Stocks closed down yet again today as the continuing European crisis strikes fear in the heart of investors and a delayed vote on the possible extension of the Bush Era Tax Cuts. Dow was down as much as 110 points today but closed ended the session down 46. Nasdaq down 27 and S&P down 7.
Stocks closed out November in a loss, the first monthly loss since August. November saw big events that had mostly negative twists to them; QE2 and Ireland bailout (second Euro nation to receive a bailout this year). QE2 has received many negative views and opinions. Most of which are essentially worries of a "dollar crash" or very high inflation.
EUROPEAN CRISIS UPDATE:
As for Ireland, many remain skeptical on Ireland's plan to get its economy stable again. Another worry is that two European nations have received bailouts this year and there may be more to follow.
Standard and Poor are reviewing Portugal's financial documents and hinting at a downgrade. Portugal seems to be heading closer and closer into the dark everyday with its huge debt position and the bond market issues.
As for Spain, leaders have vowed to stabilize the economy and reduce the debt. "Talk is cheap" is the main response from traders and other Euro leaders. Spain needs to start acting now on its solution to keep down fears of default and a possible bailout.
Prediction: I predict that Portugal will end up being downgraded by S&P and will eventually need a bailout from the EU, marking the 3rd bailout. I believe Spain will need some sort of EU assistance to help rebalance the debt but I don't believe they will need a bailout because they do seem to be aware of the situation and its severity. Greece and Ireland will need more EU assistance, especially Greece.
In addition for the trades that were suggested my article "Playing the European Crisis", I would like to add gold. Gold surged up over $21 today, but eventually closed lower, on Euro debt woes. I believe gold is a great addition to the list of trades that were suggested in earlier article. Possible ETFs are the SPDR Gold Trust (GLD) and iShares Gold Trust (IAU).
Look for the December Stock of the Month, coming soon!
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Disclosure: no positions
Disclaimer: Invest Chief is not held accountable to any loses sustained by stocks recommended. It is always important to do your own research of the stock before you invest. These trades and ideas are the opinions of the crew of Invest Chief. Invest Chief receives absolutely no compensation from companies that are recommended. We are a private organization, dedicated to promoting financial well being and prosperity.
Showing posts with label reflection. Show all posts
Showing posts with label reflection. Show all posts
Tuesday, November 30, 2010
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!
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!
Thursday, September 30, 2010
Best September in 71 Years
Today was rough as the Dow was up as much as 113 only to close down 47 but, stocks posted best September in 71 years. The Dow was up 7.7% for September, best since the start of World War 2 in 1939. The top performers of September were technology stocks, they also led the pullback today with most top tech down as much as 1%.
Lets take a look back at how my trades have fared. I like to reflect on past recommendations to not only show my success/failures but to also make my blog more transparent and credible.
September's Stock of the Month, Balchem (BCPC)
Not one stock pick was down this month. The top performing recommendation was our Stock of the Month, Balchem (BCPC) which has been on fire! I still recommend "buy" for the above stocks. These stocks are great companies and will continue to outperform.
Look this weekend for October's Stock of the Month and Book of the Month. Lets make money together.
Lets take a look back at how my trades have fared. I like to reflect on past recommendations to not only show my success/failures but to also make my blog more transparent and credible.
September's Stock of the Month, Balchem (BCPC)
- recommended buying on September 4 at $24.78
- As of the close September 30, BCPC is trading at $30.86
- conclusion: up $6.08 or 19.7%
- recommend buy 9/06 at 3.82
- currently trades at 3.91
- conclusion: up $.09 or 2.3%
- recommended buy 9/11 at $54.55
- currently trades at 58.75
- conclusion: up $4.20 or 7%
- recommended buy 9/13 at 82.23
- currently: 85.50
- conclusion: up $3.27 or 3.8%
- recommended: 9/14 at 33.80
- currently: 40.83
- conclusion: up $7.03 or 17.2%
- recommended: 9/18 at 71.50
- currently: 80.14
- conclusion: up $8.64 or 11%
Not one stock pick was down this month. The top performing recommendation was our Stock of the Month, Balchem (BCPC) which has been on fire! I still recommend "buy" for the above stocks. These stocks are great companies and will continue to outperform.
Look this weekend for October's Stock of the Month and Book of the Month. Lets make money together.
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