Earnings Reports, European Agreement Boost Stocks (Bloomberg)
European leaders arrived at a budget agreement today, eliminating the uncertainty of the previous few days and giving investors confidence, which resulted in raised U.S. stocks. Continuing corporate earnings reports also contributed to the rise. “Confidence is emerging here,” said James Paulsen, chief investment strategist at Minneapolis, Minnesota-based Wells Capital Management. “People are finally deciding that this looks more like a sustainable recovery.”
Americans Again Tapping into Home Equity (CNBC)
Despite millions of mortgaging homeowners owing more than their property’s worth, home equity lines of credit are increasing. “Home prices are definitely a factor” in the recent rise home equity lines of credit, said Brad Blackwell, an executive with Wells Fargo Home Mortgage. “As they increase, people have more available equity.” This hearkens back to last decade’s housing boom, when Americans treated housing like ATMs until equity was exhausted.
Yen Jumps, Euro Dragging (Reuters)
Comments from Japan’s finance minister that the yen already has weakened too quickly recently raised both that currency’s position against the dollar and the euro and doubts regarding the Bank of Japan’s expected aggressive monetary easing. The euro continued to drag on European Central Bank President Mario Draghi’s comments earlier this week.
You don’t want to be holding the bag when the market recognizes that a company’s core products are obsolete. Yet there are millions of investors that have done that -- perhaps a few times over. Remember Polaroid? Its products were put out at the curb to be picked as trash.
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:
Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.
Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services: