Amazing conversations in this video by Ewing Marion Kauffman Foundation about how a turbulent financial market combined with accelerating technologies will affect tomorrow's equity markets by three of the nation's leading market experts.
Following an introduction by Kauffman Foundation President and CEO Carl J. Schramm, the discussion is led by Harold Bradley, chief investment officer of the Kauffman Foundation, and features Duncan Niederauer, CEO of the NYSE Euronext, and Peter Bloom, managing director of General Atlantic Partners, a global growth private equity investor. The 90-minute discussion addresses current challenges in the equities markets and the trading of stocks, bonds and derivative securities in a global marketplace.
Showing posts with label Stock Market. Show all posts
Showing posts with label Stock Market. Show all posts
Thursday, June 18, 2009
Thursday, April 30, 2009
Take Investing Back to Basics
Got this nice email from INGDirect about 'simple' investing.
Tough times and volatile markets come and go, but solid investing principles are timeless. Good advice right now and in any market: go with S.I.M.P.L.E. investing:
Step back – Take a deep breath. Everyone knows that mattresses might seem like the safest spot for your money. But historically, the stock market has provided an opportunity for long-term returns.*
Investigate, then diversify – Take advantage of free research and investing tools instead of jumping on a hot tip or trying to act fast. Remember to balance your portfolio across investments.
Max out retirement vehicles – Take full advantage of any employer match for your 401(k). Otherwise, you leave money on the table. No 401(k) available? Grab the tax-deferred benefits of an IRA.
Pay yourself first – A cliché for sure, but not as easy as it sounds. Unless you have savings automatically deducted from your paycheck or bank account. It's like pre-paying bills in retirement. Talk to your employer's HR department.
Live like an investor – Adopt an investing way of life by committing to the long-term view. Your saving and investing habits can even set an example for the kids in your life.
Earn rewards – Set milestones and small rewards for yourself when you "earn" it on your smart financial plan.
Even if you only follow one or two of these tips, you'll be better off than you are today. So trust yourself. Then grit your teeth and get to it.Friday, November 14, 2008
Thursday, November 13, 2008
911 Point Swing
Quite a roller coaster ride today. Well, eventually atleast some final gains in the last hour. (in contrast to the losing streak since the last 3 days)
Engery stocks were quite strong today. Oil finished at $59 today. WalMart continues to be the leader of retail sales...
I wonder why is it that the last hour of trading session has the maximum drama?
Engery stocks were quite strong today. Oil finished at $59 today. WalMart continues to be the leader of retail sales...
I wonder why is it that the last hour of trading session has the maximum drama?
Sunday, October 26, 2008
Hedge Fund Manager
Andrew Lahde, manager of a small California hedge fund, Lahde Capital, burst into the spotlight last year after his one-year-old fund returned 866 percent betting against the subprime collapse.
Last month, he did the unthinkable -- he shut things down, claiming dealing with his bank counter parties had become too risky. Today, Lahde passed along his "goodbye" letter, a rollicking missive on everything from greed to economic philosophy.
Click on the CNBC link to read more.
Last month, he did the unthinkable -- he shut things down, claiming dealing with his bank counter parties had become too risky. Today, Lahde passed along his "goodbye" letter, a rollicking missive on everything from greed to economic philosophy.
Click on the CNBC link to read more.
Friday, October 17, 2008
Words of Wisdom
My Dad often says: "Fear and greed are the two most important factors in the stock market."
Warren Buffett reiterated his long-standing philosophy: "Be fearful when others are greedy, and be greedy when others are fearful."
I firmly believe these are the tenets of successful investing in the stock market (most applicable in the current economy). Buffett became the richest man in the world by investing while others were fearful, which in turn has allowed him to be one the greatest philanthropists of his time. He said, "You might think it would have been impossible for an investor to lose money during a century marked by such an extraordinary gain. But some investors did. The hapless ones bought stocks only when they felt comfort in doing so and then proceeded to sell when the headlines made them queasy."
Read the advice/opinion in NYT Editorial by Warren Buffett.
