Monthly Archives: September 2008
An Excellent Time To Pick Up The Broken Pieces
For some time now, weekends spell a period of trepidation for investors as the Pandora’s box is opened. Bizarre announcements of historical takeovers, bankruptcies and government interventions left investors grabbing for straws in a cesspool when trading resumed on Mondays. … Continue reading
Investors Uncertain As Bailout Plan Stalled In Midtrack
Since Monday, the “Paulson Plan” has been thrust into intense debates at Senate hearings as Democrats and Republicans unite in their dislike of this mind-numbing $700 billion bailout of the nation’s financial system. I find such actions amusing, if not … Continue reading
Stock Market Bolstered By Bailouts
In the past week, we have venerable investment banks Lehman Brothers folding and Merrill Lynch merging with Bank of America, leaving Goldman Sachs and Morgan Stanley as the remaining bastions of independents on Wall Street. Next, the Federal Reserve announced … Continue reading
Will Wall Street Learn From Lehman Brothers Bankruptcy?
After the US government put out a forest fire with the takeover of Freddie Mac and Fannie Mae last week, Wall Street’s troubles were far from over. As they say, when you see a rat in the house, you can … Continue reading
Filed under Banking, Business, Economy, Inflation, Oil, Properties, Stock Indices, Stocks, bonds
Stark Naked Fear In Stock Markets
On Monday, we had a fantastic stock market rally after the US Treasury engineered a takeover of troubled mortgage giants Fannie Mae and Freddie Mac. Regardless of it being the costliest bailout in US financial history, investors’ confidence were restored… for … Continue reading
Filed under Hedge Funds, Inflation, Oil, Properties, Stocks
Free Cash Flow: Lifeblood of Corporations
Before you invest heavily in stocks, you should really pore over the cash flow statement. I regard it as the bible, more important than the balance sheet or profit/loss statement. Emphasizing on earnings alone is ill-advised as devious managements can … Continue reading
11 Bank Failures In 2008 And Counting
Mortgage-related troubles continue to haunt regional banks. The melt down of the housing market has created a self-reinforcing spiral where lower prices lead to more defaults and unsold inventory. Continue reading
Plunge In Oil Prices Claims Another Major Casualty
The US dollar, inspired largely by plunging oil prices and growing pessimism over the economic health of the EU and the U.K, is going gangbusters of late. It traded at $1.4455 Wednesday, a seven-month high against the euro. On the other … Continue reading
