Investing and Global Finance News

Monthly Archives: May 2011

Global Downturns

US Stock Investors: Increased Risks

Given what has been going on in economic terms globally, America is now stepping up its demands. Saying that there are so many more risks these days than there were just “a few months ago,” stock investors from the US are beginning to increase their demands. As well, things could get even worse since this week is when manufacturing and jobs data are due, causing investors who are already somewhat shy to keep mum about equity prices while they deal with limiting worldwide growth and a whole slew of other geopolitical risks “from the Arab Spring to debt defaults in the Eurozone."

Wall Street Bank Panic?

Actions from CitiGroup, Goldman Sachs and UBS indicate they feel investors are willing to pay less for a dollar of corporate earnings in 2011. This may seem somewhat ironic since according to New York UBS chief US equity strategies Jonathan Golub, while earnings are (surprisingly) going to continue to increase, simultaneous to that, investors will still be “reluctant to believe in the sustainability of earnings and, therefore, not give full credit to that.” Even in Golub’s case, the anticipated price-to-earnings ratio was far less than the amount investors have in the past been prepared to pay for S&P 500 earnings. The average earnings from this to last year increased $5 but still Golub’s year-end S%P 500 target remained at 1,425 which “effectively lowered [Golub’s] P/E ratio to 14.1” (a drop of .7). This means the expected equity yield increased from 6.8 percent to 7.1 percent. So, there is a way to go for US stock investors. But the news isn’t all bad and it still remains tough to predict exactly what will be in the coming months. Figures are changing but often very slightly, rendering the job of stock-market fortune tellers a tough one.

Royal Wedding: Financial Boom or Bust?

How Kate and Will’s Wedding Impacted GB’s Economy The question being asked by economists following the fanfare of the recent Royal Wedding, is, was it a good thing for the country’s finances? And, how will it impact Great Britain’s economy in the future. So let’s look at analytics and first the possible negative implications. The… Continue Reading

Plummeting Euro Tramples Asian Stocks

Euro-zone Worries There have been increased worries about the Euro-zone, yet again. This has meant that the Euro has plummeted to an all-time low against the Swiss franc of 1.24 to 1.2345 which thereafter stabilized at 1.2360. This had an impact on Asian stocks which also “boosted safe haven investments like U.S. government debt and… Continue Reading

Goldman Sachs Expansion in India

This spring, Goldman Sachs announced that it would be acquiring the Benchmark Asset Management Company, which is an asset management company in India.  While the terms of the transaction were not disclosed, this is certainly interesting information both for Goldman Sachs, and for business in India. Founded in 2001, Benchmark Asset Management Company is the… Continue Reading

Taking a Glance at Economic Recovery

World Trade a Winner Somewhat surprisingly, world trade in South Carolina enjoyed some really impressive results last year irrespective of what has been going on with financial recovery in other areas. A report put out by the Los Angeles County Economic Development Corp. found that the increase in trade was “so sudden,” many industry sectors… Continue Reading

Northland Expanding Holdings in Austin

During the five years from 2005 until 2010 Northland Investment Corporation became Austin, Texas’ largest owner of multifamily housing. With the acquisition of a development containing almost 4,500 units, Northland became a major player in the Austin real estate market. In August of 2010 Steven P. Rosenthal, Northland President and CEO, added to their already substantial… Continue Reading

Global Growth

Which Countries Are Participating? It seems like there are some countries with all the money and others that have none. That might not be so far from the truth; at least, until recently. Currently, there are six “emerging economies” which are likely to “account for more than half of all global growth by 2025.” These… Continue Reading

New York Energy Budgeting

Finding the Right Utility Company For those living in New York, there are many energy choices available so it’s important to research all options ahead of time.  News today reported that there was an increase in oil in the Big Apple, which may have been surprising following prices over the last three months.  There was… Continue Reading

British Homes in Slump

Bad News for British Housing Market While Scotland may be doing well in the economic recovery sphere vis-à-vis employment, the picture doesn’t look quite as pretty when you turn to Britain’s housing market. Indeed, just since 2007, prices have dropped by £40,000 and there isn’t expected to be any improvement until around 2015. Just in… Continue Reading