tag:blogger.com,1999:blog-4299682317669477215Fri, 21 Feb 2025 07:24:09 +0000http://investingwithdg.blogspot.com/noreply@blogger.com (dg)Blogger44125tag:blogger.com,1999:blog-4299682317669477215.post-4148219497652632667Sun, 23 May 2010 01:14:00 +00002010-05-22T21:18:57.576-04:00 The following are the ten most important economic issues American government should focus on moving forward, in my opinion. Some speak directly about economics, and others, such as education and cyber-security, impact it indirectly. 1.) Adopt an energy policy centralized around alternative fuels, primarily algae biofuels, solar, and wind energy. Government subsidies and sponsorships of programshttp://investingwithdg.blogspot.com/2010/05/10-areas-to-better-americas-long-term.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-2540513840220882968Sun, 07 Mar 2010 04:37:00 +00002010-03-06T23:38:18.715-05:00 If anyone ever doubted how irrationality can sometimes dominate market behavior, then a quick analysis of the effect on stock prices due to the threat of war can elucidate the facts. In almost every instance of the threat of war, stock prices immediately fell in dramatic fashion. Investors often feel pessimistic and distraught at the thought of mass destruction and the potential loss of lives. http://investingwithdg.blogspot.com/2010/03/analyzing-effect-of-war-on-stock-prices.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-529287803266163429Thu, 04 Mar 2010 05:25:00 +00002010-03-04T00:25:11.665-05:00Here are the things I've been focusing on the past month and will continue to focus on moving forward. 1.) Greece, Europe, and Euro: It's imperative for traders to take advantage of any perceived weakness in the U.S. stock market due to the situation in Greece. Their economy is only 1/5th the size of California's and U.S. banks have little exposure to Greek's debt. The EU has pledged to aid http://investingwithdg.blogspot.com/2010/03/update-on-markets-economy-332010.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-7202760138502907252Thu, 11 Feb 2010 03:15:00 +00002010-02-10T22:15:44.910-05:00Australia's unemployment rate just came in at 5.3%, better than the expected 5.6%. The AUD is up 115 points against the USD. Check this post out for information about investing in Australia. http://investingwithdg.blogspot.com/2010/02/australias-unemployment-rate-at-53.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-5836111167778444132Wed, 10 Feb 2010 06:11:00 +00002010-02-10T01:16:03.734-05:00China's GDP statistics are often viewed with a dose of skepticism. The government frequently sets targets and those targets are almost always surpassed. When the government aimed for 8% full-year GDP growth, they got 10.7%  growth. If an investor is suspicious of these numbers, is there a way to get at the real number or at least find out whether or not this number is completely off and http://investingwithdg.blogspot.com/2010/02/investigating-validity-of-chinas-gdp.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-8192772817496570970Sun, 07 Feb 2010 17:36:00 +00002010-02-07T12:36:24.408-05:00There will be little economic data released this upcoming week. International trade will be released on Wednesday, Retail Sales / Jobless Claims / Business Inventories on Thursday, and Consumer Sentiment on Friday. Of these reports, the biggest market mover will be jobless claims since the 4week average has rose three weeks in a row, the unemployment report had conflicting signals, and the press http://investingwithdg.blogspot.com/2010/02/week-ahead-2082010-2122010.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-4635967202720775291Fri, 05 Feb 2010 20:39:00 +00002010-02-05T15:39:45.586-05:00Today's market action has so far been extremely encouraging. As the market has rallied off its lows, I've entered into high-beta names, such as Trinity Solar (TSL) and Freeport McMoran (FCX). I've placed tight stops on these trades and look to be out in two-weeks' time. For a long-term view, I'll continue to follow the earnings and economic data. Unemployment came in at a much http://investingwithdg.blogspot.com/2010/02/in-tsl-and-fcx.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-6993277116224535874Fri, 05 Feb 2010 02:53:00 +00002010-02-04T21:53:46.368-05:00Jobless claims rose 8,000 to 480k last week, pushing the 4-week moving average up for the third consecutive week after 19 straight weeks of declines. As a leading indicator into the health of the labor market, this statistic gives me a bearish sentiment. Further, stripping out personal investment in inventory in last week's GDP report takes the number to 2.2%, much less than the reported 5.7%. http://investingwithdg.blogspot.com/2010/02/jobless-claims-analysis-20410.