Thursday was the fourth ugly finish in five sessions, with the Nasdaq Composite COMP, -1.99%
skidding 2%, and the other major indexes backtracking as well.
Andrea Cicione, head of strategy at independent investment research firm TS Lombard, said excessive leverage in the market really began in earnest in July. Cicione added that was occurring in U.S. stocks wasn’t happening anywhere else in the world.
And while he’s seeing signs of a bubble, he thinks if the selling doesn’t intensify, the bubble may reflate soon.
“The leverage accumulation so far may not be enough to burst the bubble just yet,” he writes. “If the recent selloff does not intensify further, the whole episode may end up simply emboldening the bulls to buy the dip and take even more risk.”
Between 1997 and 1998, the Nasdaq experienced three sell-offs of at least 17%, only to emerge stronger and rise four-fold to the 2000 peak. “Leverage is a key characteristic of all bubbles, and almost invariably it is the mechanism that leads to their collapse. But there may not have been enough leverage for the dot-com 2.0 bubble to burst just yet,” he says.
The reason leverage is important in bursting bubbles is because it uniquely can lead to forced unwinding. “When faced with margin calls they cannot meet, investors may have to liquidate positions against their will. The resulting fall in prices can instil doubts in the mind of others, persuading them to sell,” he said.
Consumer price data for August is due at 8:30 a.m. Eastern.
The quarterly services survey and August budget deficit are also due for release. The Congressional Budget Office, which typically gets the budget picture pretty close to the mark, estimated the August deficit was $198 billion, and said the September-ending fiscal year gap will be the highest relative to the economy since 1945.
Database software giant Oracle ORCL, +0.66% topped earnings and revenue expectations, helped by revenue from key client Zoom Video Communications ZM, -1.32%.
Oracle also declined to discuss whether it will buy the U.S. operations of social-media company TikTok, as U.S. President Donald Trump said Thursday there will be no extension of the Sept. 15 deadline for it to be sold to a U.S. company or shut.
The British pound GBPUSD, +0.18%
continues to reel from its more combative stance taken against the European Union in trade negotiations.
This incredible UBS illustration of Tesla TSLA, +1.38%
shows how shares have performed compared to other tech giants since joining the $100 billion market cap club. It took Apple AAPL, -3.26%,
Alphabet GOOGL, -1.36%
and Facebook FB, -2.05%
between 4 to 11 years to achieve what Tesla did in three quarters. UBS increased its Tesla price target to $325 from $160 ahead of the company’s battery day presentation.
The midsize luxury SUV segment is extremely competitive. This is an area where almost every luxury brand has a seat at the table and they all have different sets of strengths and weaknesses. Some are better off-road, some are all about on-road performance and some are more family-oriented with roomy 3-row seating. Whatever you’re looking for in a midsize luxury SUV, you’ll find something perfect for your wants, your needs and your budget on this list.
Here are the best midsize luxury SUVs for 2020, ranked.
1. Mercedes-Benz GLE-Class
Score: 4.8 / 5
Mercedes-Benz has been working on midsize luxury SUVs for quite some time and the all-new 2020 Mercedes-Benz GLE-Class is the closest that the brand has come to truly perfecting this formula.
In classic Mercedes-Benz fashion, the GLE-Class seamlessly combines high-end luxury with engaging performance and in this case, it’s wrapped in a practical and stylish SUV that’s just the right size. The interior is arguably the nicest in this class and it’s packed with the latest technology in both safety and infotainment. One of its few faults is a cramped optional third row of seats.
This SUV makes more sense with the standard 2-row configuration. We admit, sometimes the technology can get in its own way. If you prefer just the basics when it comes to lowering the interior temperature, you might not like the Benz setup here. Still, this is an excellent midsize luxury SUV. It’s a little pricey for this class with a starting MSRP of $54,250, but it’s so good that the price tag is justified. The GLE was on our list of the best cars of 2019.
2. Audi Q8
Score: 4.8 / 5
When a luxury brand comes out with an “SUV coupe,” it usually means making big compromises on practicality to get a more stylish body. However, the Audi A8 is a sleek SUV with a sloping roofline that also manages to have generous passenger space and plenty of cargo space. Its interior is breathtaking, with a high-end design and quality materials throughout, and its sharp handling makes it feel like a smaller car. All-wheel drive is standard, which improves all-season traction.
