Don’t get hung up on the Dow Jones. The Dow Jones may not be a “relevant” yardstick for you to use. After all, it’s only 30 stocks…and you might not own ANY of them.
Financial Media Predicts Deeper Deficits For Obama Budget… So What?
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Reverse Stock Split Is Bad News for Citigroup Stock
Many companies consider pulling a reverse stock split to avoid getting delisted. But many wind up taking that path eventually anyway. Can you imagine Citibank getting delisted from the New York Stock Exchange?
Mark to Market Accounting: A Basic Analogy
Banks (and brokerage firms) that own mortgage backed securities have been required — since November 2007 — to use mark to market accounting on these securities. Coincidentally, this was just around the time these mortgage securities started dropping precipitously in value. 2007 saw many mortgage firms get wiped out, and brokerage firms and banks holding these assets started realizing the volatility of these assets.
Media Focuses On The Wrong Stock Market News
Did you know General Electric (GE) posted record revenues last quarter? That has not really helped their stock, has it? Remember always, price is the ultimate indicator, which is why I rely more and more on charts. Fundamental analysts and company management can...
My 401k: Should I Keep Contributing?
I received a phone call this afternoon from someone who found my firm online. The gentlemen has received no guidance regarding his 401k at work. Last July, he had $286,000 in his plan. Today he has $166,000. I asked him what he had been doing lately. He had moved...
Mark to Market Suspension vs Bank Nationalization
Mark to Market is a topic I have written about previously. You can read about them here. I don't like changing the rules of the game in mid-stream, but something drastic needs to be done. A terrific opinion piece was written in the Wall Street Journal recently by...
GM seeks up to $30 billion in Aid: Fact?
This was the headline on the Associated Press on the evening of February 17th, 2009. Is that a fact? This is how the media distorts. Pay attention. So many investment decisions -- made by investors, traders, mom & pop, everyone -- gets determined by the...
Warren Buffett’s Annual Letter To Shareholders
Warren Buffett writes an annual letter to the shareholders of Berkshire Hathaway each year. If you've never read them, you really ought to. They are priceless gems. Not a laugh a minute, but an interesting observation on what's happening. This year's version is...
TARP Money Going To Brokers As Rep Retention Awards
Brokers and TARP Money Looks like others are starting to learn the story. Your individual stock broker -- getting TARP money -- is just plain wrong. And the size of these retention bonuses is extreme. But believe it. It is happening right now. Merrill brokers...
Is Your Stockbroker Getting TARP Money?
This may be enlightening. Guess what? In some cases, Your Stockbroker is Getting TARP Money. Not just the brokerage firm, YOUR stockbroker himself or herself is getting TARP money. Last week, Citigroup announced a deal to sell Smith Barney to Morgan Stanley. In my...