Today, confidence among U.S. consumers fell by the most on record and single-family housing starts hit a 26- year low, posing an increasing threat to household spending that accounts for more than two-thirds of the economy. Even the stock market is super-volatile right now, consider just this week for starters. The Dow Jones gained 976 points on Monday; fell 76 points on Tuesday; dropped 733 points on Wednesday; gained 401 points Thursday and then again dropped 127 points today. Yet, the net gain for the week is about 400 points!! Is this a good time to invest?
Ohh, yeah! Yet, it's imminent that there in no quick recovery for the economy and it should ideally be back on track by the end of next year. I'm not sure if we're at a bottom in equities, but valuations sure do look good from a historical perspective.
I would advise everyone to be a more pro-active investor than the buy-hold-forget and then expect profits strategy! You should be more involved and actively aware of economic trends and make necessary adjustments to your portfolio/assets.
Take it for what it's worth...
Warren Buffett reiterated his long-standing philosophy: "Be fearful when others are greedy, and be greedy when others are fearful."
I firmly believe these are the tenets of successful investing in the stock market (most applicable in the current economy). Buffett became the richest man in the world by investing while others were fearful, which in turn has allowed him to be one the greatest philanthropists of his time. He said, "You might think it would have been impossible for an investor to lose money during a century marked by such an extraordinary gain. But some investors did. The hapless ones bought stocks only when they felt comfort in doing so and then proceeded to sell when the headlines made them queasy."
Read the advice/opinion in NYT Editorial by Warren Buffett.
Today, confidence among U.S. consumers fell by the most on record and single-family housing starts hit a 26- year low, posing an increasing threat to household spending that accounts for more than two-thirds of the economy. Even the stock market is super-volatile right now, consider just this week for starters. The Dow Jones gained 976 points on Monday; fell 76 points on Tuesday; dropped 733 points on Wednesday; gained 401 points Thursday and then again dropped 127 points today. Yet, the net gain for the week is about 400 points!! Is this a good time to invest?
Ohh, yeah! Yet, it's imminent that there in no quick recovery for the economy and it should ideally be back on track by the end of next year. I'm not sure if we're at a bottom in equities, but valuations sure do look good from a historical perspective.
I would advise everyone to be a more pro-active investor than the buy-hold-forget and then expect profits strategy! You should be more involved and actively aware of economic trends and make necessary adjustments to your portfolio/assets.
Take it for what it's worth...
Thursday, October 9, 2008
Market Update - Financial Crisis
An update on the last couple of deadly weeks.
I think the Freddie and Fannie mac news provided the much needed jolt to everyone unaware of the financial turmoil. The Government did step in with a bailout.
The signboard "Lehman for Sale" was already put up on Wall St. but unfortunately there were no buyers which started the stocks free fall. Unfortunately, Lehman could not raise capital and did not make it as even Bernanke and Paulson kept there hands off. In the meanwhile, Merrill Lynch was sold to Bank of America, Wachovia to Wells Fargo and WaMu to JP Morgan Chase. With the big investment giants + banks going down under the panic kept on escalating.
The crisis grew bigger as AIG was kicked out of the Dow. It got an infusion of cash from the Fed for a 80% stake to stay afloat and avoid the catastrophic collapse. However, this raised substantial fears of the financial sector leading to massive sell off.
In the midst of all this the foreclosures continue to climb while new home construction falls. The $700 billion big bailout plan failed to clear the House initially but cleared the hurdle during a second chance. Berkshire Hathaway and Warren Buffet showed confidence in Goldman Sachs and GE and poured in $5 billion and $3 billion respectively which I think helped tremendously. The endorsement helped both companies to raise more capital.
The coordinated rate cuts yesterday didn't help much as the credit markets still remained tight. Fed chief Bernanke has offered a dismal outlook on the economy. The Dow and Nasdaq continue to sink and companies forecast a tough next quarter and issue warnings.
Imagine this. The DOW was at its all time high exactly one year back in October 2007. It has dropped 4000 points just in the last 4 months. It was hovering around 11,000 about 2 weeks back to close at 8,579.19 today.
