Massive Stimulus Creates Bullish Outlook in 2009

Is it “Bull Market 2009?”

The answer to that question depends on whether you believe the three-week surge we’ve just been through is the start of a prolonged advance for U.S. stocks, or was just the kind of “dead-cat bounce” fake-out move that temporarily interrupts a protracted bear-market decline.

It’s not an easy call to make, although all the stimulus, bailout and fix-up-plan money flowing into the U.S. financial system certainly makes a strong case for at least a near-term bull-market advance.

Let’s look at some numbers.

The Standard & Poor’s 500 Index last week gained ground for the third straight week, pushing it near its…

Five Reasons Why the $700 Billion Banking Bailout Will Translate into $250 Oil

I’ve been predicting record oil prices for a number of years now, so when crude oil prices recently plunged from their record highs, I warned investors and consumers that the decline was nothing more than a temporary respite.

But now it’s clear that the fallout from the $700 billion banking bailout pact will virtually guarantee that my prediction will come true.

As the curtain closed on the third quarter yesterday (Tuesday) – leaving many investors worried that the long-feared "Super Crash" was imminent – crude-oil futures were staring at their first decline in seven quarters and their biggest quarterly decline in 17 years,…

Global Investing Roundups

Target Misses the Mark; General Dynamics Broadens Horizons; Chavez Bounces Cemex; Manchester United Scores with Saudi Deal; Lacker Lobbies for Rate Hike; Carlyle Group Chair Steps Down; Hedge Fund Fraud Judgment; Quiznos Overseas Expansion

-Target Corp. (TGT) yesterday (Tuesday) reported a 7.6% drop in second-quarter profit to $634 million, or 82 cents per share. Sales were up 5.7% to $15 billion from $14.2 billion, but same-store sales, or sales at stores opened at least a year, slipped 0.4%.

-General Dynamics Corp. (GD) announced yesterday (Tuesday) that it would buy Jet Aviation for about $2.25 billion in cash. General Dynamics – best known…

Multinational Corporations Step up the Search for the “Next China”

As far as foreign direct investment in Asia is concerned, China is still the undisputed leader, drawing approximately $42.78 billion in just the first five months of the year, an increase of 55% from the same period a year ago.

But China is coping with a number of growing pains that include higher wages and a strengthening currency. That has left a void for other emerging markets to step up and take the place of a multinational corporation’s best friend.

China used to be thought of as the world’s factory floor – a haven of cheap labor and minimal regulatory oversight for…