IMF And Fed Data: A Wake-Up Call For Long Term Investors [View article]
Lets put some of your numbers in perspective.
Global GDP is around $77 trillion and and lets say debt is around 3X this amount or $231 trillion.
In this light $11 trillion is a rounding error and is clearly insufficient to absorb losses of any serious magnitude which is why US banks are making few domestic loans while reducing their exposure to Europe.
Wall Street Breakfast: Must-Know News [View article]
Obama vetoes foreclosure bill. In the first effective veto of his presidency, Obama blocked a bill that would have required state and federal courts to accept the validity of out-of-state document notarizations; the bill would have made it harder to challenge the authenticity of foreclosures and other legal documents. ______________________...
I have mixed feelings about this whole mess but the Community Organizer in Chief's veto of this foreclosure bill was entirely too predictable. Whatever the shortcomings in title transfers, we know money is owed and the people living in the house owe it.
Stocks Give Up Gains, Finish Broadly Lower [View article]
I believe the S&P 500 got up to 1130 and then sank to 1113, passing through 1120 (Fib 50% retracement from March 09 lows) but remaining above the 200 day SMA of 1110.
I have pasted below material taken from Clusterstock and would add to the list 3M, who makes the masks that will likley be used if this thing reaches pandemic proportions.
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The swine flu outbreak has come during a horribly vulnerable time for the global economy, but at least on Monday, toxic balance sheets won't be the #1 news story.
Instead we'll be trying to figure out if this is the big one, or if it's just a prelude.
Two of the ones to watch tomorrow: Biocryst (BCRX) and Novavax (NVAX), vaccine makers which were up 26% and 75% respectively on Friday as news emerged of the disease striking in Mexico. We'll be shocked if they don't go crazy again on Monday, now that the story's gotten much bigger and because Novavax still has a market cap of under $100 million. It won't take much to make it go crazy.
Other companies that may profit from swine flu include Roche -- who's Tamiflu has had some effect and Gilead (GILD), which gets royalties from its sale.
This blog offers up some more speculative names including NanoViricides (NNVC) and Sinovac Biotech (SVA)
A stock we'd expect to see selling in: Hormel (HRL).
Any other ideas and guesses as to how the story will effect the markets and individual stocks? We'd love to hear 'em.
IMF And Fed Data: A Wake-Up Call For Long Term Investors [View article]
Global GDP is around $77 trillion and and lets say debt is around 3X this amount or $231 trillion.
In this light $11 trillion is a rounding error and is clearly insufficient to absorb losses of any serious magnitude which is why US banks are making few domestic loans while reducing their exposure to Europe.
I'm short financials.
Wall Street Breakfast: Must-Know News [View article]
______________________...
I have mixed feelings about this whole mess but the Community Organizer in Chief's veto of this foreclosure bill was entirely too predictable. Whatever the shortcomings in title transfers, we know money is owed and the people living in the house owe it.
Stocks Give Up Gains, Finish Broadly Lower [View article]
Possible Swine Flu Profit Trades [View article]
----------------------...
The swine flu outbreak has come during a horribly vulnerable time for the global economy, but at least on Monday, toxic balance sheets won't be the #1 news story.
Instead we'll be trying to figure out if this is the big one, or if it's just a prelude.
Two of the ones to watch tomorrow: Biocryst (BCRX) and Novavax (NVAX), vaccine makers which were up 26% and 75% respectively on Friday as news emerged of the disease striking in Mexico. We'll be shocked if they don't go crazy again on Monday, now that the story's gotten much bigger and because Novavax still has a market cap of under $100 million. It won't take much to make it go crazy.
Other companies that may profit from swine flu include Roche -- who's Tamiflu has had some effect and Gilead (GILD), which gets royalties from its sale.
This blog offers up some more speculative names including NanoViricides (NNVC) and Sinovac Biotech (SVA)
A stock we'd expect to see selling in: Hormel (HRL).
Any other ideas and guesses as to how the story will effect the markets and individual stocks? We'd love to hear 'em.
Why Return on Capital Is So Important to Investors [View article]
Others may find it interesting that over the long run and with a fixed capital structure, ROC is the limiting factor on growth.
Holding debt to equity constant, the rate of growth in capital cannot exceed ROC.