BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[How do hedge funds differ from mutual funds?]]>http://www.bloggingstocks.com/2009/06/12/how-do-hedge-funds-differ-from-mutual-funds/http://www.bloggingstocks.com/2009/06/12/how-do-hedge-funds-differ-from-mutual-funds/http://www.bloggingstocks.com/2009/06/12/how-do-hedge-funds-differ-from-mutual-funds/#commentsFiled under: , , , , , , ,

Has your broker repeatedly sold you on the "safe" investment vehicle, the mutual fund? Investing in a wide variety of prominent companies, with solid, long-term track records, mutual funds have been an easy-to-understand and popular investment choice for decades.

Mutual funds are hugely diversified, holding large stakes in recognizable names such as Google (NASDAQ: GOOG), Citigroup (NYSE: C), Walmart (NYSE: WMT), Starbucks (NASDAQ: SBUX), General Electric (NYSE: GE), Bank of America (NYSE: BAC), and Fannie Mae (NYSE: FNM).

Continue reading How do hedge funds differ from mutual funds?

How do hedge funds differ from mutual funds? originally appeared on BloggingStocks on Fri, 12 Jun 2009 13:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>alternative investmentsEric Jacksonfeaturedhedge fundsHedgeFundBlogger.cominvestment fundsmutual fundsRichard Wilsonshort sellingFri, 12 Jun 2009 13:00:00 EST<![CDATA[Is the Madoff scandal the low point in U.S.'s decade of descent?]]>http://www.bloggingstocks.com/2009/01/10/is-the-madoff-scandal-the-low-point-in-u-s-s-decade-of-descent/http://www.bloggingstocks.com/2009/01/10/is-the-madoff-scandal-the-low-point-in-u-s-s-decade-of-descent/http://www.bloggingstocks.com/2009/01/10/is-the-madoff-scandal-the-low-point-in-u-s-s-decade-of-descent/#commentsFiled under: , ,

In the U.S.'s decade of descent, its near-decade of policy errors, investors could no-doubt cite their nomination for financial or economic low point.

Enron, the Bear Stearns hedge fund defaults, the mismanagement of Lehman Brothers and AIG (NYSE: AIG), the to-date secretiveness of the TARP money allocation, Citigroup's (NYSE: C) missteps that now expose the U.S. government to potentially more than $200 billion in liabilities, or the myriad bad decisions by mortgage borrowers and lenders that sent the housing market into recession would, undoubtedly, be mentioned as candidates for the biggest scandal.

A few 'candid and frank' discussions in CT

Still, during a year-end, holiday trip to relatives in Connecticut, I received "a full and complete report," as we say in the news/publishing business, concerning what many people -- at least what many of my relatives -- feel is the biggest scandal or mistake. Now, my extended family is by no means a scientific survey, but it's a pretty good cross-section of the American public, comprised of high-powered professionals and typical employees; those who've done very well financially, and those who haven't done as well, with all age groups represented.

And what was everyone really peeved about? The alleged Ponzi scheme and rip-off masterminded/perpetrated by Bernard Madoff.



Continue reading Is the Madoff scandal the low point in U.S.'s decade of descent?

Is the Madoff scandal the low point in U.S.'s decade of descent? originally appeared on BloggingStocks on Sat, 10 Jan 2009 12:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bernard Madoffinvestment fundsMadoffMadoff Investment SecuritiesPonziPonzi schemeSat, 10 Jan 2009 12:00:00 EST<![CDATA[Did leverage play a role in oil's recent bubble?]]>http://www.bloggingstocks.com/2008/11/10/did-leverage-play-a-role-in-oil-s-recent-bubble/http://www.bloggingstocks.com/2008/11/10/did-leverage-play-a-role-in-oil-s-recent-bubble/http://www.bloggingstocks.com/2008/11/10/did-leverage-play-a-role-in-oil-s-recent-bubble/#commentsFiled under: ,

It's a pattern that's been all too familiar in the oil market these past few months: the price of oil moves slightly higher, but then can't sustain its increase and the rally fails, usually with oil closing lower at the end of the day.

What's causing it? Energy traders and economists will tell you that the price decline is being driven by slowing oil demand growth in emerging markets, combined with real, year-over-year demand reduction in the world's biggest market, the United States.

