There was an article distributed nationwide, written by the Associated Press, and carried locally in the Asbury Park Press on March 22, 2008. I’ve re-printed the article here, but dropped in my own comments after each paragraph. The main point to take away from this exercise is that by the time news reaches Main Street,… [Read More] Is this Stock Market Recession Worse Than Expected?
All these firms hold the same investments. There is STILL considerable risk in the group. Why did this happen to just Bear Stearns? One of the first things I learned about investments was when it comes to bonds, think chocolate and vanilla, super simple: when interest rates rise, bond prices (values) go down. And when… [Read More] Value of Bonds : Goldman Stearns and Lehman Sachs
UPDATE: Sunday evening, 03/16/2008: Bear Stearns to be acquired by JPMorgan Chase for $2.00 in stock swap deal. That is NOT a typo! The stock closed at $30 on Friday. On Thursday, it was $57.00. And yes, it was $150 last summer. This, essentially became a giant margin call on Bear Stearns. Apparently, cash —… [Read More] Stocks Impacted by Bear Stearns, part II
The news surrounding Bear Stearns on Friday morning was not good! There are several important elements to this story. The first element is the most important one: Bear Stearns appears to be out of cash. If you’ve ever traded on margin (or know someone that does), running out of cash happens from time to time.… [Read More] Point and Figure Chart Indicated Bear Stearns Months Ago, part I
The Dow Jones industrial average dropped below 12,000 today, March 7. In technical terms, this is a significant move. On my point and figure charts this represents another sell signal and tells us that the average may have further to fall. Not that I want to be in the prediction business, but it appears there… [Read More] Dow below 12,000 = Sell Signal
Another Weird Day on Wall Street Today, Tuesday, February 26, 2008 we received some negative economic news. There were reports of surging inflation and declining consumer confidence, and the early indications were the stock market would be down nearly 100 points. Not helping matters either was a story circulated by comScore late Monday regarding Google’s… [Read More] Stock market yo-yo