Got whiplash? US and global indexes jumped on Monday, responding to news of a $1trillion European loan package to staunch their debt crisis. The rally reinstated the gains erased by a panicked sell-off driven by concerns that Greece’s debt crisis would infect other markets.
Dave says he feels he was stuck with a hidden fee by E*Trade, which threatened to sell his stock to recover a $40 inactivity fee. So much for the buy and hold strategy.
I just found this awesome Wall Street Journal front page from 1999 covering the first time the Dow broke 10,000. It’s full of unintentionally hilarious crap that gives keen insight into how we got into this economic catastrophe in the first place. Full-size inside.
Monevator dishes out some general advice on stock investing to keep in mind as the economy (hopefully) starts to turn around and investing no longer becomes a bottomless money pit.
When are we going to pull out of the recession? The Kiplinger Recovery Index thinks it can tell you, using a sophisticated system of red and green colored boxes and checkmarks and X’s.
There are three variables that impact the total return investors receive from an investment: the amount saved, the return rate, and the amount of time invested. Most investors spend a good amount of time and effort trying to increase all three. But what if we can’t do all three, if we’re inhibited by time, skill, knowledge, or ability (after all, many fund managers spend a lifetime trying to eek out an additional 1% return with limited success.) If we could only focus on one of the factors to impact, which is the best option? What is the best way to maximize investment returns?
As growing global economic optimism begins to build, the market is betting that the Fed will raise interest rates by the end of this year. This will mean mortgages will get more costly and credit card APRs will rise, but the interest you make off your savings account will go up. [Bloomberg] (Photo: Ben Popken)
Major health insurance companies own nearly $4.5 billion worth of stock in tobacco companies, according to a Harvard University study. It kinda makes sense: health insurers know tobacco sickens people, and so as long as people are smoking, why not profit from the killer? It’s what David Himmelstein, a co-author of the study, calls “the combined taxidermist and veterinarian approach: either way you get your dog back.”
After the bang-up job the Security and Exchange Commission did to prevent Wall Street shenanigans from plunging the economy into the abyss, the White House is looking to form a new commission to step in and do the SEC’s job.
f you are making regular contributions over time – say, investing a certain dollar amount each week or month – buying an index fund is more cost-effective. If you are rolling over a lump sum, however, you might choose an E.T.F.
On April 1, 2009, one of our vendors provided Zecco Trading with an incorrect data feed which caused some customers to see erroneously high buying power. This error was quickly corrected, but about 1% of our customers were impacted.
Online brokerage site Zecco accidentally increased 1% of their customers’ Buying Power balances by millions on April 1st, leading some customers to wonder whether it was a system glitch or some horrible April Fool’s joke. It turned out to be the former.
Forget T-bonds, money markets, gold, or even your mattress, Gremlins have taken over the New York Stock Exchange and they know exactly where you should put all of your money. (Thanks to Jonathan!)
Markets jumped after the Treasury presented the fleshed-out details of its plan to buy troubled bank assets. The need for getting toxic assets off bank books has been around for quite some time, but has stalled because banks and investors couldn’t compromise on the price. Banks didn’t want to sell for less than 60 cents on the dollar, investors didn’t want to pay more than 30. The Treasury plan makes the two ends meet by providing $75-$100 billion in financing for buyers. For it to work, private investors will have to step up, but with the S&P leaping up 7.1% the street is betting they will and it will unclog the credit markets.
American capitalism’s in crisis, and the public has lost confidence in banks, money managers and business reporters – even the Treasury Department. Friday, on To the Point, If the smartest guys in the room aren’t reliable, who do you trust with your money? Will the US become a nation of online traders?
Stocks surged today after the Fed said it would buy $300 billion in longterm Treasurys and hundreds of billions of mortgage-backed securities. Effectively, it’s like an interest rate cut, or printing more money. By increasing the amount of money in the system, banks will be able to borrow more cheaply and could prompt lower mortgage rates and more lending. Remember when we told you what “quantitative easing” was? This is it, folks, and it’s big.