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What OPEC Has to Say about Oil Supplies
So far, 2008 has not been kind to Chinese-listed stocks on the benchmark Shanghai Composite Index (SCI), as the negative bias and downward selling pressure have In a nutshell, the Organization of the Petroleum Exporting Countries (OPEC) says enough oil is being pumped on any given day that there is no need to up production. Plus, the weakened U.S. economy also means weakened consumption, which further underscores the need for more barrels of oil per day. Well, hands up whoever thinks that this statement DIDN'T push crude oil to a record high of over $113.00 per barrel this week! Anyone? Didn't think so.
More Oil Price Hikes Could Be on the Way
So far, 2008 has not been kind to Chinese-listed stocks on the benchmark Shanghai Composite Index (SCI), as the negative bias and downward selling pressure have remained intact. Since trading at a 52-week high of 6,124 in late October 2007, the SCI has been on a steady downtrend, declining to 3,348 on April 15, down 45%, including an 18% decline in the first quarter. With the SCI below key moving averages, a major correction and trend reversal have
occurred. For traders and investors, we now need a base to form for the selling overhang to occur and then for buyers to re-enter the market.
What Do the Earnings Season Numbers Mean?
It's very early in the current earnings season, but, so far, the numbers haven't been too bad. In fact, quite a few Dow companies reported first quarter earnings that beat consensus estimates. Many corporate outlooks that have been reported are not too shabby either, which is helping investor sentiment in the broader stock market considerably.
To Make Money in the Stock Market, Follow the Stock Market
Big day on the stock market yesterday... Amid doom and gloom from everyone that can read the business section of a newspaper, International Business Machines Corporation (NYSE/IBM) reported that its earnings in the first quarter of 2008 jumped 26% to $2.32 billion. IBM even raised its earnings forecast for the year.
Trading Strategies to Help You Survive Market Downturns
Emotional investing is every investor's worst enemy. Holding a stock that's price is rising is a wonderful feeling. Watching the stock go even higher after you've sold it can be aggravating. But when markets are sinking, as they have been doing during the first quarter of 2008, many of you have ended up stuck with having to make the worst decision that unfortunately every investor has to make at some point -- should you hang in there or to throw in the towel?
Wait for Chinese Stocks to Settle
So far, 2008 has not been kind to Chinese-listed stocks on the benchmark Shanghai Composite Index (SCI), as the negative bias and downward selling pressure have remained intact. Since trading at a 52-week high of 6,124 in late October 2007, the SCI has been on a steady downtrend, declining to 3,348 on April 15, down 45%, including an 18% decline in the first quarter. With the SCI below key moving averages, a major correction and trend reversal have
occurred. For traders and investors, we now need a base to form for the selling overhang to occur and then for buyers to re-enter the market.
Track Record of Success Could Mean Bigger Profits
Not too long ago, I wrote about DeVry, Inc. (NYSE/DV) which runs DeVry University, Advanced Academics, Ross University, Chamberlain College of Nursing and Becker Professional Review. This company has distinguished itself with a long-term track record of operational growth and financial success for stockholders.
The Fastest Growing Economy in the World
Surprising analysts, who had expected China's economy to start slowing this year like the economies of other countries, China reported yesterday that its economy grew by 10.6% in the first quarter of 2008.
Bond Buying Simplified
So, here are the options for bond buyers: You could buy bonds with high yields with various maturities. Or, you could buy deeply discounted bonds — the so-called zero coupon bonds — to avoid reinvestment risk. Or, you could buy floaters, which are the bonds that vary in price as interest rates increase or decline.
Chaos in Retail Sector Could Mean Chance to Buy
For the past year, I have been warning readers about the risk of investing in retail stocks given the declining consumer confidence, higher gasoline prices, and the weak housing market that has negatively impacted household wealth and created a poverty effect.
Cheer Up — Some Stocks Are on the Rise!
Is there any good news out there? Are there any stocks going up in this market? The answer to both questions is "yes." As always, there is money to be made in any market environment, as long as you own the right stocks. It's always been that way, and it always will be.
The GE Disappointment
The big news on the stock market Friday was disappointing earnings news from General Electric Company (NYSE/GE). The company cut its 2008 profit forecast Friday, while the latest quarterly earnings declined for the first time in five years.
