Sorry... Sorry ... Sorry...
It had been more than two months since my last posting and I hope nobody was missing me :)
If you did, I am sorry...but if you didn't... phew! thank you for that!
Well, I was totally engrossed in an online game a couple of months ago and it had consumed most of my leisure time.
Till today, I am still playing it and very much addicted to it.
Anyway, it does successfully pull my attention away from the bearish stock market and that may be a blessing in disguise to me.
Hehehehe... cheerios!
JJ
For my friends who really did miss me --> though I can't promise I will be updating my blog regularly, but I certainly thankful if you continue to keep in touch with me!
Saturday, March 1, 2008
Wednesday, December 12, 2007
Fed cuts rates by a quarter point
Ben Bernanke & Co. lower a key interest rate for the third consecutive time to help stave off recession. Markets plunge as Wall Street was hoping for a bigger cut.
NEW YORK (CNNMoney.com) -- The Federal Reserve lowered an important short-term rate by a quarter of a percentage point Tuesday, the latest in a series of rate cuts that the central bank hopes will stimulate an economy some fear is on the brink of a recession.
But stocks plunged following the Fed's announcement as Wall Street was disappointed the Fed did not act more aggressively. The Dow dropped nearly 300 points, or 2.1 percent, while the S&P and Nasdaq each fell about 2.5 percent.
"The Fed needed to cut more now in order to fend off the credit crisis that has intensified in the past month," said John Derrick, director of research at U.S. Global Investors, a money management firm in San Antonio with more than $5.5 billion in assets.
This was the third straight time that Fed Chairman Ben Bernanke and fellow policy makers decided to cut its federal funds rate, an overnight bank lending rate that affects how much interest consumers pay on credit cards, home equity lines of credit and auto loans.
The federal funds rate now stands at 4.25 percent. The central bank also cut its discount rate, which is what banks pay to borrow directly from the Fed, by a quarter-point to 4.75 percent on Tuesday.
One member of the Fed's policy making committee, Federal Reserve Bank of Boston President Eric Rosengren, voted for a half-point cut in the fed funds rate.
In fact, some investors had been holding out hope that the Fed would lower rates by a half of a percentage point as it did in September since several banks have been forced in the past few months to take massive writedowns due to exposure to bad mortgage loans.
"The market is dropping hard. I think that investors probably priced in a little more than a quarter-point cut," said Randy Carver, president of Carver Financial Services, a Mentor, Ohio-based investment firm with $680 million in assets under management.
Leading up to Tuesday's meeting, several economists indicated that the Fed may need to lower rates several more times in early 2008 in order to keep the economy from slipping into a prolonged slump.
But the Fed's statement reflected a less dire view of the economy than what many on Wall Street believe - a possible sign that the central bank might not cut rates at its next meeting in January.
The Fed acknowledged that "economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending." It also said that "strains in financial markets have increased in recent weeks."
The Fed added that "some inflation risks remain" and the Fed "will continue to monitor inflation developments carefully."
That tone disappointed investors, who had been hoping the Fed would take more decisive action to clean up the mortgage mess that's plaguing Wall Street and is starting to take its toll on Main Street.
"This was a big mistake. They should have at least cut the discount rate by 50 points. I think that was a big disappointment to Wall Street," said William Rutherford, president of Rutherford Investment Management, a money manager based in Portland, Ore. "The Fed must contain the housing problem. If it doesn't, we are definitely heading into a recession."
Another investment strategist suggested that the Fed, despite what it said Tuesday, will continue to lower rates in January and perhaps several more times in 2008.
"The good news is that the Fed is going to be more flexible. Even though the market is selling off, there has to be more to come. This is not the last rate cut," said Hank Smith, chief investment officer of Haverford Investments, a Radnor, Pa.-based money manager with $6.5 billion in assets under management.
Concerns that the impact of the subprime mortgage crisis is spreading sparked President George W. Bush and Treasury Secretary Henry Paulson to unveil a plan last week that would freeze interest rates for some subprime borrowers whose adjustable-rate mortgages are scheduled to reset in 2008.
But one market expert said investors were wrong to think that the Fed would keep cutting rates drastically just to save banks and troubled borrowers.
"The Fed is not going to bail out the market. Time will heal these wounds. People don't want to hear that but it's the real world," said Rich Berg, chief executive officer of Performance Trust Capital Partners, a Chicago-based bond trading firm.
Carver said one reason the Fed may have decided to not cut rates by a half-point is because it is still waiting to see how consumer spending holds up during the holidays. He argues that the Fed won't want to cut rates too drastically if the economy doesn't really need it.
To that end, Carver pointed out that the labor report for November, released last Friday, showed no major ill effects of the mortgage crisis since employers added more jobs than expected and the unemployment rate held steady.
"The Fed is looking two to three months out and doesn't want to cut too much if there is some decent strength in the economy," Carver said.."The Fed doesn't want to overstimulate the economy since that could cause bigger problems down the road."
NEW YORK (CNNMoney.com) -- The Federal Reserve lowered an important short-term rate by a quarter of a percentage point Tuesday, the latest in a series of rate cuts that the central bank hopes will stimulate an economy some fear is on the brink of a recession.
But stocks plunged following the Fed's announcement as Wall Street was disappointed the Fed did not act more aggressively. The Dow dropped nearly 300 points, or 2.1 percent, while the S&P and Nasdaq each fell about 2.5 percent.
"The Fed needed to cut more now in order to fend off the credit crisis that has intensified in the past month," said John Derrick, director of research at U.S. Global Investors, a money management firm in San Antonio with more than $5.5 billion in assets.
This was the third straight time that Fed Chairman Ben Bernanke and fellow policy makers decided to cut its federal funds rate, an overnight bank lending rate that affects how much interest consumers pay on credit cards, home equity lines of credit and auto loans.
The federal funds rate now stands at 4.25 percent. The central bank also cut its discount rate, which is what banks pay to borrow directly from the Fed, by a quarter-point to 4.75 percent on Tuesday.
One member of the Fed's policy making committee, Federal Reserve Bank of Boston President Eric Rosengren, voted for a half-point cut in the fed funds rate.
In fact, some investors had been holding out hope that the Fed would lower rates by a half of a percentage point as it did in September since several banks have been forced in the past few months to take massive writedowns due to exposure to bad mortgage loans.
"The market is dropping hard. I think that investors probably priced in a little more than a quarter-point cut," said Randy Carver, president of Carver Financial Services, a Mentor, Ohio-based investment firm with $680 million in assets under management.
Leading up to Tuesday's meeting, several economists indicated that the Fed may need to lower rates several more times in early 2008 in order to keep the economy from slipping into a prolonged slump.
But the Fed's statement reflected a less dire view of the economy than what many on Wall Street believe - a possible sign that the central bank might not cut rates at its next meeting in January.
The Fed acknowledged that "economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending." It also said that "strains in financial markets have increased in recent weeks."
The Fed added that "some inflation risks remain" and the Fed "will continue to monitor inflation developments carefully."
That tone disappointed investors, who had been hoping the Fed would take more decisive action to clean up the mortgage mess that's plaguing Wall Street and is starting to take its toll on Main Street.
"This was a big mistake. They should have at least cut the discount rate by 50 points. I think that was a big disappointment to Wall Street," said William Rutherford, president of Rutherford Investment Management, a money manager based in Portland, Ore. "The Fed must contain the housing problem. If it doesn't, we are definitely heading into a recession."
Another investment strategist suggested that the Fed, despite what it said Tuesday, will continue to lower rates in January and perhaps several more times in 2008.
"The good news is that the Fed is going to be more flexible. Even though the market is selling off, there has to be more to come. This is not the last rate cut," said Hank Smith, chief investment officer of Haverford Investments, a Radnor, Pa.-based money manager with $6.5 billion in assets under management.
Concerns that the impact of the subprime mortgage crisis is spreading sparked President George W. Bush and Treasury Secretary Henry Paulson to unveil a plan last week that would freeze interest rates for some subprime borrowers whose adjustable-rate mortgages are scheduled to reset in 2008.
But one market expert said investors were wrong to think that the Fed would keep cutting rates drastically just to save banks and troubled borrowers.
"The Fed is not going to bail out the market. Time will heal these wounds. People don't want to hear that but it's the real world," said Rich Berg, chief executive officer of Performance Trust Capital Partners, a Chicago-based bond trading firm.
