GM plans to file for $20 billion IPO by the middle of August, or so say the rumor mongers. More later… - Tuesday markets opened with optimism. Asia and Europe all higher and domestic markets moved sharply higher into triple digit territory before collapsing mid-afternoon and ending up 59 points on the Dow.
- The US dollar may lose its exalted status and eventually be replaced by the ‘doomed’ currency namely the euro. That according to John Desauer of John Desauer’s investment advisory services. The reason is that Europe is dealing with cost cutting and the US is not.
- In early Wednesday trading financials and tech lead the way for a broad market surge. Better than expected earnings on the financials afforded traders an opportunity to leave Treasuries for equities.
- 2 day winning streak – not since June 16-17 but on light volume. Markets explode with all 3o Dow stocks up for a solid Wednesday. Yummy.
- Want to spoil the next financial meltdown? Tax it! Narayana Kocherlakota in a Montreal speech said no law can prevent mistakes that lead to a financial crisis. Instead, he suggested, is to internalize the societal costs of risky investments. (Want to bet someone redefines investment risk?)
- Thursday made it 3 days with solid results. A bit scary as markets opened higher, kept climbing and then sold off around the middle of the day. But it was final hour that made the difference.
- Gold is lower and it’s been a week since any hype from the precious precious metals sector.
- Credit card late payments fall to 8 year low as consumers get their house into order.
- President Obama, faced with high unemployment, voiced that the US has more hard days ahead. (I don’t want to hear that. Someone tell him we don’t need to hear that.)
- A short week but stocks wrapped up the best in nearly a year with the Dow up 58 points. The DJIA +5.5% for the week and we’re entering earning season with confidence that they will beat expectations and give relatively strong guidance. And guidance is what will drive the markets for another quarter or until something happens we don’t see or think about.
- Google got it’s license renewed in China. Thank about it. (Or did I mean Think about it?)
- In Barrons weekend MKM Partners predicted that the economy is set to grow through the second half. Corporations have held back some $2 trillion in corporate cash flow that now could be unleashed for a more robust recovery. The Employment Trends Index continues to signal job and income growth over the months to come. (If you can say Pip-Pip, I got a Hooray!)
- Bloomberg Businessweek reports on a new hedge fund that bets on sports. So far UP over 8% on World Cup Soccer. The firm employs traders and gamblers. Minimum investment one hundred thousand pounds but expectation is for 15-25% returns after fees.
- Chrysler is thinking about preparing its IPO. Oh, you forgot there was a Chrysler? Expect the company to go public sometime 2011. Fiat owns 20% of the company, which they paid $0.00, a gift from the auto task force and with the rest of the company owned by the usual suspects:UAW, United States and Canada. Fiat first came to the US 30 years ago and failed miserably. Smart-alecs would say that Fiat stood for, Fix It Again, Tony’. Today no one laughs at the car’s design or engineering. More later.
- Finally, Bank of America admits to hiding billions of dollars in debt in 6 transactions from investigators to cook the books and make the bank’s balance sheet meet internal targets. This is similar to what Lehman did to hide its insolvency but was forced into bankruptcy. Good grief!
If you have questions call Paul @ 877 783 7080 or write him at pstanley@westminhsterfinancial.com. Share this blog with someone who cares about their money.
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