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Who Says Wall Street Isn't Hurting?
You may be surprised to learn which industry has announced the most layoffs so far this year: finance
Who's the most befuddled Wall Streeter of all? The richest guy on the Street. In assessing the spreading public protest against the rampaging greed of today's financial elite, John Paulson turns out to be as confused as a goat on Astroturf
The Perverse Side Effect of the Euro
We may be looking at the possibility of a worldwide financial meltdown
How One Amateur Investor Spots Stocks Before Wall Street
Do amateur investors like you have any advantages over professionals? Perhaps ...
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Dodd-Frank Brings Transparency to Financial Industry
The calls for repealing the Dodd-Frank financial reform bill are more than a little bizarre. It was only three years ago that the whole financial system was at the brink of collapse
Animal Spirits: Shaping Patterns of Economic Growth
'Birds of a feather flock together,' the old saying goes. So, too, do investors. Increasingly, talk is of a 'double-dip recession', 'Euro zone collapse' and the United States and Europe 'turning into Japan' -- that is, experiencing years of economic stagnation
China Cuts Its Holdings of United States Debt
China has cut its holdings of United States debt in response to Standard & Poor's downgrading of the credit of the U.S. government
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What the Treasury Market Is Telling Investors
In today's low-yield environment, the U.S. government will pay you just 1.9 percent a year over the next 10 years if you invest in a 10-year treasury bond. That's an all-time low that has many investors scratching their heads
How to Play Emerging Markets With U.S. Stocks
Because of the volatility and instability often associated with less-mature foreign financial markets as well as potentially undependable and non-standardized financial reporting, investing in stocks through foreign exchanges turns off many U.S. investors. Another option is investing in U.S. companies that rely on exports -- to Asia, Latin America, and elsewhere -- to boost their bottom lines
Are ETFs to Blame for the Rise in Volatility?
Seventy billion shares of ETFs were traded last month, up 86 percent from July
Factors That Drive Stock Prices
Ominous Signs for Stock Investors
What Investors Can Learn From the VIX
Why There's a Disconnect Between Stocks and the Economy
Crisis of Confidence: Debt Debate Erodes US Global Standing
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Lower Inflation Gives Fed More Leeway in 2012
The Fed could step in to stimulate the economy in 2012, but will it help?
What's in Store for Jobs in 2012?
Jobs are being created at an average of 130,000 a month, barely enough to keep up with population growth. Will the country make any headway in 2012? Here are 5 things to expect from the U.S. job market in the next 12 months
Our 2012 Challenge: Get Americans Working
2011 will be remembered as the year Americans woke up to the harm that growing disparities in wealth and income have done to our society and our economy
Listen carefully to the Republican debates and you get a view of the kind of society many Republicans seek. The last time we had it was in the Gilded Age of the late 19th century
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H-1B Workers: State of Indentured Servitude
Our current high-skill immigration policy does more harm than good. To meet the needs of both the U.S. economy and American workers, the H-1B and L-1 guest worker programs require immediate and substantial overhaul
H-1B Visa Program Abuse Widespread
The H-1B work visa program should be reduced in scope, not expanded, as the program is fundamentally about cheap labor
H-1B Visas: Symptom of Special-Interest Influence
The largest users of H-1B visas are foreign offshoring companies. They use H-1B visas to provide on-site support for projected moved to other countries. In that model, each H-1B worker here is a proxy for even more jobs lost
More Green Cards is the Real Fix
'Should H-1B visas be easier to get?' It's the wrong question.
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We Are Creating a Dependency on H-1B Workers
Of late, we have become dependent on other nations to supply workers to fill jobs in the fields on which we have staked our economic future: science, technology, engineering, and mathematics
Unfilled Positions Reduce Productivity
The H-1B visa should be made easier to get, but it should also be reformed so that American workers are protected and our country is able to attract the types of employees we need to grow our economy
H-1Bs Are Simply Too Difficult to Get
The 65,000 annual allotment of H-1B visas is woefully inadequate, and it has been exhausted every year since 2004, often within days
The race is to attract skilled workers, particularly scientists, engineers, and IT technicians
Homegrown Obstacles to the Economic Recovery
Does Extending Jobless Benefits Help?
Men Continue To Fare Badly in This Economy
Who Says Wall Street Isn't Hurting?
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Speculators are to Blame for High Oil, OPEC Says
The head of OPEC said that speculators are partly to blame for oil's high prices, not any lack of supply
How to Invest in the Globe's Booming Population
Betting on commodities by buying futures contracts directly can be very risky. So having a core position in a fund that invests broadly in commodity-related businesses with some side positions tied specifically to agriculture and energy is probably the smartest move for the retail investor
Mineral Wealth Set to Transform Mongolia into 'Minegolia'
A nation of just over 3 million, where herding and agriculture have long been the dominant features of the economy, Mongolia is on the cusp of becoming a global financial supernova. Experts estimate that the country possesses as much as $1 trillion-worth of untapped precious metals and minerals
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Low Interest Rates Support Higher Gold Price
Concerns about higher inflation and fears of a downturn have helped boost gold's price, but the biggest contributor has been historically low real interest rates. Here's why the price of gold has the potential to move even higher
Gold ETFs Still Shine in a Diverse Portfolio
According to some analysts, gold may hold the bulk of this run into 2012; at least three major investment banks hiked their price forecasts, though some do expect gold to pull back from what they see as current highly speculative levels. Here's a look at some of the leading gold ETFs
Gulf Markets Worry About Oil Outlook
Fear that the days of global economic recovery and rising oil prices may fast be fading has sent shivers through Gulf stock markets
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Why Copper Is the Metal to Watch
In recent weeks, metals of all sorts -- precious and industrial -- have taken a beating in a major selloff in the commodities market. Experts cite a number of reasons, including speculation, increased margin requirements, and concerns that the economic recovery may not be as strong as previously thought. But experts say the losses in copper are the most troubling
Demand and Disasters Complicate Global Energy Picture
The global energy picture has become more complicated in 2011, but investors are making some sense of it. The nuclear outage in Japan and turbulence in oil-producing nations is prompting increased demand for alternative electricity sources such as natural gas and coal, though both carry some environmental concerns
What You Really Pay for at the Pump
Do you know exactly what you're paying for when you fill up? Not all of your hard-earned dollars end up in the coffers of big gasoline tycoons or Middle Eastern despots. The list of players is long, so we talked to the experts to find out where your money goes when you cash out at the pump
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What Next for Gold? Is Gold's Latest Selloff a Turning Point?
