Forex Markets: A Look into The Dollar, Part IV
November 30, 2008
Welcome to Part IV of a four part series discussing the current state of the foreign exchange markets and the future problems and issues that will surround it. Part I of this series explained the general relationship between commodities, the Euro and the Dollar. Part II of this series discussed the reasons why the dollar has rebounded recently. Part III discussed the European and U.S. central bank’s rate cuts, their fiscal stimulus plans and the LIBOR to fed funds rate as well as the effects these issues have had on the Dollar and Euro.
For this fourth and final installment in the series, I will be wrapping up with a look into what the future holds for the Dollar and Euro. I am going to touch on how a U.S. and global recession will affect the currencies in the next 6-12 months, the role of continued low oil prices or a rebound in those prices, and what is in store for interest rates in both the U.S. and the European Union.
Friday’s Market Recap (11/28/2008)
November 28, 2008
The markets traded up on a shortened trading day Friday due to the Thanksgiving Holiday. The Dow Jones traded up 1.17% or 102.43 to settle at 8,829.04 while the Nasdaq traded up 0.23% or 3.47 to close at 1,535.57. The S&P 500 also managed to finish the day in positive territory up 0.96% or 8.56 ending the trading session at 896.24. All three of the major U.S. averages traded up towards the end of the trading session after being in negative territory for some of the day. This five trading day up streak for both the Dow Jones and S&P 500 was the first consecutive five day winning streak since July 2007. This comes as a complete surprise as the futures indicated a weak market in response to a world-wide painc due to the terrorists attack in Mumbai, India. Read more
Back in Black on Friday?
November 27, 2008
What does this Friday mean for the market going forward? Since 1965, Black Friday has meant huge traffic jams and over-crowded stores and malls. This year maybe a little different as macroeconomic conditions become obviously visible with smaller volumes and shorter lines that mean more inventory that could eventually lead to a decline in profits. Read more
Wednesday’s Market Recap (11/26/2008)
November 26, 2008
Wednesday’s market action was another sigh of relief for investors as the three major U.S. averages ended well into positive territory. The Dow Jones finished up 247 points to 8726 or 2.91% while the Nasdaq finished up 67 points to 1532or 4.60%. The S&P 500 also finished up almost 30 points closing at 887 for a gain of 3.53%. Read more
Occidental Petroleum: The West Is Still The Best
November 26, 2008
During these tough times, in a market environment where literally no one is safe, you would assume that a company who is one of the largest one hundred components of the S&P 500 would take somewhat less of a hit when compared to its peers. If the company also had a great long term track record and a balance sheet so clean you could eat off it, you would be certain that the stock price would reflect these factors. Unfortunately for the market and fortunately for investors, Occidental Petroleum [OXY: 61.74, -0.42 (-0.68%)] is one that our “efficient markets” got very wrong. Read more
Tuesday’s Market Recap (11/25/08)
November 25, 2008
It was a rare day for the markets as the day ended without a huge gain or loss. Instead Wall Street saw a calm ending to the day. The Nasdaq was the only index of the major three that saw a dip this Tuesday, as a result of news that companies have been and will continue to cut back on technology spending. The Nasdaq fell a 0.50% and closed at 1464 points. On the other hand the Dow and S&P 500 saw minimal gains. The Dow was in the green 0.43%, closing at 8479 points. The S&P saw a rise of 0.66% and finished trading at 857 points. For the Dow and S&P this marks the third straight day of positive trading. Read more
Forex Markets: A Look into The Dollar, Part III
November 25, 2008
Welcome to Part III of a four part series discussing the current state of the foreign exchange markets and the future problems and issues that will surround it. Part I of this series explained the general relationship between commodities, the Euro, and the Dollar. Part II of this series discussed the reasons why the dollar has rebounded recently. This article will discuss the European and U.S. central bank’s rate cuts, their fiscal stimulus plans, and the LIBOR to fed funds rate and the affects these issues have had on the Dollar and Euro. Read more
A Tale of Two Cities - Citigroup and Detroit
November 25, 2008
The troubles with Citigroup [C: 7.08, -0.06 (-0.84%)] began in late September, when the government-assisted purchase of Wachovia [WB: 0.00, N/A (N/A)] fell through to a Wells Fargo bid that did not require government backing. A closer look at the deal reveals that the bid for WB was more than a push for a deeper pool of deposits. Citi and the government planned to divide the losses on $312 billion in assets, with Citi shouldering the first $30 billion and the gov’t covering the rest. Citigroup described the deal as a way of protecting it from Wachovia’s risky assets. However, the company would Read more
Monday’s Market Recap (11/24/08)
November 24, 2008
The government plan for Citigroup [C: 7.08, -0.06 (-0.84%)] gave Wall Street something positive to think about as markets went north today. The Dow closed out Monday at 8443 points, after rising nearly 400 points during the day. The Nasdaq closed at 1472 points after rising 87 points on the day. The S&P 500 finished at 850 points, and gained 51 points. These increases come after huge gains of around 6% from each major index on Friday. In international trading, Britain’s FTSE 100 went up 9.84%, while Japanese markets were closed due to a holiday. Read more
Coke or Pepsi?
November 24, 2008
One of the bigger debates that rages on within the Consumer Staples sector is whether Coca-Cola [KO: 45.44, -0.46 (-1.00%)] or PepsiCo [PEP: 55.60, -0.37 (-0.66%)] is a better investment. The two carbonated and non-carbonated soft drink manufacturing behemoths take up over 70% of the world wide beverage sales and have been solid equity holdings since well before I was born. Raising dividends and consistent earnings might as well be each company’s middle name, Read more
 
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