Archive
Nov 22, 2008
Investing in a Rapidly Changing World
By Andrew Mickey, Q1 Publishing
As I write, the Dow is down another 5%. Shares of smaller companies have fallen even further. Oil prices continue to slide. Investors are starting to price in a long, sustained downturn.
Despite all the doom and gloom, as I look outside my office, there’s a lot going on. Road workers still have the street closed down as they repave it. People are still shopping. The restaurants are just as active as they were a year ago. It appears no one is saving every penny in case the world enters a prolonged depression. But I do notice some changes that must happen as part of a new reality we face.
This type of overcrowding cannot and will not last through a prolonged downturn. Ensure you are prepared by...
As I write, the Dow is down another 5%. Shares of smaller companies have fallen even further. Oil prices continue to slide. Investors are starting to price in a long, sustained downturn.
Despite all the doom and gloom, as I look outside my office, there’s a lot going on. Road workers still have the street closed down as they repave it. People are still shopping. The restaurants are just as active as they were a year ago. It appears no one is saving every penny in case the world enters a prolonged depression. But I do notice some changes that must happen as part of a new reality we face.
This type of overcrowding cannot and will not last through a prolonged downturn. Ensure you are prepared by...
Nov 22, 2008
The Next Boom Emerges
By Andrew Mickey, Q1 Publishing
The current bear market is pretty bleak. The recent market swings have pushed a lot of investors out of the market completely. The auto makers, China, oil commodities, alternative energy, etc. are all down in the dumps and the near-term upside is very, very limited.
There’s almost no refuge where you can get a decent return. Earlier this week, the average interest rate for a one year bank CD was 3.36%, the average money market account yielded below 3%, and 1-year treasury bonds were yielding less than 1%.
Sometimes it seems like there are no good investments to make right now. Rest assured though, new bull markets are born from the bodies of dead ones. It is never different this time (just look at oil). And that is why it is more important now to start looking ahead. This is where to start looking...
The current bear market is pretty bleak. The recent market swings have pushed a lot of investors out of the market completely. The auto makers, China, oil commodities, alternative energy, etc. are all down in the dumps and the near-term upside is very, very limited.
There’s almost no refuge where you can get a decent return. Earlier this week, the average interest rate for a one year bank CD was 3.36%, the average money market account yielded below 3%, and 1-year treasury bonds were yielding less than 1%.
Sometimes it seems like there are no good investments to make right now. Rest assured though, new bull markets are born from the bodies of dead ones. It is never different this time (just look at oil). And that is why it is more important now to start looking ahead. This is where to start looking...
Nov 18, 2008
Profiting From Bailout Nation
By Andrew Mickey, Q1 Publishing
It’s bailout season and every overleveraged business that failed to plan for a downturn is lining up for a share of the $700 billion pie.
General Electric (NYSE:GE) is about to come a bank with access to the Fed’s free money. American Express (NYSE:AXP) anticipates such rough times ahead, it plans to become a bank with access to the Federal Reserve’s deep pockets as well.
Over the weekend, Bloomberg reported Home Depot (NYSE:HD), Dow Chemical (NYSE:DOW), and Textron (NYSE:TXT) asked for the Fed to fund their ongoing operations by buying their second-tier commercial paper.
Even city governments are throwing their hats into the ring. Philadelphia and Atlanta asked for multi-billion dollar bailouts as well.
It seems like everyone wants a handout. But here's how you can take advantage...
It’s bailout season and every overleveraged business that failed to plan for a downturn is lining up for a share of the $700 billion pie.
General Electric (NYSE:GE) is about to come a bank with access to the Fed’s free money. American Express (NYSE:AXP) anticipates such rough times ahead, it plans to become a bank with access to the Federal Reserve’s deep pockets as well.
Over the weekend, Bloomberg reported Home Depot (NYSE:HD), Dow Chemical (NYSE:DOW), and Textron (NYSE:TXT) asked for the Fed to fund their ongoing operations by buying their second-tier commercial paper.
Even city governments are throwing their hats into the ring. Philadelphia and Atlanta asked for multi-billion dollar bailouts as well.
It seems like everyone wants a handout. But here's how you can take advantage...
Nov 15, 2008
The Future of Oil
By Andrew Mickey, Q1 Publishing
"Now is a good time to buy."
That’s what R.S. Sharma, the chairman of India’s national oil exploration company ONGC, said last week.
Sharma added, "The world financial crisis and slumping oil prices have made energy assets more attractive. Is he right?"
Well, yes and no. It’s a good time to buy oil. But a great time is likely right around the corner...
"Now is a good time to buy."
That’s what R.S. Sharma, the chairman of India’s national oil exploration company ONGC, said last week.
Sharma added, "The world financial crisis and slumping oil prices have made energy assets more attractive. Is he right?"
Well, yes and no. It’s a good time to buy oil. But a great time is likely right around the corner...
Nov 13, 2008
China's $585 Billion Renovation
By Guy Bennett, Q1 Publishing
The global recession has hit China in a big way. Over 67,000 factories have closed in the last three months. An estimated 50 million Chinese workers are now unemployed, according to the usually overly positive government estimates. Protests or “mass incidents” are springing up all over the country.
The official Chinese GDP growth rate plummeted 30% in the last quarter. Independent data coming out of the manufacturing sector, however, suggests a much sharper decline. Chinese stocks have surging up and down, just as they have in the U.S. There are ways to profit from this global market volatility. Certainly China presents a unique set of opportunities.
The fact is, the Chinese have been running surpluses for 20 years. They hold about $2 trillion in foreign exchange reserves and they’re about to start spending it in a big way.
Earlier this week, China announced a $585 billion stimulus package to get its economy back on track.
The global recession has hit China in a big way. Over 67,000 factories have closed in the last three months. An estimated 50 million Chinese workers are now unemployed, according to the usually overly positive government estimates. Protests or “mass incidents” are springing up all over the country.
The official Chinese GDP growth rate plummeted 30% in the last quarter. Independent data coming out of the manufacturing sector, however, suggests a much sharper decline. Chinese stocks have surging up and down, just as they have in the U.S. There are ways to profit from this global market volatility. Certainly China presents a unique set of opportunities.
The fact is, the Chinese have been running surpluses for 20 years. They hold about $2 trillion in foreign exchange reserves and they’re about to start spending it in a big way.
Earlier this week, China announced a $585 billion stimulus package to get its economy back on track.
