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What to do? Tuesday, January 22, 2008

Posted by ei-forum in Investing.
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Don’t panic! In any case, you can’t really do anything about it now… either you are out of equities or it’s simply too late to get out …

As readers know, we believe in a long-term buy and hold strategy. The historical return for the US stock market since1929 is over 10% per year and as long as you do not need to get out now, your only concern should be that of finding new money to keep on investing.

If you are having trouble with this volatility, we recommend that you simply stop looking at your account and do something else: check it at the end of the first quarter! Remember that by checking the daily movements of your stock portfolio, you are merely observing the volatility and not the return – returns are measure on a 1 to 3 to 5 year basis.

Dilbert: Investing Monday, January 21, 2008

Posted by ei-forum in Investing Humor.
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Dilbert Advisor

Come back next Monday for more investing humor!

Citi posts 9,83 billion quarterly loss Tuesday, January 15, 2008

Posted by ei-forum in US Traded Stocks.
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Analysts were expecting a loss of 1.01 USD per share but the final figure came in at 1.99 USD per share. However, despite the job and dividend cuts, Citi has managed to find new capital: 14.5 billion, 12.5 billion via private placement.

Does this mean that the worst is over? Well, despite the fact that it looks like the market is responding positively, we feel that this could only be the beginning of a much needed ‘hard-core’ restructuring effort.

Furthermore, we think that a lot of investors that were holding the stock because of the divided payout might not be too happy about this 40% cut and might look for higher dividend paying stocks.

Let’s see what happens.

Dilbert: full service broker Monday, January 14, 2008

Posted by ei-forum in Investing Humor.
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Dilbert-fullservicebroker

Come back next Monday for more investing humor!

Dr. Hector de J. Ruiz speaks Friday, January 11, 2008

Posted by ei-forum in CEO Interviews, Miscellaneous.
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Here is a very interesting interview with AMDs Chairman & CEO.

Dr. Hector de J. Ruiz, one of the most important Latinos in business talks about his views on life and business and how he made it to the top.

CNBC Europe, the LEADERS, interview: here.

Enjoy!

Insights from Jack Welch Thursday, January 10, 2008

Posted by ei-forum in CEO Interviews, Miscellaneous.
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Words of wisdom from one of the greatest business leaders of all times – as always, interesting, motivating and refreshing.

CNBC Europe, the LEADERS, Jack Welch interview: here.

Enjoy!

Insider track Wednesday, January 9, 2008

Posted by ei-forum in Investing.
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We hear more and more market commentators talking about that fact that investors shouldn’t be afraid to jump back into the market but let’s look at what company Insiders are doing, especially in the financial sector:

Top 10 Largest Purchases In Last 30 days
Symbol Company Amount
LEAP LEAP WIRELESS INTERNATIONAL INC $260.48 Mil
WPZ WILLIAMS PARTNERS L P $153.63 Mil
ZLC ZALE CORP $77.48 Mil
CSE CAPITALSOURCE INC $74.36 Mil
USG USG CORP $51.82 Mil
NTLS NTELOS HOLDINGS CORP $45.12 Mil
CECO CAREER EDUCATION CORP $39.12 Mil
GRMK GRAYMARK PRODUCTIONS INC $32.72 Mil
SONS SONUS NETWORKS INC $32.61 Mil
ANSV ANESIVA INC $31.00 Mil
Top 10 Largest Sales In Last 30 days
Symbol Company Amount
ORCL ORACLE CORP NEW $429.51 Mil
ES ENERGYSOLUTIONS INC $275.52 Mil
RIG TRANSOCEAN INC $182.70 Mil
COMV COMVERGE INC $119.44 Mil
SGR SHAW GROUP INC $81.05 Mil
PRO PROS HOLDINGS INC $70.48 Mil
STON STONEMOR PARTNERS L P $53.80 Mil
YUM YUM BRANDS INC $51.12 Mil
BSC BEAR STEARNS COS INC $48.94 Mil
NDAQ NASDAQ STOCK MARKET INC $41.15 Mil

(Source: MSN)

Interestingly enough, we can’t see any Citi, Merrill, Bear, etc executives buying… quite the contrary. As already discussed in earlier posts, things will definitely get worse before they start getting any better.

Inverse ETFs Tuesday, January 8, 2008

Posted by ei-forum in ETFs.
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Despite the fact that we favor a ‘buy and hold’ strategy focusing on ‘long’ investments, some of our readers have asked us about inverse ETFs and how to find them.

We feel that these products can be interesting, not necessarily to take a short-term view on an index or sector but as a way to tactically hedge against certain exposures. Please note that ‘single leverage’ means the fund aims to produce the inverse daily performance of the target index or sector each day and ‘ double leverage’ means twice the inverse daily performance.

We had already posted a link on how to navigate the ETF world and find sector specific ETFs (link) but here is a really good pdf document we found on Money and Markets that offers a comprehensive list on Inverse ETF where you can search by index or sector you want to hedge against.

Please click: here.

Dilbert equity analyst Monday, January 7, 2008

Posted by ei-forum in Investing Humor.
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dilbert-equity-analyst.gif

Come back next Monday for more investing humor!

Recession fears Friday, January 4, 2008

Posted by ei-forum in Miscellaneous.
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As most of the bottom fishers realized, it is getting worse before it will start to get better. Markets opened lower on weaker-than-expected job growth and a rise in the unemployment rate.

For e better understanding of what the future has in store please see:

  • TheStreet.com – Rate Cutes Definite, Recession Likely – Link.
  • CNBC TV – Jobs Jolt – Link.

The consensus seems to point to future rate cuts and the fact that the Government and the Fed will come to the rescue, especially with regards to the financial industry.

How long will the volatility continue? Chances are that the whole of 2008 will prove to be a very testing year for investors.

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