Netflix can sustain its lofty valuation only if global subscriber growth can support increasing content spending and debt.Technologyread more
China has other "weapons" in its trade battle with the United States — and selling off its U.S. Treasury holdings will not be one of them, said Richard McGregor, senior fellow...China Economyread more
Barr and Ross had defied Democrats' subpoenas for information about the Trump administration's efforts to add a citizenship question to the 2020 census.Politicsread more
IBM's year-over-year revenue has now declined for four quarters in a row. Impact from Red Hat is not yet factored into the company's guidance.Technologyread more
Germany online bank N26 said it raised a huge $170 million in additional funding, valuing the six-year-old fintech start-up at $3.5 billion.Technologyread more
The House voted to table a resolution to start impeachment proceedings against President Donald Trump introduced by Rep. Al Green.Politicsread more
A photo editing app has introduced a few new wrinkles to the faces of celebrities — and to the ongoing discussion around personal digital security, NBC reports.Technologyread more
Deutsche Bank Wealth Management's global chief investment officer predicted the Federal Reserve will cut interest rates twice in the next 12 months, but chances of a four-time...US Economyread more
Several people are feared dead in a fire at an animation studio in the Japanese city of Kyodo on Thursday.Asia Newsread more
Property price gains across the wider U.K. have been slowing since 2016, according to the U.K.'s Office for National Statistics.Real Estateread more
Stock-market investors entered panic mode after the wild ride to end 2018, meaning it might be a good time to buy equities, according to Tobias Levkovich, chief U.S. equity strategist at Citigroup.
Citigroup's Panic/Euphoria model hit panic levels after a massive drop in stock prices last month, Levkovich said. This indicates "high probabilities of making money (with average 18% upward moves looking out 12 months)," Levkovich said in a note to clients on Monday.
Citigroup Panic/Euphoria Model
The model — which takes into account factors such as newsletter sentiment, margin debt and options activity — has had a good track record of predicting pullbacks and surges. It reached "euphoria" levels in 1999 before the dotcom bubble burst in 2000. It also broke into "panic" levels back in 2016 before the big post-election rally. The model also hit euphoria levels to end 2017.
The posted its biggest one-year decline since 2008 last year, sliding 6.2 percent. The broad index also notched its worst monthly performance since February 2009 as well as its biggest December fall since 1931.
Stocks fell as Wall Street weighed the possibility of a global economic slowdown, a potential monetary policy mistake from the Federal Reserve as well as ongoing trade talks between China and the U.S.
This decline led Levkovich to trim his 2019 target on the S&P 500 to 2,850 from 3,100. "Ugly may be a kind word to describe the last month of stock market trading with a 'buyers' strike' being evident," Levkovich said.
But "valuation is now indicative of 16%-like upside opportunity and sentiment has declined into panic," he added. "At this stage, we foresee opportunity with our key sentiment indicator implying a more than 97% chance of the S&P 500 being higher in 12 months."