Here's the next disaster in retail. Hint: it's not J.C. Penney dying

Thanks to shoppers spending cautiously on clothes in recent months — despite a rallying stock market and low 3.7% unemployment rate — retailers of all kinds are sitting on mountains of excess inventory. Now that inventory must be worked off at profit-margin-busting prices in order to make way for the lucrative, full-price garb targeted to back to school shoppers in August and September. That backdrop sets the stage for scores of earnings misses, lowered profit outlooks and downtrodden earnings calls with Wall Street when the retail sector begins to release results in mid-August.

Millions of Barrels of Iranian Oil Are Piled Up in China’s Ports

Two and a half months after the White House banned the purchase of Iran's oil, the nation's crude is continuing to be sent to China where it's being put into what's known as “bonded storage,” say people familiar with operations at several Chinese ports. The store of oil has the potential to push down global prices if Chinese refiners decide to draw on it, even as the Organization of Petroleum Exporting Countries and allies curb production as growth slows in major economies.

Icahn Slams Occidental, Says Buffett Took CEO ‘to the Cleaners’

Occidental Chief Executive Officer Vicki Hollub and Chairman Eugene Batchelder appear to have negotiated the "extremely risky" transaction because they were worried their oil and gas explorer was in the crosshairs of a potential buyer, Icahn said in a letter that will be sent to Occidental shareholders Monday. "I do believe that Hollub and Batchelder know what's good for them and their personal agendas but do not particularly care what's good for shareholders," Icahn said in the letter, a copy of which was reviewed by Bloomberg. "With [Occidental] weakened and doing poorly, Hollub and Batchelder were fearful there would be a bid for the company which shareholders would accept."

5 Reasons to Convert a Roth to a Traditional IRA

Yes, the Roth IRA gets you an investment account that is totally tax-free at retirement. You can no longer comfortably pay the immediate income taxes due on the money you're contributing to your Roth IRA. Converting to a traditional IRA is less of a financial stretch since the contribution to the fund is taken from gross pay, not takehome pay.

• 
  Can I roll my 401(k) and/or IRA funds into a more liquid investment fund without penalty?

  Investopedia
• 
  Can I take my 401(k) to buy a house?

  Investopedia

Cuggino on Fed, Markets

Michael Cuggino, Permanent Portfolio Family of Funds president & portfolio manager, talks about fears of slowing economic growth and why he thinks a rate cut of 25 basis points by the Federal Reserve is already baked in for July. He spoke on July 18 on "Bloomberg Markets."

• 
  Trump demands rate cut, seizing on Fed official's own words

  AFP
• 
  India Bonds Slide After Central Bank Dials Back Rate Cut Expectations

  Bloomberg

Equifax to pay up to $700 million in U.S. data breach settlement

Credit-reporting company Equifax Inc will pay up to $700 million to settle U.S. federal and state probes into a massive 2017 data breach of personal information that affected around 147 million consumers, authorities said on Monday. The largest-ever settlement for a data breach draws to a close multiple probes into Equifax by the Federal Trade Commission, the Consumer Financial Protection Bureau and nearly all state attorneys general. It also resolves pending class-action lawsuits against the company.

• 
  Equifax to pay up to $700 mn over data breach: US

  AFP
• 
  Equifax Agrees to Pay $700 Million to Settle U.S. Breach Probe

  Bloomberg

'Catastrophic' Stock Market Volatility Is Coming, Says Top Advisor

The good news is investors can use diversified exchange traded funds to smooth out the volatility, Cook says. "Market volatility needs to be embraced as today's new norm," he said. The Rise Of Stock Market Volatility Cook points to the increased big percentage moves in the stock market as a sign volatility is heating up.

• 
  One Thing To Remember About The RH (NYSE:RH) Share Price

  Simply Wall St.
• 
  Before You Buy ACCO Brands Corporation (NYSE:ACCO), Consider Its Volatility

  Simply Wall St.

IBM's Stock Is Too Cheap to Be Ignored

IBM is unjustifiably one of the cheapest companies offering cloud-based software solutions. Big Blue continues to spew out significant amounts of free cash flow, and its Q2 2019 results show that IBM continues to improve its fundamental operations. Investors' initial reaction was one of dismay at having no update on IBM's $34-billion acquisition of multi-cloud platform operator Red Hat.

Nvidia and AMD – Which is the Better Buy?

