Archives for June 2012
Northern Lights: Investing in the Nordics
Citizens in the four largest Nordic countries enjoy peaceful, happy lives. The U.N.'s World Happiness Report ranks Denmark as the happiest nation in the world, followed by Finland and Norway. Sweden comes in close behind at seventh happiest. The Nordics have a strong rule of law. All four are among the six least corrupt countries, according to Transparency International. IMD ranks the four major Nordic economies among the world's 20 most competitive. The World Economic Forum's Global Competitiveness Index also ranks them in its top 20, with Sweden and Finland ranking third and fourth, … [Read more...]
School’s Out for Summer
School’s out and report cards are in. If you own the Vanguard Wellington or Wellesley fund, you’ve done just fine. Through Thursday of last week, Wellington was up 4.5% YTD, and Wellesley was up 4.1% YTD. Not that past performance is any indicator of future performance, but if you annualize Wellington and Wellesley you’re looking at roughly 9% and 8% at year-end. That’s a report card any parent would be proud of. … [Read more...]
VIDEO: Bullard Says Fed QE3 Would Have Pretty High Hurdle
June 22 (Bloomberg) -- Federal Reserve Bank of St. Louis President James Bullard talks about monetary policy and the outlook for the U.S. labor and housing markets. Bullard, speaking with Tom Keene, Sara Eisen and Ken Prewitt on Bloomberg Television's "Surveillance," also discusses the European debt crisis. (Source: Bloomberg) … [Read more...]
What We’re Reading 6-22-12
A History of Money Funds, Review & Outlook, The Wall Street Journal Fed’s Bullard Says QE3 Would Have ‘High Hurdle’, Fairchild and Gage, Bloomberg Jamie Dimon defends JP Morgan in testy House committee hearing, Dominic Rushe, The Guardian Global Energy Subsidies Map, National Geographic … [Read more...]
Housing Market: Looking for a Direction
Housing market data released this week revealed a mixed bag. Home prices measured by FHFA were up 0.8% compared to the month before and the number of permits to build new homes increased more than expected. Meanwhile the number of housing starts was lower than expected. The volatile MBA Composite Applications index fell slightly, pulled in either direction by higher numbers of refinancing applications and lower numbers of applications for new home purchases. Monday’s survey of homebuilders recorded a slight improvement in their sentiment. The housing market appears to be stuck in neutral. … [Read more...]
Stand Down Dr. Bernanke
Yesterday, as was widely expected (yet somehow still disappointing to Wall Street) Dr. Bernanke unveiled the Fed’s latest installment of market manipulation. The Fed announced plans to expand Operation Twist by $267 billion over six months. Apparently, record low interest rates for corporate, mortgage, treasury, and almost any other debt you can think of simply aren’t low enough to promote recovery. Since the crisis began, the Fed has held interest rates at zero, engaged in not one, but two rounds of money printing, promised to keep rates at zero through 2014, extended the maturity of its … [Read more...]
6% Income in Retirement
I came across a special report on retirement income last week during my daily reading regimen. I was surprised by one particular article on ways to boost your retirement income. The recommendation was for preferred stocks—an area I know well and a choice that makes sense in the right environment. But now is not that time. The hook for preferred stocks is the current yield of 6%. But one catch, as the article correctly points out, is that preferreds are lower on the food chain than bonds. There’s more risk of not getting paid if the company can’t make rent. Another risk I want to point out … [Read more...]
Housing Market Shows Slight Improvement
The Housing Market Index (HMI) survey of homebuilders conducted by NAHB indicated a slight improvement in homebuilder sentiment in June compared to May. The index continues to rebound from historic lows recorded through much of the last six years. NAHB Chief Economist David Crowe said “While the June HMI is in keeping with our forecast for gradually improving single-family home sales this year, recent economic reports that have shown some weakening in the pace of recovery likely factored into the marginal gain. In addition, builders across the country continue to report that overly tight … [Read more...]
What We’re Reading 6-15-12
The Spanish Bailout Explained With One Image, Tyler Durden, Zero Hedge Republicans Against Reform, Review and Outlook, The Wall Street Journal New York Plans to Ban Sale of Big Sizes of Sugary Drinks, Michael M. Grynbaum, The New York Times Time to plan a velvet divorce for the euro, Gideon Rachman, Financial Times A DVR Ad Eraser Causes Tremors at TV Upfronts, Brian Stetler, The New York Times … [Read more...]