Estate Planning Newswire
Two takes on what corporate results could mean for this market.
Stock Shopping? Be Sure to Eat First - Smart Money - July 2, 2010
How hunger, scents and other cues can influence your investment choices.
BorgWarner's Turbocharged Prospects - Smart Money - July 2, 2010
Fuel efficiency is a driving force for this big auto supplier.
This Week's Business Tweets: Easy Targets - Smart Money - July 2, 2010
Gloomy predictions from fund manager Bill Gross; Goldman on the defense.
Rising U.S. Debt Brings Catcalls but No Savings - Smart Money - July 2, 2010
Hough: A new federal estimate may underestimate our liability.
Finding Spin In The Financial Services Industry - Forbes - July 1, 2010
The financial services industry may stop short of lying outright, but that doesn't mean that everything they say about their products is the truth.
Eight Questions To Ask Before Buying Into A Senior Community - Forbes - July 1, 2010
A continuing care retirement community requires a big investment and a lot of research.
The Best Foreign Retirement Havens - Forbes - July 1, 2010
Our list includes the expected--Panama, Canada, Australia, New Zealand, Italy, France and Spain. Plus, some surprises. Think World Cup.
Real Estate: 10 Retirement Options - Forbes - July 1, 2010
It's time to start thinking about where you want to live out your golden years.
Retirement: Your Best Moves - Forbes - July 1, 2010
The economy still faces rough going, but now is the time to refocus on where and how you'd like to retire.
Red Ink for Stocks on Economic Worries - Smart Money - July 1, 2010
Disappointing U.S. economic data fanned investors' fears about global growth, pushing stocks...
Retail Notes: A Simpler Alternative To Bond Funds - Forbes - July 1, 2010
As they are meant to be held until maturity, complex pricing is not an issue. Read on to find out more.
Jobs Picture Stalls Employment Stocks - Smart Money - July 1, 2010
Recent data hurt firms tied to temp work, recruitment and payrolls.
The First Annual Cheap Fund Awards - Forbes - July 1, 2010
Vanguard, Blackrock iShares, Schwab and State Street SPDRs take honors for the best index funds and ETFs for really cheap investors.
Harvard Grad Guns for Frank Financial Answers - Smart Money - July 1, 2010
Hoenig: Joel Pollak, who chided Barney Frank in '09, is running for Congress.
Investing In Bonds Of Low-Debt Nations - Forbes - July 1, 2010
David Rolley's fund can shop for bonds anywhere in the world. His favored spot: countries whose low debt loads give them the best chances of paying them off.
Deficit Moves: Work Longer, Fund A Roth And Avoid Long-Term Bonds - Forbes - July 1, 2010
Washington is dithering over the deficit, but you can't afford to. Work longer, fund a Roth and steer clear of long-term bonds.
The SEC's Revolving Door - Forbes - July 1, 2010
Sometimes it's hard to recall if someone is working for the Securities & Exchange Commission or certain law and accounting firms.
Dialing for Celebrity Dollars - Forbes - July 1, 2010
Roughly 25% of our listed celebrities have their own foundations.
Cashing In On Macroeconomic Trends - Forbes - July 1, 2010
Learn to identify the things that may impact your investments down the road.
Investors Digest Finance Bill, Housing Credit - Smart Money - July 1, 2010
WHAT'S HAPPENING NOW: Sorting through the implications of House, Senate moves.
3 Beaten-Down Stocks With Huge Reserves - Smart Money - July 1, 2010
Hough: These companies have the money to fund turnaround plans.
Investing Opportunities Outside the U.S. - Smart Money - July 1, 2010
David Winter, the Wintergreen Fund chief, likes Asian stocks.
Delaware Estate Taxes - Will They Stay or Will They Go? - About.com - July 1, 2010
Last week Delaware State Representative Deborah Hudson (R-Fairthorne) introduced House Bill 492, which is aimed at repealing Delaware's freestanding state estate tax that was just brought back with an effective date of July 1, 2009. According to Hudson, originally the new tax was projected to generate $5 million for the state during the last quarter of Fiscal Year 2010, but with that quarter coming to an end the estimate has been reduced down to a measly $300,000. The estimated revenue for the forthcoming fiscal year is $25 million, and Hudson believes that estimate is way out of line: "Based on our actual experience from the current fiscal quarter, I'm comfortable saying it won't amount to anything more than a small fraction of that."...Read Full Post
You Get Paid For That?! - Forbes - June 30, 2010
We look at five different jobs that most people would be willing to do for free.
The REIT Way - Forbes - June 30, 2010
Ever considered investing in real estate? Read about the REIT and see if it's the investment for you.
Stocks Soros Is Holding - Forbes - June 30, 2010
George Soros once made $1 billion in a day. Find out what he's buying now.
Percentage Budgeting For Seniors: Are You On Track? - Forbes - June 30, 2010
Retirement should be a time to relax and enjoy your golden years, but it's equally important to carefully manage your finances.
Celebrity Charities: Good For Image, But What About Good Works? - Forbes - June 30, 2010
Oprah, Rosie O'Donnell charities run high expenses. David Letterman, Alec Baldwin, Steve Martin keep costs low.
What Caused The Flash Crash? - Forbes - June 30, 2010
Investigators are still trying to figure out what went wrong on May 6, but it seems likely that the crash was caused by multiple interlocking failures.
Understanding Investor Behavior - Forbes - June 30, 2010
Discover how some strange human tendencies can play out in the market, posing the question: Are we really rational?
Dow Falls 10% for Quarter - Smart Money - June 30, 2010
All three major stock indexes swooned to end the second quarter at new lows for the year,...
SmartMoney Recognized for Journalistic Excellence - Smart Money - June 30, 2010
The magazine and web site have been commended in recent contests.
Fund Exodus Continues as Risk Is Shunned - Smart Money - June 30, 2010
For the first time since 2009, investors pulled more out than they put in.
Why The Greater Depression Still Lies Ahead - Forbes - June 30, 2010
Obama, Bernanke pile on debt when de-leveraging is needed.
How Low Can the S&P 500 Go? - Smart Money - June 30, 2010
Analysts estimate the bottom in the wake of Tuesday's stock drop.
Vallejo Bankruptcy Leaves Bondholders Waiting - Smart Money - June 30, 2010
Muni market shows confidence as city sorts out its finances.
Can't Get A Raise? Negotiate Your Benefits - Forbes - June 30, 2010
There are many ways your employer can make your job more pleasant, even when money is tight.
Industrial Stocks Sink as Growth Seen Slowing - Smart Money - June 30, 2010
Tuesday's selloff underscores how new growth expectations have hurt the sector.
Next Question: Is Deflation On Its Way? - Smart Money - June 30, 2010
WHAT'S HAPPENING NOW: Stock market losses raise the prospect of another recession.
Update on New Hawaii Estate Tax - About.com - June 30, 2010
Thanks to Hawaii estate planning attorney Sanford K. Okurafor conducting a thorough analysis of the new Hawaii estate tax law and concluding that the exemption is really $3.6 million, not $3.5 million: 2010 - The New Hawaii Estate Tax. In addition, attorney Okura has calculated that for the first $50,000 over $3.6 million the estate tax rate is 0.8%, and the maximum rate is as high as 16% for estates valued over $10.1 million....Read Full Post
How To Fix Corporate Boards - Forbes - June 29, 2010
Better boards are the key to avoiding mistakes of the past.
Stocks Drop on Global Growth Fears - Smart Money - June 29, 2010
The second quarter's biggest worries took an unwelcome curtain call on Tuesday, hitting global...
How To Find A Bank That Still Offers Free Checking - Forbes - June 29, 2010
Many major banks appear to take the wait-and-see approach on charging account holders.
When Must You Reveal Your Wealth? - Forbes - June 29, 2010
Boy meets girl. Boy is loaded. Girl hasn't a clue.
Defending a Crackdown at Fannie Mae - Smart Money - June 29, 2010
Stewart: Move to curb "strategic defaults" was a long time coming.
Blowing Their Own Horn: Will The World Cup Lure Investment Capital To South Africa? - Forbes - June 29, 2010
As the world watches the action in South Africa, we check out winning investments that provide exposure to this area.
Housing Market in Stumble Mode - Smart Money - June 29, 2010
WHAT'S HAPPENING NOW: As foreclosures loom, banks get aggressive with homeowners.
Will Bond Investors Cheer Austerity Promise? - Smart Money - June 29, 2010
A G20 debt pledge lifted U.S. bonds, but experts say to wait on the budgets.
Insurance Stocks Could Finally Pay Off - Smart Money - June 29, 2010
Often ignored, these insurance middlemen might be a good bet.
NYSE Euronext: Building on a New Trade - Smart Money - June 29, 2010
The parent of the Big Board is becoming more dependent on derivative trading.
Prowrestler's Widow Files Second Lawsuit Against WWE - About.com - June 29, 2010
Back in May 1999 prowrestler Owen Hart died in an accident while being lowered into the ring at Kemper Arena in St. Louis, Missouri. While the fans in the arena witnessed Hart's death, a video interview was being shown on television at the time of the accident and so it was not aired live. Hart was only 34 when he died and was survived by his wife, Martha, and two young children. About three weeks after the accident Martha Hart filed a wrongful death lawsuit against her husband's employer, the World Wrestling Federation (now known as World Wrestling Entertainment, or WWE for short), and in November 2000 the case was settled for $18 million....Read Full Post
50 Years Old And Broke: Now What? - Forbes - June 28, 2010
What do you do if you find yourself close to retirement but far from your savings goals?
Investing Advice for the Second Half of 2010 - Smart Money - June 28, 2010
Three different takes on making midyear changes to your portfolio.
3 Stocks With Improving Outlooks - Smart Money - June 28, 2010
Hough: Estimates and opinions on these companies are turning rosier.
Fund Forum: Q&As With Investing Stars - Smart Money - June 28, 2010
SmartMoney presents a video series from the Morningstar conference.
Using Life Insurance To Make Charitable Donations - Forbes - June 28, 2010
Your life insurance policy can be a great tool for charitable giving. Find out how.
Don't Sweat the High Bond Prices - Smart Money - June 28, 2010
Hoenig: From munis to the yen, go where the action is.
Microsoft: By The Numbers - Forbes - June 28, 2010
How Bill Gates created one of the biggest companies in the world.
SEC's Revolving Door Often Spins More Than Once - Forbes - June 28, 2010
Lines between public service and private profit can be hard to distinguish.
A Financial Advice Wonk's Further iPad Adventures - Forbes - June 28, 2010
A new iPad user finds glitches and gleans solace and enlightenment from unlikely sources.
New Vote Tally, Bill May Offer Banks Reprieve - Smart Money - June 28, 2010
Weaker limits and the death of Sen. Byrd may change regulatory outlook.
Strategists to Investors: Skip the Panic Button - Smart Money - June 28, 2010
Housing and GDP letdowns hit stocks, but market watchers remain at ease.
Estate Tax Repeal Update - Senator Sanders' Super Progressive Estate Tax Bill - About.com - June 28, 2010
Last Thursday Senator Bernard Sanders (I-VT), joined by Senators Sherrod Brown (D-OH), Al Franken (D-MN), Tom Harkin (D-IA), and Sheldon Whitehouse (D-RI), introduced S. 3533, "A bill to amend the Internal Revenue Code of 1986 to reinstate estate and generation-skipping taxes, and for other purposes."This bill calls for the following:...Read Full Post
Financial Reform's Impact on Your Broker - Smart Money - June 27, 2010
Two takes on how reform could alter the rules of fiduciary responsibility.
Financial Reform: Wall Street Wins, Investors Lose - Forbes - June 26, 2010
Fraud, sleazy sales tactics to go on as before.
Trading Strategies And Market Dangers That Hurt Investors - Forbes - June 26, 2010
Beware of the dangers involved in these strategies and roadblocks.
Teachers Facing New Financial Pains - Forbes - June 25, 2010
Layoffs, salary cuts force educators to rethink finances.
Tough Week for Dow Ends With Slip - Smart Money - June 25, 2010
Bank stocks surged, boosted by relief over a deal on new financial-regulation overhaul, but...
Federal Reserve Speak -- Translated - Smart Money - June 25, 2010
Luskin: The economy is muddling along, which means stocks probably will too.
Interview With Best Buy CEO Brian Dunn - Smart Money - June 25, 2010
Why the store sells everything from mobile phones to martini makers.
Self Employed? 5 Steps To Scoring A Mortgage - Forbes - June 25, 2010
Convince lenders that you're a good bet despite your lack of a steady income.
5 Rental Red Flags - Forbes - June 25, 2010
Pay attention to the small things when shopping for a place to rent.
Unreported Claims Against Former Lawyers Could Expose Your Firm to Liability - Site Headlines - June 25, 2010
In Berry & Murphy, P.C. v. Carolina Casualty Insurance Company, 586 F.3d 803 (10th Cir. 2009), a recent malpractice insurance coverage decision, the Tenth Circuit held that there was no coverage under a lawyers’ professional liability policy where a claim against a former shareholder was made prior to the policy period.
Do You Have an ESI Strategy Yet? Companies and In-House Counsel Sanctioned for Poor Oversight - Site Headlines - June 25, 2010
Although it has been more than three years since the Federal Rules of Civil Procedure were amended to codify parties' obligations to preserve and produce potentially relevant electronically stored information (ESI), a recent survey conducted by Kroll Ontrack reflects that only 46% of U.S. corporations possess an ESI readiness strategy.1 Meanwhile, a review of recent judicial decisions on requests for discovery sanctions reflects a growing impatience by courts for a lack of such a readiness strategy and resulting failures to competently preserve and produce potentially relevant electronically stored information.
Appellate Judge Excludes Damages Theory from Patent Trial - Site Headlines - June 25, 2010
As is known among many in the intellectual property field, Judge Randall R. Rader, of the U.S. Court of Appeals for the Federal Circuit, periodically takes a break from his appellate duties to preside over trials of patent cases at the district court level. In one such case, he recently issued a decision reminding lawyers, litigants, and expert witnesses that plaintiffs must have a firm evidentiary foundation before submitting a broad damages theory to the jury.
Supreme Court to Decide Important "Informational Privacy" Case - Site Headlines - June 25, 2010
The United States Supreme Court has stepped into the fray in a closely watched case involving the collection of personal information by the National Aeronautics and Space Administration (NASA) from “low risk” contract employees at the California Institute of Technology’s (Caltech) Jet Propulsion Laboratory (JPL). Robert M. Nelson, et al., v. National Aeronautics and Space Administration, et al., Supreme Court Case No. 09-530. While the result of this case will directly impact the extent to which the government can collect background information from its employees and third-party contractors, a broad decision by the Supreme Court may impact other areas of the Court’s “privacy” jurisprudence.
How Financial Reform May Affect You and Your Broker - Smart Money - June 25, 2010
Two takes on how reform could alter the rules of fiduciary responsibility.
How to Get Taxed 87% in America - Smart Money - June 25, 2010
Hough: High earners who follow these steps will face a super-tax.
Bank Angst? Why Debt Dwarfs Financial Reform - Smart Money - June 25, 2010
Investor concerns over the final bill are overshadowed by global issues.
GDP: It's Steady as She Goes - Smart Money - June 25, 2010
WHAT'S HAPPENING NOW: The third revision of first-quarter growth is expected to be unchanged.
The Week's Business Tweets: Odd Notes - Smart Money - June 25, 2010
Bono takes a break from raising funds and Jack Welch applauds Obama.
MetLife Is Gaining Altitude With Alico Purchase - Smart Money - June 25, 2010
The addition of Alico will make the insurance giant more profitable.
Michael Jackson's Estate - "This is It" is All That - About.com - June 25, 2010
It's hard to believe that Michael Jackson died one year ago today. Since then I have calculated that I have written over 25 blogs about Michael Jackson's estate, and so I have decided to compile them into one easy-to-refer-to location: Blogs About Michael Jackson's Estate....Read Full Post
Three Senators Call For Billionaire Estate Surtax - Forbes - June 24, 2010
Liberals argue 403 U.S. billionaires on Forbes list should pony up to help close deficit.
Stocks Drop; So Do Mortgage Rates - Smart Money - June 24, 2010
Persistent worries about the global economy are roiling the stock market, but they're also...
When Taxpayers Go Fishing For Deductions - Forbes - June 24, 2010
Tax Court's bass fishing decision holds lessons for those tempted to turn their hobbies into businesses.
What if Your Mutual Fund Becomes an ETF? - Smart Money - June 24, 2010
A couple conversions may be on tap. The upshot for investors.
Giving An Inheritance The Right Way - Forbes - June 24, 2010
Putting limits on heirs serves both givers and beneficiaries.
Hasbro's Toy Story Takes a Plot Twist - Smart Money - June 24, 2010
After a takeover rumor, a look at the state of the play in the industry.
With Mutual Funds, Nothing Fails Like Success - Forbes - June 24, 2010
New S&P study shows picking funds based on their past performance is a loser's game.
Why Trophy Artworks Are Bad Investments - Forbes - June 24, 2010
Picassos don't pay, but lesser-known works might.
The Case for Less Liquid Stocks - Smart Money - June 24, 2010
Hoenig: Why two new funds are investing in out-of-favor stocks.
How Strong Is the U.S. Recovery? - Smart Money - June 24, 2010
WHAT'S HAPPENING NOW: Dissecting the Fed's unexpectedly gloomy take on the economy.
3 Companies Priced for a Buyout - Smart Money - June 24, 2010
Hough: Whether targets or not, these firms are attractively priced.
Tom Forester Looking to Boost Cash - Smart Money - June 24, 2010
Forester was the only U.S. equity-fund manager to post a gain in 2008.
To Short, or Not to Short? - Smart Money - June 24, 2010
Stewart: We used ETFs to bet on a stock market dip -- but it didn't work out quite as we planned.
Can a Will Be Probated Before Someone Dies? - About.com - June 24, 2010
Apparently so in a handful of states, including Alaska, Arkansas, North Dakota and Ohio. In Delaware, a trust can be "validated"before someone dies. The theory is that if there are any questions about the validity of the will or trust while the person who made the will or trust is still alive, then it will be easier to prove that the document is legally binding if the person who signed it can actually testify as to how and why they chose the beneficiaries they decided to include in the will or trust....Read Full Post
DJIA, Euro, Treasurys Rise - Smart Money - June 23, 2010
Weak housing data and cautious remarks from the Federal Reserve fueled a volatile day in financial...
3 Stocks That Are Pricier Than They Seem - Smart Money - June 23, 2010
Hough: These companies look undervalued but carry hidden costs.
In Alabama, a Sewer Bond Looks Less Toxic - Smart Money - June 23, 2010
The Jefferson County debacle still weighs on the muni bond market.
Luck Is The Key To Success For Most Top Mutual Funds - Forbes - June 23, 2010
After fees and taxes, virtually all actively managed funds lag indexes: study.
Save Money By Tracking Your Spouse's Spending - Forbes - June 23, 2010
Couples find watchful eyes help them cut costs.
Who Says Your Fund Manager Is Human? - Smart Money - June 23, 2010
In actively managed ETFs, a person is not always pulling the strings.
A Financial Advice Wonk Falls For The iPad - Forbes - June 23, 2010
No reading glasses needed and three downloadable versions of the U.S. tax code. That's true love.
Can't Get A Summer Job? Be Your Own Boss! - Forbes - June 23, 2010
Find out how to get started and what resources are available to help you become a successful entrepreneur.
Easily Reading Bernanke's Mind - Smart Money - June 23, 2010
WHAT'S HAPPENING NOW: Fed expected to keep rates low in today's announcement.
BP: Buying Into a Pariah - Smart Money - June 23, 2010
Everybody hates BP. It has nowhere to go but up, say two investment managers.
ETF Pick: How to Play Consumer Stocks - Smart Money - June 23, 2010
U.S. shoppers are buying again. But not all ETFs that track them can keep up.
Do it Yourself Estate Planning Gone Wrong? - LegalZoom Sued in Class Action Lawsuit - About.com - June 23, 2010
Yes, I have written over and over again about the dangers of do it yourself estate planning, and so no, I was not surprised to learn that LegalZoom has been sued in a class action lawsuit in California due to what has been described as a "flawed"estate plan....Read Full Post
Disbanding The Euro--A Worst-Case Scenario - Forbes - June 22, 2010
What would the fallout be if the world's second-largest currency disappears?
Fifteen Insurance Policies You Don't Need - Forbes - June 22, 2010
Learn how to save money by saying no to unnecessary coverage.
Get Your Budget Beach-Ready - Forbes - June 22, 2010
The same diet and exercise tips that work wonders for your waist line can also help you trim your spending.
Energy Sector Leads Late Drop - Smart Money - June 22, 2010
The energy sector led an afternoon swoon in stocks that left the market sharply lower at the...
Euro's Fall Brings New Bargains Overseas - Smart Money - June 22, 2010
Stewart: Stocks in Europe are cheaper, but some offer more value than others.
Class Action Lawyers Hide Behind Foundation Fig Leaf - Forbes - June 22, 2010
At Grant & Eisenhofer, a front group hosts unseemly schmooze-fests.
Fed's Next Move Will Be To Ease Interest Rates - Forbes - June 22, 2010
Bernanke fixation on deflation risks sparking inflation and a depression.
Six Estate Planning Questions For Women - Forbes - June 22, 2010
For women, estate planning means protecting loved ones and their own retirement security, too.
Seven Ways To Fund Your Child's Athletic Pursuits - Forbes - June 22, 2010
Children's athletic pursuits can put a big dent in parents' budgets. Find out how to keep costs down.
Biggest Corporate Comebacks - Forbes - June 22, 2010
Apple isn't the only major company to learn from its mistakes and return to glory.
Blogging the 2010 Morningstar Conference - Smart Money - June 22, 2010
Live updates of the annual investing meeting from Chicago.
Investing In Precious Metals - Forbes - June 22, 2010
Buying precious metals can act as a hedge against economic turmoil.
Housing Market Offers Expected Drop - Smart Money - June 22, 2010
WHAT'S HAPPENING NOW: Existing homes sales slipped 2.2% in May, and another drop is likely.
Five Forgotten Financial Frauds - Forbes - June 22, 2010
Bernie Madoff reminded us about the Ponzi scheme. Check out some other old scams that may be due for a comeback.
Investing With A Purpose - Forbes - June 22, 2010
Setting goals is the first step in determining which investment vehicles are right for you.
3 Companies With Disappearing Shares - Smart Money - June 22, 2010
Hough: Firms repurchasing heaps of stock, a generally promising sign.
Boomers' Burden: Aging Parents Who Shouldn't Drive - Forbes - June 21, 2010
Adult children need to help mom and dad recognize when it is time to turn over the car keys.
Stock Rally Fizzles - Smart Money - June 21, 2010
The much-anticipated rally inspired by China's talk of currency revaluation lasted less than...
The Pantry Chain Looks Tasty - Smart Money - June 21, 2010
The convenience-store company could eventually become takeover bait.
