On the day that several deals are being done including a $5.3 billion move by one of the biggest private equity firms, KKR, it’s probably about time I show my appreciation for the world of private markets. Read more…
Non-financial companies in the S&P500 are now holding more money than ever, some $1.1 trillion in cash. This comes after some of the heftiest bond issuance ever in 3Q 2010. Read more…
We live in interesting times. We have a FED chairman who is now practically underwriting the stock market, gold is trading in the $1300s, and silver is flirting with $30 per ounce. While railing against the dollar has been fun, and exceptionally profitable, investors should have taken a reminder yesterday that metals aren’t all about the greenback. Read more…
It’s that time of the year again! About this time, everyone starts thinking “Thanksgiving turkey” but what they should really be thinking is “w-4 form.” Tax season is right around the corner, and if you’re getting a big refund, you’ve done wrong! Read more…
It ‘s a pure and simple fact that some stocks, futures, commodities, and other securities are highly seasonal. Much of this has to do with peak usage; oil, for example, peaks in the summer months, when the most people are driving. Retailers tend to peak during the Holiday season. That shouldn’t be much of a surprise, but thanks to a site I found today about the seasonality of certain investments, I’m astounded. Read more…
With the credit crunch and real estate bubble pop coming to a close while yields plummet to record lows, investors are again looking back into real estate investment trusts as a way to generate income with cashflow producing real estate. If you like dividend income, you’ll love REITs! Read more…
A combination of cheap credit and volatile markets is paving the way for rampant investment in virtually everything, from stocks to futures. This trade, part of a play on negative real interest rates, is one of the biggest effects from quantitative easing. Read more…
Coming out of recession, there are two ways for company’s stock values can grow fundamentally. A company can increase earnings and experience a rise in valuation, or it can experience multiple expansion, the result of an increasing price to earnings ratio. Read more…
While working on the wealth effect post from yesterday, I thought it would be important to cover lifestyle inflation, too. This is a topic that, in my opinion, should lead any talk of personal finance planning. Read more…
The wealth effect is a very commonly referenced term under the umbrella of Keynesian economic thought where perceived increases in the amount of available wealth increases spending and consumption, two positive short-run consequences. Most recently, Ben Bernanke cited the wealth effect for the second round of quantitative easing of $600 billion in cash. Read more…
You used to be able to judge a book by its cover. There was once a time when General Electric meant just industrials, when Google meant search engine, or when Berkshire Hathaway was a textile company. But today, mega companies are looking to grow in any way imaginable, turning into virtual ETFs as they poke and prod around for new ways to drive profits. Read more…
Never before have we seen a Fed chairman so direct about what he wants from Fed policy. Making the case for QE2, Bernanke verged from his charter, saying that he wanted higher stock prices, not lower unemployment or higher inflation, as is consistent with his charter. Read more…
I’ve been seeing a number of companies tout their employee-owned status on their products, so I figured why not make it a blog post? We’ll run through the basics of ESOPs, and employee-owned companies. Read more…
