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Jennifer Lynn is a proficient investor, executive and manager working with analytics data to drive smart business decisions. Technology, eCommerce, Management, Healthcare, Consulting, Strategy. Passionate for Finance, IT & Emerging Markets. Email: consultbydigital @ gmail.com
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  • U.S. Treasury Yields Surge
    The U.S. Treasury Bonds rise to its highest level weekly in a decade with high yield currencies. The current U.S. Bond surge is due to a stronger economy. With markets adjusting and economic volatility, investors choose bonds as a safer option which offers more security. The Federal Reserve raised concerns and comments with investors speculations on easing QE3. U.S. stocks ended higher with ten-year U.S. treasuries yields rising above 2.50 percent, its highest intraday level since August 2011.

    The dollar continues to rise due to the positive economic forecast. The dollar rose 0.5 percent with a weekly gain of 2 percent, the highest since early July, 2012. The euro fell 0.7 percent to $1.3126 and the dollar gained 0.4 percent against the yen to 97.70 yen. The 10-year Treasury Bonds were down to yield 2.54 percent, while 30-year bonds dropped to yield 3.59 percent.

    The Federal Reserve is working to reduce the jobless rate of 7.6 percent after four years of economic growth. According to Bloomberg, "The economy will grow 1.9 percent in 2013 and 2.7 percent in 2014, the economy has not grown more than 3 percent over the course of 12 months since the four quarters ending in June 2006." The U.S. stock indexes had ended their worst week since April. The S&P 500 remained below its 50-day moving average last Thursday.

    Stocks and Treasuries fell Tuesday as Federal Reserve Chairman Ben Bernanke stated "The central bank may start dialing down its unprecedented bond-buying program this year and end it entirely in mid-2014 if the economy finally achieves the sustainable growth the Fed has sought since the recession ended in 2009." The Standard & Poor's 500 Index declined 1.4 percent to 1,628.93. The yield on the 10-year Treasury note jumped to 2.36 percent, the highest since March 2012, from 2.19 percent last Tuesday. Investors are still uncertain of The Fed's policy and plans.

    "If the incoming data are broadly consistent with this forecast, the committee currently anticipates that it would be appropriate to moderate the pace of purchases later this year." Bernanke said. "If the incoming data are broadly consistent with this forecast, the committee currently anticipates that it would be appropriate to moderate the pace of purchases later this year," Bernanke said in a press conference in Washington.

    The 30-year US Treasury Bond auction sold at 3.335% vs 3.325%. The Federal Reserve is currently buying $85 billion a month in bonds causing even more risk while sending U.S. stocks up about 15 percent year to date. MSCI's stock index missed at 0.3 percent and the FTSE Eurofirst 300 index ended down 1 percent. The Dow Jones industrial average added 41.08 points, or 0.28 percent, to 14,799.40. The Standard & Poor's 500 Index rose 4.24 points, or 0.27 percent, to 1,592.43. The Nasdaq Composite Index was off 7.39 points, or 0.22 percent, to 3,357.25.

    Investors should recognize the importance of maturity in high yield treasury bonds. There are yields for two, five and ten-year terms. The highs, lows and long-term averages are based on "constant maturity" methods employed by the U.S. Treasury. The bonds can be combined with coupon payments and maturities that match investors income criteria. High yield treasury bonds are investments with guaranteed returns. The yield to maturity is significant to determining actual yield received by the investor. The income that is earned from these type of bonds are a risk-free yield, exempt from state and local taxes. Long-term bonds are a safer option compared to stocks. An effective strategy is to leverage both stocks and treasury bonds in an investment portfolio to minimize risk and reward.

    The U.S. economy is meeting expectations as economic conditions are getting stronger. Investors that are dependent on income to allocate toward their expenses should be investing in the high yield treasury bonds. High yield treasury bonds are important for diversification in investor portfolios, reducing volatility and increasing predictability of returns. Investing in high yield treasury bonds should be a long-term investment strategy.