Investors exit oil

But that's not the whole story behind oil's stunning drop from $147 to the $60-per-barrel-range, so says Energy Trader Jim Dietz. Dietz who argues that the global reduction in the availability of leverage -- money borrowed for use in trading -- has taken a considerable amount of the buying pressure out of oil, as well as other commodities.

"We clearly are not seeing as many hedge funds and investment funds establishing positions in oil, and the ones who are in the market are establishing smaller positions," Dietz said. "As a result we rarely see any more powerful moves to the upside with powerful momentum characteristics. I'm not saying hedge fund buying is the only reason oil hit $147 this summer, but they certainly played an important role."

Continue reading Did leverage play a role in oil's recent bubble?

Did leverage play a role in oil's recent bubble? originally appeared on BloggingStocks on Mon, 10 Nov 2008 14:17:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>emerging marketsgasoline priceshedge fundsinvestment fundsleveragemarginoil pricesoil shockMon, 10 Nov 2008 14:17:00 EST<![CDATA[Dollar, yen surge in flight-to-safety amid global recession concerns]]>http://www.bloggingstocks.com/2008/10/24/dollar-yen-surge-in-flight-to-safety-amid-global-recession-conc/http://www.bloggingstocks.com/2008/10/24/dollar-yen-surge-in-flight-to-safety-amid-global-recession-conc/http://www.bloggingstocks.com/2008/10/24/dollar-yen-surge-in-flight-to-safety-amid-global-recession-conc/#commentsFiled under: , ,

The dollar and yen surged Friday -- with the yen the clear winner head-to-head versus the dollar -- as traders and institutions added both currencies in a flight-to-safety on concern that all of the world's major economies will fall into a recession at the same time.

The dollar surged 3 cents versus the euro to $1.2642 and 6 cents versus the British pound to $1.5606.

The yen strengthened 4.7 yen to 92.64 versus the dollar and about 10 yen to 144.73 yen versus the British pound.

Institutions raise cash in dollars, yen

Currency Trader Andrew Resnick told BloggingStocks Friday, this morning's flight-to-safety is not solely due to economic fundamentals, which suggest slowing growth in the world's major economies, but also hedge fund / investment fund de-leveraging and closing out of losing stock positions.

"We're seeing many things happen at once, and that's producing these enormous moves. First, the carry trade [where traders borrow yen and invest it elsewhere] is unwinding. Leverage for investing purposes is declining as a trading strategy," Resnick said. "Second, major players are raising cash to cover redemptions, which is also causing stock markets globally to plunge."

"Third, we're seeing a re-pricing of risk to the higher, which is forcing some funds to raise even more cash, boosting the dollar," Resnick said. "Some of the moves are cash-necessary moves, but many are clearly panic-based, with traders exiting positions that have little chance of succeeding if the global economy continues to slow."

Continue reading Dollar, yen surge in flight-to-safety amid global recession concerns

Dollar, yen surge in flight-to-safety amid global recession concerns originally appeared on BloggingStocks on Fri, 24 Oct 2008 12:10:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorBankingSectorbanksBritish poundcarry tradeCarryTradecurrenciesdollareuroflight to safetyforexhedge fundsinthenewsinvestment fundsleverageyenFri, 24 Oct 2008 12:10:00 EST<![CDATA[Slip sliding away: Oil falls to $68, with more declines likely]]>http://www.bloggingstocks.com/2008/10/22/slip-sliding-away-oil-falls-to-68-with-more-declines-seen-lik/http://www.bloggingstocks.com/2008/10/22/slip-sliding-away-oil-falls-to-68-with-more-declines-seen-lik/http://www.bloggingstocks.com/2008/10/22/slip-sliding-away-oil-falls-to-68-with-more-declines-seen-lik/#commentsFiled under: , , , , ,

What a difference a year makes.

A year ago, October 2007, oil vaulted above $85 per barrel on its way to the unheard-of (at that time) price of $100 per barrel. Oil would reach a high of $147.90 per barrel in July.

Along the way several research reports predicted a $175-$200 price for oil in the near future. The weak dollar played a role in the astronomical price rise of the world's most important commodity, as did speculative and momentum players (hedge funds, investment funds), but the real culprit was rising emerging market oil demand.

