The Insider Report

Politics to Stall USA Recovery

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The Word from Republicans on The Hill is, “we will oppose Obama’s plans” US President Obama is widely expected to announce a new jobs plan on or just after Labor Day when he returns from his vacation. The plan will likely include the extension of payroll tax cuts, new revenue for transportation projects and an extension of emergency unemployment benefits for the 9.1% of Americans still unemployed. Mr. Obama’s campaign advisor, David Axelrod, said Sunday that there is nothing in the proposal “that reasonable people shouldn’t be able to agree on”, but many Republicans are already preparing to reject and … Read more

Global Baking Regulation Update

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Enhancing financial regulation has been a common view between governments since crisis in Y 2008, but debates over implementation details continue, especially since the recent debt crisis has given rise to Double Dip recession danger. Bankers and financial experts have agreed that the Global banking system needs prudent regulation, but how to strike a balance between regulation and financial innovation is Key issue not yet solved.. Dai Peng, an official with Export-import Bank of China, one of China’s policy banks, said at Saturday’s 5th Annual Bankers Forum that increased regulation and financial innovation should receive equal attention in the reform … Read more

USA Economic Calendar

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On the Economic Calendar in the USA August 23rd, Tuesday New Home Sales, July (10:00): 310-K expected, 312-K past August 24th,  Wednesday MBA Mortgage Index, 08/20 (7:00): +4.1% past Durable Orders, July (8:30): 2.0% expected, -1.9% prior (revised from -2.1%) Durable Orders -ex T, July (8:30): -0.4% expected, 0.4% prior (revised from 0.1%) FHFA Housing Price I, June (10:00): 0.4% past Crude Oil Inventories, 08/20 (10:30): 4.233-M past August 25th, Thursday Initial Jobs Claims, 08/20 (8:30): 400K expected, 408-K past Continuing Jobs Claims, 08/13 (8:30): 3700-K expected, 3702-K past August 26th, Friday GDP – Second Estimate, Q-2 (8:30): 1.1% expected, … Read more

A Tale of Two Intervals

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S&P 500 Daily Chart S&P 500 Weekly The Chart on the top shows a somewhat overbought market on April 29th and a normal correction.  I see no unusual predictive ability examining the daily chart of the S&P500. On the other hand, the chart on the bottom shows a major bearish divergence on April 29th .  Note this is a weekly chart and has quite a different outcome.  This presaged a sharp downturn although I had no way of knowing the severity of the drop.  The month of August so far has turned out to be worse than any month in … Read more

‘t know what it is do you, Mr. Jones?

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The S&P 500 is down 13% for the month to date in August and it’s not even over.  This is a far worse month, 30% worse than October 2008 which was down 10% although we had two back to back 10% down months.  People are not talking about that.  Gold has gone parabolic.  Something is happening here but we don’t’ what it is, but then again maybe we do.  It’s the final unwinding.   And with it goes the Euro.  Talk about too big to fail.  I don’t want to sound like I’m panicking.  I’m not but then again you … Read more

Bank Taps Fund, Raising Jitters in Europe

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Amid renewed fears that the euro-zone crisis could put fresh pressure on short-term funding, an unidentified bank made use of the Federal Reserve’s swap facility via the Swiss National Bank, borrowing $200 million earlier this month. The SNB disclosed that it applied for $200 million of dollar swaps on Aug. 10, at a rate of 1.08%. The funds were paid back on Aug. 18. In a sign of the nervousness sweeping the markets, both UBS AG and Credit Suisse Group, Switzerland’s two largest banks, issued denials Friday … Full article available @: http://online.wsj.com/article/SB10001424053111903596904576518462334049434.html?mod=rss_whats_news_us&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Fxml%2Frss%2F3_7011+%28WSJ.com%3A+What%27s+News+US%29&utm_content=Google+Reader

Apple is worth as much as all euro zone banks

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LONDON (Reuters) – Technology company Apple is now worth as much as the 32 biggest euro zone banks. That’s the stark result from a steep fall in the share price of banks including Spain’s Santander, France’s BNP Paribas, Germany’s Deutsche Bank and Italy’s Unicredit, compared to a steady rise in Apple’s valuation, according to Thomson Reuters data. Earlier on Friday the DJ STOXX euro zone banks index fell 4 percent, valuing its 32 members at $340 billion. That’s based on the market capitalization of their free-float shares, which for some French banks in particular is less than 100 percent. The … Read more

