"We are seeing history in the making. And what's happening in the Middle East is coinciding with some of the mega trends underlying our investment position," note long-standing resource experts Mary Anne and Pamela Aden.

The editors of The Aden Forecast explain, "Here, we review five trends -- related to inflation, interest rates, the U.S. dollar, bonds, and metals -- that should last for many years.

Continue reading Five Mega Trends for the Next Five Years

Five Mega Trends for the Next Five Years originally appeared on BloggingStocks on Thu, 31 Mar 2011 15:30:00 EST. Please see our terms for use of feeds.

Wells Fargo (WFC) was one of the banks to emerge the strongest after the financial crisis. As capital markets improve, we foresee Wells benefiting from and a greater presence than it had pre-recession relative to peers like Bank of America (BAC), Goldman Sachs (GS), JPMorgan Chase (JPM), Citigroup (C) and UBS (UBS).

Here we look at the key factors to watch in the coming months that support our $33.81 price estimate, which is around 10% ahead of the market price.

Continue reading Track These Three Items for Wells Fargo

Track These Three Items for Wells Fargo originally appeared on BloggingStocks on Sat, 26 Mar 2011 11:40:00 EST. Please see our terms for use of feeds.

The markets were full of contradictions last week. Take for example the turmoil in the Middle East. In past crises, investors flocked to the U.S. dollar. But not this time. The U.S. dollar futures contract fell to 76.41 last week.

Another contradiction: the U.S. jobs report was the best in two years, with 192,000 new jobs added. The stock market should have rallied strongly. Instead the Dow fell 88 points. The crises in Libya and elsewhere overshadowed the favorable jobs picture.

Continue reading Euro Trades Above $1.40 on Expectation of Higher Rates

Euro Trades Above $1.40 on Expectation of Higher Rates originally appeared on BloggingStocks on Mon, 07 Mar 2011 07:00:00 EST. Please see our terms for use of feeds.

The U.S. dollar is coming under increasing pressure on several fronts. First and foremost is oil. Oil closed at $102 per barrel Wednesday for the first time in over two years. Oil has been driven upwards by the turmoil in the Middle East. The Libyan situation is getting worse with both sides vowing to fight on. There is unrest throughout the Arab region. The great fear for the West is that oil flows may be disrupted. The U.S. dollar usually moves inversely to oil. Today the March futures closed at 76.689, down .394

Continue reading U.S. Dollar Is Getting Hammered

U.S. Dollar Is Getting Hammered originally appeared on BloggingStocks on Thu, 03 Mar 2011 09:20:00 EST. Please see our terms for use of feeds.

The housing market got a bit of bad news Monday morning, with pending home sales falling faster than expected in January.

Consumer confidence has been on the rise over the past couple of months, but that boost in confidence did not carry over to pending home sales, which were down 2.8% during the month of January.

Continue reading Pending Home Sales Down in January

Pending Home Sales Down in January originally appeared on BloggingStocks on Mon, 28 Feb 2011 12:00:00 EST. Please see our terms for use of feeds.

For investors, the emerging markets have been a great place to find profits. No doubt, there are certainly risks, such as seen recently with the market turmoil in Egypt, but a diversified portfolio should solve these problems. Of course, it also helps to have lots of exposure to markets like China and Brazil.

According to Societe Generale, emerging markets may pale in comparison to the growth in commodities. Interestingly enough, it is rising commodities prices that is putting inflationary pressure on these countries. In other words, it is getting tougher for companies to pass along higher raw materials costs. As a result, there has been a rash of interest rate increases.

Continue reading Commodities Even Better Than Emerging Markets Stocks?

Commodities Even Better Than Emerging Markets Stocks? originally appeared on BloggingStocks on Wed, 09 Feb 2011 12:10:00 EST. Please see our terms for use of feeds.

With earnings season in full swing, the FOMC meeting on interest rates, the GDP estimate, and housing numbers due out, the coming week is shaping up to be a busy one. So here's a peek at what's on the economic calendar.

Monday

Quarterly reports from American Express (AXP) and McDonald's (MCD) will highlight Monday. Amgen (AMGN), CSX (CSX), Halliburton (HAL) and Texas Instruments (TXN) are also expected to report strong earnings results.

