Be wary of analysts' "top picks," says Brett Arends. This is the time of year when Wall Street's best and brightest put out their favorite stock selections for the coming year. However, if 2011's ten most popular buy-rated stocks are any gauge, you'd have been better off owning an index fund. Had you invested in each of these stocks a year ago, banked the dividends, and cashed out at the end of the year - you’d have actually lost money. [View news story]
Pres. Obama signed into law yesterday a bill that imposes sanctions on financial institutions dealing with Iran's central bank, though exemptions will be made in the interest of U.S. national security and/or energy market stability. Separately, Iran said today it has produced the nation's first nuclear fuel rod, a feat many in the West had thought the country incapable of. [View news story]
The Europeans are nowhere near a debt solution because they lack "cohesion and courage," observes Steven Rattner. It was just another kick the can down the road moment last week, and they're still nowhere near solving any of their problems. With an almost a 1:1 correlation between the euro and the S&P 500, Rattner says he's actually surprised there hasn't been a bigger selloff. (video) [View news story]
Uncertainty in Europe is just one reason for the market's weakness today, says Abby Joseph Cohen. There is an incredible amount of risk aversion right now, as trigger-happy portfolio managers, anxious to protect gains, react harshly to any whiff of bad news. Investors should look past year-end, as there are many positive signs for the market, Cohen says. One glaring example - the Fed's dividend discount model implies the S&P 500 up to 40% undervalued at present. (video) [View news story]
2:30 is the new 7:30 as European events becoming the driver of financial assets across the planet force traders to monitor their screens throughout the pre-dawn hours. "We have a new credo: carpe noctem - seize the night," says Doug Kass. "Who would have thought we would have to be looking at Italian sovereign debt yields to figure out what Morgan Stanley's stock will do," says Mike Mayo. Market Currents is on the job then too; do check out our coverage. [View news story]
Dangerous game. Got to get some sleep at some point.
Just a day after scheduling it, a House committee last night canceled a vote on measures to ban Congressmen from insider trading. The GOP's Spencer Bachus said the reason for the move was a bi-partisan desire for more time to study the issue. [View news story]
This clown is the # 1 inside trader. No chance of this bill ever passing. DOA.
The crisis in Europe isn't really a freight train coming at us at full speed, but much more slow moving problem, says Wilbur Ross. Those people looking for a quick fix are going to be sorely disappointed. We'll eventually get where we need to be, but it's going to take a lot of time, and eventually the IMF will need to be brought in as the "ultimate funder." (video) [View news story]
Wilbur probably pays no income tax (How 'bout you) . So he is winning.
The crisis in Europe isn't really a freight train coming at us at full speed, but much more slow moving problem, says Wilbur Ross. Those people looking for a quick fix are going to be sorely disappointed. We'll eventually get where we need to be, but it's going to take a lot of time, and eventually the IMF will need to be brought in as the "ultimate funder." (video) [View news story]
If there's any correction in gold, which there is likely to be, use it as an entry point, says Jim Rogers. A drop in price wouldn't be a bad thing, after all, it's risen continually for the past 11 years. And with central banks around the world still printing currency and driving up debt levels, paper money everywhere is being debased. If the US dollar turns into confetti, Rogers says, there will be no high for the price of gold, because the dollar will become worthless. [View news story]
When this drop happens, few ordinary people will have the cash and the guts to do so. Central banks own all of this gold for a reason.
La Stampa reports the IMF is considering loaning Italy up to €600B to give Mario Monti's new government a 12-18 month window with which to push through fiscal reforms. As this would put a strain on IMF resources, the report suggests assistance from the ECB, i.e. the idea previously floated of the ECB lending to the IMF which in turn lends to needy EU states. [View news story]
Even if euro zone bonds do become a reality, don't look for China to bail Europe out, says China Market Research's Shaun Rein. China has its own problems to deal with, and with a high level of internal opposition to subsidizing Europe's "extravagant lifestyle," it has no intention of becoming Europe's "white knight." [View news story]
They are not money good. Learn to accept that fact.