Another October Surprise (of sorts)

Fast-forward to this October: emerging markets are still growing, but every other factor is now bearish for oil, says energy trader Jim Dietz, and oil's price is in free fall, plunging another $3.99 to $67.55 per barrel Wednesday morning. The United States economy is in recession -- not officially, but nearly every key indicator is. The U.K. and E.U. economies are slowing. Moreover, the financial crisis threatens to slow the growth in global trade, if not lead to outright trade volume declines, implying further declines in projected oil demand. "It's a market that's pricing in substantially slower global economic growth, possibly a global recession," Dietz said. He added that he was currently short oil, with a monthly contract.

Moreover, those searching for an oil bottom may be hard pressed, Dietz said. "There's considerable technical support for oil in the $63-67 range and then again at $60, but these barriers have not provided much support in this market," he said. "That leads me to believe that the unwinding [closing] of hedge fund positions is a big factor in driving oil lower. They're getting out of crude, big time."

Continue reading Slip sliding away: Oil falls to $68, with more declines likely

Slip sliding away: Oil falls to $68, with more declines likely originally appeared on BloggingStocks on Wed, 22 Oct 2008 14:47:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>featuredgasoline priceshedge fundsinvestment fundsoil pricesoil shockOPECSaudi ArabiaWed, 22 Oct 2008 14:47:00 EST<![CDATA[NYT's Krugman: Speculators schmeculators - demand is pushing oil higher, not traders]]>http://www.bloggingstocks.com/2008/07/01/nyts-krugman-speculators-schmeculators-demand-is-pushing-oil/http://www.bloggingstocks.com/2008/07/01/nyts-krugman-speculators-schmeculators-demand-is-pushing-oil/http://www.bloggingstocks.com/2008/07/01/nyts-krugman-speculators-schmeculators-demand-is-pushing-oil/#commentsFiled under: , ,

One of the major economic debates on Main Street and in Washington concerns the influence of speculators during oil's record price rise. (Oil currently trades above $140 and is up 100% during the past year, and more than 400% since 2000).

More than one Congressional committee is investigating the role of speculators, who critics say have 'distorted' or artificially boosted oil's price -- driven it higher than a level the commodity would trade at if the price were based solely on supply and demand fundamentals.

New York Times columnist Paul Krugman, while not denying speculators have contributed to oil's record rise, nevertheless offers perhaps the strongest evidence regarding how a commodity's price can rise a great deal, without the influence of speculators. His evidence: iron ore.

Continue reading NYT's Krugman: Speculators schmeculators - demand is pushing oil higher, not traders

NYT's Krugman: Speculators schmeculators - demand is pushing oil higher, not traders originally appeared on BloggingStocks on Tue, 01 Jul 2008 17:34:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>emerging marketsgasoline pricesglobalizationhedge fundsinvestment fundsiron oreiron ore pricesKrugmanoil pricesoil shockOPECPaul KrugmanspeculatorsTue, 01 Jul 2008 17:34:00 EST<![CDATA[The new investment fund asset class-of-choice: farms]]>http://www.bloggingstocks.com/2008/06/05/the-new-investment-fund-asset-class-of-choice-farms/http://www.bloggingstocks.com/2008/06/05/the-new-investment-fund-asset-class-of-choice-farms/http://www.bloggingstocks.com/2008/06/05/the-new-investment-fund-asset-class-of-choice-farms/#commentsFiled under: , ,

The economic boom in emerging markets has driven up both the value of commodities and the food production process itself.

Moreover, the long-term trends look good, with out-sized gains likely to stretch for more than five years, if current emerging market economic growth trends continue.

That suggests the sector is likely to continue to attract new investors, and huge investment funds - - not a conventional source of capital for farming, historically - - have already started making bolder and longer-term food-related investments, by buying farmland, fertilizer, grain elevators, and shipping equipment, The New York Times reported Thursday.

One example: the BlackRock fund group plans to invest hundreds of millions of dollars in agriculture, chiefly farmland, from sub-Saharan Africa to the English countryside, The Times reported.

Farms: the new asset class-of-choice

Economist Glen Langan told BloggingStocks Thursday the investment fund / managed fund money flow in farmland and food is the logical next step for agriculture, given the large gains in global food demand projected for the next 5-8 years.

