Howard Marks thinks that the drop in oil prices could finally expose low lending standards and provide better value in the markets.» Read More
A former Goldman Sachs executive, now working with the NFL Players Association, is crying foul against his former employer's negotiating tactics .
As a labor dispute between NFL owners and players drags on — and the viability of the 2011 season grows questionable — the rhetoric between the two sides is becoming more heated.
Nicole Lapin, of CNBC's Worldwide Exchange, explains what she's long and what she's short this week.
"Stock indexes headed lower on last day of year" (Yahoo Finance via AP) "Investors are taking profits after a strong year in the stock market. The Standard & Poor's 500 index and the Dow Jones industrial average are both up 14 percent for the year, including dividends, as a result of solid corporate earnings. The Nasdaq composite index, meanwhile, is up about 18 percent for the year after dividends."
Unexpectedly Strong Manufacturing and Labor Numbers Surprise Investors (Financial Times) "Hopes of an acceleration in the US economic recovery in 2011 received a boost as fresh data on the health of the manufacturing sector and the labour market were strikingly better than forecasters had predicted. The Chicago purchasing manager’s index, — a measure of manufacturing activity in the Midwest — soared from 62.5 to 68.6, the highest level since the late 1980s and way above economists’ expectations. Meanwhile, the outlook for the jobs market brightened as the number of Americans filing to receive jobless claims unexpectedly dropped below the 400,000 mark for the first time in more than two years." And yet all major U.S. indices close down for the day. Interesting.
"Who's Afraid of Rising Rates? Pros Get Ready For Move" \(CNBC\) CNBC's Jeff Cox talks interest rates and market impact: "Though historically low interest rates have been at the core of much of the rally across asset classes in 2010, that doesn't mean anticipated higher rates in 2011 will stop investors from making money. Strategists remain bullish on the stock market, with forecasts of 10 to 20 percent gains abounding. But market pros remain mostly sanguine about bonds as well, even though rising rates and accompanying inflation usually eat away at the value of fixed-income instruments."
Forty-eight hours before his swearing in as governor, attorney general Andrew Cuomo has cut a deal with Steve Rattner .
And the terms are favorable — for Rattner.
The upshot is this: Rattner pays $10 million in restitution, and agrees to a ban preventing him from appearing before any public pension fund in New York for five years.
Cuomo's office had originally sought a $26 million fine — and a lifetime ban from financial dealings with New York pension funds.
Various members of the NetNet crew are in and out this vacation and snow-filled week, so we've asked a few friends to fill in. The following is from hedge fund manager and financial columnist James Altucher ...
Whatthetrend.com has an interesting list of the non-tech companies that appeared most on twitter over the past year. Basically, they looked for companies appearing the most in tweets and eliminated Apple, Google, Microsoft, etc. The funny thing about the list is that I've barely heard about some of these companies:
We’ve all seen the deficit numbers. Twenty-five billion for California. Fifteen billion for Illinois. Ten billion dollars for New Jersey.
Meredith Whitney says we will all feel the states' pain in the spring when federal stimulus money dries up.
Some set the D-Day date for states even earlier, possibly even next month. CEO turned Tennessee Governor Phil Bredesen predicted that , in January, some states would have, "A cliff they’ve got to navigate. There’s going to be some dislocation. You’re going to see some problems."
Various members of the NetNet crew are in and out this vacation and snow-filled week, so we've asked a few friends to fill in. The following is from hedge fund manager and financial columnist Joshua Brown ...
Everyone gets stuff wrong, that's the market and that's life. Moreover, people get things right sometimes but for the wrong reasons—that's life as well. The key is not to dwell on who did what right and wrong or the why's and how's. Instead, we want to look at what we can do better on a going forward basis.
So let's make some resolutions together, regardless of what side we're on...
The long losing streak for US equity mutual funds is finally over, and it ended pretty much right on cue.
After showing outflows for 33 consecutive weeks, domestic funds finally saw net inflows for the period ended Dec. 21, according to data from the Investment Company Institute. Though the inflow total was a relatively paltry $335 million, any good coach will tell you a win is a win.
Curiously, the data confirming the end of investors fleeing US funds came out shortly after I filed a piece yesterday headlined “US Stock Funds Could Be Back After Sitting Out 2010 Rally .” The main thrust of the piece was that investment pros were looking at US funds to participate in a widely expected 2011 stock market rally though they’d been treated as poison this year.
Investors instead piled money into bond and non-US funds all year. Indeed, US equity funds represented just a fraction of the total $3.94 billion in inflows to mutual funds last week.
Any good coach also will tell you that one win does not a streak make, but at least it’s a start.
The surging power of activist investors is bolstered by a growing ally: public pensions and other big institutions.
Crude oil futures fell sharply, signaling traders that the selling is not over.
The Fed gave banks more time to meet a provision in the Volcker rule that bans them from betting with their own money through investments in risky hedge and private equity funds.