The Next Depression: It’s worse than they think
“Beyond the Crisis… With most of the world’s economies officially out of recession, the FT launches a series examining the legacy of worst global economic crisis since the 1930s,” says the FT. But according to the figures below the headline, the crisis wasn’t so bad. The US economy walked backward only 3.5%. Now, it’s making progress again.
The FT editors should keep their eyes on the road. The ‘recession’ did more damage than they think. And it isn’t over… There’s more trouble ahead.
Jim Cramers Real Money Sane Investing in an Insane World
Jim Cramers Real Money Sane Investing in an Insane World
How do we find hot stocks without [...]
Crash Alert: The Future and Failure of the U.S. Dollar
Bill Bonner (The Daily Reckoning)
In the short run, it might have enough life in it to bite investors on the derrière
London , England
We got back from South America on Friday… ready for a rest. So, we spent the weekend reading… and occasionally, thinking.
What we’ve been thinking is that the dollar is dead meat in the long run. But in the short run, it might have enough life in it to bite investors on the derrière.
The US stock market rose 73 points on Friday, to bring the Dow just 30 points south of the 10,300 mark. Why is this level important? It’s not really. But it reminds us that this is still just in “bounce range.” Big drops…
The Great Depression Ahead How to Prosper in the Crash Following the Greatest Boom in History
The Great Depression Ahead How to Prosper in the Crash Following the Greatest Boom in History
The [...]
Japan’s Lost Decade – is it too late for U.S. to learn from their mistakes?
Bill Bonner (The Daily Reckoning):
The Dow rose again yesterday – up 44 points. Gold went up too – to a new record of $1,114.
Can anything stop stocks and gold?
Trees do not grow to the sky, dear reader. And for every bounce there is a bust.
“It’s amazing, the US is doing everything that Japan did wrong,” said a friend yesterday.
Let’s see… in the 1980s Japan’s corporate leaders thought they were going to take over the world. Investors thought so too. They expanded. They wheeled. They dealed. Prices shot up and they all thought they were geniuses.
In the ‘80s, everyone wanted to be Japanese. Management consultants used Japanese words to describe commonplace insights.
For example, instead of saying…
A new Dow bubble
The celebration over the Dow hitting 10,000 is over, and now the hangover is kicking in. We’re probably in the middle of a new Dow bubble, BreakingViews.com writes.This new bubble comes after the dot-com bubble — in which the Dow first crossed 10,000 …
The rebirth of the American consumer
Don’t look now, but a nation of shoppers is about to be reborn. Thanks to rising stock prices, stabilizing home values, increased savings, improved confidence in the economy, and reduced debt, there is building evidence that the quintessentially Amer…
The Five Stocks to Watch This Week
The earnings season beginning today (Tuesday) is shaping up to be an important one, as it could have a significant impact on a struggling stock market rally.
Since the stock market rally reached a pinnacle nearly two weeks ago, the Dow Jones Industrial Average has lost about 3.3% while the Standard & Poor’s 500 Index has fallen about 3.7%. And if this week’s earnings report come in below expectations, the rally that helped stock prices surge more than 50% could come to an abrupt end.
Fortunately, many of the companies set to report earnings this week are traditionally strong performers and for the most part, companies that have weathered the financial crisis. But not all of them have met Wall Street’s expectations.
The quarterly results…
Volatility- The Essence of Stock Options
Last week Ron Ianieri from OptionUniversity.com came and gave us a great lesson on the misinformed traders out there and how options are a great tool (re-read it here), and today I asked him to teach us a bit about volatility and options! If you’ve not yet checked out Ron’s new online video do it [...]
Investing in ADRs: The Most Powerful Way to Reduce Market Risk
It’s official: You can reduce your investment risk simply by chucking darts at a list of stocks, then buying them.
That’s if you believe a Nobel economist, of course. His crude “experiment” was the start of “modern portfolio theory” decades ago. The downside, however, was that with a reduction of risk came a dampening of profits. So scratch that idea.
How about this? A startling study in the late 1970s showed that owning a portfolio of large U.S. companies with international divisions drops your risk 10% below a domestic stock portfolio. Much better. But that wasn’t the eye-popper…
The study also found that owning stocks in international companies cuts your risk in half…
Take that, “efficiency” theorists! Yet the stuffy professors still tried to refute…
7 picks that will give you safe 7% returns
This article was written by InvestorPlace’s Neil George.Over the past several months, we’ve had some nice price action in some of the world’s big stock market indexes. The S&P 500 has screamed up this year to record a gain of over 10%. But the …
The Only Tool You Need to Predict the Market’s Moves
The S&P 500 is already starting to stage the next leg of its downward slide. But don’t let that scare you…
With the small-cap research tool I’m about to show you, you’re well on your way to seeing how the market moves ahead of the herd.
Here’s everything you need to know…
A while back, I wrote to you about our Small-Cap Recovery Index. The index is composed of fundamental data from 100 small-cap stocks, as well as economic factors like unemployment and personal savings rate.
It’s designed to give us a glimpse at signs of recovery for the stock market.
While the market has rebounded in a big way since it bottomed in March, many investors are concerned that stock prices are already getting…
Which is right: Bullish stocks or bearish bonds?
Normally, different asset classes tend to price in the same economic scenario. After all, professional traders, whether they deal in stocks, bonds, commodities, or derivatives, are all looking at the same data. But this isn’t happening right now.
In …