Many of us prefer the equally spectacular Q7 but that’s largely a matter of individual taste. The starting price is high at $68,200, but it comes generously equipped with standard features, delivering a truly luxurious experience.
3. BMW X5
Score: 4.8 / 5
The BMW X5 is one of the original midsize luxury SUVs and in 2020, it’s still one of the best. We know it’s cliché to call it “the BMW of SUVs,” but it’s an accurate way to describe this luxurious crossover with agile handling and a powerful engine lineup. A third row of seats is optional, but they’re a bit cramped and we’d recommend a different SUV on this list if you need extra seats.
Where this BMW BMWYY, +1.62%
excels is in the fun-to-drive factor while also serving up practicality with its roomy cargo hold and its intuitive infotainment system. The starting price of $58,900 puts it on the expensive side, but it’s well worth it for the right driver.
4. Audi Q7
Score: 4.7 / 5
The Audi Q7 is right up there with its chief competitors from BMW and Mercedes-Benz in terms of interior opulence, stately styling and agile handling. The Q7 features standard 3-row seating, but like most of its competitors, space in the third row is quite tiny. The Q7 received a nice mid-cycle refresh for 2020 which includes updated styling, a dual-screen infotainment system, a new mild-hybrid setup for the V6 engine and the debut of the high-performance SQ7 for drivers looking for some extra punch under the hood. Like the Q8, AWD is standard on the Q7. Pricing is a little steep starting at $54,800, but like its other German competitors, it’s worth it for drivers who appreciate the finer things in life.
5. Acura MDX
Score: 4.6 / 5
The Acura MDX is arguably the strongest value of any SUV on this list with its attractive starting MSRP of $44,500. It’s also a family-friendly choice, with standard 3-row seating that actually has some decent room in the third row. The interior design is getting a little dated and it’s not quite as premium as many of its rivals, but it’s nice considering the price tag.
The standard V6 engine delivers an excellent balance of performance and fuel economy, but if you’re looking for something even more efficient, there’s a Sport Hybrid variant available which improves both performance and efficiency and throws in standard AWD. The hybrid starts at $52,800, which is still more affordable than many non-hybrid rivals. Find an Acura MDX for sale
6. Volvo XC90
Score: 4.6 / 5
In terms of interior quality, the 2020 Volvo XC90 is just as nice as more expensive German rivals while carrying a competitive starting MSRP of $48,350. That price is even more attractive when you consider the long list of standard technology and safety features in this handsome Volvo VLVLY, +2.72%
This is a great 3-row luxury crossover for families with its roomy cabin with standard 3-row seating and a generous cargo area to boot. The XC90 gets some slight tweaks for 2020, including revised styling and, finally, available seating for six with second-row captain’s chairs. The base engine is good on gas but a bit lacking in performance and we prefer the T6 powertrain setup. Find a Volvo XC90 for sale
7. Porsche Cayenne
Score: 4.5 / 5
The 2020 Porsche Cayenne is still fresh off a 2019 redesign and introduces a new “coupe” body style for 2020. The Cayenne checks every box you would expect from a Porsche SUV. It’s fast, it’s luxurious and it carries styling that makes it unmistakable as a Porsche.
You could upgrade to one of the hotter available engines, but most drivers will be more than satisfied with the standard turbocharged engine and standard AWD. Unsurprisingly for a Porsche, the Cayenne is toward the top of the price range in this segment with a starting MSRP of $66,800, making it good for drivers to prioritize performance over value.
8. Lexus RX
Score: 4.5 / 5
The 2020 Lexus RX is a favorite among drivers looking for a midsize luxury SUV that is safe, comfortable, reliable and efficient. There aren’t a lot of surprises with the RX and for many drivers, that’s a good thing. The interior is very nice and the ride is gentle, making it a good commuter with the versatility of an SUV. A third row of seats is available in the form of the RXL, but the optional extra seats don’t offer much legroom. The RX is a great family SUV as long as you don’t really need a third row. Value is the name of the game with a starting MSRP of $44,150, while the thrifty RX Hybrid starts at just $46,245.
