This week, the stock market closed above 10,000 for the first time in over a year, but is it time for investors to breathe a sigh of relief? Hmm. Maybe you shouldn’t spend that bonus money just yet ... Books addressing money issues are among those our editors and writers have chosen here. They include a study of how the rich really live, a follow-up to the bestselling Freakonomics, and advice on how to profit from the recent crash — and future ones. We’ve also got a short new novel from
Dan Klein runs the 401(k) plan at a small New Jersey hazardous-materials company, so when it comes to investing advice, he’s the go-to guy for his coworkers. Ask for help and he’ll explain the difference between stocks and bonds, value and growth. He may even suggest a portfolio. It’s fun, Klein says: “I probably should have been a financial planner.” ... Maybe so, but there’s just one problem: He’s not one. Klein does have a midcareer MBA, but he went to school for chemical
A New Friend in North Korea? ... The Bush administration makes a deal with North Korea, announced today, for inspectors to visit some facilities. North Korea is also to disable a reactor that produces weapons-grade plutonium. In exchange, the U.S. takes North Korea off the list of countries that sponsor terrorism. A State Department spokesperson says the deal, shepherded by Secretary of State Condoleezza Rice, includes “every single thing” the U.S. asked for ... (For more on this news,
MOHAMED EL-ERIAN, THE CHIEF EXECUTIVE OF PIMCO and its co-chief investment officer, has predicted that the U.S. economy will be moving into a sluggish "new normal" stage when the recession ends. That stage will be marked by annual gross domestic product growth of no more than 3%, stubbornly high unemployment and more government intervention than was the norm before the financial-sector eruption and meltdown ... Pimco, known formally as Pacific Investment Management Co., has created a mutual
Investors are beginning to wonder when the Federal Reserve will raise interest rates. Judging by last week’s Fed meeting, it probably won’t be anytime soon, these brokerages say ... Who’s Talking : Liz Ann Sonders, Senior Vice President and Chief Investment Strategist, Charles Schwab & Co ... The Gist : The Fed may be shifting gears on the economy, but it’s in no hurry to raise interest rates ... The Federal Open Market Committee (FOMC) meeting last week gave no hint of an answer about
THIS HASN'T BEEN A GREAT YEAR FOR MANY "SAFE" stocks because aggressive investors have bet on turnaround candidates and those that may benefit directly from a recovering economy ... Property-and-casualty insurers probably are the safest major part of the financial sector, thanks to their strong balance sheets and ample earnings. Their stocks, however, have trailed the market this year, after outpacing it in 2008, as Wall Street favors formerly beaten down financials, including life insurers,
Credit makes the world go 'round. It's part of the modern world, like electricity. In the banking crisis of the last year, the lights went out. Credit went away. It's what made the recession as deep and as scary as it was ... Lots of people think credit is evil -- that borrowing is a sin. They quote Shakespeare, saying "Neither a borrower or a lender be." I've never understood what was supposed to be so damn profound about that statement -- except that Shakespeare wrote it, so I guess it sounds
YEARS AGO, PETER EHRET WAS FISHING ABOUT 30 miles off the Florida Keys when he saw an empty raft, adrift in the indigo-blue ocean. The refugee-escape vessel was little more than some wood planks held together by metal rods, with two oars for power ... Today, the 46-year old lead manager of the AIM High Yield Fund A and global head of high-yield investment for Invesco fixed-income worldwide keeps a picture of the empty craft in his Houston office. It's a reminder to him of how insignificant
Investors poured $8.5 billion into TIPS (Treasury Inflation-Protected Securities) funds in the second quarter, double the amount in the same period last year, according to researcher Strategic Insight. It’s easy to see why: When inflation rises, so does the face value of these bonds. In this case, inflation is measured by the Consumer Price Index, better known as the CPI, a representative basket of goods and services purchased by Americans. But that calculation is precisely why some money
VITALIY N. KATSENELSON SPENT HIS YOUTH in Murmansk, a city in northwest Russia perhaps best known to Westerners as a setting for The Hunt for Red October ... The Russian navy was a popular career track there. But Katsenelson, now 36, emigrated to the U.S. with his family in 1991, when he was 18. He took a keen interest in finance, earning undergraduate and graduate degrees at the University of Colorado/Denver. Since 1997, he has worked at Investment Management Associates, a Denver money manager