Market Wrap-Up ... Stocks started strong, then took a dive on Monday as investors got jittery over the dollar and oil prices, sending commodity-based exchange-traded funds on a slide. The euro hit a session low of $1.485 against the dollar as commodity prices reversed in midsession ... The Dow Jones Industrial Average closed down 105 points at 9867. The Nasdaq ended 13 lower at 2142 and the S&P 500 dropped 13 to 1067 ... According to Thomson Reuters, 81% of the 199 S&P 500 companies that have
Merriam-Webster defines “stampede” as “a wild headlong rush or flight of frightened animals.” A biological response by which herd animals avoid predators, the cruel irony of a stampede is that, regardless if it’s wild horses, wildebeests, or human beings, those running the fastest within the fray are often those most likely to end up getting hurt ... And while it’s more difficult to see a stampede in the investment world than out on the range, recent data regarding mutual fund flows
Mutual funds don’t lack for reporting requirements ... Ask anyone who has struggled to un-wedge a bulky prospectus from his mailbox ... An army of math-checkers – fund company compliance officers, independent accountants and government auditors – keep the numbers that fill those reports trustworthy ... If a fund you invest in says it made 20% year-to-date, you can believe it ... Don’t be as confident about the long-term returns boasted in advertisements ... A new study makes clear how
Market Wrap-Up ... Stocks closed down Friday, with energy prices and a broad slide in equities weighing on many exchange-traded funds, even as top-line growth brightened earnings reports ... The Dow Jones Industrial Average dropped 108 points to 9972. The Nasdaq finished down 11 at 2154, and the S&P 500 ended down 13 at 1080 ... Microsoft (MSFT) reported an 18% drop in fiscal first-quarter earnings, but the results easily topped forecasts and the software giant's stock surged ... Honeywell
Last year, financial firms found themselves in an unprecedented downward spiral. As the nation’s largest banks and Wall Street firms teetered on the brink of disaster, they relied on a hand from the federal government. The companies that survived saw their share prices plunge and, in the case of Citigroup (C), fall to around the unthinkable $1 per share mark. These firms — and the mutual funds that followed them — have a long road to recovery ... There is still considerable debate over
Savings rates are paltry ... Money-market funds pay 1% and bank accounts even less ... Commit to a five-year certificate of deposit and you might get 3% ... Stock dividends are laughable, especially considering the extra risk attached to them ... More than a quarter of America's 500 largest companies pay nothing ... The rest offer a median yield of 2% ... Against this backdrop, stocks yielding 16% are equal parts intriguing and suspicious ... Financial planners typically say not to count on
In the markets, a few simple steps can help keep one’s emotions at bay ... We don’t just battle the markets, but our own emotional stability and mental health ... Open trades are a relentless feedback loop ... For six-and-a-half hours a day, at a minimum, you get a real-time reading of how smart or idiotic you may be, and markets don’t discriminate based on experience, expertise or net worth ... No matter what level you play the game, when you’re wrong, its agony, and when you’re
For decades, the U.S. dollar has been among the mightiest currencies in the world. Now, the question on some investors’ minds is how low will the dollar go? ... On Friday, Oct. 9, the dollar Index, which tracks the U.S. dollar against the euro, yen, pound, Canadian dollar, Swiss franc and Swedish krona, touched 75.9, its lowest level since August 2008 ... During the past year, the dollar has been subjected to formidable forces, and one of the most influential has been global economic momentum.
What a difference a year makes ... Twelve months ago the country’s financial system seemed on the brink of disaster, the stock market was enduring weekly triple-digit swings and the government was resorting to bailout tactics the level of which hadn’t been seen in 80 years ... Now, the economy and the market appear to be on the road to recovery — or at least nearing the on-ramp to one. The S&P 500 is up around 20% year-to-date. Financial firms, at the epicenter of the downturn last year,