Gold's Hype May Blind Average Investors To Its Inherent Risk
New ETF Holds Gold As Well As Silver, Platinum and Palladium
In Gold's Shadow: How Other Metals Fit Into Portfolios
What Gold Can and Cannot Do For You
Gold Remains Volatile But Worth Modest Gleam in Portfolio
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China Says Exports to West Face Challenges
China's commerce ministry says its exports face 'severe challenges' because of economic problems in its key Western markets
China ETFs On Sale, But Worth the Risk?
Exchange-traded funds that track China had been high-flyers over the past few years. This year has been a different story, featuring a double-digit percentage drop that has now run into a mild late-year bounce
Economic Growth Slows in India
Economic growth in India slowed during the third quarter falling to 6.9 percent from 7.7 percent for the previous quarter
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How to Play Emerging Markets With U.S. Stocks
Because of the volatility and instability often associated with less-mature foreign financial markets as well as potentially undependable and non-standardized financial reporting, investing in stocks through foreign exchanges turns off many U.S. investors. Another option is investing in U.S. companies that rely on exports -- to Asia, Latin America, and elsewhere -- to boost their bottom lines
Investing in the Globe's Emerging Bright Spots
Although emerging markets have taken a dive lately, the long-term outlook for these fast-growing countries remains favorable for investors, especially as growth in much of the developed world stalls. Investors should consider folding high-growth global exposure into a balanced portfolio
Forget the BRICs: How to Invest in Emerging Markets
Jim O'Neill, chairman of Goldman Sachs Asset Management, singled out the four BRIC countries in 2001, but now he's decided to drop the term BRIC. That's because he's adding Mexico, South Korea, Turkey, and Indonesia to the previous BRIC countries, and referring to the group as 'growth markets.' Should this new distinction matter to the individual investor?
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Globalization and Unemployment
By relocating some parts of international supply chains, globalization has been affecting the price of goods, job patterns, and wages almost everywhere. It is changing the structure of individual economies in ways that affect different groups within those countries differently. In the advanced economies, it is redistributing employment opportunities and incomes
Russia Stocks Soar on Rising Oil Prices
Of the rapidly growing BRIC countries Russia has always been a sort of odd man out. While the others have registered double-digit or near double-digit growth for years, the Russian economy has grown at a much more moderate pace. But lately, Russia's economy has been benefiting from what many other nations, including the United States, are struggling with
'Latin American Decade' or Wishful Thinking?
'Will 2011 be the dawn of the Latin American decade?' asked the headline of a Standard & Poor's webcast. When I saw it, I wondered whether the firm was making a big blunder, or I was missing the biggest economic story in the region. The headline was only the latest of several optimistic reports about Latin America's economies. All of a sudden, Latin America is becoming an emerging economic star
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The Appeal of Emerging Markets Bonds
Latin America's Economic Bonanza May Be Short-Lived
Growth Expected to Continue in Emerging Markets in 2011
Best Emerging Markets Funds for the Long Term
Economic Woes Put Brittle Nations on Edge
12 Reasons to Invest in Africa
Why Emerging Markets Belong in Your Portfolio
Is Latin America Booming? Not Quite Yet
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Luxury Retailer Stocks Primed for Holidays
Luxury retailers will likely continue to please their stockholders this holiday season, just as they have throughout much of the economic downturn. It is one way that an average investor can benefit from spending patterns of the well-to-do
Why You Should Invest in 'Global Gorillas'
Global large caps offer a fairly conservative approach to investing in booming emerging markets
The Most Successful Companies Stay Relevant
Staying relevant is never easy for a company or its long-suffering investors. Firms and their products can go in and out of style -- and out of profitability, as well. Selecting those that will prosper year after year through good and bad times while rewarding their shareholders is an accomplishment
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How One Amateur Investor Spots Stocks Before Wall Street
Do amateur investors like you have any advantages over professionals? Perhaps ...
Green Technology Stocks Take Their Licks But Keep on Ticking
Taking advantage of greatly reduced stock prices is a tricky business. One strategy is to find an investment area so certain to grow that it will be around long after market traumas subside. Green investing, which offers the added potential of innovative companies getting snapped up by bigger firms, could be one of those areas
Why There's a Disconnect Between Stocks and the Economy
While the U.S. economy is saddled with sluggish growth, a near double-digit unemployment rate, and a housing market plagued by foreclosures and falling prices, the stock market has been booming since hitting bottom in March 2009
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Investors Have Their Heads in Cloud Computing
The global cloud-computing market is expected to reach $241 billion in 2020, up from $41 billion in 2010, according to Forrester Research. That long-term potential is reflected in the high-flying stocks of companies actively involved in the concept
Factors That Drive Stock Prices
When deciding how to allocate your stock portfolio to different regions of the world, there are many factors investors should consider. A stock market's valuation, the country's expected economic growth, and the actions of its central bank all play a role. Here are five factors that drive stock prices
How Dividend Payers Boost Returns and Reduce Risk
With bond yields so low, dividend-paying stocks can be a good alternative for income-seeking investors
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Health Care a Sound Investment Despite Slow Economy and Reform
Ominous Signs for Stock Investors
High-priced Stocks Worth the Money?
