Tag Archives: investment

Market Volatility is Ramping Up-A Traders Game

Market Volatility is Ramping Up-A Traders GameContinue Reading

Currency Info: How Does the Strong US Dollar Affect Your Portfolio?

Currency fluctuations affect a country’s economy and, in turn, the individual investor. Here we want to examine how a strong or weak currency will permeate the economy. Always remember that currency fluctuations are relative depending on the countries involved.Continue Reading

Investing in Human Genome Sequencing Companies

Medical technology is rapidly moving toward the development, treatment and cure of specific diseases or prolonged life treatments. These new drugs use human genome sequencing to determine a specific area of study. We often call these “designer drugs.”Continue Reading

Investing in Small Cap Stocks

We have a group of stocks that we refer to as “Small Cap.” They are defined as having a Market Cap of between $250,000 and $2 billion. Many are start ups trying to bring a new product or service to market. For example we are seeing many of the biotech stocks in this category. Many of them have a promising new drug but it first must go through rigorous testing by the FDA. This is a lengthy process involving several stages of testing, often lasting up to three years. Only a small group make it through. These become he new “stars” of the investing world and their stocks rise, often very quickly.Continue Reading

Where is the Price of Gold Headed?

The markets have turned in a strange performance over the past several weeks. The numbers on the economy came in weaker than expected with GDP down -.1% in April. Unlike other recoveries, spending growth has decelerated. Each year it takes a step down. This is not the way it should be. In all past recoveries, spending growth increased as the economy grew. Discretionary spending was up but 90% of that was due to inflation, especially in food and energy. Consumers are being forced to spend more. Our US deficit is running at about $17.3 trillion. The US Federal Reserve’s Balance Sheet has grown to $4.9 trillion. Surprisingly, the US stock market made a new all time high in the Dow and S & P. Gold, on the other hand, fell to its lowest level in the past 15 weeks.Continue Reading

How to Protect Your Portfolio

With the stock market averages making new highs every few weeks, investors are becoming increasingly edgy about what will happen next. These are unsettling times. We have a high US national debt running about $17 trillion. Added to this the US Federal Reserve has bought $4 trillion of bonds and mortgage backed securities from the big banks. They are now in the process of reducing their purchases, but they still must sell these securities back to balance their books. In addition they must continually issue new bonds to finance our debt.Continue Reading

Why there is Falling Unemployment and a Drop in the Dow?

On Friday, the Labor Department reported an increase of 288,000 new jobs. The unemployment rate fell to 6.3%, the lowest in 5 ½ years. At the outset this was good news for the market, but as the day wore on, the Dow Jones Averages started to fade and ended down 45.98 points. What should have been a rip roaring rally fizzled. Some blamed the crisis in Ukraine.Continue Reading

Creating Wealth with DRIPs

Since January 1, 2014, the markets have turned topsy turvy, up and down with sometimes violent, unexpected moves. When the good news about job creation was recently released, the market sold off instead of rallying. Or the US Federal Reserve says that they will be accommodative to the markets and the market rallies, only to have a vicious sell off the next day. Investors are on edge, wondering if the bull market will continue or if this the top of the move? Is there an investment program that will provide some security against these events?Continue Reading

2014 First Quarter-A Mood Shift

The year 2013 ended on a high note with the S & P up a whopping 29.6% for the year. The first quarter 2013 saw the S & P up 10%. The Russell that includes small and mid cap securities rocketed up 37%. With that stellar performance investors looked to 2014 with rare optimism. Only 16% of investors were bearish. However, starting on day one of 2014 the markets and the world turned turbulent. The major averages sold off sharply, then recovered to end the quarter barely nudging from their 2013 levels. The Russell did not fare as well. It was down 4.7% for the quarter, pointing to an exodus from small and mid cap stocks. The average investor pulled $4 billion out of mutual funds.Continue Reading

Investing in the Financial Services Sector

Since the start of the new year the stock market has been on a bumpy ride with sharp ups and downs. There is an old adage that says: “It doesn’t make any difference who wins and loses, your brokerage firm will always make their commission. The same is true for retail transactions. Whenever you use your credit card, the card company makes money. With that in mind, let’s look at the key stocks in the Financial Transaction Services Sector. These are companies that service large banks, brokerage houses and retail purchases. Here are some stocks that have been moving higher. (Barchart.com)Continue Reading