Hopefully the economic downturn gets reversed soon.
I think the Freddie and Fannie mac news provided the much needed jolt to everyone unaware of the financial turmoil. The Government did step in with a bailout.
The signboard "Lehman for Sale" was already put up on Wall St. but unfortunately there were no buyers which started the stocks free fall. Unfortunately, Lehman could not raise capital and did not make it as even Bernanke and Paulson kept there hands off. In the meanwhile, Merrill Lynch was sold to Bank of America, Wachovia to Wells Fargo and WaMu to JP Morgan Chase. With the big investment giants + banks going down under the panic kept on escalating.
The crisis grew bigger as AIG was kicked out of the Dow. It got an infusion of cash from the Fed for a 80% stake to stay afloat and avoid the catastrophic collapse. However, this raised substantial fears of the financial sector leading to massive sell off.
In the midst of all this the foreclosures continue to climb while new home construction falls. The $700 billion big bailout plan failed to clear the House initially but cleared the hurdle during a second chance. Berkshire Hathaway and Warren Buffet showed confidence in Goldman Sachs and GE and poured in $5 billion and $3 billion respectively which I think helped tremendously. The endorsement helped both companies to raise more capital.
The coordinated rate cuts yesterday didn't help much as the credit markets still remained tight. Fed chief Bernanke has offered a dismal outlook on the economy. The Dow and Nasdaq continue to sink and companies forecast a tough next quarter and issue warnings.
Imagine this. The DOW was at its all time high exactly one year back in October 2007. It has dropped 4000 points just in the last 4 months. It was hovering around 11,000 about 2 weeks back to close at 8,579.19 today.
Hopefully the economic downturn gets reversed soon.
Debt Increase
Well, seems like the debt clock can't keep up with the recent times.
The National Debt Clock in Times Square in New York has run out of digits to record the growing figure. As a temporary fix, the dollar sign has been switched to a figure--the "1" in $10 trillion. The clock is marking the current national debt at about $10.2 trillion. Think of that.
The clock’s owners say a new model — with space for two extra digits — will be in place early next year. Now the debt clock will be able to reach the quadrillions. Hopefully, that’s not a level that will be breached any time soon.
The National Debt Clock in Times Square in New York has run out of digits to record the growing figure. As a temporary fix, the dollar sign has been switched to a figure--the "1" in $10 trillion. The clock is marking the current national debt at about $10.2 trillion. Think of that.
The clock’s owners say a new model — with space for two extra digits — will be in place early next year. Now the debt clock will be able to reach the quadrillions. Hopefully, that’s not a level that will be breached any time soon.
Sunday, August 17, 2008
India Titans Index
Rupert Murdoch-owned Dow Jones Indexes - which owns the widely tracked Dow Jones Industrial Average index that covers 30 large US companies listed on the New York Stock Exchange — has unveiled a blue chip index for India. The Dow Jones India Titans 30 Index will measure the performance of the 30 largest and most liquid stocks listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The selection to the index will be based on rankings by float-adjusted market capitalisation and 12 month average daily trading volume.
Murdoch said: “The world is changing and how we measure that change economically and financially is clearly a challenge and an opportunity. We have seen a reweighting of risk, but the world itself is being economically rerated and so we need an index that allows investors to take advantage of these changes.” According to Murdoch, Indian companies will obviously have a place in The Global Dow “as will companies from other emerging countries where we have seen an unprecedented economic emancipation over the past two decades”.
Robert Thomson, managing editor, The Wall Street Journal said, “While we must reflect the global stock market as it is, we must also recognise the rapid rise of companies in countries such as India.” The Global Dow will track the share prices of existing and future global leaders in every industry.
The selection to the index will be based on rankings by float-adjusted market capitalisation and 12 month average daily trading volume.
Murdoch said: “The world is changing and how we measure that change economically and financially is clearly a challenge and an opportunity. We have seen a reweighting of risk, but the world itself is being economically rerated and so we need an index that allows investors to take advantage of these changes.” According to Murdoch, Indian companies will obviously have a place in The Global Dow “as will companies from other emerging countries where we have seen an unprecedented economic emancipation over the past two decades”.