"The equity markets have not fully come to grips with the enormity of his increased demand, but investment funds are beginning to comprehend it, and the money flow toward farms has begun," Langan said. "Think about this - - China and India combined could add about 3-5 million members to the world's middle class each year over the next decade. Those are consumers with money to spend, and they'll consume more food. And that total does not include expanding middle classes in South America, Eastern Europe, and the Middle East."

Continue reading The new investment fund asset class-of-choice: farms

The new investment fund asset class-of-choice: farms originally appeared on BloggingStocks on Thu, 05 Jun 2008 14:05:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>agricultureemerging marketsfarmsfoodfood pricesglobalizationhedge fundsinstitutional investorsinthenewsinvestment fundsThu, 05 Jun 2008 14:05:00 EST<![CDATA[Economics Roundtable: Oil bubble: yes; price fixing: no]]>http://www.bloggingstocks.com/2008/06/02/economics-roundtable-oil-bubble-yes-price-fixing-no/http://www.bloggingstocks.com/2008/06/02/economics-roundtable-oil-bubble-yes-price-fixing-no/http://www.bloggingstocks.com/2008/06/02/economics-roundtable-oil-bubble-yes-price-fixing-no/#commentsFiled under: , , ,

The "Totally Informal Economics Roundtable" (TIER) met this week. Readers of this space know that the esteemed Roundtable achieves a quorum whenever yours truly and my three astute economist friends from graduate school convene to discuss matters economic... or to celebrate the birthday of one our school-age children.

This week's the topic was oil's remarkable 4-year run to $135 per barrel.

The TIER agreed that, yes, speculators, traders, hedge funds, and other institutional investors had driven oil to a 'bubble' price or level -- but not due to any conspiracy or coordinated effort to push prices higher.

Rather, the TIER agreed that speculators bought oil futures and other oil instruments: because a) they believe the price of oil is headed higher, and/or b) they believe they'll benefit in some way from an oil-long position.

Continue reading Economics Roundtable: Oil bubble: yes; price fixing: no

Economics Roundtable: Oil bubble: yes; price fixing: no originally appeared on BloggingStocks on Mon, 02 Jun 2008 18:48:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>energy crisisgasoline priceshedge fundsHedgeFundsinvestment fundsoiloil futuresoil pricesoil shockMon, 02 Jun 2008 18:48:00 EST<![CDATA[Hedge funds reduced positions in oil futures as prices rose, probe started]]>http://www.bloggingstocks.com/2008/06/02/hedge-funds-reduced-positions-in-oil-futures-as-prices-rose-pro/http://www.bloggingstocks.com/2008/06/02/hedge-funds-reduced-positions-in-oil-futures-as-prices-rose-pro/http://www.bloggingstocks.com/2008/06/02/hedge-funds-reduced-positions-in-oil-futures-as-prices-rose-pro/#commentsFiled under: , ,

Hedge funds and speculators reduced positions in oil by 80% as prices rose to records and as U.S. regulators started investigating trading, Bloomberg News reported Monday, citing government data.

Net long positions decline to 25,867 contracts on the New York Mercantile Exchange in the week ended May 27, 2008 from a record 127,491 contracts on July 31, 2008 according to a U.S. Commodity Futures Trading Commission report.

Last week, the CFTC, under pressure from Congress, announced that it had expanded an investigation of oil's price rise and oil futures contracts. Oil has increased about 100% in the past 12 months, and about 480% since 2002. Oil rose $1.50 to $128.50 per barrel in mid-day Monday trading.

Continue reading Hedge funds reduced positions in oil futures as prices rose, probe started

Hedge funds reduced positions in oil futures as prices rose, probe started originally appeared on BloggingStocks on Mon, 02 Jun 2008 14:57:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CFTCCommodity Futures Trading Commissiongasoline priceshedge fundsinthenewsinvestment fundsNYMEXoiloil pricespension fundsU.S. CongressU.s.CongressMon, 02 Jun 2008 14:57:00 EST<![CDATA[Oil falls for third day to $112 on sluggish economic data, rising dollar]]>http://www.bloggingstocks.com/2008/05/01/oil-falls-for-third-day-to-112-on-sluggish-economic-data-risin/http://www.bloggingstocks.com/2008/05/01/oil-falls-for-third-day-to-112-on-sluggish-economic-data-risin/http://www.bloggingstocks.com/2008/05/01/oil-falls-for-third-day-to-112-on-sluggish-economic-data-risin/#commentsFiled under: , , ,

Oil fell for the third straight day Thursday and neared the psychologically-significant $110 level, as data confirming a sluggish U.S. economy and the rising dollar reduced investors' demand for oil as an alternative investment.