Likely unable to raise capital the old-fashioned way - issuing shares and shedding assets - European banks are set to indulge in some fancy footwork. Known as "R.W.A. optimization," the process involves altering the risk-weighting on existing assets to allow less capital to be held against them. [View news story]
Forget McDonald's, Buy Wendy's Instead [View article]
Be wary of analysts' "top picks," says Brett Arends. This is the time of year when Wall Street's best and brightest put out their favorite stock selections for the coming year. However, if 2011's ten most popular buy-rated stocks are any gauge, you'd have been better off owning an index fund. Had you invested in each of these stocks a year ago, banked the dividends, and cashed out at the end of the year - you’d have actually lost money. [View news story]
Pres. Obama signed into law yesterday a bill that imposes sanctions on financial institutions dealing with Iran's central bank, though exemptions will be made in the interest of U.S. national security and/or energy market stability. Separately, Iran said today it has produced the nation's first nuclear fuel rod, a feat many in the West had thought the country incapable of. [View news story]
The Europeans are nowhere near a debt solution because they lack "cohesion and courage," observes Steven Rattner. It was just another kick the can down the road moment last week, and they're still nowhere near solving any of their problems. With an almost a 1:1 correlation between the euro and the S&P 500, Rattner says he's actually surprised there hasn't been a bigger selloff. (video) [View news story]
Uncertainty in Europe is just one reason for the market's weakness today, says Abby Joseph Cohen. There is an incredible amount of risk aversion right now, as trigger-happy portfolio managers, anxious to protect gains, react harshly to any whiff of bad news. Investors should look past year-end, as there are many positive signs for the market, Cohen says. One glaring example - the Fed's dividend discount model implies the S&P 500 up to 40% undervalued at present. (video) [View news story]
2:30 is the new 7:30 as European events becoming the driver of financial assets across the planet force traders to monitor their screens throughout the pre-dawn hours. "We have a new credo: carpe noctem - seize the night," says Doug Kass. "Who would have thought we would have to be looking at Italian sovereign debt yields to figure out what Morgan Stanley's stock will do," says Mike Mayo. Market Currents is on the job then too; do check out our coverage. [View news story]
3 Key European Developments To Consider [View article]
Just a day after scheduling it, a House committee last night canceled a vote on measures to ban Congressmen from insider trading. The GOP's Spencer Bachus said the reason for the move was a bi-partisan desire for more time to study the issue. [View news story]
The crisis in Europe isn't really a freight train coming at us at full speed, but much more slow moving problem, says Wilbur Ross. Those people looking for a quick fix are going to be sorely disappointed. We'll eventually get where we need to be, but it's going to take a lot of time, and eventually the IMF will need to be brought in as the "ultimate funder." (video) [View news story]
The crisis in Europe isn't really a freight train coming at us at full speed, but much more slow moving problem, says Wilbur Ross. Those people looking for a quick fix are going to be sorely disappointed. We'll eventually get where we need to be, but it's going to take a lot of time, and eventually the IMF will need to be brought in as the "ultimate funder." (video) [View news story]
When Will The Bond Vigilantes Attack The U.S. And U.K.? [View article]
If there's any correction in gold, which there is likely to be, use it as an entry point, says Jim Rogers. A drop in price wouldn't be a bad thing, after all, it's risen continually for the past 11 years. And with central banks around the world still printing currency and driving up debt levels, paper money everywhere is being debased. If the US dollar turns into confetti, Rogers says, there will be no high for the price of gold, because the dollar will become worthless. [View news story]
La Stampa reports the IMF is considering loaning Italy up to €600B to give Mario Monti's new government a 12-18 month window with which to push through fiscal reforms. As this would put a strain on IMF resources, the report suggests assistance from the ECB, i.e. the idea previously floated of the ECB lending to the IMF which in turn lends to needy EU states. [View news story]
Even if euro zone bonds do become a reality, don't look for China to bail Europe out, says China Market Research's Shaun Rein. China has its own problems to deal with, and with a high level of internal opposition to subsidizing Europe's "extravagant lifestyle," it has no intention of becoming Europe's "white knight." [View news story]
Likely unable to raise capital the old-fashioned way - issuing shares and shedding assets - European banks are set to indulge in some fancy footwork. Known as "R.W.A. optimization," the process involves altering the risk-weighting on existing assets to allow less capital to be held against them. [View news story]