Avoiding Sanctions Over Duty to Preserve Evidence - Site Headlines - June 21, 2010
In late 2009 a federal District Court sitting in Orlando, Fla., sent shockwaves through the in-house general counsel world. The case, Swofford v. Eslinger,1 is the first reported case to sanction in-house counsel for spoliation of electronic evidence.
Supreme Court Rules Against Inference of Class Arbitration in "Silent" Contracts - Site Headlines - June 21, 2010
April 27, 2010, with Justice Samuel Alito writing for the 5-3 majority (Justice Sonia Sotomayor abstained), the U.S. Supreme Court addressed class-action arbitration when the parties' agreement was silent regarding the aggregation of multiple parties' claims. According to the Court, the arbitration panel's imposition of class arbitration – despite the parties' stipulation that they had not reached an agreement on this issue – is "fundamentally at war" with the Federal Arbitration Act (FAA) principle that arbitration is a matter of consent.
Major Title Insurance Companies Decline to Issue Creditors' Rights Endorsements - Site Headlines - June 21, 2010
Many major national title insurance companies have just announced they will no longer provide "creditors' rights" coverage in connection with new policies of title insurance. Therefore, commercial real estate lenders and purchasers will now bear certain insolvency risks that were often covered by title insurance endorsements in the past.
Patent False-Marking Lawsuits: Could Your Company Be Next? - Site Headlines - June 21, 2010
If you own U.S. patents and mark your products as patented or patent pending, you could find yourself defending a federal lawsuit. A recent Federal Circuit Court of Appeals decision has opened the floodgates for qui tam plaintiffs to challenge the accuracy and validity of patent marking, requesting to split any statutory damages award with the government—assessed “per article.”
Dividend Stocks Worth Dialing in For - Smart Money - June 21, 2010
Hoenig: Telecom stocks look intriguing and have pricey payouts.
3 Key Questions on Actively Managed ETFs - Smart Money - June 21, 2010
As another bank jumps into the fray, we ask experts how to size up these funds.
Estate Planning, As Told By Clint Eastwood In 'Gran Torino' - Forbes - June 21, 2010
The right plan will maximize the good you do and minimize taxes.
Retailers On The Ropes - Forbes - June 21, 2010
Ten consumer-reliant chains facing financial difficulties.
Looking at the Week Ahead - Smart Money - June 21, 2010
WHAT'S HAPPENING NOW: From the rising yuan to existing home sales and news from the Fed.
4 Funds With a Hefty Stake in Gold - Smart Money - June 20, 2010
As the metal strikes new highs, these funds could benefit.
Why So Few Self-Made Billionaire Women? - Forbes - June 18, 2010
Nature vs. nurture revisited--with a whole lot of zeroes at stake.
Best Amusement Parks For Your Buck - Forbes - June 18, 2010
We break down some of the U.S.'s most popular amusement parks to find out which one provides the best value.
The FHA 203(k) Loan: A Home Repair Loan And Mortgage All In One - Forbes - June 18, 2010
If you're looking at a fixer-upper, the Federal Housing Administration rehab loan may be the mortgage for you.
DJIA Edges Up; New Gold Peak - Smart Money - June 18, 2010
Stocks extended their winning streak to a second week, buoyed by Caterpillar's report of strong...
Markets, Economic Data Suggest a Soft Patch - Smart Money - June 18, 2010
Economists see headwinds in the labor and housing sectors.
5 Stocks Now Trading Under a Buck - Smart Money - June 18, 2010
These once-strong stocks could soon be delisted -- or take off.
Hidden Holiday Fees And How To Find Them - Forbes - June 18, 2010
Going on vacation is expensive, but unexpected costs can make it downright unaffordable.
Target-Date Funds: Will More Clarity Matter? - Smart Money - June 18, 2010
Industry experts discuss the merits and limits of the SEC's proposed rules.
Buy Bonds Now - Smart Money - June 18, 2010
Luskin: Interest rates will stay low for a while, so take some risk. Here are the best bond plays.
Gender Gap Shrinks but Few Are Cheering - Smart Money - June 18, 2010
Hough: Men and women draw closer on wages, but both are struggling.
Managing Your Portfolio: One Father's Advice - Forbes - June 18, 2010
Common sense is still the key to making money in stocks and bonds.
Investments That Crank Out Cash - Smart Money - June 18, 2010
How REITS, dividends and global bonds can generate income for a portfolio.
How To Cut The Cost Of A Variable Annuity - Forbes - June 18, 2010
If you've already bought a high-cost, deferred variable annuity, consider exchanging it for a low-cost one.
How To Profit From The Oil Spill - Forbes - June 18, 2010
Disaster can spell opportunity for intrepid investors.
European Banks to Get Stress Tests - Smart Money - June 18, 2010
WHAT'S HAPPENING NOW: Tests could calm US markets roiled by the European debt crisis.
Investing and Lady Luck: The Odd Couple - Smart Money - June 18, 2010
Belief in luck can't help in things you can't control -- like the stock market.
Energy Hot Spots May Boost Rosetta - Smart Money - June 18, 2010
The little driller has inspired a gusher of optimism among some investors.
Will More Target-Date Fund Clarity Matter? - Smart Money - June 18, 2010
Industry experts discuss the merits and limits of the SEC's new proposed rules.
The Week in Business Tweets: BP 24/7 - Smart Money - June 18, 2010
All spill news, all the time, plus AOL founder Steve Case on the Bebo deal.
Telling Market Data You've Been Dismissing - Smart Money - June 17, 2010
A study shows an often-overlooked indicator is tied to stock performance.
After UBS Deal, Does Offshore Banking Have A Future? - Forbes - June 17, 2010
Swiss-account holders will still get stability, privacy and protection from private parties---but not from the IRS.
Dow Climbs 24.71 Points - Smart Money - June 17, 2010
A late surge helped the stock market finish slightly higher, though the gains were concentrated...
How Safe Is the 'Safety Net'? - Smart Money - June 17, 2010
Hoenig: The problems in Europe could easily show up here.
Eight Great Ideas For Your Summer Staycation - Forbes - June 17, 2010
If the money just isn't there for a big trip, it doesn't mean you can't have a great summer.
How To Pass On Digital Assets After You're Gone - Forbes - June 17, 2010
Planning for blogs, e-mail and photos now will pay off for your heirs and estate.
Proof Of Why Spouses Make Lousy Business Partners - Forbes - June 17, 2010
A true tale of unreported income, adultery, a missing flash drive and a voluntary disclosure to the IRS.
Credit Card Rental Car Insurance How-To - Forbes - June 17, 2010
Most people know about this coverage perk, but few have any idea about how to cash in. Find out here.
To Outsmart Wall Street, Emphasize Discipline Over Daring - Forbes - June 17, 2010
Investment Guide editor discovers new twists to old strategies.
Five Steps Of A Bubble - Forbes - June 17, 2010
Bubbles are deceptive and unpredictable, but by studying their history you can be prepared.
Energy Prices Keep Inflation at Bay - Smart Money - June 17, 2010
WHAT'S HAPPENING NOW: The CPI shows that headline inflation declined 0.2% in May.
Senate Proposal Pits IRS Against Small Businesses - Forbes - June 17, 2010
Democrats' attempt to soften S corporation payroll tax hit sets up a burdensome test.
For SanDisk, Apple's Tablet Flashes Cash - Smart Money - June 17, 2010
The leading maker of flash memory for gadgets has been on a tear.
3 Stock Bargains Based on Liquidation Math - Smart Money - June 17, 2010
Hough: These companies trade only modestly above the value of their assets.
DJIA Edges Up 4.69 Points - Smart Money - June 16, 2010
Stocks recovered from an early stumble to end little changed Wednesday as BP's latest moves...
Housing Starts Sputter; Builders Tense - Smart Money - June 16, 2010
Skeptics say the housing sector may get worse before it gets better.
U.S. Debt Bomb's Detonation Sped Up By Five Years - Forbes - June 16, 2010
Feds' policy of piling on debt will lead to years of sluggish growth--or worse.
How to Protect Your Cash Now - Smart Money - June 16, 2010
As Congress raises the limit on FDIC-insured deposits, tips for safe savings.
Post Tax Credit, A Pullback in Housing - Smart Money - June 16, 2010
May housing starts fall 10% compared to April, steeper than expected.
Midwest Munis Bet on Retirees -- and Lost - Smart Money - June 16, 2010
The housing bust has retirement home muni bonds on a shakier foundation.
Becton Dickinson: Poised for Stronger Growth - Smart Money - June 16, 2010
The medical-device maker has a steady flow of innovative products.
Commodities With Less Risk - Smart Money - June 16, 2010
Oil, copper and other materials did well last year. Is there more to come?
3 Firms With Generous Dividend Payouts - Smart Money - June 15, 2010
Hough: These companies return the bulk of profit -- a promising sign.
Risk List Q&A - Forbes - June 15, 2010
Audit Integrity Chief Jack Zwingli explains its financial risk model.
BP Investors Watch and Wait for an Exit - Smart Money - June 15, 2010
Stewart: The outlook for the "special situation" stock ebbs and flows.
Stocks Jump by More Than 2% - Smart Money - June 15, 2010
Stocks surged as euro-zone jitters ebbed and the technology sector benefited from an improved...
American Idol's Career Secret - Forbes - June 15, 2010
Lee DeWyze worked in finance as well as in a paint store.
Given Say on Pay, Shareholders Say No - Smart Money - June 15, 2010
Shareholders will soon have more say on CEO pay, and CEOs may not like it.
European Stocks Cheap After Declines, Managers Say - Forbes - June 15, 2010
Some big investors are increasing stakes in European stocks.
Energy Sector Helps Lift U.S. Stocks - Smart Money - June 15, 2010
Each of the major index stood up more than 1% at midday.
When Families Disagree Over Jointly Owned Property - Forbes - June 15, 2010
What to do when one owner wants out, one doesn't.
How Are Homebuilders Feeling? - Smart Money - June 15, 2010
WHAT'S HAPPENING NOW: Confidence slips as the first-time homebuyers' credit expires.
BRIC Check: Outlook for Emerging Markets - Smart Money - June 15, 2010
Developing economies are on a hot streak. Can they keep it up?
3 Stocks Projected to Double Earnings - Smart Money - June 15, 2010
Hough: Analysts foresee strong profit growth from these companies.
BP Tests Mutual Fund Managers - Smart Money - June 15, 2010
The Gulf disaster forces portfolio managers to make a tough decision.
Blue Chip Analyst Andrew Jeffrey - Forbes - June 14, 2010
This SunTrust Robinson Humphrey analyst earns the sixth spot among all analysts.
Blue Chip Analyst William Fisher - Forbes - June 14, 2010
This Raymond James analyst earns the fifth spot among all analysts.
Blue Chip Analyst Eric Hagen - Forbes - June 14, 2010
This Lazard Capital Markets analyst earns the fourth spot among all analysts.
Blue Chip Analyst James Rollyson - Forbes - June 14, 2010
This Raymond James analyst earns the third spot among all analysts.
Blue Chip Analysts - Forbes - June 14, 2010
Our annual ranking of the Wall Street's best stock-pickers and earnings estimators.
Blue Chip Analyst Edward Spehar - Forbes - June 14, 2010
This Bank of America Merrill Lynch analyst earns the 10th spot among all analysts.
Blue Chip Analyst Betsy Graseck - Forbes - June 14, 2010
This Morgan Stanley analyst earns the No. 2 spot among all analysts.
Blue Chip Analyst Paul Miller - Forbes - June 14, 2010
This FBR Capital Markets analyst earns the top spot among all analysts.
Rod Lache: No. 1 For Bearish Calls - Forbes - June 14, 2010
Deutsche Bank Securities' Rod Lache.
The Best Buy And Sell Calls - Forbes - June 14, 2010
These blue chip analysts distinguished themselves in an additional way--with extraordinary stock calls.
Paul Sankey: No. 3 For Bearish Calls - Forbes - June 14, 2010
Deutsche Bank Securities' Paul Sankey.
Patrick Wang: No. 5 For Bearish Calls - Forbes - June 14, 2010
Wedbush Morgan Securities' Patrick Wang.
Michael Dudas: No. 4 For Bullish Calls - Forbes - June 14, 2010
Jefferies & Co.'s Michael S. Dudas.
Mark Marcon: No. 3 For Bullish Calls - Forbes - June 14, 2010
Robert W Baird & Co.'s Mark Marcon.
Lu Yeung: No. 1 For Bullish Calls - Forbes - June 14, 2010
Bank of America Merrill Lynch's Lu Yeung.
John Tysseland: No. 2 For Bearish Calls - Forbes - June 14, 2010
Citigroup's John Tysseland.
Jeffrey Dietert: No. 4 For Bearish Calls - Forbes - June 14, 2010
Simmons & Co.'s Jeffrey Dietert.
Jason Mills: No. 5 For Bullish Calls - Forbes - June 14, 2010
Canaccord Genuity's Jason Mills.
Brian Abrahams: No. 2 For Bullish Calls - Forbes - June 14, 2010
Oppenheimer & Co.'s Brian Abrahams.
Moody's Downgrade Leaves Stocks Mixed - Smart Money - June 14, 2010
The major indexes gave back gains after Greek bonds were given junk status.
Shoe Stocks: Put Your Best Foot Forward - Smart Money - June 14, 2010
Hoenig: How the shoe aisle could boost your portfolio.
A Meeting With BP, and an Eye on the Euro Zone - Smart Money - June 14, 2010
WHAT'S HAPPENING NOW: Obama to ask BP to set up escrow account to compensate victims.
To Return to Stocks or Wait on the Sidelines? - Smart Money - June 14, 2010
As the recovery sputters, strategists mull whether to buy back in.
Asian Dividend Stock Plays - Forbes - June 13, 2010
Most U.S. investors regard Asia as a growth play. They're overlooking some nice dividend income, says Matthews Asia's Andrew Foster.
3 Funds With South African Exposure - Smart Money - June 13, 2010
These funds dabble in the region hosting the World Cup.
New Mexico Mini-Madoff Case Provides Lesson For Investors - Forbes - June 12, 2010
Douglas Vaughan enticed hundreds of fellow New Mexicans by promising low-risk investments paying double-digit returns. Here's what you can learn from their remorse.
Save Thousands On Insurance - Forbes - June 11, 2010
You may be paying too much or paying for the wrong coverage.
Tech Rally: Is There Any Life Left? - Smart Money - June 11, 2010
Market watchers discuss which tech stocks still have room to grow.
Stocks End Week Higher After Late Rally - Smart Money - June 11, 2010
The major indexes climbed despite a new report showing retail spending dipped in May.
How To Make Divorce Less Taxing - Forbes - June 11, 2010
When couples split, tax mistakes are surprisingly common. Here are 10 things you need to know.
How To Ease An Elderly Parent Into Assisted Living - Forbes - June 11, 2010
Senior citizens need positive introduction to overcome resistance.
How the Oil Spill Is Sabotaging Stocks - Smart Money - June 11, 2010
Luskin: Watch for a big rally if the catastrophe is contained soon.
Court Issues Ruling In Firefighter Applicant Disparate Impact Case - Site Headlines - June 11, 2010
This morning, with Justice Antonin Scalia writing a unanimous opinion, the U.S. Supreme Court ruled in a case brought by a group of African-American firefighter applicants who alleged that the city of Chicago's applicant selection process had a disparate impact on African-Americans in violation of Title VII of the Civil Rights Act of 1964.
Supreme Court Clarifies Treatment of Joint Ventures Under Antitrust Law - Site Headlines - June 11, 2010
The Supreme Court recently released its unanimous opinion in American Needle, Inc. v. National Football League, 560 U.S.___ (2010), 2010 WL 2025207 (American Needle), its latest foray in the area of competitor collaboration under the antitrust laws (and specifically Section 1 of the Sherman Act, 15 U.S.C. § 1). In American Needle, the 32 member teams of the National Football League formed National Football League Properties (NFLP) to develop, license and market their intellectual property
Supreme Court to Consider Wheather Federal Arbitration Act Preempts State Law Limitations on Arbitration Agreements - Site Headlines - June 11, 2010
On May 24, 2010, the U.S. Supreme Court granted certiorari in Mobility LLC v. Concepcion, No. 09-893, to address the question of whether the Federal Arbitration Act (FAA) preempts state law rules limiting the enforceability of arbitration agreements. In Concepcion, the Supreme Court will consider whether the FAA preempts California state court decisions that class action waivers are unconscionable in consumer arbitration agreements as a matter of public policy
"Business Interruption Claims" and the Recent Gulf of Mexico Oil Spill - Site Headlines - June 11, 2010
On April 20, 2010, an explosion on the mobile drilling rig Deepwater Horizon occurred some 130 miles southeast of New Orleans, Louisiana. As of May 23, 2010, it is estimated that a minimum of 6 million gallons of crude oil have spilled into the Gulf of Mexico as a result of this incident. However, a growing number of scientists assert that they believe the count is even higher than that troublesome figure.
Foreign Funds: Investors Are Returning - Smart Money - June 11, 2010
Bargains lifted inflows to foreign funds for the first time in weeks.
Prepare For The Return Of The Estate Tax - Forbes - June 11, 2010
The federal estate tax is coming back, while some state levies never went away. Act now to protect your family's assets.
Five Myths About Asset Allocation - Forbes - June 11, 2010
There is no perfect allocation and no absolute protection in a bear market. But it's still worth diversifying and rebalancing once a year.
Retail Stocks Back In Style - Forbes - June 11, 2010
Retail stocks got pounded during the recession and are still pretty cheap. Eden Capital's Adam Newar says it's not too late to bet on their recovery.
Aiming For A Perfect Hunting Resort - Forbes - June 11, 2010
Since his early years Stephen Myers has been hunting both game and business opportunities. At Pine Creek Sporting Club he bags them both.
Consumers Showed Caution in Rocky May - Smart Money - June 11, 2010
WHAT'S HAPPENING NOW: New data show retail spending slipped last month.
Guide to Muni Bond Shopping - Forbes - June 11, 2010
Once safe and sleepy, the muni bond market now abounds with danger--and opportunity.
Euro Bargains - Forbes - June 11, 2010
The French are famous for many things, but value investing isn't one of them. That just makes for easier pickings for Metropole Gestion.
Does the Tech Rally Have Any Life Left? - Smart Money - June 11, 2010
Market watchers discuss which tech stocks still have room to grow.
Does Raising Cigarette Taxes Make Sense? - Smart Money - June 11, 2010
Hough: The numbers hinge on who's doing the research.
This Week in Business Tweets: The BP Watch - Smart Money - June 11, 2010
Jack Welch on why Obama's "Today" show performance fell short.
Betting on an Overconfident CEO - Smart Money - June 11, 2010
Why investors should have a few risk-taking leaders in their portfolio.
Gold Will Continue to Shine - Smart Money - June 11, 2010
As investors seek shelter from deflationary and inflationary pressures, gold will climb.
How To Avoid Getting Stuck With A Worthless Gift Card - Forbes - June 10, 2010
Make sure you're aware of which retailers and restaurants may face financial trouble.
The Risk List Revisited - Forbes - June 10, 2010
Stocks of troubled companies from past list rise, but dangers remain.
Why Corporate Fraud Is On The Rise - Forbes - June 10, 2010
Lax boards, equity-linked pay lead to rise in financial wrongdoing.
In Vogue Again? Investors Return to Foreign Funds - Smart Money - June 10, 2010
Bargains lifted inflows to foreign funds for the first time in weeks.
The Average Investor Is His Own Worst Enemy - Forbes - June 10, 2010
Terry Odean's research into investor behavior shows how people sabotage themselves.
How To Pass Down Your Family Vacation Retreat - Forbes - June 10, 2010
Here's how to protect your vacation retreat from the taxman and intrafamily strains.
Immigration Helps the Markets - Smart Money - June 10, 2010
Hoenig: Open the border, boost the economy.
How To Save Money On Summer Vacations - Forbes - June 10, 2010
Bargains abound for travels off the beaten path.
10 Tips For Parents Of Special Needs Children - Forbes - June 10, 2010
Estate planning is never simple. But parents with special needs children should take extra steps.
Investigate Before You Expatriate - Forbes - June 10, 2010
Retiring abroad sounds intriguing to those seeking balmy climes and cheaper living. But there are pitfalls.
Junk Bonds: Are Worse Days Ahead? - Forbes - June 10, 2010
If you're an optimist junk bond yields are enticing again. Buy sparingly
3 Stocks That Polarize Analysts - Smart Money - June 10, 2010
Hough: Buy or sell? These shares have forecasters in sharp disagreement.
Ancestry.com Finds Green in the Family Tree - Smart Money - June 10, 2010
The web site is cashing in on the growing popularity of genealogy.
The State Estate Grab, 2010 Edition - Forbes - June 9, 2010
Like the federal estate tax, state levies are in flux. As of mid-2010, 19 states imposed taxes on estates not left to a spouse or charity.
2010 Investment Guide - Forbes - June 9, 2010
Time-tested ways to protect and increase wealth.
More States Woo Retirees With Tax Breaks - Forbes - June 9, 2010
Despite their deficits, states are still wooing retirees with tax breaks.
Five Rules For Inherited IRAs - Forbes - June 9, 2010
Families can stretch out the tax breaks of retirement accounts for decades if they know the rules.
Stocks Give Back Early Gains, End Lower - Smart Money - June 9, 2010
A decline in the energy sector weighed on the broader indexes.
In Florida, Housing Bust Looms Over Bonds - Smart Money - June 9, 2010
Some bonds thought to be safe during the boom now lie in default.
Six Surprisingly Dangerous Jobs - Forbes - June 9, 2010
These jobs may pay well but come with unique risks.
Stocks That Buffett Is Unloading - Forbes - June 9, 2010
How Warren Buffett is trimming his portfolio.
3 Questions to Ask a Financial Adviser - Smart Money - June 9, 2010
Who your adviser works for and how he's paid can make all the difference.
The Mystery Advisers - Smart Money - June 9, 2010
The Schwabs and Merrill Lynches may have greater name recognition, but many advisers still get strategic tips and tech support from lower-profile firms.
The Big Tax Increase Facing Small Business - Forbes - June 9, 2010
Hedge fund taxes get all the attention. Congress is about to raise billions in taxes on some doctors, accountants and architects.
Not Time for a Rate Change -- Yet - Smart Money - June 9, 2010
WHAT'S HAPPENING NOW: Bernanke expected to stick to his previous statements in speech.
Should You Drop Your Underperforming Fund? - Smart Money - June 9, 2010
Here are four issues to consider when deciding whether to sell.
3 Stocks With Large, Growing Dividends - Smart Money - June 9, 2010
Hough: These companies yield 5% after recently increasing their payments.
Can AIG Ante Up to Uncle Sam? - Smart Money - June 9, 2010
Investors should fare better with the insurer's debt than with its stock.
What $13 Trillion Could Buy - Smart Money - June 9, 2010
U.S. debt will soon outstrip GDP. Some other ways we could spend that money.
