To prepay or not prepay.. April 28, 2007
Posted by Andy Robinson in : Educational , add a commentMany homeowners are faced with the question of how to best manage their savings. Should you make extra payments to your mortgage or put more into your retirement account? Here’s an article called The Cost of Peace of Mind that explores this issue. Research suggests that many homeowners would come out ahead by choosing to increase retirement contributions rather than make that extra mortgage payment.
Yikes! 1st quarter GDP growth slowest in 4 years April 27, 2007
Posted by Andy Robinson in : News , add a commentWe’ve been getting mixed economic data for months, some reports being positive (like employment and recent durable goods orders) and some reports being negative, particularly with regards to housing sales. It is now evident that the much talked-about economic slowdown is here. In the first quarter of 2007, our economy grew at a weaker than anticipated 1.3%. Check out this Reuters news report for more in-depth coverage of the data. With inflation lingering as a shadow over our economy, the Federal Reserve will be extremely reluctant to reduce interest rates anytime soon in order to stimulate economic growth. Their highest priority is maintaining stable prices. This likely bodes ill for stock prices over the next 6 months until there’s strong evidence that the the inflation bogey is contained.
Dirty stocks are still right for investors April 26, 2007
Posted by Andy Robinson in : Market Research , add a comment“Green” stocks have been all the craze recently on Wall Street. Jim Cramer from Mad Money has sounded his bullish horn for alternative energy companies and just recently Jim Jubak from MSN Money has followed suit. The problem that I’ve always had with alternative sources of producing energy is that it still costs way too much. Investors can only profit when legislators loosen up the purse strings and subsidize production.
Business investment stronger than anticipated April 25, 2007
Posted by Andy Robinson in : News , add a commentIt looks like the recent rally may be given fresh legs by the great durable orders report that came out today that showed the strongest orders growth since September 2004. Durable goods are items with a normal life expectancy of three years or more. Economists use this Commerce Department report as an indication of how strong underlying business investment is. If this trend holds, the market will likely benefit because business investment spending will offset the risk that the housing slump will reduce consumer spending.
Durable goods order up, investment strong
Gold needs to be a part of your portfolio April 24, 2007
Posted by Andy Robinson in : Market Research , add a commentOwning gold offers your portfolio some measure of protection against inflation, a weak dollar, and geopolitical threats. Tim Middleton, one of MSN Money’s analysts, is making the call to buy gold in his article today The new golden rule: Invest in gold. For full disclosure, I own the gold exchange-traded fund GLD as well as gold in a mutual fund. An appropriate amount to own in one’s portfolio may range from between 2-5% depending on one’s individual circumstances.
Merger and aquisition activity has been fueling recent market gains April 23, 2007
Posted by Andy Robinson in : News , add a commentUnless the merger decision appears foolish to Wall Street investors, stocks normally get a nice pop when a merger is announced. The reason for this is that mergers and acquisitions occur when companies argue that increased size will pass along savings and increase bottom-line profits, which is called economies of scale.
One thing we all can agree on: Our taxes are too high! April 20, 2007
Posted by Jordan Chin in : News , 2commentsThe Tax Foundation recently published a special report entitled 2007 Annual Survey of U.S. Attitudes on Taxes and Wealth that weighs in public opinion regarding federal taxes. The consensus? Federal income taxes are “too high.” Not surprising. But this report details more than just the obvious…
Chinese economy still expanding at a blistering pace April 19, 2007
Posted by Andy Robinson in : Market Research , add a commentWhen economic growth maintains a rate above its potential, inflation starts to rear its ugly head. In the article, China Economy Surges 11 Percent, we see that the Chinese Cabinet is concerned by the damage that inflation could cause their economy should it get out of control. Inflation can play havoc within financial markets because, if one cannot accurately gauge future prices, it makes it impossible to make efficient decisions on either an institutional or individual level.
A Technology Value in Maxim Integrated Products (MXIM) April 18, 2007
Posted by Andy Robinson in : Company Profile , 1 comment so farI had decided yesterday to recommend this stock and was somewhat chagrined to see that when the market opened Maxim had climbed over 6%. I would have preferred to have posted my article before the jump and taken some credit. Nevertheless, their valuation, profitability, and growth prospect provide a compelling case for owning this company. For the purposes of full disclosure, I do not own any shares of this company. As of 11:28 am, the intraday stock price is $31.07.
Dollar approaching record weakness versus other currencies April 17, 2007
Posted by Andy Robinson in : Market Research , add a commentThe article, Markets brood over ailing dollar, highlights the need for investors to be aware of current currency trends and the potential effects on one’s portfolio. Money tend to flow towards countries with higher interest rates and countries which look like they will have the best returns on capital over a certain timeframe. With growth looking strong in both Europe and Asia, I would expect this trend of people selling dollars to buy foreign currency to continue at least over the next six months. And strong demand for foreign currencies will continue to put downward pressure on the dollar.