Where to Find the Dividends Now
The Case for (and Against) European Stocks
Why Big U.S. Stocks Look Like a Good Bet
Consumer Staples Positioned Well for the Recovery
Google's Growth Could Slow But Still a Solid Buy
Why You Should Buy Stocks That Pay Dividends
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What Happens If We End the Fed?
Whatever view one takes, ending the Fed is a goal much more easily stated than accomplished. But if Fed bashers got their wish, here are a few snapshots of how the country might change
Ron Paul: Federal Reserve is Like Drug Addiction
It's no secret that Ron Paul is no fan of the Federal Reserve, but recently he likened the system to drug addiction -- something that feels good at the time but will end in destruction
Fed Stands Pat, But Signals Darker Days Ahead
Federal Reserve Chairman Ben Bernanke showed the limits of monetary policy, leaving interest rates at their historic lows while scaling back economic projections for 2012 and beyond
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Beige Book Says Economic Recovery Still Slow. What Now?
The economy is growing, but barely. What more might the Fed do to spur recovery?
Inflation Could Help Flagging Economy
Accusations that the Fed is overstepping its mandate generally imply that it is underweighting the imperative to keep inflation low in favor of trying to lower today's stubbornly high unemployment. This accusation is profoundly misplaced, for three reasons
Fed Created A Recipe for Disaster in Housing Market
Yes, there has been no entity more central to inflating the housing bubble and rescuing banks during the crisis than the Federal Reserve. At the heart of these errors has been a departure from the Fed's mandate of keeping credit and money growth in line with the real economy
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The Fed Caves to the Whims of Congress
It's impossible for the Federal Reserve to violate its dual mandate: The dual mandate is meaningless. Congress demands that the Fed maximize employment and minimize inflation -- but it gives the Fed zero measurement standards, zero time horizons, zero advice on how to trade off these two potentially conflicting goals
Federal Reserve is No Longer Beyond Influence
The Federal Reserve has long been viewed as the most independent and steady of the federal bureaucracies; the gold standard, if you will, of bureaucratic operations. However, observers today have cause to question that reputation and many are
Blame Bernanke and Federal Reserve for Economic Crisis
To say that the Federal Reserve has simply overstepped anything is a grand understatement: The Fed is the chief culprit behind our economic crisis
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Fed Saved Economy but Did Little to Rein in the 1 Percent
For Better or Worse, Fed Is Just Doing Its Job
Dodd-Frank Brings Transparency to Financial Industry
China Cuts Its Holdings of United States Debt
Central Banks Lend Dollars to European Banks
Federal Reserve Relaxes Debit Card Regulations
Washington Plays Chicken With the Market
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Why Investors Should Keep Their Eyes on the Cloud
Analysts say cloud computing will revolutionize the way we use technology
Green Technology Stocks Take Their Licks But Keep on Ticking
Taking advantage of greatly reduced stock prices is a tricky business. One strategy is to find an investment area so certain to grow that it will be around long after market traumas subside. Green investing, which offers the added potential of innovative companies getting snapped up by bigger firms, could be one of those areas
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IBM Unveils Cognitive Thinking Chips
It's been a recurrent theme in science fiction. Now, IBM researchers have unveiled a new generation of experimental computer chips designed to emulate the brain's abilities for perception, action and cognition.
Investors Have Their Heads in Cloud Computing
The global cloud-computing market is expected to reach $241 billion in 2020, up from $41 billion in 2010, according to Forrester Research. That long-term potential is reflected in the high-flying stocks of companies actively involved in the concept
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High-priced Stocks Worth the Money?
How much would you pay for the services of Warren Buffett, Larry Page, Steve Jobs and Jeff Bezos? Quite a bit, apparently. Those CEOs of Berkshire Hathaway Inc., Google Inc., Apple Inc. and Amazon.com Inc. lead companies that command some of the highest individual stock prices
Tech Stocks Volatile But Undeniably Strong
Why do tech stocks build us up just to let us down? Technology's track record is one of dramatic peaks and valleys for its investors. However, its most recent run-up seems to have more fundamentals behind it than many of the past periods of hype
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Tech Trauma Should Ease as Demand Climbs
Cisco Systems Charging Hard Against Competitors
eBay: Competition and Changing Trends Cloud Online Marketplace's Future
Computer Giant HP Weathering the Drama
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Large-Cap Growth Funds Most Resilient in 2011
Large-cap growth funds have held up better than most other types of stock funds in 2011
China ETFs On Sale, But Worth the Risk?
Exchange-traded funds that track China had been high-flyers over the past few years. This year has been a different story, featuring a double-digit percentage drop that has now run into a mild late-year bounce
In This Market, the Appeal of 'Go Anywhere' Funds
These funds give portfolio managers considerable leeway in choosing among different asset classes
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Are Leveraged ETFs Ever Right for Retail Investors?
