Trade in Groups

It is curious to see what an Obama presidency might mean for the stock market, and for investors.  Barack Obama proposed to impose taxes on “excess profits” of major oil companies, and distributing these monies to ordinary citizens in the form of stimulus checks.  The E&P (Exploration and Production) companies may see a hit in […]

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We are seeing several cuts in the financial sector all across the world such as what was reported on June 23 by Reuters that Citigroup Inc would be cutting thousands of trading and investment banking jobs. Plans reported previously stated that Citigroup would cut about 10% of its investment division; however, that percentage has now […]

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A sustained and severe credit crunch means that it is harder and more expensive for companies, institutional investors, and consumers to obtain loans in order to fund operations, purchase assets, or acquire companies. Lack of confidence in the financial services sector, partly due to the subprime mess, means that lenders are less willing to […]

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Warren Buffett famously described Wall Street as a “community in which quality control is not prized” and which “will sell investors anything they will buy.” For approximately three years between early 2004 and the middle of 2007, a demand for mortgage paper greased the loan underwriting process led to a huge decline in the requirements […]

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At the beginning of 2007, the notion of impending doom caused by a credit crunch would have been ludicrous; Wall Street was revelling in an era of unequalled prosperity, record deals were being struck and profits were soaring, and for workers this meant a bulging pay check. However, fast forward one year and the […]

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The credit crisis in financial markets has been with us for the lion’s share of 2 years. The indelible term is one in which investors are familiar with by now. A mass underwriting of sub-prime loan products, almost 40% by computer automation have you, brought us into this mess. Loans were then packaged into bundles […]

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The Wall Street Journal reported Monday that Citigroup is cutting $15 billion in expenses, salary expenses to be specific. It’s a big number and, as it turns out, happens to be the amount the financial giant has posted in losses over the past two quarters. To mitigate the losses, Citigroup is embarking on a plan […]

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Doctors do not go out of business when epidemics strike. Inflation, recession, and volatility should not be the stuff of Financial Sector dreams. However, these are certainly times when economists, accountants, analysts, consultants, fund providers, and credit rating agencies are needed more than since the Great Depression.
Wall Street must evolve. You can vote Republican […]

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Whenever you hear statements about the economy as a whole, remember one thing:
The whole economy is a collection of micro economies.
Macro economic data is helpful to get a big picture view and draw some conclusions about trends. Micro economies is where money is made. Even a ‘down’ economy has strong sectors.First […]

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Consumer confidence is down and the stock market is unpredictable. So what does that mean for the ordinary investor?
Consider the following:
- Staple consumer goods and pharmaceuticals tend to hold value through tough times.
- Although people may not be able to afford big-ticket items, they still need small luxuries.
- Warren Buffet likes brand investing.
Put those […]

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