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-1150896789876426748Tue, 02 Feb 2010 03:32:00 +00002010-02-01T22:40:49.221-05:00From the Energy Information Administration: (Chart cut-off slightly, but data shown is relevant) Crude Oil Imports (Top 15 Countries) (Thousand Barrels per Day) CountryNov-09Oct-09YTD 2009Nov-08YTD 2008 CANADA1,9841,8581,9272,0281,949 MEXICO9511,0151,0991,2961,192 NIGERIA948853748775927 SAUDI ARABIA8379389981,4871,514 VENEZUELA8098799831,0801,040 IRAQ458499460476636 ANGOLA408437466450499 http://investingwithdg.blogspot.com/2010/02/largest-oil-exporting-countries-to-us.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-7967116230220339394Thu, 28 Jan 2010 22:37:00 +00002010-01-28T17:37:15.899-05:00Jobless claims came in today at 470k, higher than the upper end of the consensus range. This bodes negatively for the labor market and is the second consecutive week the 4-week moving average increased. This, coupled with the lackluster durable goods order, is a worrisome signal about our economy's current rebound trajectory. Unemployment is stalled at 10% while jobless claims have stopped http://investingwithdg.blogspot.com/2010/01/overview-of-todays-market-action.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-6803704017906435284Wed, 27 Jan 2010 04:14:00 +00002010-01-26T23:28:12.152-05:00Apple's strategic intent in releasing its tablet has hurt competitors in ways you may not have expected. I first recall learning about the tablet device a few months ago, after someone reported seeing truckloads of books being unloaded at Apple's offices. As more information "leaked" about the tablet device, Apple benefited by forcing consumers to wait for their new product release instead of http://investingwithdg.blogspot.com/2010/01/apples-strategic-intent.htmlnoreply@blogger.com (dg)1tag:blogger.com,1999:blog-4299682317669477215.post-1645856467771002655Wed, 27 Jan 2010 03:36:00 +00002010-01-26T22:36:08.542-05:00Apple unveils its tablet device New Homes Sales - 10:00AM FOMC Announcement  2:15PM- Interest rates are expected to remain the same Notre Dame at Villanova (3)  7:00PM - ESPN - College Basketball :) President's State of the Union Address 9:00PM - Follow his discussion on the budget deficit http://investingwithdg.blogspot.com/2010/01/things-to-watch-for-tommorrow.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-3195195965150977447Tue, 26 Jan 2010 03:00:00 +00002010-01-25T22:00:43.417-05:00If uncertainty and volatility are to decrease in the financial markets, it's imperative for Bernanke to be reappointed as Fed Chairman. Bernanke has performed well in the midst of the "Great Recession", although the long-term ramifications of his policies have yet to be realized. The stock market is in love with his policy of low-interest rates, fueling the economy with cheap borrowing. Over the http://investingwithdg.blogspot.com/2010/01/analyzing-bernankes-prospects-for.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-2490467580893093267Mon, 25 Jan 2010 01:56:00 +00002010-01-24T20:56:38.505-05:00A slew of economic data will be released this week - Existing Home Sales on Monday, Consumer Confidence on Tuesday, Fed meeting on Wednesday, Durable Goods Orders / Jobless Claims on Thursday, and GDP / Consumer Sentiment on Friday. Whereas last week the earnings reports moved the markets, this week the economic data will assuredly be the driving force. Now is definitely a time to be on your http://investingwithdg.blogspot.com/2010/01/week-ahead-125-129.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-6237909216723765663Fri, 22 Jan 2010 02:04:00 +00002010-01-21T21:04:47.734-05:00From thewhitehouse.gov: The proposal would: 1.   Limit the Scope - The President and his economic team will work with Congress to ensure that no bank or financial institution that contains a bank will own, invest in or sponsor a hedge fund or a private equity fund, or proprietary trading operations unrelated to serving customers for its own profit. 2.   Limit the Size - The http://investingwithdg.blogspot.com/2010/01/obamas-proposal-to-place-restrictions.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-5265149746011714819Thu, 21 Jan 2010 18:20:00 +00002010-01-21T13:20:38.926-05:00The past two days in the stock market have been marked by volatility and uneasiness. The VIX is up 16% as I write this and the Dow is down more than 200 points. For those of you who have followed some of my previous posts, I often comment on the jobless claims number. Today, the number came in at 482k, easily surpassing the upper end of the consensus range and pointing to a halt in the http://investingwithdg.blogspot.com/2010/01/analysis-on-current-state-of-markets.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-1359393464389086976Wed, 20 Jan 2010 04:27:00 +00002010-01-19T23:27:16.860-05:00The Euro just hit a 4-month low against the USD on Greece's debt concerns. It looks like it can drop further. Here's the article from Bloomberg. http://www.bloomberg.com/apps/news?pid=20601087&sid=aTlPpu2CgJsg&pos=2 Recall that on Dec. 8, Fitch downgraded Greece's debt on concerns about an uncontrollable budget deficit. Greece has the 33rd largest GDP in the world. Here's a chart of thehttp://investingwithdg.blogspot.com/2010/01/euro-hits-4-month-low.