Carver said one reason the Fed may have decided to not cut rates by a half-point is because it is still waiting to see how consumer spending holds up during the holidays. He argues that the Fed won't want to cut rates too drastically if the economy doesn't really need it.
To that end, Carver pointed out that the labor report for November, released last Friday, showed no major ill effects of the mortgage crisis since employers added more jobs than expected and the unemployment rate held steady.
"The Fed is looking two to three months out and doesn't want to cut too much if there is some decent strength in the economy," Carver said.."The Fed doesn't want to overstimulate the economy since that could cause bigger problems down the road."
Friday, December 7, 2007
Subprime crisis plan boosts Wall Street
New York (dpa) - Homebuilders and financial companies led US stocks higher Thursday after President George W Bush announced a plan aimed at reversing a tide of defaults on subprime home mortgages.
Countrywide Financial Corp, the largest US mortgage lender, surged 19 per cent for the day's biggest gain in the benchmark Standard & Poor's 500 Index. Fannie Mae, the biggest source of financing for US home loans, rose 7 per cent.
A deal the Bush administration brokered among financial lenders and investors in securities linked to subprime mortgages includes a possible five-year freeze in the interest rate paid by struggling homeowners on their loans.
Countrywide, Fannie Mae and other financial firms have been hard- hit by the subprime meltdown, which has caused billions of dollars in losses and turmoil in financial markets.
The S&P 500 rose 22.33 points, or 1.5 per cent, to 1,507.34. The blue-chip Dow Jones Industrial Average added 174.93, or 1.3 per cent, to 13,619.89. The technology-heavy Nasdaq Composite Index gained 42.67, or 1.6 per cent, to 2,709.03.
The US dollar slipped to 68.37 euro cents in New York from 68.42 on Wednesday. The dollar rose to 111.27 Japanese yen from 110.88.
Gold rose 3.40 dollars to 807.10 dollars per fine ounce.
<---------- Finally he has decided to do something about it
Countrywide Financial Corp, the largest US mortgage lender, surged 19 per cent for the day's biggest gain in the benchmark Standard & Poor's 500 Index. Fannie Mae, the biggest source of financing for US home loans, rose 7 per cent.
A deal the Bush administration brokered among financial lenders and investors in securities linked to subprime mortgages includes a possible five-year freeze in the interest rate paid by struggling homeowners on their loans.
Countrywide, Fannie Mae and other financial firms have been hard- hit by the subprime meltdown, which has caused billions of dollars in losses and turmoil in financial markets.
The S&P 500 rose 22.33 points, or 1.5 per cent, to 1,507.34. The blue-chip Dow Jones Industrial Average added 174.93, or 1.3 per cent, to 13,619.89. The technology-heavy Nasdaq Composite Index gained 42.67, or 1.6 per cent, to 2,709.03.
The US dollar slipped to 68.37 euro cents in New York from 68.42 on Wednesday. The dollar rose to 111.27 Japanese yen from 110.88.
Gold rose 3.40 dollars to 807.10 dollars per fine ounce.
<---------- Finally he has decided to do something about it
Monday, December 3, 2007
华侨银行李彩莲： 目前投资股市 石油或抗跌股可作首选
次贷阴影仍然笼罩市场，加上已经步入年底，股市未来几个星期将继续出现短期波动。华侨银行投资研究部主管李彩莲认为，投资者如果要在这个时候进场，应该谨慎选择股项，优先考虑石油股或抗跌股。
各地股市今年来频频创高峰，虽然经过11月的调整后，股价从高处下滑，但仍然取得可观的增长，表现最出色的是石油相关股，例如Swiber控股今年来便上升了245％，而种植股也因为油价上升而间接受惠，金光农业资源(Golden Agri)起了217％。
此外，龙筹股今年来的表现也不错，中远投资(Cosco)领先群雄，今年起了161％。
李彩莲看好石油类股与龙筹股的强劲势头将延续到新的一年。
李彩莲昨天在该银行主办的一个小型讨论会上表示，过去三年她都一直在推荐石油股，当时的油价介于每桶40美元到70美元，如今已经涨至90美元，她相信在需求的带动下，油价将继续保持在高水平。
她指出，石油公司自2004年当油价还在每桶40美元的时候便已经开始投资，目前的油价意味盈利率越来越高，而即使油价下调20％或30％，石油公司还是有利可图。
全球各地的岸外钻油设施目前都几乎全面投产，而大多数的升降式钻油台(jackup rig)的年龄已超过25年，在这个大前提下，李彩莲认为受惠最大的将是吉宝企业(KepCorp)、胜科海事(SembCorp)、中远投资、以斯拉控股(Ezra Holdings)。
至于龙筹股方面，她建议基建股、消费股、房地产股，以及石油股。
李彩莲透露，她与一些获得合格境内机构投资者(QDII)资格的基金经理会面时，他们都表示如果在香港以外的股市投资，他们将选择新加坡，因此本地股市未来将不缺资金。然而，许多QDII的基金经理对于新加坡市场还不是很熟悉，因此她预期要真正看到QDII资金流入，恐怕还需要一年的时间。
当第一波的QDII资金流入时，由于对本地股市不熟悉，基金经理相信会选择市值与知名度较高的股票，或是他们所熟悉的龙筹股。
跟区域股市比较，本地股市的股价与账面价值比率(Price-to-Book)相对低，少于2倍，而本益比也比许多市场具吸引力，除了石油股和龙筹股之外，李彩莲认为投资者也可考虑新加坡报业控股(SPH)、新科工程(ST Engineering)、SMRT企业、新航(SIA)等抗跌股。
各地股市今年来频频创高峰，虽然经过11月的调整后，股价从高处下滑，但仍然取得可观的增长，表现最出色的是石油相关股，例如Swiber控股今年来便上升了245％，而种植股也因为油价上升而间接受惠，金光农业资源(Golden Agri)起了217％。
此外，龙筹股今年来的表现也不错，中远投资(Cosco)领先群雄，今年起了161％。
李彩莲看好石油类股与龙筹股的强劲势头将延续到新的一年。
李彩莲昨天在该银行主办的一个小型讨论会上表示，过去三年她都一直在推荐石油股，当时的油价介于每桶40美元到70美元，如今已经涨至90美元，她相信在需求的带动下，油价将继续保持在高水平。
她指出，石油公司自2004年当油价还在每桶40美元的时候便已经开始投资，目前的油价意味盈利率越来越高，而即使油价下调20％或30％，石油公司还是有利可图。
全球各地的岸外钻油设施目前都几乎全面投产，而大多数的升降式钻油台(jackup rig)的年龄已超过25年，在这个大前提下，李彩莲认为受惠最大的将是吉宝企业(KepCorp)、胜科海事(SembCorp)、中远投资、以斯拉控股(Ezra Holdings)。
至于龙筹股方面，她建议基建股、消费股、房地产股，以及石油股。
李彩莲透露，她与一些获得合格境内机构投资者(QDII)资格的基金经理会面时，他们都表示如果在香港以外的股市投资，他们将选择新加坡，因此本地股市未来将不缺资金。然而，许多QDII的基金经理对于新加坡市场还不是很熟悉，因此她预期要真正看到QDII资金流入，恐怕还需要一年的时间。
当第一波的QDII资金流入时，由于对本地股市不熟悉，基金经理相信会选择市值与知名度较高的股票，或是他们所熟悉的龙筹股。
跟区域股市比较，本地股市的股价与账面价值比率(Price-to-Book)相对低，少于2倍，而本益比也比许多市场具吸引力，除了石油股和龙筹股之外，李彩莲认为投资者也可考虑新加坡报业控股(SPH)、新科工程(ST Engineering)、SMRT企业、新航(SIA)等抗跌股。
Wall Street Eyes Jobs, Retail Sales Data
Wall Street Eyes Data on Jobs and Retail Sales, Which Could Make or Break Santa Claus Rally
NEW YORK (AP) -- Wall Street's newfound confidence that interest rates are headed lower may not be enough to fuel a December rally if the economy looks like it's weakening.
This week's reports on the job market and retail sales, along with readings on the manufacturing and service sectors, will be key in determining how well the economy is weathering a housing market that most experts predict will keep deteriorating well into the new year.
The stock market heads into the final lap of 2007 having posted a 3.01 percent rise in the Dow Jones industrial average last week, a 2.81 percent gain in the Standard & Poor's 500 index, and a 2.48 percent advance in the Nasdaq composite index.
