Rent vs. Buy: Not A Slam Dunk
This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.
As mortgage rates drop to the lowest level this year (and pretty close to historic lows), you may be thinking that you absolutely, positively must buy something NOW.
I'm a big proponent of buying a home when the time is right in your life, but sometimes, renting still makes sense. Check out this conversation from NYC's newest and coolest urban planning project, the Highline.
(CBS)
Jill Schlesinger is the Editor-at-Large for CBS MoneyWatch.com. Prior to the launch of MoneyWatch, she was the Chief Investment Officer for an independent investment advisory firm. In her infancy, she was an options trader on the Commodities Exchange of New York.
A Boffo Day For Stocks: Will It Continue?
This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.
I woke up this morning to find that Asian stocks rallied and European shares are trading higher in the aftermath of the US stock market's boffo performance yesterday. (US stock futures are treading water currently.) I discussed the catalysts for the surge with CBS3:
After a stream of bad news from across the Atlantic, investors found solace when the European Central Bank (ECB) increased its economic growth forecast to 1% for this year, higher than the previous estimate of 0.8%.
Continue »World Markets Upbeat After U.S. Gains
AP
Asian stocks rallied and European shares are trading higher in the aftermath of the US stock market surge yesterday. The catalyst for the move was positive economic data from Europe, China and the U.S. , all of which gave investors confidence that the recovery is on track. The Dow gained 273 points, or 2.8% to 10,172, while the NASDAQ and S&P 500 saw similar gains.
After a stream of bad news from across the Atlantic, investors found solace when the European Central Bank (ECB) increased its economic growth forecast to 1 percent for this year, higher than the previous estimate of 0.8 percent.
Chinese exports grew by 48.5 percent, the most in 6 years, a sign that the fastest-growing major economy will continue to fuel the global recovery. Still, there is a concern that the country is overheating--today, a new report said that China's consumer price index (CPI) rose 3.1 percent in May, to a 19-month high. The government's official inflation limit is 3 percent.
Domestically, there was a tiny bright spot on the nation's employment front. The Labor Department said initial jobless claims dropped by 3,000 to 456,000 last week and continuing claims declined to 4.46 million, the lowest since December 2008.
The Fed reported that U.S. household net worth is now down $11.4 trillion dollars from the peak in 2007, but up $6.3 trillion from the low point in the first quarter of 2009.
Today, the focus will be on the May Retail Sales report, which showed a decline of 1.2% from the previous month. The report was worse than expected, and futures started trading lower upon the release.
Finally, as a government panel doubled the estimated amount of oil spilling into the gulf to 25,000-30,000 barrels a day, investors are watching to see whether BP cuts its dividend.
(CBS)
Jill Schlesinger is the Editor-at-Large for CBS MoneyWatch.com. Prior to the launch of MoneyWatch, she was the Chief Investment Officer for an independent investment advisory firm. In her infancy, she was an options trader on the Commodities Exchange of New York.
GM Swears it Loves "Chevy"
The Chevrolet Volt, or the Chevy Volt, if you prefer.
/ GMThe memo was signed by by GM's vice president for Chevrolet sales and service, and the GM division's vice president for marketing.
Global Stocks Rise On Chinese Optimism
Global stocks are trading mostly higher in pre-market activity, following a lackluster session in the US.
Asian shares gained ground after investors viewed a better-than-expected Chinese export report as a sign that growth would resume after the European debt crisis. And speaking of Europe, stocks firmed after the Bank of England kept its benchmark interest rate at 0.5%, where it has been since March 2009.
Today investors will keep an eye on BP shares, which have lost half of their value since the April 20th oil rig disaster and subsequent spill. Talk of potential bankruptcy increased, though many contend BP has the wherewithal to withstand the financial costs (estimated to be as high as $35 billion) associated with the Gulf spill.
On the economic front, there will be the first release of weekly jobless claims since last Friday's terrible report and investors will absorb the most recent data on foreclosures. RealtyTrac said that April foreclosure filings, which include default notices, scheduled auctions and bank repossessions, decreased 3% from April to 322,920 and increased by less than 1% from a year ago. While down, the number remained above 300,000 for the 15th month.
Finally, there are reports of a new pending SEC investigation into Goldman Sachs. Like the SEC's Abacus case, this one centers on a synthetic CDO called Hudson and was mentioned in this 2009 NY Times article. No charges have been filed. The story comes on the heels of the FCIC's document request.