A Stock Selecting Tip Right from the Headlines
Here's an easy stock selecting tip staring at investors right from the headlines. Identify a company that manufactures a real product, preferably an expensive one, and then turns around and sells that same product to customers eager and loaded to buy it. I agree, but in the current economic environment, these things are easier said than done.
Waiting Out the Economic Storm
The reality of an economic slowdown in the United States and globally took a step forward on Tuesday after the International Monetary Fund (IMF) suggested that the credit crisis that is spreading worldwide continues to be a major threat to economic growth.
Will this Great Stock Turn Around?
While some U.S.-listed Chinese stocks are enjoying renewed enthusiasm from investors, many are not doing anything in this market. Business is great, but most investors still don't have the appetite right now for highly speculative securities. This is not a surprise.
The Only Real Long-Term Threat to the U.S. Economy
The bank crisis... the banks will get over it. Remember the bad loans to the tech industry, third-world countries, and the Resolution Trust fiasco of the 1980s? The banks always recover. So does Wall Street. The housing market crisis... it too will eventually go away. Property booms are followed by property busts. It has always worked that way.
A Roadmap Out of Asset-Backed Commercial Paper
So, in August of last year, it became painfully clear that the U.S. subprime mortgage sector was nearing a complete collapse, being tied to the underhanded U.S. housing loans, to say the least. What started as a small brush fire in an obscure market segment spread quickly and violently, impacting other types of derivatives, regardless of the type of loans serving as underlying assets.
High Oil Prices Not Just Bad for Drivers
Driving is quickly becoming a luxury and not a necessity, as the average price of gasoline in the U.S. is at $3.33 per gallon as of April 8, up $0.53 per gallon compared to the same time in 2007. If you live in California, you are paying a whopping $3.68 per gallon, according to data from the Energy Information Administration.
A Transition Year for Stocks
It's still a very difficult market out there for equity investors. The broader market's been rallying just a little, but with earnings season upon us, all bets will be off.
What If the Economists and Analysts are Wrong Again?
Every major American newspaper and business magazine I saw last month carried at least one major article reporting that the U.S. economy was in a freefall with no end in sight. The worst might have been the last issue of "Business Week," with a front cover story about the recession. What if the newspapers and magazines are wrong about the economy?
Should Investors Finally Breathe a Sigh of Relief?
Well, last week, many stocks that have more or less flatlined suddenly developed a pulse. An actual pulse! And now the questions I'm getting follow along this line of reasoning: has the market finally bottomed or is this one of those elated, yet false recoveries of a terminally ill patient?
Why the Market Rally Probably Won't Hold
Stock markets are currently search for some direction but appear to be trading in a sideways pattern given the marker uncertainties. From a technical perspective, investor sentiment remains largely weak and does not support a sustainable rally. Market breadth, as indicated by the advance-decline line (A/D), is mixed, with six of the last 10 sessions above 1.0. The near-term trend is sideways.
U.S.-Listed Chinese Stocks Getting a Boost
As a general observation, I would say that U.S.-listed Chinese stocks are now beginning to experience renewed enthusiasm from investors.
More Proof Stock Market Has Discounted Worst for the Economy
A funny thing happened last week with the stock market and the economy... they went opposite directions.
Should You Buy Financial Stocks Now?
Surely many of you have thought that now might be as good a time as any to go on a little shopping binge and to buy yourself some bank stocks at bargain prices. Unfortunately, that little voice in your head is no longer little and now it's screaming its head off with words such as "economic slowdown," "U.S. subprime debacle," "recession," and even "depression." So what is an investor to do?
Don't Jump into the Market Just Yet
Stock markets staged a massive one-day rally on Wall Street on Tuesday to start the second quarter on a bullish note. The DOW and NASDAQ both surged over three percent, as there was optimism that the credit problems in the United States would be improving and the economy was doing better than expected.
Ensure Your Stocks Have International Flavor
If you're buying stocks right now, you better make sure the companies you're considering have a significant portion of their total revenues coming from abroad. There just isn't the kind of growth at home that can enable companies to grow at a pace that will get investors excited. This is especially the case with larger-cap companies.