What The Yield Curve Is Telling Investors - Forbes - June 8, 2010
A reliable predictor indicates growth and higher prices are ahead.
Two Common Threads of European Funds - Smart Money - June 8, 2010
Stewart: In the Old World, oil and finance are hard to avoid.
Custom Budgeting For Young Adults - Forbes - June 8, 2010
Percentage budgeting is a flexible way for young adults to navigate their first financial challenges and decisions.
Profit On Your Home's Price--Even If It's Falling - Forbes - June 8, 2010
These investment vehicles can protect you--and even help you profit--when the real estate market falls.
Dow Surges Late But Stocks End Mixed - Smart Money - June 8, 2010
A late blue-chip rally lifted the benchmark index about 1.3%.
Five Equity Derivatives And How They Work - Forbes - June 8, 2010
These derivatives allow investors to transfer risk, but there are many choices and factors that investors must weigh before buying in.
Gold: The World's True Reserve Currency - Forbes - June 8, 2010
Federal Reserve interest rates, money supply debasing dollar.
Obama, Former Presidents' Fortunes Mixed In Housing Crash - Forbes - June 8, 2010
Fixes bail out president's Chicago mansion. Kennedy compound down. Truman crib yours for $365,000.
Smartphone Wars: Dialing Up the Heat - Smart Money - June 8, 2010
WHAT'S HAPPENING NOW: The iPhone 4 will likely raise Apple's market share, but watch the Droid.
LPL Financial: The Giant Behind Your Broker - Smart Money - June 8, 2010
Fast-growing LPL keeps a low profile but wields a lot of clout with advisers.
Texas Instruments Smartens Up - Smart Money - June 8, 2010
TI plans to expand its smart-chip business at twice the rate of rivals.
3 European Stocks at Extreme Discounts - Smart Money - June 8, 2010
Hough: These shares have reached a value threshold; expect gains to follow.
Funds That Do Best When Managers Buy In - Smart Money - June 8, 2010
The more a portfolio manager invests in a stock fund, the better -- for you.
Four Frivolous Tax Arguments That Won't Work - Forbes - June 7, 2010
We're already on our way to the next tax season, but if you're looking to reduce your burden, these reasons won't serve you.
Four Big Businesses Built With Small Cash - Forbes - June 7, 2010
These four entrepreneurs built multimillion-dollar companies with as little as $100. Find out who they are and how they did it.
Dow Finishes Below 'Flash Crash' Low - Smart Money - June 7, 2010
Traders extended last week's losses as the euro remained weak.
Where to Stash Your Cash Now - Smart Money - June 7, 2010
Shaken by the market's volatility, investors look for some safer options.
Commodity Price Drops Signal A Double-Dip Recession Ahead - Forbes - June 7, 2010
Oil, gold, copper declines result from weak demand, not a strong dollar.
How to Survive the Return of Volatility - Smart Money - June 7, 2010
Hoenig: Trim some positions to avoid getting squashed.
A New Face to Europe's Problems - Smart Money - June 7, 2010
WHAT'S HAPPENING NOW: Is Hungary the new Greece? Default prospects rattle markets.
Is Market Volatility a Call to Trade Now? - Smart Money - June 7, 2010
Market watchers discuss the merits of a near-term strategy.
3 Funds With a Small Minimum Investment - Smart Money - June 6, 2010
These funds are accessible to investors not willing to wager a lot.
Getting To Know The Money Market - Forbes - June 4, 2010
If you need liquidity and safety on a sum of money, don't forgo potential interest by keeping the funds as cash.
Strategies For Withdrawing Retirement Income - Forbes - June 4, 2010
You've accumulated the wealth you need to retire, but how will you distribute it? We'll lay out some options.
What Does Dow's Latest Trip Below 10000 Mean? - Smart Money - June 4, 2010
Can a number crossed this often still be a meaningful benchmark?
Dow Falls Below 10K After Jobs Letdown - Smart Money - June 4, 2010
Disappointing May payroll growth sent the major indexes reeling.
Tax Amnesty Works Without Big Brother - Forbes - June 4, 2010
Pennsylvania's heavy-handed ad misses the point: Taxpayers want a safe way to get back into compliance.
Green Investors Pull Out Of BP - Forbes - June 4, 2010
Some socially responsible funds and money managers divest their holdings as oil spill's environmental toll mounts.
Annuities: Good, Bad Or Ugly? - Forbes - June 4, 2010
Bogleheads object to high expense, surrender fees and sales tactics.
Unemployment Rate Improved in May - Smart Money - June 4, 2010
WHAT'S HAPPENING NOW: Rate over 9% for thirteenth consecutive month.
As Market Grew Volatile, Advisors Disappeared - Smart Money - June 4, 2010
A new report shows a recent decline in the number of U.S. retail advisors.
10 Great European Stocks - Smart Money - June 4, 2010
Despite the dark clouds over Europe, some global outfits based there should thrive.
Risky Business: Investors and Hindsight - Smart Money - June 4, 2010
Misremembering how you evaluate risk could drag down your portfolio.
Did a Wild May Herald a Double Dip? - Smart Money - June 4, 2010
Experts discuss whether volatility could mean a return to recession.
The Week in Business Tweets: Linked In - Smart Money - June 4, 2010
Goldman's connection to the BP blowout and Buffett's support of Moody's.
A Lesson in British Intestacy Laws - Boyzone Star Stephen Gately Dies Without a Will - About.com - June 4, 2010
Living And Death Benefit Riders: How Do They Work? - Forbes - June 3, 2010
A guide to your variable annuity contract.
Your Banker's Six Dirty Secrets - Forbes - June 3, 2010
What your banker isn't telling you.
Jobs, Sales Data Leave Stocks Flat - Smart Money - June 3, 2010
Equities pulled even after a surprising jobs report and a letdown in factory orders.
Investing's Great Minds Think Alike - Forbes - June 3, 2010
Even those who made their fortunes picking stocks recommend index funds for normal investors.
Four Reasons Why Airlines Are Always Struggling - Forbes - June 3, 2010
Why is the airline industry synonymous with ongoing losses and insolvency? We list four reasons.
How Regulation Kills Reputation - Smart Money - June 3, 2010
Hoenig: Having more businesses run through government isn't going to help.
Shaking Up Cell Service Plans - Smart Money - June 3, 2010
WHAT'S HAPPENING NOW: Investors mull AT&T's decision to stop selling unlimited data plans.
3 Stocks With Raised Earnings Estimates - Smart Money - June 3, 2010
Hough: Wall Street boosted its outlook for these shares, which bodes well for returns.
Set Aside Fears of Inflation -- Just for Now - Smart Money - June 3, 2010
Bridgewater Associates' CIO doubts the printing of money will cause inflation.
Florida Estate and Trust Law Update - Lawmakers Take a Different Approach to Fixing Glitch Created by Federal Estate Tax Repeal - About.com - June 3, 2010
The Myth About Market Bubbles - Forbes - June 2, 2010
Bubbles have made and ruined fortunes. Though they can be difficult to predict, understanding how they work gives you a visible advantage.
When ETFs Cut Costs, Should You Bite? - Smart Money - June 2, 2010
As ETFs grow, experts say price cuts don't always signal a good deal.
Energy Boost: Sector Drives Market Rebound - Smart Money - June 2, 2010
Surprising housing data and a rally in energy helped lift the broader market.
Amid Takeover Talk, BP Investors Eye Dividend - Smart Money - June 2, 2010
Investors have watched shares drop. Could the dividend follow?
After Crash: New Rules for ETF Investors - Smart Money - June 2, 2010
The May 6 Flash Crash revealed serious flaws in exchange-traded funds.
Financial Rules For Later-In-Life Stepparents - Forbes - June 2, 2010
A stepson asks for a free vacation. Does he deserve it?
Is Now the Time to Invest in Japan? - Smart Money - June 2, 2010
WHAT'S HAPPENING NOW: In wake of the prime minister's resignation, looking at yen, equities.
3 Cheap Tech Stocks for Defensive Investors - Smart Money - June 2, 2010
Hough: These shares are priced to outperform in any economy.
Tuning In to Harman's Growth Story - Smart Money - June 2, 2010
Harman will benefit as the economy and car sales revive.
New Fees for Mutual Fund Performance - Smart Money - June 2, 2010
Some mutual funds will make you pay more if they outperform the market.
The Return of Commercial Real Estate - Smart Money - June 1, 2010
Stewart: Crowded malls signal upside for REITs and related ETFs.
Energy Sector Leaves Dow in the Red - Smart Money - June 1, 2010
Two surprising economic reports could not keep stocks above the line.
Seven Ways To Save On Summer Getaways - Forbes - June 1, 2010
How to escape the office without breaking the bank.
LOST: Behind The Numbers Of A TV Phenomenon - Forbes - June 1, 2010
A financial breakdown of a breakout hit.
Why The Stock Market Correction Will Soon End - Forbes - June 1, 2010
Big European economies, U.S. leadership will end market downturn.
Eight Signs Of A Doomed Stock - Forbes - June 1, 2010
How to tell when to sell shares quickly.
Will Volatility Persist in June? - Smart Money - June 1, 2010
WHAT'S HAPPENING NOW: Investors worry about Europe, China and financial reform at home.
Hot Bonds: Neither Long- Nor Short-Term - Smart Money - June 1, 2010
With returns around 9%, intermediate-term bonds remain popular.
6 Questions to Ask a Prospective Estate Planning Attorney - About.com - May 31, 2010
5 Funds With a Low Turnover Rate - Smart Money - May 30, 2010
With market volatility rising, these funds are staying the course.
Ten Tips For Amending Your Tax Return - Forbes - May 28, 2010
You forgot to report some income on your 1040 or just got an amended K-1 in the mail. What should you do?
Stocks Swoon, Widening May Losses - Smart Money - May 28, 2010
Traders moved away from equities heading into the holiday weekend.
Thanks for Nothing, China. Really. - Smart Money - May 28, 2010
Luskin: China's nod to European bonds defuses a crisis, for now.
Six New Hurdles For Home Financing - Forbes - May 28, 2010
There are many challenges to financing a home. Find out which ones are especially problematic right now.
Five Top-Earning Videogame Characters - Forbes - May 28, 2010
These top-earning videogame characters have brand power to rival pro athletes and movie stars. Find out which colorful character is leading the pack.
How To Avoid Living At Home After College - Forbes - May 28, 2010
Even if you're low on cash, you don't necessarily have to move back in with your folks.
What To Do About Health Insurance If You Don't Have A Job - Forbes - May 28, 2010
Obama's health care reforms are making it easier for young adults to secure coverage.
Temporary Assignment - Forbes - May 28, 2010
What recent college grads should know about temp agencies.
How (And Why) To Open A 401(k) - Forbes - May 28, 2010
Congratulations graduates, and welcome to the work world. It's time to think about retirement.
Back To Work - Forbes - May 28, 2010
Ways to boost your resume while you're hunting for a job.
Five Options For Grads With Student Debt But No Job - Forbes - May 28, 2010
Tips for repaying student loans when you're unemployed.
Nine Rules Of Thumb For New Credit Card Users - Forbes - May 28, 2010
Financial independence can be both a blessing and a burden.
The 2010 Financial Guide For College Grads - Forbes - May 28, 2010
Got a job lined up or not? Haven't found one yet? We've got the personal finance knowledge you need, whatever your employment status.
Rethinking Offshore Drilling - Smart Money - May 28, 2010
WHAT'S HAPPENING NOW: With drilling halted, what happens to BP and Royal Dutch Shell?
Profiting When Growth Meets Value - Smart Money - May 28, 2010
Arthur Moretti sees opportunity in the convergence between growth and value.
Where Have All the IPOs Gone? - Smart Money - May 28, 2010
Market volatility has created a hostile environment for going public.
The Week in Business Tweets: Pain &Profit - Smart Money - May 28, 2010
Is Sumner Redstone squeezing the life from CBS and Viacom?
Investors Need To Keep Focus On Safety Of Bank Deposits - Forbes - May 27, 2010
Calls for exodus from big ''bad'' banks appears misguided.
Stocks Rebound, Dow Returns Above 10K - Smart Money - May 27, 2010
Traders shrug off disappointing economic data after China soothes concerns over Europe.
An Unlikely Star in an Ugly Market - Smart Money - May 27, 2010
Hoenig: A once-shunned satellite company is taking off.
Is the Stock Market Correction Over? - Smart Money - May 27, 2010
A dozen market watchers weigh in on where stocks go from here.
S&P 500 ETFs: Market Weight Vs. Equal Weight - Forbes - May 27, 2010
Indexes' weightings give them very different properties.
Before the Correction, a Flight From Funds - Smart Money - May 27, 2010
Investors began pulling out of equity funds weeks before the big drop.
What Is A Cash Flow Statement? - Forbes - May 27, 2010
How cash flow helps in analyzing company finances.
Bank Stocks Under New Pressures - Smart Money - May 27, 2010
WHAT'S HAPPENING NOW: Lehman estate sues J.P.Morgan as Citi comes under scrutiny.
Investing in the Loan Business - Smart Money - May 27, 2010
Business-development firms are making loans when many banks won't.
The Case for European Bank Stocks - Smart Money - May 27, 2010
Europe's biggest banks have been punished more than they deserve.
States Eye Service Sales Taxes To Battle Shortfalls - Forbes - May 26, 2010
As services become a target, tax-free massages may get rubbed out.
Understanding Lender-Required Flood Insurance - Forbes - May 26, 2010
Having to buy flood insurance shouldn't be a surprise. Find out what you need to know when purchasing or refinancing a house.
Impact Investing: The Ethical Choice - Forbes - May 26, 2010
This new wave in ethical investing is taking a new approach. Find out how it differs from its predecessors.
Five Penalty-Free IRA Withdrawals - Forbes - May 26, 2010
Most Americans think that an IRA is locked up until they reach 59.5, and withdrawals before that date trigger taxes and a 10% penalty tax. This is not always true.
A Summer Of Slumping Stocks - Forbes - May 26, 2010
The market gets ugly by September setting up sweet buys in the fall.
Dow Falls; First Close Below 10K Since Feb. - Smart Money - May 26, 2010
New home sales data and a brighter global forecast could not sustain early gains.
IRS 'Wealth Squads' On The Way - Forbes - May 26, 2010
Newly created exam teams will scrub wealthy taxpayers' hedge funds, trusts and foreign accounts.
Stock Picks: Toll Brothers Up, TiVo Down - Smart Money - May 26, 2010
Home-buying trends lift Toll Brothers; TiVo falls on another quarterly loss.
Korean Crisis Trips Up the Recovery - Smart Money - May 26, 2010
WHAT'S HAPPENING NOW: As tensions mount, markets could go into another tailspin.
Q&A: Procter &Gamble CEO Bob McDonald - Smart Money - May 26, 2010
The consumer goods giant wants a billion new customers in five years.
3 Stocks That Gained While Others Fell - Smart Money - May 26, 2010
Hough: U.S. shares have broadly tumbled recently, but these have done well.
EMC: Renewed Growth and Stored Value - Smart Money - May 26, 2010
Data-storage giant EMC is ready to cash in on the next digital explosion.
Four Career Networking Tips That Work - Forbes - May 25, 2010
Find out the who, the how and the why of using networking to move up in your career.
Getting Your Name Off A Cosigned Loan - Forbes - May 25, 2010
If your friend or relative has proved irresponsible, getting out of the cosigned loan can improve your financial security and options for borrowing.
Five Reasons Why You Still Need A Real Estate Agent - Forbes - May 25, 2010
Doing the work yourself can save money, but it could end up being more costly than a realtor's commission in the long run.
Dow Pares Losses, Finishes Above 10000 - Smart Money - May 25, 2010
The index recovered after standing down as many as 292 points.
SmartMoney Reporters Finalists for Loeb Award - Smart Money - May 25, 2010
The magazine has two finalists in the Personal Finance category.
A Value Investor's Cold Calculus - Smart Money - May 25, 2010
Talking With Donald Yacktman, portfolio manager of the Yacktman fund.
Technology Giants Play Catch-Up - Smart Money - May 25, 2010
WHAT'S HAPPENING NOW: Microsoft chases videogames, while IBM moves into software.
Jumping on the Alternative Bandwagon - Smart Money - May 24, 2010
Investors are pouring billions into alternative funds. Do they know what they're doing?
What Makes A Company Great? - Forbes - May 24, 2010
When it comes to corporate success, delivering satisfaction is key on all fronts.
Financials Weigh on Dow; Euro Falls - Smart Money - May 24, 2010
A late selloff left the benchmark index at its lowest close since Feb. 10.
Outliving Your Retirement Savings - Forbes - May 24, 2010
Find out how this worst-case scenario can happen, and what you can do if it happens to you.
Why It's So Hard to Sell Losing Investments - Smart Money - May 24, 2010
Hoenig: Taking a stock loss can be an exceptionally painful experience.
Wealthy Clients Should Beware Of Private Banks - Forbes - May 24, 2010
Conflicts of interest, murky disclosure render wealth management suspect.
The Markets Vs. Bernanke - Forbes - May 24, 2010
Fed chief's rosy economic view conflicts with financial reality.
A Mixed Bag for the Housing Market - Smart Money - May 24, 2010
Mortgage rates drop, but new foreclosures are expected, too.
As Stocks Plunge, Economy Inches Ahead - Smart Money - May 24, 2010
Even as traders mourn heavy losses, economists cite progress.
Should You Pay for Fund Manager Experience? - Smart Money - May 23, 2010
Wherry: The wisdom of managers who have seen tricky markets before.
Dealing With Your Condo Board - Forbes - May 21, 2010
Condo living is a trade-off: the comfort of home ownership for the watchful eye of a condo board. But what happens when a lease dispute arises?
Best States For Teachers - Forbes - May 21, 2010
Teaching salaries and benefits vary from state to state. Find out which states are the best for an education career.
The Evolution Of Goldman Sachs - Forbes - May 21, 2010
The fraud allegations against them have tarnished the reputation of the firm. But how exactly did they get to this point?
Lessons Learned: Comparing The Japanese And U.S. Bubbles - Forbes - May 21, 2010
Find out what the Japanese and U.S. bubbles can tell us about recovering from financial chaos.
Economic Stimulus: More Cash Rewards To Solve Crime - Forbes - May 21, 2010
Bounties offered for all sorts of wrongdoing. Professor calls it ''free-market model'' for solving crime.
After Market Slide, What's Your Next Move? - Smart Money - May 21, 2010
Expert advice amid the market storm: Don't panic.
Last-Minute Deal May Mute Financial Reform - Smart Money - May 21, 2010
Senator Brown assured some firms would be exempt from the Volcker rule.
Stocks, ETFs Enjoy Modest Rebound - Smart Money - May 21, 2010
After a dismal week, major indexes end with a strong showing.
Stocks End Rocky Week on an Upswing - Smart Money - May 21, 2010
Indexes post significant gains. Investors keep an eye on Europe, financial regulation.
Will Your Neighbors Turn Over Their House Keys? - Forbes - May 21, 2010
Housing pain is up, but Americans still strongly reject ''strategic default''option.
What Was Scott Brown Thinking? - Smart Money - May 21, 2010
Luskin: His vote allows the financial reform bill to move through Congress.
Money-Market Funds: Will Reform Matter? - Smart Money - May 21, 2010
A little-noticed twist in the reform package could make funds riskier.
For Volatile Times, a Money-Losing Strategy - Smart Money - May 21, 2010
Hough: A favorite tactic of advisors makes sense, even if it loses money.
Finding Opportunity After a Correction - Smart Money - May 21, 2010
Market watchers discuss several areas that could come back strong.
Why Spouses Make Lousy Business Partners - Forbes - May 21, 2010
If either the business or the marriage sours, you can end up in dire trouble with the IRS.
Risk vs. Reward: How Bonds Behave - Smart Money - May 21, 2010
A bond primer: their nuts and bolts; their risks and rewards.
Digging Deeper: The Mutual Fund Prospectus - Forbes - May 21, 2010
The legal jargon of this document can be daunting. Find out how to get to the important stuff.
How To Revamp Your Portfolio - Forbes - May 21, 2010
Case study: A 50-year-old couple sets a more conservative stock allocation and then starts restructuring.
When Price Goes Up, Yield Goes Down - Smart Money - May 21, 2010
You've probably heard the mantra 'When price goes up, yield goes down, and vice versa.' Here's what it means.
The Road Runners - Smart Money - May 21, 2010
Small-cap stocks may be more volatile, but they can potentially grow more quickly than bigger companies.
Senate Reverses Course on Finance Bill - Smart Money - May 21, 2010
WHAT'S HAPPENING NOW: Bank shareholders may need to brace for lower stock prices.
Should I Trust the Stock Market? - Smart Money - May 21, 2010
What happens to your expectations when the Dow moves.
The Week in Business Tweets: Fear Factor - Smart Money - May 21, 2010
Europe's woes and the flash crash consume the Twitterati.
MetroPCS Makes the Right Calls - Smart Money - May 21, 2010
Industry trends send strong signals about the prepaid-wireless giant.
Ranking the Full-Service Brokers - Smart Money - May 20, 2010
Brokerage firm turmoil has shaken up the ranks of full-service brokers.
Too Many Bonds To Choose From? - Forbes - May 20, 2010
Find out which bonds you should be investing in and when you should be buying them.
Choosing An Advisor: Wall Street Vs. Main Street - Forbes - May 20, 2010
A high-profile brand name alone won't meet your personal investing needs. We show you what else to look for.
Thailand Burns; Traders See Past Smoke - Smart Money - May 20, 2010
Violence and civil unrest don't derail stocks or regional growth.
Big Drop Crushes ETFs and Indexes - Smart Money - May 20, 2010
Another stock plunge hits most exchange-traded funds.
SmartMoney 2010 Broker Survey - Smart Money - May 20, 2010
As discount brokers battle over prices, who's tops in research and customer service?
Your Million-Dollar Gift To Wall Street - Forbes - May 20, 2010
Ignore this article if you enjoy giving your money to millionaires.
The Problem With Absolute Return Funds - Forbes - May 20, 2010
Mutual fund outfits are selling the glamour and mystique of hedge fund strategies. You'd be better off with a plain old balanced fund.
Rothify Your 401(k) - Forbes - May 20, 2010
Got an ex-employer retirement account sitting around? You can convert it--and maybe your current 401(k), too--into a Roth IRA.
States Become Fiscal Hawks - Forbes - May 20, 2010
With state and local finances at the breaking point, citizens are pushing for a profound political realignment. So profound that it may one day bring fiscal sanity even to Washington.
3 Stocks for Weathering Currency Swings - Smart Money - May 20, 2010
Hough: The euro's plunge highlights the benefits of globally diversified firms.
How to Hedge With a Bear Market Fund - Smart Money - May 20, 2010
ETFs designed to profit from downturns are attracting gobs of cash.
Seagate and Western Digital Drive to Succeed - Smart Money - May 20, 2010
Business is booming for these disk-drive makers.