(CBS)
Jill Schlesinger is the Editor-at-Large for CBS MoneyWatch.com. Prior to the launch of MoneyWatch, she was the Chief Investment Officer for an independent investment advisory firm. In her infancy, she was an options trader on the Commodities Exchange of New York.
Angela Merkel Plays Frau Blucher
This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.
When I can invoke Mel Brooks, it's a good day. Remarks from German Chancellor Angela Merkel reminded me of the legendary character Frau Blucher, (played by the wonderful Cloris Leachman) the much-maligned, truth-speaking caretaker in "Young Frankenstein," who inspired spontaneous neighs from nearby horses.
For years, there was an urban myth that the reason that the horses neighed was that "Blucher" meant "glue" in either German or Yiddish...and you know horses and glue.
Continue »Stocks Fall on Poor Jobs, Europe Bailout Outlook
Federal Reserve Chairman Ben Bernanke testifies on Capitol Hill in Washington June 9, 2010, before the House Budget Committee about the progress of the recovering economy.
/ AP PhotoStocks sagged after a report from the Fed and negative comments from German Chancellor Angela Merkel about the European bailout.
After holding the 10,000 level for most of the day, the Dow lost 40, closing at 9,899. The NASDAQ fell 11 points to 2,158, and the S&P 500 gave up 6 to 1,055.
In her discussion of Germany's 80 billion euro cuts in spending over the next four years, Merkel said that lessons from the debt crisis must be learned. Fears that Europe's largest economy was pulling back underscored investor fear of a European slowdown that could spread globally.
Domestically, Fed Chair Ben Bernanke told a congressional subcommittee that while the U.S. economy should grow by 3.5 percent this year and more next year, the recovery is unlikely to spur enough jobs to put a dent into the unemployment rate or the federal deficit.
Continue »Bernanke to Take Center Stage on Hill
U.S. stocks are trading slightly higher in premarket activity, after a late day rally saved the Dow and S&P 500 from another down day. Yesterday, the Dow gained 123 points to 9939; the S&P 500 was up 11 and a half to 1062, while the NASDAQ lost three points to 2170, on concerns of the tech sector's exposure to the weakening European economy.
Today, European stocks are up, while Asian markets were mixed--the Chinese stock market increased by nearly 3%, but Tokyo was down 1%.
Small business owners are slowly gaining confidence in the economy. The National Federation of Independent Business poll found that optimism among the group rose 1.6 points in May to 92.2, the best reading since September 2008. Still, job creation and capital expenditure remained mired at recession levels.
Today, Fed Chairman Ben Bernanke takes center stage to testify before the House Budget Committee, giving investors an excuse to focus on the US economy, rather than the problems in Europe. He'll likely be questioned about a Treasury department report, that predicts that US debt will rise to $19.6 trillion by 2015, or 102% of GDP (from $13.6 trillion or 93% this year).
Later in the day, the Fed will release its Beige Book on the economy, which provides a summary of economic conditions across the 12 Fed districts.
Also on Capital Hill, there will be a number of hearings about the oil industry: the Senate Natural Resources Committee holds a hearing on increased safety measures; the Senate Committee on Environment and Public Works holds a hearing on the liability cap for big oil, and the House Transportation and Infrastructure Committee holds a hearing on liability limits and whether they should be changed for Deepwater Horizon and future events.
(CBS)
Jill Schlesinger is the Editor-at-Large for CBS MoneyWatch.com. Prior to the launch of MoneyWatch, she was the Chief Investment Officer for an independent investment advisory firm. In her infancy, she was an options trader on the Commodities Exchange of New York.
Gold Hits New High
This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.
In this undated handout photo from Newmont Mining Corporation, gold nuggets and bars are shown.
/ AP Photo/Newmont Mining
My first job on Wall Street was as a gold options trader on the floor of the COMEX in the late 1980s. It was then that I realized the power of a metal that has very little use except for jewelry ... and to provide some semblance of calm for investors. But gold went out of fashion in the 1990s as investors were happy to dump the yellow metal for the technology stocks.
When I was managing money in the early 2000s, I recall that one of the most "aggressive" purchases that I made for my clients was gold at a price of about $300. Clients rarely questioned trades, but when they saw GLD appear in their accounts, I sure did hear about it. I tried to explain that I thought that gold would be a great long-term hold, not because I am a gold bug but because gold represents security in an insecure world.
Continue »Consumer Credit: A Double-Edged Sword
This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.
The Federal Reserve reported that consumer credit increased by nearly $1 billion in April to $2.44 trillion. In the same report, there was a substantial revision to March's results -- from a rise of $2 billion to a drop of $5.4 billion. The stock market tanked on the news because the data suggest that Americans aren't yet secure enough to borrow and ultimately to spend freely.
