jepittman

U.S. Rejects Nationalization of Citi and BAC

This administration has a viable plan for dealing with this crisis. It has done an absolutely wretched job of selling it. There is a plan to get the 'bad assets' off the banks balance sheets. There is a plan to recapitalize the deserving banks with cash. There is a plan to restart securitization of commercial loans, residential mortgage loans, student loans, credit card consumer loans, with the federal reserve as the purchaser until private markets stabilize. These plans were vaguely outlined and then the spokesmen disappeared with no Q&A, no followup with details, and virtual silence while rumors of bank nationalization ran wild. Obama is a thoughtful and talented man but it appeares like he has no clue about how markets work, and the advice he is getting about communication with them leaves a lot to be desired.

Worth Thinking About How Falling Dollar Will Affect Tech Companies - JP Morgan

There are a lot of other companies that could be included in this exercise. What about Cisco? IBM? QCOM? AAPL? INTC? All of these companies have sales overseas and compete globally. A lower dollar will contribute to their profitability.

Why stop with tech? What about other industries? In pharma, JNJ, BMY, SGP, PFE, all with large overseas sales.

What about industrials? GE, UTX, CAT, all do loads of overseas busines, all aided by a lower dollar.

A lower dollar is part of the answer to the recession problem. As we move through 2009 the declining dollar will aid cushion the results of companies doing business overseas.

Exploiting the Downside of the Markets

When the money is easy you are likely on trecherous ground. The very best trades/investments are made when you are nauseous immediately afterward. The harder it is to pull the trigger the more likely it is to be right - and vice versa.

Amazon, Apple, Google: Buying on the Way Down

This young man is brave and also will be quite wealthy if he is not already. What he has described is a time proven method of accumulating shares. It is called "dollar cost averaging" and I have practiced it and seen it practiced for more years and stock market cycles than I care to admit to. No one buys at THE bottom. All you can hope to do is get close. This article was like reading an old cherished book again.