Oil, which had traded as low as $110.80, closed down 96 cents to $112.50 per barrel. Oil hit a record high of $119.90 per barrel on April 22, 2008.

The other major energy commodities also closed substantially lower Thursday. Heating oil closed down about 6 cents to $3.10 per gallon, unleaded gasoline closed down 5 cents to $2.85 per gallon, and natural gas closed down about 25 cents to $10.59 per million BTUs.

Continue reading Oil falls for third day to $112 on sluggish economic data, rising dollar

Oil falls for third day to $112 on sluggish economic data, rising dollar originally appeared on BloggingStocks on Thu, 01 May 2008 16:17:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Asiadollaremerging marketseurogasolinegasoline pricesGDPhedge fundsinvestment fundsoiloil pricesOPECU.S. economyThu, 01 May 2008 16:17:00 EST<![CDATA[Gasoline rises 5 cents to $3.32 despite consumer cutbacks]]>http://www.bloggingstocks.com/2008/04/07/gasoline-rises-5-cents-to-3-32-despite-consumer-cutbacks/http://www.bloggingstocks.com/2008/04/07/gasoline-rises-5-cents-to-3-32-despite-consumer-cutbacks/http://www.bloggingstocks.com/2008/04/07/gasoline-rises-5-cents-to-3-32-despite-consumer-cutbacks/#commentsFiled under: , , ,

U.S. regular unleaded gasoline prices rose another 5 cents in the past two weeks to $3.32 per gallon, according to a national survey which collects price information from 7,000 stations nationwide. The Lundberg Survey also put mid-grade and super unleaded at $3.44 and $3.55 per gallon, respectively.

Independent energy trader Jim Dietz told BloggingStocks Monday gasoline is being pushed higher largely by the price of oil, even in the face of flat-to-declining U.S. gasoline demand. U.S. consumers "are doing their part to take pressure of prices," but triple-digit-oil prices are providing little incentive for gasoline refiners and wholesales to lower prices. (The oil component accounts for about 50-55% of the cost of a gallon of gasoline.) Oil rose $2 to $108.23 per barrel in early trading Monday. Dietz added that he's presently flat, or has no open oil or gasoline positions.

Dietz said, typically, when gasoline demand flattens or drops wholesalers/distributors and retail stations lower prices slightly to spur increased sales. That has not occurred so far this spring, despite statistics indicating U.S. gasoline consumption has declined, on a year-over-year basis, for more than three straight weeks.

Another factor that may be helping to keep gasoline at stubbornly high levels in the face of sluggish demand? Hedge/investment funds buying gasoline futures in search of returns, Dietz said. Dietz said an increased number of hedge funds and investments are turning to commodities, and oil/gasoline in particular, as a way "to achieve decent returns, when stocks and other investments can't" due to the hurting U.S. economy.

Gasoline rises 5 cents to $3.32 despite consumer cutbacks originally appeared on BloggingStocks on Mon, 07 Apr 2008 11:11:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>featuredfuturesgasolinegasoline futuresgasoline priceshedge fundsinvestment fundsoiloil pricesMon, 07 Apr 2008 11:11:00 EST<![CDATA[Are hedge/investment funds 'artificially' boosting oil/gasoline prices?]]>http://www.bloggingstocks.com/2008/04/04/are-hedge-investment-funds-artificially-boosting-oil-gasoline/http://www.bloggingstocks.com/2008/04/04/are-hedge-investment-funds-artificially-boosting-oil-gasoline/http://www.bloggingstocks.com/2008/04/04/are-hedge-investment-funds-artificially-boosting-oil-gasoline/#commentsFiled under: , , ,

One of the most intriguing questions amid the stock market's recent slump and the three-year-plus bull run in commodities, especially oil, concerns whether or not investment funds and hedge funds have artificially boosted commodity prices.

