Archive for the ‘S&P 500’ Category
Posted by Larry Doyle on April 7th, 2009 10:08 AM |
The stream of data and market moving news is non-stop. I found these items of interest and look to share them with you as I believe they provide interesting insights and perspectives from around the world. I beg your indulgence if some of these items are not news to you, but if they are I hope they help you “navigate the economic landscape.”
1. Australia’s central bank cut its overnight lending rate to 3%, the lowest level in 49 years. While that rate is one of the highest rates in the developed world, it was widely expected to be left unchanged. Australia has had one of the strongest economies in the world. This cut is an indication the Australian central bank believes their economy is slipping into a recession.
2. Japan’s exports are reported to be down 40% versus a year ago. Additionally, Japan’s industrial production is reported to be down 30+% during the same time period. These economic figures are significantly weaker than most other developed economies. As a frame of reference, most other developed economies’ industrial production is down 10-15%. Clearly, Japan is so dependent on exports and it is now paying the price of not having more fully diversified its economic foundation.
3. Gold is now trading near $880/oz. A month ago this precious metal was trading slightly above $1000/oz. Why is gold down recently? Coming out of the G-20, there are expectations that the IMF may sell some gold reserves to raise funds for low-income countries. I commented the other day that gold is not perfectly correlated with inflation due to changing fundamentals and technical variables in the gold market. This development with the IMF is a perfect case in point of my assertion. (more…)
Tags: Add new tag, AIG, AIG selling asset management division, Australia cuts overnight lending rate, earnings for S&P 500, G20, gold, gold price declines, Japan's exports and industrial production declines, Japanese economy, Ken Rogoff, rating agencies receiving government assistance
Posted in AIG, Australia, Bailout, Banking Institutions, Barack Obama, Business, Current Affairs, Economic Stimulus, Economy, Equity Markets, Foreign Affairs, G20, General, Global Finance, S&P 500, Wall Street | 2 Comments »
Posted by Larry Doyle on March 10th, 2009 2:37 PM |
The stock markets are having a very robust, broad based rally today. All major market averages are up almost 5% or better. Gold is down approximately 3%. Foreign stock markets also had significant rallies. Can we put this pain behind us? Is it finally over?
In dealing with markets and the economy, it is never over. The critical, mental acuity in dealing with the markets and economy is understanding the dynamics at work and the associated risks. Along with a host of other goals, I firmly hope that my work here at Sense on Cents is able to help people understand those dynamics and the accompanying risks. It is a process, but I will keep after it and I hope you find it enlightening and informative. If so, please comment and share Sense on Cents with your friends. (In fact, you can share this piece, and any other piece here at S o C by using the “ShareThis” link underneath the title line of each story). Let’s assess today’s market action. (more…)
Tags: day trading, earnings, Economy, EU, foreign stock markets, global economy, gold, government bonds, housing, Martin Feldstein, rallying market, Risk, Sense on Cents, Unemployment, Vikram Pandit
Posted in American Consumers, Business, Citigroup, Commerce, Credit Risk, Economic Stimulus, Economy, Employment, Equity Markets, European Union, Global Finance, Housing Crisis, Insurance Industry, Real Estate, Risk, S&P 500, Stimulus Tax Package, Wall Street | 8 Comments »
Posted by Larry Doyle on February 28th, 2009 4:20 PM |
Warren Buffett’s annual letter to shareholders is always a highly anticipated event by market participants. Given the fact that Berkshire is effectively a diversified holdings company, Buffett has a unique perspective into a wide array of businesses. He also has the wisdom of investing over many years and through many challenging markets.
Well, if misery loves company, it has a solid partner in the person of Warren Buffett because 2008 was Berkshire Hathaway’s worst year ever. In reviewing Buffett’s letter allow me to offer some highlights. For those who have an even passing interest in the markets and investing, reading this letter is akin to attending an opera by Pavarotti.