U.S. Stocks Little Changed Amid Economic Concern; Oil, Euro Rise

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Aug. 19 (Bloomberg) — U.S. stocks fluctuated between gains and losses as investors weighed growing concern over the global economy and Europe’s debt crisis against valuations near the cheapest level since 2009. Crude oil and the euro rose. The Standard & Poor’s 500 Index rose 0.2 percent at 11:59 a.m. in New York after rising as much as 1.2 percent and falling 0.9 percent. The Stoxx Europe 600 Index slipped 1.6 percent after dropping as much as 3.6 percent. Oil rose 1 percent as it also swung from losses to gains. Gold futures topped $1,880 an ounce for the first … Read more

Low Rates Hit Money-Market Funds

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Money-market mutual funds, those havens of safety for investors during tumultuous times, are facing their own pressures as interest rates continue to decline. The funds, which historically aimed to provide higher yields than bank deposits without risk of losses, are waiving fees and consolidating—or closing their doors altogether. The drop Thursday on the 10-year Treasury to below 2% in intraday trading provided fresh bad news for the funds. Money-market funds once were profit machines, collecting $13 billion in fees at their peak in 2008. But they have seen their revenues shrivel by 65% over the past three years as short-term … Read more

Volatile Stocks Seen Leaving Lasting Scars on U.S. Fund Investors’ Psyche – Bloomberg

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Cash is King Younger investors aren’t replacing their retiring counterparts. Cash holdings are at the highest levels since the record in March 2009, according to an Aug. 16 survey by Bank of America Merrill Lynch. Investors from 18 to 30 years old have the highest cash position of any age group at 30 percent of their portfolio, MFS Investment Management said in an Aug. 8 report. Almost three in five investors cite fear about volatility or needing money someday as a reason they hold high or increasing levels of cash. “Investors are in cash for a reason and, regardless of … Read more

Taking Stock Dividend Play Breaks Out – Better Bets

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TAKING STOCK: Dividend Play Breaks Out, But There Are Better Bets Published: Aug 17, 2011 By Tomi Kilgore A DOW JONES NEWSWIRES COLUMN When it comes to performance on Wall Street, it’s all relative. With Treasury yields exceptionally low and the potential for a further slowing in the economy, buying stocks with a steady, high-dividend yield seems like a no-brainer. But before investors jump on the bandwagon, they should consider that recent relative performance data suggests high-yield corporate bonds are a better play. A good way to bet on dividend plays is via the SPDR S&P Dividend exchange traded fund … Read more

Euro experiment must end

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There doesn’t appear to be anyway out of the sovereign debt problem short of printing money.  Euro bonds don’t seem to have much traction although the idea is a nice hail mary and may still arise from time to time.  If the countries in Europe wanted to be more like the United States of Europe, they should have had a political union, a unified army, and a democratically elected United States of Europe government before they undertook monetary union. Several large systemically important European banks will fail unless bailed out by their prospective Governments.  Oops, they can’t print money the … Read more

Wall Street tumbles on economy, bank worries

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(Reuters) – Stocks tumbled more than 4 percent on Thursday after data pointed to a stalled economyand as bank shares sank on a report regulators were scrutinizing the U.S. units of big European lenders. The decline was broad as well as steep, with just a small handful of the S&P 500’s components in positive territory. The KBW bank index slid 5.5 percent, with Citigroup Inc off 9.6 percent at $27, and Morgan Stanley down 7.5 percent at $15.75. “The market is in meltdown mode,” said Sal Catrini, managing director for equities at Cantor Fitzgerald & Co in New York. “The … Read more

Governments Still Buying Gold

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Thailand, South Korea and Kazakhstan added gold valued at about $2.59 billion to their reserves in July, joining Mexico and Russia in increasing holdings this year as central bankers hedge against depreciating foreign-currency reserves. Gold fell for the first time in four days after the metal’s rally toward $1,800 an ounce prompted some investors to sell the metal. Immediate-delivery bullion lost as much as 0.4 percent to $1,784.20 an ounce, and traded at $1,787.90 at 9:09 a.m. in Singapore. Gold’s relative strength index has topped 70 since Aug. 5, a signal of a potential drop. “the next gold consolidation will … Read more

S&P Backs French Triple-A Rating

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PARIS—A senior Standard & Poor’s Corp. analyst Thursday confirmed France’s triple-A rating and stable outlook for the country, dispelling investor fears that the top-notch grade of the euro zone’s second-largest economy may be at risk. “We’re confident in the triple-A rating, stable. We have confirmed it, we confirm it today,” said Carol Sirou, the head of S&P in France, in an interview on French radio. “There are several rumors, but we never comment on them.” France has increasingly appeared to be the weak link among top-rated euro zone countries, with higher deficit and debt-to-gross-domestic-product ratios than the other five triple-A … Read more

