Archive for 'Stock Market & Finance' Category

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Last few days of 2008 and how santa can come

This insightful blog article from ian's highgrowthstock.com, shows us what to expect from these last few days of 2008

The Santa Claus Rally which was stalled for the past seven days with a stand-off between the Bulls and Bears may have got the punch from the FOMC it needed to kick it into High Gear.  Helicopter Ben came through with a surprise of more than a 75 basis point cut in the rates which drove the Market up by at least 200 DOW points from the time of the announcement at 2.15 pm to the close at 4.00 pm.

how does the stock market work

The main purpose of the whole stock market setup is twofold: 1)a company lists or goes public, to get money from investors for use in expansion, settling debts, etc., and 2) for investors to get into and buy into companies easily, no matter how small their share size is. 

Companies go public by offering a specific number of shares in their company to the public through the stock exchange. Investors then can use the stock exchange to buy and sell stocks of companies that they are interested in. While this basic description of how the stock market works is adequate enough to understand what the stock market is, to get a better understanding of how it actually works it will be important to learn about some of the terms that are commonly used when discussing the stock exchange including stock prices and market capitalization.

The Worst Market Conditions Since 1937, Surpassing 2002

Yet another nice blog article from ian's highgrowthstock.com.

The nest eggs have shrunk all around us and now the Auto Industry is the latest to be with tin cups  in hand while flying in to Washington in private jets to ask for a $25 Billion handout.  Where will it end?

12 Days of Christmas’ items would cost $86,609

Given the economic downturn, even the most romantic might balk at the $86,609 price tag for the items in the carol, "The Twelve Days of Christmas."

That's this year's cost, according to the annual "Christmas Price Index" compiled by PNC Wealth Management, which tallies the single partridge in a pear tree to the 12 drummers drumming, purchased repeatedly as the song suggests. The price is up $8,508 or 10.9 percent, from $78,100 last year.

"True loves may take it on the chin for a peck on the cheek," said Jim Dunigan, managing executive of investment for PNC Wealth Management, which has been calculating the cost of Christmas since 1984.

In this tight economy, what's a romantic to do?

Dissecting this year’s Santa Rally

What Is The Santa Claus Rally?

A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations for the Santa Claus Rally phenomenon, including tax considerations, happiness around Wall Street, people investing their Christmas bonuses and the fact that the pessimists are usually on vacation this week.

Many consider the Santa Claus rally to be a result of people buying stocks in anticipation of the rise in stock prices during the month of January, otherwise known as the January effect.

Did we have a Santa Rally last year?

The G-20’s Secret Credit Crash Debt Solution

Read Larry' Edelsons article, a conspiracy theory article I don't necessariy believe in but makes for good reading. (I first person = Larry the writer)

If you think Last weekend's G-20 meetings in Washington are only about designing short-term fixes to the financial system and regulatory reforms for banks, hedge funds, brokers, mortgage companies and investment banks … think again.

Behind the scenes, a far more fundamental fix is being discussed — the possible revaluation of gold and the birth of an entirely new monetary system.

I've been studying this issue in great depth, all my life. And given the speed at which the financial crisis is unfolding, I would be very surprised if what I'm about to tell you now is not on the G-20 table this weekend.

After so many bottom calls, somebody’s bound to get it right sometime

More than a month after our article on Buffett calling a buy but won't define bottom,  a lot of articles appeared calling their own versions of bottoms.  This latest one is from cnbc.

Stocks Giving More Signs Of Nearing Market Bottom

You never know when a market hits bottom until well after the fact, but there have been a series of hints over the past few weeks that stock market investors may be flirting with one.

For one thing, volatility is easing.

The Chicago Board Options Exchange Volatility Index, or VIX, is down about 8 percent for the month and around 38 percent below its 2008 peak hit last month.

Local Pump Prices still overvalued compared to nymex crude oil, oil deregulation bill blamed

Crude oil sank 66% from the top, but local pump prices have not reflected this.  My own computation shown below, reveals that for local pump prices to just mimic crude's movement, our price per liter should at least be only P30, and can even go down to P23! 

Regardless of how overpriced world crude was back in July 2008, in an article that appeared in BusinessWeek in May 2008, Larry Chom, chief economist for Platts (the world’s leading provider of energy information), said that the actual costs in producing the most expensive barrel of oil is only around $70 or $80 a barrel, with the remainder the “market’s risk premium plus speculation”. This implies that the exhorbitant price of US$147 a barrel is inflated by some $67 to $77 a barrel due to speculation.

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