Investors are breathing a sigh of relief that 2008 is over, but they shouldn’t get too comfortable. After all, with a worldwide recession under way, investors can expect acceleration in corporate bankruptcies in 2009. But the question is - which ones? In the financial services sector, 2008 was a year of spectacular failures: Bear Stearns Cos. and Merrill Lynch & Co. Inc. were absorbed...
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Kerry E. Grace reports: Although government support has buoyed U.S. banks, the industry will likely experience overall credit quality deterioration at least through this year, according to a report published Tuesday by Standard & Poor’s Ratings Services. S&P credit analyst Barbara Duberstein said the number of bank failures will likely rise in 2009 “from an already high nu...
There’s a potential serious problem shaping up Last year was not only an unusual year for the stock market, but also for bonds. It’s no secret that as the interest paid on bonds (the yield) declines, the prices of bonds rise. That’s because if you own a bond that pays you a yield of 6%, and new bonds being issued are only paying 4%, investors will pay more for existing 6% bond...
There are plenty of "Year in Review" articles in mainstream media and on the Web. Here at "A Dash" we try to add value, so we are not going to tread the same ground. Instead, let us offer a few ideas that seem to have been neglected. Looking for Causation Investors looking forward, as they should, need to understand what happened in 2008. The easy explanation, which has plenty of truth, is that...
Filed under: ManagementGeneral Growth Properties (NYSE: GGP) has changed its bankruptcy counsel from Sidley Austin LLP to hire Weil, Gotshal & Manges LLP, according to The Wall Street Journal (subscription required). The latter firm has also worked on the Lehman Bros. bankruptcy.The company has warned that it may have to file for bankruptcy if it can't find a way to restructure the more tha...
“A fool and his money are lucky enough to get together in the first place."-Gordon Gekko (Michael Douglas) in the film ‘Wall Street’. First, a happy new year to all readers. There was a fitting circularity to 2008, in that a year that began with the largest apparent fraud in banking history (Jérôme Kerviel’s €5 billion loss at Société...
Over the last several weeks I???ve received numerous questions from Sovereign Society subscribers, including individuals who frequent this daily blog. As we start 2009, I thought this would be an ideal forum to collect some of these important questions and attempt to give you my best conclusions. I can???t reprint all of these inquiries; yet I???ve compiled several I think are excellent questio...
Over the last several weeks I’ve received numerous questions from Sovereign Society subscribers, including individuals who frequent this daily blog. As we start 2009, I thought this would be an ideal forum to collect some of these important questions and attempt to give you my best conclusions. I can’t reprint all of these inquiries; yet I’ve compiled several I think are excellent questions fro...
Trading strategies for January, A victim's tale in Madoff scandal & 8 early tax-filing steps to take now - Today in Money 1/
Mon, Jan 5, 8:44 AM ET
Filed under: Microsoft (MSFT), Apple Inc (AAPL), Wal-Mart (WMT), Starbucks (SBUX), Intel (INTC), Money and Finance Today, IndyMac Bancorp (IMB)In the News: · Obama to Push Massive Stimulus Plan That Include Billions in Tax Cuts · Madoff 's Victims Unlikely To Recover Much Money · Madoff Scandal Moves to Capital Hill Today · Steve Jobs Has Hormone Imbalance and Begins...
Even in 2008, the classic Bond/Equity portfolio still worked well. As you can see from the chart below, a very simple portfolio with only Equity ([[SPY]]: S&P 500) and bond ([[TLT]]: iShares Lehman 20+ Year Treas Bond ) diversified your risk and did much better than the market: this simple portfolio was down 16%, vs. –40% for SPY in 2008.For example, for a $100,000 portfolio in the be...