Category: Investing 2009
The analysis published under this category are as follows.Wednesday, February 18, 2009
Stocks and Commodities About to Go Bust? Questions and Answer / Stock-Markets / Investing 2009
I am very pleased to announce that we have arrived at the point of maximum confusion. The voices you hear are real, and what they are saying is also being generated by the haze within which we all find ourselves. You'd be best not to pay them any heed.
Your only goal now should be to maintain your sanity, as what happens next is sure to both terrify and surprise. Unfortunately, there's little we can say in advance to help you prepare for the shock and awe of what's imminent. Only stay calm. Keep your head. The impulsive and cocksure will be lost. The deliberate and even-keeled, saved.
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Tuesday, February 17, 2009
Coca Cola (KO) Keeps its Fizz Buy, Sell or Hold / Companies / Investing 2009
Horacio Marquez writes: Continuing with the trend of companies that have blasted through Wall Street's earnings estimates of late, The Coca-Cola Co. (NYSE: KO ) last week announced its ninth-straight quarter of double-digit earnings per share (EPS) growth and a third straight year of meeting or exceeding its long-term-growth targets. Excluding one-time items, the Atlanta-based company's earnings per share of 64 cents represented a 10% gain from last year's fourth quarter , beating analysts' expectations by three cents. In addition, Coke's unit-case volume was up 4% in the fourth quarter and 5% for the full year.Read full article... Read full article...
Tuesday, February 17, 2009
Stock Market Investors Searching for a Silver Lining / Companies / Investing 2009
“When people are frightened, they cut their time horizon dramatically, ... Even advisors will say to sell because they see portfolios crumble and they fear people will have nothing left. It's really not rational, but it does happen.”
That's what David Dreman wrote in his book Contrarian Investment Strategies . Now, almost 30 years later, it's looking like it's happening all over again.
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Tuesday, February 17, 2009
Stock Market Buying Value on the Dips / Stock-Markets / Investing 2009
Meet the new boss, same as the old boss – we don't get fooled again. Instead of lyrics to a Who song, it could easily be applied to Tim Geithner's unveiling of the new TARP plan. The market reaction is the same as that of previous Treasury chief Paulson. The rolling out of the initial TARP plan saw the markets embark upon a breathtaking dive that culminated with the first market bottom in mid-November. Let's hope that Tuesday's swoon does not follow the same path.Read full article... Read full article...
Tuesday, February 17, 2009
Shareholders Beware! Corporate Rights Issues Could Lose You Money / InvestorEducation / Investing 2009
There's about to be a rush of companies issuing new shares. And it could well be a trap for investors.
Companies use rights issues to try to tap their shareholders for cash by offering them first dibs on new stock offerings, normally at a chunky discount. And some analysts reckon this dash for cash is a harbinger of better times ahead. (More on that bullish view in a minute).
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Tuesday, February 17, 2009
Stock Market and Commodities Base Building Considerations / Stock-Markets / Investing 2009
The most salient feature of the markets at this juncture is the number of interim bases that have been building in several major sectors, including copper and other economically sensitive groups. In this commentary we’ll examine the bottoms currently being established for stocks and one of the key supports for the continued recovery in the precious metals mining sector, namely copper and copper mining shares.
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Sunday, February 15, 2009
Stock Market Battles Between Bullish and Bearish Signals / Stock-Markets / Investing 2009
Peter Schiff (Seeking Alpha): This is just the beginning“The intense scrutiny recently paid to my investment strategy in the immediate wake of the financial crisis of the last six months has unfortunately obscured the central element of my larger economic forecast. The standard line has been that although I was able to predict the crash, in the form of the housing collapse and the credit crunch, my expected fallout of a weaker dollar and global decoupling has been proven false. However, this assumes that the crash has fully played out. In reality, all we have heard thus far is the overture.
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Thursday, February 12, 2009
Historic Oversold Conditions in Almost All Financial Markets / Stock-Markets / Investing 2009
Larry Edelson writes: 2009 is already shaping up to be yet another year when almost all analysts and investors get the markets dead wrong. Again.
But you don't have to be a part of it. You can be on the right side of the markets.
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Tuesday, February 10, 2009
Stock Market Breadth Study Shows Positive Developments and Gold / Stock-Markets / Investing 2009
As outlined in an October 20, 2008 article Stocks Will Bottom Well Before Economy , we should not expect the stock market to wait for the "all clear" signal from an economic perspective before finding a bear market bottom. There is no doubt the economic news will get worse before it gets better. If we expect the technicals or charts to show improvement before the economy gets better, it makes sense to keep an eye on recent technical developments.Read full article... Read full article...
Monday, February 09, 2009
Industrial Commodities Drive Broader Stock Market Trends / Commodities / Investing 2009
As we think about possible economic recovery, it may be a good idea to watch the prices of certain materials inputs to industry. Perhaps they will perk up before other parts of the economy farther downstream from raw materials.
Here are weekly, 3-year charts for several basic inputs to industry used to make things and move materials and things around.
