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 Chasing Value: Apple's Holding $48 Billion -- For What?

Chasing Value: Apple's Holding $48 Billion -- For What? originally appeared on BloggingStocks on Mon, 09 Aug 2010 15:30:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: Corporate America Hoarding $1.6 Trillion

Chasing Value: Corporate America Hoarding $1.6 Trillion originally appeared on BloggingStocks on Mon, 09 Aug 2010 14:00:00 EST. Please see our terms for use of feeds.

Continue reading Ray of Light: Corporate Cash Surges to $1.19 Trillion

Ray of Light: Corporate Cash Surges to $1.19 Trillion originally appeared on BloggingStocks on Thu, 11 Feb 2010 16:30:00 EST. Please see our terms for use of feeds.

Why are Americans hoarding $3.5 trillion in cash? An interesting question. Let's dig deeper and see if we can find out why.

Here are some interesting facts about the $3.5 trillion:

• After reducing money market accounts by 11% this year, investors hold cash equal to 73% of S&P 500 Index. At its peak in 2007, the buying power was at 62%.
• Estimates are for GDP to increase sixfold to 2.9% in the third quarter.
• In 2007 and 2008, investors placed $1.45 trillion in money market accounts. As of the week ending January 14, that number reached a record $3.92 trillion.
• Investors have added $15.8 billion to domestic equity funds since March.

Continue reading Why are Americans hoarding $3.5 trillion in cash?

Why are Americans hoarding $3.5 trillion in cash? originally appeared on BloggingStocks on Thu, 01 Oct 2009 12:30:00 EST. Please see our terms for use of feeds.

At the end of the regular trading session Tuesday, Cisco Systems (NYSE: CSCO) had a capitalization of $97.36 billion at a stock price of $16.68. The latest company report of February 4, 2009 stated that total cash, cash equivalents and Investments was $29.5 billion.

What can you say but WOW! -- CSCO has 31% cash!

There are other cash rich companies that are holding up well through the economic firestorm but I do not know of any others with this much cash. As consumers and large companies have been trimming their spending, Cisco has had difficulty growing, but I think this is a buying opportunity.

Continue reading Chasing Value: Cisco Systems -- rich, good looking & smart

Chasing Value: Cisco Systems -- rich, good looking & smart originally appeared on BloggingStocks on Wed, 25 Mar 2009 15:20:00 EST. Please see our terms for use of feeds.

Continue reading Does General Electric have an adequate fire break?

Does General Electric have an adequate fire break? originally appeared on BloggingStocks on Thu, 05 Mar 2009 10:50:00 EST. Please see our terms for use of feeds.

According to reports, In order to get the money people have to go to the 'Bailout Booth' in the heart of Manhattan's Times Square; to a small cubicle, where, depending on your story you can get a cash stipend to help out with a present financial dilemma.

Continue reading 'Bailout Bill' giving away money in Times Square -- big heart and wads of cash

'Bailout Bill' giving away money in Times Square -- big heart and wads of cash originally appeared on BloggingStocks on Wed, 04 Feb 2009 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Cheapest stock prices since 1995 point to either value or balky investors

Cheapest stock prices since 1995 point to either value or balky investors originally appeared on BloggingStocks on Mon, 08 Dec 2008 10:57:00 EST. Please see our terms for use of feeds.

Continue reading Where you should put your money now: 10 options, starting with the safest

Where you should put your money now: 10 options, starting with the safest originally appeared on BloggingStocks on Tue, 14 Oct 2008 08:00:00 EST. Please see our terms for use of feeds.

"Cash is king," counsels market sector expert Jim Farrish who has chosen "cash" as his latest "sector spotlight". Here is his latest on the need for "patience" from his SectorExchange service.

The sector expert explains, "The market volatility and downside momentum has been king for 2008. Outside of short term trading and/or being short the markets the best place to have been invested is cash.

"My question is why is it so hard for investors to hold cash in their portfolios? Why do so many investment advisors not increase cash positions when market trends shift? Why do professionally managed mutual funds not increase their cash holdings?

"It goes against the psychological grain of investing. It is human nature to believe we may miss out on something. The emotions of investing are in full swing when a prolonged downtrend begins. These emotions dictate how we think and how we act during this period.

