Archives for August 2013

August 2013 - Page 11 of 14 - Money Morning - Only the News You Can Profit From

What a QE Taper Means for Markets and the Next Fed Chair

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On Tuesday, Federal Reserve Bank of Chicago President Charles Evans announced that he wouldn't be surprised if the central bank begins to taper its $85 billion monthly bond-buying program in September.

Evans is the third official this week to signal a QE taper. Richard Fisher, president of the Dallas Fed, and Dennis Lockhart, president of the Atlanta Fed, parroted Evans' sentiment.

While Fisher indicated he would prefer to cut back bond purchases in August, Lockhart stated a preference for a September QE taper, although the Fed could wait longer if economic growth and unemployment trends reverse.

But it is Evans' announcement that is the most important. Evans is a member of the activist wing of the Federal Reserve. These members strongly support unconventional monetary policies such as bond buying, which are designed to reduce borrowing costs to spur aggregate demand and hiring across the country.

His views reflect those of the majority of members of the FOMC, the Fed's monetary policy committee.

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I Just Uncovered Some Shocking Numbers About China

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There are few things more exciting in the investment business than finding a golden opportunity staring you in the face.

That's why I do a lot of research. Because I know that the more I dig, the greater the chance I will find something that others miss, that leads to big opportunity.

Just like when I revisited China's recent economic data, looking for something in there that indicates whether the country's economy is any closer to reviving its engine of growth.

And its stock market, too.

The Chinese stock market has fallen 40.9% since August 2009, leading Oppenheimer to refer to it as a "dead animal" and millions of investors to conclude it's a lost cause.

All the more reason to dig…

How to Collect Killer Profits from this New High-Tech TV

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I invested countless hours and thousands of dollars putting together a state-of-the art home theater at our house here in Silicon Valley.

It's so good, in fact, that family members and friends tell my wife and me that it's actually better than going out to the movies.

Just last year, I upgraded the theater space with a new 60-inch plasma technology high-definition TV (HDTV). Watching Blu-ray DVDs on this monitor makes the movies we watch seem so realistic that you duck during explosions and want to reach out and touch the actors that are right there before you.

So, imagine my frustration when I recently learned that the largest and most expensive "appliance" in my home is about to become obsolete.

And the odds are pretty doggone good that you're facing the same dour realization …

But the news isn't all bad.

Every change, you see, brings new opportunities…

And today I'm going to tell you about a great one – small-cap firm that offers us a killer way to profit from the $3 billion shift to this new type of high-tech TV set …

Expansion of Consumer Credit is a Boon - When Done Right

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As Wal-Mart Stores Inc. (NYSE: WMT) showed us this week, consumer credit is finally expanding in the United States.

The retailer broke into the banking industry after years of opposition from banks and labor unions. Bloombergreports that Wal-Mart is now backing Progress Financial.

Progress Financial is one of an increasing number of lending institutions that provides service to people without bank accounts or with bad credit history; primarily, it targets the approximately 23 million U.S. Hispanics who are characteristically unable to borrow due to their limited credit histories.

"Progress fills an important niche," Brian Melzer, an assistant professor of finance at Northwestern University's Kellogg School of Management, told Bloomberg. "They take people who banks won't take risks on…These people are getting access to credit. A certain amount of that is going to be spent at Wal-Mart."

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Is Bill Ackman's Air Products Helium Bet Full of Hot Air?

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Bill Ackman is trying to find a winner. Over the past two weeks, Wall Street kept its eye on one of richest and shrewdest hedge fund managers in the game.

Speculation about his target increased as he informed investors that he was seeking to make another splash in an "undervalued" company. And he certainly did, his biggest splash ever.

Ackman's recent $2.2 billion stake in Air Products & Chemicals Inc. (NYSE: APD) is certainly a buoyant pick. His Pershing Square Capital Management acquired a 9.8% stake in the industrial gas company, which is also the world's largest producer of helium and hydrogen.

It was a lofty bet by Ackman, who had garnered attention for a quiet accumulation of $1 billion in recent weeks. Earlier this month, Ackman told investors that he was specifically targeting a large-capitalization, investment-grade company with a lot of upside.

The purchase of APD could prove to be even shrewder, if Congress is unable to address the looming shortage of helium, a critical industrial gas in the production of MRI machines, semiconductors, aerospace equipment and lasers.

And Ackman can profit as demand continues to surge around the world.

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Unlocked: The Fastest-Growing Companies in America

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IPOs are back, big time. Even unsexy companies are sprouting sweet IPO gains.

Take organic grocer Sprouts Farmers Market. It gained nearly 123% in its first day of trading Thursday – the best initial public offering debut since LinkedIn more than two years ago.