Continue »Tuesday Market Preview
Federal Reserve Chairman Ben Bernanke in April 2010.
/ AP Photo/Pablo Martinez MonsivaisBernanke Forecasts a Fitful Recovery (N.Y. Times)
That wouldn't necessarily inspire confidence to most, so maybe it was the fact that stocks may be getting cheap enough to consider nibbling.
Bulls are saying that based on the forward P/E multiple of the S&P 500, stocks haven't been this cheap since the March 2009 lows. But there continue to be worries that European debt issues will slow down the world economic recovery. If that were to occur, then prices could go lower.
Futures markets are pointing marginally higher, despite a trifecta of negative news out of the financial sector, which included:
(1) The FCIC subpoenaed Goldman for documents;
(2) Bank of America was whacked with a $108 million fine to compensate homeowners who were overcharged fees by Countrywide mortgage (Bank of America acquired Countrywide in July 2008); and
(3) Morgan Stanley announced that it would shutter 300 retail offices and Continue »
Madoff Says "F*** My Victims," Inmates Claim
Apparently, the jail-house harassment is getting to Bernard Madoff.
First, the federal Bureau of Prisons said the convicted swindler was treated at a prison medical center for dizziness and hypertension back in December.
Then the Wall Street Journal reported that his trip to the infirmary was caused by a beat down from a fellow inmate, identified as a "beefy man."
Now, New York Magazine reports, Madoff cracked when another inmate chided him for bilking his victims out of billions of dollars.
"F*** my victims," Madoff allegedly snapped, loud enough for other inmates to hear. "I carried them for twenty years, and now I'm doing 150 years."
Read the full New York Magazine articleOf course, not all of Madoff's fellow inmates have a problem with the 71-year-old convicted swindler. Robert Rosso, serving a lifetime prison sentence, called him a "hero" on website he founded called convictinc.com. "He's arguably the greatest con of all time."
Madoff is spending the remainder of his life at a federal penitentiary in North Carolina.
College Graduates: Listen To These Tips!
This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.
Check out LearnVest.com founder Alexa von Tobel and Ellen Gordon Reeves, author of "Can I Wear My Nose Ring to the Interview" in this great episode of "Ask The Experts"!
(CBS)
Jill Schlesinger is the Editor-at-Large for CBS MoneyWatch.com. Prior to the launch of MoneyWatch, she was the Chief Investment Officer for an independent investment advisory firm. In her infancy, she was an options trader on the Commodities Exchange of New York.
Dump Your Individual Stocks For ETF's!
This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.
Are you tempted to play with individual stocks? Stop spinning your wheels and jump on the ETF (exchange-traded fund) train. I interrupted this poor, unsuspecting guy's lunch to get him on board!
(CBS)
Jill Schlesinger is the Editor-at-Large for CBS MoneyWatch.com. Prior to the launch of MoneyWatch, she was the Chief Investment Officer for an independent investment advisory firm. In her infancy, she was an options trader on the Commodities Exchange of New York.
Monday Market Preview
A display shows the Hang Seng Index in Hong Kong on Monday.
/ AP Photo/Vincent YuOn Friday, a Hungarian official said that the debt situation is nasty, quickly prompting investors to call Hungary the next Greece ("PIIGS" must now become "PHIIGS").
European stocks are trading lower, but strengthening as the day progresses, and the Euro is holding steady at $1.1986. U.S. futures are trading flat to marginally higher at the moment.
In the week ahead, the Fed will release Consumer Credit for April this afternoon. Consumer credit has declined sharply since mid-2008, as consumers try to dig out from twenty years of excesses. On Wednesday, Fed Chairman Ben Bernanke will testify before the house budget committee about the economy, financial conditions and the budget.
After the rotten monthly report, all eyes will be on the weekly initial weekly unemployment claims due Thursday. Analysts are expecting a drop to 448K from 453K last week. The week will end on a big economic report — Friday's release of May retail sales. The consensus is for an increase of 0.2-0.3% from the April rate, and 0.1% increase ex-autos.
Keep an eye on Apple (AAPL) today — the new iPhone 4G will be unveiled, with the usual Apple fanfare!
(CBS)
Jill Schlesinger is the Editor-at-Large for CBS MoneyWatch.com. Prior to the launch of MoneyWatch, she was the Chief Investment Officer for an independent investment advisory firm. In her infancy, she was an options trader on the Commodities Exchange of New York.
