On Friday, May 18th, Facebook began its life as one of the most anticipated and celebrated initial public offerings (IPO) in history. Due to unprecedented demand and limited shares offered in this initial offering, the stock was priced at the high end of inflated expectations. There is much to like in the Facebook story. From … Continued
Last week, JPM Chase reported a $2 billion loss on a bad bet it made from its proprietary trading desk. Moreover, the bank conceded that the company was still unwinding the trade and that this loss could double over the next several quarters. In addition, the company may be fined and incur other legal expenses related to … Continued
As a father of three high school and/or college-aged children, I am much attuned to the high cost of a college education and I have some deep rooted opinions regarding its value. As a starting point, I think the experience can be extraordinarily rewarding for those who take full advantage of the complete experience. This … Continued
Last week, former Detroit Mayor Kwame Kilpatrick was charged by the US Securities and Exchange Commission (SEC) in an influence-peddling scheme involving the Detroit Police and Fire pension fund and one of their investment advisers. The SEC alleges, Kilpatrick solicited and received $125,000 worth of undisclosed perks paid for by the investment adviser. While this … Continued
Many investment professionals (myself included) consider core investments to be cash equivalents (US Treasury Bills or money market funds), bonds and common stocks. In simple terms, the combination of these asset classes will impact the daily or monthly variation in the value of the investment portfolio. On occasion, a client, or a financial services marketer … Continued
Edvar Munch’s The Scream achieved the highest price ever for a painting at auction this week when the bidding closed at nearly $120 million. It is one of the most famous paintings in the world, featured on posters hanging in college dorm rooms around the world (I had one in mine) and featured in movies such as … Continued
This week, Ford Motor Co. announced they will be offering a voluntary lump-sum defined benefit pension plan payment to about 90,000 US salaried retirees and former employees. Ford did not provide detail on the payout amounts or formula. The plan will be rolled out in stages starting July 1 and they have already begun notifying … Continued
The tales of murder, conspiracy, and corruption that are leaking out from China regarding the Bo Xilai scandal have been remarkable to follow. Truth can often be much stranger than fiction and the scandal surrounding this ousted politician has managed to rock the Chinese government. Prior to his ousting, Bo was seen as somewhat of a populist … Continued
On Monday, following Sunday’s first-round of presidential elections in France, the CAC 40 index (which is largely representative of the French equity markets) fell nearly 3%. The presidential incumbent, Nicolas Sarkozy, who has been on board with Germany’s austerity plans to tackle the European financial crisis, came in second place in the first-round vote to … Continued
I have a confession. I was once a democrat. The first presidential election I was eligible to vote in, I voted for Jimmy Carter. I never told anyone this before because frankly, I was embarrassed. But, today, 30 years later, I have learned much, and I have many intelligent, successful friends who are democrats and I … Continued
The emotional desire to “get even and get out” does not translate into a wise investment strategy. Rather, it is a recipe for disaster over the long term. The equity markets continued their march upwards throughout the first quarter of 2012 with many indices and individual stocks approaching their previous all-time highs. Since then, the … Continued
President Obama announced today that his administration is interested in “curbing speculation” in the oil markets. Is this a laudable goal? We have to remember how speculation fits into the overall transactional marketplace. Many businesses rely on speculators speculating to reduce their risk. For example, a farmer has to commit to purchasing seeds, fertilizer, equipment … Continued
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