9. Land Rover Range Rover Sport
Score: 4.3 / 5
If you’ve always wanted a Range Rover but you also want available three-row seating and a more affordable price, then the 2020 Land Rover Range Rover Sport is the luxury SUV for you. With standard 4-wheel drive, the Range Rover Sport doesn’t skimp on the off-road performance that its name promises, and its range of powerful engines gives it outstanding on-road performance as well.
The interior is comfortable and nicely designed, but the cargo area is a bit tight. Mild-hybrid and plug-in hybrid options were added for 2020, making this SUV a little greener. Base price for a Range Rover Sport is just under $70,000.
10. Infiniti QX60
Score: 4.2 / 5
Looking for a luxury midsize SUV with third-row seating you can actually use? The 2020 Infiniti QX60 isn’t as opulent or sporty as some of its rivals, but it’s one of the most family-friendly crossovers in this class with a standard third row that is easy to access thanks to sliding second-row seats.
Adding to its family-friendliness is good cargo space, an available rear-seat entertainment system and a coveted Top Safety Pick+ from the Insurance Institute for Highway Safety. The standard V6 is strong and good for family-hauling while also being pretty good on gas. It’s also a strong value, with a starting MSRP of $44,350. Even upgrading to the Luxe AWD model still keeps the price under $50k.
11. Land Rover Range Rover Velar
Score: 4.2 / 5
Sitting above the Evoque and below the Range Rover Sport in the Range Rover lineup is the 2020 Land Rover Range Rover Velar. This 2-row midsize SUV exudes elegance inside and out with posh styling and a composed ride. A new V8 engine making a whopping 550 horsepower joins the Velar lineup for 2020, making this Range Rover more competitive with high-performance German luxury SUVs. Four-wheel drive is standard and its off-road capabilities are better than you might expect for such a fashionable SUV. Its starting price of $56,300 is a bit steep considering some of its more modern German rivals with nicer interiors and similar prices.
12. Lincoln Aviator
Score: 4.1 / 5
The roomy 2020 Lincoln Aviator is another family-friendly choice in midsize luxury SUVs with standard 3-row seating. It’s one of the most stylish SUVs in this segment with a gorgeous exterior and a more opulent interior than you might expect. It’s also quite advanced technologically with one of the best infotainment systems in this class.
The ride is comfy and the standard twin-turbo V6 engine pumping out 400 hp is fantastic, but when it comes to handling, some rivals are more agile. It starts at a reasonable $51,100 and the higher-performance Grand Touring plug-in hybrid variant starts at $68,800. The all-new Aviator is the only vehicle from a luxury brand to earn a spot on our Best New Cars for 2020 list.
13. Maserati Levante
Score: 4.1 / 5
Maserati performance and style come in a versatile midsize SUV in the form of the 2020 Maserati Levante. The Levante offers two incredible Ferrari-built engines under the hood, a 345-hp twin-turbo V6 and a 590-hp twin-turbo V8. Think of it like a high-end sport sedan but with an SUV body. The Levante also has sharp handling and it just might have the most satisfying exhaust note of any SUV on this list. However, its $72,990 base price makes the interior quality feel a bit lacking. The Porsche Cayenne is arguably a better value for a performance-oriented midsize luxury SUV.
All-new for 2020, the BMW X6 has a sleek coupe-like body that looks cool but results in a compromise of practicality. The seats are super-comfortable, but the steep roofline cuts into the cargo area quite a bit while also hurting rear visibility. That said, the cabin is extremely well-designed and full of high-end materials plus a long standard features list. It has a lineup of very strong engines, but as comfortable and as fast as it is, its 6-figure starting MSRP of $108,600 is hard to justify. The BMW X5 M is slightly cheaper, much more practical and delivers 567 hp that you’re unlikely to get bored with.