    Jun 22 6:09 AM | Link | Comment!
  • Cisco, A Dividend Favorite

    Cisco, A Dividend Favorite

    Cisco (NASDAQ: CSCO) quarterly dividend of $0.17 per common share giving the stock a 3.3% yield. "We are increasing our dividend as part of our strategy to deliver a consistent return to our shareholders, in line with our capital allocation commitment," stated Frank Calderoni, executive vice president and chief financial officer, Cisco. Cisco stock is up +24.91% year-to-date. FY 2013 sales for the current year ending July 30 are expected to be higher by 5.7% to $48.7 billion. Cisco's earnings are forecast to grow 7.6% to $1.99 per share. The annualized dividend yield is expected at 2.7%.

    " Investors who focus on just a few emerging markets, particularly the countries known as the "BRICs," that is Brazil, Russia, India and China, are too narrowly focused." states Greg Behar, senior investment strategist at Northern Trust.

    The company recently announced that it has agreed to buy cloud services management business SolveDirect. Cisco added 0.5 percent to $20.85. Challenges can arise from the newer technology companies, which have abilities to outpace traditional enterprise models. Big data now has an outstanding opportunity to identify new emerging data for all industry organizations. Forrester's 2013 expectations predict a strong rebound in the worldwide technology market with enterprise organizations.

    For investor's Cisco high paying dividend makes its stock attractive. Question's are present on the outcome of QE3. Dividend stocks for Cisco are promising. The dividend stocks outperformed in first quarter. Cisco's average price-sales ratio over the past three years is $26.08 trailing 12-month sales. Average price-earnings multiple since 2008 has been 17.72 times earnings. Cisco has $1.99 of EPS, that average P/E would correspond to a stock price north of $35.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jun 21 7:12 PM | Link | Comment!
  • Capital One SMB Outlook

    Capital One Financial Corp. (NYSE:COF) According to Capital One's second quarter 2013 survey Spark Small Business Barometer, small businesses in the United States economic environment is expected to gauge economic, financial and business conditions throughout the rest of the year. This in combination with the economy today, has made a dramatic after effect on American behavior, overall American consumer behavior, spending habits and lifestyle changes. "Our survey results for the second quarter indicate that while optimism and confidence are on the rise and more small businesses are on sound financial footing, concerns and uncertainty continue to hold back plans for staffing increases and growth," stated Jon Witter, President of Direct, Consumer and Small Business Banking at Capital One. "While many small businesses have seen an uptick in sales over the past six months, this is not necessarily translating into significant new hires or investments in the business."

    Small business confidence is positive that financial revenues would increase in six months (45 percent), a 7 point increase from Q4 2012 (38 percent) and a 2 percent increase from Q2 2012 (43 percent). Forty-one percent of small businesses report they believe their financial positions will be about the same in six months.

    In the United States, 67 percent of small business do not plan on hiring next month. 30-38 percent of companies plan to hire additional employees in the next six months. Small Business owners outlook has remained stagnant conservatively since 2009 as they prefer to wait for further updates from Washington, tax and regulation standards results.

    Challenges arose due to the weakened economy has led Americans to cut back on driving, instead taking public transportation to avoid rising costs of fuel. As a result, the demand for gasoline has slowed with Americans becoming more fuel-efficient. Convenience is key. The outlook of the future of today's economy has impact on how much money individuals earn. If earnings stay high, then consumers will obviously keep spending and keep the economy growing. Consumer spending affects 70% of today's economic output.

    The U.S. annual Small Business Week (June 17-21) recognizes and supports millions of small businesses. China, India, and Russia are also likely to emerge as significant players over the next two decades, a development that will give Western companies major short-term cost-reduction opportunities that they must capture. Capital One's second quarter 2013 survey Spark Small Business Barometer and Small Business Week are significant milestones which also bring out the present challenges that are faced by small businesses.

    Investors outlook towards the right market, trends and technologies for small business will see success. There are growth markets thriving such as mobile which provide cost savings options. The small business' opportunity to reach more consumers is there. Having a strong understanding of small business behaviors, customer needs and how it impacts their purchasing decisions is crucial. Success is driven by understanding. The ability to understand is important in the process as well expanding the small business network.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jun 21 5:09 PM | Link | Comment!
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