Shares of Lumentum Holdings (LITE) gained momentum after the optical and photonic products manufacturer raised its fiscal fourth-quarter guidance above prior expectations and announced it will reach a key revenue milestone sooner than anticipated. What does Lumentum do? Lumentum designs and manufactures optical and photonic products enabling optical networking and laser applications worldwide and has expertise in foundational Technologies critical to AI. Why Lumentum’s Momentum Is More Likely to Continue Lumentum’s upbeat outlook, strong competitive positioning, robust and innovative product technology, and strategic shift of manufacturing footprint out of China into Thailand appear to be positive developments for investors. Improved…

Cyclical or Secular U.S. Dollar Weakness? As seen on the Datagraphs® below, the U.S. Dollar Index has declined from a high in January from roughly 110 to 97 in April. Recently, it has risen slightly but remains near its 52-week lows. On a longer-term monthly chart, it is testing what looks to be very key support level at an uptrending line which has been in place for over a decade. A break below could confirm the first secular dollar bear market since the 2003-2008 period. There are several reasons for this decline. First, U.S. debt levels continue to rise, forcing…

Shoppers are paying close attention to how retailers handle the import crisis, with most saying they would reward brands that absorb higher costs. Three out of four consumers would be inclined to abandon their favorite retail brands over claims of price increases necessitated by new tariffs. That’s one of the top-line findings in a new survey by First Insight, suggesting that inflation-weary shoppers are annoyed and growing suspicious of major retailers’ announcements about rising import costs. Among U.S. shoppers, only one in four said they are convinced that tariffs alone are responsible. Inversely, 80% of the 1,120 American shoppers surveyed…

From an early age, children are taught essential lessons: do not play with fire, do not pet strange dogs, and if one cannot swim, stay out of the deep end. Another timeless rule—often forgotten by those in positions of immense wealth and influence—is this: do not bite the hand that feeds you. This lesson, while simple, has profound implications in the real world. It applies just as readily to billionaires and institutions as it does to children on a playground. Yet recent actions by both Elon Musk and prominent academic institutions—most notably Harvard, but also Columbia, MIT, and others—suggest that…

The best performing sector in the stock market for the past year has been the unsung financial sector. Its 24% return for the year through May 31 was nearly double the return on the market as a whole. Unlike technology or biotech, financial stocks don’t get people very excited. There’s no tantalizing hint of instant riches from investing in banks, insurance companies, credit-card companies and the like. Where’s the glamor? Yet many financial stocks, in their unobtrusive way, have been excellent investments over the years. In the past decade, Mastercard Inc. (MA) has returned 577%, Visa Inc. (V) 481%, J.P.…

Key News Asian equities started the week on a strong note as Hong Kong and South Korea outperformed, while Australia was closed for the King’s Birthday and Indonesia and Pakistan were closed for Eid al-Adha. Both Hong Kong and Mainland China opened higher and continued to gain throughout the session. Trading volumes in Hong Kong were robust, with growth and technology stocks leading the advance, while coal and precious metals underperformed. A few notable developments: US-China Trade Talks: US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer met with Vice Premier He Lifeng in…

As some of the market’s biggest tech names lose steam, investors are turning to less crowded corners of the high-tech sector where growth and disruption remain alive and well. Global defense stocks have rocketed higher in 2025, particularly those focusing on AI applications and other cutting-edge defense technology. These weapons are changing the way wars are fought and are having an equally significant impact on the way the Defense Department spends its enormous budget. The implications are both exciting and frightening. Rising global defense budgets have contributed to renewed demand for traditional defense assets, such as fighter jets, ballistic missiles,…

China’s tightening grip on rare earth mineral exports, critical components in electric vehicles, could ignite another major disruption in the global automotive industry, according to a report from consultants BMI. But Western manufacturers will take some comfort from the knowledge that China’s huge auto overcapacity means it will be anxious for exports to continue without too much interruption. “Global automotive production lines are at risk of coming to a standstill and experiencing delays due to a new licensing system introduced by Mainland China which is slowing deliveries of rare earth exports and causing significant delays in magnet deliveries,” said BMI,…

Small-cap stocks haven’t been this cheap in decades. This valuation advantage gets interesting when we add big fat dividends and today, we’ll discuss five cheap small caps yielding between 8.3% and 17.1%. (That’s no typo by the way—we only talk serious dividends here at Contrarian Outlook!) The Apples, Google and Microsofts of the world are priced like luxury goods. Smaller stocks, meanwhile, have been left at the discount rack. Let’s shop: S&P 500: 21.2 times earnings (pricey!) S&P MidCap 400: 15.4 times (better…) S&P SmallCap 600: 14.7 times (bingo!) The valuation spread between the S&P 500 and S&P 600 hasn’t…

Here’s a surprise from a die-hard closed-end fund (CEF) fan like me: Sometimes CEFs aren’t your best bet. I’ll admit, that’s tough for me to say—especially when the average CEF yields a historically high 9.1%. (CEF yields are usually around 8.5%). That high yield partly reflects the fact that many CEFs are trading at steep discounts to their net asset value (NAV). Translation: The fund is trading for less than what its underlying portfolio is worth. That, in turn, has resulted in lower prices among some CEFs, along with higher yields (as yields and prices move in opposite directions). All…