Continue reading Week in Preview: GDP, FOMC Meeting, Housing Data and Lots of Earnings

Week in Preview: GDP, FOMC Meeting, Housing Data and Lots of Earnings originally appeared on BloggingStocks on Sun, 23 Jan 2011 12:30:00 EST. Please see our terms for use of feeds.

Has the U.S. Federal Reserve's tone regarding its stance toward its asset purchase program(quantitative easing part 2, or QE2), changed?

From the recent comments of Federal Open Market Committee members, it's tough to detect a shift.

For investors, the Fed's QE2 tone is hardly insignificant. A Fed signal that an unwinding of asset purchases is likely before June would affect U.S GDP growth expectations, and, by extension, corporate revenue expectations of many firms for the second half of 2011.

Continue reading Fed's Recent Tone on QE2: Does It Change the Investment Climate?

Fed's Recent Tone on QE2: Does It Change the Investment Climate? originally appeared on BloggingStocks on Wed, 12 Jan 2011 15:30:00 EST. Please see our terms for use of feeds.

The Federal Reserve has embarked on a controversial new program of buying $600 billion of U.S. Treasuries to keep interest rates low and spur the economy.

There is some disagreement among some members of the Fed concerning the risks of this new program. Some fear that the economy is growing too rapidly, fueling unwanted levels of inflation, as reported by CNNMoney.

Continue reading Fed Members Differ on Economic Outlook

Fed Members Differ on Economic Outlook originally appeared on BloggingStocks on Wed, 05 Jan 2011 12:00:00 EST. Please see our terms for use of feeds.

Some positive signs are blowin' in the wind. Maybe they're enough to underpin a real recovery. Maybe not. But they are definitely positive, and together, may be the foundation of a stock rally with some strength. Here are some of them.

Dividends: General Electric (GE), Weyerhaeuser (WY) and many other companies are raising theirs. GE's quarterly dividend went from 10 cents a share early this year to 12 cents to 14 cents. If you own it by December 27, you'll get it on January 25. GE is almost a surrogate for the economy as a whole since it has so many divisions, offering many products and services. When GE raises its dividend it means the board and management see better times ahead. Companies hate to raise or initiate dividends only to rescind them a few months or even a year later. They know some investors buy the stock for income, and if that shrinks, those investors sell, push the price down and move to another stock. Watch for more companies to raise their payouts (especially banks). It's a sure sign they see better earnings ahead.

Continue reading Comfort Zone Investing: Better News Is Blowin' in the Wind

Comfort Zone Investing: Better News Is Blowin' in the Wind originally appeared on BloggingStocks on Sat, 18 Dec 2010 10:30:00 EST. Please see our terms for use of feeds.

Continue reading Fed Holds Rates Steady, Surprises No One

Fed Holds Rates Steady, Surprises No One originally appeared on BloggingStocks on Tue, 14 Dec 2010 17:20:00 EST. Please see our terms for use of feeds.

Nobody knows what the future holds. But there are a few things shaping up that suggest certain things will most likely happen. Here are some of the major ones.

Interest Rates: Low at the beginning of the year, then headed higher for a long time. If you have an adjustable rate mortgage and you're still paying it, it's the perfect time to get it refinanced, if you can qualify. Interest rates are definitely going up; it's just a matter of when. As long as the Fed is pumping money in (QE2 is targeted with $800 billion .... with the possibility of more behind it), rates will stay low, unless investors think inflation will get way out of hand. Then rates will go higher no matter what the Fed does as investors sell longer term bonds to beat the coming inflation. Initially, rising interest rates will be bullish as they are a precursor to a healthy economy. But that bull will morph and become a bear when rates start jumping as the Fed tries to get ahead of inflation. Tricky business. Investors will do well to have floating rate assets and fixed rate liabilities.

Continue reading Comfort Zone Investing: What Lies Ahead For 2011 ... Maybe

Comfort Zone Investing: What Lies Ahead For 2011 ... Maybe originally appeared on BloggingStocks on Sat, 11 Dec 2010 10:30:00 EST. Please see our terms for use of feeds.

A frequent question voiced in dinner party circles in this neck of the woods (the metropolitan New York City area) is, 'Is now a good time to consider buying or investing in a home?'

