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Archives for March 2014

Flash Boys

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I downloaded my copy of bestselling author Michael Lewis’ new book Flash Boys today. Lewis appeared on 60 Minutes last night: … [Read more...]

Top Gold Mining Stocks for Long-term Profit

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Although the stock market is basically flat YTD, there is rampant speculation bubbling under the surface. The bubble conditions in the stock market are evident in the flood of junk IPOs the investment banks are unloading on the public, the ridiculous valuations of the social networking stocks, the bidding wars for start-ups without a viable business plan, and the massive buildup in margin debt. The speculative conditions in the market are best captured by the ratio of the NASDAQ to the blue-chip Dow Jones Industrial Average. When NASDAQ stocks are beating the blue-chips by such a large … [Read more...]

How to Lose a Billion Dollars

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That's what's happening over at Pimco as money continues to exit the bond fund managed by Bill Gross. The Pimco Total Return Fund, the world's biggest bond fund, is on track to end the first quarter trailing 87% of its peers, the latest setback for high-profile portfolio managerBill Gross. The $236.5 billion fund posted a year-to-date total return of 1.28% through Thursday, according to data from fund tracker Morningstar Inc. MORN -0.78% The benchmarkBarclays BARC.LN +0.32% U.S. Aggregate Bond Index, which serves as a gauge for a wide variety of bonds but is dominated by highly rated debt, … [Read more...]

Candy Crushed

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Who' buying this crap? Nice open for Candy Crush. SAN FRANCISCO (MarketWatch) — “Candy Crush” got crushed. That was the popular way to describe the social game maker’s public trading debut, as King Digital’s stock tumbled from the opening trade. King KING +1.46%  shed 15.6% to close at $19, the worst trading debut this year, according to data from Renaissance Capital. The company priced its initial public offering at $22.50. The drop was so steep that analyst Scott Sweet, senior managing partner at IPO Boutique, said the IPO was hit by “extremely fast money,” as investors appeared to … [Read more...]

Welcome to America!

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Following the money is always a good idea. Ian Talley of The Wall Street Journal explains that rising stock prices led to a new record in the value of foreign owned assets in America in the fourth quarter of 2013. Foreign investment in the U.S. hit a fresh record in the final quarter of 2013 as rising stock prices boosted the value of American assets, according to figures released Wednesday. The value of foreign investment in the U.S. hit $26.54 trillion the fourth quarter, up $777.8 billion from the previous quarter and far surpassing a $372.1 billion increase in U.S. investments abroad, … [Read more...]

Dow Theory Breakdown

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There's trouble a brewing according to Dow Theory. The Wall Street Journal's Paul Vigna reports here. This time it's Dow theory adherents, who are troubled that there's been a breakdown this month that could spell trouble for the bull market, according to research the Wall Street Journal cited Tuesday. The market looked weak on Monday, saved only by a late spurt of buying that narrowed the losses. It may not be the last time it looks weak. The much ballyhooed Dow Theory is flashing a warning sign: While the Dow Transports made a new high in March, the Dow Industrials did not. The … [Read more...]

Bitcoin Tax Grab

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The latest in the Bitcoin tax grab. Bloomberg's Richard Rubin and Carter Dougherty explain how the IRS has made it more difficult for Bitcoin users to make purchases by classifying the crypt0-currency as property for tax purposes. The U.S. government will treat Bitcoin as property for tax purposes, applying rules it uses to govern stocks and barter transactions, the Internal Revenue Service said in its first substantive ruling on the issue. Today’s IRS guidance will provide certainty for Bitcoin investors, along with income-tax liability that wasn’t specified before. Purchasing a $2 cup of … [Read more...]

It’s Never too Early to Retire

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Controlling what you spend has some benefits. Forbes talked to two extreme early retirees and developed a three step process that could work if you don't mind forgoing some of the finer things. Here’s the three-step process Fisker, Mr. Money Mustache and others recommend to pull it off: 1. Embrace a very frugal lifestyle. That means cutting back substantially on biggies like your home and car expenses as well as learning to cook (to save on dining out and prepared foods) and to do more things yourself rather than pay someone else to do them. 2. Save like crazy­ — ideally at least 75% of … [Read more...]

Food Inflation: Largest Increase Since Sep ’11

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According to the latest report from the Bureau of Labor Statistics, inflation is under control. But for those of us who like to eat it's worth noting that food inflation had the largest increase since September 2011. String together a few months of the reported 0.4 percent increase in the food index and it will hurt at the check-out counter. But in reality any increase in inflation hurts more than it should. That's because the Fed has left savers defenseless with it's pathetic zero percent interest rates. Consumer Price Index Data for February 2014 Food The food index rose 0.4 percent … [Read more...]