It was the best weekly point gain for the Dow -- the blue chips rose nearly 391 -- in more than four years. The advance was driven by hints of an upcoming rate cut from Federal Reserve officials and news that Citigroup Inc., Freddie Mac and E-Trade Financial Corp. were able to raise cash to offset some of their debt.
But the positive week nonetheless capped off the blue-chip index's most negative month in five years. Financial companies still face billions of dollars in write-downs in the fourth quarter. And though oil prices have retreated from record highs, the dollar remains weak against rivals including the euro, the pound and the Canadian dollar -- a trend some argue shows that rates should stay put.
Moreover, even if the Fed does loosen its policy at its Dec. 11 meeting, rate cuts can only go so far in boosting a flagging economy. Last week, Goldman Sachs upped the chances of a recession to between 40 percent and 45 percent, while current and former government officials offered some of the year's most dreary economic outlooks.
Fed Chairman Ben Bernanke said in a speech Thursday at the Charlotte Chamber of Commerce that gross domestic product is slowing "significantly" in the fourth quarter, despite having grown 4.9 percent in the third quarter.
A day earlier, Fed Vice Chairman Donald Kohn said housing is deteriorating at a "very, very rapid" rate, and that "I don't think we have seen the bottom."
And former Treasury Secretary Lawrence Summers, in a somber speech Thursday to bankers at an American Banker/SourceMedia event, said it would be unprecedented, considering the size of the headwinds the economy faces, for expansion to continue.
"It is quite clear that the substantial majority of foreclosures that will take place in this wave have not yet taken place," he said.
Though current Treasury Secretary Henry Paulson has been meeting with mortgage industry officials and regulators about possibly keeping low introductory loan rates from resetting at much higher levels, signs point to a very shaky economy in 2008.
For stocks to rally this month, investors will want evidence that consumers are still spending.
Major retailers, including Wal-Mart Stores Inc. and Target Corp., release November sales figures Thursday, which should shine more light on how strong holiday shopping will be this year.
Data so far have suggested respectable post-Thanksgiving sales, but investors are concerned that shoppers will be hesitant due to still-lofty gas prices and sinking home prices. Wall Street's also worried that sales have been decent so far only because prices have been sharply discounted, which is good for consumers but bad for companies' profits.
Consumer spending relies heavily on employment, so Wall Street will also be closely eyeing, as always, the Labor Department's monthly report on the job market. On Friday, economists surveyed by Thomson/IFR expect the report to show November payrolls rose solidly, but by a smaller amount than in October, and that the unemployment rate ticked up to 4.8 percent from 4.7 percent.
Also this week, the Institute for Supply Management releases its indexes on manufacturing and service sector activity. Economists anticipate that growth in both areas in November was slower than in October.
NEW YORK (AP) -- Wall Street's newfound confidence that interest rates are headed lower may not be enough to fuel a December rally if the economy looks like it's weakening.
This week's reports on the job market and retail sales, along with readings on the manufacturing and service sectors, will be key in determining how well the economy is weathering a housing market that most experts predict will keep deteriorating well into the new year.
The stock market heads into the final lap of 2007 having posted a 3.01 percent rise in the Dow Jones industrial average last week, a 2.81 percent gain in the Standard & Poor's 500 index, and a 2.48 percent advance in the Nasdaq composite index.
It was the best weekly point gain for the Dow -- the blue chips rose nearly 391 -- in more than four years. The advance was driven by hints of an upcoming rate cut from Federal Reserve officials and news that Citigroup Inc., Freddie Mac and E-Trade Financial Corp. were able to raise cash to offset some of their debt.
But the positive week nonetheless capped off the blue-chip index's most negative month in five years. Financial companies still face billions of dollars in write-downs in the fourth quarter. And though oil prices have retreated from record highs, the dollar remains weak against rivals including the euro, the pound and the Canadian dollar -- a trend some argue shows that rates should stay put.
Moreover, even if the Fed does loosen its policy at its Dec. 11 meeting, rate cuts can only go so far in boosting a flagging economy. Last week, Goldman Sachs upped the chances of a recession to between 40 percent and 45 percent, while current and former government officials offered some of the year's most dreary economic outlooks.
Fed Chairman Ben Bernanke said in a speech Thursday at the Charlotte Chamber of Commerce that gross domestic product is slowing "significantly" in the fourth quarter, despite having grown 4.9 percent in the third quarter.
A day earlier, Fed Vice Chairman Donald Kohn said housing is deteriorating at a "very, very rapid" rate, and that "I don't think we have seen the bottom."
And former Treasury Secretary Lawrence Summers, in a somber speech Thursday to bankers at an American Banker/SourceMedia event, said it would be unprecedented, considering the size of the headwinds the economy faces, for expansion to continue.
"It is quite clear that the substantial majority of foreclosures that will take place in this wave have not yet taken place," he said.
Though current Treasury Secretary Henry Paulson has been meeting with mortgage industry officials and regulators about possibly keeping low introductory loan rates from resetting at much higher levels, signs point to a very shaky economy in 2008.
For stocks to rally this month, investors will want evidence that consumers are still spending.
Major retailers, including Wal-Mart Stores Inc. and Target Corp., release November sales figures Thursday, which should shine more light on how strong holiday shopping will be this year.
Data so far have suggested respectable post-Thanksgiving sales, but investors are concerned that shoppers will be hesitant due to still-lofty gas prices and sinking home prices. Wall Street's also worried that sales have been decent so far only because prices have been sharply discounted, which is good for consumers but bad for companies' profits.
Consumer spending relies heavily on employment, so Wall Street will also be closely eyeing, as always, the Labor Department's monthly report on the job market. On Friday, economists surveyed by Thomson/IFR expect the report to show November payrolls rose solidly, but by a smaller amount than in October, and that the unemployment rate ticked up to 4.8 percent from 4.7 percent.
Also this week, the Institute for Supply Management releases its indexes on manufacturing and service sector activity. Economists anticipate that growth in both areas in November was slower than in October.
Friday, November 30, 2007
About Warren Buffet
There was a one hour interview on CNBC with Warren Buffet, the second richest man who has donated $31 billion to charity.
Here are some very interesting aspects of his life:
1.He bought his first share at age 11 and he now regrets that he started too late!
2.He bought a small farm at age 14 with savings from delivering newspapers.
3.He still lives in the same small 3-bedroom house in mid-town Omaha, which he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence.
4.He drives his own car everywhere and does not have a driver or security people around him.
5.He never travels by private jet, although he owns the world's largest private jet company.
6.His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds meetings or calls them on a regular basis. He has given his CEO's only two rules. Rule number 1: do not lose any of your share holder's money. Rule number 2: Do not forget rule number 1.
7.He does not socialize with the high society crowd. His past time after he gets home is to make himself some pop corn and watch Television.
8.Bill Gates, the world's richest man met him for the first time only 5 years ago. Bill Gates did not think he had anything in common with Warren Buffet. So he had scheduled his meeting only for half hour. But when Gates met him, the meeting lasted for ten hours and Bill Gates became a devotee of Warren Buffet.
9.Warren Buffet does not carry a cell phone, nor has a computer on his desk.
His advice to young people: "Stay away from credit cards and invest in yourself and Remember:
A. Money doesn't create man but it is the man who created money.
B. Live your lives, as simple as you are.
C. Don't do what others say, just listen to them, but do what you feel good.
D. Don't go on brand name; just wear those things in which u feel comfortable.
E. Don't waste your money on unnecessary things; just spend on them who really in need rather.
F. After all it's your life then why gives chance to others to rule our life."
Here are some very interesting aspects of his life:
1.He bought his first share at age 11 and he now regrets that he started too late!
2.He bought a small farm at age 14 with savings from delivering newspapers.
3.He still lives in the same small 3-bedroom house in mid-town Omaha, which he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence.
4.He drives his own car everywhere and does not have a driver or security people around him.
5.He never travels by private jet, although he owns the world's largest private jet company.
6.His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds meetings or calls them on a regular basis. He has given his CEO's only two rules. Rule number 1: do not lose any of your share holder's money. Rule number 2: Do not forget rule number 1.
7.He does not socialize with the high society crowd. His past time after he gets home is to make himself some pop corn and watch Television.
8.Bill Gates, the world's richest man met him for the first time only 5 years ago. Bill Gates did not think he had anything in common with Warren Buffet. So he had scheduled his meeting only for half hour. But when Gates met him, the meeting lasted for ten hours and Bill Gates became a devotee of Warren Buffet.
9.Warren Buffet does not carry a cell phone, nor has a computer on his desk.
