Putting Family Dollar On The Shopping List
at 2006-09-01 22:48:24
The discount retailer's performance is moving in the right direction. It's time to pop in for a bargain.
Revolving Door Policy: Washington & Wall Street
at 2006-07-09 19:40:33
Make no mistake, Wall Street run's Washington. It is amazing to see how much clout Goldman Sachs has with the inter-workings of Washington.
Today, Deputy Secretary of State Bob Zoellick resign to take a job with the investment bankers at Goldman Sachs. Zoellick was apparently upset that he was passed over for another Goldman Sachs executive, Henry Paulson for the job as treasury secretary.- Read Article
The other 2 Goldman executives that also have influence with Washington are of course;
Senator Jon Corzine from New Jersey- Read Article
Former Treasury Secretary, Robert Rubin- Read Article
Wasn't Goldman Sachs one of the 10 firms fined by the SEC for their conflicts of interest between their research arms and
Locking in Yield's
at 2006-07-09 19:40:33
I know its boring, but I have been aggressively locking in some yields on cd's and corporate bonds. Since I continue to believe we are at the end of this 44 month cyclical bull market, the summer rally that many are betting on may or may not happen.
The Dow is locked in a trading range of about 250 points north or south of the 11,000 mark. Until the market receives confirmation of a Fed pause, trading should remain around current levels until the final outcome is known. (See June 16, 2006 post -"Dow 11,000 : Welcome to "No Man's Land")
Here are a few short term bonds and cd's that look attractive;
BELLSOUTH CORP NT 5.000% 10/15/2006- Currently selling at a discount
DAIMLERCHRYSLER NA HLDG INT NT 5.700% 01/15/2007-selling at a discount
WASHINGTON MUT INC SR NT 5.625% 01/15/2007- selling around par.
GANNETT CO INC NT 5.500% 04/01/2007-selling
"Surface Anatomy" Investing
at 2006-07-09 19:40:33
I always try to give investors some common sense analogies and conceptual ideas to get my point across. Why? Because no one likes to watch a techno geek pointing to lines on a chart, or sit and watch a financial commentator prognosticate what the next Fed move will be. To the average investor lines and squiggles mean very little, and commentary of what the Fed will or will not do border on a waste of time. While lines and squiggles may make sense for a few minutes, so do tarot cards from a fortune teller.
Unfortunately, most investors REACT to the "Surface Anatomy" of the markets, and fail to see the big picture of what’s really going on.
"Surface Anatomy" is used in medicine, and is a "study of the configuration of the surface of the body" in an attempt to figure out what is going on with the internal parts.
Investors often use "Surface Anatomy" when dealing with the markets by reacting to the hot news item of the day, or the latest economic report. This
Bend Your Knee's
at 2006-07-09 19:40:33
With all of the talk about the economy possibly coming in for a soft landing, I can't help but think of an important component in skydiving; Like most jumps or falls, the severity of the impact depends on whether or not you "Bend You Knee's."
If what we have been experiencing the last 44 months is a cyclical bull rally, then eventually the next leg of the bear market will resume. When it does, the magnitude of the decline, and the severity of the damage in your portfolio will depend on whether or not you are prepared. In essence, will you Bend Your Knee’s?
Market declines, like skydiving, have a similar feel. Tell me if I am wrong, but not looking at the ground in skydiving, or not having a potential downside target may lead to disorientation. There is nothing more frustrating than being a disoriented investor.
By identifying a downside target, and reinvesting at pre-determined price levels, investors can enjoy the rush of a free fall, and enjoy the scenery
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