Who are leveraged exchange-traded funds meant for? The answer depends on your level of sophistication and investing time horizon
A Beginner's Guide to Understanding ETFs
If exchange-traded funds sound like exotic investments to you, here's what you need to know
Are ETFs to Blame for the Rise in Volatility?
Seventy billion shares of ETFs were traded last month, up 86 percent from July
Why You Should Give ETFs a Try
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20 Funds That Can Weather Downturns
To help find funds that have a history of strong performance in rough times, we compiled a list of funds, spread among a range of asset classes, with impressive 10-year track records
Gold ETFs Still Shine in a Diverse Portfolio
According to some analysts, gold may hold the bulk of this run into 2012; at least three major investment banks hiked their price forecasts, though some do expect gold to pull back from what they see as current highly speculative levels. Here's a look at some of the leading gold ETFs
Smoothest Mutual Funds Offer Stability in Volatile Times
The bright side of the topsy-turvy situation, if there is one, is that it has added to the luster of smooth-performing investments. While such careful choices won't be leaders in hot markets, they provide a desirable safety net in downturns
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Unusual Stock Funds Intriguing, Still Judged on Performance
When Asset Size Matters in Fund Investing
PIMCO's Bill Gross Wades Into Active ETFs
The Appeal of Go-Anywhere Funds
What Investors Can Learn From Fund Flows
Tax Tips for Mutual Fund Investors
Elephant-Sized Mutual Funds Slow to Adapt But Steady
Target Date Funds Have Performed Better in Latest Market Downturn
Research Vital to Finding Right Target-Date Retirement Fund
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Financial Rebalancing Act: Stop Worrying About Global Flow of Capital
The global financial crisis has only just begun to recede, but economists and policymakers are already considering its future implications. Has the Great Recession introduced a new economic era? Or was it a temporary shock that will eventually correct itself? The answers to these questions will affect a number of vital economic issues
Washington Plays Chicken With the Market
Politicians in Washington may be playing a game of chicken with the possibility of a U.S. default, but one of the most important spectators -- the bond market -- hasn't noticed yet
Insider Trading Scandal Shows the Audacity of Greed
The conviction of Raj Rajaratnam on all 14 charges could be the turning point in the ever-recurring debate on insider trading. The argument that it benefits the whole economy by forcing asset prices to adjust to reality looks a lot less appealing in the light of the courtroom exposures. What we see is a network of conspiracy to get rich quick more pervasive than previously imagined
What Standard & Poor's U.S. Outlook Downgrade Means
Investors awoke last Monday to two important reports on the U.S. government's credit worthiness from two of the biggest ratings agencies in the United States. Standard and Poor's downgraded its outlook for U.S. debt to negative, while Moody's Investors Service held its rating at stable
Confidence Remains Strong in Global Markets Despite Crises
International investment experts see safe global companies to invest in that are reasonably priced because so many investors have become petrified by world events. Here are some of the best examples of stable major companies expanding their products into high-growth emerging markets
Russia Stocks Soar on Rising Oil Prices
Of the rapidly growing BRIC countries Russia has always been a sort of odd man out. While the others have registered double-digit or near double-digit growth for years, the Russian economy has grown at a much more moderate pace. But lately, Russia's economy has been benefiting from what many other nations, including the United States, are struggling with
Energy and Construction Stocks Looking Good -- For Now
While there are solid prospects for stocks of engineering and construction firms, they won't come from efforts to rebuild a devastated Japan. The primary drivers will be high oil prices, general economic revival and U.S. government spending programs. Oil prices are important because international and national oil companies are the top customers for engineering and construction services
What Investors Can Learn From Fund Flows
Investors can learn a lot from looking at which funds fellow market participants are flooding into or shunning. By analyzing trends in fund flows -- which measure the amount of money entering and exiting different types of funds -- investors can sometimes glean which asset classes are overheating or unloved
High-priced Stocks Worth the Money?
How much would you pay for the services of Warren Buffett, Larry Page, Steve Jobs and Jeff Bezos? Quite a bit, apparently. Those CEOs of Berkshire Hathaway Inc., Google Inc., Apple Inc. and Amazon.com Inc. lead companies that command some of the highest individual stock prices
5 Reasons Investors Should Not Bail on Japan
Japan's economy doesn't show signs of recovering any time soon, especially in the aftermath of the earthquake and tsunami, and amid concerns about a damaged nuclear plant. But despite its hardships, Japan is still a legitimate force in the world economy, and many trade partners depend on exports from a range of Japanese companies. Here are five reasons investors shouldn't abandon Japan
What Happens After Quantative Easing 2 Ends?
The Federal Reserve's second round of quantitative easing is slated to end in June. Experts expect the Fed to finish the program, in which it pledged to buy $600 billion worth of treasury bonds. There has been much speculation about what will happen in the markets when the Fed ends QE2 and the economy is left to stand on its own without any stimulus
Questions surround the legacy of the Federal Reserve's second round of quantitative easing -- commonly referred to as QE2 -- and its effectiveness in kick-starting the economy. The Fed's first statement of 2011 remains largely unchanged from previous ones. Still, the program has its share of critics, who believe QE2 is causing bubbles and inflation both in the United States and overseas
Muni Bond Market Safer Than You Think
Pay close attention to the quality of the municipal bonds and municipal bond funds that you own or are considering buying. That's the best advice for investors in this panicky 2011 in which fleeing the muni bond market is a national obsession. Calm down and remember that all municipal bonds are not alike. Here's why
Is Now the Time to Buy Municipal Bonds?