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Monday, February 09, 2009
Great Financial and Economic Problems and Great Fortunes to be Made / Companies / Investing 2009
“Peak oil, my a**. I've got hundreds of millions of barrels of the stuff in the Gulf [of Mexico]. We know where the oil is…we just can't get to it. I can't even get a contractor that can do the work to take my call.”
That's what an oil company executive told me (with a Texas drawl and an arm around my shoulder for balance) a little over three years ago.
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Friday, February 06, 2009
From Bailouts to Boondoggles, Betting on a Stock Market ‘B-Wave' Rally / Stock-Markets / Investing 2009
Dueling Scenarios Revisited - The following commentary is a follow-up to http://www.greenfaucet.com/... First, again I would like to make clear that I do not consider myself a trader or credentialed technician (chartist) and I prefer to focus on the longer term. But, as I stated in the referenced commentary above which I wrote two weeks ago, it appears that one of two patterns is emerging, and depending on which one prevails, it could determine how you should position your portfolio over the next few years.Read full article... Read full article...
Wednesday, February 04, 2009
Stocks Bear Market is Bottoming, Equities VS Gold Bullion / Stock-Markets / Investing 2009
Bearish Stock market looks like it has bottomed forming a similar pattern as it did in 2003. What is the better investment during an opportunity like this if this is the bottom: Stocks, Gold Bullion or Mining Stocks?Read full article... Read full article...
Wednesday, February 04, 2009
Stocks Bear Market Rally or New Bull Market? / Stock-Markets / Investing 2009
Nilus Mattive writes: The S&P 500 lost 8.57% last month, which was the worst January on record. Even worse, a January loss for the index has typically meant a full-year loss for the market about 75% of the time.
The big question right now is whether we will see another fall to the lows made back in November. And the bigger question is whether we will go even lower than that.
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Tuesday, February 03, 2009
Irrational Investors Buying into Deflation Scenario / Economics / Investing 2009
Glory Days? As I write this article on Super Bowl Sunday morning, I am looking forward to both the football game and the half-time show by Bruce Springsteen. When I think of the Boss - Bruce Springsteen, I always think of his classic song called Glory Days .
Perhaps Glory Days should replace the Star Spangled Banner as our national anthem. Old Uncle Sam could reminisce about his glory days . Such as the days when our country did not have Treasury secretaries from Goldman Sachs or not have a system-gaming, new Treasury secretary appoint a Goldman Sachs lobbyist as his top aide.
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Tuesday, February 03, 2009
Gold Consolidates as January Portends for Bearish Year for Stock Markets / Commodities / Investing 2009
Gold continues to consolidate near recent highs despite profit taking falls. It remains near record highs in British pounds, Euros (03-Feb-09 London AM Fix: $902.00, £636.02, €702.93 ) and many other currencies internationally as fiat currencies internationally come under pressure due to the unprecedented zero percent interest rates, quantitative easing, bailouts and stimulus packages.Read full article... Read full article...
Tuesday, February 03, 2009
Fixed-Income Investing: Safer Alternative to Equity Indexed Annuities / Interest-Rates / Investing 2009
Keith Fitz-Gerald writes: For many investors, the concept of an equity indexed annuity (EIA for short) - which establishes a guaranteed minimum rate of return, and the ability to capture the upside of the next bull market with no risk of loss - is proving irresistible. That's especially true at a time when the Standard & Poor's 500 Index is still down nearly 45% from its 2007 high of 157.52 and new U.S. President Barack Obama's stimulus plan has yet to be finalized.Read full article... Read full article...
Tuesday, February 03, 2009
Smart Money Investing in Debt and Emerging Markets / Stock-Markets / Investing 2009
“I think it was Ben Graham who said, ‘This, too, shall pass.' I think the same applies now…this, too, shall pass.”
That's what David Dreman told me last Friday. We talked about an hour after the markets closed. At the time, a Reuters headline proclaimed, “Worst January Ever for Dow, S&P 500.” The Dow sat at 8,000.
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Monday, February 02, 2009
Stock Market Performance at the Mercy of Grim Corporate and Economic Data / Stock-Markets / Investing 2009
An avalanche of worse-than-expected economic and earnings data again put pressure on Wall Street during the past month, resulting in four straight down-weeks and the worst performance of the major US indices for January on record.
“As January goes, so goes the year” is one of the most frequently quoted sayings about seasonal trends in the stock market. With the Dow Jones Industrial Index down by 8.8% and the S&P 500 Index 8.6% lower, the year is not off to a promising start.
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Monday, February 02, 2009
Trivial Corporate Earnings, Not-So-Trivial Investor Buying / Stock-Markets / Investing 2009
On Wednesday, after the markets closed, as well as Thursday before the open, the distinct majority of earnings surprises were positive. So, why on Earth did the Dow, Nasdaq, and S&P close down between 2.7% and 3.3%?
Because what is happening is exactly what I said was happening. Earnings and non-catastrophic news alone are not going to budge the market. The only event that will push or pull prices is the will of investors.
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