Oil prices have dropped 55 percent from their peak in July and they could go lower. That’s what you want, isn’t it? Cheaper gas and cheaper heating fuel allows you to spend more on things you really need – like your kids’ education or appliances.
Government bailouts for private banks are having a strange impact on bond markets, says Andrew Gordon. Fed guarantees have investors swapping traditionally safe government sponsored enterprise bonds for corporate bank bonds.
You can stick a fork in the U.S. economy. It’s done. Hope for an abbreviated European slowdown has also evaporated. So now the world turns its desperate eyes towards the developing world. And it ain’t looking good there either.
Andrew Gordon says major investors are being forced to liquidate assets to raise cash meet margin calls.
Andrew Gordon at Investor’s Daily Edge says “the crap is about to hit the fan” for homebuilders.
Citigroup (NYSE:C) failed bid for Wachovia (NYSE:WB) would have expanded Citi’s deposit base and upgraded their bank infrastructure. But Wells Fargo (NYSE:WFC) swooped in and offered Wachovia $6 more a share and Citi’s plan went up in smoke as did it’s share price. But Citi is great value right now, according to Andrew Gordon.
The markets haven’t exactly soared on the passing of the bailout bill. But Andrew Gordon says some firms are going to make huge profits from the bill.
Andrew says, “Real estate companies, hedge funds, and private-equity firms have raised tens of billions this year alone for the specific purpose of buying distressed debt. The bailout is about to kick off the biggest fire sale of real estate in US history.“
However, these firms may also inherit heaps of bad debt if they don’t do their research properly. There will be plenty of big losers for every big winner from this bailout.
The turmoil in US stock markets is making all the headlines. But BRIC nations are facing a much deeper crisis in their stock markets.
On Monday, authorities halted trading on Brazil’s Bovespa for 30 minutes after it tumbled 10%. Trading in Russia was frozen on several occasions in the last two weeks to prevent an all-out collapse of the market. And China’s CSI Index has lost 58% of its value so far this year.
Despite recent setbacks, however, Andrew Gordon reckons Brazil is the most likely of the pack to weather the current financial storm
Congress today rejected the Hank Paulson’s $700 billion bailout plan. Traders sent the Dow and other major US stock indexes crashing on the news.
Andrew Snyder says the market’s current fascination the bailout sets up a great contrarian buying opportunity.
For example, the $25 billion bailout for Detroit’s automakers should have auto stocks soaring. But Wall Street gloom is dragging them down. Andrew Tenneco (NYSE:TEN) stands to make the biggest gains when things turn around…
The US dollar index has jumped 10% since early July.
This has had a negative effect on commodity prices. It has also brought considerable relief to consumers in the form of lower gas prices.
However, US exporters have watched their products become 10% more expensive in just two months.
Andrew Gordon says shorting US stocks with a heavy reliance on overseas sales is a great way to profit from US dollar strength. He lists the ten companies most vulnerable to further gains in the buck.
