Tag Archives: Stock Market

The Stock Market: Three Days Post Election

FRIDAY 10:30 AM. The graph is obvious. Three days after the reelection of Barack Obama the stock market is still reeling. The media is blaming it on European challenges and a built in cushion because so many expected Romney to win the election. Pad it as they may, the stock market is now facing the reality of the ‘fiscal cliff’ and a tax and spend president. Only gold owners are smiling today.

This is November. The fiscal cliff is the sequestration or automatic cuts that Congress agreed on that would happen if they could not find a way to stem our ever growing debt. Concerns about the impact of the fiscal cliff were highlighted Thursday in a report from the Congressional Budget Office. If fully implemented, the U.S. economy is expected to shrink by 0.5% in 2013 and the unemployment rate  rise to 9.1% from 7.9%.  Lower growth and higher unemployment combined with continued rising costs could put the country back into a depression.

Many middle class Americans wonder how this will affect them. Of course, everyone will feel the impact of higher goods costs. Most everyone knows someone who has struggled to find a job in this economy. More often people think the Stock Market ups and downs are only important to the wealthy. But retirement programs and 401Ks often are invested in the market and drops in market value can translate to dramatic changes in retirement plans.

Today the president will speak about his ideas to bridge this fiscal cliff. No doubt he will express hope that the Republican controlled House of Representatives will agree to his plans. Maybe the president will offer an outstretched hand rather than his snide “elections have consequences” remark of  his first term. And if that happens maybe the market will react in a positive direction.

Maybe.

We should all be watching closely.

 

“Why I DON’T Like Facebook” for Investment

ATLANTA, May 18, 2012 /PRNewswire-USNewswire/ — Crown Financial Ministries CEO Chuck Bentley outlined reasons that should concern investors who plan on “liking” Facebook for their portfolios. He discussed his hesitance in a national e-blast to supporters of the 35-year non-profit that helps people and businesses who are struggling after making bad financial decisions and working to build a strong foundation to “do well.”

“The buzz on Wall Street this week surrounds the long-anticipated initial public offering (IPO) of the wildly popular social media giant, Facebook. It’s being hyped as one of the biggest initial public offerings in history for an Internet company, and investors are lining up to own a share. I’m not one of them,” Bentley told supporters.

“There are plenty of reasons not to ‘like’ Facebook’s initial public offering—despite the hype that it’s the hottest investment opportunity going. One is the past performance of two other technology darlings—Groupon and Netflix. When Groupon “went public” last November, its stock opened at $28 a share. I just checked the ticker—it’s now trading at around $14 a share.

“Last summer, Netflix was trading at nearly $300 a share, but for a variety of reasons, including a substantial price hike for its service, revenues have dropped and so has the price of Netflix stock—now trading at around $78.50 a share … If Groupon and Netflix weren’t reason enough to avoid the Facebook IPO, don’t forget the epic fall of MySpace, once a contender as the leading social hub on the web. Rupert Murdoch’s News Corp. purchased it for a whopping $580 million in 2004 and was happy to find a buyer for it last year at $35 million.

“A closer look at the numbers reveals that Facebook will likely follow a similar pattern of over-subscription based upon opening day hype, only to be followed by a struggle to maintain original market valuation … Facebook intends to offer 337.4 million shares at a price of $28 to $35 on NASDAQ under the symbol, FB.

Although advertising revenues are estimated to reach $6.1 billion in 2012, the valuation would price Facebook stock at 24 times revenue, compared to 5 times revenue for Google.

“Further, the company is still led by Mark Zuckerberg, who turned 28 this week. He’s the unquestioned genius who founded Facebook in 2004 from his Harvard dorm room and promptly dropped out of school to build the business. If the reports of Mr. Zuckerberg that I’ve read are at all accurate, I would be leery about placing confidence in his leadership,” wrote Bentley. “There are always more geeky college freshmen with highly marketable ideas. New and disruptive technology can surface overnight, and there is little to keep users loyal to one over the other.”

To read Chuck’s full remarks, click here or go to www.crown.org

BATS 1000 Index Declines 4.1% This Week

8YXE2AT7XSTS KANSAS CITY, Mo., July 29, 2011 /PRNewswire/ — BATS Global Markets, a global stock market operator, reports the BATS 1000(SM) Index (Ticker: BATSK) down 4.1% for the trading week ending July 29. The S&P 500 Index declined 3.9% on the week.

The BATS 1000 Index ended the trading week down 630.08 points to close at 14,774.48 as of 4 p.m. ETtoday. The Industrials and Manufacturing sector, which was down 6.5%, led the declines.  The Utilities sector, down 2.2%, was the best performing sector on the week.

Below is an overview of the BATS 1000 Index and sub-indices for the week:

Ticker Index Name Performance
BATSK BATS 1000 Index -4.1%
BATAR BATS Alternative Resources and Energy Sector Index -4.8%
BATBM BATS Basic Materials Sector Index -4.8%
BATBS BATS Business Services Sector Index -4.8%
BATCG BATS Consumer Goods Sector Index -3.1%
BATCS BATS Consumer Services Sector Index -3.1%
BATFN BATS Financials Sector Index -3.6%
BATHP BATS Healthcare and Pharmaceuticals Sector Index -4.5%
BATIM BATS Industrials and Manufacturing Sector Index -6.5%
BATTC BATS Technology and Communications Sector Index -3.5%
BATUT BATS Utilities Sector Index -2.2%

Debbie Wasserman-Schultz- Only I’m Smart Enough to Invest in the Stock Market

Pembroke Pines, FL, Oct 6, 2010 – It is no secret that Debbie Wasserman-Schultz is one of the most fiercely partisan liberal ideologues in Congress.  But now she has earned yet another not-so-meritorious distinction- hypocritical elitist.

In case you haven’t heard, Debbie Wasserman-Schultz believes that only she knows what is best for her constituents, and it’s evident that she thinks people are simply not smart enough to make their own decisions about what is in their own best interests- even when it comes to their own personal investments.

During a recent televised appearance on CNN, Debbie lectured a national audience that, “Investing in the stock market is a risky gamble.  It’s certainly not good for senior citizens or for the next generation to preserve Social Security.”

But it turns out Debbie doesn’t even listen to her own advice.

From the Daily Caller (9/30):

On the other hand, it seems Wasserman-Schultz may need to heed her own warnings. According to her most recent financial disclosure form, Wasserman-Schultz may be, if she believes what she told viewers of CNN, gambling with the twilight of her life.

In 2009, two years into the financial crisis, Wasserman-Schultz and her husband Paul purchased between $25,011 and $200,000 in mutual fund investments in retirement accounts.

Wasserman-Schultz also owns between $100,001 and $250,000 in common shares for the Community Bank of Broward, where her husband works.

“Hypocritical statements such as these are proof positive that politicians such as Debbie Wasserman-Schultz do not have a very high opinion of their constituents’ own ability to think for themselves,” said Karen Harrington, candidate for Congress in Florida’s 20th District.  “It’s clear that Debbie thinks her constituents are the equivalent of helpless children who cannot cope without her guidance and are incapable of making their own investment decisions or managing their own money. Unfortunately, our present leaders in Congress view themselves as a ruling class of elites, and no longer as public servants.  Debbie is certainly more comfortable lecturing everyone else what to do rather than allowing people to have the same choices and opportunities that she has at her disposal.  Hypocritical posturing that is this egregious should make people question whether Debbie ever believes her own rhetoric about this or any other important issue that Americans are facing today,” said Harrington.