Nothing good lasts forever, including the amazing bull market that investors have enjoyed this year.
Fueled by ultra-low interest rates, solid corporate earnings and a Federal Reserve that says it will do whatever it takes to jump-start the economy, stocks have been breaking record after record as they surge higher. The Dow Jones Industrial Average has rallied more than 1,800 points since Jan. 1 -- and money keeps pouring into the market. Continue reading "5 Critical Threats To The Bull Market"
The Federal Reserve is, of course, a bank. So after it has a meeting, it issues a statement outlining the discussion – a "bank statement." Hmm... Now that I think about it, that must be where the acronym "BS" comes from.
Notwithstanding what we read and hear, when Congress established the Federal Reserve as a central bank 100 years ago, its primary purpose was to protect the banking system. The Federal Reverse shifted risk from the private sector to the public, and through the slow devaluation of the dollar, the cost of this shift fell on the average Joe rather than on banking tycoons. Today, an entire generation is paying for this system with a good portion of their life's savings.
I pride myself on explaining complex financial situations in everyday language. However, when it comes to the Federal Reserve, I readily admit that I am sometimes befuddled. I used to watch Alan Greenspan testify before Congress when he was Chairman of the Fed, and I often ended up asking myself, "What did he just say?" The Fed's code and doublespeak is Greek to me, as it is to most folks. Continue reading "Does the Fed Think Old People Are Really that Stupid?"
Accounting firm KPMG has resigned as the auditor for Herbalife (NYSE_HLF), a dietary supplements maker, and the shoe retailer Skechers (NYSE_SKX) after a rogue partner allegedly leaked information about the companies to someone who used it for insider trading.
KPMG said it has fired the partner and had no reason to believe there were any problems with the financial reports of the two companies. KPMG did withdraw its recent audit reports on both companies because it felt its independence had been compromised.
KPMG didn't reveal the partner's identity. It announced the dismissal in a statement late Monday in which it also said it was resigning as auditor for two companies that it didn't identify.
Herbalife and Skechers made their own announcements on Tuesday confirming that they were they companies involved. Skechers said KPMG told it that the ex-partner provided the inside information in exchange for money and is under federal investigation. Continue reading "KPMG resigns as auditor for Herbalife, Skechers"
J.C. Penney (NYSE_JCP) is hoping its former CEO can revive the retailer after a risky turnaround strategy backfired and led to massive losses and steep sales declines.
The company's board of directors ousted CEO Ron Johnson after only 17 months on the job. The department store chain said late Monday, in a statement, that it has rehired Johnson's predecessor, Mike Ullman, 66. Ullman was CEO of the department store chain for seven years until November 2011.
The announcement came after a growing chorus of critics including a former Penney CEO, Allen Questrom, called for Johnson's resignation as they lost faith in an aggressive overhaul that included getting rid of most discounts in favor of everyday low prices and bringing in new brands. Continue reading "JC Penney looks to old CEO to secure its future"
Each Week Lo
ngleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.
Weekly Gold Report (April 8th through April 12th)
After the worst weekly decline of the year in US equities, we are slowly on the mend as we enter a week full of FED activity.
A few standouts from last week included a terrible Non Farm Payroll number on Friday and a full throttle campaign from the BOJ to continue to crush the Yen. Fridays jobs number was a big miss as 88,000 jobs were added and some real numbers regarding the drop in individuals that are actively looking for jobs was revealed. Even after these figures were announced, the stock indexes were only rattled for a short period of time before the realization that the FED will step up Quantitative Easing set back in. Since then, the stock market seems to be holding up fairly well. Continue reading "Gold Chart of The Week"
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