As I’m sure you’ve heard… Tax increases and government spending cuts in the U.S. are set to take place on January 1, 2013. Originally, the purpose of the payroll tax cuts was to stimulate the U.S. economy; government spending programs (like extending unemployment benefits) were also aimed at getting the economic recovery going. The tax cuts and government spending initiatives that were enacted to help the economy “rebound” from the crisis and recession of 2007 add up to roughly $433 billion, or approximately ...

The best gift we’ve gotten from the current stock market correction is lower oil prices. Oil just under $100.00 a barrel accurately reflects global fundamentals; but, around $90.00 a barrel, oil prices are oversold in my view. Oil prices have come down significantly due to a combination of factors, all occurring about the same time. When you get situations like this (which don’t happen very often), when a number of global fundamentals come together commensurately, there’s always the opportunity for a ...

The global market for tablets is estimated to rise to around $31.86 billion this year, with over 100 million units delivered, according to Visiongain. But this is only the beginning, as the demand for tablets steadily rises higher, driven by nimbler tablets with added functions, application complexity, and the advent of cloud computing that allows unlimited storage. And, by 2016, it’s estimated that about 360.4 million tablets will be sold, according to IHS iSuppli. The reigning market leader continues to ...

Not even a month has passed since I wrote the article, Can New Yahoo! CEO Deliver on Lofty Promises?, and the company’s CEO has left under a dark cloud. Since that time, now former CEO Scott Thompson has been discovered to have allegedly lied on his resume (although he says it’s just an error) about having a bachelor’s degree in computer science. This alleged error forced him out, but the long-term problems at Yahoo! Inc. (NASDAQ/YHOO) regarding its corporate earnings ...

I know it sounds crazy, but it’s true. Investors are paying the U.S. Treasury to hold their money in exchange for participation in expected rapid inflation. Treasury Inflation Protected Securities, more commonly known as TIPS, are bonds backed by the U.S. government that protect against rapid inflation. TIPS pay interest like every other bond, except that the interest is tied to the consumer price index (CPI). If inflation rises—as measured by the CPI—then the holders of TIPS get a fixed rate of ...

A little stock market bounce-back is a welcome development. We likely won’t see any material new trend develop until second-quarter earnings season begins. Investment risk is still very high, but there is good news out there. In the continuing story of a strong retail sector, Ralph Lauren Corporation (NYSE/RL) announced excellent financial growth in its fiscal fourth quarter and management also announced a doubling of its quarterly dividend. When I read news like this, it bolsters my view that the U.S. ...

Europe is an ocean away, but it’s literally in our backyard as far as the impact from its credit crisis and it doesn’t appear to be going away anytime soon. Greece can’t even elect a coalition government to deal with the tough austerity measures that the previous government agreed to in order to receive a second tranche of emergency funds. Another election is set for June 17, 2012, to try to form a government. Failure to do so or to meet ...

Following research I did on Caterpillar Inc. (NYSE/CAT) back in March, which culminated in the article, Caterpillar’s Cracks Indicate an Economic Slowdown. I said that, at that point in time, the stock was priced for perfection. If one had an investment strategy that incorporated technical analysis along with fundamental research, it was evident that the stock was due for a pullback. At the time of the article, the stock was trading at $109.00; with the current price being approximately $92.00, ...