The semiconductor industry has been buffeted by headwinds in recent months, with most of the bad news centering on China. The ongoing political tensions, with the attached threat of tariffs and trade barriers, have hit chip makers hard, but that appears to be easing. Intel (INTC) in particular has taken a beating from that factor, as Apple (AAPL) has settled its legal with Qualcomm (QCOM) and regained access to its preferred modem chips and PC makers have been switching to AMD for lower cost processors.

Fed Is Trying to Avoid Being Reactive, Says Conning’s Yeo

Siew Mee Yeo, Asia Pacific chief investment officer at Conning, discusses Fed policy and her outlook for markets. She speaks on “Bloomberg Markets: Asia.

Your portfolio is probably heavy on index funds. Now may be the time to make changes

If you have money in the stock market, you probably own an index fund somewhere, including through target-date retirement funds that own stocks and other assets in mixes that are appropriate for investors of specific ages. Research Affiliates, in its latest report on bubbles, isn't arguing against indexing per se. Nor is it calling for a stock-market crash, though the company's chairman, Rob Arnott, said he views the market as expensive.

New California labor laws could throw a wrench in consultants' businesses

California's Assembly Bill 5 would likely redesignate Uber and Lyft drivers and many other gig economy workers in the Golden State as employees, but if it makes it into law, the legislation would also spur a seismic shift in the way that many professionals in the state, including consultants, earn a living. Lobbying from various groups has carved out exemptions in AB 5 for several professions, including doctors, insurance agents, securities brokers and real estate agents, but as currently written, the bill doesn't exempt consultants — which means a professional who does work for a client for just a few hours a month would likely have to be hired as a part-time employee. Dr. Bruce Quinn, a medical technology consultant who works in Palo Alto and Los Angeles, told the Silicon Valley Business Journal that with the new labor laws looming, a large biotech company for which he worked occasionally last year wouldn't hire him as a contractor again this spring when he sent the company a new contract.

Michigan woman had 350% interest rate on $1,200 loan — and a loophole allows it

Under the Virginia settlement, three companies under the Think Finance umbrella – Plain Green LLC, Great Plains Lending and MobiLoans LLC – agreed to repay borrowers the difference between what the firms collected and the limit set by states on rates than can be charged. Virginia has a 12% cap set by its usury law on rates with exceptions for some lenders, such as licensed payday lenders or those making car title loans who can charge higher rates. In June, Texas-based Think Finance, which filed for bankruptcy in October 2017, agreed to cancel and pay back nearly $40 million in loans outstanding and originated by Plain Green.

Trump goes after Fed’s Powell on Twitter: ‘Don’t miss it again!’

U.S. President Donald Trump looks on as Jerome Powell, his nominee to become chairman of the U.S. Federal Reserve, speaks at the White House in Washington, U.S., November 2, 2017. President Donald Trump attacked the Federal Reserve — again. With almost no inflation, our Country is needlessly being forced to pay a MUCH higher interest rate than other countries only because of a very misguided Federal Reserve.

• 
  USD/JPY Fundamental Weekly Forecast – Will Kuroda Signal Need for More Stimulus?

  FX Empire
• 
  Market Sentiment Hit by Fed Miscommunication

  FX Empire

Why are so many unable to cover a $400 emergency?

Unfortunately, even during strong economic times, many people are already juggling so many other bills that they just can't imagine adding one more bill onto the pile, according to new research by the Center for Retirement Research at Boston College. In fact, the research concluded, some of these households actually do have enough money in savings, but many feel constrained by credit card debt and other bills. Often, researchers said, people who have some savings tend to mentally allocate some of that money toward upcoming expenses – maybe next month's mortgage payment, the minimum payments on the credit card bills, paying student loan debt or maybe even saving up for new tires by winter.

Retirement Planning Tips: 6 Funds That More Than Double The Yield Of The S&P 500

Pipeline operators get paid regardless of the price of energy they transport. But oil-price volatility impacts MLPs because "their growth depends on energy prices staying high enough to justify drilling for oil and gas in higher cost areas," Kapyrin said. "When the price of oil falls below a certain point, higher cost areas in the U.S. see a lot less drilling," reducing the amount of energy carried through pipelines.

Still The No. 1 Rule For Stock Market Investors: Always Cut Your Losses Short

Highly successful stock pickers go through similar training: They must learn how to cut their losses short. This means selling a stock when it's down 7% or 8% from your purchase price. Sounds simple, but many investors have learned the hard way how difficult it is to master the most important rule in investing.