Continue reading Sector expert: 'Don't forget cash'

Sector expert: 'Don't forget cash' originally appeared on BloggingStocks on Wed, 19 Mar 2008 12:50:00 EST. Please see our terms for use of feeds.

"Derivatives - the 'global Vesuvius of debts and bets' that we have been warning about since 2006 is beginning to erupt," says Martin Weiss.

The editor of The Safe Money Report explains, "The time is now to build cash and the best place to put it is in United States Treasury bills or equivalent." Here, he looks at the benefits of Treasuries and the various ways that investors can add them to their portfolios.

"We now have overwhelming evidence of a severe recession. And we have a solid confirmation in the stock market itself. But we also forecast that the Fed would fight back, and do so aggressively, fomenting an
inflationary recession.

"They're pumping in massive amounts of money, trying to calm markets and seeking to avert a recession. But it's too little, too late for the economy. And it's too much, too soon for the already-shaky dollar. *Result: Gold has surged along with other commodities.

"And consumer price inflation, long a side-show on the American scene, is now surging back. Our urgent appeal: If youhaven't done so already based on our earlier issues, the time is now to shift from complacency to protective action ... from bull-market plays to income opportunities ... from risk to safety.

Continue reading Safe Money seeks safety in Treasuries

Safe Money seeks safety in Treasuries originally appeared on BloggingStocks on Mon, 10 Mar 2008 12:36:00 EST. Please see our terms for use of feeds.

Continue reading The snowball rolls from New Jersey to California

The snowball rolls from New Jersey to California originally appeared on BloggingStocks on Thu, 28 Feb 2008 16:50:00 EST. Please see our terms for use of feeds.

This article is part of a 20 article special report on "Metals, miners and money".

The case for gold and/or other commodities in large part rests on a forecast for higher inflation. With a contrary view, Bob Prechter -- well known as the leading practitioner of Elliott Wave theory -- offers his assessment for deflation. As such, his top investment idea within this scenario is not gold or oil -- but cash.

The editor of The Elliott Wave Theorist explains, "When the bull market in inflation is over, an unprecedented number of IOUs, stacked in an inverted pyramid, will collapse in value in a deflationary rush, and prices from stocks to commodities to goods and services will fall along with them.

"In 1998, we called for a huge bull market in oil that would carry to new all-time highs. That run is now in its final stages. Market psychology fits a major top, because short-term measures of optimism match all-time extremes.

"Investors everywhere have come to the conclusion that the world is running out of oil, despite the fact that the real price of oil (the oil to gold ratio) is lower than it was seven years ago.

"Today, oil is near the end of wave 5. But this is only part of the picture. The rise from 1998 is itself a fifth wave, so the entire advance from 1933 is also ending.

Continue reading Top resource ideas: Elliott Wave sees cash as best asset

Top resource ideas: Elliott Wave sees cash as best asset originally appeared on BloggingStocks on Sat, 10 Nov 2007 18:10:00 EST. Please see our terms for use of feeds.

According to the Investment Company Institute, the percentage of cash held by equity mutual funds hit a record 3.7% in March, which is beneath the previous low-water mark of 4.0% seen at the time of the March 2000 stock market peak.

Historically, analysts have viewed the equity fund "liquidity ratio" as one of several long-term indicators that can help gauge investor sentiment.

When portfolio cash is high relative to historic norms, it indicates that investors are overly cautious and that the weight of money on the sidelines will eventually drive share prices higher. Low levels of liquidity, in contrast, suggest that there is not enough firepower to keep the bullish momentum going for very long.

Continue reading Sentiment warning: Where's the cash?

Sentiment warning: Where's the cash? originally appeared on BloggingStocks on Mon, 07 May 2007 15:45:00 EST. Please see our terms for use of feeds.

There's nothing like year-end tips to spoil one's holiday spirit. Just when you can't stand to spend another cent on a present for friend or family member, you remember all those folks you still owe a gratuity.

For busy families that have a lot of service providers to thank (house cleaners, babysitters, hairdressers, etc.), the tipping tally can easily total in the thousands of dollars. (Read SmartMoney's take on what is reasonable and expected for year-end gratuities or take AOL's tipping quiz to see if you know it all already.)