Worries about out-of-control state deficits, underfunded municipal pension plans and rising interest rates have been kicking the teeth out of the municipal bond market lately, with prices plunging and yields soaring. And that's got some contrarians saying that now may be the time to jump into the market
The biggest challenge under current market conditions is that the most conservative investments return almost nothing, so any investor interested in income has to take some risk. In this article, I will be discussing some investment alternatives that can provide you with higher income, but, while conservative, they are not risk-free
Cash Rich Companies to Watch in 2011
Cash-rich companies are in excellent financial position to increase their dividends, buy back their own shares, make prudent acquisitions of weaker competitors, and invest in research and development. Their stock could also be worth more than the price indicates because so much money is stashed in the company safe. Here's a closer look at some famous 'big dogs' in cash
How to Navigate the Bond Market in 2011
The outlook for the bond market in 2011 remains uncertain. Recently, treasury yields have moved upward, causing some investors to panic and forecasters to call for the end of the bond market's bull run. The big question: whether or not interest rates (and bond yields) will rise in the new year. That will depend on a number of factors. Here's suggestions from experts on how to weather the bond market in 2011
8 Investing Resolutions for 2011
Along with your New Year's resolution to eat healthier or go to the gym more often, take some time to examine your investment portfolio. Use the holiday break to get your investments in order, whether your goal is retirement, college, a new home, or a combination of those. Here are eight investing resolutions for 2011
Growth Versus Value Investing in 2011
Growth versus value investing is shaping up to be a horse race in 2011. While growth stocks had maintained the lead throughout much of 2010, the performance margin between the two narrowed later in the year
Experts Offer Advice on Investing in 2011
How would you invest $10,000 in the coming year? We pose that question annually to a panel of investment experts. This year's group is upbeat about investment prospects for 2011, with stocks considered a better bet than bonds. Yet everyone is spreading their selections around as much as possible
Investors Ease Back Into Stocks
Retail mutual fund investors may finally be changing their ways. After five straight months of outflows, stock funds saw inflows in October, according to the Investment Company Institute. Investors poured $441 million into stock funds in October, after pulling out almost $11 billion in September
What Investors Can Learn from the Insider-Trading Scandal
Retail investors are already skittish, Toonkel writes, and an insider-trading scandal may only makes things worse. Harold Evensky, president and principal of Evensky & Katz LLC, told Investment News: 'I am worried that this is just another nail in the coffin, in terms of undermining investor confidence.'
The Consequences of Fiscal Irresponsibility
The U.S. government is incurring debt at a historically unprecedented and ultimately unsustainable rate. The Congressional Budget Office projects that within ten years, federal debt could reach 90 percent of GDP, and even this estimate is probably too optimistic given the low rates of economic growth that the United States is experiencing and likely to see for years to come
G20 Summit: Hitting Singles in Seoul
In their uninspiring communique from Seoul, leaders of the Group of Twenty (G20) sought to put a favorable gloss on their disappointing summit. But their 'pledge to continue our coordinated efforts and act together' could not paper over a sorrier reality: The further the G20 gets from the financial crisis, the farther apart its members drift
Legendary Fund Manager Bill Miller Sees Good Times Ahead
Legendary mutual fund manager, Bill Miller, perhaps best known for his 15-year streak of consecutively beating the S&P 500, sees better times ahead
QE2: Potential Winners and Losers
As expected, the Federal Reserve will once again engage in another round of quantitative easing. The goal: to push interest rates lower, which is aimed to encourage more borrowing and help jumpstart the economy and the job market. Quantitative easing has come under a great deal of scrutiny over the past few months. Here are a few potential winners and losers
Inflation or Deflation: What's It Going to Be?
October 25th an historical day for the Treasury Inflation-Protected Securities (TIPS) market. For the first time ever, a group of TIPS were sold with a negative yield. Investors generally use TIPS to protect their money from inflation. These securities are intended to generate a gradually rising stream of interest payments as inflation rises
Why the Dow Usually Rallies After Midterm Elections
Democrats and Republicans may both have something to celebrate in the months following the midterm elections: A stock market rally.
Volatile Markets Beckon Beginning Investors
Will beginners rush in where veterans refuse to tread? The exodus from financial markets by many weary investors who have lost both courage and money is understandable. They need a timeout. However, continued market volatility also has a chilling effect on those who would otherwise be considering investment for the first time. It just doesn't seem worth the effort right now. However ...
Large Cap Stocks Move Up in 2010
Large-cap stocks, low in price but high in exposure to rapidly-growing international markets, appear poised for a comeback. Of course, not all big companies are great. A good one must have strong management, understanding of its markets and ability to make money in both good and tough times. Here's a group of large cap stocks that meet the criteria
Wall Street Had a Meltdown, and All We Got (Besides the Bill) Was an Interminable Argument
D. Keith Johnson's appearance before the Financial Crisis Inquiry Commission was not a showcase of wit and satire. Nor was it replayed incessantly on cable news networks. Yet in his testimony, Johnson pulled back the proverbial curtain on the wizards of Wall Street, offering key insight into the drama that is affecting every American's life
With a crushing recession and a still-fickle economy weighing heavily on Americans' minds, it should come as no surprise that investors aren't exactly in the mood to ratchet up their risk profiles
4 Reasons To Look Beyond Treasuries
Treasuries remain one of the safest investments because they're backed by the full faith and credit of the United States government. That makes them attractive to skittish investors during a down market. The problem is that treasury yields are near historic lows. Here are four reasons why you should diversify your portfolio outside of treasuries
Investing Strategies for This (Or Any) Market
Economic blues at home and debt crises abroad, a sickly job market, and a general fearfulness are still weighing heavily on the minds of many Americans. At times like these, it's worth taking stock of some of the investing basics that can make any portfolio a less fraught proposition. Consider the following a checklist for staying sane when markets seem to be anything but friendly
How to Navigate a Low-Rate Environment
Many experts believe that inflation is no longer a major concern, so the Federal Reserve's announcement -- that it will buy long-term treasury bonds -- shouldn't come as a huge surprise. As such, it will be another year before any changes in the Fed funds rate. With that in mind, here are some ways investors can prepare their portfolio for a slow economic recovery
Will the REITs Rally Continue?