13 Tips to Make an IRA last longer - Everyday Estate Planning - May 19, 2010
Forbes.com recently published a really helpful article that summarizes the ways that those who inherit an IRA, or who are thinking about leaving one to their heirs, can make the best strategic use of that money. Here's the top three in my opinion: 1) If you inherit an IRA, take out only the required minimum distribution, which is calculated based on your life expectancy. (If you're a surviving spouse, you don't have to start withdrawals until you're 701/2, but everyone else has to start taking money out the year after the owner has died, in most cases). 2) If you have an IRA, DO NOT name your 'estate' as the beneficiary. This will trigger the five-year rule, which means your heirs will have to take out all of the money within 5 years, and pay income tax on those withdrawals (if the account is an IRA, Roth IRA's are different). 3) Beneficiaries of inherited ROTH IRA's still have to take required minimum distributions, just like those from regular IRA's, starting a year after the death of the owner, but they don't have to pay income tax on those withdrawals. Because the owner of a ROTH IRA does not have to take any money out of those accounts during their lifetime, this can be a way of leaving more money to your heirs than a traditional IRA.
How To Save On Taxes And Brokerage Costs - Forbes - May 19, 2010
Never miss a chance to cut taxes and trading expenses. Here's a case study.
Invest In What You Know - Forbes - May 19, 2010
Have you ever known certain products would be successful months before they became a hit? Find out how to profit from your intuition.
Are Equity-Indexed Annuities Right For You? - Forbes - May 19, 2010
Equity-indexed annuities can be confusing to understand, but for conservative investors, they can be valuable savings plans.
Under-The-Radar Hollywood Jobs - Forbes - May 19, 2010
If you want to rub elbows with the stars without becoming one, check out these behind-the-scenes entertainment jobs.
Stocks and ETFs Take Another Hit - Smart Money - May 19, 2010
Losses are muted from session lows, but indexes end down again.
Is It Right To Tip For Faster Service? - Forbes - May 19, 2010
Friends disagree over using gratuities to jump the queue.
SEC to Exchanges: The Trade Stops Here - Smart Money - May 19, 2010
WHAT'S HAPPENING NOW: Regulators' plan to pause trading wins support from major exchanges.
U.S. Solvency Depends On Low Interest Rates - Forbes - May 19, 2010
Spike in rates would push U.S. debt costs to unaffordable levels.
3 Stocks With P/E Ratios in Single Digits - Smart Money - May 19, 2010
Hough: These companies trade at a deep discount to the broad U.S. market.
How to Find Cheap Stocks to Buy Now - Smart Money - May 19, 2010
A strategy called GARP spots stock deals in a market with few bargains.
A Bond Fund That Beats the Pack - Smart Money - May 19, 2010
How one bond-fund manager turns incremental gains into long-term profits.
Stocks, ETFs Sag at Session End - Smart Money - May 18, 2010
German regulator sparks selloff in financials, while the euro drops.
Was There Really a Trading Glitch? - Smart Money - May 18, 2010
The May 6 market plunge was extreme, but it didn't seem to do lasting harm.
European Moves Sink Stocks Again - Smart Money - May 18, 2010
Indexes slide as Germany issues short-selling ban. Tech and financials lag.
Does More Transparency in 401(k) Fees Matter? - Smart Money - May 18, 2010
Putnam will go public with its fees. How investors might benefit.
How To Parent Your Aging Parents - Forbes - May 18, 2010
For sandwich generation, planning ahead is key to good elder care.
Have Consumers Moved on From Discounters? - Smart Money - May 18, 2010
Results today from Wal-Mart, TJX will reflect consumer attitudes.
3 Small Tech Firms With Soaring Sales - Smart Money - May 18, 2010
Hough: Companies seeing a rush of orders after two years of lean demand.
A Sweeter Future for Kraft Foods - Smart Money - May 18, 2010
Fortified by its Cadbury acquisition, Kraft is set to start growing again.
Wild Stock Swing Ends Upward - Smart Money - May 17, 2010
Big plunge salvaged at end of trading session. Euro dips and rises.
Reversal of Misfortune for Stocks - Smart Money - May 17, 2010
Selloff swings back up as indexes end nearly flat. Euro bounces off four-year low.
Goldman Sachs: By The Numbers - Forbes - May 17, 2010
While Goldman's guilt or innocence is not yet clear, these key numbers help tell part of the story.
Down The Rabbit Hole: Deciphering CDOs - Forbes - May 17, 2010
Warren Buffett claims that understanding these instruments would mean reading 750,000 pages of text. Read on to learn the basics.
Seven Steps To Start Investing Safely - Forbes - May 17, 2010
Do you want to start investing, but don't want to take on too much risk? Find out how to start investing safely.
Where The Low Credit Card Rates Are Hiding - Forbes - May 17, 2010
It's still possible to find a rate of 10% or less--if you know where to look.
Market Is Damaged - Forbes - May 17, 2010
Lower prices is not always a good reason to buy stocks.
Energy Funds Lose Their Luster - Smart Money - May 17, 2010
Controversy has hurt the returns of this once-hot fund category.
A Flicker of Hope in the Housing Sector - Smart Money - May 17, 2010
WHAT'S HAPPENING NOW: Lowe's beat estimates. Next up: Home Depot and housing stats.
Fundamentals Can't Promise a Steady Rally - Smart Money - May 17, 2010
Even as the U.S. economy improves, Europe sways the market.
Congress Reportedly Considering a Roth-Style Estate Tax - Everyday Estate Planning - May 16, 2010
Here's an odd news flash: On The Money, a blog of the congressional newspaper The Hill, this week said lawmakers are considering whether to let taxpayers have the option of paying estate taxes in advance so they don't owe that money when they die. The idea is to let people pay a lower tax rate (reportedly 35%) if they prepay the estate tax they think will be due upon their deaths. This would get more tax money into the government sooner, and in return it would be a terrific deal for those wealthy enough to have to worry about the tax--which is due to return to 55% next year.
How to Make Sure Your Bonds Are Safe - Smart Money - May 14, 2010
How to make sure your municipal bond investment is safe.
Municipal Bonds: Derailed - Smart Money - May 14, 2010
The scale is still small, but more muni bonds are running into trouble.
Identity Theft: How To Avoid It - Forbes - May 14, 2010
Don't be a victim of this disturbing crime. Get insight into how perpetrators commit this form of fraud.
Seven Expenses You Can Ditch In Retirement - Forbes - May 14, 2010
You get to save on some significant expenses when you retire, leaving more money to do the things you want.
The Cheapest Canadian Cities To Buy A House - Forbes - May 14, 2010
Canada's housing market didn't suffer like its struggling neighbors to the south, but there are still great deals to be had.
Selloff Sends ETFs and Stocks Reeling - Smart Money - May 14, 2010
Late-session drop on European bourse hits U.S. indexes hard.
Even at These Prices, Keep Hold of Your Gold - Smart Money - May 14, 2010
Luskin: The price of gold has been soaring, but don't sell just yet.
Stocks End Week With Another Plunge - Smart Money - May 14, 2010
European slides push U.S. indexes. Earnings letdowns from some retailers offset sales gains.
Apple May Soon Be the Largest U.S. Company - Smart Money - May 14, 2010
Hough: What the chic tech firm's comeback says about consumers.
The Unique Advantages Of VA Mortgages - Forbes - May 14, 2010
Find out how being a veteran can save you money on your mortgage.
The Week in Business Tweets: Dumb Luck - Smart Money - May 14, 2010
Gloomy Roubini, the key to recovery and Morgan Stanley vs. Goldman Sachs.
Fundamental Data: Dividend/Yields - Smart Money - May 14, 2010
A dividend is a payment many companies make to shareholders out of their excess earnings.
What Europe's Bailout Means for Your Portfolio - Smart Money - May 14, 2010
Stocks with exposure to the debt- battered market could still be in danger.
Credit Rating Agencies Get a Makeover - Smart Money - May 14, 2010
WHAT'S HAPPENING NOW: A new provision would direct the SEC to create a credit-rating board.
It's Time to Check Out of Hotel Stocks - Smart Money - May 14, 2010
Shares of chains like Starwood reflect a bit too much optimism.
Moving to Avoid Estate Taxes Revisited - New Hampshire Lawmakers Push for a State Estate Tax - About.com - May 14, 2010
Leveraged ETFs: The Chain Saw in a Tree? - Forbes - May 13, 2010
Downsides of using borrowed money outweigh upside for most investors.
Are You Ready To Trade Futures? - Forbes - May 13, 2010
If you want to trade futures in the hopes that you'll become rich, you'll have to answer some questions first.
The Six Phases Of A Foreclosure - Forbes - May 13, 2010
For many, foreclosure is still a real possibility. Make sure you're prepared and know the steps.
Six Hidden Government Revenue Streams - Forbes - May 13, 2010
You may be well aware of the tax dollars the government withholds from your paycheck, but this isn't the only way your income is being tapped.
What A Rising Yuan Means For You - Forbes - May 12, 2010
Chinese monetary policy could have huge effects on North American business and employment.
Putting The Dow In Perspective - Forbes - May 12, 2010
This index means nothing if you don't have the proper perspective.
Five Latest Financial Scandals - Forbes - May 12, 2010
These businesses may take money from taxpayers like you.
Create Your Own Social Security Fund - Forbes - May 12, 2010
The government's Social Security program may not last forever--be prepared by setting up your own.
Economics Of Elder Care - Forbes - May 11, 2010
Expert talks about the economic and emotional benefits of caring for parents at home.
How To Tap Banks For Real Estate Loans - Forbes - May 11, 2010
Buying rental property with personal, cash-collateralized loans is a smart move.
The SEC Is Watching: New Reporting Standards - Forbes - May 11, 2010
The SEC recently proposed new rules for large traders. Does this tracking protect investors and the market, or is the SEC getting too involved?
Wall Street History: Al Capone Vs. The IRS - Forbes - May 11, 2010
This week marks the end for one of the most notorious American gangsters, the birthday of Warren Buffett's mentor and much more.
What The National Debt Means To You - Forbes - May 11, 2010
The U.S. deficit seems to grow every year. But how does it actually affect you?
Companies Cashing In On Allergies - Forbes - May 11, 2010
Allergy season isn't uncomfortable for everyone. Find out who profits from your sniffling.
Estate Tax Repeal Update - Would You Consider Prepaying Your Estate Taxes? - About.com - May 11, 2010
Top Careers Launched Via YouTube - Forbes - May 10, 2010
How social media helped these celebrities thrive.
Cut Commissions With 'For Sale By Owner' Sales - Forbes - May 8, 2010
How to cut commissions and not lose all of an agent's services.
Five Mother's Day Gifts We Spend Billions On - Forbes - May 7, 2010
Meals, jewelry and flowers rake in the most money on Mother's Day.
Water Cooler Finance: Buffett's Armed, Greece Falls - Forbes - May 7, 2010
This week the Buffett-bank saga, Greek woes continue.
The Key To Tax-Efficient Investing: Asset Location - Forbes - May 7, 2010
You've got 401(k)s, IRAs and taxable accounts. Here are which asset should go in which account.
Schapiro Holed Up In Office As SEC Investigates 'Unusual Trading' During Market Chaos - Forbes - May 7, 2010
Price fluctuations in Apple, P&G said to be under investigation.
Estate Planning and Safe Deposit Boxes - Who Has Access to Yours? - About.com - May 7, 2010
Schwab Aims For Financial Supermarket Status - Forbes - May 6, 2010
Walter Bettinger is on a mission to turn discount brokerage Charles Schwab into your favorite financial supermarket.
How To Retain Your Sanity In A Volatile Market - Forbes - May 6, 2010
Are you prepared for the next terrifying moment? Turn off the TV, take the dog for a walk--and settle on a stock allocation you can stick with.
A Solid But Pricey Real Estate Play - Forbes - May 6, 2010
Last year's bargains are gone, but an improving market could still boost stocks.
Investing in Un-Sexy Tech Stocks - Forbes - May 6, 2010
Tech fund veteran Paul Wick expects to cash in on a boom in business computer spending.
Corzine: Goldman Targeted Because Of Success - Forbes - May 6, 2010
Democratic stalwart tells Wall Street crowd to accept financial reform.
Investors Jolted By Americas Energy - Forbes - May 5, 2010
Shares have fallen 63% since Forbes highlighted problems with Knoxville company.
Will New Rules Lead To Better Or Less 401(k) Advice? - Forbes - May 5, 2010
Industry claims Obama administration's anti-conflict rules could deprive retirement savers of needed help.
Dividing Up Mom's Estate - Forbes - May 4, 2010
When it comes to inheritances, family members don't always see eye to eye.
How To Stretch Out An IRA - Forbes - May 4, 2010
Surprise: This tax-savvy strategy can be used whether or not you convert a traditional IRA to a Roth IRA.
Tech Tools For Advisors - Forbes - May 4, 2010
Inverstors want transparency and they're getting it.
Wall Street's Biggest Bankruptcies - Forbes - May 4, 2010
How shareholders lose when auditing firms fall short.
Building A Portfolio To Weather Inflation - Forbes - May 4, 2010
A diverse asset mix is an investor's best defense.
Tax Havens' Days Are Numbered - Forbes - May 3, 2010
The era of banking secrecy may be coming to an end.
Pass Your CFA Exams On The First Try - Forbes - May 3, 2010
Become one of the elite who pass these exams by using these simple study methods.
Understanding The Case-Shiller Housing Index - Forbes - May 3, 2010
This index is a widely used and respected barometer of the U.S. housing market and the broader economy.
How Much Is The Government Making Off You? - Forbes - May 3, 2010
More than 65% of income-tax-paying Americans got a tax refund in 2009. It may have been good for taxpayers, but it was even better for the government.
Why You Don't Need A Real Estate Agent - Forbes - May 3, 2010
While there are times when a real estate agent earns the commission, there are other times when you can do it yourself.
The Easy Way To An Organized Budget - Forbes - May 3, 2010
Categorizing your savings can help you save more money, and save it more effectively.
Six Tips For Renting An Apartment - Forbes - May 3, 2010
Find out what you can do to find a fabulous apartment to fit your budget.
Investing In Brazil: What You Need To Know - Forbes - April 30, 2010
How to invest in this emerging market.
Four Best Ways To Invest In Bonds - Forbes - April 30, 2010
These strategies will help you build your portfolio.
Opening A Bank Account For Your Child: What You Need To Know - Forbes - April 30, 2010
The best ways to teach your kids about financial planning.
Billionaires By Age: Who Got Rich How Young? - Forbes - April 30, 2010
Precocious Steve Jobs, plodding Steve Wynn illustrate wealth-building trends.
America's Best Managed Private Colleges - Forbes - April 30, 2010
These schools boast strong balance sheets.
Can IRS Be Forced To Check Out Informant's Tip? - Forbes - April 30, 2010
Tax Court set to rule on requests involving squabbling heirs of famed financier Clarence Dillon.
Big Bear Mining Boss' Claims Contradicted By SEC Filing - Forbes - April 29, 2010
Bankrupt CEO got millions in shares; others paid to tout the stock.
10 Things To Know About Taxes On Damages - Forbes - April 29, 2010
You've been done wrong. You win a settlement. Now the IRS might want a cut of your damages.
Write Down Those Passwords, Appoint a Digital Executor - Everyday Estate Planning - April 28, 2010
When someone dies, it can be really difficult, if not impossible, to get into their electronic accounts: bank accounts, email accounts, social networking accounts, you name it. One of the last things that my father remembered to scribble down on a notepad was the password to the computer he was leaving my kids. I'd remembered to get his social security number, safe deposit box key, life insurance certificates, and bank records....but I hadn't thought of his password! Here's a few good tips for those of you with precious digital archives, The Wills, Trusts and Estates Prof. Blog: Make a list of all of your online accounts and passwords. Decide which ones should be deleted and which ones will pass to your heirs. Nominate an executor for your digital accounts. There are companies that specialize in the handling and passing on of this information. Include your digital assets and the appointment of your digital executor in your will.
Ten Ways To Outsmart Your Credit Card Company - Forbes - April 28, 2010
Fed up with rate hikes and gotcha fees? Here's how to fight back.
Six Ways To Leave Less For Uncle Sam - Forbes - April 28, 2010
Both the fabulously wealthy and the millionaire next door need to plan for the estate tax boomerang.
Tomorrow's Real Estate Trouble Spots - Forbes - April 27, 2010
In these cities, the housing crisis is expected to worsen.
Inflation's Coming V-Shaped Recovery - Forbes - April 27, 2010
Fed plan to inflate away debt would clobber consumers.
CEOs' Looks Affect Their Compensation - Forbes - April 27, 2010
Duke study finds execs whose faces look ''competent'' get paid more. Baby-faced CEOs are penalized.
Caution Still Warranted - Forbes - April 27, 2010
Despite the continued move, I still believe cash is the place to be.
Goldman Sachs Suffers The Perils Of PR Spin - Forbes - April 26, 2010
A bid to twist the truth comes back to haunt the Wall Street giant.
The Do-It-Yourself Roth Conversion Calculator - Forbes - April 26, 2010
Should you convert your traditional IRA to a Roth? Often, the answer requires complicated calculations. Here's an easy way to do them.
Senate Budget Panel Approves Plan with 2009 Estate Tax Numbers - Everyday Estate Planning - April 24, 2010
Hmm. Maybe next year's estate tax exclusion won't go down to a million dollars per person. Bloomberg BusinessWeek reports this week that the Senate Budget Panel has approved a spending plan that includes an assumption that last year's estate tax exclusion of $3.5 million dollars, and last year's top estate tax rate of 45%, will be reinstated. That's really good news for most of us, who don't have that much money to begin with. It means that most people will be able to pass their estates to their heirs without having to worry about the estate tax. This may come about via the same reconciliation procedure that the Senate and House used to get health care legislation passed, so, it's not a done deal. The story reports that "Senate Finance Committee Chairman Max Baucus, a Montana Democrat who is the chamber's chief tax writer, declined to say yesterday which tax provisions could be approved through reconciliation, which would allow Democrats to pass them in the Senate with a simple majority. Democrats control the chamber with 59 votes. "I have some ideas," said Baucus, adding "we don't even have a budget yet" and "we're getting way ahead of ourselves."
Eight Signs Of A Real Estate Rebound - Forbes - April 23, 2010
How to tell if the housing market is coming back.
How To Spot Mortgage Fraud - Forbes - April 23, 2010
These tips will help you avoid becoming the victim of fraud.
This Week in Wall Street History - Forbes - April 23, 2010
Some of the worst decisions in Wall Street History.
Low Expectations For High-Yield ETFs - Forbes - April 23, 2010
Marilyn Cohen says fat total returns on junk bonds and preferreds are history.
What You Need To Know About IRAs - Forbes - April 23, 2010
After you grab your employer's 401(k) match, it's time to fund an IRA. But which kind is best?
How People Lose Money Trying To Save On Taxes - Forbes - April 23, 2010
IRS avoidance should not drive investing choices.
Can This Bicycle Save Lives In Africa? - Forbes - April 21, 2010
F.K. Day designed a better machine for the developing world--then set out to teach people how to make it for themselves.
As 401(k)s Recover, Savers Make Same Old Mistakes - Forbes - April 21, 2010
New Hewitt study shows workers are saving too little, putting too much in employers' stock and failing to rebalance.
Doomed Financial Products Like Goldman's Abound - Forbes - April 21, 2010
Wall Street regularly foists toxic investments on retail crowd.
Study Shows that Advance Directives Help Elders Get the Care They Want - Everyday Estate Planning - April 21, 2010
A recent study in the New England Journal of Medicine found that one in four elder adults need someone else to make decisions for them at the end of their lives. "The results illustrate the value of people making their wishes known in a living will and designating someone to make treatment decisions for them, the researchers said," The Associated Press reports. "In the study, those who spelled out their preferences in living wills usually got the treatment they wanted. Only a few wanted heroic measures to prolong their lives. As summarized in the LA Times: Those who requested limited care at the end of their lives received it most of the time. The study used data from the long-running Health and Retirement Study, which surveys adults ages 51 and older nationwide. In analyzing data from people ages 60 and older who died between 2000 and 2006, researchers found that of the 398 incapacitated people who had used a living will to request limited care at the end of life, almost 83% received it.
Family Swindled By Madoff Fights $61 Million IRS Bill - Forbes - April 21, 2010
Estate tax battle is latest hit for heirs of real estate tycoon Norman F. Levy.
Don't Overestimate Your State Tax - Forbes - April 20, 2010
It pays to take another look at your withholding and estimated tax payments.
Tax Preparer Vows To Fight IRS Bid To Ban Him - Forbes - April 20, 2010
Tobias Elsass says agency approved ''99%'' of his claims for Madoff-like theft losses.
The College Tuition Risk List - Forbes - April 20, 2010
Which schools are most likely to demand more money or cut services after you've enrolled?
Private College Financial Health Rankings - Forbes - April 20, 2010
Which endowed private schools are facing the most financial strain?
University Financial Health Now A Key Factor In Choosing A School - Forbes - April 20, 2010
Parents and students weigh future costs when picking a college.
Can You Sue Your School Over A Tuition Increase? - Forbes - April 20, 2010
Legal hurdles make such lawsuits tough to win.
How To Graduate From A Top Private College Debt Free - Forbes - April 20, 2010
Some top schools offer free rides, but details require careful study.
Estate Tax Could Come Back With Sharp Bite - Forbes - April 18, 2010
Worst case for wealth transfer: a $1 million exemption, plus a crackdown on planning techniques.
Presidential Memorandum on Patient's Right to Designate Visitors - Everyday Estate Planning - April 17, 2010
This week President Obama issued a memorandum to Kathleen Sebelius, the Secretary of Health and Human Services, that asks the Secretary to use her rulemaking authority to require all hospitals that accept Medicare and Medicaid patients to respect the wishes of patients with respect to who should be allowed to visit them. It directs that hospital rules should make it "clear that designated visitors, including individuals designated by legally valid advance directives (such as durable powers of attorney and health care proxies), should enjoy visitation privileges that are no more restrictive than those that immediate family members enjoy. You should also provide that participating hospitals may not deny visitation privileges on the basis of race, color, national origin, religion, sex, sexual orientation, gender identity, or disability." This is great news for couples in non-traditional relationships, as well as widows and widowers, and really anyone who needs the love and support of non-family members while ill. And it makes it especially important (although it has always been especially important) for those who want to designate loved ones as their health care agents to complete valid Advance Directives or Health Care Proxies so that these designations have the force of law.
On April 15, Feds Bring Big Criminal Tax Charges - Forbes - April 15, 2010
Seven UBS clients accused of hiding $100 million offshore; two plead guilty.
April 16 is National Healthcare Decisions Day - About.com - April 15, 2010
Foreign Funds Don't Measure Up - Forbes - April 9, 2010
Better benchmarks once again expose the weaknesses in active management.
Consumers Squeezed As Issuers Slash Credit Card Limits - Forbes - April 9, 2010
Will paying off your balance hurt your credit score?