Well, the latest S&P Case Shiller home price index suggests that home prices are likely to remaining sluggish -- selected, niche market gains, with flattish prices in most other markets -- through at least mid-2011. Hence, from a home price standpoint, the bias in tipped toward waiting a quarter or two, if you do not have to purchase a home.

Continue reading Is Now a Good Time to Invest in a Home?

Is Now a Good Time to Invest in a Home? originally appeared on BloggingStocks on Wed, 08 Dec 2010 17:00:00 EST. Please see our terms for use of feeds.

"Home Prices Are About to Bottom" was the headline for the Barron's cover story the week of July 14, 2008. The story explained that the housing market should level off in many areas of the country by the end of the year.

I have made some equally unfortunate prognostications in my tenure at BloggingStocks, so my purpose is not to poke fun at Barron's but to point out that here we are, over two years later, and it is still debatable whether the housing market has bottomed out.

Continue reading Chasing Value: "Home Prices Are About to Bottom"

Chasing Value: "Home Prices Are About to Bottom" originally appeared on BloggingStocks on Mon, 15 Nov 2010 09:00:00 EST. Please see our terms for use of feeds.

Continue reading Mortgage Rates Hit All-Time Low

Mortgage Rates Hit All-Time Low originally appeared on BloggingStocks on Thu, 11 Nov 2010 17:30:00 EST. Please see our terms for use of feeds.

The Federal Reserve Open Market Committee (FOMC) issued its statement indicating again that interest rates will remain low for an extended period of time and that proceeds of Treasury securities will continue to be re-invested into additional Treasury securities.

There will also be additional quantitative easing. This will take the form of the purchase of an additional "$600 billion of longer-term Treasury securities by the end of the second quarter of 2011, a pace of about $75 billion per month," according to the Fed's statement. This was well within the $500 billion to $1 trillion range expected by many economists and strategists. Thus, the current program appears to be largely discounted by the market.

Continue reading The Fed Decision: This is Not the End of Quantitative Easing!

The Fed Decision: This is Not the End of Quantitative Easing! originally appeared on BloggingStocks on Thu, 04 Nov 2010 09:30:00 EST. Please see our terms for use of feeds.

The world of international finance is a complex web. The U.S. is still the powerhouse when it comes to gross domestic product. Yet, while perched on top of the heap, the U.S. faces major problems with high-level debt and unemployment.

The U.S. Federal Reserve is faced with having to issue massive amounts of debt just to keep pace with the growing deficits. Now the Fed is planning another round of stimulus by buying more treasuries, dubbed QE2.

Continue reading Why Would Any Country Buy U.S. Treasuries?

Why Would Any Country Buy U.S. Treasuries? originally appeared on BloggingStocks on Sun, 03 Oct 2010 11:40:00 EST. Please see our terms for use of feeds.

Continue reading Is the Fed's 'QE2' About to Leave the Port?

Is the Fed's 'QE2' About to Leave the Port? originally appeared on BloggingStocks on Wed, 22 Sep 2010 16:00:00 EST. Please see our terms for use of feeds.

The 2001 Bush income tax cut is one of those issues whose fate has been sealed by objective economic conditions.

Simply, if the U.S. economy had registered robust growth during the final two years of the Bush administration, and no other negative economic events occurred, the tax cut, which will increase the deficit by $336 billion this fiscal year, $295 billion in fiscal 2011, and by more than $320 billion per year through fiscal 2019, perhaps would have had a chance of being extended.

Continue reading The 2001 Bush Income Tax Cut: A Major Policy Mistake

The 2001 Bush Income Tax Cut: A Major Policy Mistake originally appeared on BloggingStocks on Thu, 09 Sep 2010 18:00:00 EST. Please see our terms for use of feeds.

How much do you owe on your credit card? If you owe $4,951 your debit balance is average. This is down from 13% from $5,719, according to Trans Union and The Associated Press.

The credit reporting agency said that this was the first time since 2002 that balances fell below $5,000. Late payments fell to less than 1%, down from 1.17% last year.

Continue reading Credit Card Debt Continues to Fall

Credit Card Debt Continues to Fall originally appeared on BloggingStocks on Thu, 09 Sep 2010 17:00:00 EST. Please see our terms for use of feeds.