You've probably noticed some vacant office buildings. But what you may not have seen is commercial real estate's latest rally -- at least on Wall Street. Real estate funds, which primarily invest in real estate investment trusts (REITs), are the best-performing fund asset class so far this year. Is there still room for REITs to run? It depends on who you ask.
The Great Decoupling of Corporate Profits From Jobs
Earnings reports are coming in, and they're making Wall Street smile. Corporate profits are up. The 500 largest non-financial American firms held almost a trillion dollars in the second quarter, and that money pile is growing larger. Profits that plummeted in the recession have bounced back. So with all this money and profit, they'll start hiring again, right? Wrong -- for three reasons
Senate Passes Landmark Financial Reform Bill
The Senate gave final approval to a 2,300 page financial reform bill after over a year of craftsmanship, concessions, and marathon debates. President Obama is expected to sign the bill, putting into law unprecedented regulations on Wall Street and protection for consumers
Republicans' Aversion to Financial Reform Misguided
You would think financial reform -- after what bankers just put us through -- would be the one thing that Republicans would join in doing. However, GOP party leadership ducked its responsibility by fabricating a different narrative as to what caused the financial crisis. It's time to take on those myths and spell out the real reasons they did not support financial reform
Did Goldman Sachs Get Off Easy?
In the wake of the Securities and Exchange Commission's announcement that it has settled its case against Goldman Sachs, experts are divided about who exactly comes out ahead in the proposed deal. For its part, the SEC s touting the settlement as a landmark victory. Still, other observers have been lining up to say that Goldman got off easy.
Why the Economy Isn't Quite as Bad as It Seems
Some have sounded the alarm that a double-dip recession could be approaching. But even as the possibility looms that the economy could slide back into recession territory, economists are still by and large betting against it. Lifted by a handful of bright spots in otherwise bleak economic data, the prevailing sentiment appears to be that the ongoing slump is just a bump in the road
Managing Debt Remains Key in Face of An Uncertain Economy
Easing out of recession amid the economic and market ambiguity of 2010 is the uneasy position that average consumers find themselves in these days. Piling up home-related debt and betting on immense financial-market gains -- the popular game plan of a few years ago -- is no longer in step with the times
Should Investors Sit This One Out?
Perhaps the most daunting aspect of the recent market turmoil is the simple fact that whenever stocks shoot up, a whole army of rally-killing scenarios seems poised to swoop in and drag prices back down. As this confluence of factors injects a sense of unpredictability into the stock market, it's no surprise that many jittery investors have opted to sell some holdings and hang onto the cash
There's No 'Perfect Time' to Dive Into Investing
Investors shouldn't hold their breath. In 2008, stock prices were low but prospects dim as our financial system teetered. Gains in 2009 were a rebound from that low point but came as a surprise. In 2010, Europe's financial weakness has shocked the world. What's a novice investor to do? Stop waiting for a sign, say the experts
Keep Bond Portfolio Broadly Diversified
With uncertainty about the economy and the government deficit, inflation expectations and the direction of interest rates, bond investors are in a pickle. So what to do? Should investors abandon bonds and bond funds or keep their money only in the shortest-term instruments to minimize risk of principal loss if interest rates rise?
Financial Reform Legislation Gives Shareholders More Say
Financial reform seems certain to usher in rules that shareholder advocates have been trying to win for decades as a way to rein in runaway executive pay and make corporate boards more responsive to shareholders.
7 Valuable Lessons For Investors
In this stomach-churning market of dramatic highs and lows, it's easy for investors to lose their way. It may be time to reevaluate your strategy and refresh your investing know-how. With that in mind, a group of professional money managers provide their best investing advice
Who Got Hit Worst in the Market Crash
Media coverage of the 2008 market crash often focuses on investors close to retirement age. The story line is that pre-retirement investors took some of the worst hits and compounded their difficulties when they panicked and sold at market bottom. All true. But, the overall record of these close-to-retirement investors actually is considerably better than those of other age groups
Wall Street Probes: Collateralized Debt Obligations
Collateralized debt obligations, once hailed as the ingenious brainchildren of a Wall Street that knew no bounds, are now at the center of a widening government probe into the nation's most prominent banks. And as the focus gradually shifts from Goldman Sachs to all of Wall Street, CDOs have become the rallying cry for those who see the need for regulators to erect walls between banks' divisions
European Debt Crisis Affects Investments
Despite the initial confidence boost, a number of questions remain unanswered. Chief among them is what European Union countries will do to keep the problem from spiraling out of control after this temporary stopgap expires. Here you'll find explanations as to what has already happened and tips for what's on the horizon
Many 'Wide Moat' Companies Losing Competitive Advantage
Every company is looking over its shoulder these days. The number of firms with a 'wide moat' that presents an almost insurmountable obstacle to potential competitors has been declining. Rapid-fire innovation, technology and globalization mean challengers can arise from almost anywhere. Competitive advantage these days is difficult to obtain
Your Guide to the Goldman Sachs Lawsuit
As the Securities and Exchange Commission thrusts the Goldman Sachs case onto the national stage, Americans are once again getting acquainted with the most controversial members of the recession-era cast of characters: the subprime mortgage, the 'too big to fail' doctrine, the Wall Street bailout, and the housing bubble, just to name a few.