Timely Help For Tax Procrastinators - Forbes - April 9, 2010
Last-minute advice, including what to do if you find you can't finish your 1040 or pay on time.
When The IRS Says 'Mail It In' - Forbes - April 9, 2010
Congress wants taxpayers to e-file, but the IRS can't accept electronic claims for the home buyer credit or some other forms.
How To Not Get Audited By The IRS - Forbes - April 9, 2010
There are some not-so-smart ways to attract an audit, or other unwanted scrutiny, from the tax enforcers.
Celebrity CEOs - Forbes - April 2, 2010
There are a number of stars who also possess top-grade business savvy. Find out which celebs are a double threat.
Choosing A Tax Preparer - Forbes - April 2, 2010
There are many people and companies that can file your taxes. Find out what each has to offer, and which is right for you.
Another Update on Farrah Fawcett's Estate - Are Trust Funds Being Squandered in a Frivilous Lawsuit? - About.com - April 2, 2010
Trillion-Dollar Pension Gap Just Beginning Of States' Fiscal Woes - Forbes - February 19, 2010
Figure doesn't account for market drop, $500 billion in unfunded health care promises.
What Taxes Will States Turn To Next? - Forbes - February 19, 2010
They've tackled the wealthy, corporations, tobacco and alcohol. Now some strapped states may be forced to confront tax system overhauls.
The Seven Most Universal Job Skills - Forbes - February 19, 2010
As the unemployment rate hovers around 10%, learn what skills you need to avoid becoming part of the statistic.
IRS 400 Suggests Path To Forbes 400 - Forbes - February 19, 2010
Want to join the Forbes 400? Build unrealized capital gains and cash them in when tax rates are lowest.
Why Financial Planners Need To Go Beyond Numbers - Forbes - February 19, 2010
Focus on client emotions instead of analytical tools.
Can You Live A Debt-Free Life? - Forbes - February 19, 2010
Avoiding loans goes against the norm, but it can be possible--and enjoyable.
Estate Planning Term of the Week - Generation Skipping Transfer Tax - About.com - February 19, 2010
Like the past two estate planning terms of the week - Death Taxand Estate Tax- this week's estate planning term is another one that will continue to make headlines as the future of the federal estate tax continues to make headlines - Generation Skipping Transfer Tax(or GSTT for short).The Generation Skipping Transfer Tax is a tax that is assessed on property that is passed from one generation to a generation that is two or more levels below the generation of the person who is making the transfer. Transfers subject to the tax include direct transfers as well as transfers made through a trust.For example, a direct transfer of property from a grandparent to a grandchild would be subject to the generation skipping transfer tax, as well as a transfer made by a grandparent into a trust for the benefit of a grandchild. In addition, a direct transfer or a transfer in trust from one person to an unrelated person who is 37 1/2 years or more younger than the person making the transfer would be subject to the generation skipping transfer tax.In 2009 the federal government exempted transfers of up to $3,500,000 from the generation skipping transfer tax, but as of January 1, 2010 the Generation Skipping Transfer Tax was repealed along with the federal estate tax.Overview of Taxes That Affect an EstateOverview of Current Federal Estate Tax LawsWhat is a Trust?What is a Generation Skipping Trust?Estate Planning Term of the Week - Generation Skipping Transfer Taxoriginally appeared on About.com Wills &Estate Planningon Thursday, February 18th, 2010 at 08:16:46.Permalink| Comment| Email this
Shapely Stock - Forbes - February 12, 2010
Maidenform; Core-Mark Holding; Americas Energy.
Most Valuable REITs - Forbes - February 12, 2010
As the dust settles from the crash, some little-known property outfits are coming to the fore.
Electric Power Still The Best Utility Play - Forbes - February 12, 2010
Water utilities are gaining in popularity with investors but the real juice in the sector is electric power.
The Credit Card Debt Shuffle - Forbes - February 12, 2010
A balance transfer can save you big, but beware of the fine print.
ETF's Rearview Mirror Problem - Forbes - February 12, 2010
Exchange-traded fund sponsors are shamelessly pandering to the latest investment fads.
Delay Sought In California Web Tax - Forbes - February 12, 2010
Tax agency board member calls for small businesses to be given more time to comply.
Unintended Consequences - Forbes - February 12, 2010
A likely outcome of all the bailouts is a recurrence of inflation. Position yourself for it with converts, commodities and adjustable-rate preferreds.
Pawn Shop Steady Eddy - Forbes - February 12, 2010
Payday loans and pawn brokering keep Ezcorp performing at a high level.
Small Luxuries - Forbes - February 12, 2010
Half of affluent Americans are fretting about future financial losses. Making a virtue out of necessity, many of these people are consuming luxury but less conspicuously.
Back To Normal - Forbes - February 12, 2010
Experts are saying Americans will put 20% of their pay in piggy banks and curtail spending. I don't believe personal behavior will shift so radically.
Estate Planning Term of the Week - Estate Tax - About.com - February 12, 2010
Like last week's estate planning term - Death Tax- this week's estate planning term is another one that will continue to make headlines as the future of the federal estate tax continues to make headlines - Estate Tax.An Estate Tax is simply a tax imposed by a state or the federal government upon the right to transfer a deceased person's assets to his or her heirs. The tax is generally calculated by determining the date of death gross value of the deceased person's estate, subtracting allowable deductions such as executor commissions and attorney's fees, funeral and medical bills and outstanding debts, and then multiplying the balance by the estate tax rate.What is the Federal Estate Tax?How to Calculate the Gross Value of Your EstateHow to Calculate Your Estate Tax LiabilityWhich States Collect a State Estate Tax?Estate Planning Term of the Week - Estate Taxoriginally appeared on About.com Wills &Estate Planningon Thursday, February 11th, 2010 at 08:25:14.Permalink| Comment| Email this
Ocean State Surprisers, One's A Buy - Forbes - February 8, 2010
Rhode Island is the smallest state in the Union, but it's home to two companies that blew away expectations.
How To Profit From An Inefficient Market - Forbes - February 8, 2010
Yes, it is possible to consistently beat the stock market.
Tough Times Are Boom Times For Scams - Forbes - February 8, 2010
Complaints abound as con artists, often using the Web, target the down and out.
Sowing Bullish Seeds For Sprint - Forbes - February 8, 2010
A bet for a big gain in Sprint Nextel raises some eyebrows.
Estate Planning Term of the Week - Codicil - About.com - January 29, 2010
Need to make a change to your Last Will and Testament? Then you may need this week's estate planning term - a Codicil.A Codicil is simply a legal document that is used to change, add or remove specific provisions of a Last Will and Testament. A Codicil must be signed with the same formalities as a Last Will and Testament, otherwise it won't be valid.A common question that I'm asked is whether someone should make a Codicil or an entire new Last Will. Unfortunately there isn't one simple answer to this question since each client's estate planning goals are unique, and only an estate planning attorney can help each client make the best decision under each unique circumstance.What is a Last Will and Testament?What is a Codicil?How Do You Make Changes to Your Last Will and Testament?Is Your Last Will and Testament Valid?Estate Planning Term of the Week - Codiciloriginally appeared on About.com Wills &Estate Planningon Thursday, January 28th, 2010 at 08:25:59.Permalink| Comment| Email this
Blue Chips For The Dip - Forbes - January 29, 2010
The overall market weakness provides a good entry point into these household names.
Time To Bid On EBay - Forbes - January 29, 2010
The stock is a double since last spring but it still looks cheap. Jump aboard.
Qualcomm Options Fiesta - Forbes - January 29, 2010
As shares plunge, bears jump on board for the ride lower and contrarian bulls bet on a rebound.
Grind Higher With Coffee Stocks - Forbes - January 29, 2010
Peet's and Panera are two java sellers whose shares look good to buy, but you shouldn't rush into Starbucks.
Estate Planning in 2010 and Beyond - What Should You Do? - About.com - January 25, 2010
With the repeal of the federal estate tax on January 1, estate planning has entered a new era. While the initial reaction is to think that the days of planning to minimize estate taxes are gone, there are two problems with this train of thought: (1) the federal estate tax is scheduled to come back with a vengeance on January 1, 2011; and (2) 15 states and the District of Columbia still collect estate taxes at the state level and seven states collect a state inheritance tax.Of course, there has been much speculation that Congress will act "quickly"in early 2010 to reinstate the federal estate tax, but with the House and Senate focused on health care reform and far apart on where they believe the estate tax exemption and rate should be - the House favors a $3.5 million exemption and 45% rate, while the Senate favors a $5 million exemption and 35% rate - it may be impossible for Congress to get anything done with the estate tax in 2010. And besides, when has Congress ever acted quickly on a complicated fiscal matter?So what should you do about your estate plan during this unsettled time of federal estate tax repeal? Stay tuned for ten estate planning tips for 2010 and beyond.Overview of Current Federal Estate Tax LawsFederal Estate Tax Exemption: 1997 - 2011State Estate Tax and Exemption ChartState Inheritance Tax ChartWhat's the Difference Between an Estate Tax and an Inheritance Tax?What is the Future of the Federal Estate Tax?Estate Planning in 2010 and Beyond - What Should You Do?originally appeared on About.com Wills &Estate Planningon Monday, January 25th, 2010 at 08:25:46.Permalink| Comment| Email this
Vahan Janjigian On Equities - Forbes - December 29, 2009
Don't fall in love with the V-shape. The economy double-dips, the Dow corrects sharply and even gold bugs get swatted.
Connecticut Estate Tax Update - Legislature Votes to Postpone Exemption Increase - About.com - December 29, 2009
Due to ongoing budget woes, the Connecticut legislature voted on December 21 to postpone the increase of the state estate tax exemption from $2 million to $3.5 million which is scheduled to take place on January 1. The change was also supposed to increase the state gift tax exemption to $3.5 million and make the state estate tax applicable only to the amount an estate exceeds $3.5 million instead of the current law which taxes the first $2 million as well as everything above it. It still remains to be seen if Gov. M. Jodi Rell will veto the postponement.Legislature still at odds over strategy to trim deficitUnderstanding Death, Estate and Inheritance TaxesUnderstanding the State Estate Tax Exemption TrapState Estate Tax ChartOverview of Connecticut Estate Tax LawsUnderstanding Connecticut Gift TaxesConnecticut Estate Tax Update - Legislature Votes to Postpone Exemption Increaseoriginally appeared on About.com Wills &Estate Planningon Monday, December 28th, 2009 at 08:25:35.Permalink| Comment| Email this
Richard Lehmann On Fixed Income - Forbes - December 21, 2009
Inflation is definitely coming but it's more than a year away, so bonds are OK for now. Your best bets are gold and stock in the new GM.
How Much Money You'd Save By Skipping Christmas - Forbes - December 8, 2009
Skipping holidays could help shore up finances.
Beware Bank Gift Cards - Forbes - December 8, 2009
They're convenient, but hidden fees may leave recipients feeling shortchanged.
Should You Buy A Home In Foreclosure? - Forbes - December 8, 2009
Short sales, bank-owned homes are bargains but tricky to buy.
Estate Planning Myth vs. Reality #11 - Is Your Estate Plan Done When Your Documents Are Signed? - About.com - December 8, 2009
Estate planning myth:Once you sign your estate planning documents your estate plan is officially done.Estate planning reality:Not so fast - once the documents have been signed you may still need to take additional steps in order to insure that your estate plan will work the way you expect it to work.The recommendation:If you have a will-based estate plan, then you will need to confirm that the ownership of your property and the beneficiary designations for your life insurance and IRAs and 401(k)s correspond with your overall estate planning goals.If you have a trust-based estate plan, then you will need to fund your assets into your Revocable Living Trust and update the beneficiary designations for your life insurance and IRAs and 401(k)s so that how your property is titled and who you have named as your beneficiaries correspond with your overall estate planning goals.Aside from this, as your life changes so should the provisions of your estate plan. You should either work with an estate planning attorney who has an annual or semi-annual maintenance program to insure that you continue to monitor your plan in a systematic way, or if your attorney does not have such a plan, then make it a point to take your estate plan out of the drawer and look at it every year or every few years to insure that it still meets your estate planning goals.How to Choose Beneficiaries for Life Insurance PoliciesHow to Choose Beneficiaries for IRAs and 401ks if You're SingleHow to Choose Beneficiaries for Your IRAs and 401ks if You're MarriedWhat Are the Procedures for Funding a Trust?How Often Should You Review Your Estate Plan?Top Reasons for Updating Your Estate PlanEstate Planning Myth vs. Reality #11 - Is Your Estate Plan Done When Your Documents Are Signed?originally appeared on About.com Wills &Estate Planningon Monday, December 7th, 2009 at 08:25:23.Permalink| Comment| Email this
Income During Inflation - Forbes - November 30, 2009
Bonds are a risky venture when inflation is set to explode at any moment. Play it safe. Go for dividends.
The Brokerage Customer Is Always Wrong - Forbes - November 30, 2009
Some brokerages field complaints with a smile. That doesn't necessarily mean you'll get back the money you lost.
The Old Normal - Forbes - November 30, 2009
A decade ahead of lackluster earnings and economic growth? Don't believe that rubbish.
Estate Planning Myth vs. Reality #9 - Do You Need to Treat Your Beneficiaries Equally? - About.com - November 30, 2009
Estate planning myth:The only way to treat your children or other beneficiaries fairly is to make sure that in the end they each receive an equal share of your estate.Estate planning reality:Making it truly equal is an impossible task that should be avoided at all costs.The recommendation:OK, so you bought your oldest daughter her first car and you paid for your youngest daughter's emergency surgery and you put your only son through Harvard. So what? Each of your children is unique and has unique needs, and with those unique needs comes differing costs and expenses. Keeping a running tally of who got what and when they got it will drive you crazy. And have you thought about potential gift tax consequences, cost of living differences, and inflation? How will you take these things into consideration? Don't (well, you do need to be aware of gift tax issues), and don't try to make it equal. In the end someone will probably feel slighted or less loved, but the bottom line is that it really doesn't matter because there will be things that they took for granted or don't remember that can't be quantified in any monetary form. What is the Gift Tax?What Gifts Are Subject to the Gift Tax?What Gifts Are Not Subject to the Gift Tax?4 Tips for Getting Started on Your Estate PlanEstate Planning Do'sEstate Planning Don'ts10 Steps to Creating a Good Estate PlanEstate Planning Myth vs. Reality #9 - Do You Need to Treat Your Beneficiaries Equally?originally appeared on About.com Wills &Estate Planningon Sunday, November 29th, 2009 at 08:25:36.Permalink| Comment| Email this
Future of the Federal Estate Tax Website Covers it All - About.com - November 20, 2009
Recently I came across a terrific website that summarizes it all when it comes to collecting and organizing the latest information about whether the federal estate tax will stay or go in 2010: Future of the Federal Estate Tax. One section of the website lists all of the estate tax bills actively in front of Congress and provides a useful summary of the contents of each bill: Federal Estate Tax Bills in Front of Congress. A quick review of this section reveals that there are currently 16 bills that address estate tax reform in some shape or form circulating in the House and three circulating in the Senate. Stay tuned for a review of S. 2784- "A bill to amend the Internal Revenue Code of 1986 to permanently extend the estate tax as in effect in 2009, and for other purposes"- it was just introduced in the Senate on November 17 by Sen. Thomas R. Carper (D-DE) and Sen. George V. Voinovich (R-OH) .Last but not least another section of the website provides links to the latest news on the status of federal estate tax repeal, or not: Progress in Congress. When I reviewed this section at the beginning of the week there was an article which speculated that there was a very good chance that the estate tax debate would reach the floor of the House sometime this week, but yesterday there was an update stating that "House Democrats are likely to delay consideration of estate tax legislation until after the Thanksgiving recess."Or maybe after the new year.If you want to keep up to speed on the latest estate tax news through the website, you can subscribe to updates via email or through an RSS reader.What is the Federal Estate Tax?Overview of Current Federal Estate Tax LawsWhat is the Future of the Federal Estate Tax?One Year Patch Likely to End Estate Tax RepealUpdate on Predictions About the New Federal Estate Tax LawFuture of the Federal Estate Tax Website Covers it Alloriginally appeared on About.com Wills &Estate Planningon Thursday, November 19th, 2009 at 08:32:13.Permalink| Comment| Email this
Tape Talk - Forbes - November 13, 2009
Tickerville's Quint Tatro takes a weekly look at what the market indexes are saying.
Separating Luck From Skill - Forbes - November 13, 2009
In companies and in portfolios, luck matters in the short term, but skill matters in the long term.
Swapportunities - Forbes - November 13, 2009
Take profits on your premium-priced bonds and swap into lower-coupon bonds whose prices are closer to par.
Five Stock Prospects Under $10 - Forbes - November 13, 2009
Sometimes it pays to look where some investors fear to tread: shares selling for less than $10.
V Is For Vicious Cycle - Forbes - November 13, 2009
Abandon your dreams of a V-shaped recovery. The consumer is still too depressed to buy us a quick end to the recession.
Estate &Gift Tax Update - What Will the Annual Exclusion Be for 2010? - About.com - November 13, 2009
While the federal estate tax is currently scheduled to disappear on January 1, 2010, the federal gift tax is here to stay with the lifetime gifting exclusion amount remaining at $1,000,000 for 2010. Aside from this, the IRS recently issued Rev. Proc. 2009-50, which states that in 2010 the annual gifting exclusion amount will remain at $13,000 per gift to a non-spouse and the annual gifting exclusion amount for gifts made to a spouse who is not a U.S. citizen will remain at $133,000. The only gift tax change that will take effect in 2010 will be the reduction of the highest gift tax rate from 45% down to 35% - now don't get too excited.What is the Gift Tax?What Gifts Are Subject to the Gift Tax?Are Gifts to Your Spouse Taxable?What is an Annual Exclusion Gift?Annual Exclusion Chart: 1997 - 2010What is the Exemption from Gift Taxes?What is the Future of the Federal Estate Tax?One Year Patch Likely to End Estate Tax RepealEstate &Gift Tax Update - What Will the Annual Exclusion Be for 2010?originally appeared on About.com Wills &Estate Planningon Saturday, November 7th, 2009 at 10:25:36.Permalink| Comment| Email this
The Latest on Michael Jackson's Estate - Executors Branca &McClain vs. Joe Jackson - About.com - November 13, 2009
There were some surprising twists this week in the ongoing saga that is the probate of Michael Jackson's estate. While Jackson's mother, Katherine Jackson, dropped her objections to the appointment of attorney John Branca and music executive John McClain as the permanent executors of the estate, Michael's father, Joe Jackson, filed a 60-page petition wherein he asked for a $20,000 per month allowance from his son's estate and voiced his objections to the appointment of Branca and McClain.In the end Judge Mitchell Beckloff named Branca and McClain as the permanent executors because this was exactly what Michael stated in his Last Will and Testament:"That was a decision his son made,"Beckloff said in court. "I don't see how (Joe Jackson's) affected by the appointment of Branca or McClain as executors."The hearing on Joe Jackson's request for an allowance has been set for Thursday, December 10. Of course, since Joe Jackson was not named as a beneficiary of his son's revocable living trust (according to the petition for probate that was filed along with Jackson's 2002 Pour Over Willto open the estate, Michael's three children, his mother and several children's charities were named as the beneficiaries of the Michael Jackson Family Trust), Joe Jackson will have an uphill battle proving that he is entitled to receive even one penny from his son's estate.Judge Names Pair of Executors for Jackson EstateReading Michael Jackson's Will Isn't a ThrillerChoice of Permanent Executor of Michael Jackson's Estate DeferredMichael Jackson's Will vs. the Michael Jackson Family TrustLearn How to Follow Michael Jackson's Probate Court DocketThe Latest on Michael Jackson's Estate - Executors Branca &McClain vs. Joe Jackson originally appeared on About.com Wills &Estate Planningon Thursday, November 12th, 2009 at 08:25:12.Permalink| Comment| Email this
How to Dodge Higher Medicare Premiums - Forbes - November 6, 2009
Income-based premiums are set to jump, but seniors have some options.
What to Watch for Now at 8 Key Retailers - Smart Money - November 6, 2009
October sales are in. What do they mean for earnings season?
Stocks Surge Late, Dow Tops 10,000 Anew - Smart Money - November 6, 2009
New jobless claims decline, major indexes rise sharply on news.
What Happens When the Punch Bowl Goes Away? - Smart Money - November 6, 2009
The Fed didn't raise rates, but it will soon, and that could affect the markets.
Rally Powers ETFs Across Most Sectors - Smart Money - November 6, 2009
Jobless claims report and tech gains help bring out the bulls.
Estate Planning Myth vs. Reality #4 - Do You Really Need to Understand Your Estate Plan? - About.com - November 6, 2009
Estate planning myth:Everyone who has an estate plan was instrumental in creating it and understands what it says and does.Estate planning reality:Many estate planning attorneys fail to think outside of the box when planning their clients' estates. In other words, many estate planning attorneys have a specific type of estate plan that the attorney will draft for 99% of his or her clients. For example, the majority of an attorney's clients may have Revocable Living Trusts, broad powers of appointmentfor the surviving spouse, trusts for beneficiaries until the age of 30, and the requirement that there always be two trustees serving together. Did the clients make these specific choices after discussing all of the options with their attorney, or did the attorney simply tell the clients that this is the type of estate plan that they should have? Does the client understand why they have a Revocable Living Trust, what a power of appointment is, or why they need to have two trustees instead of just one? Too frequently estate planning attorneys think that they know what is best for all of their clients when in reality each and every client is unique and so their estate plan should be unique.The recommendation:Don't let your estate planning attorney decide all of the details about your estate plan. If the attorney tells you that you must plan your estate in a certain way, then understand why and don't be afraid to ask about other options. This is the only way you will be able to understand your estate plan.4 Tips for Getting Started on Your Estate PlanDo You Need to Hire an Estate Planning Attorney?7 Tips for Finding an Estate Planning Attorney6 Questions to Ask a Prospective Estate Planning AttorneyHow Much Should Your Estate Plan Cost?Estate Planning Myth vs. Reality #4 - Do You Really Need to Understand Your Estate Plan?originally appeared on About.com Wills &Estate Planningon Thursday, November 5th, 2009 at 08:28:03.Permalink| Comment| Email this
Irish Banks Are Smiling - Forbes - October 30, 2009
A white knight came to Ireland's rescue: the European Central Bank, with capital for big commercial banks.
Should You Buy Or Rent? - Forbes - October 30, 2009
Deciding whether to buy a home comes down to your expected returns.
Seven Tips For Buying A Home In This Market - Forbes - October 30, 2009
How to find the best real estate deals.
Is Recession Normal? No - Forbes - October 30, 2009
Multiples are inflated because earnings are depressed. It's that simple.
Why U.S. Doesn't Need More Home-Buyer Perks - Smart Money - October 30, 2009
Hough: Five reasons to look beyond the clamor for an extended tax credit.
