Thursday, November 18, 2010

Back to Work---Look Back At the Events Since October

Hello fellow readers! I apologize for my over month absence.  There were some serious issues that were occurring with my family but things are better now.  I am back and there has been a lot of things going on since my last post on October 6th.

1.  The Republicans took over a huge amount of seats in Congress, and took over the House of Representatives.  Look for a huge push in spending reduction, lower taxes, and reducing the deficit.

2.  The Fed began QE 2 to try an stabilize the economy and promote more growth.  Whether this will ultimately have a negative effect or positive is yet to be seen.  However, as we can see by the Treasury yields there has been a "silent crash".

3.  Still lots of M&A action going on out there which is a good symbol that companies that have a record amount of cash on their balance sheets are beginning to use the cash to buy up companies or buy back stock which is a good sign.

4. Irish bailout was announced today after the country has had a hard time stabilizing their finances.  The bigger issue here is that European countries that were having trouble at the beginning of 2010 are getting back into trouble i.e. Greece, Spain and possibly Italy.  The EU must be assertive and move quickly to stabilize any problems that surface before the issue gets out of hand.  I think their response to Ireland's issue was pretty quick and will overall help Irish.

5. GM returns to Wall Street in the largest IPO in US history with over half a billion shares that started at $33 a share.  In GM's first day back, the shares were up around 8% intraday but closed up 3.6% at $34.19.  Look for an article to get the story on whether GM is a good buy or a good place to stay away from.

October's Stock of the Month: Ford (F) started the month at $13.01 and ended the month at 14.13.  Thats about a 7% gain. Not too shabby! Look for November's stock of the month!

Its great to be back in the swing of things! I will return to posting articles if not everyday, every other day.  Thank you for your support!

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