This year has been undeniably slow for any investor looking for IPO activity. Just over a dozen companies have gone through a 2009 IPO, compared to 35 last year. The trend to inactivity hasn’t been stopped, despite rising stock prices. Oddly enough, IPOs are booming in private markets, where businesses aren’t burdened with costly regulations and accounting rules. Read more…
The stimulus package wasn’t a small measure, and as such it has a very big influence on the wellbeing of the economy. It was just four months ago that the nation would face economic peril were the stimulus left unpassed. But today, only 6% of all funds released through the program have been spent, and most projects won’t even begin until 2010. Read more…
My timing was off a bit with this stock, which I can surely acknowledge. However this is one company I think everyone needs to add to their portfolio, especially at this price. The fundamentals, and technicals, are right in line. Read more…
Inflow and outflow data is king information on the market. You know how much money is flowing out, how much is pouring in and where the “big money” is tossing big money. As much as I hate exchange-traded funds for how they operate (don’t even get me started on commodity funds) I realize that they are an excellent indicator for forecasting the future. Read more…
In my short life I had thought I had seen it all. I was a believer in that the stock market finds the best price of a stock pending all of the information that is presently known. Now I stand in disgust after listening to Jim Cramer explain how he, and many other hedge fund operators, move the market on a daily basis. There is a YouTube Video to follow! Read more…
The stimulus package added all kinds of excellent benefits for people in the United States. Among those new tax credits is a $2500 tax break for going to college. Those who spend more than $4000 in a single year on their education will get a $2500 tax credit which is 40% refundable. (Up to $1000 cash back). Read more…
I could have never predicted Wall Street’s reaction to Friday’s unemployment report. The initial report came out that 598,000 more people lost their jobs in January making it the worst unemployment figures since this “crisis” began. The numbers were several percentage points higher than what the market was looking for but due to timely events in the Senate the market flew up the charts quickly to end up 217 points on the Dow. Read more…
Emerging markets got smacked in the latest global slowdown. China, which had and is booming at record rates of 10% per year saw its stock markets lose a whole lot of value. I think the best place to be right now is in the emerging markets scene as turnarounds in developed areas will create even bigger booms in the growing economies of the world. Read more…
How long do I hold this stock? I bought it just under $40 and today they put the icing on cake by announcing layoffs due to the grime economy. What price does everyone think this stock will end up after the country enters the expansion period after the recession? Also, should I buy more as it dips lower in price.
It has been just over a year since Altria spun off its Philip Morris International business to form a new company under the ticker PM. Since the spin off Philip Morris has sunk down to $40 per share off from an IPO price of $50 per share. It shouldn’t be long before this stock comes back and comes back big. Here is my analysis: Read more…
The Dow to Gold ratio is often regarded as the most simple, yet surprisingly accurate and fundamental view of the economy and the stock market. The dow to gold ratio is following a very simple trend, but its not quite over yet.
While 2009 is set to be an already great year when cash makes it way back to market, I like to identify technical reasons and rationale for why the stock market will follow what the fundamentals are telling us. This time around the technical analysis is completely in favor of a great start to 2009 as two strong trends are forming on both the NASDAQ composite and the S&P 500. Read more…
A division of Mastercard, known as SpendingPulse calculates consumer spending on its cards and other methods to determine how much money was spent over the holiday season. Even though Amazon made it out with a great holiday season, offline retailers were destroyed with a drop anywhere from 2 to 4% and excluding car and gas sales a drop of 5.5 to 8%. Read more…
Candlestick analysis is adorned by some and hated by others. I find candlestick analysis to be a great way to look into the price action of a stock, especially considering I prefer momentum indicators to most others. Looking back through historical data (think October 2007) I found what predicted perfectly the market top. Read more…
There is a new trendline that traders should consider on Monday open. The market has been in a downtrend following the collapse of the financial world and worries of a continuing recession. Many traders are calling for a late year rally as the volatility in the market ebbs and the fears investors. Read more…
With RSS syndication you’ll be able to get updates to your desktop the second a new article is added. I’ve written a short tutorial for adding InvestingBlog.org to your feed reader:
I prefer RSSReader, its simple, doesn’t have many features (which makes it easy to use) and it finds RSS feeds quickly. Other RSS readers cost money or require a signup at another site. This is the best free RSS Reader I have found so far. Read more…
The automotive bailout continues to go through the legislative branches and then to the President for signature. I would have blogged about this when it first appeared that the automotive bailout would come through, but just as expected Republicans in the senate are taking a hardline approach on future bailouts. Senators have lined up to show their lack of support for the $14 Billion bill, which is of course just 2% of what Congress tossed the banks in the $700 Billion bailout.