Rally Revives, Lifting Most ETFs and Indexes - Smart Money - October 30, 2009
Surprise GDP growth report gets stocks and ETFs surging.
Broker Talk: When the Feds Leave the Building - Smart Money - October 30, 2009
What will happen to interest rates when the government stops intervening?
Stocks Hold Holiday Surge on Merger News - Smart Money - September 29, 2009
News at a Glance
- Merger Monday: Deals happen and rumors fly.
- More Merkel: German Chancellor wins second term.
- Dandy Dow: Poised for best quarter since 1998.
- Crude Creaks: Oil dips below $67.
The Lowdown
Stocks closed up sharply Monday after a slew of merger activity and a post-electoral European markets bounce sparked investor enthusiasm.
The Dow Jones Industrial Average climbed 129 points to 9789. The Nasdaq rose 40 to 2131 and the S&P 500 rose 19 to 1063.
Abbott Laboratories (ABT) climbed after it said it will buy the pharmaceutical business of Belgium's Solvay for as much as $7 billion in a deal that would expand its presence in emerging markets.
Johnson & Johnsonsaid it bought 18.1% of Crucell (CRXL) for $442.7 million and will pay development milestones and royalty payments if flu vaccines the two firms will develop make it to the market. Crucell shares rose slightly.
Overseas, Japan's Nikkei 225 Average fell 2.5% as exporters' shares were hurt by the strengthening of the yen against the dollar. In recent trading, the dollar was at 89.48 yen, down from 89.85 yen late Friday in New York. Elsewhere in Asia, China's Shanghai Composite declined 2.7% and Hong Kong's Hang Seng Index shed 2.1%.
But in Europe, stocks were climbing. London's FTSE 100 closed higher by about 1.76% and Germany's DAX was up about 2.8% after Sunday's election in which incumbent Chancellor Angela Merkel's center-right coalition won that country's national elections, setting the stage for tax cuts and labor-market changes.
As of 3:58 p.m., front-month crude-oil futures traded on the Nymex climbed 21 cents to $67.05 a barrel.
Corporate News
- News reports in the British press saidKraft Foods(KFT) was readying another hostile bid for U.K. candy maker Cadbury (CBY), reported at $17.6 billion. An initial bid was rejected earlier this month. STORY
- Xerox (XRX) struck a deal to buy Affiliated Computer Systems(ACS) for $6.4 billion in cash and stock to bolster its position in outsourcing services. Affiliated provides outsourcing to 1,700 federal, state and local governments, as well as private firms.
Dow Jones Newswires contributed to this report.
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September 28, 2008 (Sunday): Tentative Agreement on Bailout; More Bank Upheaval - Smart Money - September 29, 2009
Tentative Agreement Reached on $700 Billion Bailout
It could cost taxpayers $700 very big ones — as in billions — but many breathe a sigh of relief as the Bush administration and Congressional leaders reach a tentative agreement on a bailout. The deal, which could prove to be the biggest financial rescue in U.S. history, will let the Treasury Department buy $700 billion in debt from companies in trouble. It is described as a necessary intervention to prevent a broad meltdown of the economy. Congressional staffers are expected to pull all-nighters to draft a bill that can be brought to the floor for a vote on Monday. Among the provisions: some pay limits for executives whose firms take aid, and a requirement that the government seek to prevent home foreclosures. (For more on this news, click hereand here.)
Another Bank on the Block
Federal regulators are said to be pushing for Wachovia, the country’s fourth largest bank, to sell itself. Wells Fargo and Citigroup are two potential purchasers, the New York Times reports. If a sale goes through to one of those banks, it would further concentrate the nation’s deposits in the hands of just three institutions — Bank of America, JPMorgan Chase and the bank that acquires Wachovia. Concerns are raised that the concentration would give the banks enormous control over loans and services, the Times reports. But it is expected there will also be stricter regulations. (For more on this news, click here.)
Across the Pond
The global economy gets a little smaller today. Prime Minister Yves Leterme of Belgium and European Central Bank president Jean-Claude Trichet make an unprecedented joint appearance to announce the rescue of Fortis, a Belgian-Dutch financial conglomerate. Fortis is partially nationalized in the rescue, and receives an injection of 11.2 billion Euros from three governments. Meanwhile, Bradford & Bingley, a British bank, is seized by local regulators after no private buyers emerge over the weekend. It becomes the third British bank to collapse this year. (For more on this news, click here.)
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Is There Substance to 'Buy on Yom Kippur' Adage? - Smart Money - September 29, 2009
An old tradingadage suggests to "Sell Rosh Hashanah, Buy Yom Kippur” in the belief that stocks often fall in the period between the two Jewish holy days — Rosh Hashanah, the new year (which comes first on the calendar), and Yom Kippur, the holiday when Jews ask God for forgiveness for their sins. Presumably, investors can avoid some losses and buy at a discount, but only after properly atoning on Yom Kippur, which this year ends tonight at sundown.
Like other catchy sayings about the market, this one has a little bit of data to back it up. Following the Yom Kippur strategy between 1971 and 2009 would have worked out to an investor’s advantage in slightly more than half the years, according to data from the Stock Trader's Almanac. So far this year, the market has lost 1.21% since Rosh Hashanah, which ran September 18 to 20 — although that might have more to do with disappointing data on the housing market and durable goods orders than with the Jewish calendar.
Trading axioms typically spring from a mix of psychological theories and actual data, says Paul Frank, a portfolio manager at the ETF Market Opportunity Fund. "Someone would spot the trend and maybe 7 out of 10 years it would work, and then people would jump on it, and it was kind of a self-fulfilling prophecy," Frank says.
Once word gets out, its effect will dissipate if too many people try it at once, says Frank — and the supposed wisdom may not have had much validity to it in the first place. "Patterns appear, but is there a reason behind those patterns, really?" Frank says.
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Rally Carries Most ETFs to Higher Finish - Smart Money - September 29, 2009
Market Wrap-Up
Stocks and most exchange traded funds notched sizable gains Monday after a slew of merger activities and a post-electoral bounce in Europe.
The Dow Jones Industrial Average climbed 131 points to 9796. The Nasdaq gained 41 to 2132 and the S&P 500 rose 18 to 1062. Light trading volume and a broad rally ensured that most ETFs not betting against market momentum finished in positive territory.
Abbott Laboratories(ABT) climbed after it said it will buy the pharmaceutical business of Belgium's Solvay(SVYSY) for as much as $7 billion in a deal that would expand its presence in emerging markets.
Johnson & Johnson(JNJ) said it bought 18.1% of Crucell(CRXL) for $442.7 million and will pay development milestones and royalty payments if the flu vaccines the firms plan to develop reach the market. Crucell shares rose slightly.
In Europe, stocks were climbing. London's FTSE 100 was higher by about 1.76% and Germany's DAX was up about 2.8% after Sunday's election, in which incumbent Chancellor Angela Merkel's center-right coalition won that country's national elections, setting the stage for tax cuts and labor-market changes. For a detailed rundown on Monday’s trading session see our market story.
Winners
The broad rally pushed financial services stocks ahead of major indexes and sent shares of the Financial Select Sector SPDR fund(XLF) up 3.4%. The iShares Dow Jones US Financial Sector Index fund(IYF) climbed 2.3%.
Losers
Natural gas prices declined and a new share issue sent the United States Natural Gas fund(UNG) down 1.9%. The iShares S&P U.S. Preferred Stock Index fund(PFF) for corporate debt rated BBB or better slipped 0.4%.
Monday’s Industry Headlines
Launching Pad
The Wall Street Journal reported Mondaythat Swiss commodity supplier Glencore International and Credit Suisse Group have paired up to offer an exchange-traded fund backed by actual aluminum, using the same principles as ETFs backed by silver and gold bullion. The application has been filed with regulatory agencies.
Tuesday’s Notebook
Earnings and Conference Calls
Allscripts-Misys Healthcare Solutions, China Precision Steel, Darden Restaurants, Jabil Circuit, Landec, Micron Technology, Nike, Sealy, SMF Energy, Walgreen, Worthington Industries
Economic Data
7:45 a.m. ICSC-Goldman Store Sales
8:55 a.m. Redbook
9:00 a.m. S&P Case-Shiller Housing Price Index
10:00 a.m. Consumer Confidence
10:00 a.m. State Street Investor Confidence Index
Quick Take
A look at how the industry's most popular ETFs did on Monday.
| Symbol | Net Assets | Price | 52 Week High | 52 Week Low | Volume |
|---|---|---|---|---|---|
| SPY | 72,585 | 106.32 | 121.17 | 68.13 | 117,600,111 |
| EFA | 33,471 | 54.99 | 60.06 | 32.16 | 15,638,876 |
| EEM | 30,268 | 38.58 | 39.11 | 19.12 | 52,264,911 |
| GLD | 32,606 | 97.05 | 99.92 | 70.14 | 7,789,715 |
| IVV | 19,814 | 106.62 | 121.37 | 68.24 | 2,786,854 |
| QQQQ | 16,371 | 42.41 | 42.66 | 25.51 | 84,262,805 |
| IWF | 10,219 | 46.37 | 50.2 | 30.49 | 2,490,401 |
| SHY | 7,187 | 83.93 | 85 | 83.07 | 716,388 |
| VTI | 11,880 | 53.88 | 60.71 | 33.75 | 1,574,815 |
| IWD | 8,052 | 55.94 | 66.45 | 34.22 | 1,708,679 |
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Q &A With Southwest Airlines CEO Gary Kelly - Smart Money - September 29, 2009
With business travelplummeting, consumers demanding deep discounts and oil prices fluctuating wildly, the airline industry is facing one of its worst downturns ever. So when Southwest Airlines (LUV) became one of the few carriers to eke out a profit in the second quarter, you'd think it was time for CEO Gary Kelly to celebrate by tapping that beer vending machine sitting in the corner of his second-floor office.
Not so fast. "The worst is ahead of us," says Kelly, a 23-year veteran of the Dallas-based airline. In Kelly's book, doing less badly than your rivals isn't enough. The low-key executive, who became CEO in 2004 and succeeded chain-smoking, antics-loving cofounder Herb Kelleher as chairman last year, cautioned investors that despite the black ink in the second quarter, he couldn't predict a repeat performance later in the year. That's not to say the 54-year-old executive isn't trying-he's cut the number of planes flying, started service at bigger airports like New York's LaGuardia and Boston's Logan, and charged passengers for priority boarding and for carrying pets on board.
Southwest held up well in past downturns, helped by its low cost structure and knack for savvy long-term planning. But this time around it's had a tougher time: Until last fall it hadn't reported a quarterly loss in 17 years. The firm retains some distinct advantages, like its investment-grade credit rating, modern fleet of Boeing 737s and ability to get planes in and out of the airport faster than rivals. But it also faces new challenges. Other carriers sharply lowered their labor and other expenses during bankruptcy proceedings, slicing into Southwest's long-held cost advantage. To some, the rapidly shifting landscape means Southwest might have to stop trying so hard to be different. They question, for example, its reluctance to follow rivals in charging fees for checking baggage. "Maybe that's not the right way to go," says Helane Becker, analyst at brokerage firm Jesup & Lamont.
For Kelly, who took his first flight on Southwest in 1975, when flight attendants wore hot pants, the challenge is to maneuver through the airline downturn without compromising the carrier's financial strength or its offbeat culture. As Southwest has grown from a scrappy underdog to an airline with more domestic passengers than any other, the flight attendants have traded in their hot pants for khakis. But the quirkiness continues: Take-off instructions are sometimes rapped, and passengers are warned to "keep your tush in the cush" upon landing. We sat down with the sixth-generation Texan in his office outfitted with historical memorabilia from his home state to hear about his plan to get through the turbulence.
A lot of people have talked about "green shoots" signaling economic recovery. Do you see them?
The industry is under tremendous stress. There are absolutely no green shoots. We have to be very prepared for uncertainty and instability, and operate with an abundance of caution.
You've cut about 6 percent of flights this year. How much more is needed?
The question is: What is it going to take to not just survive the recession but maintain our financial position and take care of employees? We will have to continue to trim our flight schedule but at a pace that's not radical, in hopes we can avoid grounding airplanes, furloughing employees and all the bad things that can happen in difficult environments. We'll have to be sure to maintain sufficient levels of cash. We have $2.4 billion and plenty of access to capital markets, and we are going to boost revenue and reduce costs through an early-retirement program.
How do you increase revenue?
Many of the opportunities depend on new technology. We've changed our boarding process, introduced a new fare structure and implemented new technology to manage fares better.
You've held off on baggage charges, much to the dismay of analysts.
Customers hate these fees. Analysts assume you charge the fee and it drops straight to the bottom line. But it's not clear that we'll make more money if we charge than if we don't.
But aren't fliers getting accustomed to these fees?
The potential from charging baggage fees is at most 5 percent of revenue, and it's not a reach to say we are getting that much more from not charging.
Airports are filled with disgruntled passengers. Should there be legislation to ease the frustrations?
I don't accept that. In brand and satisfaction rankings, we were up there with high-end restaurants. Travel is not always perfect; it's about how we deal with those less-than-perfect situations, like delays. Surveys show passengers just want to know if their flight is going to go and at what time. So we stress those things. It's a shame to legislate something that can't be legislated, like weather.
You've been at Southwest 23 years. What is different about this downturn?
I wish steroids were legal, because the speed at which we need to identify issues, study them and make decisions is unlike anything I have experienced before. Anytime you have that many points changing that rapidly, there are bound to be some rough spots. A couple of years ago, we had record earnings, so we were making plans with a lot of comfort. But we've lost our cushion now, so we have to manage our risk much more carefully.
What bothers you?
Generalizations. People think of our low fares, and that implies "cheap." But we have one of the youngest fleets, best compensation packages and have never had furloughs. And some people think all we do is have parties. That's not even close to reality.
| Company | Ticker | Est. 2009 sales | Est. 2009 net loss | Est. 2009 EPS | 2009 P/E | Market value |
|---|---|---|---|---|---|---|
| With fewer passengers and volatile oil prices, the airline business faces another deep slump. Southwest's shares are up just 1 percent this year, compared with an 11 percent gain for the S&P 500. | ||||||
| Southwest Airlines | LUV | $10 billion | $47 million | -0.02 | NA | $6.5 billion |
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Overhang of Foreclosures Clouds Housing Market - Smart Money - September 29, 2009
OUR PERIPATETIC PRESIDENTapparently is allergic to Washington. Who can blame him? Getting Congress off its butt and moving even crabwise in almost any direction is slightly more difficult than herding a tangle of snakes. No offense meant to the snakes, who confine their expressions of displeasure to hissing or rattling, unlike our chosen representatives who fill the air with noxious blustery babble.
Mr. Obama, moreover, prefers to voyage abroad; quite understandable, too. He can usually count on adulation from the cheering multitudes in foreign climes who haven't succumbed to rhetorical fatigue — a condition brought on by being exposed to an overdose of oratorical flourish unleavened by substance — that increasingly seems to be afflicting the citizenry here.
As it happened, last week, the president didn't have to travel to the far corners of the earth (unless you are one of those who consider Pittsburgh and particularly New York as far corners of the earth). In a sense, the world came to our fair land (one of the penalties for debasing our currency).
There were not one but two gatherings of global leaders (and laggards; it's often hard to tell the difference): The G-20 bunch, who met in Pittsburgh to fix the world's economies, and the United Nations, which came to New York to mess up the traffic, indulge their logorrhea and take time out from emptying their countries' treasuries to have a high old time.
From what we can tell, the G-20 meeting was a great success; at the end of their somber deliberations, the world's economies weren't noticeably worse off. As for the get-together of the United Nations, it only reinforced our conviction that body should change its name to something more fitting. Like the Indig Nations.
For, as at most of these behemoth bull sessions, elbowing their way into the limelight were the likes of that renowned advocate of democracy, Libya's Moammar Gadhafi, whose rant exceeded the allotted 15 minutes by more than an hour and left his listeners transfixed (or at least in a stupor); Mahmoud Ahmadinejad, Iran's election-rigger par excellence, who graciously cut his rancid remarks to only half an hour, addressing an audience mostly disguised as empty seats, and Venezuela's windbag strongman Hugo Chavez, who had a few words of praise for Mr. Obama (he really knows how to hurt a guy).
We must confess, though, that these get-togethers, especially when they're held on our home grounds, somehow always make us feel better after we've seen the participants close up. For whatever we think of our own political luminaries, they tend to look not half bad compared to most of their foreign counterparts. Or maybe it's that, contrary to the old saw, familiarity actually breeds a little less contempt.
What helped rattle the market last week was evidence that housing, which, when it crashed and burned, badly torched the rest of the economy as well, still faces a long, tough slog in its struggle to reach solid footing. It must really have pained the folks at the National Association of Realtors, who come hell or high water remain congenital optimists (you think it's easy peddling the illusion that every shack's a castle?) to report that sales of existing homes in August were lower.
The decline hurt all the more because the 2.7% drop to a 5.1 million annual rate broke a winning streak stretching back to March (which, perhaps not coincidentally, was when this explosive bear-market rally in equities began). As usual, economists, analysts and assorted camp followers had been confidently predicting a rise in sales. As usual, too, when, instead, sales fell, the economists, analysts et al. lickety-split hurried to point out that one month doesn't necessarily constitute a trend. And it doesn't, although on Wall Street that axiom somehow only applies when the month in question is a bummer.
All of which is preface to sharing with you a decidedly negative take on the outlook for housing by Amherst Securities Group, whose stuff we've quoted before and whose analysis is invariably first-rate. The report, dated last Wednesday, festooned with gory detail, focuses on the swollen overhang, the so-called shadow inventory, that has grown inexorably in the wake of the tsunami of default and foreclosure.
Amherst estimates this massive overhang at seven million units. That's the equivalent of 135% of a full year's existing-home sales and chillingly greater than the 1.27 million units that made up the overhang in early 2005, when the housing bubble had just begun its dizzying and more than a little lunatic ascent.
Put another way, of the 56 million units that the Mortgage Bankers Association says make up the mortgage universe, Amherst gauges 6.94 million units are in what it dubs the "delinquency pipeline" eventually headed for liquidation. And it reckons that another 300,000 mortgages replenish that unwelcome flow every month.
Essentially, then, this shadow inventory represents a massive furtive supply of future foreclosure. Amherst fingers negative equity as keeping the delinquency pipeline heavily stocked. Quite a reasonable assumption, we think. A home owner, saddled with a house that's valued at less than it cost him to buy or that he can reasonably expect to sell it for may lack the will and, more importantly, the wherewithal to keep making payments on his mortgage.
Homeowners' equity has declined from 58.7% back in '05 to around 43% today. What's more, nearly a third of households have no mortgages, which, of course, means that the equity percentage of the 50-plus million that do have mortgage loans is a good cut lower than 43%.
The failure of mortgage modification programs to address negative equity is why Amherst is skeptical that such efforts will be of much help in shrinking that huge shadow inventory. That's a view articulated more than once in this space by Mark Hanson, of Hanson Advisors, who, to his credit, has been quite cautionary about the prevailing bullishness on housing.
Three factors are cited by Amherst as the chief culprits in this sorry narrative. The first is the rapidity with which what it describes as the nonperforming bucket (where the mortgages are at least 60 days delinquent) is filling. The second is the strikingly low "cure rate" on delinquent loans. In 2005, homeowners retrieved 66% of their loans delinquent 60 days or longer. That percentage shriveled to a paltry 5% in the second quarter of '09.
And, finally, bloating the inventory overhang is the lengthening time between delinquency and liquidation. Of the loans in the delinquent pipeline in August 2009, 9% have not made a payment in over 24 months, compared with 4% in 2008. The reasons cited by Amherst for this stretching out include moratoriums on foreclosures and the slow pace of the judicial process in states where a judge's O.K. is required for foreclosure.
We lack the space to offer more than a sketchy précis of the Amherst analysis, which earns high marks for its painstaking explanation of how it reached its less-than- cheerful conclusions. Amherst freely acknowledges that it has emphasized the negative and ignored some positive elements in the housing picture, such as restored housing affordability and the lure of the tax credit for first-time home buyers.
But it reiterates its belief that the humongous overhang is the biggest impediment to a real recovery in housing. And it's deeply concerned that the apparent stabilization "is temporary, based on seasonal factors, and prices can deteriorate further." Any permanent improvement, Amherst contends, isn't in the cards until there's "some resolution of the shadow inventory."
Housing wasn't the only unexpected piece of bad news that gave investors a sudden itch to cash in some of the big gains racked up in the market's wild bull run. Durable-goods orders took their biggest drop last month since January. Here, too, the cockeyed consensus was a good piece off the mark, anticipating a modest uptick (0.5% to be exact). Of particular note is that outlays for nondefense capital goods excluding aircraft were off for the second straight month, rather strongly suggesting that business is no more eager to spend than the consumer.
In the same melancholy vein, now that "cash for clunkers" is no more, the road ahead for auto makers looks a whole lot bumpier. J.D. Powers & Associates, which keeps an educated thumb on the auto biz, glumly estimates September sales will sag to 590,000 units, compared with 1.14 million in August and down 24% from a year-ago. It expects a better showing in the final three months of the year (it's hard to imagine a worse one), but for 2009 as a whole Powers sees sales around 10 million, a three million or so drop from last year's.
The financial sector, despite its return to investor favor, also provided an unwitting reminder that banks and their kin are by no means entirely out of the woods. The Shared National Credit Program, which is a review worked up by the whole regulatory gang — the Fed, the FDIC, the Comptroller of the Currency and the Office of Thrift Supervision — reported (and there wasn't a dry eye among them) that losses from syndicated loans are in the process of tripling this year, to $53 billion, as credit quality of such loans suffered a record deterioration.
The market, while it didn't exactly shrug off these negative items, as it has been wont to do, kept its composure. Losses for the most part were contained, and although declines consistently outweighed advances as the averages gave ground, on Friday at least, a sizable number of stocks bucked the trend.
So far, the retreat seems nothing than a modest pause, while the bulls catch their breath. But we stress the "so far."
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Amid Market Highs, More Worries It's a 'Junk' Rally - Smart Money - September 21, 2009
Stocks stretched to 2009highs last week, but market experts remain divided over the sustainability of the rally and the pace of economic recovery. Despite Fed Chairman Ben Bernanke's pronouncement that last year's collapse of Lehman Brothers "sparked a deep global recession, from which we are only now beginning to emerge," the fledgling recovery's health and endurance continues to provoke sharp debate among economists and market strategists.
The terminology is now familiar to even the most economically unschooled reader: "Jobless recovery," "unsustainable rally," "cyclical upturn" and "V-shaped recovery" are the stuff of routine headlines, but the meaning and importance of new data and recent market surges reveals a significant split.
Bulls say we are headed back to growth, while bearish types credit the plethora of government stimulus programs for altering conditions to the point where investors don't know the difference between real growth and a federal spending bubble.