Greece, Ireland, Portugal Should Default on Debt, Pimco Says

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Aug. 17 (Bloomberg) — European politicians should let Greece, Ireland and Portugal default while taking steps to ensure Italy and Spain won’t, according to Pacific Investment Management Co.’s Neel Kashkari. “They are delaying and denying as long as possible because the medicine to actually put out this crisis tastes so bad,” Kashkari, head of new investment initiatives at Pimco, said in an interview on “InBusiness With Margaret Brennan” on Bloomberg Television. “They are always behind, always trying to play catch-up, and the crisis is always getting worse.” Germany, France, the International Monetary Fund and the ECB should unveil a “massive” … Read more

Producer Prices Surge in July as Inflation Fears Ratchet Up

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U.S. core producer prices rose at their fastest pace in six months in July, pushed up by higher tobacco and light truck costs, according to a government report on Wednesday that could stoke inflation fears. The Labor Department said its seasonally adjusted index for prices paid at the farm and factory gate, excluding food and energy, rose 0.4 percent—the largest increase since January—after rising 0.3 percent in June. That compared with economists’ expectations for a 0.2 percent rise. Overall prices received by producers rose 0.2 percent after falling 0.4 percent in June, above economists’ expectations for a 0.1 percent gain. … Read more

”ll Fizzle

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Financials look likely to survive, but that doesn’t make their shares a good deal As U.S. stocks turned volatile this month, big bank shares got especially wild. The Dow Jones U.S. Financials Index plunged 17% in August through the middle of last week before rebounding 8% by the close of trading Monday. During the same stretch, the Dow Jones Industrial Average lost 12% and gained 7%. The bounce suggests investors don’t expect a 2008-style collapse of the financial system. On that point, there’s reason for optimism, but stability alone doesn’t make the sector a good deal. Banks face two longer-term … Read more

Apple Vs Samsung

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Court limits Apple’s ban on Samsung’s Galaxy tablet The ban on a Samsung Electronics Co. (KS:005930) tablet computer across Europe was lifted after the German court that granted Apple Inc. (NASDAQ:AAPL) an injunction last week scaled back the ruling to within national borders. The iPad maker is not allowed to enforce its August 9 injunction outside of Germany against the South Korea- based Company, the Dusseldorf Regional Court decided yesterday. The ban on Samsung’s Galaxy Tab 10.1 in Germany stands, court spokesman Peter Schuetz said in an interview. “The judges decided to limit the enforceability for now because there are … Read more

Trading Strategy in Volatile Markets

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Be cool and do not let this volatility spoil the long term investment plan If you listen to the financial noise in the main stream media you have heard and read lots of opinions about the state of the US, EU, and Global economy. The evidence suggests GDP growth is slowing, despite government stimulus, and many governments are running out of options given their high debt to GDP levels and record low interest rate policies. But, corporate profits and liquidity are very high, and many companies are beat analyst expectations. So while governments may be struggling, many companies are doing … Read more

Why Banks Aren’t Lending: Weak Economy, Regulatory Uncertainty

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Why Banks Aren’t Lending: Weak Economy, Regulatory Uncertainty By Peter Gorenstein U.S. banks got hammered last week on concerns the sovereign debt crisis in Europe coupled with slow growth and a weak U.S. consumer are setting the stage for another financial crisis. U.S. banks still have some troubling legacy assets on their balance sheets but for the most part they are in much healthier shape then back in 2008, says John Garvey head of U.S. banks and capital markets at PricewaterhouseCoopers. “The banks have made pretty significant steps in the last couple of years to improve their stability in terms … Read more

A Wild Ride to Profits

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The stock market’s recent wild swings have unsettled many investors, but they have led to record profits for high-frequency traders following months of disappointing returns, industry analysts and money managers said. Some traders interrupted August vacations to return to their computers amid the global panic that triggered steep market selloffs, sharp upward swings and then more selling. Traders don’t know how long the extreme volatility and elevated trading volumes will last—but they don’t want to miss out, said investors and Wall Street trade-execution managers. Full article provided by WSJ @: http://online.wsj.com/article/SB10001424053111904253204576510371408072058.html?mod=rss_whats_news_us&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Fxml%2Frss%2F3_7011+%28WSJ.com%3A+What%27s+News+US%29&utm_content=Google+Reader

Buffett Made Biggest Bets on Stocks This Year – Perhaps he should buy his own

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Warren Buffett’s Berkshire Hathaway Inc. BRK/A increased its stake in Wells Fargo & Co. WFC, building equity holdings amid a markets decline that the billionaire investor said provided an opportunity for buying stocks “on sale.”Buffett’s firm added 9.7 million shares of the biggest U.S. home lender in the three months ended June 30, boosting the holding by 2.8 percent, Omaha, Nebraska-based Berkshire said yesterday in a filing that listed its U.S. stockholdings. Berkshire accelerated purchases on Aug. 8 as the Standard & Poor’s 500 Index plunged 6.7 percent, its steepest decline since December 2008.“I like buying on sale,” Buffett, Berkshire’s … Read more

