Tag Archives: investor

Investors – A Fresh Look at the Home Building Sector

The world is just a complete mess. Europe is teetering on the brink of deflation and is forced to initiate a QE program. Russia and Ukraine are battling it out for supremacy. ISIS terrorists are roaming the world for conquests. Japan is in a recession. China’s economy is slowing down. The only beacon of light is the United States. By all accounts our economy is in great shape. The latest jobs report was a smash hit. We added 257,000 new jobs in January. November and December jobs were revised upward to 414,000 in November and 329,000 in December. This is the 11th straight month of jobs numbers above 200,000. For the past three months we’ve added an average of 336,000 jobs. Weekly wages have risen 12 cents per hour. Consumer confidence is the highest in a decade. Car sales were up 14% in January. With all this good news what we’ve seen in January is a choppy market reacting to the highs and lows of international events and the sharp drop in oil prices. However, tucked in the jobs report is an interesting set of statistics. It has to do with the housing sector.Continue Reading

The Detroit Bankruptcy Case – Municipal Bondholders Take Note

For the past 16 months the city of Detroit has gone through a gut-wrenching series of negotiations to settle the largest bankruptcy in US history. Detroit has a population of 680,000 and a land mass larger than Manhattan, Boston and San Francisco combined.Continue Reading

Debt Wipeout: The Great $4.45 Trillion Experiment

Imagine this scenario. Bankers and Mortgage Brokers have gone berserk writing mortgages for people who could not afford to pay them off. Some customers didn’t even make the first payment. Some signatures were forged to get approval. It was an era of pure “greed.” Now, imagine this fictitious conservation between two bankers: “Tom, you know we have a lot of junk here with some of these mortgages.” “Yes, says Bill. Why don’t we just package them together and resell them to hedge funds and pension funds? We’ll use a fancy name like Collateralized Debt Obligations. That way no one will know exactly what we are selling them.” This scheme goes along for a while until a few “sane” investors start thinking: “I don’t think we should buy this stuff.” There are no bids and the market freezes up. Panic sets in and the markets are in freefall. The bankers run to the politicians and beg, hat in hand, for a bailout from Congress. The politicians dream up a fancy name like TARP and give the bankers $787 billion of taxpayer money. However, this is just a drop in the bucket. A whopping $7 trillion of household debt has been wiped out.
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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

Ebola Stocks-Should You Invest Now?

The dreaded disease, Ebola, has captured the imagination and attention of traders and speculators. It has erupted in Africa and has spread quickly, causing 1,000 deaths, and 2,000 new infected cases. There is a dire race to find a cure. To date, no cure is available. This has prompted a search for biotech companies that have started to do research on Ebola.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

What Does Net Neutrality Mean for Investors?

There is a giant power struggle underway between proponents of the “Open Internet or Net Neutrality” and the large broadband Internet Service Providers (ISPs) over whether or not the Open Internet will survive.Continue Reading

Investors Look to Dow Transports for Growth and Dividends

With the media focused on Dow 17,000, we often overlook some promising investing opportunities in the Dow Transports. The Dow Jones Transportation Average was the first listing in 1884. It had nine railroad stocks in the index. The Dow Jones Industrial Average came later in 1896. Throughout the late 1800s and early 1900s, rail transportation dominated the way goods were shipped throughout the country. At one point in 1916, the US had 254,000 railroad lines. From then on railroads had to compete with trucks and air transportation and saw a loss of revenue and jobs. However, we are in the midst of a new revival of rail transportation with both ton miles shipped and net proceeds setting new records.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