Best Discretionary Stocks of 2009
February 28, 2009
Although the current economic environment seems to be calming down with the new liquidity being pumped into the system, as well as the consolidation seen in financial sector, there is still much uncertainty for the upcoming year. Disposable income will be the downward force in the consumer discretionary sector, but there are still many plays in the sector that will help to grow your portfolio in 2009. Here are three stocks that will reduce your systematic risk within the Consumer Dicretionary sector. Read more
Friday’s Market Recap (2/27/2009)
February 27, 2009
Today’s market slipped once again as news that the government will continue and take a large stake in Citigroup’s common stock shares, stemming fears of a future heavy governmental regulated bank system. The Dow Jones Industrial Average slipped another -1.66% to a level of 7,062.93 while the Nasdaq and S&P fell -0.98% and -2.36% respectively to closes of 1,377.84 and 735.09. Crude oil slipped -$1.03 to a close of $44.19 while gold and copper slipped -$2.40 and -0.37 cents respectively to closes of $940.20 and $1.54. The decline closed out a terrible month on the market as a whole, as the DJIA hit its lowest level since May 1997 as the blue-chip index fell for a sixth straight month. Read more
Locking Down Wall Street
February 27, 2009
Among the many restrictions that the new democratic regime under Barack Obama is imposing on their bailout plan victims is a $500,000 compensation salary cap for top executives who work at the nation’s bailed out firms. This bill will not allow any form of compensation be greater than one third of the total salary, and bonuses cannot be awarded to increase earnings higher than the $500,000 ceiling. This is a great restriction for executives whose salaries are very modest, with the majority of their money coming from compensation based on performance. Read more
Thrusday’s Market Recap (2/26/2009)
February 26, 2009
Today’s market was flooded with the news that President Barack Obama believes that this years budget deficit will total an astounding $1.75 trillion, which is four times last years budget. He has now proposed to Congress a tax hike on upper income citizens to begin the process towards guaranteed health care for all. In total, the Dow Jones Industrial Average fell -1.22% to a close of 7,182.08 while the Nasdaq and S&P fell -2.38% and -1.58% respectively to closes of 1,391.47 and 752.83. Crude oil fell on the day a minuscule -0.60 to a close of 44.62 while gold boosted 4.70 to close at 947.30. Read more
Best Utilities Stocks of 2009
February 26, 2009
2008 was truly a year of misery, suppression and depression in the financial markets. No sector held up well, as day after day seemed laden with negative news and panic. The utilities sector, typically seen as a safe haven, was anything but safe losing nearly 30% of its value in 2008. As the sector gears up for 2009, the stocks that should be successful are the ones that have the capacity to stand tall as the economy continues reeling; however, stocks in the utilities space need to maintain the potential to benefit from a turnaround. With that being said, the following are three stocks Read more
Wednesday’s Market Recap (2/25/2009)
February 25, 2009
Reacting on undesirable news on the further weaking housing market as well as the start of the government’s tests to gauge their ability to withstand a long and deep recession lowered the market as a whole. The Dow Jones Industrial Average fell -1.09% to a close of 7,270.89 while the Nasdaq and S&P fell -1.14% and -1.07% respectively to closes of 1,425.43 and 764.90. Crude oil was boosted on the day rising $2.48 to a close of $42.44 while gold lost $-17.30 to a close of $952.20. Sales of previously owned U.S. homes plunged much more than expected January, pulling home builders down 2.1 percent. The drop in gasoline inventories came in data from the U.S. Energy Information Administration that also showed a 1.7 percent rise in demand for the fuel over the four weeks ending February 20. Read more
Survival of the Fittest
February 25, 2009
While many investors were surprised by J.P. Morgan’s, [JPM: 42.70, -0.45 (-1.04%)], move to slash its quarterly dividend from 38 cents per share to 5 cents per share, it is actually a clever decision by the bank’s conservative management in an effort to preserve capital. This allows the bank to prepare for the worst case economic conditions by saving about $5 billion annually. So, why was the stock trading up after the news was released, and after a week of trading down 19.40%? The answer is that the bank said its first-quarter performance to-date is “solidly profitable” despite additions to its reserves, and that its quarterly outlook is consistent with analyst expectations of 32 cents per share, on average. The CEO, Jamie Dimon, even commented that for the full year of 2009, “we absolutely see ourselves being profitable.” Read more
Tuesday’s Market Recap (2/24/2009)
February 24, 2009
The market flourished as Ben Bernanke addressed Congress exclaiming that the recession might end as soon as this year, and further said that regulators do not plan on nationalizing the banks. The Dow Jones Industrial Average jumped 3.32% to a close of 7,350.94 while the Nasdaq and S&P also increased 3.90% and 4.01% respectively to closes of 1,441.83 and 773.14. Gold fell a minuscule amount of -$2.20 to a close of $967.30 while copper boosted 0.16 cents to a close of $1.51. Obama will provide specifics about his plans to stabilize the financial system and further stimulate the economy, while anticipation of his plans have helped drive depressed financial shares up sharply. Read more
Is it Time to Lose Faith?
February 24, 2009
Spending almost every waking portion of my day studying the financial markets, it is almost impossible not to be in a state of complete depression. I honestly can’t remember the last time I saw any positive news reported, even on a local news channel. I can’t even imagine how this looks to a person that isn’t part of the financial community. They must think the entire world is completely out of its mind. My biggest concern is that no one, not even the “experts,” is predicting a turnaround any time soon. Some say that this is the sign of the “true bottom,” but as we become accustomed to hopelessness we could be looking at the exception to the rule. Read more
The Fall of Starbuck’s Stock
February 24, 2009
As soon as I touched land in Beijing, I headed to the closest Starbucks to enjoy a cinnamon spice mocha. While it was great to have a sip of the heaven from an expanding global company, when looking at the technicals of Starbucks for a buy, count me out. Starbucks [SBUX: 24.27, -0.01 (-0.04%)] has a multi-month resistance trend line that has been tested over three times, along with over five separate lower highs signaling an extremely bearish stock. Read more
