Individual Investors Not Fueling Recent Rally

June 23, 2009

The conventional is that retail , and not institutions, have powered the ’s rally off the March 2009 lows. Not so, says , CEO of Research. The firm tracks the flow of in and out of mutual funds. Since the start of May, he says, “U.S. funds have taken in a modest $7.1B” despite improved performance. Instead, retail are plowing into funds. Moreover, Biderman says that individuals did capitulate in the heat of the crisis, having been burned twice in the last ten years. The retail investor is not in the yet, but history tells that they will be, Biderman expects them to come in to the in 2010.

Popularity: 3% [?]

Obama Warns Credit Card Companies New Regulations Are Coming Soon

April 27, 2009

warned -card issuers they will face new regulations and scrutiny to keep consumers from being hit by “unfair” rate increases and abusive fees and penalties. said he told 13 executives from the industry, including representatives from Charlotte, North Carolina-based Bank of America Corp. and -based Express Co. that while cards are an important source of finance for families and small businesses, consumers too often must negotiate confusing terms that end up costing them more than they expected. “The days of any time, any reason rate hikes and late fee traps have to end,” said after meeting with the executives yesterday at the . “No more fine print, no more confusing terms and conditions.” Card issuers are under fire for policies that impose large late fees and boost rates on delinquent customers amid higher unemployment and a recession. The Federal Reserve already has issued new rules, due to take effect in 2010. Lawmakers in the House and also are considering legislation to provide more consumer protections. Bankers Association , who was among those at the meeting, said afterward that was “very clear” about his desire to make disclosures easier to understand and about the practices he wants ended.

Popularity: 5% [?]

US President Obama set to ease Cuban ban on travel, money and cigars?

April 12, 2009

Officials says set to lift restrictions on family travel and remittances to . The administration intends to allow to visit relatives in and send back to their families on the communist island nation, senior last Saturday.

plans to announce the policy change before the Summit of the Americas April 17-19 in , according to the officials, who spoke on condition of anonymity because the announcement had not been made. Although some restrictions have been eased temporarily in legislation signed last month, lifting the would meet a he made during the presidential campaign and could signal a new openness with .”The intent is to try to the waters and see if we can get to move in another direction,” one official said. “One way of getting the regime to open up may be to let people travel, increase exchanges and get flowing to the island.” There are growing calls in the Congress to repeal restrictions on .

Popularity: 4% [?]

The S&P 500 has ran North 25% since March 9

April 6, 2009

The S&P 500, since sinking to a 12- year low of 676.53 on March 9 surged 25% as from Inc. to said they made in the first two months of 2009 and announced plans to finance as much as $1T in purchases of distressed assets from financial firms.

“No matter how you feel about the stimulus package, some of it is going to stick and the should stabilize in the second or third quarter,” said the Nashville- based chief strategist at Robert W. Baird & Co.“If that’s going to happen, the will sniff it out.”

Popularity: 5% [?]

Last Weeks US Federal Reserve decision to buy Treasuries surprised many in the investing world.

March 25, 2009

With at announcement Chairman is signaling that he clearly understands the severity of the economic situation and is willing to take “all” necessary action as he lives up to his nickname “.” In last week’s Federal Open Committee Meeting, the announced that it would spend another $1.1T to purchase securities, specifically Treasury notes, in open operations. This is an extremely aggressive attempt to re-inflate the , and it should encourage bank lending, and the closest thing to running the printing press full on and throwing out of helicopters…The consensus is that ’s action will provide a necessary “kick” to the and stock markets in the short term. Remember, take what the gives.

The Big Q is that the long term effects from this action may cause even more problems. Steve Forbes once said: “If printing alone can create wealth, then poverty stricken Zimbabwe (a plagued by hyperinflation) would be the richest in the .” So in the short run, Bernanke’s actions will help stimulate the and the , but the long-term picture isn’t bright.

Popularity: 4% [?]

A Rising US$ Lifts the US but adds to the crisis abroad

March 19, 2009

are decamping foreign ventures and bringing their $s home, entrusting them to the supposed bedrock safety of , and China continues to buy huge quantities of the ’s . These actions are lifting the value of the $, and providing the administration with a crucial infusion of financing as it directs trillions of $s toward rescuing and stimulating the , enabling the to pay for these efforts without raising rates. The movement of this back to the appears to be exacerbating the financial crisis wide. A $ invested by foreign central and in is a $ that is not available to Eastern countries desperately seeking to , also, it is a $ that cannot reach , where many countries are struggling with the loss of aid and foreign .

Popularity: 7% [?]

Clicky Web Analytics