How Over-Regulating Goldman Sachs Will Lead to Higher Oil and Commodity Prices
After earning hefty profits on its commodities trading for nearly 18 years, heavyweight trader Goldman Sachs Group Inc. (NYSE: GS) now finds itself on the hot seat, defending this crucial source of revenue. And while that may not be good for Goldman, it’s also bad for investors. Let me explain… It all started back in [...]
Is It a Bear Market or Just a Breather For China's Smoldering Shanghai Index?
China's Shanghai Composite Index (SSE) has been the world's best performing major market index this year, but it has tumbled nearly 20% since hitting its Aug. 4 peak. Many analysts are concerned that the decline is evidence that China's rapid recovery is unsustainable, but the more plausible explanation is that investors are simply taking profits [...]
Despite Near-Term Nervousness, Investors Can't Afford to Ignore China
Money Morning Staff Reports With China's Shanghai Composite Index (SSE) now down about 20% from its Aug. 4 peak – a decline punctuated by a 4.3% drop yesterday (Wednesday) – the Red Dragon's stock market is technically now in bear-market territory. That has the China bashers out in full force and has traders worldwide debating [...]
Why Asia Will Supplant Detroit as the Global Center of the Auto Industry
Asia is poised to become the "new" Detroit. Here in the United States, at a cost of a mere $3 billion, the "Cash-for-Clunkers" program appears to have given new hope to the U.S. auto industry. But that new hope is destined to be short-lived. It's true that – in terms of value delivered for the [...]
Berkshire's Back, So What's Warren Buffett Buying Now?
As shares of Berhshire Hathaway Inc. (NYSE: BRK.A, BRK.B) plunged over the past year, it became fashionable to ask whether or not Warren Buffett had lost his touch. (See: ETF Guide: Down $16 Billion – Has Warren Buffett Lost His Touch?; MSN Money: The problem with Warren Buffett; Forbes: Has Buffett Lost His Touch; Reuters: [...]
Three Reasons China is Positioned to be the Oil Sector’s Next Big Profit Play
If you're looking for the next "Big Oil" play, bet on Beijing. As we've been reporting for the past several years, China has been on a global commodities shopping spree, which includes locking up every source of oil that it can. The Red Dragon has cut deals in Africa, South America Russia and the Middle [...]
Will This Week's Earnings Reports Reflect a Recovery or a Relapse for the U.S. Economy?
Several key second-quarter earnings reports could either validate or undercut assertions that the U.S. economy is poised for recovery. After the Commerce Department reported last week that retail sales fell 0.1% in July from June, and 8.3% year-over-year, retailers will stay in the limelight this week as several high-profile companies report second-quarter earnings. Target Corp. [...]
High-Speed Rail Puts Investors on the Fast Track to Profits in China, but Languishes in the U.S.
Understanding that high-speed rail (HSR) could provide millions of Americans with a cleaner, more efficient way to travel, President Barack Obama allocated $13 billion to its development over the next five years as part of the American Recovery and Reinvestment Act (ARRA) passed in February. But Obama’s high-speed rail initiative has gotten off to a [...]
High Frequency Trading: Wall Street's New Rent-Seeking Trick
Goldman Sachs Group Inc. (NYSE: GS) disclosed recently that it had 46 “$100 million trading days” in the second quarter of 2009. That was a record number, even for one of the biggest players on Wall Street. When the U.S. economy is facing collapse and merger and acquisition volume is way down, it seems odd [...]
How to Take Control of a Job Interview and Make Yourself a Winning Candidate Every Time
[Editor's Note: This two-part story is the latest installment in an ongoing series that highlights unique career strategies for navigating the jobless recovery. To read Part I, which appeared yesterday (Thursday), please click here.] Thanks to your diligent preparation, you made the perfect first impression on your prospective new employer. Now it’s time to close [...]