SubscribeAll Posts Tagged With: "money-market"
Current Stock Prices: Why Trillions of Dollars on the Sidelines Maybe A Good Thing
You can’t blame most market investors for being nervous…
- The stock market has done a belly flop.
- Real estate keeps tumbling.
- The economy remains weak.
- Jobless claims recently hit a 26-year high.
Investors have pulled tens of billions of dollars out of stocks and plunked it in the bank.
We are optimistic, nonetheless. Why? Because the bad news is already reflected in current stock prices.
Valuations are attractive. Negative sentiment is a bullish signal, not a bearish one. And all that cash sitting on the sidelines is actually a good thing.
This month we’ll look at why.
We’ll also highlight a world-class biotech firm…
10Feb2009 | Investment U | 0 comments | ContinuedU.S. Money Market Fund Assets vs. S&P 500 Market Cap
Are you ready to add some serious arsenal to your investment portfolio? Sick of hearing about all this gloom and doom on Wall Street? Honestly, I can’t blame you and it certainly appears to be the grim reality we face today.
Heck, even the presidential candidates cannot escape the market’s wrath in defining our political discourse. Your friends, neighbors, and co-workers have probably all regurgitated this information to you at some point.
So what’s an investor to do?
The simple answer is to buy. Yes, you heard me correctly. Start nibbling on cheap shares of quality companies today. Many companies that…
3Nov2008 | S. Oakes | Comments Off | ContinuedWhat’s Another $540 Billion in Loans?
More Government Intervention, This Time to Save the Money Markets
It seems that there’s a never-ending supply of cash floating around Washington these days, and this time it’s the money markets which are the beneficiary. The Fed has observed that "short-term debt markets have been under considerable strain in recent weeks" and that about $500 billion has flowed out of prime money-market funds since August, which with other money-market mutual funds control $3.45 trillion.
If you’re not already familiar with them, money market funds are mutual funds that invest in short term instruments that mature in less than 13 months. What’s more,…
24Oct2008 | Oxbury Research | Comments Off | ContinuedWhat’s Another $540 Billion in Loans?
More Government Intervention, This Time to Save the Money Markets
It seems that there’s a never-ending supply of cash floating around Washington these days, and this time it’s the money markets which are the beneficiary. The Fed has observed that "short-term debt markets have been under considerable strain in recent weeks" and that about $500 billion has flowed out of prime money-market funds since August, which with other money-market mutual funds control $3.45 trillion.
If you’re not already familiar with them, money market funds are mutual funds that invest in short term instruments that mature in less than 13 months. What’s more,…
23Oct2008 | Oxbury Research | Comments Off | ContinuedFed Steps in with $600 Billion Plan to Bolster Money Market Funds
The U.S. Federal Reserve yesterday (Tuesday) announced a new program that will provide as much as $600 million in emergency funding to money-market funds should the ongoing global financial crisis once again cause the short-term credit markets to freeze out borrowers.
The newly created Money Market Investor Funding Facility (MMIFF) will help money market funds meet redemption needs and keep from “breaking the buck” – dropping below the normal $1 in net asset value – as The Reserve Primary Fund (RFIXX) did after the collapse of Wall Street investment-banking giant Lehman Brothers Holdings Inc. (OTC: LEHMQ). Struggling money-market funds that have…
22Oct2008 | Money Morning | Comments Off | ContinuedMoney Markets: How Safe Is Your Cash?
Last week investors panicked. You can’t really blame them considering the state stocks and money markets were in:
-A 158-year-old investment bank failed.
-The nation’s largest brokerage rushed into the arms of Bank of America to stave off a similar fate.
-The world’s largest insurance company was on the verge of going belly up before Uncle Sam showed up at its bedside.
-And the country’s oldest money market fund – the Reserve Primary Fund – “broke the buck,” handing back shareholders less than a dollar a share.
Apparently, investors found this last development the most unnerving of all. To paraphrase Mel Brooks: Fat-cat bankers and…
25Sep2008 | Investment U | Comments Off | ContinuedCentral Banks Attempt to Boost Liquidity as Money Market Melts Down
Central banks yesterday (Thursday) launched a coordinated effort to flood global money markets with U.S. dollars in hopes of easing strained financial systems in danger of freezing up entirely. However, many analysts see this as only a short-term solution that will lower overnight lending rates but fail to assist financial institutions with longer-term cash needs.
In a statement released at 3 a.m. yesterday morning in Washington, just as the markets opened in Europe, the U.S. Federal Reserve announced that it had authorized a $180 billion expansion of its swap credit lines, allowing banks to borrow more dollars at a lower rate.…
19Sep2008 | Money Morning | Comments Off | ContinuedHow to Survive Stagflation – With a Profit in Your Pocket
Increasingly in recent weeks commentators have begun speculating about the dreaded “S-wordâ€- stagflation- and whether or not such a protracted period featuring both high prices and high unemployment would blight the U.S. economy.
The stagflation debate arose anew on Friday when a worse-than-expected employment report and a record single-day surge in crude oil prices made economists once again consider the possibility that the U.S. economy could drop into a recession even as inflationary pressures spiraled higher.
For economists, this is viewed as the ultimate “worst-case†scenario. The probability is probably low. Nevertheless, it’s a real-enough possibility that investors should prepare for…
10Jun2008 | Money Morning | 1 comment | Continued
Loading ...