Yardeni Research chief economist Ed Yardeni, once one of the financial commentariat's more bullish voices, reckons it's somewhere in between. The “cash for clunkers” program helped auto and industrial production, and the $8,000 tax credit gave home buying a boost, but neither is a long-term solution. Still, Yardeni told clients Wednesday that stimulus has provided a spark. It won't be a blazing path to growth, but "real GDP growth won’t peter out next year, though it should be lackluster around 2%."
"We’ve managed to muddle along before, and we will probably do it again," he wrote Wednesday. "Besides, we always fret about the sustainability of recoveries, yet they usually do become self-sustaining and don’t require any additional government stimulus programs. In other words, business cycle history suggests that Muddling Along is more likely than Petering Out, in my opinion."
The keenest observers point out that market behavior is linked to economic conditions, but not always in the manner small investors would expect. Gluskin Sheff chief economist and market strategist David Rosenberg looked at the market rally since its March lows, and doesn't see the small investor playing a major role. Never before has the S&P 500 rallied 60% from a low in so short a time frame as six months, he pointed out Thursday. Nor has the index rallied 60% during a period with 2.5 million job losses.
"So who’s doing the buying?" he asked. "Very likely it is still a combination of program trading, short coverings and portfolio managers desperately trying to make up for last year’s epic losses."
That's prompted professional investors bent on keeping their jobs and their hides to continue buying a broad range of rising stocks on momentum, with little option to hold out for fundamental indicators of growth. Barclays Capital quantitative strategist Matthew Rothman wrote Thursday that "we continue to believe that the current rally is largely a 'junk rally' with poor quality outperforming, leading the market higher."
Regardless of whether the recent economic upticks are sustainable, stronger-than-expected or weaker-than-they-look, investors face a stark choice. Satya Pradhuman,a quantitative strategist at Cirrus Research, thinks it's time to sell, as government-rooted stimulus has pushed the market ahead of the recovery, and on Tuesday, wryly noted that "history shows that such optimism portends a heightened risk of disappointment in the coming months and quarters."
But perhaps it's better to be profitable than right, Richard Ross, global technical strategist at Auerbach Grayson, wrote Thursday. "Markets around the world have extended their gains in the face of persistent skepticism and incredulity and appear poised to continue their run. While it may seem counterintuitive, my analysis suggests that the technical backdrop for stocks is actually improving even as prices move higher," he wrote. "The absence of any real selling pressure, lack of unbridled euphoria, recent rotation into higher-quality industrial names and healthy degree of skepticism is the signature of a market which wants to move higher."
In other words, this wave keeps rolling, but investors should watch out for a sudden break and rocky shoals.
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How to Invest in Toxic Assets - Smart Money - September 21, 2009
TO JUDGE BY THE PAST 18 MONTHS, the government’s meddling in the markets has produced plenty of ups and downs. But now the feds are serving up a potentially lucrative investment opportunity aimed right at John Q. Public. With a handful of big fund companies, the government is heaping incentives on investors willing to take a flier on some of those gnarly mortgage-backed securities. Make no mistake, says Morningstar analyst Michael Herbst, this is no government handout. Is there money to be made? Maybe. Is it risky? Definitely.
Like all things bailout-related, the Public-Private Investment Program (PPIP, pronounced pee-pip) is part policy, part politics. Its explicit goal is to create a market for mortgage-backed securities, the sliced-and-diced packages of home loans that basically stopped trading when the housing market crashed. Why does the government care? Well, those frozen securities are gumming up the works at the banks that are left holding the bag. If they can’t sell those bonds, they can’t make loans: no mortgages, no commercial loans, no small-business lending. So to entice investors, the government concocted what’s basically a matching grant and chose nine asset managers to participate. For every dollar those managers attract from investors, the government will invest a dollar and lend one more. So if a firm raises $500 million, the government will add $500 million and lend another $500 million. Presto: $1.5 billion to grease the mortgage-backed securities market.
Now the politics. Most experts agree that institutions and millionaires are the obvious investors for a pool of securities that’s risky, illiquid and requires a long holding period. But creating a program with the potential to make more money for the already wealthy won’t play at election time. So the government has encouraged the asset managers to open the door to retail investors. BlackRock has already registered a closed-end fund (a mutual fund with a limited number of shares) that will invest in PPIP assets; other firms are considering creating real estate investment trusts (REITs) to do the same. (The firms declined to comment, citing a quiet period.)
For individual investors, the chance to invest alongside the federal government isn’t a slam dunk, Herbst says. Closed-end funds, like the one BlackRock will offer, don’t always reflect the value of the underlying investments. The securities could lose money, and these kinds of complicated mortgage-backed securities don’t fit easily into a natural allocation of fixed income or alternatives. So if you’re tempted, take a small bite, experts say. Or just take heart-—with the Treasury as a coinvestor, profits should return to the taxpayer eventually.
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What NFL Players Can Learn from Steve McNair - About.com - September 21, 2009
About.com guide to beginner's investing, Joshua Kinnon, wrote earlier today, 78% of NFL Players Bankrupt or In Financial Distress Within 2 Years of Retirement.Even though Steve McNair appears to have...
Is the Needle Rising on Natural Gas? - Smart Money - September 11, 2009
In World of Cheap Gas, Williams Hikes Profit Forecasts
Natural gas prices are down nearly 80% from their peak last year, and energy companies are predicting that prices will stay low this winter, which should help homeowners cut their heating bills. But the big natural gas producer Williams Companies(WMB) liftedprofit forecasts today for the remainder of 2009 and said it expects "sharply higher profitability" over the next two years, as prices for energy commodities strengthen. The firm predicts adjusted earnings of 80 cents to $1.90 a share next year, which could easily top Wall Street’s forecast of $1.24 a share. By 2011, Williams expects to be approaching the "record-level earnings" of 2008.
Why the upbeat outlook? Williams seems to be betting that prices for agricultural commodities will improve with a global economic rebound. Natural gas is a big raw material of fertilizer, whose prices have plunged in the recession. But fertilizer prices could start to rise as demand for U.S. crops picks up. Williams is also ramping up its pipelines to tap fast-growing markets for heating fuel. The firm saidyesterday that it has received federal approval to expand its large Transco pipeline, which will connect supplies to markets in the Southeast, where population growth is robust. Williams has also been boosting its reserves — always a good thing for an energy company; domestic and international natural gas and oil reserves had risen to the equivalent of 4.5 trillion cubic feet at the end of 2008, according to the company.
Williams’ stock has taken a beating over the last year, falling 38%. But in the last six months, it’s surged 71%, handily outperforming the broader market. Other gas producers have also soared on hopes that the commodities slump is over and that suppliers are learning to adapt to a world of cheap gas. Williams isn’t the only company seeing higher profits in gas. Chevron(CVX) just signeddeals worth $60 billion to supply liquefied natural gas to Japan and South Korea from a big new joint-venture in Australia.
IN OTHER NEWS:
- Central banks in Britain, South Korea and New Zealand left interest rates at record lows today, though analysts said the banks could start tightening in November. LINK
- The agriculture market may be stabilizing, but the world's biggest seed company, Monsanto(MON), saidit expects profits to fall next year as the company spends $600 million on cost cuts. LINK
- OIl futures are up this morning after reports showed declines in U.S. inventories and OPEC left its output quotas unchanged. LINK
Will National Semiconductor Keep Chip Rally Alive?
Tech stocks have bounced sharply this year as demand for handsets, computers and other gadgetry has recovered. That’s been a boon for chip makers too, with companies like Intel(INTC) recently raisingearnings guidance for their next quarter. Yesterday, Texas Instruments(TXN) reiterated the theme, hikingits own revenue and profit forecasts. Today, National Semiconductor(NSM) is scheduled to release earnings for its 2010 fiscal first quarter and analysts will be looking for similarly upbeat comments to keep the rally alive.
At the very least, National Semi probably won’t have as rough a quarter as the last one, when it swung to its first loss in six years and revenues fell 39% to $280 million. The company has taken some hefty charges to restructure and close factories. But Wall Street now expects the firm to post a profit of 7 cents a share this quarter on revenues of $300 million, and it could get a lift from rising demand for wireless handset and smartphone chips, which constitute about a third of sales, says analyst Romit Shah of Barclays Capital(BCS).
The company could beat forecasts, analysts say, because Wall Street has set a fairly low bar. More Wall Street analysts rate it a hold or sell than a buy and view it as a kind of "show-me" story. That's partly because the firm sells chips to a variety of industries, including medical and automotive companies, which have been slower to recover than the PC and wireless equipment industries. But assuming chip demand continues to recover, the stock looks reasonably priced; it trades at a lower multiple than most of its peers, around 15 times estimated 2010 earnings of $1 a share. The company now has a lower cost structure too, and could see margins improve from higher "utilization rates" at its fabrication plants. "Their business has good momentum," says Shah, one of the few analysts on the Street who recommends the stock.
IN OTHER NEWS:
- Home prices could fall by another 25% because of high unemployment, according to banking analyst Meredith Whitney, who says banks are "artificially inflating asset prices." LINK
- General Mills(GIS) saidit expects fiscal first-quarter earnings to top the company's internal projections, calling the results a "strong start" to the year. LINK
- Corning(GLW) saysit expects output of its liquid-crystal-display glass to be better than its reduced expectations. Corning said third-quarter output would fall less than 5% from the previous quarter, compared with its August estimate of a 5% to 10% drop. LINK
Ending Months of Speculation, GM Set to Unveil Opel Decision Today
Things have been looking up for General Motors in the U.S. lately, where the cash for clunkers program has lifted sales and buyers appear to be coming back to dealerships to kick the tires of new cars. But the big news in Europe is that GM has finally made a decision about its biggest problem child in the region: Opel. The company's board has approved a course of action for Opel and will make an announcement today, according to news reports.
Figuring out what to do with Opel has been a soap opera for GM. Acquired in 1929, Opel is GM’s largest brand in Europe, and many of its cars have been the basis for vehicles in GM’s U.S. lineup, like the Saturn Aura and L-Series. But Opel has been hindered by slumping sales and high production costs in Europe, where it employs 50,000 workers. Germany has taken a keen interest in preserving Opel jobs at its four German factories, and the government has provided loan guarantees to keep Opel afloat. However, although suitors have lined up to buy the troubled unit, GM has gone back and forth over whether it will sell. German chancellor Angela Merkel has said the German government would provide $6.6 billion in aid if GM sells Opel to the auto-parts firm Magna. But other suitors have expressed interest, and GM was reportedly trying to line up financing to keep Opel in-house or sell a stake to a private equity firm, RHJ International.
Whatever Opel’s fate, it faces a tough road back to financial health. Europe’s car market is saturated, and Opel has been losing market share, says Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisberg-Essen. Opel’s sales are "weak and getting weaker," he says. GM could also face a tough time in Russia, one of the region’s fastest-growing markets, if it spurns the Magna deal, which has the backing of a Russian bank. Without Russian sales, Opel would be forced to sell models largely in Europe, "the most competitive car market in the world," Dudenhoeffer says. And without Russia in the mix, it will be tough to generate enough volume to stay profitable.
IN OTHER NEWS:
- U.S. house foreclosure filings in August fellless than 1% from July and rose 18% over the same period a year earlier, according to the real-estate research firm RealtyTrac. LINK
- Good new for oil companies: the International Energy Agency raised its forecast for global oil demand by nearly 500,000 barrels a day for 2009 and 2010. The agency cited stronger than expected economic growth in North American and Asian markets. LINK
- The U.S. employment picture will stay ugly through much of 2010, long after the recession ends, but the worst of the labor crisis is over, according to a survey of 52 private economists. LINK
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Is Gold Cheap at $1,000 an Ounce? - Smart Money - September 11, 2009
Even I’ll admitthat gold"feels" high to buy near $1,000 an ounce, only a hair off its all-time-high of $1,030 reached last March. No reason to pay that much, so the thinking goes, better to wait for a substantial decline before adding new exposure.
But referring to the March high as the “all-time-high” fails to take into account that, over time, inflation has eroded the purchasing power of our dollar. Even metals have failed to keep pace, despite their price run-up. To get the actual all-time highs, one must adjust for inflation, which as you can see from the graphs below, using actual Consumer Price Index (CPI) data, suggests most metals are actually at the prices only reached early in this decade -- still quite a ways off from their actual peaks.
To account for inflation since January 1980, gold would have to be trading for more than $2,600 an ounce, almost 175% over today's levels. 
Source: Bloomberg, Rosewood Trading
Silver, which has fallen in price more than inflation has increased, would have had to have averaged $39.60 per ounce in August 2009 to have kept up with its January 1980 price adjusted for inflation.
Source: Bloomberg, Rosewood Trading
Regular readers will remember we highlightedplatinum at $850 an ounce as an undervalued asset last December. The metal averaged $1,250 an ounce last month, but it would had to have averaged $3,440 to match its January 1980 price, in real dollars. It’s peak, in nominal terms, since 1980 was $2,040 in May 2008.
Source: Bloomberg, Rosewood Trading
Palladium, integral in the use of catalytic converters and other automotive systems, is now under $300 an ounce, but would have to have averaged close to $770 last month to match its 1980 price in real dollars. Its all-time nominal high of just under $1,040 per ounce was reached in January 2001 as Russian exports were disrupted. 
Source: Bloomberg, Rosewood Trading
Legendary speculator Jesse Livermore famously remarked how a stock was never too high to buy or too low to sell. Although precious metal prices might "seem" high now, when viewed through the prism of inflation over time, it’s easy to argue many actually have quite a way to run.
How Regulators Helped Madoff
Does the financial industry need greater regulations? Last month we notedhow government regulation actually perpetuates fraud. Normally suspicious and attentive individuals essentially outsource their own due diligence and investigation to the government.
The Securities and Exchange Commision's own reporton the Madoff Ponzi scheme, released earlier this month, confirms that thesis, as no fewer than 25 investors provided sworn affidavits they chose to maintain their accounts, open accounts or reinvest previous funds with Madoff specifically because the SEC had already investigated and examined him.
Said victim Angelina Sandolo: "[I] moved my investment directly to Bernard L. Madoff Investment Securities relying on the SEC's 1992 statement there was no indication of fraud."
Investor Shirley Stone said, "we gave a big sigh of relief when we read and heard that a government agency called SEC said there was no fraud. Since we were so sure that all was well if our government had checked we went directly into Madoff Investment Co... My generation was taught respect and trust for our government".
My point precisely. Why bother asking questions when “experts” at the SEC gave Madoff a clean bill of health?
Madoff himself would inform potential investors of the SEC's investigations as a means of quelling their fears, saying that it bolstered his firm's credibility that it has passed numerous examinations by the SEC.
Far from a benefit, regulation actually perpetuates further harm by disabling the free market's best watchdog: skeptical, self-interestedinvestors with their own cash on the line.
Parting Shot
Rydex, which pioneered the now burgeoning field of currency exchange-traded funds now aims its sights on the alternative investment space with the launch of GetAlts.com, a primer covering the basics, risks and potential rewards.
Source: GetAlts.com
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Why Obama's Speech Is Lifting Health Stocks - Smart Money - September 11, 2009
While it didn't passany legislation, President Obama's nationwide address on health care Wednesday night was a boon to some investors.
The prospects for reform remain uncertain, but investors signaled their own views Thursday by pushing up shares of Wellpoint(WLP), UnitedHealth Group(UNH) and Aetna(AET), the three largest managed care health-insurance providers. Managed-care stocks fell last spring on their decline in profitability and Obama's election. But each company has seen double-digit gains in the last three months as the prospects for a large government insurance program diminished. Obama’s address Wednesday didn’t change investor’s sentiment.
Thursday's stock price moves in managed care show how deeply policy speculation has affected health-care companies, and demonstrate that the market believes that some form of health-care legislation will pass. While pharmaceutical manufacturers, medical device makers and clinical laboratories could also be affected, particularly under a plan championed by Senate Finance Committee Chairman Max Baucus (D., Mont.), the market's been most sensitive on managed-care names.
"Most of the recent fluctuations and variability we have seen – daily moves of 2, 4, even 5% -- have been just on the changing tone of important people out of Washington," Morningstar analyst Matthew Coffina says. "All that volatility has been expanded by speculation around policy."
Whether Obama can exert his will on an increasingly fractious Congress won't be known until Baucus unveils a draft bill, now scheduled for review the week of Sept. 21. Prospects for the bill are far from certain, ISI Group policy analysts Tom Gallagher and Andy Laperriere wrote in a Thursday note.
"Last night President Obama gave a solid speech that we think will likely help his own poll numbers and boost public support for his health-care plan, at least temporarily," they wrote. "It should give the Democrats some momentum in the coming weeks, but we would caution that many of the contentious issues that Obama presented as settled or non-controversial remain tough legislative and political challenges."
But BMO Capital Markets analyst David Shove says the markets now back some kind of reform, and are voting with their wallets.
"The president spoke and the stocks went up," Shove says. "Normally, until recently, when the president has spoken, those stocks went down. Managed care and a lot of health-care names have been trading on [the belief that] reform wins." Coffina says reform talk has acted as a brake, and now that's being released. "Now, on fundamentals, the larger companies are pretty cheap, we think," he says.
Shove says the price-to-earnings multiples of several managed-care stocks could rise from their now-depressed levels once the health-care issue is settled in Congress "[Investors] will go back to the normal three questions: What's the price, what's the cost and how many members are you going to have?" he says.
While managed care pricing is alright, and insurers have adjusted to higher medical costs, the weak economy could soon assert itself on the industry. "Membership is horrible," Shove says. "Because Americans are not working. Also, investment income has dropped. It used to account for about 20% or more of revenue, now it's 10% or lower."
While political deal making continues and Wall Street takes a back seat to Washington, Coffina says investors still have a chance to profit from the health-care debate. "On a valuation basis, based on likely legislative outcomes, we think there's a significant enough margin of safety, especially for UnitedHealth and Wellpoint, that they're cheap enough -- relative to what's likely to happen -- that it's worth the risk."
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Afternoon Pickup Boosts ETFs, Stocks - Smart Money - September 11, 2009
Market Wrap-Up
Stocks solidified afternoon gains Thursday after a slow start to trading.
Most exchange-traded funds climbed or stayed put as investors digested President Obama's national health-care address and a better-than-expected report on new jobless claims.
Major indexes saw little early movement, but the Dow Jones Industrial Average closed up 80 points at 9627. The Nasdaq rose 24 to 2084, and the S&P 500 added 11 points to close at 1044.
Initial jobless claims declined 26,000 to 550,000 in the week ended Sept. 5, the Labor Department said. The four-week average of new claims, which aims to smooth volatility in the data, fell by 2,750 to 570,000 from the previous week's revised figure of 572,750. The national unemployment rate last week was pegged at 9.7%.
In an afternoon address to an oversight panel examining the government's financial stabilization efforts, Treasury Secretary Timothy Geithner said government rescue efforts are trailing off, but won't be stopped prematurely.
"The classic errors of economic policy during crises are to act late with insufficient force and then put the brakes on too early. We are not going to repeat those mistakes," Geithner said in testimony before the Congressional Oversight Panel.
For a detailed rundown on Thursday's trading session see our market story.
Winners
The Claymore/MAC Global Solar Energy Index fund(TAN) climbed 4.1% following news that major holding First Solar(FSLR) planned to build a large plant in China. The SPDR S&P Oil & Gas Exploration & Production fund(XOP) rose 3.1% after the International Energy Agency increased energy-demand forecasts and OPEC kept production quotas unchanged.
Losers
The iPath Exchange Traded Notes S&P 500 VIX Short-Term Futures Index(VXX) dipped 4.0% as major indexes took a midsession upward swing. The PowerShares DB US Dollar Index Bullish fund(UUP) slipped 0.3% as rival currencies gained in value.
Friday’s Notebook
Earnings and Conference Calls
Brady Corp., Campbell Soup
Economic Data
8:30 a.m. Import and Export Prices
9:55 a.m. Consumer Sentiment
10:00 a.m. Wholesale Trade
2:00 p.m. Treasury Budget
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3 Small Companies With Blazing Sales Growth - Smart Money - September 8, 2009
Earlier this monthI ran a search for companies that have growntheir sales quickly over the past year even as most companies’ sales have declined. I confined the results of that screen to large companies. Below are some small ones that are growing even faster.
The names might not be familiar to readers since all of these companies have stock market values below $1 billion. But each is plenty profitable and recently reported quarterly sales that jumped at least 20% from a year ago.
Health Grades
Market Value: $133 million
Projected sales growth in current fiscal year: 31%
Based in Golden, Colo., tiny Health Grades(HGRD) provides patients with consumer information on doctors, hospitals and nursing homes, complete with ratings from other patients. Visitors to HealthGrades.com can look up basic information on their doctors in exchange for providing their own opinions. (My doc is rated a fine physician with a dreary office and surly staff — spot on.) For $13, they can purchase a more detailed report. Health Grades also receives fees from hospitals for marketing services, which help them to boost admissions of insured patients. For now, hospitals provide more of the company’s sales than patients, but sales from patients are growing much faster. With lawmakers debating broad changes in the way Americans pay for and receive healthcare, any plan short of nationalization would likely benefit from more consumer information. Shares of Health Grades are up more than 80% this year, but their current price of 20 times earnings seems reasonable considering the company’s growth rate.
K12
Market Value: $548 million
Projected sales growth in current fiscal year: 26%
Every child should learn, but not all of them should go to school. Students who learn especially fast or slow might find classrooms boring or frustrating. Sick kids need special care at home. Child actors and entertainers must travel. Headquartered in Herndon, Virginia, K12(LRN) provides online high school courses for home-schooled kids in these situations and others. Parents monitor work closely for kindergarten through eighth grade after which students are expected to develop more independence. In the nearly half of American states that have approved K12’s curriculum and materials for use in online public schools, students can enroll for free. Applications are pending in more states. Worldwide, students can pay to enroll in K12’s own online school. Shares are ambitiously priced at 30 times earnings, but few companies are adding customers in the current recession as quickly as this one.
InterDigital
Market Value: $937 million
Projected sales growth in current fiscal year: 32%
Over the past two months, InterDigital(IDCC) shares have climbed from $23 to $31 and fallen back to below $22. The company licenses technology to cellphone makers that allows for high-speed data transfer, and the stock’s run-up is owed to blazing sales growth. The tumble relates to an International Trade Commission ruling that Nokia has not, as InterDigital had claimed, infringed on its patents. InterDigital is appealing. Analysts say a review of the ruling is likely and that more than 40% of such rulings undergo later revision. A partial win for InterDigital could ban U.S. imports of Nokia “3G” handsets. More likely, Nokia and InterDigital might settle on a licensing deal. Even without such a deal, the stock seems a bargain. The company holds $6 a share in cash and should receive another $3 a share in payments from Samsung next year. Shares are trading at less than 14 times forecast 2009 earnings.
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Want Growth? Get Ready for the Slow Lane - Smart Money - September 8, 2009
T. S. Eliot dubbed Aprilthe cruelest month — but some economists and market-watchers say September will be no picnic either.
