investing in overseas stocks carries its own set of risks, such as currency exchange and even the potential for geo-political turmoil. But there are also lots of positives in this asset class for U.S. investors, including a wide selection, robust industry diversification, higher yields and lower valuations. Argus has recently boosted its global coverage, adding BUY-rated international dividend stocks.

Stocks traded sharply lower on Friday morning on increased trade war concerns, as President Trump carried out his threat to impose additional tariffs on Chinese goods and China said that it would be forced to retaliate. Prospects for a deal between the two sides all but collapsed on Thursday, though talks were set to continue on Friday. The S&P fell 1.3%, the Dow 1.0%, and the Nasdaq 1.5%. Crude oil fell slightly to $61.50 per barrel, while gold rose $4 to $1289 per ounce.

Stocks fell sharply on Thursday morning after CNBC reported that an expected meeting between President Trump and Chinese President Xi Jinping was unlikely to take place before the two countries' trade deal deadline on March 1. In M&A news, BB&T and SunTrust agreed to combine in the largest bank merger since the financial crisis. The Dow fell 1.3%, the S&P 1.4%, and the Nasdaq 1.6%. Crude oil fell $2 to about $52 per barrel, while gold traded near $1314 per ounce.

Current Correction: Similar to Past Near-Bear Phases, not Classic Bear Markets

Forget summer somnolence. August has been the most volatile month of the year on several fronts. One of our favorite measures is daily rate of change (DRC), which examines the price movement in an index or stock regardless of its direction. To calculate DRC, we average the square roots of daily changes for a specified period, as using square roots eliminates the self-cancelling effects of averaging up with down days.

Growth stocks may be outperforming, again, in 2019. But in an environment of historically low interest rates (and with the Federal Reserve seemingly poised to cut again), many investors are still searching for high levels of income, which can often be found in value stocks. When we look for attractive high-yield/value stocks at Argus, we look for low valuations on metrics such as price/earnings, price/sales, price/book, yield and price/cash flow. But we also look for companies with clean balance sheets, high levels of profitability, cash-flow generation, and an experienced management teams. We seek to avoid companies in industries that are in secular decline, or with dividend yields that are so high that the payout is clearly at risk. That said, many value companies may face a substantial near-term industry problem. That might be a retailer fending off Amazon.com; or an energy company tied to the uncertain long-term outlook for demand for fossil fuels; or a newspaper company in the digital advertising age. Some value companies, such as tobacco companies, may face ongoing legal or regulatory risks. And others may be facing problems such as over-aggressive acquisitions, patent expirations or recent earnings stumbles. Based on requests from clients, we have designed a portfolio of companies followed by Argus Research that are BUY- or HOLD-rated on a long-term (five-year) basis and have an average yield of 4.0% or higher.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. The Federal Reserve in 2018 embarked on an aggressive campaign to raise interest rates, causing Treasury yields to swoop and dive, resulting in a wild ride for supposedly stable U.S. high-income equities. The endless speculation over the timing of the Fed's rate hikes created market-timing headaches for equity income investors. They endured wide swings in prices for rate-sensitive equity classes such as utilities, REITs and MLPs - even as generally positive industry fundamentals remained largely intact. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to the Fed's head fakes on rate policy. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also lots of positives in this asset class for U.S. investors.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. The U.S. Federal Reserve in 2018 embarked on an aggressive campaign to raise interest rates, causing Treasury yields to swoop and dive, resulting in a wild ride for supposedly stable U.S. high-income equities. The endless speculation over the timing of the Fed's rate hikes created market-timing headaches for equity income investors. They endured wide swings in prices for rate-sensitive equity classes such as utilities, REITs and MLPs - even as generally positive industry fundamentals remained largely intact. In our view, investing in international income stocks is one way to increase diversity of holdings while reducing sensitivity to the Fed's head fakes on rate policy. Investing in overseas stocks carries its own set of risks, such as currency exchange and even the potential for geo-political turmoil. But there are also lots of positives in this asset class for U.S. investors, including a wide selection, robust industry diversification, higher yields and lower valuations. Argus has recently boosted its global coverage, adding BUY-rated international dividend stocks.

Stocks traded sharply lower on Friday morning on increased trade war concerns, as President Trump carried out his threat to impose additional tariffs on Chinese goods and China said that it would be forced to retaliate. Prospects for a deal between the two sides all but collapsed on Thursday, though talks were set to continue on Friday. The S&P fell 1.3%, the Dow 1.0%, and the Nasdaq 1.5%. Crude oil fell slightly to $61.50 per barrel, while gold rose $4 to $1289 per ounce.

