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Archive for October, 2009
October 29th, 2009
(Lee Siler) - Stocks continued to trade lower on economic growth concerns and the stronger dollar. Obviously, the weaker dollar has benefited the large cap multinational companies with regards to earnings for this past quarter. When the dollar is weak, like it has been for quite some time now, companies that depend on exports for a large part of their business have a huge advantage. And we've seen it in this quarter's earnings reports. A large majority of the S&P 500, which are the 500 largest companies, have beat analysts' expectations. Keep in mind earnings are still down from a year ago, but that was expected.
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October 26th, 2009
(Eugene Wehrheim) - As an investment person I get involved in many discussions about the markets, the economy, and world events. Many people want to discuss their views of the world and can be extremely vociferous in defending their particular logic and analysis of the world and the United States economy.
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Tags: barter system, brick and mortar, capstones, citizens of the world, exchange system, fiat money, gold silver, interesting things, majorities, monetary exchange, monetary value, money money, monies, physical commodity, piece of paper, shiny object, specie, stocks and bonds, united states economy, value of gold
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October 22nd, 2009
(Lee Siler) - Stocks took a hit yesterday despite a slew of positive earnings news. It appears that the recent run up in stocks prices was in anticipation of a better than expected third quarter with regards to profits. It is ominous that the market can't seem to chug higher in the midst of terrific quarterly reports. With about 25% of the S&P 500 reporting earnings, approximately 79% of companies have beat analysts' expectations. That is itself is much better than average.
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October 21st, 2009
(Malcolm Butler) - Recent economic data suggests that the worst of the recession is behind us. The stock market has been moving higher in anticipation of a recovery in the business community. While the economic future is still uncertain, we will
likely see increased economic activity over the coming months.
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Tags: anticipation, asset classes, asset owners, balance sheets, business community, depreciation, desirable prices, dramatic loss, economic activity, economic data, facing the music, financial instruments, liquid assets, liquidity, mutual funds, net worth, price transparency, recession, stock market, stocks bonds
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October 19th, 2009
(Lee Siler) - This will be a huge week for earnings with about 25% of the S&P 500 reporting. So far the majority of corporate earnings have come in better than expected with about 70% of companies beating estimates.
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October 16th, 2009
(Lee Siler) - This week, it's all about earnings and some of the biggest companies in the world are giving Wall Street a reason to stand up and cheer. Last night Intel beat expectations in every way. Not only did they beat with their earnings and revenue, but also beat on profit margin, while raising their revenue guidance. That was the tri-fecta of earnings reports. That said the stock is trading up pre-market and taking the rest of the market with it.
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Tags: Bank of America, biggest companies in the world, citi, earnings reports, estimates, intel, j p morgan, jpm, pre market, profit margin, research in motion, revenue guidance, stock, Wall Street
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October 15th, 2009
(Malcolm Butler) - I look at a lot of financial statements, and I’ve begun noticing a trend among the high net worth individuals of our generation. Particularly among small business owners and those in professional partnerships, a lot of people have a
disproportionately high amount of illiquid assets (real estate, closely held businesses, partnership interests) relative to retirement assets (401(k), IRAs, pensionplans) and liquid assets (publically held stocks, bonds, cash). Why does thismatter? Two reasons: people make financial decisions (such as taking out a loan or investing in more illiquid assets) based on their perceptions of their net worth; if they are not really worth as much as they appear on paper, or if their worth is disproportionately skewed to illiquidity, those decisions may be misguided.
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Tags: accumulating wealth, financial decisions, high net worth individuals, illiquid assets, illiquid market, illiquidity, iras, lending institutions, liquid assets, liquidity, living expenses, partnership interests, personal financial statements, professional partnerships, real estate values, retirement assets, reversals, small business owners, stocks bonds, valuations
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October 12th, 2009
(Lee Siler) - Stocks are set to open higher, as earnings season kicks in to high gear. Later this week we'll see just how well many of our country's biggest companies have been performing. Over the next few days GE, Intel, JNJ, JP Morgan, Google and IBM just to name a few, will surely move the markets one way or the other with their reports. Last quarter the number of stocks on the S&P 500 beating earnings estimates was at record highs due to a pessimistic Wall Street. Although there is still a degree of pessimism with regards to profits, it is certainly better than last quarter.
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October 9th, 2009
(Lee Siler) - Stocks futures are indicating a flat opening, on comments from Ben Bernake that is strengthening the dollar. The stronger dollar is causing commodity prices to drop as well in early trading.
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Tags: ben bernake, ben bernanke, commodity prices, decent value, earnings, economy, fear, fed chief, futures, inflation, investors, london, monetary policy, research in motion, risk, stock, stocks, swings, volatile issue
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October 7th, 2009
(Lee Siler) - Investors look for earnings to try and make it three up days in a row. Today is the official start of earnings season, as Alcoa (AA) will report after the close. Alcoa traded modestly higher yesterday, as this Dow component performed better than the index.
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