Robert Thomson, managing editor, The Wall Street Journal said, “While we must reflect the global stock market as it is, we must also recognise the rapid rise of companies in countries such as India.” The Global Dow will track the share prices of existing and future global leaders in every industry.
Tuesday, May 13, 2008
Cash is King
What do you do if you have several billion dollars burning a hole in your pocket? Read the wonderful article on Cnn Money.
Click here to read the entire article.
Click here to read the entire article.
Monday, May 5, 2008
Market Update
Oil has been flirting with $120/barrel and in fact has surpassed that as of today. Based on the Goldman Sachs' report which says that by 2009 it could be upwards of $150/barrel I think it is better to use public transport and go biking! It is definitely going to be in the forefront since a lot depends on the price of oil.
The Microsoft (MSFT) - Yahoo (YHOO) deal did raise many eyebrows but eventually it did not go through and Yahoo(YHOO) is facing the consequences. It fell by 15% yest.
Boeing (the 787 Dreamliner delays continue though), ExxonMobil (the profits has attracted attention from all the politicians while the gas rebate has become an issue), American Express (reassuring the state of consumer credit), AT&T (the Cingular acquisition and the Iphone were two crucial turning points for the company), Merck, Eli Lily, Google (slumping economy didn't make any difference for the internet ad revenue) all posted impressive results which helped the Dow increasing on those respective days.
Mars the chocolate maker successfully bid for Wrigley with some financial backing from Berkshire Hathaway's Warren Buffet. The Fed policy makers cut the rates again by a quarter point to boost the economy.
More later...
Lookout for Deutsche Telecom's bid for Sprint which if goes through I think becomes the largest telecom company in the country.
The Microsoft (MSFT) - Yahoo (YHOO) deal did raise many eyebrows but eventually it did not go through and Yahoo(YHOO) is facing the consequences. It fell by 15% yest.
Boeing (the 787 Dreamliner delays continue though), ExxonMobil (the profits has attracted attention from all the politicians while the gas rebate has become an issue), American Express (reassuring the state of consumer credit), AT&T (the Cingular acquisition and the Iphone were two crucial turning points for the company), Merck, Eli Lily, Google (slumping economy didn't make any difference for the internet ad revenue) all posted impressive results which helped the Dow increasing on those respective days.
Mars the chocolate maker successfully bid for Wrigley with some financial backing from Berkshire Hathaway's Warren Buffet. The Fed policy makers cut the rates again by a quarter point to boost the economy.
More later...
Lookout for Deutsche Telecom's bid for Sprint which if goes through I think becomes the largest telecom company in the country.
Sunday, April 6, 2008
Seven things to remember in bear run
The year 2008 has been unkind to investors so far. Many have suffered huge losses. Who knows, there could be more pain ahead. It’s worth reminding ourselves of basic lessons that every retail investor ought to keep in mind to avoid, or at least minimize, losses in one’s portfolio.
1. High rewards don’t come without taking high risk.
Remember, if you chase high returns, high risk will follow you.
2. Understand what you own — don’t always rely on the latest tip or prediction.
In today’s wired world, it is possible even for retail investors to understand, even if in basic ways, what is it that you are about to invest in — what does the company do, who its customers are, is the company profitable and so on.
3. Leverage is a double-edged sword that can destroy you in falling markets.
The recent collapse of various hedge funds and banks has shown that living on borrowed money can be dangerous.
4. Keep some of your powder dry — you don’t always need to be fully invested.
Keep some cash available to take advantage of falling prices. Professionals think of a correction in stock prices as a sale in stocks.
5. Build portfolio on a strong foundation.
Your stock portfolio also needs to be built on the back of strong companies and predictable stability. The more junk you have and poor quality stocks you own, the quicker your portfolio will also collapse during a correction.
6. Keep a wishlist of companies.
Smart investors keep a wishlist of companies whose shares they want to buy when the opportunity and price are right.
