By Michael Lombardi, MBA | October 15, 2014
Now that the Dow Jones Industrial Average has fallen 1,035 points (six percent) from its mid-September peak, the question investors are asking is “how far will she go?” For small-cap investors, the drama is greater, as the Russell 2000 Index has fallen 12.5% from its July peak.
Since 2009, every market pullback presented investors with an opportunity to get back into stocks at discounted prices. Even some editors here at … Read More
By Mitchell Clark, B.Comm. | October 10, 2014
One large-cap that always reports early is Costco Wholesale Corporation (COST). The company’s numbers came in solid.
Costco hit a wall not too long ago and was hard pressed to produce growth. But the company’s latest quarter beat the Street with considerable sales strength in the month of September.
In its most recent quarter, there was considerable growth in the company’s cash position and shareholders’ equity improved significantly.
For the … Read More
By Mitchell Clark, B.Comm. | October 7, 2014
More good numbers are coming down the earnings pipeline, and if the broader stock market is going to take a well-deserved rest, corporate results are a positive indicator going into 2015.
Global Payments Inc. (GPN) is a very good business in terms of its financial growth. The Atlanta-based company is one of the world’s largest processors of credit and debit card payments and business is growing by the double-digits.
The … Read More
By Michael Lombardi, MBA | October 3, 2014
According to the Investment Company Institute, assets in institutional money market funds increased $17.19 billion to $1.69 trillion for the week ended on September 24, 2014. This was the biggest weekly increase in these money market funds in the last five months. (Source: Investment Company Institute web site, last accessed October 1, 2014.)
This is critical: when institutional investors sense the risk of a stock market sell-off in key stock … Read More
By Michael Lombardi, MBA | October 1, 2014
With nine months behind us this year, today we look at how two popular forms of investment have done in 2014 and where I think they are headed for the remainder of the year.
Starting with stocks, the Dow Jones Industrial Average closed yesterday up 2.8% for the year. Given the risk of the stock market, 2.8% is no big gain. I wrote at the beginning of 2014 that the … Read More
By Michael Lombardi, MBA | September 29, 2014
For the U.S. federal government’s fiscal year, which ends this Tuesday, the Congressional Budget Office (CBO) predicts a budget deficit of $506 billion. (Source: Congressional Budget Office web site, September 26, 2014.)
But just because our annual deficit is declining, that doesn’t mean our national debt is rising by an equal amount.
In fact, between September 20, 2013 and September 20, 2014, the U.S. national debt increased by $1.0 trillion. … Read More
By Michael Lombardi, MBA | September 26, 2014
Six years ago this month, in the midst of the Great Recession, Lehman Brothers, one of the most well-known investment banks in the U.S. economy, filed for bankruptcy.
At the time, Lehman’s bankruptcy sparked widespread worries…and the U.S. financial system teetered on the verge of collapse. For those of us who remember that time, there was too much uncertainty.
So, the Federal Reserve and the government stepped in to help … Read More
By Michael Lombardi, MBA | September 22, 2014
The verdict is in…
Last week, at the end of its regularly scheduled meeting, the Federal Reserve said:
1) It would continue to reduce the amount of money it creates each month. The Fed said it will be out of the money printing business by the end of this year. By that time, the Federal Reserve will have created more than $4.0 trillion new American dollars (out of thin air)…. Read More