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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.
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.
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.
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.
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.
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.
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.
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.
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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