Why Mergers & Acquisitions are the Recovery Play
In this economy, mergers and acquisition news have been faint at best. If anything, economic climates are demanding that businesses curtail their budgets anywhere they may see fit. One area is certainly in mergers and acquisitions, where outside the banking industry, there has been little activity.
Companies Are Cheap to Others
Although some investors are still waiting [...]
How to Hedge Against the Treasury Bust
There is one market that hasn’t yet dried up with all the others: the treasury market. As the stock markets bounce between recent lows and highs on economic news and corporate earnings releases, the market for treasuries is sitting at near a standstill. Even as trillions of US debt will need to be funded this [...]
9 Reasons Investors are Staying on the Sidelines
Actions by world governments are steering investment dollars away from the stock markets. In addition to the economic downturn, investors have a variety of other reasons they’re not willing to rush into the market just yet.
What Will Happen Tomorrow?
No one knows what tomorrow will bring in the market. There could be a huge government takeover [...]
Why Index Funds are Falling Apart
The hedge fund industry is trimming down on its exchange-traded fund and diversified holdings. After peaking at 40% of all volume in October at the pinnacle of the crisis, exchange-traded fund volume has since descended to 35% of all stock market volume. The change is coming; investors are ready to start picking stocks again instead [...]
Can You Profit from the Changes in Mark to Market?
The FASB, or Financial Accounting Standards Board, has decided that banks will no longer have to mark the value of their assets to the market, pending that there is no liquid or actual market for the assets themselves. Under the old system, assets that weren’t regularly traded or did not have a market were generally [...]
Stocks to Pop on the $8,000 Homebuyer Tax Credit
The stimulus package is already stirring the real estate market, which has seen a huge jump in purchases in February. Half of homes sold were to first time home buyers, who are eligible for a 10% tax credit on the value of the home up to $80,000. Almost all buyers in the current real estate [...]
The Light at the End of the Market’s Tunnel
It is starting to feel like a bottom in the stock market, and similarly, a bottom in the economy. Recent economic outlook has been far better than even one month ago. A huge increase in home sales and durable goods suggests that spending is turning around, albeit slowly.
We’ve Only Had One Good Month
The markets [...]
Why You Should Forget All You Know About Investing
Financial advisors have long recommended that investors tone down their portfolio risk as they age to prevent the chance that falling equity prices will stifle retirement plans. However, as many have experienced over the past year and a half, stock prices have fallen off a cliff and now threaten the retirement of millions of people.
Throw [...]
Why Chinese Banks Won’t Default
The Chinese government ordered the nation’s five largest banks to raise their coverage on bad loans to 150% of the current amount in default. Previously, the banking industry looked to cover 130% of bad loans; however, weakening exports have sent the government preparing for more loan defaults.
Hunkering down in recession
Though there is no indication that [...]
Are You Ready for the Bear Rally?
Investors are looking long and hard at Citigroup CEO Vikram Pandit’s comments about the company’s profits for the first two months of the year. Word of his comments spread quickly, and investors reacted accordingly, if not over-reacted, and sent the major market indices up more than 7% in one day. Better than expected retail [...]
