Archives for August 2010

August 2010 - Page 4 of 10 - Money Morning - Only the News You Can Profit From

During the Hottest Summer in Years, it's Time to Start Pursuing Cold Weather Profits

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Take our word for it: Even though much of the nation has experienced record high temperatures this month, it'll be plenty chilly before you know it – and if you want some hot profits to warm you up come January, you'd be smart to think "winter" in August.

No, we haven't been sneaking refreshments from a St. Bernard's K9 cask: The reality is that a lot of companies that specialize in cold-weather products are stuck in the summer doldrums right now, meaning their share prices are in the cellar.

But, when rising winter demand ramps up their sales and profits, those stock prices will likely march higher, right along with your monthly heating bills.

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South Korea Moves on U.K. Energy Assets as Competition with China Increases

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Korea National Oil Corp. (KNOC) on Friday made a hostile bid for the United Kingdom's Dana Petroleum PLC, marking the first time a state-owned Asian company has gone directly to shareholders.

The move underscores South Korea's determination to double its oil output by 2012 and increase its energy security. It also shows that South Korea will not be denied energy assets, despite being outbid by Chinese companies in several instances.

KNOC took the $2.9 billion (1.87 billion pound) bid to Dana's shareholders after the oil explorer rejected KNOC's previous offer of 1,800 pence a share offer. In a filing with the London Stock Exchange, KNOC said it had support from 48.62% of shareholders, putting the needed 50% approval target within close reach.

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How Washington Should Handle the Bush Tax Cuts

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The big political issue for the remainder of this year will be the so-called "Bush tax cuts" engineered by U.S. President George W. Bush in 2001 and 2003.

Those tax cuts are scheduled to expire on Dec. 31, with taxes reverting to their 2001 levels.

It's not at all clear which of the cuts will be extended and which will be repealed.

But one thing is clear: The outcome of the Bush-tax-cut debate will have major implications for the U.S. economy.

To understand the economic implications of extending the Bush tax cuts, please read on...

Three Ways to Brace for a Double-Dip Recession: Recession-Proof Stocks

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Today (Friday) we conclude our series on bracing for a double-dip recession.

In Part I of this investment series, "Three Ways to Brace for a Double-Dip Recession: Going for the Gold," we discussed ways investors could safeguard against the imminent decline of the U.S. dollar by buying gold.

In Part II, "Three Ways to Brace for a Double-Dip Recession: Going Global," we
explored potential investments in foreign countries that have more stable economies and better growth prospects.

And today, we're going to conclude by looking at "recession-proof" stocks right here in the United States.

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Money Morning Mailbag: Ending Bush Tax Cuts Not a Cure-All for U.S. Financial Woes

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The question of whether or not to extend the Bush tax cuts will be a pivotal issue as Washington prepares for this year's midterm election.

The Congressional Budget Office yesterday (Thursday) reported that extending the tax cuts would result in only short-lived economic benefits.

"[It would provide] a considerable boost to economic activity in 2011 and beyond for a few years," CBO Director Douglas Elmendorf told CNN. "Over time, [however,] the negative consequences of very high federal borrowing build up."

The CBO reported that if the cuts for most U.S. taxpayers were made permanent – as proposed by U.S. President Barack Obama – the nation's accrued debt (not including money owed to Social Security and other government trust funds) could climb to 100% of gross domestic product by 2020, up from 62% this year.

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GM's IPO Filing Reveals Challenges That Could Discourage Investors 

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When General Motors Co. filed registration papers for an initial public stock offering (IPO) on Wednesday, it also revealed the formidable challenges it faces – some of which may give pause to investors considering taking a stake in the venerable automaker. The 734-page document GM filed with the Securities Exchange Commission (SEC) paints a picture […]

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China Dumps the Dollar as Yields Sink

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China cut its holdings of Treasury notes and bonds by the most ever in June, instead favoring the debt of Europe, Japan and Korea. The move has fueled speculation that plummeting U.S. yields are driving away the Asian giant, which has ambitions for its currency, the yuan, to replace the dollar as the world's main reserve currency.

China's holdings of long-term Treasuries fell by $21.2 billion in June to $839.7 billion, a U.S. government report showed recently. Total Chinese investment in U.S. debt declined 2.8% to $843.7 billion, the smallest in a year, following a 3.6% slide in May.

The shift comes as President Barack Obama increases U.S. debt to record levels, making it harder to finance sales to sustain the U.S. economic expansion.

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Investing Strategies: How to Protect Yourself if the U.S. Economy Catches the "Japan Disease"

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Grim unemployment figures, growing worries about crushing debt loads and the apparent absence of any inflation are causing many investors to ask a tough question: Is the U.S. economy catching the "Japan disease," the dreaded and dreadful malaise that has left the onetime Asian powerhouse in a stagnant state since 1990?

It's a crucial question.

And the answer will guide your investment decisions for the next 20 years.

To find out the best investments to be making right now, please read on…

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