Wednesday, November 12, 2008

Stock Market Parable

Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for $10 each. The villagers seeing that there were many monkeys around, went out to the forest, and started catching them.

The man bought thousands at $10 and as the supply started to diminish, the villagers stopped their effort.

He then announced that he would now buy at $20.


Now you have a better understanding of how the stock market works.

The Crisis & What to Do About It

By George Soros

The salient feature of the current financial crisis is that it was not caused by some external shock like OPEC raising the price of oil or a particular country or financial institution defaulting. The crisis was generated by the financial system itself.

This fact—that the defect was inherent in the system —contradicts the prevailing theory, which holds that financial markets tend toward equilibrium and that deviations from the equilibrium either occur in a random manner or are caused by some sudden external event to which markets have difficulty adjusting.


I.O.U.S.A.: Byte-Sized - The 30 Minute Version

By now, you may have heard about the acclaimed documentary I.O.U.S.A., a film that boldly examines the rapidly growing national debt and its consequences for the United States and its citizens. The film has been a huge hit, getting rave reviews from Roger Ebert and others.

Now, here is a 30-minute condensed version of I.O.U.S.A. designed specifically for watching and sharing on the web - for free.

So if you haven't had a chance to see the movie yet, watch the condensed I.O.U.S.A. today. If you've already seen it in a theater, check out the abbreviated version for a refresher. Then, tell your friends, your family, your Facebook friends and your Twitter followers about the staggering amount of money - $53 trillion - in financial obligations owed by the federal government to foreign investors and to every single American in the form of pensions, health benefits, Social Security and Medicare.

Then, visit and join in Fiscal Wake-Up Movement. Together, we can make American fiscal responsibility a reality.

Things Look Very Bad, But Too Late to Short

by Chart Swing Trader

I have a thousand thoughts spinning in my head right now so I will attempt to get them down as best I can tonight. Let's start with the obvious. Things look downright awful right now. We are just about to break through some very important lows to the downside, which could happen with another gap down tomorrow (a good possibility based on the Intel news). Normally, I would expect a bounce and that still might happen, but I see many reasons to be quite bearish here even though we are oversold.


List of recessions in the United States

This is a list of recessions that have affected the United States. A recession is defined by NBER, and is not necessarily two quarters of negative GDP growth.

From 1945-2007 NBER has identified 10 recessions, their average duration was 10 months (Peak to Trough).

Most of the recessions listed here have affected economies on a worldwide scale;


The End

by Michael Lewis Nov 11 2008
The era that defined Wall Street is finally, officially over.
Michael Lewis, who chronicled its excess in Liar’s Poker, returns to his old haunt to figure out what went wrong.

Photoillustration by: Ji Lee

To this day, the willingness of a Wall Street investment bank to pay me hundreds of thousands of dollars to dispense investment advice to grownups remains a mystery to me.
I was 24 years old, with no experience of, or particular interest in, guessing which stocks and bonds would rise and which would fall. The essential function of Wall Street is to allocate capital—to decide who should get it and who should not.

Believe me when I tell you that I hadn’t the first clue.


Money Management A New Approach

by: Robert Deel

The author explores a new approach to money management he calls DDRL, for "Direction, discipline, risk, and leverage," that can help determine where your trading strengths and weaknesses lie.

As you sit looking at the monitor, eyes transfixed on the screen, you keep going over in your head all the analysis that led to the decision to buy. Your heart begins to pound as you reach for the mouse. You pause for one last look at the chart before committing to the trade. With a push of the button you are in, and then suddenly it hits you, the one thing you forgot. How could you have overlooked it? Money management and an analysis of your individual direction, discipline, risk, and leverage equation: the DDRL©.


10 (More) Reasons You're Not Rich

Jeffrey Strain

Many people assume they aren't rich because they don't earn enough money. If I only earned a little more, I could save and invest better, they say.

The problem with that theory is they were probably making exactly the same argument before their last several raises. Becoming a millionaire has less to do with how much you make, it's how you treat money in your daily life.


The New Age of Frugality

Americans' charge-it culture is getting an overdue reality check. But will the new discipline stick?

On a shady lane in New Hope, Pa., a quiet revolution in American culture may be taking shape. Here, a family of four lives in a white, colonial-style house in a manner that once would have been considered All-American but more recently has been seen as just plain weird: They're frugal.

Meet Leah Ingram, Bill Behre, and daughters Jane, 13, and Annie, 11. They walk most everywhere, they rarely eat out, they sometimes buy clothing at consignment shops, and they turn the lights off when they leave a room.