His advice to young people: "Stay away from credit cards and invest in yourself and Remember:
A. Money doesn't create man but it is the man who created money.
B. Live your lives, as simple as you are.
C. Don't do what others say, just listen to them, but do what you feel good.
D. Don't go on brand name; just wear those things in which u feel comfortable.
E. Don't waste your money on unnecessary things; just spend on them who really in need rather.
F. After all it's your life then why gives chance to others to rule our life."
Stocks Rise Moderately After Big Run-Up
Stocks Extend Rally With Moderate Gains; Investors Await Bernanke Speech
NEW YORK (AP) -- Wall Street extended its rally with modest gains in the major indexes following two days of sharp advances, despite economic readings that painted a mixed picture of the economy.
Though the indexes rose, declining issues narrowly outpaced advancers on the New York Stock Exchange.
On Tuesday and Wednesday, the market posted its biggest two-day rally in five years. Hopes have been growing that financial companies may be starting to recover from the credit crisis and that the Federal Reserve may lower interest rates to calm the markets.
Wall Street's anticipation of a rate cut follows comments from a Fed official Wednesday and comes ahead of a speech by Fed Chairman Ben Bernanke scheduled for Thursday evening.
Oil prices spiked early Thursday then fell back somewhat after a fire at an Enbridge Energy pipeline carrying crude from Canada to the Midwest.
The oil price recovery gave some strength to energy stocks. Meanwhile, financial companies, which had shown gains Wednesday, retreated as did retailers following a weak showing by Sears Holdings Corp.
Aside from a reading on third-quarter growth, economic news didn't offer investors much reason to cheer.
"The data's weak, and says to us that the Fed needs to stay engaged here," said Phil Orlando, chief equity market strategist at Federated Investors.
The Dow Jones industrial average rose 22.28, or 0.17 percent, to 13,311.73. In the three sessions since a pullback Monday, the Dow has jumped 568.29, of 4.5 percent.
Broader stock indicators also rose. The Standard & Poor's 500 index edged up 0.70, or 0.05 percent, to 1,469.72, and the Nasdaq composite index rose 5.22, or 0.20 percent, to 2,668.13.
Declining issues outnumbered advancers by about 9 to 7 on the New York Stock Exchange, where consolidated volume came to 3.43 billion shares compared with 4.45 billion traded Wednesday.
For the week, the Dow is up 2.55 percent, while the S&P is up 2.01 percent and the and the Nasdaq is up 2.75 percent. The pace of the gains, however, has been fast enough that a bit of profit-taking wouldn't come as a surprise on Wall Street. The declines that preceded the latest surge had been sharp as well, however. By the end of the day Monday, the market's major indexes had fallen more than 10 percent from levels in mid-October -- meeting the technical definition of a correction.
Bond prices rose, with the yield on the benchmark 10-year Treasury note falling to 3.94 percent from 4.05 percent late Wednesday. Bond prices and yields move in opposite directions. The dollar rose against other major currencies, while gold prices fell.
Light, sweet crude for January delivery rose 39 cents to settle at $91.01 a barrel in choppy trading on the New York Mercantile Exchange. The rise in oil helped energy companies. Exxon Mobil Corp. rose 67 cents to $88.59, while ConocoPhillips advanced $1.10 to $78.82.
Among financials, Merrill Lynch & Co. fell 38 cents to $57.41, while Bank of America Corp. fell 22 cents to $44.63.
Stocks' fluctuations followed the mixed economic readings.
The Commerce Department reported that economic growth in the third quarter was 4.9 percent, stronger than originally thought, although analysts are anticipating a slowdown in the fourth quarter.
U.S. home prices showed a quarterly decline for the first time in 13 years in the third quarter, according to figures from the Office of Federal Housing Enterprise Oversight, which reported a 0.4 percent drop nationwide for the July-September period.
The economic reports came as investors awaited clarity on the Fed's direction on interest rates. Bernanke was slated to speak Thursday evening before the Chamber of Commerce in Charlotte, N.C.
Investors have sent stocks sharply higher in recent days in part because Fed Vice Chairman Donald Kohn suggested another interest rate cut could be in store. The Fed, which has cut rates at each of its last two meetings, is slated to meet again on Dec. 11.
Wall Street also has been calmed by evidence that companies hurt by subprime problems have found financial backers to help stem the damage.
In the latest such action, E-Trade Financial Corp. said on Thursday that Citadel Investment Group would provide $2.5 billion in cash to shore up the company's balance sheet. E-Trade also said Mitchell H. Caplan had resigned as chief executive.
E-Trade, which holds billions in risky mortgage debt, said it will sell its entire portfolio of asset-backed securities to Citadel for $800 million and book a $2.2 billion charge on the sale. E-Trade fell 46 cents, or 8.7 percent, to $4.82.
In other corporate news, Sears Holdings, parent of its namesake department store chain and Kmart, said profits plunged to a penny per share from $1.27 per share a year earlier due to lower sales and clearance markdowns. The stock fell $12.25, or 10.5 percent, to $104.09.
The Russell 2000 index of smaller companies fell 3.98, or 0.52 percent, to 766.06.
Overseas stock markets advanced. Britain's FTSE 100 rose 0.68 percent, Germany's DAX index advanced 0.54 percent and France's CAC-40 rose 0.66 percent. In Asia, Japan's Nikkei stock average closed up 2.38 percent, while Hong Kong's Hang Seng index rose 4.06 percent.
NEW YORK (AP) -- Wall Street extended its rally with modest gains in the major indexes following two days of sharp advances, despite economic readings that painted a mixed picture of the economy.
Though the indexes rose, declining issues narrowly outpaced advancers on the New York Stock Exchange.
On Tuesday and Wednesday, the market posted its biggest two-day rally in five years. Hopes have been growing that financial companies may be starting to recover from the credit crisis and that the Federal Reserve may lower interest rates to calm the markets.
Wall Street's anticipation of a rate cut follows comments from a Fed official Wednesday and comes ahead of a speech by Fed Chairman Ben Bernanke scheduled for Thursday evening.
Oil prices spiked early Thursday then fell back somewhat after a fire at an Enbridge Energy pipeline carrying crude from Canada to the Midwest.
The oil price recovery gave some strength to energy stocks. Meanwhile, financial companies, which had shown gains Wednesday, retreated as did retailers following a weak showing by Sears Holdings Corp.
Aside from a reading on third-quarter growth, economic news didn't offer investors much reason to cheer.
"The data's weak, and says to us that the Fed needs to stay engaged here," said Phil Orlando, chief equity market strategist at Federated Investors.
The Dow Jones industrial average rose 22.28, or 0.17 percent, to 13,311.73. In the three sessions since a pullback Monday, the Dow has jumped 568.29, of 4.5 percent.
Broader stock indicators also rose. The Standard & Poor's 500 index edged up 0.70, or 0.05 percent, to 1,469.72, and the Nasdaq composite index rose 5.22, or 0.20 percent, to 2,668.13.
Declining issues outnumbered advancers by about 9 to 7 on the New York Stock Exchange, where consolidated volume came to 3.43 billion shares compared with 4.45 billion traded Wednesday.
For the week, the Dow is up 2.55 percent, while the S&P is up 2.01 percent and the and the Nasdaq is up 2.75 percent. The pace of the gains, however, has been fast enough that a bit of profit-taking wouldn't come as a surprise on Wall Street. The declines that preceded the latest surge had been sharp as well, however. By the end of the day Monday, the market's major indexes had fallen more than 10 percent from levels in mid-October -- meeting the technical definition of a correction.
Bond prices rose, with the yield on the benchmark 10-year Treasury note falling to 3.94 percent from 4.05 percent late Wednesday. Bond prices and yields move in opposite directions. The dollar rose against other major currencies, while gold prices fell.
Light, sweet crude for January delivery rose 39 cents to settle at $91.01 a barrel in choppy trading on the New York Mercantile Exchange. The rise in oil helped energy companies. Exxon Mobil Corp. rose 67 cents to $88.59, while ConocoPhillips advanced $1.10 to $78.82.
Among financials, Merrill Lynch & Co. fell 38 cents to $57.41, while Bank of America Corp. fell 22 cents to $44.63.
Stocks' fluctuations followed the mixed economic readings.
The Commerce Department reported that economic growth in the third quarter was 4.9 percent, stronger than originally thought, although analysts are anticipating a slowdown in the fourth quarter.
