(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
Yesterday NASDAQ hit a record intraday high surpassing the record from 15 years ago.
Today is quadruple witching. Stock index futures, stock index options, stock options, and single stock futures expire today. Expect volatility.
Part of this week’s up-move is attributable to buy side bias in quadruple witching. It is not uncommon for such gains to reverse on the following Monday.
Typically, investors pay a lot of money to their brokers. The time is ripe for investors to now make money off their brokers. Here are the five main reasons to consider buying the stocks of brokers.
Rising interest rates
The era of near-zero interest rates is over. Interest rates are likely to rise over the coming years. Interest income is one of the biggest contributors to the earnings of the brokers.
Brokers invest uninvested funds of their clients in their custody; they keep the interest they earn and often do not pass it on to the clients. As interest rates rise, brokers will earn significantly more on the uninvested funds of their clients.… Please click here or the title below to read more.