Who Can You Trust?

When the financial industry breaks down, there’s no recourse for lost money. It’s just gone. That’s why I continue to stress education and diligence to individual investors. Learn about all the investment possibilities and risks are, and stay vigilant with how you balance risk and reward.

Bottom for Housing

Perhaps government bailout plans and lower mortgage rates will help. But I’m now officially very skeptical of the consensus 2Q 2009 bottom for the housing market.

Gimme Cheap Money

Here’s my headline for the day: Automakers Have a Plan: Ask for More Money. The original $25 billion needed to save the Big 3 is now above $30 billion. And some analysts are saying the total actually needed is much higher.

The American Consumer

There’s an old Wall Street saying – Never underestimate the American consumer. It’s a back-handed compliment, to be sure. But there’s some truth to it. The U.S. consumer is the buyer of last resort for the world. And past rumors of the American consumer’s demise have been greatly exaggerated.

Obama’s Opportunity

Maybe it’s the freezing temperatures here in our nation’s capital. Or maybe it’s the fact that I’m just tired of watching stock prices fall. But I’m starting to feel like we have a rally for stock prices coming.  And I’ll tell you why.

The Blame Game

Stocks were unable to build on Thursday’s momentum. Friday’s late sell off seemed like a pretty obvious vote of no-confidence for Paulson. It also suggested the market had low expectations that the G-20 meeting that took place over the weekend would lead to any concrete action.  And the market was right.

A Loss of Confidence

So much for the silver lining talk. The Dow Industrials seem intent on testing recent lows. The low close came on October 27 at 8,175. The intra-day low came on October 10 at 7,773. I can’t say it’s a surprise. But it is disappointing.

A Keen Eye for the Obvious

The silver lining for Monday is that some order is returning to the stock market. Declines aren’t triggering stop-losses and margin calls that send stock prices plummeting. Hedge fund and mutual fund redemptions seem to have been completed for the time being.