Archives for December 2010

December 2010 - Page 5 of 9 - Money Morning - Only the News You Can Profit From

Healthcare Mandate Question: Should the U.S. Government Require Everyone To Buy Health Insurance?

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In a year of sweeping overhauls in healthcare, financial reform and tax policies, critics of U.S. President Barack Obama's proposals have called them ineffective, shortsighted and misinformed.

This week, in a case that will likely go all the way to the Supreme Court, a federal District Court judge in Virginia added the term "unconstitutional" to that pointed list.

The provision in question is part of the Patient Protection and Affordable Care Act of 2010, the U.S. healthcare reform initiative signed into law in March. It requires all Americans, unless exempted for religious or other reasons, to carry health insurance – or to pay a penalty for failing to do so.

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Eurozone Forecast: How to Profit From the Hidden "Good News" in Europe

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If you wanted to describe how most of the European nations fared in 2010, you would do so quite easily by citing the old adage: "If it wasn't for bad luck, they'd have no luck at all."

Truth be told, Europe was in the news for most of 2010 – but for all the wrong reasons. A series of financial panics hit the weaker Eurozone countries hard, forcing draconian austerity measures in many countries and igniting concerns that the euro may not survive as a currency.

Against such an unappealing backdrop, it's no real surprise that any positive information tends to be overlooked.

And that's truly unfortunate, since for much of Europe – and for its stock markets – 2011 should be a pretty good year.

To understand what's really happening in Europe, please read on…

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Obama Tax Deal Sets the Bull Running

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U.S. President Barack Obama's tax deal has yet to pass Congress, but the compromise – hatched as an appeasement to Republican opposition – already has had an effect on the currency and stock markets.

What's more is the deal looks as though it could offer a significant impetus for the U.S. economy as we move into 2011.

What has happened in the political arena over the past month has been magnificent theater. I don't believe in coincidences, so we have to try to understand what is being staged.

Consider the following:

Just weeks ago we had the stunning compromise by Irish officials with their new European overlords. Then the Standard & Poor's 500 Index reversed at the well supported 1,175-level and its 50-day average. Then came a positive reaction to a weak jobs report. Then U.S. Federal Reserve Chairman Ben Bernanke went on "60 Minutes" to explain the Fed's monetary program. And finally President Obama went on television to announce his tax compromise.

What's the play? Here's a guess.

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Sinopec Continues China's Latin American Energy Moves With $2.45 Billion Argentina Deal

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China's state-run oil and gas giant China Petroleum & Chemical Corp. (Sinopec) (NYSE: SNP) on Friday announced it would buy Occidental Petroleum Corp.'s (NYSE: OXY) Argentine operations for $2.45 billion, a key sector move highlighting the growing trend of China's increased presence in Latin America's valuable energy properties.

The properties produce about 44,000 barrels of oil equivalent a day. Sinopec said in a statement the purchase would "prove significant in cementing economic ties and boosting trade between China and Argentina."

China's continued venture into the Latin American energy industry has led the country to spend more than $15 billion in deals there this year, with more likely to come.

"There is not a single CEO of a major oil company in Latin America, not one, who has not been approached by the Chinese," a M&A banker at a western bank told the Financial Times.

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U.S. Economy: Five Ways to Profit in 2011 - Even With A Double-Dip Recession

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2010 was a dull year for the U.S. economy.

But don't expect a repeat in 2011.

In fact, as we enter the New Year for the U.S. economy, investors face some major risks.
Should the U.S. Federal Reserve opt to maintain its record-low level of interest rates, it's very
likely that we'll see the kind of virulent inflation that will send commodity prices skyward,
and it could inflict some real long-term damage in the process.

With higher rates, the U.S. economy could experience its second downturn in three years,
the kind of "double-dip" recession that would boost an already scary jobless rate – while also
sending U.S. stocks into a bearish tailspin.

Uncertainty is the watchword for U.S. economy in the New Year.

Investors need to position themselves to cash in, should the currently anemic U.S. advance
continue… while at the same time making sure to protect themselves against a potential
downturn.

Read this free report to find out how to do both…

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U.S. Stocks Reach a Pivotal Point as Goldman Sachs Predicts a 2011 Rally

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Stocks clicked around the flat line much of the past week until the tumblers of the lock finally fell into place and prices were freed to go higher on Thursday and Friday.

The Standard & Poor's 500 Index quietly gained 1.2% over the week to close at a new two-year high, while the Nasdaq Composite Index rose 1.7% to a three-year high and the Russell 2000 small-caps rose 2.7%.

To find out what direction stocks are headed, read on...

U.S. Dollar Forecast: Seven Ways to Profit in 2011 - Despite the Greenback's Expected Struggles

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The U.S. dollar faces a long list of challenges in the New Year.

The U.S. greenback could strengthen in 2011-but only against the European euro and other currencies with heavy exposure to the European debt crisis, including the British pound sterling. Against virtually every other currency, however, the U.S. dollar is likely to be the loser.

In short, the outlook for the dollar in the New Year depends almost entirely on which currencies you're comparing it with.

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Buy, Sell or Hold: Todd Shipyards Corp. (NYSE: TOD) is a Mid-Cap Stock That's Ready to Break into the Big Time

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In today's modern economy, it is getting harder and harder to find organic growth.  That's why I was always seeking out the next great mid-cap stock when I was a fund manager.  What I mean by that is that I wanted to find a small-cap stock that hit the magic growth spurt that makes a true mid-cap stock.

Mid-caps are the stocks that get bought out.  It's the sweet spot for mergers and acquisitions (M&A) activity.  In the U.S. defense industry, most of the mid-caps are gone.  In fact, this week's pick for "Buy, Sell or Hold" is something of a forgotten defense play.

If you like a company that has no debt, a huge pile of cash compared to its market cap, organic growth and whose stock is paying a dividend, then you might be interested in Todd Shipyards Corp. (NYSE TOD).

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U.S. Companies' $1.93 Trillion Cash Hoard Biggest in 51 Years

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U.S. corporations are piling up cash at the fastest rate in half a century. But instead of signaling a new wave of spending, that cash pile may mean tough times ahead.

Non-financial companies in the United States had stacked up $1.93 trillion in cash and other liquid assets at the end of September, up from $1.8 trillion at the end of June, the U.S. Federal Reserve said Thursday. Cash made up 7.4% of the companies' total assets -the largest chunk since 1959.

But capital spending and plans to hire new workers remain subdued, showing the deep concern companies harbor about a painfully slow economic recovery that has failed to put a dent in high unemployment and reignite consumer spending.

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Miracle on Wall Street: Will a "Santa Claus Rally" Bring Christmas Cheer to Investors?

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Seasonal market indicators are often spotty, but the so-called "Santa Claus rally" has some solid statistical backing.

The Santa Claus rally lacks a concrete definition, but the gist of the theory is that stocks perform well in December – particularly in the period between Christmas and the first days of the New Year.

Indeed, December traditionally has been the best month for U.S. stocks. The Standard & Poor's 500 Index has posted positive returns in December 77% of the time since World War II, compared to 59% for all 12 months.

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