So, what’s the big deal about M & A’s anyway?
Mergers & Acquisitions have traditionally been linked to investor confidence in the market, directly leading to more money going into the stock market. M & A activity has been very low since the recession began as CEOs are unwilling to take big risks, instead holding on to cash assets.
So, let’s take a look at some previous cycles of M & A Activity and how they corresponded to the stock market:
In this volatile economy, is there such a thing as a good investment?
Every morning, I read the Wall Street Journal for a glimmer of hope for the US economy. On some days, today being one of them, the paper is filled with good news followed by a positive forecast and a upbeat market. Just when I think we have what it takes to get out of this economic stagnation, my hopes are dashed with one bad news after another. For myself and others following finance, this has been the common theme for the entire past year. We all face the same question: When will there be any certainty in forecasts?
The Economy Stinks
Let’s face it guys – the economy is not really recovering. Sure, Dow Jones was up for like 9 straight weeks (before yesterday’s selling Bonanza) and some economic indicators were pointing to recovery, but has there really been a change in consumer spending, unemployment and easing of credit? The answer is a loud no.
In this article, I will prove to you that no matter what you hear – we are still in a recession and have not started to recover. Usual economic graphs would have a bottom. In this case, our bottom is a plateau. The same is true around the world. There is way too much uncertainty, risk factors, and negative reports to leave any hope of recovering from the worldwide economic downturn.
Every quarter, we release the best and the worst stock picks for the next 3 months based on market analysis, economic data, and trend indicators. We have compiled a great list for our spring collection.
If you think there are other must buy/ must drop picks, let us know.
Top 5 Best Picks for Spring 2010
1) WellCare Health Plans (WCG) – One of the most successful companies coming out of the health care reform bill. WellCare was able to successfully maneuver itself to be a mediator between the government and large health care companies. With over $1.2 billion in assets and no debt, it looks like one of the strongest non – pharmaceutical companies.
The early months of 2010 will see the stock market quietly gain ground on huge losses in 2008. Coming from the abyss, some publicly traded companies will immediately feel the benefits of a better economy, while others will not be affected until the end of 2010.
In 2010, Wall Street will bet on the positive direction of the economy, interest rates, and inflation. However, in the first quarter, smart investors may also benefit from good research and strong picks. Strong individual results – especially unexpected earnings and sales growth – could help certain stocks stand out from the crowd.
The price of gold hit $1,100 an ounce today on signs of a weakening dollar. With the stock market as volatile as ever with the coming end of a bullish market, many investors are thinking about buying gold. Gold has always outperformed other commodities during times of economic uncertainty and this “super-recession” is no different.
Here are some things to consider in order to understand if buying gold is the best idea for you:
During the early days of the recession, as stock markets were vacillating between gains and losses, investors had hopes that 2009 would bring about a slow economic recovery as the housing market stabilized. However, two quarters later, with stocks at their lowest levels since the mid 90s and no turnaround in sight, Americans are bracing for what could be a devastating depression. The pain has been felt around the world with 8 members of the European Union pleading for help, loss of jobs all around the world, and a drop in commerce levels.
This is the second part of SmarterSpend.com series on managing your stock market funds.
In the first part of my series, I highlighted the best performing stocks in the 2008 year, including the dismal third quarter, and analyzed the significance of the recession on stock performance in the upcoming fiscal year. I will use the same approach to identify 25 key stocks that every investor should avoid in 2009. The key to finding successful stocks in a recession this deep is identifying the effects of the lack of money supply to consumers, businesses, and corporations.
In the past four months, the US stock markets have found themselves in a state of havoc. The Dow Jones has now fallen almost 50% from its previous highs in 2007, NASDAQ dropped from about 2,700 to a current level of 1,400, and the S & P has also dropped in similar proprtions, from a high of 1540 in the third quarter of 2007, to a current level of 764.90. Whole companies have been wiped out in a matter of days from rapid drops, retirement funds have lost trillions of dollars, American automobile manufacturers were barely saved with emergency government funding, and the entire American banking system is on the verge of collapse.
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