The Sandy Effect: ‘Buy When There’s Mud in the Streets’ (CNBC.com)
Even if Hurricane Sandy wasn’t exactly what Baron Rothschild had in mind when he advised to buy when there is “blood in the streets,” the investment opportunities arising in the wake of this epic natural disaster certainly hammer home the theme of finding opportunity from crisis. While making money from another’s misfortune can be distasteful, when the profit scale is as enormous as it could be here, many investors find that a spoonful of sweet profits helps them to swallow. Just ask Frank Holmes, CEO/CIO of U.S. Global Investors, as he discusses “the positive multiplier effect” that comes into play when a country has to dig out from an event like Sandy. In this case, Holmes estimated the Hurricane Sandy-driven factor would be five, meaning damages up to $20 billion will generate economic spending and activity of about $100 billion. In the end, investors may be left with a philosophical question, when pulling in big winner after big winner, Is it wrong to thank a hurricane?
‘Compression Front’ to Slam into Market Today (Yahoo.Finance.com)
After a two-day absence of trading, investors returning to the market today already expect a healthy dose of volatility. But according to Chris Bertelsen, CIO at Global Financial Private Capital in Sarasota, Fla., investors also should be on the look out for the “the compression effect” — a situation whereby one day of trading represents three. More importantly, when a “3-for1” compression day pops up in the midst of a painful earnings period and on the heels of a hurricane-forced market closing, share prices could react violently. So, traders are warned to keep a sharp eye on their exit strategies.
Make Your Vote Count… More Importantly, Make Your Investments Count
The investing world’s calendar is filled with special events like Compression Day or X-Dividend Dates, or Fiscal Year-Ends. But the most important one of them all is barreling down on you right now. Election Day. Thank goodness you have access to Eagle Financial’s experts: Dr. Mark Skousen, Doug Fabian, Nicholas Vardy and Chris Versace. They possess 104 years of investing experience — an invaluable resource on Election Day and the day after. Join Eagle’s experts for a FREE online Post-Election Investing Summit on Wednesday, November 7, 2012, at 2:00 p.m. Eastern, 11 a.m, Pacific as Eagle’s experts tell you exactly what you can expect from the next president and the markets for the next four years… To reserve your space, click here.