7. Invest for the long-term.
Serious investors put money to work for the long-term.You will also avoid the tax liability associated with short-term trading that can add more complexity to your finances.
Click here to read the entire article in Economic Times.
1. High rewards don’t come without taking high risk.
Remember, if you chase high returns, high risk will follow you.
2. Understand what you own — don’t always rely on the latest tip or prediction.
In today’s wired world, it is possible even for retail investors to understand, even if in basic ways, what is it that you are about to invest in — what does the company do, who its customers are, is the company profitable and so on.
3. Leverage is a double-edged sword that can destroy you in falling markets.
The recent collapse of various hedge funds and banks has shown that living on borrowed money can be dangerous.
4. Keep some of your powder dry — you don’t always need to be fully invested.
Keep some cash available to take advantage of falling prices. Professionals think of a correction in stock prices as a sale in stocks.
5. Build portfolio on a strong foundation.
Your stock portfolio also needs to be built on the back of strong companies and predictable stability. The more junk you have and poor quality stocks you own, the quicker your portfolio will also collapse during a correction.
6. Keep a wishlist of companies.
Smart investors keep a wishlist of companies whose shares they want to buy when the opportunity and price are right.
7. Invest for the long-term.
Serious investors put money to work for the long-term.You will also avoid the tax liability associated with short-term trading that can add more complexity to your finances.
Click here to read the entire article in Economic Times.
Saturday, March 29, 2008
Uneasy Calm
To summarize the current market and the sentiment:
Mergers, Fed cuts, subprime worries, mortgage woes, credit crunch, inflation, housing slump, unemployment reports, financials fall, tech stocks battered, blue chips slide, more selling rocks wall street, earnings mixed, oil climbs, dollar declines, hegde fund dissolves, foreclosures jump, outlook dissapoints... and yet some people deny recession. I love the optimism but I think it would be more beneficial to reevaluate and reconsider a lot of things related to your assets to reduce the financial pinch.
Mergers, Fed cuts, subprime worries, mortgage woes, credit crunch, inflation, housing slump, unemployment reports, financials fall, tech stocks battered, blue chips slide, more selling rocks wall street, earnings mixed, oil climbs, dollar declines, hegde fund dissolves, foreclosures jump, outlook dissapoints... and yet some people deny recession. I love the optimism but I think it would be more beneficial to reevaluate and reconsider a lot of things related to your assets to reduce the financial pinch.
Wednesday, March 26, 2008
Stock Market
It's been sometime since I wrote on the blog but plan to be post more regularly henceforth.
The last couple of weeks in the market had a lot happening on all fronts.
The JP Morgan and Fed bailout of Bear Sterns was a relief of sorts for (BSC) since it's cash position had significantly deteriorated however the events rattled many investors. The skepticism and anticipation of what happens to the other investment banks and financial institutions led to the falling markets. Lehman Brothers and Goldman Sachs reported better results than expected which led to the big rally early last week.
The Fed are definitely taking a lot of measures to curtail the recession and has pumped billions into the economy. It cut the discount rate again which matters a lot since that's the rate at which security firms borrow money.
It was good to see that JP Morgan upped the bid to $10 from $2 per share of BSC. (I can't imagine that company which was trading a year back for $170 per share going for $2 per share)
The Dept. of Justice approved the Satellite radio merger between Sirius and Xm Radio.
The combined effect of all this besides the manufacturing/factory report, rise of home sales data, tech stocks rally and the new Bear bid boost the market which finished higher end of last week.
More later..
The last couple of weeks in the market had a lot happening on all fronts.
The JP Morgan and Fed bailout of Bear Sterns was a relief of sorts for (BSC) since it's cash position had significantly deteriorated however the events rattled many investors. The skepticism and anticipation of what happens to the other investment banks and financial institutions led to the falling markets. Lehman Brothers and Goldman Sachs reported better results than expected which led to the big rally early last week.
The Fed are definitely taking a lot of measures to curtail the recession and has pumped billions into the economy. It cut the discount rate again which matters a lot since that's the rate at which security firms borrow money.
