The Power of a Penny

April brings flowers and baseball. But it’s also a frantic time for anyone in the investment business, as companies with a fiscal year end of December 31 start to report their first quarter earnings. As I wrote in Money Grab, this can be very stressful: Companies that beat Wall Street analysts’ estimates could see their … More The Power of a Penny

Why Gold Has Lost Its Glitter: Don’t Rush to Buy

July 10, 2013 Until its price peak in late 2011, gold had been in a twelve year bull market. Its price appreciation accelerated following the 2008 financial crisis, more than doubling from less than $800 an ounce in 2008 to over $1,800 per ounce in 2011. During 2013, however, gold lost its glitter. The price … More Why Gold Has Lost Its Glitter: Don’t Rush to Buy

Bonds: Getting Kicked Off the Playground

June 15, 2013 Most financial advisors have typically recommended that investors allocate a certain percentage of their portfolio to bonds. Depending on your age, risk tolerance, and income needs, that percentage may range from 25-40% or even higher. Historically, bonds have not only supplied steady income to a portfolio, but have also reduced overall risk … More Bonds: Getting Kicked Off the Playground

Can Genworth Make Enough Money in Long-Term Care Insurance?

June 10, 2013 In May 2004 General Electric (GE) spun off many of its financial operations into a new company called Genworth (GNW). These operations included domestic and international mortgage insurance, life and long-term care insurance, international payment protection insurance, and wealth management. The financial crisis of 2008 nearly swamped the new company, due to … More Can Genworth Make Enough Money in Long-Term Care Insurance?

Apple: Is it Safe to Take a Bite?

4/29/2013 Apple stock dropped 44% in seven months, from its peak of around $700 in September 2012 to $390 in April 2013. The drop was due to slowing growth, a dearth of exciting new products, increasing competition, compressing margins, and negative year-over-year earnings comparisons. Analysts demanded a more shareholder-friendly use of the company’s huge cash … More Apple: Is it Safe to Take a Bite?

Apple: A Big Dividend Hike Would Send the Wrong Message

March 28, 2013 Analysts expect a big dividend hike before Apple’s April 2013 earnings report, pushing the yield to around 3.5%, in line with Microsoft at 3.3% and Intel at 4.1%. This would send exactly the wrong message to investors, and would guarantee that Apple would not regain its September 2012 $700 value anytime soon. … More Apple: A Big Dividend Hike Would Send the Wrong Message