What We Can Learn From the Bear Stearns Down Fall
March 26, 2008 by Erik Folgate
Filed under Economy, Stocks
If you keep up with current events and/or financial news, then you probably heard about the demise of Bear Stearns, a once large investment brokerage firm. Many were shocked when the news came out that JP Morgan would be buying Bear Stearns at $2 a share, when months ago the stock was trading at $85 dollars a share. Then, JP Morgan realized that others were trying to compete to buy Bear and offering a higher price, so JP Morgan increased the buy-out to $10 a share. So, let’s take a look at why Bear Stearns crumbled overnight.
Stock Market Rallies In The Afternoon To Post a 300 Point Gain
January 23, 2008 by Erik Folgate
Filed under Stocks
I wrote the article below in the midst of watching the market drop 300 points in the morning, then from about 12pm to 3pm, it rallied to post a gain of 300. I told you not to panic! So, is this enough proof to show you that you shouldn’t drink the doom and gloom Kool-Aid that the media wants you to believe? Check out the closing marks for the Dow.
For those of you that lived during the days of Jimmy Carter, you shouldn’t be worried right now. You saw the highest mortgage interest rates in history, high unemployment, and horrible stock market returns. I just don’t see the big signs that say we’re heading for two years of economic decline.
The Fed Cuts Rate By a Three Quarter of a Point; Dow Plunges This Morning
January 22, 2008 by Erik Folgate
Filed under Consumer News, Economy, Stocks
This article from USA Today has a recap of the move that The Fed made overnight and the plunge that the Dow Jones made this morning at the opening of trading.
What The Fed Rate Cut Means To You
September 19, 2007 by Erik Folgate
Filed under Consumer News, Stocks
When you are listening to the news and you hear that the Fed cut some of the national interest rates, it doesn’t mean much to you. The average American doesn’t care what the Fed does, but they should, because their decisions affect us in many ways. AZcentral.com has a good article about what the recent interest rate cuts mean to the average American and each financial category.
• Consumer debts
A cut will help many people who owe money. Interest on variable-rate credit cards could ease, and so might the bite on adjustable-rate mortgages. But anyone facing an ARM reset still should expect higher payments – just not quite as bad as they otherwise might be.
Stock Market Update for September 17th, 2007
September 17, 2007 by Erik Folgate
Filed under Stocks
The the Dow Jones has dipped about 70 points in the first half of the day. The Nasdaq index has fallen 25 ponits. Traders are weary about the upcoming Fed meeting where experts are predicting that they will raise the interest rate. Tuesday, the Fed will meet to discuss making adjustments to the federal fund rate. Many experts are expecting a quarter point increase. The decrease in jobs and the slumping retail sales market has caused some to believe that the Fed will make the adjustment and that we are approaching a recession.
A quote from the Yahoo Finance Article.
Choosing The Right Mutual Funds For Your 401k and 403b
August 30, 2007 by Erik Folgate
Filed under Investing, Stocks
Adjusting to your first “real” job can be a daunting task. First of all, you have to get into the routine of getting up early every day and being ON TIME every day. Then, you have the task of relating to your co-workers and boss. Then, you have the human resources meeting about your benefits package. If your brain isn’t scrambled after all of that information, then you are a much better person than me when it comes to processing information.
Market Update for 8/28/2007
August 28, 2007 by Erik Folgate
Filed under Stocks
The stock market tumbled again today, currently dropping 167 points with only an hour and a half left in trading. The trading volume has been light and much of that has to do with traders being wary over what the Fed will do about inflation concerns. Traders are waiting to see what came out of the latest Fed meeting that occurred recently.
Get Ready For the Actively Managed ETF
May 31, 2007 by Erik Folgate
Filed under Investing, Stocks
Check out this article about the newest type of ETF. Exchange Traded Funds have grown exponentially in popularity over the last decade. Investors like them because they can trade them like individual stocks, but they offer the same diversification as a mutual fund. Although, these funds have typically followed an index like the S&P 500 instead of being actively managed by a fund manager.
Now, a new breed of ETF’s is putting in the human element of managing funds. An ETF provided lower fees, because you weren’t paying for a broker’s commission or fees, but now brokers like Vanguard and Fidelity and put their hot hands on an ETF and still charge a lower fee than the traditional mutual fund.
Buy Out Firm, Blackstone, seeks 7.75 Billion in Stock Sales
May 21, 2007 by Erik Folgate
Filed under Investing, Stocks
Have you heard about the latest IPO craze that everyone is talking about on Wall Street? It’s the Blackstone IPO. I’m not too familiar with Blackstone, but I know they are an equity firm that specializes in buying out corporatoins down on their luck, hedge funds, real estate, and other investments. The latest is that a Chinese investment firm is putting around 3 billion dollars into the IPO, so I imagine this stock is going to quite a bit of activity its first week on the New York Stock Exchange. The question is, should you invest in it?