The early days of the month have already seen the market rally fizzle as many pundits trotted out the conventional wisdom that September is a tough month for stocks. There have been some bright spots as well, but many expect the recovery to be measured in small increments.
Stuart Hoffman, chief economist at PNC Financial Services Group, called Friday's job figures a hangover from the recession, which is just about over but will leave us with lingering effects for some time. Though traders focused more on the good news — the slowing pace of job losses — overall national unemployment hit 9.7%, a level not seen since June 1983.
"The payroll employment survey continues to show signs of 'improvement' as the net monthly job loss for August totaled 216,000 workers; the smallest monthly job loss in a year, but it is still a significant job loss nonetheless," he wrote on Friday.
That's putting the brakes on real recovery, Gluskin Sheff chief economist and strategist David Rosenberg wrote on Friday.
"The fact that 65% of companies are still in the process of cutting their staff loads is quite disturbing — even manufacturing employment fell 63,000 in August, to its lowest level since April 1941, despite the inventory replenishment in the automotive sector and all the excitement over the recent" improvement in the ISM manufacturing index, he said. "Until we see signs of a sustained turnaround in the jobs market, all bets are off over the sustainability of any economic recovery."
That will keep markets choppy, and investors may do themselves a favor sitting on the sidelines now and then, said J.P. Morgan strategist Thomas Lee. In a Thursday note, he took a look at stock performance data for September and found that September selloffs historically do their worst damage in the early part of the month.
"It turns out that if an investor waited until Day 6, the likelihood of realizing positive returns for the month jumps from 44% to 54%. Day 6, as it turns out, is Sept 9," he said. He also said fewer S&P 500 companies have issued negative earnings warnings for the current quarter than any point since 1997, which indicates corporations are at least adjusting to new internal expectations after long periods of cost-cutting.
Steven Charest, market strategist at Divine Capital Markets, wrote on Aug. 31 that the recent rally has more technical than fundamental underpinnings, and while it has probably overheated, that could continue into this month.
"Long term, the secular bear market appears intact," he wrote. "Sentiment however continues to drive the intermediate-term bear market rally to extended levels. While the market rally is extended, third quarter window dressing provides a strong case for price continuing into overbought territory."
It can't continue, but it may not come crashing down all at once, counsels Jeffrey Kleintop, chief market strategist at LPL Financial.
"So much of the news of the recovery is now priced into the market that with the S&P 500 hovering around 1025, the continuing run of better-than-forecast data is having only a limited impact," he wrote on Aug. 31. "The market appears to have become saturated with good news and is beginning to show signs of fatigue after rising 52% above the closing low of March 9, 2009."
Kleintop’s prediction of a period of market consolidation — similar to the S&P 500's two-month stretch around 900, which ran from mid-May to mid-July — doesn’t anticipate sharp moves but rather sees it as part of a larger process of mental readjustment. That could be a long process, cautioned Pimco bond guru Bill Gross in his September Investment Outlook.
The combination of delevering, deglobalization and reregulation "means that if you are a child of the bull market, it’s time to grow up and become a chastened adult; it’s time to recognize that things have changed and that they will continue to change for the next — yes, the next 10 years and maybe even the next 20 years," he wrote. "We are heading into what we call the New Normal, which is a period of time in which economies grow very slowly as opposed to growing like weeds," where profits are relatively static; and where the government plays a significant role in terms of deficits and reregulation and control of the economy.
Most importantly, it promises to be a period in which consumer stop shopping until they drop and begin to start saving — a prudent outlook that takes some getting used to.
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Estate Planning Don'ts: #5 - Don't Over Plan Your Estate - About.com - September 8, 2009
This is the fifth in my series of estate planning "don'ts" - lessons that I have learned during my 15 years of practice as an estate planning attorney. Next up...
Are the Bulls Heading Toward a Cliff? - Smart Money - August 31, 2009
Investors' hearty appetitefor any good economic news is filling the stock market with the equivalent of empty calories. Our pundits say that the economy is indeed improving on a slow and incremental basis, but they also warn that the path to stability and the path to growth are getting conflated in a classic bear market rally.
Stocks tailed off a six-day winning streak to sputter at the end of the week, which was marked by an uptick in existing home sales and new housing starts and a decrease in the number of new jobless claims. However, consumer spending showed little upward movement, nationwide unemployment remained at 9.4% for July, and Friday saw the worst reading of the Reuters/University of Michigan survey of consumer sentiment since April.
In short, the recovery will have a long, choppy beginning, said Strategas Research Partners chief economist Don Rissmiller. "There has been a cyclical bounce in productivity, which is normal for the beginning of a recovery," Rissmiller wrote in an Aug. 23 note. "Given enough cost cutting, firms can become profitable for a while. If we're going to see sustained gains, however, investment likely has to pick up considerably."
What's happened in the stock market is an overeager buying spree. It's been encouraged by investors who want positive earnings numbers created by severe cost cuts to serve as a substitute for real growth, and that simply isn't sustainable in the short term.
Morgan Keegan economist Donald Ratajczak raised the question of what happens when the benefits of massive government stimulus plans fade. They've been a factor in many of the positive economic data that's fueled the recent stock rally, from the Cash for Clunkers auto rebate program that ended on Aug. 24 to the homebuyer tax credit incentive set to expire in November.
"While I don't want to discourage investors, about half this full bull run probably already has been completed," Ratajczak wrote in an Aug. 24 note.
For Ed Yardeni, president of Yardeni Research, this recovery drama is familiar -- and it's still in its first act. The economy usually gets out of recessions once inventory liquidation has run its course, he says, after production is cut ahead of declining sales.
"Sales stop declining, and then start rebounding usually in response to stimulative monetary and fiscal policies," Yardeni wrote on Thursday. "During the recession, businesses also slash employment and capital spending. Such cost cutting tends to boost profit margins. It doesn’t take much of a rebound in sales to trigger a revival in corporate profits, which then stimulates a cyclical upswing in business hiring and spending."
John Challenger, CEO of global outplacement firm Challenger, Gray & Christmas, doesn't see the hiring upswing happening tomorrow but said unemployment will decrease as part of a "slow crawl toward economic recovery."
"While it is too soon to expect a massive hiring binge that will move some of the nearly 20 million jobless Americans back onto payrolls, the pace of job cuts is likely to continue its downward trend," Challenger said on Wednesday.
For some longer-term perspective, Gluskin Sheff chief economist David Rosenberg put the recent market surge in context.
"We are now five months in this bear market rally, and up 50% on the S&P 500, and yet the big picture reality is that the S&P 500 is no higher today than it was on February 18, 1998," Rosenberg wrote on Thursday. "Even with this flashy 50% rally and whatever dividend you reinvested, the total return in the S&P 500 since December 1998 is almost, to the second decimal place, 0%."
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State Estate &Inheritance Taxes Too - Everyday Estate Planning - August 31, 2009
At the moment, almost all of us don't have to worry about paying federal estate taxes at death. That's because the first $3.5 million of our estates can pass to our heirs tax free. Scheduled to expire in 2010, this limit is likely to be extended by Congress for at least another year and most experts think it is unlikely to be reduced significantly over the next few years.
But here's a new wrinkle--until 2005 most states collected a share of the federal estate taxes collected. But when that 'pick-up' tax expired, they began imposing estate taxes of their own to make up for that lost revenue.
Currently, 16 states and the District of Columbia impose their own separate estates taxes. And several states (Indiana, Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania and Tennessee) also impose an inheritance tax. This falls on those who receive the money when someone dies. And, in many instances, the limit for tax-free transfers for both state tax regimes is less than that federal limit. Which means it's possible for an estate to be free of the federal estate tax while being subject to state estate tax or inheritance taxes.
So, for those doing estate planning in these states, make sure to consider the state angle when considering the probable taxes your heir may face.
Value Stocks That Still Work - Forbes - August 26, 2009
A stock seems cheap because a few of its ratios look good, but many times it gets even cheaper. Here's how to spot true value.
Five Cheap Growth Stocks - Forbes - August 26, 2009
We found five firms with shares valued modestly relative to prospects for profit growth.
Back to School: How To Pay For College As An Adult - Forbes - August 26, 2009
Adults can qualify for certain grants and job retraining programs.
Gold Miners Investing For Extended Bull Market - Forbes - August 26, 2009
In a vote of confidence for gold, Barrick and others are investing billions to bring new supplies of gold to market.
The King Crushes It - Forbes - August 26, 2009
He might play second fiddle to a clown in the battle of the burger joint mascots, but today the king celebrates.
Stock Picks: BIG Up; MTW Down - Smart Money - August 26, 2009
Big Lots Offers Big Savings and Big Earnings Beat
Close-out retailer Big Lots(BIG) scored a big earnings beat Tuesday as cost-cutting measures and a cheaper real estate market allowed it to boost its fiscal-year outlook.
The Columbus, Ohio-based company reported earnings of 34 cents a share, up from 32 cents a share a year earlier. Wall Street analysts, on average expected 30 cents a share. Same-store sales dropped 2.4% for the quarter. Nevertheless, Big Lots increased its full-year earnings forecast by seven cents, to a range of $1.92 to $2.02 a share.
Chairman and CEO Steve Fishman said Tuesday that the recession was a challenge even for Big Lots, which discounts merchandise it buys as unsold inventory from other retailers. The chain was operating in "an economic backdrop for the customer that is significantly more challenging than it was a year ago," he said on a conference call.
Wedbush Morgan analyst Joan Storms said in a note Friday that new management was emphasizing "a higher level of accountability throughout store operations, including on store presentation and recovery."
Keith Housum, a real estate analyst at Northcoast Research, said Big Lots was able to negotiate lower lease rates on one-third of its store renewals at the end of last year, helping pare expenses. The remaining leases saw smaller-than-expected increases, he said.
Bottom Line: Hold
Big Lots has done a great job with cost cuts, but the retailer can't point to organic growth. When even a specialty discounter can't boost sales, the recessionary pinch on the consumer can't be overlooked.
Manitowoc Gets Dumped by S&P 500
Shares of Manitowoc(MTW) fell 8% in morning trading Tuesday after the company was removed from the benchmark S&P 500 stock index.
The Manitowoc, Wis.-based company, which is transitioning to a food-service and equipment company from being a primarily heavy-construction-equipment company, was ranked 500th on the stock index compiled by Standard & Poor's.
In a statementMonday, Standard & Poor's said Manitowoc had a market capitalization below $900 million, and would be removed from the index. Manitowoc will be replaced Aug. 31 by CareFusion, a spinoff of S&P 500 component Cardinal Health(CAH).
Manitowoc's shares have been hit by a variety of factors. Among them: The withdrawal of credit and financing for building projects that have taken a toll on the company's crane business and heavy debts from its $2.7 billion acquisition of British kitchen equipment maker Enodis last summer.
"While we expect cyclicality in the crane business, the speed and severity of this downturn have been worse than we have seen in the past," said CEO Glen Tellock last month.
The company's removal from the S&P 500 will force index funds to sell off about 12 to 14 million shares, driving prices down in the near term, Sterne Agee analyst Ben Elias says.
"There's going to be some pressure," he says. "But the reasonable perspective here is – do not refer to it as a crane company. Refer to it as a food-service company."
More than half of future earnings will come from selling food-service equipment, he says, and its crane business should also pick up as construction activity comes off a bottom. "Food service is a pretty stable business," Elias says. "And the decline in crane demand is due to a lack of financing and credit, not a lack of demand for the actual product."
Bottom Line: Buy
This is short-term overselling, creating a bargain price on a company that's smartly moving from girders to burgers.
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Burger King Beats Fourth-Quarter Views - Smart Money - August 26, 2009
Burger King Profits Rise But Company Issues Tepid Outlook
Fast food chains have been big hits with cash-strapped consumers, with companies like McDonald’s(MCD) bucking the slowdown in consumer spending. Burger King’s (BKC) sales have also been rising, though not as much as those of McDonald’s. And the company reportedtoday that fiscal fourth-quarter earnings hit 43 cents a share, up from 37 cents a year ago. That beat Wall Street forecasts of 33 cents a share. But the sales trend could be turning for the big burger chain. Sales fell 2% to $630 million. And profit margins were down due to rising commodity costs. The company wasn’t very optimistic about the next fiscal year either, declining to forecast earnings and saying it expects a “challenging consumer environment.”
Burger King's earnings report wasn't a surprise, though, confirming trends already evident with other fast-food companies. Burger King's largest franchisee, Carroll’s Restaurant Group(TAST) had reported similar results, along with rivals like Jack in the Box(JACK). Wedbush Morgan analyst Rachael Rothman said in a note yesterday that she expects same-store sales to be weak in the U.S. and Latin America and forecasts Burger King’s European results taking a hit because McDonald’s has been gaining share in the region. Still, Rothman raised her price target on the stock by $1 to $19 a share, arguing that Burger King shares are undervalued compared to McDonald’s and Yum! Brands(YUM). Burger King recently traded at 12 times estimated fiscal 2010 earnings of $1.55 a share, compared to a multiple of 13 for McDonald's and nearly 15 for Yum! Brands.
Housing Market in Spotlight
Traders have seen signs that the housing market is stabilizing, and housing stocks could see heaving trading today, following a couple reports on house prices due. The Standard & Poor's/Case-Shiller home price index comes out today and analysts expect it to show that prices in 20 large metro areas fell 16.4% for the 12 months ended in June, down from a 17.1% year-over-year decline in May. The Federal Housing Finance Agency's index of June home prices is also due out, along with a report on second-quarter housing prices. Analysts expect the June index to show that prices are stabilizing too. And it presents a broader snapshot of the country than the Case-Shiller index (though it doesn’t include some types of mortgages that aren’t eligible to be bought by Fannie Mae(FNM) or Freddie Mac(FRE)).
Of course, analysts caution that traders shouldn’t read too much into one month’s housing data. The sector is still seeing a rising tide of foreclosures. Banks are grappling with billions in losses on bad loans, and are keeping a tight leash on lending. Although sales of existing homes rose sharply in July, economists say that prices will keep falling as long as foreclosures are on the rise.
Last month, more than 360,000 homeowners were foreclosed, up more than 30% since last year. And lenders are balking at modifying home loans to bail out homeowners under a government modification plan. Also, the average homeowner has lost 15% of the value of his house, and millions of homeowners now have “negative equity,” owing more than their homes are worth. In other words, even if prices show a slight uptick, there are still plenty of headwinds that could keep the housing market down.
IN OTHER NEWS:
- The government releases new projections for the federal budget deficit this morning and analysts are forecasting a steep rise in the government's debt. Administration officials have already said they expect another $2 trillion will be added to the government's 10-year deficit forecast, bringing it to around $9 trillion. LINK
President Gives Bernanke Big Vote of Confidence But Traders Shrug
Growth has stalled, unemployment is rising and budget deficits are soaring. Sure, things are a mess. But Federal Reserve Chairman Ben Bernanke looks poised to get another crack at mending the world’s largest economy. President Obama has decided to nominate Bernanke to a second four-year term, according to news reports, with an announcement expected today at 9 a.m. White House chief of staff Rahm Emanuel said the president credits Bernanke for "pulling the economy back from the brink of depression," The Wall Street Journal reported. The full Senate must approve the nomination, but Bernanke is widely expected to make it, though he could face a grilling for some of his policies.
Bernanke has won widespread praise for his rapid-fire efforts to stabilize the economy that drew on every move in the Fed’s playbook. He lowered interest-rates to near 0%; flooded banks with liquidity; oversaw bailouts of financial institutions; and took unorthodox steps like having the Fed buy mortgage-backed securities. As an economics professor, Bernanke wrote extensively about the causes of the Great Depression and the mistakes policy makers made, and he seems determined not to repeat them. He’s also attempted to make Fed policy more transparent and, unlike his predecessor Alan Greenspan, he has reached out to the public to explain his decisions in plain English.
Of course, now that the crisis has ended, Bernanke faces a tricky balancing act. The U.S. economy is showing signs of life thanks to massive government stimulus effort and a highly accommodative monetary policy. The trick will be figuring out how and when to take away the punch bowl. Go too slow on hiking interest rates and tightening the money supply and Bernanke risks soaring inflation and a spiraling U.S. dollar. Go too fast and he risks choking the recovery before it really takes hold. Traders don’t seem surprised that Bernanke is being renominated. Markets in Asia ended the day down and European stocks fell as traders worried that the world could face a double-dip recession after government stimulus programs pull back.
IN OTHER NEWS:
- Office-supply retailer Staples(SPLS) reported second-quarter earnings of 16 cents a share, matching Wall Street estimates. Sales rose 9% to $5.5 billion and the company saidit's on track for $300 million in annual savings related to its acquisition of Corporate Express. LINK
- Former Fed Chairman Paul Volcker, now an advisor to President Obama, said that money-market funds could be weakening the financial system and should be regulated more like banks. LINK
- General Motors may scrap plans for a German bailout of its Opel division and may keep the carmaker in-house, according to news reports Tuesday. LINK
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Rally Resilient as Stocks Stay Steady - Smart Money - August 26, 2009
News at a Glance
- Bernanke Back: Fed Chair to get new term.
- Housing Hopes: Case-Shiller sees smallest drop in 14 months.
- Burger Beat: Burger King earnings strong.
- Oil Roils: Crude drops below $72 a barrel.
The Lowdown
Stocks moved off their highs but retained some gains Tuesday. While President Obama's nomination of Federal Reserve Board Chairman Ben Bernanke to another four-year term took headlines, investors were also cheered by news that housing prices continued to slow their decline. In afternoon trading, the Dow Jones Industrial Average briefly passed 9600, a 10-month high.
The Dow Jones Industrial Average rose 30 points to close at 9539. The Nasdaq climbed 6 points to 2024 and the S&P 500 closed up 2 to 1028.
The S&P/Case Shiller home-price index for June dropped 15.4%, the lowest decline since April 2008.
The Conference Board reported that U.S. consumer confidence rebounded in August, especially regarding expectations for the economy six months from now. RELEASE
The Bernanke announcement, made Tuesday morning, signals Obama's own vote of confidence to the Princeton economist and scholar of the Great Depression. White House Chief of Staff Rahm Emanuel said the President credits the Fed Chair "for pulling the economy back from the brink of depression," according to news reports. Bernanke must be confirmed by the Senate, which is expected to pass the measure.
"I don't think the market is at all surprised. Why would you switch horses midstream with the expert of the Great Depression and the Japanese lost decade?" said Robert Howe, founder of Hong Kong-based Geomatrix.
Overseas, Chinese Premier Wen Jiabao on Tuesday cautioned against being "blindly optimistic" about the country's economic recovery, saying the boost from short-term policies may fade, while longer-term policies will take some time to have an impact.
On the corporate front, Burger King Holdings (BKC) rose after the fast-food chain topped analyst earnings forecasts.
Overseas, the Shanghai Composite closed 2.6% lower, while Europe stocks nursed slight losses in late morning trade. Oil futures, after hitting a 2009 high on Monday, edged lower, and the dollar index fell slightly.
Oil prices ebbed as stocks moved off their peak. On the Nymex, as of 4:03 p.m. the benchmark front-month October contract for light, sweet crude traded 18 cents at $71.87.
Corporate News
- General Motors(GM) was back in the spotlight on reports it was seeking alternatives to German government financing of a takeover of its European-based Opel arm. Germany is reported to favor an Opel buyout led by Canada's Magna International (MGA), while GM's board is more receptive to an offer from investment group RHJ International S/A.
- Manitowoc(MTW) fell after being kicked out of the S&P 500.
The Economy
- Chain store sales rose 0.6% for the last week, according to the ICSC-Goldman Sachs weekly index. Sales for August are forecast to be down 3.5% to 4.0%. REPORT
- The Conference Board's index of consumer confidence increased to 54.1 in August from a revised 47.4 in July, a figure originally reported as 46.6. The latest far exceeded economists' expectations of 47.0.
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Does Consumer Confidence Really Matter? - Smart Money - August 26, 2009
So much for thedog days of August. According to the latest consumer confidence data from the Conference Board, consumers are feeling less depressed, thanks to an improved outlook on the economy and, yes, jobs.
This month's reading on consumer sentiment, which surveys folks' feelings about the current and future state of the economy, not only rose, but came in well ahead expectations. The Conference Board said the Consumer Confidence index climbed to 54.1 from 47.4 in July, beating economists' average forecast of 47.5 by a wide margin, according to Thomson Reuters.
Does this mean consumers, the bedrock of the economy who drive 70% of gross domestic product, will start shopping again? Well, don't hold your breath. Any short-term boost in confidence doesn't automatically mean people feel more confident about opening their wallets.
"Consumer confidence tends to track the labor market more closely than any other indicator," says Carl Steidtmann, chief economist and director of Deloitte Research. "We have seen some improvement in unemployment claims, so people aren't as depressed. But the number is still pretty low. We're not suddenly becoming euphoric."
The 54.1 index reading is pretty low -- anything below 90 is indicative of an unhealthy economy. But at least it appears to be headed in the right direction -- and for the right reasons: Consumers are a little less worried about losing their jobs and some are even finding it easier to find work.
From May to July, job losses averaged 331,000 a month, according to the Department of Labor, nearly half the average loss rate from November to April. Thursday's report on initial jobless claims is forecast to come in a 565,000, down from last week's 576,000. Meanwhile, unemployment ticked down to 9.4% in July from 9.5% in June.
As bad as the labor market remains, it appears that consumers are starting to feel the difference. But feeling it and doing something about it are two entirely different things when it comes to consumer spending. Economist expect a slight increase in personal spending figures for July, which are slated to be released on Friday, but say those gains will have little to do with confidence and more to do with a few pockets of strength -- namely the government's "cash for clunkers" program, which temporarily boosted spending on autos.
"You can't use consumer confidence to predict spending from month to month," Brusca says. "And I'm not going to pretend this bounce-back means anything great. But over broad periods consumer confidence is very important to spending. And now it's giving us a little bit better picture."
One recurring problem with consumer confidence surveys like that of the Conference Board or the Reuters/University of Michigan Consumer Sentiment Index due out on Friday is that consumers often say one thing but do another, says Michael Niemira, chief economist and director of research for the International Council of Shopping Centers.
And, right now, consumers are socking cash away. The personal savings rate stood at 4.6% in June -- a drop off from the 6.2% rate reported the previous month-- but still well above the year-ago rate of 3.5%. Meanwhile personal spending tumbled 1.2% in the second quarter.
"It's always hard to line up consumer confidence and spending but it does appear that confidence has been stronger," he says. "What's far more important is to see this improvement continue, because presumably as the economic news gets better, confidence starts to build up."
And eventually those sustained improvements in confidence should get consumers spending again, says Brusca. "The confidence number was all about the rise in expectations," he says. "But it hasn't given us a 'go' sign yet."
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Estate Planning Do's: #8 - Review Your Estate Plan Regularly - About.com - August 26, 2009
This is the eighth in my series of estate planning "do's" - lessons that I have learned during my 15 years of practice as an estate planning attorney. Next up...