Posts belonging to Category Stocks



Regulators Remain Concerned about the Impact of ETFs on Market Volatility

 

The Securities and Exchange Commission and regulators in the United Kingdom have been investigating exchange traded funds for some time. Part of those investigations are now reportedly focusing on a situation called “settlement fails,” which occurs when trades are not completed on time. Although most exchange traded fund trades have seven days to clear or […]

Corporate Bankruptcies Expected to Increase

 

An increase in corporate borrowing costs and Eastman Kodak’s recent bankruptcy filing have set off a round of speculation about whether it is the start of a growing trend in corporate bankruptcy filings. While Chapter 11 bankruptcy filings have been falling since 2009, George Putnam of BankruptcyData.com is expecting an uptick in corporate bankruptcy filings. […]

More Investors Avoid Stocks – Demand for Equities Drops

 

The dynamics of equity investing are changing and investors need to consider these changes when making investment decisions. Investors have pulled over $400 billion out of equity mutual funds since 2008, resulting assets of some of those funds being cut in half. Money has flowed into bond funds, but even more money (eight times as […]

Investor Demand for Equities is Waning

 

A report issued by the McKinsey Global Institute forecasts that investor allocation to equities worldwide will drop from 28 percent in 2010 to 22 percent in 2020. (“Equities Losing Appeal in Global Financial System,” InvestmentNews).

Investment Corruption Reportedly Reaches the Highest Levels of Government

 

A recent Bloomberg Markets Magazine article raises troubling questions about investment corruption at the highest levels of government. In July 2008, as market fears mounted, Treasury Secretary Henry Paulson reportedly met with a group of hedge fund managers (five of whom were former officers of Goldman Sachs, where Paulson was CEO), and described a scenario […]

Concerns Rise Regarding Wall Street Banks

 

Fitch Ratings issued a report on November 16 on the U.S. banking sector saying that “the risks of a negative shock are rising” if the effects of European debt crisis keep spreading. (“Fitch’s Warning Spooks Investors, ” Wall Street Journal).

High Correlations Among Asset Classes Means There’s No Place To Hide

 

When world markets move significantly in apparent response to major macroeconomic news, even supposedly “uncorrelated assets” move in unison with them, according to Jason Zweig’s Wall Street Journal article, “Caging Raging Contagion.” Such a significant move occurred last week when the Italian government and bonds collapsed over its fiscal problems, and everything else fell, too.

Investors Have Few Attractive Investment Opportunities at Present

 

“[I]nvestors face a perfect storm ? risky assets priced to achieve dismal long-term returns (except in comparison to equally dismal alternatives), coupled with the risk of an oncoming recession,” according to John Hussman (“John Hussman: Nearly every asset class set for ‘miserably low’ returns,” InvestmentNews).

Audit Problems Finally Come to Light – Who Can You Trust?

 

Major accounting firms that are supposed to perform audits on big banks and other public companies may have played a role in creating the credit crisis. The Public Company Accounting Oversight Board (the “Board”) found evidence that at least one of the Big Four firms routinely performed flawed audits on banks. According to a harshly […]

Wall Street – Still Putting Lipstick on Pigs

 

The herd mentality of brokerage firm analysts often plays a substantial obstacle to successful investing according to neuroeconomist and behavioral finance presenter Barry Ritholz, CEO of Fusion IQ and author of The Big Picture blog.