One camp argues that hedge/investment funds now have the capacity to "distort" prices beyond what a sector's fundamentals suggest the price should be. Another camp argues that the valuation of "distort" is subjective, and in any case the market will quickly self-correct for the error, when the bubble or trough, ends.

When making arguments before Congress and other groups, the price distortion camp can point to two recent data points to make their case. First: the $23 per barrel rise in the price of oil to $111.80 from about $87 from mid-February 2008 to mid-March 2008. Second: the 14 cent jump in wholesale unleaded gasoline to $2.77 per gallon on April 2, 2008.

Inventory data

Concerning oil, there has been no fundamental change in global oil supply or demand in the past quarter. If anything, demand growth moderated in the period. Further, oil inventories in the world's largest consuming nation, the United States, rose during the period. Still, oil prices rocketed 26% during the period to record highs.











Continue reading Are hedge/investment funds 'artificially' boosting oil/gasoline prices?

Are hedge/investment funds 'artificially' boosting oil/gasoline prices? originally appeared on BloggingStocks on Fri, 04 Apr 2008 13:12:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>commoditiesfeaturedgasolinegasoline priceshedge fundsinthenewsinvestment fundsoiloil pricesRGE Monitorstock marketFri, 04 Apr 2008 13:12:00 EST<![CDATA[Global unwinding continues as banks demand more collateral from hedge funds]]>http://www.bloggingstocks.com/2008/03/11/global-unwinding-continues-as-banks-demand-more-collateral-from/http://www.bloggingstocks.com/2008/03/11/global-unwinding-continues-as-banks-demand-more-collateral-from/http://www.bloggingstocks.com/2008/03/11/global-unwinding-continues-as-banks-demand-more-collateral-from/#commentsFiled under: , , ,

Banks are demanding more capital from hedge funds to support outstanding loans resulting in the dissolution of some funds forced to liquidate assets, Bloomberg News reported Monday.

``If you have leverage, you're stuffed,'' Alex Allen, chief investment officer of London-based Eddington Capital Management Ltd., which has $195 million invested in hedge funds for clients, told Bloomberg News. Allen said the crisis is like a bank panic turned upside down with bankers, not depositors, concerned they won't get their money back. He added there are likely to be more collateral /margin-related liquidations of hedge funds in the weeks ahead.

The $2 trillion hedge fund industry is in the throes of its worst capital crunch since the Federal Reserve successfully encouraged the securities industry to provide $3.6 billion to bail-out Long Term Capital Management L.P. in 1998. Amplified by leverage and aided by innovative investment formulas, many hedge funds generated outstanding returns for much of this decade, often aided by high-performing asset-backed securities. However, as the housing market slowed and mortgage-backed securities began to fail, hedge funds started to experience the down side of their deployed leverage: banks and other counterparties who lent money for these investments had the right to and initiated requests that hedge funds put up more capital. Hedge funds that could not meet the capital requirement have been liquidated.

Continue reading Global unwinding continues as banks demand more collateral from hedge funds

Global unwinding continues as banks demand more collateral from hedge funds originally appeared on BloggingStocks on Tue, 11 Mar 2008 10:44:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>absolute returnasset backed securitiesbond marketcredit marketsdebtderivativesFedhedge fundshousinghousing sectorinthenewsinvestment fundsleverageLong Term Capital Mangement LPmortgage backed securitiesprivate equityU.S. Federal ReserveTue, 11 Mar 2008 10:44:00 EST<![CDATA[Oil surges over $107 as analysts raise price forecasts; $110 is next hurdle]]>http://www.bloggingstocks.com/2008/03/10/oil-surges-over-107-as-analysts-raise-price-forecasts-110-is/http://www.bloggingstocks.com/2008/03/10/oil-surges-over-107-as-analysts-raise-price-forecasts-110-is/http://www.bloggingstocks.com/2008/03/10/oil-surges-over-107-as-analysts-raise-price-forecasts-110-is/#commentsFiled under: , , ,

Crude oil jumped $1.85 in early trading Monday morning to touch a record $107 per barrel as investors continued to pour funds into oil futures, Bloomberg News reported Monday.