It was good to see that JP Morgan upped the bid to $10 from $2 per share of BSC. (I can't imagine that company which was trading a year back for $170 per share going for $2 per share)
The Dept. of Justice approved the Satellite radio merger between Sirius and Xm Radio.
The combined effect of all this besides the manufacturing/factory report, rise of home sales data, tech stocks rally and the new Bear bid boost the market which finished higher end of last week.
More later..
Friday, October 26, 2007
Saturday, October 20, 2007
Is Alibaba Worth More Than Google?
Alibaba.com, China’s largest e-commerce company, on Monday launched what is set to be one of the world’s most expensive initial public offerings, seeking to raise up to 11.6 billion Hong Kong dollars ($1.49 billion) through a share sale priced at a much higher valuation than investors paid for Google when it came public.
Click here to read the entire Forbes story.
Click here to read the entire Forbes story.
Monday, February 5, 2007
Evaluate & re-evaluate
If you have a BofA account you can use their porfolio to track credit cards, bonuses, checking, savings, mutual funds, stocks etc.
I like Google Finance for its simplicity.
There are a couple of other websites which I have heard of you might want to try.
MorningStar, Yodlee, etc.
I personally use Google and BofA in conjunction.
Bottom line, you should always keep a track of your assets relative to the amount you actually put in out of your pocket.
I like Google Finance for its simplicity.
There are a couple of other websites which I have heard of you might want to try.
MorningStar, Yodlee, etc.
I personally use Google and BofA in conjunction.
Bottom line, you should always keep a track of your assets relative to the amount you actually put in out of your pocket.
Wednesday, January 24, 2007
Monday, January 22, 2007
Investment ideas for 2007
Fortune's list of 10 stocks to buy for 2007
(AIG) American International Group
(MO) Altria
(MSFT) Microsoft Corporation
(COP) ConocoPhillips
(GD) General Dynamics
(DO) Diamond Offshore
(JOYG) Joy Global
(JPM) J.P. Morgan Chase
(RSH) Radioshack
(LUV) Southwest Airlines
Click here to read the complete story.
Link
(AIG) American International Group
(MO) Altria
(MSFT) Microsoft Corporation
(COP) ConocoPhillips
(GD) General Dynamics
(DO) Diamond Offshore
(JOYG) Joy Global
(JPM) J.P. Morgan Chase
(RSH) Radioshack
(LUV) Southwest Airlines
Click here to read the complete story.
Link
Sunday, January 21, 2007
Terminology
Excerpt from CNN Money (http://money.cnn.com)
Trading terms:
When trying to place a buy or sell order, you'll be faced with all sorts of questions: Market or limit order? "Day only" or "Good 'till cancelled." Here's the vocabulary you need to know to place a trade.
If you place a market order with your broker, then you are saying that you're willing to buy at whatever happens to be the prevailing price for the stock.
If you have a specific price in mind, you can set a limit order specifying the price you're willing to pay. If the stock dips down to that level, your order will be automatically filled.
Limit orders can be left open for a single day (a day order) or indefinitely (good until canceled).
After you've bought a stock, you can instruct your broker to sell it if the price drops to a level you specify (a stop loss order). That's a kind of insurance; it means that no matter what happens to a stock's price you'll never lose more than a specified amount.
Trading terms:
When trying to place a buy or sell order, you'll be faced with all sorts of questions: Market or limit order? "Day only" or "Good 'till cancelled." Here's the vocabulary you need to know to place a trade.
If you place a market order with your broker, then you are saying that you're willing to buy at whatever happens to be the prevailing price for the stock.
If you have a specific price in mind, you can set a limit order specifying the price you're willing to pay. If the stock dips down to that level, your order will be automatically filled.
Limit orders can be left open for a single day (a day order) or indefinitely (good until canceled).
After you've bought a stock, you can instruct your broker to sell it if the price drops to a level you specify (a stop loss order). That's a kind of insurance; it means that no matter what happens to a stock's price you'll never lose more than a specified amount.
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