15. Cadillac XT5
Score: 4.0 / 5
The Cadillac XT5 is a competitively priced midsize 2-row luxury SUV that takes the fight directly to the Lexus RX but can’t quite match its Japanese rival. The XT5 is a good SUV with a sharp aesthetic, a comfortable ride and a strong predicted reliability rating from J.D. Power. It got some nice updates for 2020 including a new infotainment system, a new turbocharged base engine that is good on gas and a stylish new Sport trim. Where the XT5 is lacking is interior quality and tight back seat headroom for a midsize SUV. It’s attractively priced starting at $44,095, but similarly-priced Japanese luxury SUVs are better buys.
16. Lincoln Nautilus
Score: 3.9 / 5
The Lincoln Nautilus is another American 2-row luxury SUV that takes a shot at the Lexus RX and makes a good effort but falls a bit short of greatness. It’s a nice, comfortable, practical crossover, but there’s nothing that makes it really stand out in this class.
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In Black Label form, it does eclipse the RX in terms of interior materials, color choices and textures, but that’s nearly a $60,000 car. You do get a host of concierge-level service but it’s a pricey option. Its most competitive factor with the Nautilus is actually at the other end of the spectrum — its price, which starts at $41,040, making this Lincoln a strong value for anyone looking for a comfy, quiet cruiser with SUV versatility. Both available engines are efficient and upgrading to the twin-turbo V6 adds more power, but the handling of the Nautilus isn’t what we’d call athletic.
The 2020 Cadillac XT6 is an all-new entry in the competitive 3-row luxury crossover segment and fails to stand out compared with the best midsize luxury SUVs. It has a dignified appearance, and its interior is roomy and family-friendly with plenty of room in its standard third row of seats, but that’s about where its virtues end. The sole engine choice is a naturally aspirated V6, which has enough guts for family-hauling duty, but there isn’t much of a fun-to-drive factor here. The interior quality is good but not great, which kind of sums up this whole SUV. This Cadillac is moderately priced starting at $52,695.
Joe Biden on Wednesday gave a speech in Michigan about what his campaign described as “his plan to ensure the future is Made in America by all of America’s workers,” as the Democratic presidential nominee continued an effort to counter President Donald Trump’s “America First” stance.
Biden talked up his “Made in America” tax policy that his campaign had rolled out earlier in the day, noting features such as a new offshoring tax penalty and a 10% tax credit for companies making investments to create jobs for American workers.
The Democratic challenger also promised executive actions in his first week as president that ensure the federal government isn’t shirking on pledges to “Buy American.”
“I don’t buy for one second that the vitality of American manufacturing is a thing of the past,” he said. Biden also said the Republican incumbent “hasn’t stopped companies from closing plants and sending jobs overseas,” but instead has “rewarded companies that have cut jobs and failed to invest here at home with billions in tax breaks.”
As he spoke in Warren, Biden also blasted Trump in the wake of well-known journalist Bob Woodward’s new book saying that the president knew the coronavirus was “deadly stuff” but wanted to “play it down.” The Democratic challenger said that was “a life-and-death betrayal of the American people.”
The Trump campaign attacked Biden’s latest moves before the Democratic challenger’s speech.
“It’s fascinating to me that Joe Biden is suddenly trying to masquerade as an economic nationalist,” Steve Cortes, a senior adviser for Trump’s re-election campaign, told reporters during a conference call on Wednesday. “Welcome to the party, but unfortunately you have no credibility, because you’ve been acting in exactly the other direction for nearly a half century.”
In a RealClearPolitics moving average of polls focused on top swing states that are likely to decide the election, Biden on Wednesday had an edge of 3.7 percentage points over Trump. Betting markets were giving the former vice president a 53.2% chance of winning vs. Trump’s 45.8%.
It probably won’t take a great deal of persuasion to convince investors that there’s an “age of disorder.”
That’s the title of a new Deutsche Bank research note, which says the world is entering its sixth distinct era of modern times.
So say goodbye to the “era of globalisation” and brace yourself for the “age of disorder” where millennials, firmly established as the generation of ‘have nots’, take their revenge and redistribute wealth from the old to young. Millennials are usually defined as those between the ages of 22 and 38 years old in 2019, according to Nielsen Media Research .