Stocks fell sharply on Thursday morning after CNBC reported that an expected meeting between President Trump and Chinese President Xi Jinping was unlikely to take place before the two countries' trade deal deadline on March 1. In M&A news, BB&T and SunTrust agreed to combine in the largest bank merger since the financial crisis. The Dow fell 1.3%, the S&P 1.4%, and the Nasdaq 1.6%. Crude oil fell $2 to about $52 per barrel, while gold traded near $1314 per ounce.

Trying to Right the Ship: Our Monthly Survey of the Economy, Interest Rates, and Markets

Stocks finished flat to slightly higher on Friday, aided by optimism over a phase I trade deal with China and the potential delay of upcoming tariffs. The Dow Jones Industrial Average was flat, while the Nasdaq Composite rose 0.5% and the S&P 500 added 0.3%, closing at a record high. As third-quarter earnings announcements began to wind down in a better-than-expected fashion, stocks also maintained momentum for the week, leading to a fifth consecutive rise. The Dow was up 1.2%, the Nasdaq added 1.1%, and the S&P 500 rose 0.9%. Year-to-date gains are now 18.7% for the Dow, 27.7% for the Nasdaq and 23.4% for the S&P 500.

With the stock market racing to new highs earlier this year, most mainstream investors were either looking to get aboard or stay aboard the galloping bull. As the market was lifted higher by the FAANG stocks, many investors likely became over-allocated to a couple of high risk-reward sectors. Even while riding the rally — and the recent ups and downs — some investors are considering end-of-rally strategies. Minimum volatility, or “Min Vol,” often falls into that defensive category.

Growth stocks may be outperforming in 2018 -- but in an environment of historically low interest rates, many investors are still searching for high levels of income, which can often be found in Value stocks. Over the years, the performance record has favored Growth. Since 2003, the Russell 1000 Growth Index has climbed 423%, compared to an advance of 278% for the Russell 1000 Value Index. In 10 of the 15 years of this period, Growth stocks have topped Value stocks. Still, Value is the place to achieve income. The current yield on the iShares Russell 1000 Value Index ETF is 2.2%, compared to the current yield on the iShares Russell 1000 Growth Index ETF of 1.1%. As well, sometimes the risk profile favors Value. For the past five years, the standard deviation of monthly returns for Value stocks has been 2.83%, compared to the standard deviation of monthly returns for Growth stocks of 2.93%. When we look for Value at Argus, we look for low valuations on metrics such as price/earnings, price/sales, price/book, yield and price/cash flow. But we also look for companies with clean balance sheets, high levels of profitability and cash flow generation capability, and experienced management teams.

Growth stocks may be outperforming in 2018 -- but in an environment of historically low interest rates, many investors are still searching for high levels of income, which can often be found in Value stocks. Over the years, the performance record has favored Growth. Since 2003, the Russell 1000 Growth Index has climbed 423%, compared to an advance of 278% for the Russell 1000 Value Index. In 10 of the 15 years of this period, Growth stocks have topped Value stocks. Still, Value is the place to achieve income. The current yield on the iShares Russell 1000 Value Index ETF is 2.2%, compared to the current yield on the iShares Russell 1000 Growth Index ETF of 1.1%. As well, sometimes the risk profile favors Value. For the past five years, the standard deviation of monthly returns for Value stocks has been 2.83%, compared to the standard deviation of monthly returns for Growth stocks of 2.93%. When we look for Value at Argus, we look for low valuations on metrics such as price/earnings, price/sales, price/book, yield and price/cash flow. But we also look for companies with clean balance sheets, high levels of profitability and cash flow generation capability, and experienced management teams.

Current Correction: Similar to Past Near-Bear Phases, not Classic Bear Markets

Trying to Right the Ship: Our Monthly Survey of the Economy, Interest Rates, and Markets

With the stock market racing to new highs earlier this year, most mainstream investors were either looking to get aboard or stay aboard the galloping bull. As the market was lifted higher by the FAANG stocks, many investors likely became over-allocated to a couple of high risk-reward sectors. Even while riding the rally — and the recent ups and downs — some investors are considering end-of-rally strategies. Minimum volatility, or “Min Vol,” often falls into that defensive category.