Barring a year-end shocker, 2010 will go down as a good year for stocks. The S&P 500 is up more than 10% this year, and roughly 75% of stocks in the index are in the black in 2010. Of course, the other 25% would like to get past 2010,… Read More

The economic downturn was brutal for the ad industry. Advertising is the first thing to get cut when companies grow cautious, and ad budgets are only now beginning to thaw out. Investors have spotted the turn, bidding up shares of key players. But if you have a 3-4… Read More

When it comes to handling the deepening European economic crisis, policy planners have no playbook. They’re winging it, coming up with repeated incremental steps to try and limit the spreading contagion. Thus far, they’ve failed. An increasing number of countries can’t seem to weather the storm on their own, yet there are clear limits to how much the stronger European countries can really help. In a worst case scenario, the economic crisis may deepen much further in the first half of 2011. Make no mistake, U.S. investors won’t be insulated from Europe’s problems. Here’s what you need… Read More

When it comes to handling the deepening European economic crisis, policy planners have no playbook. They’re winging it, coming up with repeated incremental steps to try and limit the spreading contagion. Thus far, they’ve failed. An increasing number of countries can’t seem to weather the storm on their own, yet there are clear limits to how much the stronger European countries can really help. In a worst case scenario, the economic crisis may deepen much further in the first half of 2011. Make no mistake, U.S. investors won’t be insulated from Europe’s problems. Here’s what you need to know… A tale of two regions The myth that Europe is one big economic zone is starting to come undone. France and Germany just reported notable increases in employment, while southern neighbors showed big spikes in unemployment. It wasn’t supposed to work that way. The decision to create an economic union and a common currency was expected to lead to balanced and mutually beneficial growth. Instead, the stronger countries are pulling away from the pack and the weaker countries have started to move into a self-reinforcing cycle of negative… Read More

My first rule of investing: never buy stock in a company simply because you think it will be bought out. Simply put, most rumored deals never happen. But I do like to keep an eye the rumor mill, because it can often point the way to intriguing companies that still… Read More

With companies sporting abnormally high levels of cash these days, they’re feeling greater pressure to give something back to shareholders. A dividend hike is the normal route, but an increasing number of companies are initiating massive stock buybacks.     I looked… Read More

We’re entering the back half of December, which is one of the slowest times of the year in terms of market trading volume. And lower volume means higher volatility, as just a few traders can move a stock sharply if there’s no one around for the counter trade. That means this is no time to be complacent — especially when a key stock market indicator is signaling potential trouble. The Relative Strength Index (RSI), which helps investors determine whether the market is undervalued or overvalued in the near-term, is sending a clear signal: the market… Read More

We’re entering the back half of December, which is one of the slowest times of the year in terms of market trading volume. And lower volume means higher volatility, as just a few traders can move a stock sharply if there’s no one around for the counter trade. That means this is no time to be complacent — especially when a key stock market indicator is signaling potential trouble. The Relative Strength Index (RSI), which helps investors determine whether the market is undervalued or overvalued in the near-term, is sending a clear signal: the market is sharply overbought. The RSI compares recent gains with recent losses, dividing the trading days with gains by trading days with losses, and also accounts for the magnitude of those moves. [See our definition  in InvestingAnswers.com for more] After an extended period of mostly losing sessions, the RSI will slump, sometime below 30, which is used by many as a clear buying signal (also known as when the market is “oversold”). And when the market is steadily rising, this index moves well higher, and investors generally become concerned that we’re… Read More

One of the curious aspects of the recent rebound in the IPO market is the heavy slate of China-based companies in the mix. It remains pretty hard for U.S.-based companies to line up a deal, but investment bankers have had little trouble if the… Read More

The recent agreement in Washington to resolve the tax impasse has led many economists to re-check their assumptions about the economy in 2011. Their conclusion: the outlook for 2011 just got a little better. Let’s look at the specific economic indicators, and where most think they will be by… Read More

There is a whole range of ways to value a company, from its price-to-earnings (P/E) ratio to its Return on Equity (ROE). Yet investors should really be focused on free cash flow (… Read More

Once a quarter, investors take note of a wide range of buying and selling by company insiders. These folks can only buy and sell the stock of their respective company for a fixed period after earnings have been released. With many companies rolling out quarterly results about a month… Read More