“In fact, an issue that is quickly emerging as a political force is the intergenerational gap,” the report says. “Assuming life does not become more economically favourable for Millennials as they age (many find house prices increasingly out of reach), this could be a potential turning point for society and start to change election results and thus change policy.”
The votes for Brexit in the U.K. and President Donald Trump in the U.S. in 2016 left many younger people feeling angry and alienated by political decisions that a sizable majority of them were against, the report says.
“Such a shift in the balance of power could include a harsher inheritance tax regime, less income protection for pensioners, more property taxes, along with greater income and corporates taxes . . . and all-round more redistributive policies”, the Deutsche Bank report said.
The ‘new’ generation might also be more tolerant of inflation insofar as it will erode the debt burden they are inheriting and put the pain on bond holders which tend to have a bias towards the pensioner generation and the more wealthy.
“The older generation may also have to be content with lower (or even negative) asset price growth if the younger generation does not have a sudden income boost. This will be a big break from the status quo and lead to far more disorder than in the prior era of globalisation.”
The report suggests 2020 may be the start of a new era, as the coronavirus pandemic brings the era of globalization since 1980 to a close.
“The era of globalisation to we are likely waving goodbye saw the best combined asset price growth of any era in history, with equity and bond returns very strong across the board. The Age of Disorder threatens the current high global valuations, especially in real terms,” said the report.
What will this new age bring? • Deteriorating US/China relations and the reversal of unfettered globalisation. • A make-or-break decade for Europe, with muddle-through less likely following the economic shock of COVID-19. • Even higher debt. • Inflation or deflation? As a minimum, it is unlikely it will calibrate as easily as we saw over the last few decades. • Inequality worsening before a backlash and reversal takes place. • The intergenerational divide also widening before millennials and younger voters soon start having the numbers to win elections and, in turn, reverse decades of policy. • Linked to the above, the climate debate will build, with more voters sympathetic and thus creating disorder.
We’re in the midst of a technology revolution with astonishing equity valuations reflecting expectations for a serious disruption to the status quo, the report says, questioning whether this is a revolution or bubble? Much depends on whether working from home becomes more permanent, and if so it predicts it will cause major changes to societies and economies.
“The result of the US election in November is unlikely to change the direction of travel,” the report says. “Over the course of this decade, relations will likely deteriorate into a bipolar standoff as both the US and China seek to prevent encirclement by the other. Companies that have embraced globalisation will be stuck in the middle if relations sour as we fear.”
There have been 16 occasions over the last 500 years, when a rising power has challenged the ruling one, and on 12 occasions it ended with war. One piece of solace is the report notes that military conflict is unlikely.
Watch: Donald Trump suggests ‘decoupling’ US economy from China
In the financial media, “Wall Street” typically means U.S. brokerage firms and often the analysts who work for them. They are known as “sell-side analysts.” They work independently of the firms’ sales teams, but there’s no question that Wall Street’s job is to sell stocks. So when you see a high level of “sell” ratings on a stock, take heed.
Tesla Inc. TSLA, +2.78%
is the poster child for high-flying stocks during this pandemic year. The electric-car company’s shares are up 435% this year and 891% in the past 12 months. And as the shares have shot up, many analysts have continually increased their price targets.
But not all of them have kept doing so. And now, among 37 sell-side analysts polled by FactSet, eight rate the shares the equivalent of a “buy,” while 11 rate them the equivalent of a “sell.” The shares closed at $447.37 on Sept. 2. The consensus price target among those analysts is $284.97, implying 36% downside for the shares.
Tesla is not yet included in the benchmark S&P 500 Index SPX, -0.81%,
although it is expected to be added soon. It is rare for any S&P 500 stock to have majority “sell” ratings, and none do at this time. But a quick look shows 33 stocks with “sell” ratings outweighing “buy” ratings.
Expanding to the Russell 1000 Index RUI, -0.85%
of the largest 1,000 publicly traded companies listed in the U.S. by market capitalization (including Tesla and subject to changes when stocks plunge), there are four companies with majority “sell” ratings.
Among the Russell 1000, there are 63 companies with “sell” ratings outweighing “buy” ratings. Here they are, sorted by market capitalization:
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