Global economic growth is slowing. The world economy continues to expand, but at a smaller growth rate than in recent years. The outlook isn’t much better. In fact, the IMF keeps revising its forecast downwards, as do the forecasters tracked by FocusEconomics. It turns out that the expected growth isn’t much off than the historical average. Advanced economies are will not accelerate from current tepid growth, but emerging economies will gradually improve.
Fact: The global economic outlook is not worse than normal
The IMF forecast for world GDP in 2017 is 3.4 percent growth (inflation-adjusted). The long-run average, calculated since 1970, is 3.6 percent. That’s not much different. It seems weak because previous forecasts had been up around 4.0 percent. We’ve had years with more than five percent growth. But the current forecasts are not that bad. Even if we take a narrower slice of history, say 1990 through 2015, we get just 3.6 percent growth. So maybe it’s not so bad.
Best Stocks To Own For 2018: Unilever PLC(UL)
Advisors’ Opinion:
- [By Demitrios Kalogeropoulos]
Rival Unilever (NYSE:UL) fared better by posting a 1% organic sales drop in the U.S. geography as it gained share despite a shrinking overall industry. Kimberly-Clark, in contrast, couldn’t claim market-share gains and instead had to settle for rising profits. “We delivered earnings growth despite a challenging environment, particularly in North America,” CEO Thomas Falk said in a press release.
- [By Paul Ausick]
Unilever PLC (NYSE: UL) dropped about 1.4% on Friday to post a new 52-week low of $38.58 after closing at $39.11 on Thursday. The stock’s 52-week high is $48.97. Volume was more than double the daily average of around 1.5 million shares. The consumer products company had no specific news on Friday.
- [By Benzinga News Desk]
Unilever PLC (NYSE: UL) said it would divest its 145-year-old margarine and spreads business, part of a broad restructuring in the wake of a spurned takeover approach by Kraft Heinz Co. (NASDAQ: KHC): Link
Best Stocks To Own For 2018: Mosaic Company (The)(MOS)
Advisors’ Opinion:
- [By Ben Levisohn]
We also want to reiterate our bullish view on the agricultural commodities and the ag-related stocks (e.g., CF Industries Holdings (CF), Mosaic (MOS), Potash Corp. of Saskatchewan (POT), FMC (FMC), AGCO, Deere). Following sharp multi-year declines, trends continue to improve.
- [By Ben Levisohn]
Mosaic (MOS) tumbled to the bottom of the S&P 500 today after announcing that it would buy Vale’s (VALE) fertilizer unit.
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Mosaicdropped 1.1% to $27.77 today, while the S&P 500 advanced 0.2% to 2,262.53.
Barron’s Dimitra DeFotis covered the deal over at Emerging Markets Daily:
Global agricultural chemicals giant Mosaic (MOS) is buying most of the fertilizer chemicals business of Brazilian mining giant Vale (VALE) in a cash-and-stock deal valued at $2.5 billion, but Wall Street doesnt seem to like the deal…
Vale will maintain an 11% stake with ownership nitrogen and phosphate fertilizing assets in the city of Cubat茫o, Reuters reports. Mosaic adds Canada and Peru mines to its empire as part of the deal, according to the Mosaic acquisition press release…
Mosaic’s market capitalization fell to $9.7 billion today from $10.4 billion yesterday. It reported net income of $1 billion on sales of $8.9 billion in 2015.
- [By Chris Lange]
The S&P 500 stock posting the largest daily percentage loss ahead of the close Monday was The Mosaic Co. (NYSE: MOS) which traded down 2.4% at $23.09. The stocks 52-week range is $22.43 to $34.36. Volume was 4.2 million versus the daily average of 5.1 million shares.
Best Stocks To Own For 2018: Sandstorm Gold Ltd(SAND )
Advisors’ Opinion:
- [By Rich Duprey]
Sandstorm Gold (NYSEMKT:SAND) has outperformed the precious metal itself over the past year, with shares rising 35% year to date. Last month it reported third-quarter profits of $7 million, a big U-turn from 2015, when it suffered losses of $5.5 million. In fact, its entire operation was doing better with greater production: lower cash costs, but higher cash margins; and greater operating cash flows, all of which allowed it to pay down its revolving credit facility. That means it has no bank debt and its entire $110 million revolving credit facility is available to make acquisitions.
Best Stocks To Own For 2018: Home Depot, Inc. (The)(HD)
Advisors’ Opinion:
- [By Paul Ausick]
The Home Depot Inc. (NYSE: HD) traded up 1.23% at $149.90. The stock’s 52-week range is $119.20 to $160.86. Volume was about a third lower than the daily average of around 4.6 million shares. The company had no specific news.
- [By WWW.THESTREET.COM]
Originally published Nov. 17 at 3:41 p.m. EDT
The consideration of the contrary has been a theme all week. And here in ” Don’t Run With the Crowd: Embrace the Contrary.” Miami madness (of a real estate kind) Mark Grant is scared by our currency’s strength. Danielle on scenarios. Boockvar to subscriber Bad Golfer! JC Penney ( JCP) short puts–a 100% win. (Shorting options frequently ends differently!) Just say no to closed-end muni-bond funds. DRYS is all wet. Could iPhone manufacturing be coming back home? On inflation breakevens–a picture that speaks volumes. The market moved higher from the “get go”–in large measure it seems to be a response to the better economic data this morning. At 3 p.m. stocks were near the day’s highs. I shorted The Cisco Kid last night. Sticking with this short rental. I added to my ProShares UltraShort S&P500 ETF ( SDS) long (growing ever larger). My net short exposure–is now between small and medium-sized at the close. The U.S. dollar, as discussed above, continued to rip higher against the euro. I am concerned. Mark Grant is concerned. The market is not concerned. The price of crude oil (down $0.20) settled lower after yesterday’s robust gains. Gold fell $9 as it continues to break down–closing in on $1,200. Ag commodities: wheat up $0.07, corn up $0.04, soybeans up $0.05 and oats up $0.02. Lumber up $7 following the big housing number this morning. Bonds schmeissed … iShares Barclays 2
- [By WWW.THESTREET.COM]
The department store retailer reported Thursday that its adjusted net loss clocked in at $230 million, or $2.15 a share. A year ago, Sears delivered an adjusted loss of $199 million or $1.86 a share. Sales at both the Sears and Kmart banners continued to plunge amid stiff competition from much healthier rivals Walmart (WMT) , Target (TGT) and Home Depot (HD) . Same-store sales at Sears crashed 12.4%, marking the 11th straight quarterly decline. At Kmart, sales dived 11.2%, and were down for the 10th straight quarter.
