May 30 (Bloomberg) -- Luke Spajic, head of European credit portfolio management at Pacific Investment Management Co., talks about the role of the European Central Bank in stemming the sovereign debt crisis, Greece's euro prospects and his investment strategy. He speaks with Caroline Hyde on Bloomberg Television's "The Pulse." (Source: Bloomberg) … [Read more...]
Archives for May 2012
VIDEO: Argentines Suffer as Leaders Eschew Free Market Model
In Argentina the Apple computer stores are almost empty. Imported Parma hams, and French cheeses, are not being allowed into the country. Even vital materials for Argentina's automobile and pharmaceutical industries are unavailable. It's all part of government crackdown on foreign imports to the country to stimulate local industry and protect the trade balance. Al Jazeera's Lucia Newman reports from Buenos Aires. … [Read more...]
Be Fully Loaded for Retirement
If you’re thinking about retirement, make sure you’ve got a plan to get out of debt. The best case scenario would be to retire without any debt and to keep it that way. If you’re still working and you have debt, then try to work it down to nothing if you can. Once you retire, getting out of debt is a daunting task. Believe me when I tell you that unexpected costs come up and you end up spending more than you had hoped to spend. “I worked my whole life for this” seems to justify a lot of expenses in early retirement. If you do find you’re struggling to get out of debt and you’re already … [Read more...]
Don’t Miss the Boat this Summer
You will have plenty to see and do in Newport, RI this summer. Fresh Breeze for Newport By DEBORAH MARCHINI| Friday, May 18, 2012| Barron's Online The America's Cup World Series, promising lots of thrills, chills, and spills in fast, small boats, is coming this summer to the Rhode Island resort famous for sailing -- and huge showplace "cottages" put up by the Gilded Age elite. Where salty breezes blow, money often follows. Europeans have the French Riviera. Asians have Bali. The American equivalent may well be Newport. As far back as the 1800s, this Rhode Island coastal town was a favored … [Read more...]
JP Morgan Proves Case against more Bank Regulation
Emboldened by JP Morgan’s $2 $3billion trading loss, proponents of the Volcker rule (provision in Dodd-Frank to restrict banks from making speculative investments) are calling for even tougher financial regulation. Treasury Secretary Geithner said of Morgan’s loss: “this failure of risk management is a powerful case for reform.” And in a letter to regulators, Senators Carl Levin and Jeff Merkley wrote: The massive failed bet by JPMorgan Chase provides a stark reminder why we desperately need your agencies to implement the Volcker Rule—a modern Glass-Steagall firewall that separates our core … [Read more...]
Don’t Make this Mistake
In this low-yield market, it’s easy to be thrown off your game. You know money markets are paying nothing, and your dollars are rotting away via inflation. So when you read or hear about annuities guaranteeing 6% or 8%, it’s hard not to listen up. Well, that’s a mistake. Do not buy variable annuities and the promises they make. Once you venture down this road, you’re likely to end up with an expensive product you shouldn’t own. It’s hard to resist the bells and whistles like inflation protection. But that and other add-ons tack on costs well beyond what you may have bargained for prior to … [Read more...]
VIDEO: Ross – NatGas to Triple in Price
Wilbur Ross, WL Ross & Co. chairman & CEO, expects natural gas and Europe to bounce back. … [Read more...]
What We’re Reading 5-18-12
Recession added debt, drained families' savings, Christine Dugas, USA Today Time to Admit Defeat Greece Can No Longer Delay Euro Zone Exit, Der Spiegel Iranians Have Democratic Values, Yuval Porat, The Wall Street Journal African child mortality, The best story in development, The Economist A DVR Ad Eraser Causes Tremors at TV Upfronts, Brian Stelter, The New York Times … [Read more...]
The Commodities Whale
In a recent IMF working paper, author Shaun K. Roache provides readers with some valuable insight on China’s role in world commodity markets. It is no secret that China is a whale in the commodities space, but Mr. Roache helps readers understand just how much of an outlier China’s commodities consumption is when compared to the historical record. The title of the paper is China’s Impact on World Commodity Markets. 2.1. Long-term structural trends China is a large consumer of a broad range of primary commodities. As a percent of global production, China’s consumption during 2010 accounted … [Read more...]
Stocks for the Long-Run
Jeremy Siegel, the famous Wharton School finance professor coined the phrase “stocks for the long-run” with his identically titled 1994 best seller, Stocks for the Long Run: The Definitive Guide to Financial Market Returns and Long-term Investment Strategies. In the book, professor Siegel looks back at up to two centuries of financial market history to support his claim that stocks are the most profitable long-term investments. And indeed his conclusion has been true. But the good professor failed to adequately warn investors that the long run can be a really long time. Check out my stock … [Read more...]