‘s Lockhart says U.S. recession risks have risen

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(Reuters) – The risk of a new U.S. recession has risen over the last couple of months, but an outright contraction will most likely be avoided, Atlanta Federal Reserve Bank President Dennis Lockhart said on Monday. Lockhart said there is plenty the central bank could do if the economydoes deteriorate further, including ramping up asset purchases or shifting their composition. Recent market volatility, driven in part by concerns of slowing economies both in the United States and Europe, threatens consumer confidence and could put a crimp on spending, Lockhart told a Rotary Club meeting. “The events of the last several weeks … Read more

”’

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s that cheap stock you have your eye on really a “value trap”? After a 9.3% drop in the Standard & Poor’s 500-stock index this month, most stocks are looking cheap—but some seeming bargains may have more room to fall. Investors need to do more than simply look at price history and buy the most beaten-down stocks, say strategists. The temptation to load up on such stocks is surely there. Using 12-month earnings forecasts, the S&P 500’s average price/earnings ratio is now about 9.9, down from 13.2 at the beginning of the year, according to S&P. And the median stock … Read more

Euro zone bond debate raises pressure on Merkel

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(Reuters) – One of Germany’s leading economic associations came out in favor of joint euro zonebond issuance on Monday, raising pressure on Chancellor Angela Merkel to consider bolder crisis steps ahead of a meeting with the French president. Until now, the idea of so-called “Eurobonds” has been fiercely opposed by Berlin, which is fearful such a step would push up German borrowing costs and reduce incentives for weaker euro zone members like Greeceto reform their economies. A German government spokesman was emphatic — Merkel and France’s Nicolas Sarkozy will not discuss common euro zone issuance in Paris on Tuesday because Berlin does … Read more

|| Equities, Forex, Gold, Silver and Oil Trading

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ISHARES FTSE/XINHUA CHINA 25 INDEX (ETF) NYSE:FXI UNDERVALUED iShares FTSE/Xinhua China 25 Index (ETF) NYSE:FXI has been upgraded to Buy with a 2012 price target of $60 issued today by Shayne Heffernan. China has become the largest trade partner of the Association of Southeast Asian Nations (ASEAN), with two-way trade last year reaching US$230 billion. via iShares FTSE/Xinhua China 25 Index (ETF) NYSE:FXI Undervalued | Live Stock Trading News | Equities, Forex, Gold, Silver and Oil Trading.

|| Equities, Forex, Gold, Silver and Oil Trading

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BEST BUYS IN EUROPE NYSE:FTE, ETR:CBK, NYSE:AEG France Telecom SA (ADR) NYSE:FTE, Commerzbank AG ETR:CBK, AEGON N.V. (ADR) NYSE:AEG make up the Shayne Heffernan European Hot List. European Stocks should outperform in Q3, for those brave enough to buy now big returns are on offer over the next few years. France Telecom SA (ADR) NYSE:FTE has been upgraded to a strong buy with a 2012 price target of $31 issued today by Shayne Heffernan. In a note to traders today Shayne Heffernan pointed to the strong dividend history currently paying at 8.76% and the low PE of under 12 as … Read more

Returns on TIPS Outshine Other Treasurys – WSJ.com

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By MIN ZENG NEW YORK—While the focus has been on rising prices of regular Treasurys, a tiny, often-overlooked corner of the U.S. government-bond market—Treasury inflation-protected securities—has been the best-performing U.S. fixed-income asset this year. Through Thursday, TIPS have handed investors a 12.09% return, almost double the 6.16% return of their big brothers, according to data from Barclays Capital. Over the same period, U.S. high-yield corporate bonds returned a meager 0.37% and municipal bonds returned 7.24%. Vanguard Group and Pacific Investment Management Co., two of the world’s biggest TIPS investors, and Barclays Capital, the world’s biggest TIPS dealer, say the buying … Read more

Notable quotes, facts, and fantasies during a week for the record book

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The Standard & Poor’s 500-stock index swung alternately up and down more than 4 percent each day from Monday through Thursday. Never before in the history of the S.& P. index, which goes back to 1928, have there been alternating gains and losses of more than 4 percent in four days. In most years, there were no such days at all. “Heightened volatility is here to stay,” said Sam Stovall, chief investment strategist for Standard & Poor’s equity research. “This has been an unbelievable week. You just had fear totally take over,” said Scott Wren, the senior equity strategist for … Read more