January 2009
U.S. home value plunged 25 percent from the peak
A closely watched gauge of U.S. home prices, the S&P Case-Shiller home-price
index, showed accelerating price declines in November. Home values in 20
major U.S. cities fell a record 18.2 percent in the 12 months ending in
November. No city experienced year-over-year price gains, the eighth
straight month that has happened.
The Case-Shiller 20-city home price index fell 2.2 percent in...
Crude Oil at Five Year Low
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Crude Oil at Five Year Low
A steep decline in crude-oil consumption, coupled with rising inventories,
has pushed prices to a five-year low. After reaching record highs above 147
dollars in mid-July, by December 2008 inflation-adjusted crude-oil prices
had sunk to their lowest levels since early 2004.
On December 19 the New York contract for January plunged to 32.40 dollars a
barrel, lowest reading since February 9,...
ETF Gains Favor Over Mutual Fund
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Consumer prices tumbled again, deflation concerns grow
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Consumer prices tumbled again, deflation concerns...
U.S. Consumer prices tumbled yet again in December, and inflation last year
logged its smallest advance since the early 1950s.
The Labor Department’s latest inflation report, released Friday, showed
consumer prices fell 0.7 percent in December, marking the third straight
month prices fell. An 8.3 percent drop in energy prices led the consumer
prices fall.
For all of 2008, prices...
2.6 million jobs lost in 2008
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2.6 million jobs lost in 2008
Unemployment rate rises to 7.2%, the highest level in 16 years
American employers shed 524,000 jobs in December, bringing the total number
of jobs lost in 2008 to 2.6m, the most since the end of the Second World War
in 1945 when 2.75 million jobs were lost as the wartime economy was
demobilized.
As a percentage of employment, job losses in 2008 totaled 1.8%, the worst
since 1982 and the...
Lessons from tumultuous 2008
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Lessons from tumultuous 2008
We just left the tumultuous year 2008, when U.S. stock market sank almost 40
percent, non-U.S. developed market fell more than 40 percent, and emerging
market tumbled more than 50 percent. Investors reacted emotionally and
indiscriminately selling their stocks, while hedge funds were forced by
clients’ liquidation to dump their stock position. Stock went for roller
coaster rides...
Mutual Funds: Easy & safe from fraud
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Mutual Funds: Easy & safe from fraud
The recent revelation of a multibillion-dollar Ponzi scheme run by Madoff
reinforces classic investment advices, especially for individual investors.
The investors may be in the dark and exposed to investment scheme when they
hand their money over to someone else called financial wizards. Good news,
these days it is pretty straightforward to invest your money prudently and
have direct control...
Worst budget forecast, $1.2 Trillion Deficit
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Worst budget forecast, $1.2 Trillion Deficit
The Congressional Budget Office projected a $1.2 trillion federal government
budget deficit for the fiscal 2009. The projected budget deficit is nearly
two and a half times bigger than the previous record shortfall of $455
billion reached in 2008.
The budget office said its grim budget projection stemmed from the severe
plunge of the economy, which it predicted would contract 2.2 percent in...
How to avoid scam by investment manager
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How to avoid scam by investment manager
In the wake of Madoff hedge fund scam, the SEC will reassure the market that
the commission’s enforcers will do a better job next time. But investors
would be better off helping themselves.
While most investment managers are honest, your investment manager could be
another Bernard Madoff who masterminds the biggest Ponzi scheme in history.
To prevent you from investment scam ran by...
Mortgage in 2009
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Mortgage in 2009
Current financial and housing crisis has provided another golden
opportunity: a fantastic time to get a mortgage. Not if you have poor
credit, to be sure. But you can get a great deal on a 30-year, fixed-rate,
conforming loan these days if you have a solid FICO score, a manageable debt
burden, and proof positive of a reliable income.
You have to go back to around 1961 to find a time when...
Another record low of mortgage rates
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Another record low of mortgage rates
The average interest rates on U.S. 30-year fixed-rate mortgages fell for a
ninth consecutive week, reaching their lowest level in 37 years, according
to a survey released on Wednesday by home funding company Freddie Mac.
Interest rates on the 30-year fixed-rate mortgage dropped to an average of
5.10 percent for the week ending Dec. 31, down from the previous week’s 5.14
percent,...
Lessons from Madoff scandal
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Lessons from Madoff scandal
There were some lessons that investors should learn from the Madoff scandal,
who was allegedly masterminded a giant Ponzi scheme.
Many people and institutions tied up almost all of their assets with Madoff.
While it’s tempting to keep an asset that seems to be doing so well, it’s
important to diversify and regularly rebalance an investment portfolio.
After all, it doesn’t...
Madoff’s hedge fund: A giant Ponzi scheme
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