Friday, November 07, 2008

Dividends Stocks: The S&P Elite

S&P's latest list finds 28 "Dividend Aristocrats"—companies that have boosted their payouts in each of the past 25 years—with top S&P STARS rankings

By Beth Piskora
From Standard & Poor's Equity Research


Pssst! Wanna Go to College for Free?

Most parents would love to send their kids to college for free but probably don't believe it's possible. It is—if you know where to look


The New Silk Road

By Stanley Reed, Dexter Roberts and Nandini Lakshman

Historic bonds between the Middle East and Asia are being revitalized in a torrent of trade and investment in energy, infrastructure, and manufacturing

The dusty, 1960s-era building in Delhi's business district is worlds away from the sleek, glass-and-steel towers of Dubai. The elevators, which stop only at even-numbered floors, are packed with sweaty bodies. Shoeshine men ply their trade on the open-air landings. A sign warns: "Spitting in the building premises is strictly prohibited."

Yet you can find a small taste of Dubai tucked away in a modest office on the eighth floor. The cramped quarters are the local arm of Evolvence Capital, a Dubai-based private equity empire that has tentacles reaching deep into the Indian hinterland. From the simple office in Delhi, Evolvence funds businesses such as the top construction company in tropical Chennai, a high-tech pharmaceutical plant in the rocky countryside near Hyderabad, and a private cancer-treatment center run by U.S.-trained doctors in Bangalore.


What the Market Crash Taught Me About Tech

By Gene Marks

At best, technology can help us do things faster, but it doesn't do a good job predicting things or even helping managers make decisions

O.K., so the market crashed, and we're in a recession. There's also some good news to go around. Warren Buffett's buying. The elections are finally over. The Phillies won the World Series. I've got a year's supply of Halloween candy pilfered from my kids.

The Wall Street crisis has also taught me a great deal about technology.


Sunday, November 02, 2008

Warren Buffett

Warren Buffett is "the world's greatest investor" and when he starts buying stocks in his personal account that is definitely worth noting. I do not think that Mr. Buffett's intent was to call "the bottom", for he is a patient investor who expects there to be volatility. I am not going against Mr. Buffett or making a market call, only bringing to light the similarities of the 1929 chart and the current Dow chart.


Haunting Wall Street: The Halloween Terminology Of Investing

by Andrew Beattie

Once again, it is time for All Hallows Eve: pumpkins are turning up on doorsteps, and small children are dressing like ghouls and pop stars. So to get into the spirit of things, let's look at some of the more macabre and bloodcurdling terms circulating in the investment world.


The Ghouls And Monsters On Wall Street

by Andrew Beattie

It's Halloween and adults and children alike have been browsing costume shops for teeth, fake scars and the occasional severed hand. Running around with a gorilla mask and a chain of severed heads around your neck can have shock value, but if you want to be truly terrifying, it might be better to put on a power business suit, carry a briefcase and flash everyone a quick smile. This article will look at the biggest monsters ever to hound Wall Street - the people whose crimes were so heinous that investors still flinch whenever their names are mentioned.


Dissecting The Bear Stearns Hedge Fund Collapse

by Investopedia Staff

The headline grabbing collapse of two Bear Stearns hedge funds in July 2007 offers fascinating insight into the world of hedge fund strategies and their associated risks.

In this article, we'll first examine how hedge funds work and explore the risky strategies they employ to produce their big returns. Next, we'll apply this knowledge to see what caused the implosion of two prominent Bear Stearns hedge funds, the Bear Stearns High-Grade Structured Credit Fund and the Bear Stearns High-Grade Structured Credit Enhanced Leveraged Fund.


Too Smart for its Own Good

by Victoria Barret

During the decade of Meg Whitman's reign, Ebay clung fiercely to the auction model that made it a multibillion -dollar hit. The oft-repeated phrase inside the company's San Jose, California headquarters: "Don't screw it up."

Somehow they did.


Tales From Wall Street's Crypt

by Andrew Beattie

All old abodes have their ghosts, and Wall Street has been well-lived-in since the Dutch erected a wooden stockade to guard against attack in the 17th century. With hundreds of years during which fortunes have been won, lost, lamented and despaired over, there is no shortage of restless spirits from the past. Let's take look at three gory tales let loose from Wall Street's crypt.


Dawn Of The Zombie Debt

by Amy Fontinelle

Have you ever received a letter or phone call asking you to pay a debt that you're not sure you owe? If so, you may be the target of zombie debt collectors. What zombie debt is? How does it rise from the dead? What you can do if zombie debt starts its relentless lurch toward you? Find how to protect yourself from these zombies and finally lay them to rest.