Oil traded at the record price before pulling back slightly to $106.31 by midday Monday. Heating oil gained 1 cent to $2.96 per gallon, unleaded gasoline was unchanged at $2.69 per gallon.

With U.S. stocks expected to underperform historical averages due to sluggish U.S. economic growth, and with global oil demand still strong, investors are increasing positions in oil, calculating that the world's most vital commodity will outperform other asset classes in 2008. Oil is up about 75% during the past 12 months, and has traded above $90 per barrel for most of 2008.

Further, the weak and falling U.S. dollar is also boosting oil prices. Because oil is priced in dollars, if the dollar falls, oil producers will try to increase the price of the product to maintain their purchasing power. A lower dollar also implies higher U.S. inflation, prompting some investors to buy oil as an inflation hedge, further boosting the commodity's price.

Continue reading Oil surges over $107 as analysts raise price forecasts; $110 is next hurdle

Oil surges over $107 as analysts raise price forecasts; $110 is next hurdle originally appeared on BloggingStocks on Mon, 10 Mar 2008 12:21:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>commoditiesdollarfeaturedgasolinegasoline pricesglobal economyglobal growthhedge fundsinflationinvestment fundsoiloil pricesU.S. economyMon, 10 Mar 2008 12:21:00 EST<![CDATA[Oil closes above $105 for first time on dollar's slide, Latin America tension]]>http://www.bloggingstocks.com/2008/03/06/oil-closes-above-105-for-first-time-on-dollars-slide-latin-am/http://www.bloggingstocks.com/2008/03/06/oil-closes-above-105-for-first-time-on-dollars-slide-latin-am/http://www.bloggingstocks.com/2008/03/06/oil-closes-above-105-for-first-time-on-dollars-slide-latin-am/#commentsFiled under: , , ,

Oil closed above $105 for the first time in the industrial, modern, or postmodern eras Thursday, after status-quo monetary decisions in Europe and political tension in Latin America sparked both new buying of the commodity as an inflation hedge and renewed concerns about supply.

Oil, which traded at a high of $105.95, closed Thursday up 95 cents to $105.47 per barrel, an all-time record-high close.

The other major energy commodities also closed higher. Heating oil gained 3 cents to $2.97 per gallon, unleaded gasoline added 1 cent to $2.65 per gallon and natural gas climbed 3 cents to $9.75 per million BTUs.

Continue reading Oil closes above $105 for first time on dollar's slide, Latin America tension

Oil closes above $105 for first time on dollar's slide, Latin America tension originally appeared on BloggingStocks on Thu, 06 Mar 2008 17:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>British poundColombiadollarEcuadoreurofeaturedgasolinegasoline pricesinflationinvestment fundsoiloil pricesOPECVenezuelaThu, 06 Mar 2008 17:40:00 EST<![CDATA[Oil closes at $102.59, a new record high]]>http://www.bloggingstocks.com/2008/02/28/oil-closes-at-102-59-a-new-record-high/http://www.bloggingstocks.com/2008/02/28/oil-closes-at-102-59-a-new-record-high/http://www.bloggingstocks.com/2008/02/28/oil-closes-at-102-59-a-new-record-high/#commentsFiled under: , , ,

Oil closed Thursday up $2.95 to $102.59 per barrel -- another record-high print close -- after a combination of geopolitical, production, and trading factors sent investors piling into crude oil futures as an investment/inflation hedge, Bloomberg News reported Thursday.

Earlier in the day oil hit an intra-session high of $102.70 -- within 10 cents of the all-time high, in inflation-adjusted terms, of $102.80 per barrel set in April 1980.

The other major energy commodities also rose. Heating oil surged about 6 cents to $2.83 per gallon, unleaded gasoline climbed about 2 cent to $2.49, and natural gas rocketed 39 cents to $9.45 per million BTUs.

