[This is a continuation of “10 Bold Predictions for 2011: Part 1”] 6. Individual investors finally start to re-enter U.S. equities in a major way in 2011 as the need to build savings in the face of looming retirements becomes a major consumer concern, and rising savings levels… Read More
Results
As you continually assess current events for any impact on your portfolio, you also need to spend time thinking about what events may be on the horizon. And although none of us has a crystal ball, it’s important to try to anticipate the direction of economics, sector activity, politics and any other issues that may affect the investment environment. The list below contains possible scenarios for the next 12 months that could impact your portfolio in a meaningful way. 1. New jobless claims fall below 400,000 in the first quarter, and meaningful job… Read More
As you continually assess current events for any impact on your portfolio, you also need to spend time thinking about what events may be on the horizon. And although none of us has a crystal ball, it’s important to try to anticipate the direction of economics, sector activity, politics and any other issues that may affect the investment environment. The list below contains possible scenarios for the next 12 months that could impact your portfolio in a meaningful way. 1. New jobless claims fall below 400,000 in the first quarter, and meaningful job creation begins in earnest in 2011 as companies realize that they’ve squeezed out all possible productivity enhancements and need to re-build depleted workforces. The unemployment rate is slow to fall, as previously discouraged workers start to look for work again. But investors focus on the monthly jobs creation number instead of the actual unemployment rate. 2. Noting the impressive synergies that Delta (NYSE: DAL) derived from its merger with Northwest (which were only belatedly appreciated by investors), investors continue to bid up shares of UAL… Read More
When I went to the Berkshire Hathaway (NYSE: BRK-B) annual meeting in 2009, there was something I really wanted to do. No, it wasn’t a chat with Warren Buffett. That’s almost impossible at the yearly “Woodstock for Capitalists,” and only first-timers make the trek… Read More
Even as we look to post 10% to 15% annual gains for our portfolios, the occasional 50% gainer never hurts. So I like to look at the market’s biggest winners to see what’s working right now. Some of these big gainers may even have more room to run. Read More
As an income investor, I occasionally feel forced to choose between growth and a hefty dividend. Finding a high yielding stock that also has good growth potential is a rarity. One reason for that may be that fast-growing companies often don’t pay a dividend. Instead, these companies re-invest… Read More
The Republican and Democratic positions on the long-term budget woes are clear: The GOP has pushed strongly for sharp spending cuts to help bring down the national debt, while the Democrats believe current spending efforts to get the economy on track now will boost government revenue and close… Read More
One of the guys in the office is just getting his start in the financial world. In fact, he just celebrated his 24th birthday. I told him, “I have clothes in my closet older than you.” He looked shocked. I’m not a big shopper, but when I… Read More
Bargains are getting increasingly difficult to find in the U.S. stock market. Gone are the fire sales that existed after the financial crisis. The S&P 500 has rallied more than 80% from the March 2009 lows and a rising prognosis for economic growth in 2011 has lifted the stock market… Read More
I live a rich life, one that has far exceeded my wildest dreams. I don’t mean rich as in uber-investor Warren Buffett or Facebook wunderkind Mark Zuckerberg. It’s not something I measure by the number of zeros that follow a dollar sign. I measure it with something… Read More
Carl Icahn has a pretty simple formula for investing: Find a company with unappreciated assets and a sleepy management team, rattle a few cages, and wait for shares to finally appreciate. That’s what he did with Motorola (NYSE: MOT) and many other companies over the years. [Read my take on that here.] He doesn’t always succeed, but several big hits have pushed him into the billionaire’s club (he’s actually worth an estimated $8.9 billion, according to Forbes). He’s at it again. Icahn has been buying up shares of natural gas firm Chesapeake Energy (NYSE:… Read More
Carl Icahn has a pretty simple formula for investing: Find a company with unappreciated assets and a sleepy management team, rattle a few cages, and wait for shares to finally appreciate. That’s what he did with Motorola (NYSE: MOT) and many other companies over the years. [Read my take on that here.] He doesn’t always succeed, but several big hits have pushed him into the billionaire’s club (he’s actually worth an estimated $8.9 billion, according to Forbes). He’s at it again. Icahn has been buying up shares of natural gas firm Chesapeake Energy (NYSE: CHK), and is gearing up some fresh cage rattling. Icahn just announced in a 13-D filing that his firm now owns 5.8% of the company and “intends to seek to continue to have conversations with the company’s management to discuss the business & operations of the company and the maximization of shareholder value.” There’s one small problem: Chesapeake’s CEO Aubrey McClendon is stubborn as a mule, and not likely to warm to Icahn’s overtures. As I noted this summer, McClendon thinks he’s smarter than his peers and can identify cheap assets better than anyone else. But I… Read More