If The S&P 500 Is In A Bull Market, How Will Bonds And Gold Perform? [View article]
No Jason I haven't, but thanks for the warning.The asset value seems to be holding, and I don't expect it to go higher, so, I am just hanging on for the yield. You may be right, as there are other options for the yield. We'll see.
If the FOMC does go ahead with QE tomorrow, how would it be structured, asks Jon Hilsenrath, suggesting the Fed might announce a multi-month time frame to keep the hawks from calling for the program to end after a few weeks. What about Operation Twist? As the Fed considers QE to be more powerful, would the Twist program be nixed, or run alongside? [View news story]
I have wondered in the past, if we could keep putting off the laws of economics, and just keep borrowing to cover the cost of our upscale standard of living. The Fed has bought us more time with creating more dollars, and feeding the money into the system through QE 1,2, and other gimmicks. Since there is no apparent reduction in deficit spending, are we approaching the moment of truth? Howard
Expect denials soon, but sources says Angela Merkel suggested to the Greek president the country hold a referendum on continued use of the euro at next month's elections. Syriza: Merkel is treating Greece as a "Protectorate." New Democracy: Merkel proposal "unfortunate." The German Chancellor has managed to unite the feuding Greek parties. [View news story]
I read that 92% of the Greek population wishes to stay in the Euro. However a majority want the Euro cash to keep covering their government expenditures without following the rules of the Euro road. Sounds as if this is coming to a difficult end for the Greek population, and the Euro funds can be used to save the banks holding Greek bonds.
GM will lay off 1.3K employees for 5 weeks at a Detroit plant as it temporarily halts production of the Chevy Volt amidst sputtering sales. Polypore International (PPO -2.1%) - a supplier to the automaker's battery cell supplier - tumbles on the news. [View news story]
Safe havens are offering little more than wealth protection (if that), and if you were thinking of dividend stocks, they may have a long way down to go yet. What about getting off the coaster? Over the past two months, S&P's Low Volatility Index lost just 1.1% vs. the overall market's 9.8% decline, and it's holding up over longer periods too (+80% over the past 10 years). New low-volatility ETFs: SPLV, LVOL, LBTA, SLVY, SLBT, BTAL. [View news story]
Will check this list, interesting, and will check. However at this point, with the situation in the U.S. (uncontrollable deficits), and Europe (Hopeless souverin debt), further investment in equities seems a bit risky.
4 Master Limited Partnerships That Are Set to Rebound [View article]
The MLPs are an investment that returns an excellent dividend level, and by today's income tax rules, most of this is tax deferred, which results in an excellent cash return. If they continue to do well, this is a good long term investment. I say long term, as the tax implications with a sell, go back and catch it all up. The CPA's call this recapture, I believe. Makes a great investment to build up one's estate.
Former top Fed official Donald Kohn tells WSJ's Jon Hilsenrath he expects the Fed to give "very serious consideration" to a new round of bond purchases if it determines after the Aug. 9 FOMC meeting that the recovery is really losing steam and if inflation is coming down. Kohn, Vincent Reinhart and Brian Madigan put the risk of a new recession at 20%-40%. [View news story]
I read on the "Debt Clock" site that there are about $4.5 trillion US Government Treasury securities in the outside world. After the global markets watched us delay again any solution to our deficit problem, future sales of these securities may be difficult. Seems to me that the Fed is "Painted into the corner", and a QE3 would show a panic situation. Should be interesting.
"I can't imagine the Fed would do $2T of QE ... and say, 'look guys, we tried, you're on your own,'" says Jim Bianco reflecting on the weakening economy. "There will be QE3 and 4 and 5 ... QE is all about trying to prevent pain in the marketplace." [View news story]
The QE series was designed by the Fed to feed money to the Treasury, in the absence of enough Treasury bond sales to cover the Government deficit spending. Now that the rest of the world is rapidly losing interest in buying the bonds we appear to be addicted to the QE system. Since there seems to be no reduction in this spending process, it will be interesting to see the next move. At some point the game folds.
If The S&P 500 Is In A Bull Market, How Will Bonds And Gold Perform? [View article]
Lessons From 5 Years Of Economic Crisis [View article]
If the FOMC does go ahead with QE tomorrow, how would it be structured, asks Jon Hilsenrath, suggesting the Fed might announce a multi-month time frame to keep the hawks from calling for the program to end after a few weeks. What about Operation Twist? As the Fed considers QE to be more powerful, would the Twist program be nixed, or run alongside? [View news story]
Howard
Expect denials soon, but sources says Angela Merkel suggested to the Greek president the country hold a referendum on continued use of the euro at next month's elections. Syriza: Merkel is treating Greece as a "Protectorate." New Democracy: Merkel proposal "unfortunate." The German Chancellor has managed to unite the feuding Greek parties. [View news story]
Sounds as if this is coming to a difficult end for the Greek population, and the Euro funds can be used to save the banks holding Greek bonds.
GM will lay off 1.3K employees for 5 weeks at a Detroit plant as it temporarily halts production of the Chevy Volt amidst sputtering sales. Polypore International (PPO -2.1%) - a supplier to the automaker's battery cell supplier - tumbles on the news. [View news story]
Safe havens are offering little more than wealth protection (if that), and if you were thinking of dividend stocks, they may have a long way down to go yet. What about getting off the coaster? Over the past two months, S&P's Low Volatility Index lost just 1.1% vs. the overall market's 9.8% decline, and it's holding up over longer periods too (+80% over the past 10 years). New low-volatility ETFs: SPLV, LVOL, LBTA, SLVY, SLBT, BTAL. [View news story]
4 Master Limited Partnerships That Are Set to Rebound [View article]
Former top Fed official Donald Kohn tells WSJ's Jon Hilsenrath he expects the Fed to give "very serious consideration" to a new round of bond purchases if it determines after the Aug. 9 FOMC meeting that the recovery is really losing steam and if inflation is coming down. Kohn, Vincent Reinhart and Brian Madigan put the risk of a new recession at 20%-40%. [View news story]
"I can't imagine the Fed would do $2T of QE ... and say, 'look guys, we tried, you're on your own,'" says Jim Bianco reflecting on the weakening economy. "There will be QE3 and 4 and 5 ... QE is all about trying to prevent pain in the marketplace." [View news story]
At some point the game folds.