Posted by Jeflin on December 11, 2008
This fancy for Treasury bills is no longer a flight to quality. It is an exodus away from all asset classes, followed by a musical chairs version of quality.
If investors were to regain their risk appetite and start buying riskier assets in the U.S. such as stocks, corporate bonds, and real estate, then the effect (decline in face value and the US dollar) could be spectacular.
Read the full article here.
Posted in Currency, Stocks, bonds | Tagged: bonds, Currency, investors, stock market, Stocks, Treasury, Treasury bills, Treasury bubble | 1 Comment »
Posted by Jeflin on November 28, 2008
Every day we open up the newspapers, we are hit by depressing news – what with retrenchments (DBS axes 900, NOL ships out 1000, Citigroup eliminates 52000 worldwide, etc) and pay cuts (Temasek staff and Cabinet ministers). Taken together, the “contributions” from DBS and NOL are close to surpassing the retrenchment figures for third quarter.
Read the full article here.
Posted in Business, Economy, Stocks | Tagged: Business, Economy, investment, investors, jobs, recession, retrenchment, risk profile, stock market, Stocks | Leave a Comment »
Posted by Jeflin on November 19, 2008
It is one way traffic: Dow Jones plunged below 8000, a first since 2003. There was a bear rally on Tuesday but it is a folly to be tempted by profits in all these technical rebounds. For those who are drawn in and end up selling in a panic, you risk doubling your losses. You are doing just fine having the bulk of your money in the bank. If you want to go long (very long), then just nibble at the stocks.
Read the fulll article here.
Posted in Business, Economy, Stock Indices, Stocks | Tagged: Dow Jones, investment, investors, stock market, Stocks | Leave a Comment »
Posted by Jeflin on November 13, 2008
Recession, recession, everywhere we turn, we are reminded of this dreaded scenario. For those who are still shy to utter the word “recession,” let’s not kid ourselves anymore. The earlier we face up to the truth, the faster we are on the road to economic recovery.
The week actually didn’t start off with a pall. On Monday, the bulls came charging back in Asian and European stock markets. Read the full article here.
Posted in Alternative Energy, Business, Economy, Oil, Stocks, deflation | Tagged: alternative energies, bulls, Business, deflation, Economy, investors, Keynes, Oil, recession, stock market, Stocks | Leave a Comment »
Posted by Jeflin on November 1, 2008
Red October, one of the worst month in Wall Street history, ended on a sweet note on Friday as stocks rallied to cap a week of impressive gains. For the week, the Dow Jones was up 10.1%, S&P 500 was up 9.5% and the Nasdaq had gained 9.8%.
There are storm clouds gathering but at the moment, investors are caught up in the euphoria and unmoved by grim economic indicators. Read the full article here.
Posted in Banking, Business, Economy, Inflation, Stocks | Tagged: banks, Business, Economy, Inflation, investment, investors, stock market, Stocks | 1 Comment »
Posted by Jeflin on October 24, 2008
Stock markets are now entering a period of painful decline as countries around the world face up to the prospect of recession. While interbank lending has eased tentatively as central banks’ measures to inject cash loans to banks unblocked the credit crunch, investors have little time to absorb the good news.
Read the full article here.
Posted in Banking, Business, Currency, Economy, Stocks | Tagged: banks, Business, Currency, Economy, investment, investors, recession, stock market, Stocks | Leave a Comment »
Posted by Jeflin on October 16, 2008
Let us look at the below comic strip:
Don’t you just love CEOs who talk about issuing options to align their interests with shareholders? They conveniently omitted that that they are aligned on the upside but without money committed like shareholders, they have virtually no risk and little downside.
Read the full article here.
Posted in Banking, Economy, Stocks | Tagged: banks, CEO, investment, investors, shareholders, stock market, Stocks | Leave a Comment »
Posted by Jeflin on October 11, 2008
The credit crunch is now the most critical challenge facing the US administrators and central banks around the world. Without loans to lubricate the system, perfectly sound businesses may not be able to meet short-term obligations, and consumers’ reluctance to purchase goods/services will force the economy into seizure with more shutdowns and rising unemployment.
Read the full article here.
Posted in Banking, Business, Stocks | Tagged: analysts, Banking, credit crunch, investment, investors, liquidity, stock market, Stocks, Wall Street, Warren Buffett | 1 Comment »
Posted by Jeflin on October 2, 2008
A dreadful scenario that has been bothering investors is that this recession drags on for years and stocks simply do not go anywhere. For the purpose of discussion, let’s assume that instead of a 1-2 year bounce back, the economy is indeed stagnant or experiences low growth for the next decade, resulting in mediocre returns from the equity markets.
Read the full article here.
Posted in Banking, Stock Indices, Stocks | Tagged: Banking, Dow Jones, Great Depression, investment, investors, stock market, Stocks, Warren Buffett | Leave a Comment »
Posted by Jeflin on September 24, 2008
Since Monday, the “Paulson Plan” has been thrust into intense debates at Senate hearings as Democrats and Republicans unite in their dislike of this mind-numbing $700 billion bailout of the nation’s
financial system.
I find such actions amusing, if not hypocritical. Read the full article here.
Posted in Banking, Properties, Stocks | Tagged: $700 billion bailout, banks, investment, investors, mortgages, Properties, stock market, Stocks | Leave a Comment »