As much as you might fantasize, you can't skip the tips. If you want to keep your tipping budget to a reasonable level, you don't have to play scrooge this season. Here's some ideas for how to thank the folks who help you out year-round without busting your budget:

Tip generously without blowing your budget originally appeared on BloggingStocks on Thu, 07 Dec 2006 05:00:00 EST. Please see our terms for use of feeds.

• Why do investors always have to insist on share buy-backs and special dividends?
• The age-old question: Which is better? Buy-backs or dividends?
• Microsoft will always face these problems due to its immense cash-flow generation
• I'm more interested in where Microsoft is investing its cash. There may be something I can learn as an investor?

Continue reading Microsoft's cash distribution and what we can learn from it

Microsoft's cash distribution and what we can learn from it originally appeared on BloggingStocks on Mon, 30 Oct 2006 10:47:00 EST. Please see our terms for use of feeds.

The most valuable thing on earth after life itself is TRUST.

Why is President Bush watching his approval rating collapse month after month -- Do you trust him? What has he done to build trust? Why are we so comfortable living with England having nuclear weapons and are panic-stricken by Iran's having them -- do you trust them? What have they done to build trust?

What was the cause of Adam & Eve's being banished from the garden of Eden? A breach of trust. Right from the start, up until this very moment it is trust that creates brotherhood between peoples and also builds strong brands. Trust that allows a temporary leap of faith until the facts are known and it is trust that positions the market place for "just-in-time" manufacturing and without which the process would come to a swift and grinding halt.

Johnson & Johnson did all the right things way back when they had the now-historic Tylenol tampering scare to contend with and they wisely focused their attention on maintaining trust at all costs. Enron did all the wrong things. Arthur Anderson drowned in a sea of mistrust flowing from their own questionable ethics and we witnessed a very valuable enterprise rapidly collapse. In my architecture practice I have lectured on this subject constantly to everyone who would listen; staff, clients, consultants, public officials etc. Anything that builds trust is a good thing, anything that reduces trust is a bad thing!

Continue reading More valuable than gold, oil, land, stocks, & Treasury notes

More valuable than gold, oil, land, stocks, & Treasury notes originally appeared on BloggingStocks on Sun, 11 Jun 2006 11:01:00 EST. Please see our terms for use of feeds.

8:02 a.m. As I wrote yesterday, Strategic Decision #1: Steve Ballmer's decision to speak today, "directly to investors." He'll be answering questions from the little guy and the question on everyone's lips: will he be defensive?

8:04 a.m. Ballmer wants to speak about the business from both the perspective of an investor and a manager, and he promises not to yell at the audience. Heh. He starts out by saying that the next 10 years has as much potential for world-changing strides in computers and software as the last 10 years, and he's excited to be part of a company which "invests, profits from, and takes advantage of the incredible opportunity there is to innovate."

8:06 a.m. The thing that will change in the next 10 years? Digital writing. "Pencil and paper will be replaced by superior technology that is digital. And somebody will have the ability to benefit from that technology." He already sounds both (a) angry and (b) frantic. Maybe it's just his thang.

Continue reading Liveblogging Microsoft's Steve Ballmer at Strategic Decisions Conference

Liveblogging Microsoft's Steve Ballmer at Strategic Decisions Conference originally appeared on BloggingStocks on Wed, 31 May 2006 07:59:00 EST. Please see our terms for use of feeds.

We got a comment in from a reader, Edward Schmidt, who suggested Microsoft should use more of its cash to cut back on the amount of shares outstanding, "and I mean by a substantial amount; like a billion shares," he writes.

That would raise the stock's earnings per share, lower it's p-e ratio and cut back on the amount it pays out in dividends. Oh yeah, it should also boost the stock price.  

Increasing buy backs seems like a good idea to me. Although this Forbes story notes that Microsoft announced a $30 billion buyback program in 2004 and that certainly hasn't done much to boost the stock.

But Microsoft has a $35 billion cash pile. Schmidt thinks that cash would be better spent on buying back shares than acquiring small companies. But with the size of its cash pile, Microsoft could certainly do both.

Is it time for a big buyback, Microsoft? originally appeared on BloggingStocks on Fri, 26 May 2006 14:07:00 EST. Please see our terms for use of feeds.