This Company Proves Stocks Aren’t Dead…
by Louis Basenese, Oxford Club Senior Analyst
The Oxford Portfolio Update – February 12, 2009 (Broadcast #845)
I was only two-years-old when BusinessWeek ran its infamous “Death of Equities” cover on August 13, 1979… just before the Dow started one of the greatest bull-market runs ever.
The cover was one of the biggest blunders in publishing history. And the lesson shouldn’t be lost on anyone.
Stocks don’t die. They just endure tough times. And right now, we’re enduring… Read more…
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Corporate Profits Might Be Falling, But Don’t Let Yours…
The Oxford Portfolio Update - January 22, 2009 (Broadcast #842)
by Louis Basenese, Oxford Club Senior Analyst
Forget the four-day rally for the S&P 500. Or the fact that it traded above its 50-day moving average yesterday for the first time in weeks. Unless you’re a technician, these feats hold little value.
What matters instead, is what’s going on at the company level. And two headwinds exist that can’t be overlooked.
First, companies keep cutting dividends. At the fastest pace in 50 years, no less, according to Howard Silverblatt, Senior Index Analyst at S&P. Already this year, seven companies in the Standard & Poor’s 500 index have decreased their dividends, wiping out roughly $12 billion in payments investors were banking on. Read more…
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Stock Profits from Today’s “Maximum Pessimism”
by Louis Basenese, Advisory Panelist
Senior Analyst, The Oxford Club
Wednesday, January 21, 2009: Issue #919
Yesterday was a train wreck for State Street Corp. (NYSE: STT). The stock cratered 59%. But don’t read too much into it…
Sure, the company’s quarterly results sent most investors into shock. A 71% drop in earnings? Another $1 billion in new credit exposures? If no one’s lending, how in the world are they just now discovering this liability?
I’ll be the first to confess, I flubbed the extent of the downturn in the financial space. Last April, I recommended “backing up the truck” and playing the rebound via the Financial Select Sector SPDR ETF (AMEX: XLF). Instead of a short-term opportunity, it’s turned into a really long-term rebound play. Read more…
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Investing in China: 11 Reasons Why & 5 Ways to Buy
by Louis Basenese, Advisory Panelist, Investment U
Associate Investment Director, The Oxford Club
Wednesday, January 14, 2009: Issue #915
It’s time to make a big bet and begin investing in China.
I know. It’s not exactly a popular stance. And the smart money is doing exactly the opposite. Or so it appears…
Yesterday, the Royal Bank of Scotland hit up the China ATM for a $2.37 billion withdrawal. It sold its entire 4.3% stake in Bank of China. And a week ago, Bank of America cashed out part of its stake in China Construction Bank Corp. for an estimated $2.83 billion.
Making matters worse, the MSCI China Index lost a record 53% last year. It’s counter-intuitive and near impossible to rationalize adding money to a losing investment…
Read more…
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