Time to Break up the Big Banks
Amid a flood of revelations about Wall Street fraud and corruption -- from mortgage brokers peddling loans they knew couldn't be paid back, to rating agencies dressing up junk with AAA ratings, to Goldman Sachs creating and selling a security designed to fail. The major question is whether the Senate will step up and vote to break up the big banks
News that the Securities and Exchange Commission filed a civil suit against Goldman Sachs has sent the investment bank's stocks reeling. But are investors overreacting? To be sure, the case is bad news for Goldman, which has come under fire recently for its handling of mortgage-backed securities during the downturn
Contrarian Investors Target Promising Out-of-Favor Stocks
Running with the herd is the most popular way to invest because everyone will commend you for heading in the right direction. Taking a contrarian view, on the other hand, opens you to ridicule from your peers. You may seem out of step, as if you missed getting the proper message or aren't smart enough to grasp the obvious.
Small-Cap Stocks Poised For Big Comeback
Consider the upbeat scenario: An improved economy reinvigorates consumers, who run out to buy pairs of new shoes. While that is an oversimplified example of cause and effect, it depicts the basic logic behind some of the good prospects for small-cap stocks. They were hammered in 2008, regained momentum in 2009 and show promise for 2010 based on hopes of a better economy
SEC Enforcement Chief Wants to Catch Investment Scammers in the Act
The SEC has never caught as many crooks, ordered as much money returned to investors or slammed as many bank accounts shut as it did in 2009. What's not so positive is that the numbers also reflect that millions of investors lost billions of dollars before the crooks were caught. That has Robert Khuzami -- the SEC's director of enforcement -- pursuing a new tack. Last month Robert Khuzami kicked off an SEC whistle-blower initiative intended to catch the crooks red-handed
Growth Vs. Value Investing: 2010 Promises to be An Exciting Year
The battle of growth versus value investing rages on in 2010. These distinct investment personalities move in cycles, one dominating for a period before being overtaken by the other. And then it starts all over again. Here's a look at potential growth and value investments.
Economic Risk in 7 Countries Spooking Investors
Despite federal spending consuming 27.2 percent of GDP, the United States maintains a Aaa rating. But you can't say the same about many countries in both the developed and developing world where continued fallout from the economic crisis is hurting their credit ratings. As a result, investors have viewed the economic situations in these countries as increasingly risky bets.
Who to Blame for the Financial Crisis
Class warfare, American style, is being waged between Main Street and Wall Street. With President Obama and Democrats in Congress turning up the populist heat against Wall Street, the financial community is losing. Its back is up against the wall. But the administration is also getting its share of the public's rage. So, Who's really to blame?
The Future of the U.S. Economy: 2050
Think back to 1967. The job you have today may not even have existed. The Internet, and all the jobs that have come with it, were decades away. The Detroit automakers were dominant. Quality of life was different, too. The lifestyle of the average American may change just as much from 2010 to 2050 as it did from 1967 to 2006. The economy will especially undergo change.
Wall Street CEOs: The Mea Culpa That Wasn't
Here is the testimony I would have liked to have heard from the CEOs of Wall Street's largest banks -- institutions whose irresponsibility and greed nearly brought down the economy
New Economic, Market Trends Merit New Approach to Once Shunned Investments
Investors seeking industries they can count on in 2010 will have to think outside the box. New economic and market trends require a reexamination of previously-avoided groups, such as regional banks, insurers, shipping companies, utilities, consumer staples firms and auto component companies. All could take a turn for the better in the coming year.
The last decade has seen an extraordinary shift in expectations for the world energy system. After a long era of excess capacity prices for oil and most energy commodities have risen sharply and become more volatile. As such, a crisis is looming which will be difficult to resolve.
How to Fix the Financial System: Let Federal Reserve oversee new regulations for finance giants
In the grip of our Great Recession, with more job losses to come, we have yet to fix the broken financial system that is an underlying cause of this whole mess. How can we do it?
Mid-Cap Stocks Have Reigned in 2009
Mid-cap stocks have been anything but middling in 2009. They've been the sweet spot for investors still leery of the large-cap stocks that burned them in the recent past. Too many big-name companies also seem to be offering only downsizing as a strategy these days.
Know Target-Date Fund's Strategy Before Investing
Forget about resting easy. Target-date funds, billed as confidence-building vehicles that gradually shift your holdings into more conservative fixed-rate instruments as their date nears, have caused some sleepless nights. Investors stashed money in these one-stop retirement plans so they didn't have to worry about making their own allocation decisions. But it has become clear they need to better understand the basic
Festive Times for International real estate Funds
Let's get the party started: An overseas run-up in real estate funds is rocking. International real estate funds are up 38 percent in 2009, or about 100 percent above their market bottom in March, according to Lipper Inc. Global real estate funds that also include U.S. companies are up 28 percent this year.
Oil Investments Are Predictably Unpredictable
Oil companies are the elephant in the room. The wide trading range and erratic movement of oil prices has been perplexing to pundits, investors and motorists alike. You're not hearing bold prognostications or definitive explanations about either oil prices or oil-company stocks. Better to simply wait quietly for everything to play out, most rational people reason. When that will occur, however, no one knows for sure.