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-142967775858929130Tue, 19 Jan 2010 22:55:00 +00002010-01-19T17:55:00.837-05:00Here are some useful sources that I check frequently in order to grasp an understanding of what's going on in the markets. Flow of Funds Report - The most undervalued report on economics http://www.federalreserve.gov/releases/z1/Current/z1.pdf Federal Reserve of San Francisco Research - Most undervalued website on economics: Provides amazing research. http://www.frbsf.org/ Global Economic http://investingwithdg.blogspot.com/2010/01/useful-links.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-3499015760752769416Tue, 19 Jan 2010 02:53:00 +00002010-01-18T22:58:25.246-05:00This shortened 4-day trading week will be sure to pack as much volatility and volume as a 5-day week. For economic news, we have the Bank of Canada rate statement tomorrow morning, U.S. PPI and Housing Starts Wednesday, and Jobless Claims / Philly Fed Survey on Friday. However, the real focus this week will be on the slew of earnings reports. The following companies report earnings this week. http://investingwithdg.blogspot.com/2010/01/week-ahead-119-122.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-3866384296307045935Fri, 15 Jan 2010 22:09:00 +00002010-01-15T19:04:56.842-05:00Last night I attended a value investment seminar sponsored by our School of Business here at Villanova. Here were some things I picked up on investing from our speaker: 1.) Look for small-cap companies that are unfavored and have little/no analyst coverage. These companies often have wide discrepancies between their stock price and intrinsic value. 2.) Look for companies with http://investingwithdg.blogspot.com/2010/01/insights-from-value-investment-seminar.htmlnoreply@blogger.com (dg)3tag:blogger.com,1999:blog-4299682317669477215.post-281799621669588963Fri, 15 Jan 2010 16:57:00 +00002010-01-15T11:57:04.010-05:00I just sold my GBP/USD position for a 105 pip profit. I believe there is more downside in this currency pair in the coming week but I exited mainly because of the oversold conditions of the shorter time-frame charts. I'm expecting a fairly substantial bounce from my selling point and I may consider re-entering sometime early next week. Here's a 15 minute chart. http://investingwithdg.blogspot.com/2010/01/sold-gbpusd-at-16224-for-105-pip-profit.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-3422937314829842095Thu, 14 Jan 2010 18:03:00 +00002010-01-14T14:35:28.222-05:00I recently established a short GBP / long USD position, mostly based on technical analysis indicators. The MACD indicators in the GBP/USD are overbought on the 4hr, 2hr, and 15 minute charts. Further, the chart is right at the neckline on a head & shoulders pattern on the daily chart. The blue line on the chart below represents my entry point, and coincidently, is the neckline of the head andhttp://investingwithdg.blogspot.com/2010/01/short-gbpusd-at-16329.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-9010297945897819457Thu, 14 Jan 2010 01:03:00 +00002010-01-13T20:03:28.946-05:00Tomorrow I'll be focusing on Retail Sales and Jobless Claims. Retail Sales are estimated to come in at .4% MoM growth after a 1.3% surge in November. New motor vehicle sales and rising gasoline prices lead me to believe this .4% number will be beat tomorrow. On the jobless claims side, the consensus estimate is at 437k. Expect the 4-week moving average to continue its downward descent, which http://investingwithdg.blogspot.com/2010/01/stock-market-focus-for-tomorrow-11310.htmlnoreply@blogger.com (dg)0tag:blogger.com,1999:blog-4299682317669477215.post-8038608525673454164Wed, 13 Jan 2010 04:37:00 +00002010-01-12T23:42:06.440-05:00I was playing around with a financial calculator tonight and wanted to shed some light on some pretty neat results about compounding and investing. A $10,000 investment with a 15% rate of return will grow to $40,455 in 10 years.  If held for 20 years, that $10,000 would grow to $163,665. If held for 50 years, that $10,000 would grow to $10,836,574. Now here's the cool part. If you can http://investingwithdg.blogspot.com/2010/01/power-of-compounding.htmlnoreply@blogger.com (dg)1tag:blogger.com,1999:blog-4299682317669477215.post-3362419308760197280Tue, 12 Jan 2010 23:24:00 +00002010-01-12T18:24:02.126-05:00The Sharpe Ratio is a measure of excess return over risk. In a portfolio context, excess return is equal to the return on the portfolio minus the risk-free rate. Risk is measured as the standard deviation of those returns. Thus, the formula is ( Rp - Rf ) / SD, where Rp = return on the portfolio, Rf = risk-free rate, and SD = standard deviation. The risk-free rate is generally the rate on 10-yearhttp://investingwithdg.blogspot.com/2010/01/sharpe-ratio.htmlnoreply@blogger.com (dg)0