U.S. home prices showed a quarterly decline for the first time in 13 years in the third quarter, according to figures from the Office of Federal Housing Enterprise Oversight, which reported a 0.4 percent drop nationwide for the July-September period.
The economic reports came as investors awaited clarity on the Fed's direction on interest rates. Bernanke was slated to speak Thursday evening before the Chamber of Commerce in Charlotte, N.C.
Investors have sent stocks sharply higher in recent days in part because Fed Vice Chairman Donald Kohn suggested another interest rate cut could be in store. The Fed, which has cut rates at each of its last two meetings, is slated to meet again on Dec. 11.
Wall Street also has been calmed by evidence that companies hurt by subprime problems have found financial backers to help stem the damage.
In the latest such action, E-Trade Financial Corp. said on Thursday that Citadel Investment Group would provide $2.5 billion in cash to shore up the company's balance sheet. E-Trade also said Mitchell H. Caplan had resigned as chief executive.
E-Trade, which holds billions in risky mortgage debt, said it will sell its entire portfolio of asset-backed securities to Citadel for $800 million and book a $2.2 billion charge on the sale. E-Trade fell 46 cents, or 8.7 percent, to $4.82.
In other corporate news, Sears Holdings, parent of its namesake department store chain and Kmart, said profits plunged to a penny per share from $1.27 per share a year earlier due to lower sales and clearance markdowns. The stock fell $12.25, or 10.5 percent, to $104.09.
The Russell 2000 index of smaller companies fell 3.98, or 0.52 percent, to 766.06.
Overseas stock markets advanced. Britain's FTSE 100 rose 0.68 percent, Germany's DAX index advanced 0.54 percent and France's CAC-40 rose 0.66 percent. In Asia, Japan's Nikkei stock average closed up 2.38 percent, while Hong Kong's Hang Seng index rose 4.06 percent.
Thursday, November 29, 2007
Thursday Is the Test - Forbes
Speculation reached a fever pitch Wednesday, after comments from Fed Vice Chairman Donald Kohn and a drab economic outlook from the Beige Book seemed to hint at a cut when the Fed next meets December 11.
Financial stocks will bear watching Thursday, after the sector led the market higher. The Dow Jones industrial average raced to a 331-point gain, paced by a 6.5% gain from Citigroup. The index climbed 2.6%, to 13,289, as the major U.S. bank rose $1.97, to $32.29.
Investors brushed aside poor economic reports Wednesday to send stocks higher, and it bears watching Thursday if those reports will come back to have a negative impact.
Bargain hunters contributed to the rally, taking advantage of depressed stock prices. The market's two-day rally could extend as investors look to snap up shares ahead of the prime selling opportunity that would result from another Fed rate cut.
Home builders may struggle Thursday after a strong day Wednesday. The sector rose 5.4%, but the gains came on a day when the National Association of Realtors said existing home sales continued to decline in October thanks to a glut of unsold homes on the market and the difficult financing environment. Among Wednesday's climbers were Pulte Homes, up 45 cents, or 5.0%, to $9.53, and Centex, up $1.16, or 6.4%, to $19.44.
Retailers will also continue to be in focus for the rest of this week. Stocks have made a strong run over the past two days, getting their typical seasonal boost despite fears of weakening consumer spending during holiday shopping.
While shoppers may be spending less, they are still hitting the stores in droves, and retailers are reaping the benefits. Industry giant Wal-Mart gained $1.40, or 3.1%, to $47.23..
Electronics retailer Best Buy gained $1.48, or 3.0%, to $50.58, while rival Circuit City was up 18 cents, or 3.0%, to $6.26.
Online retailers were getting in the act too, as consumers spend more time buying gifts over the Internet. Shares of Amazon.com finished the session at $90.30, up $4.71, or 5.5%.
In addition to rate cut optimism and strength from financials and retail stocks, a pull back in oil prices also contributed to Wednesday's rise.
Crude dropped $3.80 to settle at $90.62 a barrel. A healthier-than-expected U.S. inventory report, speculation about an increase in OPEC production levels, and strength from the dollar all conspired to send prices lower. Do not rule out $100 oil just yet, though. Wednesday's decline may foretell a temporary retreat in crude prices, but if the Fed does indeed cut rates December 11 the move is likely to depress the dollar, which will in turn send crude back to its near triple-digit levels.
Economic data on tap for Thursday includes preliminary third-quarter GDP, the weekly jobless claims report, and new home sales figures for October.
At 7 p.m. Thursday Federal Reserve Chairman Ben Bernanke is due to speak at the Charlotte Chamber of Commerce, and it is a safe bet investors will hang on his every word, trying to wring out any indication that the Fed will cut rates December 11.
Financial stocks will bear watching Thursday, after the sector led the market higher. The Dow Jones industrial average raced to a 331-point gain, paced by a 6.5% gain from Citigroup. The index climbed 2.6%, to 13,289, as the major U.S. bank rose $1.97, to $32.29.
Investors brushed aside poor economic reports Wednesday to send stocks higher, and it bears watching Thursday if those reports will come back to have a negative impact.
Bargain hunters contributed to the rally, taking advantage of depressed stock prices. The market's two-day rally could extend as investors look to snap up shares ahead of the prime selling opportunity that would result from another Fed rate cut.
Home builders may struggle Thursday after a strong day Wednesday. The sector rose 5.4%, but the gains came on a day when the National Association of Realtors said existing home sales continued to decline in October thanks to a glut of unsold homes on the market and the difficult financing environment. Among Wednesday's climbers were Pulte Homes, up 45 cents, or 5.0%, to $9.53, and Centex, up $1.16, or 6.4%, to $19.44.
Retailers will also continue to be in focus for the rest of this week. Stocks have made a strong run over the past two days, getting their typical seasonal boost despite fears of weakening consumer spending during holiday shopping.
While shoppers may be spending less, they are still hitting the stores in droves, and retailers are reaping the benefits. Industry giant Wal-Mart gained $1.40, or 3.1%, to $47.23..
Electronics retailer Best Buy gained $1.48, or 3.0%, to $50.58, while rival Circuit City was up 18 cents, or 3.0%, to $6.26.
Online retailers were getting in the act too, as consumers spend more time buying gifts over the Internet. Shares of Amazon.com finished the session at $90.30, up $4.71, or 5.5%.
In addition to rate cut optimism and strength from financials and retail stocks, a pull back in oil prices also contributed to Wednesday's rise.
Crude dropped $3.80 to settle at $90.62 a barrel. A healthier-than-expected U.S. inventory report, speculation about an increase in OPEC production levels, and strength from the dollar all conspired to send prices lower. Do not rule out $100 oil just yet, though. Wednesday's decline may foretell a temporary retreat in crude prices, but if the Fed does indeed cut rates December 11 the move is likely to depress the dollar, which will in turn send crude back to its near triple-digit levels.
Economic data on tap for Thursday includes preliminary third-quarter GDP, the weekly jobless claims report, and new home sales figures for October.
At 7 p.m. Thursday Federal Reserve Chairman Ben Bernanke is due to speak at the Charlotte Chamber of Commerce, and it is a safe bet investors will hang on his every word, trying to wring out any indication that the Fed will cut rates December 11.
Tuesday, November 27, 2007
SGX unveils new board to replace SESDAQ from Dec 17
SINGAPORE : The Singapore Exchange has unveiled its new start-up board aimed at drawing fast-growing companies in the region to list here.
The new board, which replaces Sesdaq next month, is called Catalist and is modelled after London's Alternative Investment Market, otherwise known as AIM.
Catalist is the name for the new sponsor-supervised board that has been much talked about in the last six months. It will go live on Monday, 17 December, replacing the current SESDAQ.
This means that 159 companies currently on the second board will be transferred to Catalist and they will have two years to either move up to the mainboard, or find a sponsor.
SGX chairman J Y Pillay unveiled the board's new name on Monday.
Using Catalist, SGX hopes to entice high growth companies with faster time-to-market of just 6 weeks from notification to trading, compared to 17 weeks on SESDAQ. However, finding a sponsor will be key.
Lawrence Wong, Executive VP and Head of Listings, SGX, said: "One is the full sponsor who effectively act as the gatekeeper for us in admitting the listed company.
"The second type of sponsors who are the continuing sponsors - they are actually an extension of the SGX in terms of supervising, which is why they actually play a very important role.
"They're doing two very important functions that SGX is doing today. We've set the criteria very stringently because we want to make sure that sponsors are of a certainly quality."
Market-watchers say the three local banks will likely be on the first list of approved sponsors to be announced in January.