Ford is the only one of the Big Three refusing government help this time around, perhaps banking on the idea that American’s will buy Ford automobiles to show their support for a company turning down Federal funds. Or it could be that the Big Three will become the Big Two, then the Big Ford when GM and then Chrysler fail due to their own debts. Read more…
The bailout of the banking industry produced a few up and down days of volatility. Half of the trading populace was satisfied with the bailouts while other times traders weren’t quite with it, selling quickly when the initial $700 Billion TARP program was produced.
Now the investing class has to digest a new bailout to the middle class and the entire American populace. It has become apparent that the automotive bailout will go through with ease as many democrats and republicans across the isle are seeing the need to prop up the middle class and their take home wages. The automotive bailout is being pushed to save millions of union jobs in both the assembly of cars and trucks and also to save the businesses that supply the needed parts to the assembly lines. Read more…
Last week it appeared that the Friday surge was enough to break through the downtrend. This Monday disproved that after the Dow and major US indices plunged several percentage points from their opening price to once again fall within the limits of the downtrend and continue the fall. This Friday yielded a very similar result to that of last, but this time could we actually be out of the trend? Read more…
The Treasury publishes the daily yields for their securities. The yield curve is essentially a natural phenomenon that happens when yields slowly rise per annum as the length of the investment grows. The most important part about the current yield curve is that it shows one of the largest divergences between short and long term interest rates. The 1 month Treasury is yielding just 1/12 of the number stated per month, that’s .003% per month, AWFUL.
To make sense of the yield curve lets first take two different investment timeframes and work them out to find out the difference in total return on an investment of $100,000. We’ll use the 1 month and 2 year yields to determine how much more an investor would make by locking up their money for 2 years instead of reinvesting into one month securities over and over. Read more…
Following Japan and the Eurozone, the United States is officially in recession. The National Bearau of Economic Research and its economists determined that in fact the United States is in recession and that it had been since December 2007 just after the housing bubble began to burst.
This announcement prompted Ben Bernanke and Henry Paulson to make statements regarding the response of the FED and Treasury in America’s recession. Ben Bernanke wouldn’t rule out a rate cut but said that they could only do so much. He favored government programs, the recent TARP program and insuring transactions to lower interest rates. Henry Paulson mostly agreed but traders are still pricing in a cut next FED meeting. Read more…
The S&P500 and the DJIA made impressive gains this week after toppling downtrends that have kept the market quiet for the past few weeks. The S&P500 bounced tremendously off its lows with the Dow replicating the trading action though not as strong as most would have hoped. The turnaround was fueled mostly by large selloffs that have priced in virtually no good news from the market. Each news item that comes out if good will bring large bounces while bad news is unlikely to do as much damage. Read more…
From Mastercard to Visa to American Express and Capital One, the credit card companies are going to stage a huge rally. The Fed announced today two new programs that would total $800 Billion of new liquidity to consumer creditors and to Fannie and Freddie. $200 Billion of the new money will be dedicated to consumer credit such as auto loans, student loans, credit cards, and some small business loans. Read more…
Each year investors of all sorts and account sizes utilize their stock losses to rack up huge tax gains. Individuals are able to sell off depreciated stock to offset capital gains. Investors are able to match up however large losses against gains ($50K loss against $50K gain= 0 capital gain and no tax). Investors can also opt to take up to $3000 more in losses than gains, thus resulting in a drop of income by $3000. Any amount above $3000 can be carried over and deducted the next year. Read more…
When comparing PE ratios against their historical averages its easy to see the tech industry as one of the most historically cheap sectors on the market. Single digit and even PE ratios lower than the teens are out of the ordinary for tech stocks which enjoyed triple digit multiples less than a decade ago and up until the market crash this year were trading for 20+ ratios. Read more…
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