I beg your indulgence as I attempt to be the opening act and provide an overview of the “Oracle of Omaha’s” thoughts on the markets and economy: (more…)
Tags: American Express, Berkshire Hathaway, Economy, Fannie Mae, Freddie Mac, markets, OFHEO, Oracle of Omaha, Pavarotti, U.S. Treasury, Wall Street Journal, Warren Buffet
Posted in Banking Institutions, Business, Commerce, Current Affairs, Deficit, Economic Stimulus, Economy, Employment, Equity Markets, Fannie Mae, Freddie Mac, General, Global Finance, Housing Crisis, Risk, S&P 500, Unemployment, Wall Street | 1 Comment »
Posted by Larry Doyle on February 28th, 2009 10:13 AM |
Prior to going to the comments section of my son’s report card, human nature dictates that I first look at the grades. In that same vein, let’s see how the markets performed for the month of February:
Let’s review my specific projections from the January 2009 Recap: (more…)
Tags: Budget, Canadian dollar, commodities, corporate bonds, correlation, crowding out, Deficit, DJIA, Economy, equities, Euro, financial rescue package, flight to quality, foreclosures, gold, Japanese yen, John Mauldin, markets, mortgage bonds, municipal bonds, NASDAQ, Obama Administration, oil, performance, S&P 500, Sense on Cents, sovereign credit risk, U.S. dollar, Washington D.C.
Posted in American Consumers, Australia, Barack Obama, Commerce, Congress, Deficit, Democratic Party, Eastern Europe, Economic Stimulus, Economy, Employment, Equity Markets, General, Global Finance, Government funds, Hedge Funds, Home Loan, Housing Crisis, Money Market Funds, Mortgage Crisis, Mortgages, Obama Administration, Real Estate, Republicans, Reputation, Risk, S&P 500, Stimulus Plan, Unemployment, Wall Street | 8 Comments »
Posted by Larry Doyle on February 27th, 2009 10:24 PM |
Welcome to Sense on Cents!!
Why am I so enthused about the potential for this site? I could write at length in answering that question, but in short I firmly believe the “product” delivered here is in very strong demand and very short supply. Collectively as we navigate the economic landscape we will learn, share, and become more comfortable with the economy, the markets, and global finance. While the economy dominates our news currently, where can one go to make sense of it? Welcome to Sense on Cents!
Sense on Cents is truly a reflection of my professional instincts and personal interests. I sincerely believe this site can elevate the level of financial literacy, economic knowledge, and market insights for those who come here. Additionally, I am pleased to provide a wealth of information on career planning, global perspectives, financial primers, and meaningful literature. The sharing of opinions and active dialogue are strongly encouraged. I hope you feel comfortable coming here, find it to be of great value, will offer your perspectives, and will spread the word! While making “sense on cents,” I feel strongly we will find the relationships and returns to be very rewarding, especially relative to the risks!
I thank Larry Johnson for his tremendous support from my very first day at No Quarter and look forward to a continuing, close working relationship with him, Susan, and all involved at NQ. I sincerely hope and believe our efforts can and will promote our mutual interests.
(more…)
Tags: consumers, financial aadvice, financial planning, government programs, New York Times, Robert Shiller, Sense on Cents
Posted in Business, Commerce, Current Affairs, Economy, Equity Markets, Families, General, Global Finance, Government funds, Insurance Industry, Money Market Funds, Mortgages, Real Estate, Risk, S&P 500, Wall Street | 9 Comments »
Posted by Larry Doyle on February 25th, 2009 8:49 AM |
The equity markets across all sectors have gotten off to a very rocky start for 2009 (down 15% on average). In the midst of that, a lot of institutions and individuals have fled to the safety of short term government funds, money market funds that now benefit from a government backstop, and other cash alternatives. On average, these investments pay Wall Street and fund managers perhaps anywhere from .1% to .3% of the assets being managed. Those fees will not make the managers rich anytime soon. How do they respond? Welcome to the world of “principal protected notes.”
These structured notes are marketed to track an underlying index (say the S&P 500) while guaranteeing no loss of principal. Wow. Sounds like a great product. Where do I sign? Well, hold on just a second. I am not stating that structured notes do not have some degree of merit, but one needs to be very cautious in fully understanding how these notes work before purchasing. (more…)
Tags: assets, credit exposure, Economy, equity, fees, Fund managers, government, markets, money, S&P 500, Wall Street
Posted in American Consumers, Banking Institutions, Credit Risk, Economy, Equity Markets, Fund managers, General, Government funds, Money Market Funds, principal protected notes, S&P 500, Structured Notes, Wall Street | No Comments »
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