Earnings from blue chip companies are helping drive the Dow higher today. Indeed, the surprising earnings have been helping blue chip stocks, while the Nasdaq drops and the S&P 500 struggles. Of course, it is worth noting that the Dow Jones Industrial Average only includes 30 companies. If those companies are all reporting pretty decent earnings, it is bound to help matters.
This is happening even as unemployment continues to rise. But, with earnings in focus, it is little surprise that unemployment isn’t doing much to slow down the Dow. The fact that there are fewer works to be paid is …read more

As earnings season continues, questions about the economy naturally arise. So far, third quarter earnings have been quite encouraging. And today, the good news continued. JP Morgan reported spectacular third quarter earnings, and that is providing hope that the rest of the financial sector will follow suit. The news has prompted the U.S. stock market to head quite a bit higher, fueling hopes that the Dow will hit 10,000 sometime before the week ends.
But is all of this earnings goodness actually indicative of a better economy? The answer might be no. This is because part of the reason that profits …read more

Planning for your retirement is certainly very important, as you will need to make sure that you squirrel away enough money throughout your working years so that you can retire in luxury. However, reaching retirement age does not mean that you can stop being so vigilant about investing your money in the right places. Various economic factors can add up to make how you invest after you retire just as important as pre-retirement investment.
For example, rising inflation can have a significant impact on the value of your assets. Even a modest rise in inflation over the next twenty to thirty …read more

It’s never too early to get ready for retirement. I know that I won’t be “retiring” (how do you retire from writing?) for at least 20 years, but five years ago I opened a Roth IRA. My husband plans to work for 25 years (he should start working next year, after he finishes his Ph.D.), and we plan to take advantage of whatever employer-sponsored retirement plan is offered. We’re not putting in a whole ton of money in right now, but we are putting in some every month, and once we have a little more income, we’ll put in more, …read more

Many companies are starting to feel a little more optimistic today. And it’s little surprise. The stock market is rallying as reasonably good economic news filters in. First of all, Alcoa earnings offered a pleasant surprise for investors. Expected to report yet another quarter of losses, Alcoa instead turned out a good profit report. The materials company is expected to have benefited from the demand associated with Cash for Clunkers.
Other good news included better than expected retail sales data. Same store retail sales were stronger than expected in September, and that has provided some hope for the holiday season. While …read more

Initial public offerings (IPOs) are gaining popularity right now in the corporate world. And it isn’t much of a surprise. After all, things are starting to improve in the economy, and companies are gearing up to raise a little capital by selling stock to the public and to companies that are in a position to buy.
Of course, it is important to note that not all people have access to IPOs. For the most part, financial firms are most likely to be able to buy. Additionally, private equity firms are starting to offer their private holdings in order to raise some …read more

I’ve been sick this past week, and I really needed a laugh. So I thoroughly enjoyed seeing this ETrade commercial on ESPN. The commercial, of course, isn’t just about golf. It makes an important point about personal finances and retirement planning. You have to take charge. Or at least you have to know what is going on with your finances. It is vital that you understand how your finances are doing, and that you make an effort direct them with a plan.
In the case of a 401k, it is important that you check the investments in it to make sure …read more

Avoid making these major 401k mistakes that can ruin your retirement plan.

SO, last week, on Saturday, I offered a list of people who are underpaid, according to Len Penzo. Well, now he’s got a list of overpaid folks. And there are 10 of them. I found it an interesting list:

Government Civil Servants
Professional Athletes
TV, Movie and Music Stars
College Football Coaches
Public School Administrator
Hedge and Mutual Fund Managers
Voice Actors
Lawyers
High-End Real Estate Agents
Television Weather Forecasters

I thought this list quite interesting. He makes a point about government civil servants: They are often paid more than those in the private sector, and they get amazing pensions. For people who are supposed to be serving We the People, …read more

The financial markets are having a busy day.