Maximizing Profits by Timing This One Investment
While this spring most wildlife is coming out of hibernation from the winter, gold is moving into hibernation. Find out why the seasonality factor for gold bullion.
Central Bank Woes: Inflation Risk and Economic Lows
On any given day, central banks of the industrialized world face numerous challenges, the latest being skyrocketing food and energy prices caused by global imbalances between supply and demand. It is great that global demand is pushing world economies forward. However, as the supply also lags, prices surge, as does the risk of inflationary ripples adversely impacting economies in both developed and developing countries.
It's Not Over: Steer Clear of Banking Stocks
The U.S. banking sector remains in flux, highlighted by the underlying problems with The Bear Stearns Companies, Inc. (NYSE/BSC), which had been speculated to be on the verge of bankruptcy due to the credit market problems in the United States. As I have said in previous commentaries, the condition of the U.S. banking system remains characterized by uncertainties and sector risk.
A Sparkling Micro-cap Gem
The stock market wants to rally right now and we certainly deserve a little upside after a terrible first quarter performance. I don't think it's the beginning of a new trend — only a bounce in what is still a correction.
Smart Money Sees Tide in Stock Market Changing
The stock market came roaring back yesterday... and it was no "April Fool's" joke. The stock rally was strong Tuesday, with the Dow Jones Industrial Average up a huge 391.47 points, or 3.2% — the best start to the second quarter for the stock market in over 50 years.
What Job Growth Says About Our Economy
Is Canada's economy bouncing back or should the relative health demonstrated by the labor market be taken with a grain of salt, considering its lagging nature? According to Philip Cross of Statistics Canada, December GDP decline was a fluke and "did not signal a major disruption in the economy, but was more an isolated air pocket related to a combination of cutbacks in the auto sector, mostly because of model changes and bad weather."
Can the Fed Turn this Mess Around?
The reporting of a weak U.S. gross domestic product (GDP) for the fourth quarter of 2007 on Thursday was not a surprise to me. Coming in at a dismal 0.6% rate, the fourth quarter reading was unchanged from the third quarter, but there is now added economic risk. Should the GDP reading in the first quarter of 2008 decline or be negative, then a weaker or negative GDP in the second quarter could point to a technical economic recession. Of course, things are already slow.
Why Chinese Auto Parts Stocks Could Be Valuable
The invasion has begun and there's nothing we can do about it. If I were an auto parts manufacturer in North American, I'd be concerned.
The Technical Outlook for the Stock Market
Many years ago, Martin Zweig, a prominent financial advisor during the 1970s and 1980s, coined a catchy investment axiom: "Do not fight the Fed and do not fight the Tape." Applied to the present market, when the Fed is aggressively reducing interest rates and doing its best to resuscitate the financial markets, the odds should favor the long side. However, in contrast, the market tape remains unfavorable, with price, breadth and volume indices making new lower bear market lows.
NAFTA Again Under Fire
Attacking NAFTA appears to have been a favorite sport among North American exporters and politicians for years. The recent barrage of fire came from Democratic presidential hopefuls Barack Obama and Hillary Clinton. To this, Canada's three "stooges," the Prime Minister, the Trade Minister and the Finance Minister, responded with utmost disgust. Well, perhaps not "utmost," since all three would like to change a thing or two about NAFTA that bothered them as well, but they would not go so far as to bring the whole thing under very public scrutiny.
We're Not Out of the Woods Yet
The last several sessions saw some calm and cautious optimism return to the stock markets after news that JP Morgan Chase & Co. (NYSE/JPM) had increased its bid for The Bear Stearns Companies, Inc. (NYSE/BSC) to $10.00 a share from the previous $2.00 a share. The revised bid was excellent for many speculators that acquired the shares of Bear Stearns after the collapse believing that a higher bid was in the works.
Educational Companies Weather All Kinds Of Conditions
What happens when the economy slows and people lose their jobs? Among many other things, some people choose to go back to school and upgrade their skills. No matter if the economy is bad or great, the education industry is always doing well…
A Contrarian’s View on Wall Street's New Best Friend
While pessimism about the economy rises daily... And while the economic figures released each week are more dismal... I'm taking the contrarian view again. For now, the stock market tells me that the worse for the economy for 2008 is over…
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