Continue reading Oil closes at $102.59, a new record high

Oil closes at $102.59, a new record high originally appeared on BloggingStocks on Thu, 28 Feb 2008 16:35:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>emerging marketsgasolinegasoline priceshedge fundsinflationinventoriesinvestment fundsIraqnatural gasnatural gas pricesNigeriaoiloil pricesOPECTurkeyThu, 28 Feb 2008 16:35:00 EST<![CDATA[Oil idles at $100 after inventory rise exceeds estimate]]>http://www.bloggingstocks.com/2008/02/27/oil-idles-at-100-after-inventory-rise-exceeds-estimate/http://www.bloggingstocks.com/2008/02/27/oil-idles-at-100-after-inventory-rise-exceeds-estimate/http://www.bloggingstocks.com/2008/02/27/oil-idles-at-100-after-inventory-rise-exceeds-estimate/#commentsFiled under:

U.S. crude oil inventories increased 3.2 million barrels for the week ending February 22, 2008, the U.S. Energy Information Administration announced Wednesday (pdf). Economists surveyed by Bloomberg had expected a 2.6 million barrel increase.

Oil continued to trade at near-record levels on the news. Oil was down 33 cents to $100.25 per barrel Wednesday at mid-day, after trading above $102 earlier in the session. The other major energy commodities were mixed at mid-day. Heating oil gained about 1 cent to $2.81 per gallon, unleaded gasoline rose 1 cent to $2.53 per gallon, and natural gas declined fell about 10 cents to $9.11 per million BTUs.

Continue reading Oil idles at $100 after inventory rise exceeds estimate

Oil idles at $100 after inventory rise exceeds estimate originally appeared on BloggingStocks on Wed, 27 Feb 2008 13:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>gasolinegasoline pricesGDPheating oilheating oil priceshedge fundsinthenewsinvestment fundsoiloil inventoriesoil pricesOPECrefineriesU.S. Department of EnergyWed, 27 Feb 2008 13:00:00 EST<![CDATA[FC Stone enjoys weighing the risks of a given situation]]>http://www.bloggingstocks.com/2008/01/15/fc-stone-enjoys-weighing-the-risks-of-a-given-situation/http://www.bloggingstocks.com/2008/01/15/fc-stone-enjoys-weighing-the-risks-of-a-given-situation/http://www.bloggingstocks.com/2008/01/15/fc-stone-enjoys-weighing-the-risks-of-a-given-situation/#commentsFiled under: ,

One of the characteristics of this decade's bull market has been the emergence, use, and growth of derivatives, options and futures products, both for hedging and for pure investing purposes, and a company in this segment worth a review is FC Stone.

FCStone Group, Inc. (Nasdaq: FCSX) provides risk management consulting and transaction execution services to commercial commodity intermediaries, end-users and producers. An FCSX unit also offers grain merchandising services for grain buyers/sellers in the U.S. and overseas; the company also ships about 100 million bushels of grain per year.

Continue reading FC Stone enjoys weighing the risks of a given situation

FC Stone enjoys weighing the risks of a given situation originally appeared on BloggingStocks on Tue, 15 Jan 2008 19:34:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>commoditiesderivativesFC StoneFcStoneFCSXfutureshedge fundsinvestment fundsoptionsrisk managementwealth managementTue, 15 Jan 2008 19:34:00 EST<![CDATA[Bank of America closes enhanced money fund after losses]]>http://www.bloggingstocks.com/2007/12/10/bank-of-america-closes-enhanced-money-fund-after-losses/http://www.bloggingstocks.com/2007/12/10/bank-of-america-closes-enhanced-money-fund-after-losses/http://www.bloggingstocks.com/2007/12/10/bank-of-america-closes-enhanced-money-fund-after-losses/#commentsFiled under: , ,

Bank of America Corporation (NYSE: BAC) announced Monday it closed a $12 billion, enhanced money fund after major clients pulled-out amid losses on complex asset-back securities, including structured investment vehicles, Bloomberg News reported.

The Columbia Strategic Cash Portfolio was closed last week and is being "wound down," Bank of America spokesman Robert Stickler told Bloomberg News. Sticker said the fund's net asset value, which had been $33 billion two weeks ago, was 99.4 cents on the dollar as of Monday.

Continue reading Bank of America closes enhanced money fund after losses

Bank of America closes enhanced money fund after losses originally appeared on BloggingStocks on Mon, 10 Dec 2007 18:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>asset backed securitiesBACBank of Americabankingbanking sectorbond marketcredit marketsenhanced money fundshousinginvestment fundsmortgage backed securitiesSIVssubprimesubprime loansMon, 10 Dec 2007 18:28:00 EST