Mergers and Acquisitions Perking Up Again
Whether or not you're personally convinced that the recession is just about over, those in the big-buck mergers-and-acquisitions game are believers. 'It's all a sign you can't keep a good capitalist down and eventually greed will overcome fear,' said James Paulsen, chief investment officer for Wells Capital Management, Minneapolis. People are saying, 'Gee, not only are we not going to have a depression, but it looks like we're actually going to have a recovery.'
Working Together, Brazil, Russia, China and India Increase Leverage
In 2003, a report authored by Goldman Sachs economists popularized the term BRICs -- Brazil, Russia, India and China -- to describe a whole new category of emerging-market powerhouse. The report argued that with sound political leadership and relative international stability, the BRIC economies would together outpace the original G6 industrialized nations in dollar terms by 2040 -- a fundamental shift in the global balance of power. Since then, these four countries have assumed ever-greater importance in the international investment community's collective imagination.
What Enron & WorldCom Can Teach Us About Goldman & AIG
Newsweek's latest cover story declares that The Great Recession is over. A Merrill Lynch report concurs, saying, 'The recession is over... We are bullish on global equities.' Goldman Sachs is placing riskier bets on the market than it did before the financial meltdown (and setting aside huge amounts of money to pay its executives). The problem is ...
Smoke Billowing Out of Our Economic Mount Vesuvius
There is currently plenty of alarming smoke pouring out of our economic Vesuvius, but it is being dismissed. Don't worry about economic tremors, we're told, our financial system is back on track, the bailout worked and we'll start our slow but steady climb to recovery. But warning signs are all around us ...
New Era For Stocks: Could be the end of a long, good run
With a little luck, the economy and the stock market should hit bottom sometime this year. In fact, there's a chance that both already have, although it certainly doesn't feel like it. It will be a pleasant moment when we begin to bid farewell to the housing and credit busts, the banking meltdown, and frightened consumers -- all sources of fear that kept Wall Street stomping on the "sell" button. What emerges next, however, is anything but certain.
In a recent survey, more than 3,000 financial advisers weighed in with their picks of the top fund families. Criteria included consistency, ethics, trustworthiness, sophistication, and social consciousness. The survey was commissioned by Horsesmouth, an online adviser community and kasina, a financial services consulting firm. But since straight rankings reveal only so much, We asked a handful of financial advisers which fund families they favor and why.
Separating Deals From Duds: Blindly buying stocks can be hazardous to portfolio
Despite the market's roaring rally over the past three months, some stocks--including those of well-known companies--still look cheap. So how do you separate the deals from the duds? Understand why the stock is cheap.
Basic Materials May Be Unexciting, Except As an Investment
Basic materials stocks sound about as exciting as freshly laid asphalt, but they've become a steaming-hot investment in 2009. This group was devastated last fall as hedge funds abandoned the then-dominant thesis that the world -- especially Asia -- needs to keep building, and summarily dumped the stocks. However, ambitious economic stimulus packages in the U.S. and abroad have revived the need for basic materials.
Emerging Markets Soar but Remain Risky
Emerging markets are like those giant slices of double-mud chocolate-brownie cake offered to you by restaurant servers at the end of your meal. You run the risk of a severe stomachache later, but they sound so good it's hard to resist.
Touted as a revolution in transparency, cost, and access to exotic investments, ETFs are now being slammed for inefficiencies, hidden fees, and opaque structures. Some experts argue that ETFs are just the latest means for investment advisers to hoist flawed products on unsuspecting customers. ...
5 Funds That Are Off to a Fast Start in 2009
Categorywise, large growth, midsized growth, and small growth funds have fared the best so far this year (although small companies have led the rally over the past three months). But not all of the top performing funds fall into one of those categories. Here's a look at some of the front-runners among diversified U.S. stock funds ... But beware ...
Government Intervention & Economic Risk
It's no secret that politics affects economic markets. But in response to a financial crisis or economic downturn, political risk impacts markets much more broadly than just isolated policies and individual stocks.
SEC Boss Mary L. Schapiro Discusses Executive Pay
Mary L. Schapiro has been in the job just a few months, but the Obama administration's new top securities regulator already is pursuing an aggressive agenda that blends souped-up enforcement with new rules designed to give investors more power and...
Not Going to Be Economic Depression
Last week at the Milken Global Conference, three Noble Laureates in Economics sat down to discuss the global recession -- Gary Becker (Nobel Prize, 1992), Roger Myerson (Nobel Prize, 2007) and Myron Scholes (Nobel Prize 1997).
All three agreed that this is not going to be a depression and that the free-market economy is fundamentally healthy.
The Global Economy: Worse & Worser
Today's global economic debacle shares a disturbing number of similarities with the early stages of Japan's "lost decade" of the 1990s.
- Today's Global Economic Debacle: The Japan Fallacy - Richard Katz
- Could America Suffer Lost Decades Like Japan's Lost Decades - Paul A. Samuelson
- The Economic Weight of Brazil, China & India Can Mitigate Global Crisis
- Larry Summers: Brilliant Mind, Toxic Ideas - Arianna Huffington
- Even the United States can Manage Itself into Economic Irrelevance - Chris Thomas
Despite Risks, Some See Opportunities in Speculative Areas of the Market
At a time when so many "sure" investments have let everyone down, speculative investing sounds like simply throwing money down the drain. Shell-shocked investors, wishing no medals for bravery, have contented themselves with safer, low-yield choices.
A Strategy for Stocks? Look Inward First
Uncomfortable putting your hard-earned money in stocks -- even after the recent run-up that has helped recover a portion of the last year's losses?
Strength of Technology Stocks Surprises
Technology is the surprise investment leader this year.