Robson Lee, lawyer, Shook Lin and Bok, said: "Advisors will be very mindful of their personal responsibility both at the corporate level and at the personal officers level as far as compliance and adherence. They will ensure that corporate governance is adhered, best practices are adopted by issuers."
Gold mining startup CNMC is looking to be one of the first companies on the new board. It says it is already in talks with some international banks to raise funds through Catalist.
Meanwhile, the SGX also announced that there will be no profit or market cap requirements for companies seeking to list on the new board.
Mr Wong said: "End of May, we said there would be a market cap which is S$150 million. But when we went out to the market... the response is that market cap is not an issue because when we're talking about growth, there can be companies that are small, companies that are big."
Mr Lee said: "I think this is a good thing because then it will not preclude new board candidates from growing their market capitalisation because investors are very keen on their stock and (thus push) up their stock price."
However, rules such as interested persons transactions and quarterly reporting remain unchanged.
The CPF Board says members can continue to invest in companies currently on SESDAQ after the transfer to the new board.
But the board will evaluate if the new companies, which have limited track record, are suitable for CPF investment or not. - CNA/ch
The new board, which replaces Sesdaq next month, is called Catalist and is modelled after London's Alternative Investment Market, otherwise known as AIM.
Catalist is the name for the new sponsor-supervised board that has been much talked about in the last six months. It will go live on Monday, 17 December, replacing the current SESDAQ.
This means that 159 companies currently on the second board will be transferred to Catalist and they will have two years to either move up to the mainboard, or find a sponsor.
SGX chairman J Y Pillay unveiled the board's new name on Monday.
Using Catalist, SGX hopes to entice high growth companies with faster time-to-market of just 6 weeks from notification to trading, compared to 17 weeks on SESDAQ. However, finding a sponsor will be key.
Lawrence Wong, Executive VP and Head of Listings, SGX, said: "One is the full sponsor who effectively act as the gatekeeper for us in admitting the listed company.
"The second type of sponsors who are the continuing sponsors - they are actually an extension of the SGX in terms of supervising, which is why they actually play a very important role.
"They're doing two very important functions that SGX is doing today. We've set the criteria very stringently because we want to make sure that sponsors are of a certainly quality."
Market-watchers say the three local banks will likely be on the first list of approved sponsors to be announced in January.
Robson Lee, lawyer, Shook Lin and Bok, said: "Advisors will be very mindful of their personal responsibility both at the corporate level and at the personal officers level as far as compliance and adherence. They will ensure that corporate governance is adhered, best practices are adopted by issuers."
Gold mining startup CNMC is looking to be one of the first companies on the new board. It says it is already in talks with some international banks to raise funds through Catalist.
Meanwhile, the SGX also announced that there will be no profit or market cap requirements for companies seeking to list on the new board.
Mr Wong said: "End of May, we said there would be a market cap which is S$150 million. But when we went out to the market... the response is that market cap is not an issue because when we're talking about growth, there can be companies that are small, companies that are big."
Mr Lee said: "I think this is a good thing because then it will not preclude new board candidates from growing their market capitalisation because investors are very keen on their stock and (thus push) up their stock price."
However, rules such as interested persons transactions and quarterly reporting remain unchanged.
The CPF Board says members can continue to invest in companies currently on SESDAQ after the transfer to the new board.
But the board will evaluate if the new companies, which have limited track record, are suitable for CPF investment or not. - CNA/ch
Sunday, November 25, 2007
首三季净利劲扬近五成 云顶每股派特别股息30仙
吉隆坡讯）云顶（Genting）截至9月底第三季取得2亿7522万令吉净利，虽然下跌49.3％，但为了纪念已故创办人林梧桐，云顶将派发每股30仙特别股息，总额8亿零700万令吉。
在派发特别股息的利好消息激励下，云顶股价昨天应声高涨，一度扬升30仙或4％，至7.80令吉价位，闭市时以7.75令吉挂收，全日涨25仙。
该公司在文告中说，公司第三季营业额劲扬40.31％至22亿2379万令吉，税前盈利则达到3亿6568万令吉，猛挫50.75％。
该公司首九个月取得14亿7442万令吉的净利，增长47.70％；九个月营业额则增长47.89％至42亿1532万令吉。
云顶营业额增长主要是来自于全部业务部的贡献，除了产业部之外。
益资利艾文纽证券指出，云顶派发特别股息的建议令人惊喜，但预料是一次过的举措，因为该集团必须储备更多的资金来扩充国际业务。
云顶目前拥有高达112亿令吉的现金。
达证券指出，云顶第三季的净利大跌，是因为该集团为史丹利休闲的商誉减记损失，作出高达9亿3780万令吉的减记亏损。
撇除这项亏损，以及从脱售丽星油轮14.06％股权取得的4亿9200万令吉一次过获利，云顶的核心净利其实猛涨了152.6％，从前期的2亿8550万令吉激增至7亿2120万令吉。
达证券预期，云顶将从原棕油价格上涨走势，以及赌场度假村业务中受惠，并因此将云顶2007及08财政年的预估净利，分别调高15.2％及31.4％。
在派发特别股息的利好消息激励下，云顶股价昨天应声高涨，一度扬升30仙或4％，至7.80令吉价位，闭市时以7.75令吉挂收，全日涨25仙。
该公司在文告中说，公司第三季营业额劲扬40.31％至22亿2379万令吉，税前盈利则达到3亿6568万令吉，猛挫50.75％。
该公司首九个月取得14亿7442万令吉的净利，增长47.70％；九个月营业额则增长47.89％至42亿1532万令吉。
云顶营业额增长主要是来自于全部业务部的贡献，除了产业部之外。
益资利艾文纽证券指出，云顶派发特别股息的建议令人惊喜，但预料是一次过的举措，因为该集团必须储备更多的资金来扩充国际业务。
云顶目前拥有高达112亿令吉的现金。
达证券指出，云顶第三季的净利大跌，是因为该集团为史丹利休闲的商誉减记损失，作出高达9亿3780万令吉的减记亏损。
撇除这项亏损，以及从脱售丽星油轮14.06％股权取得的4亿9200万令吉一次过获利，云顶的核心净利其实猛涨了152.6％，从前期的2亿8550万令吉激增至7亿2120万令吉。
达证券预期，云顶将从原棕油价格上涨走势，以及赌场度假村业务中受惠，并因此将云顶2007及08财政年的预估净利，分别调高15.2％及31.4％。
Thursday, November 22, 2007
Stocks Fall Amid Economic Jitters
Stocks Fall Ahead of Thanksgiving Amid Worries About the Mortgage Market, Record-High Oil
NEW YORK (AP) -- Wall Street resumed its slide Wednesday as unease about the wilting mortgage market and the broader economy triggered selling ahead of the unofficial start of the holiday shopping season. The Standard & Poor's 500 index and the Dow Jones industrial average each fell by more than 1.5 percent, with the Dow giving up more than 210 points.
The decline in the S&P 500 left the index in negative territory for the year. Many investments such as mutual funds either track or are measured against the S&P.
The worries over the economy sent investors rushing to the safety of government securities. The yield on the Treasury's 10-year note fell below 4 percent for the first time since 2005. The shift into bonds came as the Dow briefly sank below the lows seen in the market's August pullback.
The stock market has been thrashing about recently as investors attempt to gauge how companies will fare amid a further slowdown in the U.S. housing market, a deterioration of credit and record oil prices that crested above $99 a barrel ahead of Wednesday's session. Including Wednesday's slide stocks have fallen in eight of the 11 last sessions -- forgoing the boost seen in recent years during Thanksgiving week, which is capped by the retail bonanza Black Friday.
Economic readings did little to instill confidence among investors. The Mortgage Bankers Association said mortgage application volume fell 3.6 percent last week. Meanwhile, the slump in housing suggested banks will continue to face souring mortgage debt.
Government-sponsored lender Freddie Mac, which reported a $2 billion quarterly loss Tuesday and saw shares plummet nearly 29 percent, declined again Wednesday after an analyst downgrade. Countrywide Financial Corp., the nation's largest mortgage lender, also lost further ground.
In other economic news, the Conference Board suggested an economic slowdown could accelerate in the coming months amid rising costs and further weakness in the housing market. Also, the Reuters/University of Michigan consumer sentiment survey showed its lowest reading in two years -- an unwelcome development for retailers entering what is for many the most important period of the year.
The Commerce Department said jobless claims fell by 11,000 last week, a positive sign for U.S. employment, but the report didn't appear to alleviate anxiety about the potential for weaker consumer spending.
