Where To Invest When Rates Rise

Posted by & filed under Economic Analysis, Financial analysis.

Description:  As the economy improves, rate hikes loom, says Michael Cuggino, manager of the Permanent Portfolio fund family. He tells Jonathan Burton how stock and bond investors can blunt the impact of rising rates and take advantage of global growth.

Source: Marketwatch.com – video report
 
Date: 03/31/2010

Link: http://www.marketwatch.com/video/asset/where-to-invest-when-rates-rise/2F40294E-9670-4996-93C6-F8553FE0AFE3

Questions for discussion:

  • Summarize the main opinions presented by Michael Cuggino.
  • Do you agree with his views?
  • What investment strategies would you recommend for the next three months?

Wall Street More Powerful Than Before the Crisis?

Posted by & filed under Company Analysis, Governments & Regulators.

Description:  A handful of Wall Street banks have become more powerful and influential during in the financial crisis. Simon Johnson, author of the new book “13 Bankers,” argues that minding banks too big to fail isn’t enough. He tells columnist David Weidner that big banks need to be broken up into pieces “small enough to fail.”

Source: Marketwatch.com – video report
 
Date: 03/31/2010

 Link: http://www.marketwatch.com/video/asset/wall-street-more-powerful-than-before-the-crisis/E67F958A-8DC5-4864-8BC2-CA4BAB21E97E

Questions for discussion:

  • Summarize the arguments presented by Simon Johnson?
  • Do you agree with his recommendations for change to the banking industry?

More anger expected to color annual meeting season

Posted by & filed under Management Issues.

Description: Emerging standard calls for directors to win backing of a majority of investors

Source: Marketwatch.com

Date: 04/02/2010

Link: http://www.marketwatch.com/story/more-anger-expected-to-color-annual-meeting-season-2010-04-02?siteid=nwtwk

Questions for discussion:

  • Do you think retail shareholders are more likely to exercise their voting power in the future?
  • How can corporate financial managers be expected to react?

Increase in March Employment Shows U.S. Recovery Is Broadening

Posted by & filed under Economic Analysis.

Description: Employment in March grew by the most in three years, representing a turning point for the labor market that will help broaden the U.S. economy as it recovers from the deepest recession in seven decades.

Source: Bloomberg.com

Date: 04/03/2010

Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=aDCWdea8_JO0

Questions for discussion:

  • Summarize the reasons given for economic and stock market optimism?
  • Do you agree with these opinions favoring economic improvement?
  • How do you expect the financial markets to perform over the next 12 months?

Are Municipal Bonds the Next Bubble to Pop?

Posted by & filed under Governments & Regulators.

Description:  America’s states and cities may be going bankrupt, but investors shouldn’t worry. Dow Jones Adviser columnist James Altucher explains.

Source: Marketwatch.com – video report
 
Date: 03/23/2010

Link: http://www.marketwatch.com/video/asset/are-municipal-bonds-the-next-bubble-to-pop/5D0A58DD-9E95-4B20-8A3E-8B67E3F593DA

Questions for discussion:

  • Summarize the arguments presented in favor of buying municipal bonds.
  • Do you agree with James Altucher’s opinion about the risk to investors?

Government reportedly setting plan to sell Citi shares

Posted by & filed under Company Analysis, Governments & Regulators.

Description:  The U.S. government is setting up a program to sell its 27% stake in Citigroup Inc. and the plan could be announced next month, according to a report Thursday, citing unidentified people with direct knowledge of the matter.

Source: Marketwatch.com
 
Date: 03/25/2010

 Link: http://www.marketwatch.com/story/treasury-reportedly-sets-plan-to-sell-citi-shares-2010-03-25?siteid=nwtwk

Questions for discussion:

  • Would you be a buyer of Citigroup? Explain your thinking.
  • Is the government’s strategy good for the stock?
  • Are there greater implications for the industry due to this development?

U.S. Economy: Profit Surge May Help Broaden Expansion

Posted by & filed under Economic Analysis.

Description: The fastest pace of economic growth in six years during the final three months of 2009 fueled a surge in corporate profits that may set the stage for job gains and a broadening of the U.S. recovery.

Source: Bloomberg.com

Date: 03/26/2010

Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=aorqXG5sfGeY

Questions for discussion:

  • Summarize the reasons given for economic and stock market optimism?
  • Do you agree with these opinions favoring economic improvement?
  • How do you expect the financial markets to perform in the next 12 months?

How Not to Run an S.E.C. Investigation

Posted by & filed under Governments & Regulators.

Description: A recent report by Securities and Exchange Commission’s inspector general shows that the investigation of Bernard L. Madoff was not the only one to go badly awry. While the impact of the S.E.C.’s missteps were not nearly as significant as in the Madoff case, the report shows that the agency’s enforcement division allowed itself to be manipulated by a company it should have been investigating more thoroughly while allowing former staff members to influence its decisions on how to proceed.

Source: NYTimes.com

Date: 03/24/2010

Link: http://dealbook.blogs.nytimes.com/2010/03/24/how-not-to-run-an-s-e-c-investigation/?ref=business

Questions for discussion:

  • How do you view the arguments presented by Peter Henning in his report?
  • Do you feel the S.E.C. should have behaved differently at any point?

Why a $14/hour employee costs $20

Posted by & filed under Governments & Regulators, Management Issues.

Description: You probably cost your boss a lot more than you think you do.

Source:  CNNMoney.com

Date: 03/26/2010

Link: http://money.cnn.com/2010/03/26/smallbusiness/employee_costs/index.htm

Questions for discussion:

  • In general, do you think these taxes (costs) are fair to employers and employees?
  • Why would any exemptions for employment taxes be considered an unfair competitive subsidy by other businesses who must continue to pay?
  • Is there a better way to pay for entitlement programs delivered by governments and still help stimulate hiring?

Value Investing for the Next Decade

Posted by & filed under Company Analysis, Growth & Valuation.

Description:  Long-duration investing is about finding well-established companies to buy and hold for the next 10 years, according to fund manager Bill Smead, who favors pharmaceutical, housing and equity-fund plays. Matt Andrejczak reports.

Source: Marketwatch.com – video report
 
Date: 03/16/2010

Link: http://www.marketwatch.com/video/asset/value-investing-for-the-next-decade/49B13123-0A86-4B78-ACD1-85EF967190FC

Questions for discussion:

  • Why do you believe investors are holding stocks for shorter time periods, in comparison to the past?
  • Do you believe this behavior will likely continue?
  • Do you agree with the industry and company valuations presented by Bill Smead?