Precious metals are skyrocketing. An ounce of gold, selling for less than $300 a decade ago, now changes hands at more than $1,400. Investors of all types are worried that the Federal Reserve is putting us on the road to currency devaluation and soaring… Read More
Investing Basics
It’s been a roller-coaster year for stocks, but one that will ultimately end well. Barring any unforeseen events, the S&P 500 will end the year with a gain of about 15.0%. This year brought with it a myriad of opportunities for profits and losses, from the commodities boom and M&A… Read More
This is the time of year when investors typically rebalance their portfolios and begin preparing for the year ahead. In preparation for the coming year, it helps to look back and think about the lessons learned from the previous year and how they can be applied for a profitable future. With that in mind, we asked some of StreetAuthority’s top experts what they learned in 2010 and how they hope to apply it in 2011. Here’s what they learned… ———————————— Here’s what I learned this year: “It’s the economy, stupid.”… Read More
This is the time of year when investors typically rebalance their portfolios and begin preparing for the year ahead. In preparation for the coming year, it helps to look back and think about the lessons learned from the previous year and how they can be applied for a profitable future. With that in mind, we asked some of StreetAuthority’s top experts what they learned in 2010 and how they hope to apply it in 2011. Here’s what they learned… ———————————— Here’s what I learned this year: “It’s the economy, stupid.” The market isn’t going to charge ahead no matter how good earnings look or how optimistic the Street may be when so many people remain out of work. Uncertainty over the tax code and health care hasn’t helped. But it’s one thing for the market to sputter or stall, it’s another thing entirely for such conditions to keep the best companies down. So while the S&P 500 didn’t blow up anyone’s skirt, there were plenty of big winners in 2010, despite the tough business climate. Cutting-edge technologies and products will always create value, and those companies’ shareholders will be… Read More
Most investors take a look at them before they leap into stocks, but analyst recommendations don’t necessarily have a great track record. So, before you take a buy/sell call on faith, you may want to consider the fact that the folks doing the ratings aren’t always right. But that’s not… Read More
As you continually assess current events for any impact on your portfolio, you also need to spend time thinking about what events may be on the horizon. And although none of us has a crystal ball, it’s important to try to anticipate the direction of economics, sector activity, politics and any other issues that may affect the investment environment. The list below contains possible scenarios for the next 12 months that could impact your portfolio in a meaningful way. 1. New jobless claims fall below 400,000 in the first quarter, and meaningful job… Read More
As you continually assess current events for any impact on your portfolio, you also need to spend time thinking about what events may be on the horizon. And although none of us has a crystal ball, it’s important to try to anticipate the direction of economics, sector activity, politics and any other issues that may affect the investment environment. The list below contains possible scenarios for the next 12 months that could impact your portfolio in a meaningful way. 1. New jobless claims fall below 400,000 in the first quarter, and meaningful job creation begins in earnest in 2011 as companies realize that they’ve squeezed out all possible productivity enhancements and need to re-build depleted workforces. The unemployment rate is slow to fall, as previously discouraged workers start to look for work again. But investors focus on the monthly jobs creation number instead of the actual unemployment rate. 2. Noting the impressive synergies that Delta (NYSE: DAL) derived from its merger with Northwest (which were only belatedly appreciated by investors), investors continue to bid up shares of UAL… Read More
When I went to the Berkshire Hathaway (NYSE: BRK-B) annual meeting in 2009, there was something I really wanted to do. No, it wasn’t a chat with Warren Buffett. That’s almost impossible at the yearly “Woodstock for Capitalists,” and only first-timers make the trek… Read More
The Republican and Democratic positions on the long-term budget woes are clear: The GOP has pushed strongly for sharp spending cuts to help bring down the national debt, while the Democrats believe current spending efforts to get the economy on track now will boost government revenue and close… Read More
My first rule of investing: never buy stock in a company simply because you think it will be bought out. Simply put, most rumored deals never happen. But I do like to keep an eye the rumor mill, because it can often point the way to intriguing companies that still… Read More
With companies sporting abnormally high levels of cash these days, they’re feeling greater pressure to give something back to shareholders. A dividend hike is the normal route, but an increasing number of companies are initiating massive stock buybacks. I looked… Read More
You can still practically smell the wreckage. Stocks of the nation’s largest banks, most of which were overexposed to toxic subprime assets, crashed and burned during the financial crisis. The KBW Bank Index (an index of the largest American banks) fell from a high… Read More