"People are buying and selling off the headlines. The market is so emotional," said Neil Hennessy, president and portfolio manager of Hennessy Funds. "You look at oil approaching $100. People are taking their money and going to the sidelines."
The Dow fell 211.10, or 1.62 percent, to 12,799.04. Several financial companies that are part of the 30-stock index hit fresh 52-week lows Wednesday and the blue chip index is now down 9.85 percent from its mid-October trading high. A 10 percent decline would meet the technical definition of a correction.
Broader stock indicators also fell. The S&P 500 index dropped 22.93, or 1.59 percent, to 1,416.77.
Meanwhile, the Nasdaq composite index tumbled 34.66, or 1.33 percent, to 2,562.15.
Investors turned to government bonds amid the uncertainty. The yield on the 10-year Treasury note, which moves inversely to its price, fell to 4.01 percent from 4.09 percent late Tuesday.
The dollar was mixed against most other major currencies, while gold advanced.
And with oil prices briefly reaching a high of $99.29 a barrel in overnight electronic trading, the question among investors is no longer if oil will reach $100 a barrel, but when -- and how long it will stay there. Crude futures fell 74 cents to settle at $97.29 per barrel on the New York Mercantile Exchange after an Energy Department report showed supplies at a closely watched oil terminal in the Midwest rose for the first time in weeks.
"The high price of oil has hurt retail, entertainment, restaurants and clothing," said Don Hodges, chairman of Hodges Capital Management in Dallas. He attributes the market's recent retrenchment to concerns about energy, the consumer, housing and banking among other factors and notes that previous sharp drops in the market have occurred when investors have faced a similar confluence of worries.
An examination of the economic news offered little to boost investor sentiment. The Conference Board said its index of leading indicators fell by 0.5 percent in October to a two-year low, after ticking up by 0.1 percent in September and falling by 0.9 percent in August. And the Reuters/University of Michigan survey's final reading for November found consumer sentiment fell to 76.1 from 80.9 in October.
Wednesday's pullback ahead of the Thanksgiving holiday came after stocks finished with a gain Tuesday following a somewhat baffling pair of reports from the Federal Reserve. The Fed's minutes from its last meeting called its last rate reduction a "close call," but the central bank's economic forecast seemed to imply it is willing to keep lowering rates.
Wall Street is fairly confident the Fed will lower rates at its Dec. 11 meeting to keep the tight credit markets liquid, but it is uncertain about the health of the economy -- particularly given big losses at Freddie Mac and its counterpart Fannie Mae, and possible liquidity problems at Countrywide.
Citigroup Inc., which has already announced write-downs of bad debt tied to mortgages, fell 67 cents, or 2.1 percent, to $30.73. The stock hit a fresh 52-week low of $30.50; its earlier low was $30.80. Meanwhile, JPMorgan Chase & Co. fell 95 cents, or 2.3 percent, to $40.68. It hit a low of $40.15, falling below an earlier 52-week low of $40.28.
Amid worries that both the private and government lending industries are struggling with the mortgage market implosion, Freddie shares fell 74 cents, or 2.8 percent, to $26. However, Fannie Mae, which had been down in the session, finished up 98 cents, or 3.5 percent, at $29.23; and Countrywide fell 86 cents, or 8.4 percent, to $9.42.
General Motors Corp. rose 10 cents to $26.39 and was the only Dow component to advance after GMAC's Residential Capital LLC said it had hired advisers to explore the possible sale of certain parts of its operations among other options. GM last year sold 51 percent of its GMAC financial services operation to Cerberus Capital Management LP.
Declining issues outnumbered advancers by 3 to 1 on the New York Stock Exchange, where consolidated volume came to 4.02 billion shares compared with 4.74 billion traded Tuesday.
The Russell 2000 index of smaller companies fell 9.03, or 1.21 percent, to 740.30.
Overseas, Japan's Nikkei stock average closed down 2.46 percent and Hong Kong's Hang Seng index fell 4.15 percent. Britain's FTSE 100 fell 2.50 percent, Germany's DAX index declined 1.47 percent, and France's CAC-40 lost 2.28 percent.
NEW YORK (AP) -- Wall Street resumed its slide Wednesday as unease about the wilting mortgage market and the broader economy triggered selling ahead of the unofficial start of the holiday shopping season. The Standard & Poor's 500 index and the Dow Jones industrial average each fell by more than 1.5 percent, with the Dow giving up more than 210 points.
The decline in the S&P 500 left the index in negative territory for the year. Many investments such as mutual funds either track or are measured against the S&P.
The worries over the economy sent investors rushing to the safety of government securities. The yield on the Treasury's 10-year note fell below 4 percent for the first time since 2005. The shift into bonds came as the Dow briefly sank below the lows seen in the market's August pullback.
The stock market has been thrashing about recently as investors attempt to gauge how companies will fare amid a further slowdown in the U.S. housing market, a deterioration of credit and record oil prices that crested above $99 a barrel ahead of Wednesday's session. Including Wednesday's slide stocks have fallen in eight of the 11 last sessions -- forgoing the boost seen in recent years during Thanksgiving week, which is capped by the retail bonanza Black Friday.
Economic readings did little to instill confidence among investors. The Mortgage Bankers Association said mortgage application volume fell 3.6 percent last week. Meanwhile, the slump in housing suggested banks will continue to face souring mortgage debt.
Government-sponsored lender Freddie Mac, which reported a $2 billion quarterly loss Tuesday and saw shares plummet nearly 29 percent, declined again Wednesday after an analyst downgrade. Countrywide Financial Corp., the nation's largest mortgage lender, also lost further ground.
In other economic news, the Conference Board suggested an economic slowdown could accelerate in the coming months amid rising costs and further weakness in the housing market. Also, the Reuters/University of Michigan consumer sentiment survey showed its lowest reading in two years -- an unwelcome development for retailers entering what is for many the most important period of the year.
The Commerce Department said jobless claims fell by 11,000 last week, a positive sign for U.S. employment, but the report didn't appear to alleviate anxiety about the potential for weaker consumer spending.
"People are buying and selling off the headlines. The market is so emotional," said Neil Hennessy, president and portfolio manager of Hennessy Funds. "You look at oil approaching $100. People are taking their money and going to the sidelines."
The Dow fell 211.10, or 1.62 percent, to 12,799.04. Several financial companies that are part of the 30-stock index hit fresh 52-week lows Wednesday and the blue chip index is now down 9.85 percent from its mid-October trading high. A 10 percent decline would meet the technical definition of a correction.
Broader stock indicators also fell. The S&P 500 index dropped 22.93, or 1.59 percent, to 1,416.77.
Meanwhile, the Nasdaq composite index tumbled 34.66, or 1.33 percent, to 2,562.15.
Investors turned to government bonds amid the uncertainty. The yield on the 10-year Treasury note, which moves inversely to its price, fell to 4.01 percent from 4.09 percent late Tuesday.
The dollar was mixed against most other major currencies, while gold advanced.
And with oil prices briefly reaching a high of $99.29 a barrel in overnight electronic trading, the question among investors is no longer if oil will reach $100 a barrel, but when -- and how long it will stay there. Crude futures fell 74 cents to settle at $97.29 per barrel on the New York Mercantile Exchange after an Energy Department report showed supplies at a closely watched oil terminal in the Midwest rose for the first time in weeks.
"The high price of oil has hurt retail, entertainment, restaurants and clothing," said Don Hodges, chairman of Hodges Capital Management in Dallas. He attributes the market's recent retrenchment to concerns about energy, the consumer, housing and banking among other factors and notes that previous sharp drops in the market have occurred when investors have faced a similar confluence of worries.
An examination of the economic news offered little to boost investor sentiment. The Conference Board said its index of leading indicators fell by 0.5 percent in October to a two-year low, after ticking up by 0.1 percent in September and falling by 0.9 percent in August. And the Reuters/University of Michigan survey's final reading for November found consumer sentiment fell to 76.1 from 80.9 in October.
Wednesday's pullback ahead of the Thanksgiving holiday came after stocks finished with a gain Tuesday following a somewhat baffling pair of reports from the Federal Reserve. The Fed's minutes from its last meeting called its last rate reduction a "close call," but the central bank's economic forecast seemed to imply it is willing to keep lowering rates.
Wall Street is fairly confident the Fed will lower rates at its Dec. 11 meeting to keep the tight credit markets liquid, but it is uncertain about the health of the economy -- particularly given big losses at Freddie Mac and its counterpart Fannie Mae, and possible liquidity problems at Countrywide.
