October 4, 2011 Finally, it appears that Europe may act – right or wrong, they appear ready to do something about the sovereign debt crisis’ of Greece, Italy and other PIGS nations. We have used cash and short positions to hedge against the markets over the past five months and they have helped considerably, but…
With the heads of Germany and the European Central Bank getting along about as well as Obama and the Tea Party, the European Union is moving quickly towards total political failure. Weeks of disagreement by Europe’s political and financial leaders have let the crisis move far ahead of their discussions.Last week Italy was dragged into…
I always emphasize the macro economy and its importance in making sound investment decisions and at this unique time it may warrant added consideration. With the developed economies’ governments and central banks having overspent, overpromised, and overprinted, the environment is unlike that which we have ever seen on a world-wide basis.
Overview: With recent volatility, I think a note on basic investing is valuable. First, markets move both up & down. Don’t get too elated when they make big moves up or too anxious when they make a big move down. Ask yourself if anything has really changed or is this a short-term reaction of traders.…
The following article is posted courtesy of AUSTIN WOMAN MAGAZINE and features Melanie Johnson of Beck Capital Management… Managing money poses special challenges for women, but these 10 tips can help you get on the road to financial independence. by S. Kay Bell Everyone, regardless of gender, needs to have a financial plan. But women…
Louis Rukeyser – interview date Oct 16, 2008; publish date Oct 20, 2008. Top of page 2, I recommended avoiding financials (financial index is down over 34% since that day), buying gold (up over 65% since), and under “What to Buy Now” I suggested FCX (+200%), MCD (+49%), YUM (+%), and APL (+327%), all included…
2011, What’s in Store… Happy New Year and may 2011 investing be as profitable as 2010. As we enter 2011 we can expect a mixed bag of opportunities and challenges. Emerging markets continue their growth while the U.S. hangs on and Europe fights for survival under mountains of debt and devaluing currencies. Since August, when Ben…
THE ECONOMY: QE2 is all over the news these days and I am not referring to the transatlantic ocean liner. Quantitative Easing, part II, Ben Bernanke style, includes another $600 Billion of money-printing with another $200B-$300B of rollover (notes due and being refinanced). The Fed’s idea was to keep interest rates near zero by purchasing…
ECONOMY In March 2009, the Fed began its “shock and awe” experiment with “quantitative easing” (QE-1) buying $1.75- trillion in Treasury and mortgage backed securities (MBS’s). The fed funds rate was slashed to 0.25%, yet US-banks weren’t lending the excess cash to the private sector. Even after the first round of QE ended in March…
Yuan up, dollar down, gold up, U.S. GDP down, emerging markets up, housing prices down, government spending up, sentiment down, unemployment up, and markets up and down. Sounds a bit disjointed, but actually it all paints a fairly consistent picture. MARKETS UP AND DOWN August was the worst month for the overall markets since the…
I am often asked, “How can you square weak economic numbers with strong corporate profits and a good investment environment?” Though seemingly contradictory, it is not as strange as it sounds. First, economic numbers, like GDP growth, are seasonally adjusted and compared to the previous quarter, while corporate profits are generally quoted on a year…
Individual investors and business appear to be on hold, wondering about the economy, company earnings, and the next blow from Washington. Quarterly earnings reports will begin next week and though the economy may be slow, I expect earnings to look good. Then we have the mid-term elections just over four months away, where we can…