This week we saw a coordinated effort by central banks to use their bazookas to head off another 2008-style credit disaster. The market reacted as if the crisis is now over and we can get on to the next bull run. Yet, we will see that it wasn't enough. Something more along the lines...
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From Naufall Sanaullah of Shadow Capitalism we get a nice overview of the world economy and markets.
What ultimately determines stock returns? Is it earnings? No. It is dividends, even for companies that presently pay none. Today we discuss why dividends are the key to long term returns, even when we discuss growth stocks that pay little or no dividend.
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Some big losers we had profited from, small cap and REIT’s, had a big comeback last week. We still did fine, but not as well as we could have had they not. Thanks for visiting Risk and Return. Please feel free to contact us with any questions and/or comments. Please note our disclaimer. Download...
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As I noted earlier, Dale Franks was curious about how Harley Davidson (HOG) would do on its latest earnings release: One earnings report to watch this week, though, is Harley-Davidson (HOG). It’s a solid company with a loyal customer base—I’m one of them actually—but, motorcycles are a luxury item. For every guy like me...
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This is a very cool look at the market carnage of the last few days geographically from the Wall Street Journal. You can go from one day to the next and watch how the markets in various places rose and fell*. Hat tip: James Hamilton (who has interesting observations on what happened.) Click here...
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Like me, Barry Ritholtz sniffed a whiff of panic in the Fed’s actions yesterday. The question he asks is why they acted before their meeting. Here are his questions, all good. I have pretty much stolen the whole post. Hopefully Barry will not mind: What does this mean for investors. Quite a number of...
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From the New York Times: Heavy selling hit each Asian and European stock market as soon as it opened. Some of Asia’s easternmost exchanges, which had closed on Monday before the sharpest declines occurred in India and then Europe, suffered particularly steep drops. The Japanese stock market dropped 5.7 percent, for the worst two-day...
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It seems world markets see the stimulus plan in the US as evidence for panic, not joy. Stock markets around the world plummeted Monday, prompted by pessimism about U.S. President George W. Bush’s plans to boost the U.S. economy. Share prices in Asia, Europe and the Americas all plunged by significant amounts; Wall Street...
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Can I ask for some applause for this from Crossing Wall Street? I have to agree with Frederic Mishkin of the Fed: I think there is too much focus on what decision will be made about the federal funds rate target at the next FOMC meeting. What is important for pricing most financial assets...
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Bespoke gives us this observation: While the S&P 500 is less than 12% off of its intraday high from October, individual stocks are faring far worse. As the chart to the right indicates, the average stock in the S&P 1500 is now over 30% off of its 52-week high. Grouping stocks by their market...
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