Citigroup Inc., which has already announced write-downs of bad debt tied to mortgages, fell 67 cents, or 2.1 percent, to $30.73. The stock hit a fresh 52-week low of $30.50; its earlier low was $30.80. Meanwhile, JPMorgan Chase & Co. fell 95 cents, or 2.3 percent, to $40.68. It hit a low of $40.15, falling below an earlier 52-week low of $40.28.
Amid worries that both the private and government lending industries are struggling with the mortgage market implosion, Freddie shares fell 74 cents, or 2.8 percent, to $26. However, Fannie Mae, which had been down in the session, finished up 98 cents, or 3.5 percent, at $29.23; and Countrywide fell 86 cents, or 8.4 percent, to $9.42.
General Motors Corp. rose 10 cents to $26.39 and was the only Dow component to advance after GMAC's Residential Capital LLC said it had hired advisers to explore the possible sale of certain parts of its operations among other options. GM last year sold 51 percent of its GMAC financial services operation to Cerberus Capital Management LP.
Declining issues outnumbered advancers by 3 to 1 on the New York Stock Exchange, where consolidated volume came to 4.02 billion shares compared with 4.74 billion traded Tuesday.
The Russell 2000 index of smaller companies fell 9.03, or 1.21 percent, to 740.30.
Overseas, Japan's Nikkei stock average closed down 2.46 percent and Hong Kong's Hang Seng index fell 4.15 percent. Britain's FTSE 100 fell 2.50 percent, Germany's DAX index declined 1.47 percent, and France's CAC-40 lost 2.28 percent.
Wednesday, November 21, 2007
直 通 車 開 行 有 兆 ？- 曾 淵 滄
在 任 何 國 家 ， 只 要 有 外 管 制 ， 就 一 定 有 黑 市 的 地 下 錢 莊 。 通 常 ， 有 外 管 制 的 國 家 ， 其 外 儲 備 一 定 很 少 ， 其 官 定 的 貨 幣 兌 換 價 一 定 遠 高 於 黑 市 的 自 由 市 場 價 ， 因 此 ， 打 擊 地 下 錢 莊 只 是 單 方 向 的 打 擊 非 法 流 出 。 但 是 ， 中 國 的 情 況 很 特 殊 ， 有 非 法 流 出 ， 也 有 非 法 流 入 ， 到 底 ， 流 入 勢 強 還 是 流 出 勢 強 ？ 真 是 不 得 而 知 。 要 知 道 答 案 ， 只 有 放 寬 、 增 加 合 法 兌 換 的 渠 道 。 溫 總 一 方 面 高 調 地 說 要 打 擊 地 下 錢 莊 ， 另 一 方 面 ， 中 國 政 府 卻 面 對 過 多 的 外 儲 備 ， 不 斷 地 被 西 方 國 家 要 求 更 大 幅 度 的 人 民 幣 升 值 。 如 果 地 下 錢 莊 是 流 出 多 過 流 入 ， 這 正 好 可 以 紓 緩 人 民 幣 升 值 的 壓 力 ， 中 央 只 要 隻 眼 閉 隻 眼 開 ， 就 萬 事 大 吉 。 當 然 ， 中 國 政 府 是 一 個 不 大 放 心 自 由 經 濟 的 政 府 ， 處 處 要 加 以 管 理 、 管 理 ， 也 就 事 事 要 干 預 、 干 預 ， 才 會 陷 入 今 日 的 兩 難 問 題 。 地 下 錢 莊 是 可 以 嚴 打 的 ， 但 是 嚴 打 只 能 收 效 一 小 段 時 間 ， 因 為 市 場 的 確 需 要 地 下 錢 莊 ， 過 度 嚴 打 地 下 錢 莊 而 又 沒 有 增 加 合 法 的 兌 換 通 道 ， 只 會 打 擊 中 國 的 經 濟 發 展 。
人 民 幣 流 動 資 金 太 多 非 好 事
記 得 上 個 世 紀 90 年 代 初 ， 那 時 候 中 央 突 然 高 調 打 擊 非 法 的 兌 換 外 券 的 活 動 ， 之 後 不 久 ， 人 民 幣 則 主 動 大 幅 貶 值 ， 最 後 雙 幣 並 軌 ， 取 消 外 券 ， 從 此 ， 人 民 幣 成 了 強 貨 幣 ， 不 必 偷 偷 摸 摸 地 兌 換 。 今 時 今 日 ， 人 民 幣 已 是 超 強 貨 幣 ， 大 量 外 商 在 內 地 投 資 設 廠 ， 他 們 通 過 香 港 出 口 在 香 港 收 美 元 ， 但 他 們 需 要 大 量 人 民 幣 發 工 資 、 付 原 料 費 、 交 電 費 、 買 汽 油 … … 他 們 可 以 通 過 正 常 的 銀 行 款 到 內 地 ， 但 是 ， 地 下 錢 莊 的 服 務 比 銀 行 好 得 多 ， 服 務 費 也 較 低 ， 而 且 ， 正 常 款 也 就 等 於 告 訴 中 國 稅 務 局 ， 他 們 做 多 大 的 生 意 ， 於 是 紛 紛 光 顧 地 下 錢 莊 ， 這 是 非 法 流 入 的 錢 。 有 非 法 流 入 再 有 非 法 流 出 ， 兩 者 也 許 可 以 取 個 平 衡 ， 如 果 只 能 合 法 入 而 限 額 出 ， 中 國 的 人 民 幣 將 會 更 加 過 剩 ， 人 民 幣 流 動 資 金 過 多 決 不 是 好 事 。 我 突 發 異 想 ， 加 緊 打 擊 地 下 錢 莊 是 不 是 港 股 直 通 車 正 式 通 車 的 預 告 ？ 中 銀 香 港 （ 2388 ） 以 每 股 51 元 的 價 格 買 入 4.94% 的 東 亞 （ 023 ） 股 份 ， 不 算 貴 ， PE 不 超 過 23 倍 ， 但 中 銀 自 己 的 PE 僅 14 倍 ， 低 PE 買 高 PE ， 會 分 薄 自 己 的 盈 利 。
人 民 幣 流 動 資 金 太 多 非 好 事
記 得 上 個 世 紀 90 年 代 初 ， 那 時 候 中 央 突 然 高 調 打 擊 非 法 的 兌 換 外 券 的 活 動 ， 之 後 不 久 ， 人 民 幣 則 主 動 大 幅 貶 值 ， 最 後 雙 幣 並 軌 ， 取 消 外 券 ， 從 此 ， 人 民 幣 成 了 強 貨 幣 ， 不 必 偷 偷 摸 摸 地 兌 換 。 今 時 今 日 ， 人 民 幣 已 是 超 強 貨 幣 ， 大 量 外 商 在 內 地 投 資 設 廠 ， 他 們 通 過 香 港 出 口 在 香 港 收 美 元 ， 但 他 們 需 要 大 量 人 民 幣 發 工 資 、 付 原 料 費 、 交 電 費 、 買 汽 油 … … 他 們 可 以 通 過 正 常 的 銀 行 款 到 內 地 ， 但 是 ， 地 下 錢 莊 的 服 務 比 銀 行 好 得 多 ， 服 務 費 也 較 低 ， 而 且 ， 正 常 款 也 就 等 於 告 訴 中 國 稅 務 局 ， 他 們 做 多 大 的 生 意 ， 於 是 紛 紛 光 顧 地 下 錢 莊 ， 這 是 非 法 流 入 的 錢 。 有 非 法 流 入 再 有 非 法 流 出 ， 兩 者 也 許 可 以 取 個 平 衡 ， 如 果 只 能 合 法 入 而 限 額 出 ， 中 國 的 人 民 幣 將 會 更 加 過 剩 ， 人 民 幣 流 動 資 金 過 多 決 不 是 好 事 。 我 突 發 異 想 ， 加 緊 打 擊 地 下 錢 莊 是 不 是 港 股 直 通 車 正 式 通 車 的 預 告 ？ 中 銀 香 港 （ 2388 ） 以 每 股 51 元 的 價 格 買 入 4.94% 的 東 亞 （ 023 ） 股 份 ， 不 算 貴 ， PE 不 超 過 23 倍 ， 但 中 銀 自 己 的 PE 僅 14 倍 ， 低 PE 買 高 PE ， 會 分 薄 自 己 的 盈 利 。
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