For some investors "there still is a case of once bitten, twice shy,” says one money manager. If that describes you, here's some things to consider in weighing your fixed income and equities options.
Tuesday, 13 Oct 2009 | Posted By:
Robin Knight | Source: CNBC.com
Risky assets will continue to outperform safer assets and investors should stick to bonds and quality stocks such as Johnson & Johnson, Intel and CSX, instead of Treasurys and cash, Bob Doll, vice chairman and global CIO of equities at BlackRock, told CNBC.
On the last day of Sept. 2008, one of the wildest, scariest months in U.S. financial history, the Wall Street-Washington roller-coaster starts climbing again.
As events go, Saturday seems more sedate than it has in weeks. But it's a false calm, as Washington scrambles to find common ground on a financial rescue plan.
Pres. Bush goes on TV Thursday and urges Congress to quickly pass a $700 billion rescue package for the U.S. financial system. Key lawmakers say they've reached an agreement, in principle, on the major parts of the plan.
Paulson, Bernanke back on Capitol Hill to sell the bailout. Fed coordinates with Australian and Scandinavian central banks to keep global finance running. Goldman Sachs sells $5 billion in common shares.
Treasury Secretary Hank Paulson and Fed Chairman Ben Bernanke head to Capitol Hill to sell the $700 billion bailout plan. Warren Buffett invests $5 billion in Goldman Sachs. WaMu talks to suitors about a takeover.
Euphoria fades Monday as the market digests previous days' events. Japan's Mitsubishi seeks a piece of Morgan Stanley—killing hopes for a Morgan/Wachovia merger. And NYSE adds 30 stocks to the "no short" list.
The Bush administration and Congress step up talks Sunday on an historic $700 billion bank bailout — racing the clock to stem further financial market turmoil.
Saturday begins another weekend of little rest for Wall Street or the U.S. government. A gigantic financial rescue plan is going to Congress. Democrats seek changes to the bill — including help for homeowners and a salary cap for CEOs. If the plan is approved, the government could purchase as much as $700 billion in mortgage-related assets from U.S.-headquartered institutions.
The Treasury plans to re-create the Resolution Trust Corporation. Calpers says it will no longer loan out shares of Goldman Sachs and Morgan Stanley to short sellers. Central banks worldwide announce plans to support money markets.
Bond investors need to think like lenders, because their money needs to be productive, said Bill Larkin, portfolio manager at Cabot Money Management.... Read More
Momentum could push oil toward $90 a barrel in the shortterm, but an increase in supply from Nigeria and Iraq will place downward pressure on the commodity come spring 2010, said Michael Lynch, president of Strategic Energy & Economic Research.... Read More
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