THE CHOPPY MARKET EDITION
21 JUNE 2012
U.S. Market Choppy Despite Solid First-Quarter Earnings
by the Investor Advisory Service
The U.S. stock market turned choppy in April and remained that way into May despite a generally solid first-quarter "earnings season." Many factors influence stock prices in the short run, but corporate earnings are the most important factor over the long term.
Continued near-recessionary conditions in Europe and slowing growth in China reminded investors that the global economy isn't as healthy as we'd like. At recent count, 11 of the 17 countries using the euro are in recession. Germany is holding its own, but its economy is highly dependent on exports, particularly to its European neighbors. European industrial production declined again in March and a measure of European manufacturing points to further contraction in April.
Recent European elections suggest a rejection of budget austerity. Greek voters largely shunned their centrist parties in favor of more radical candidates. Certain aid funds to Greece were withheld as the European Stabilization Mechanism awaits further signs of adherence to agreed-upon spending cuts and tax increases. Greece and the rest of Europe appear to be at a standoff as to the conditions of Greece's continued use of the euro currency and its membership in the European Union. A continued tough stand by the rest of Europe may be necessary in order to make an example of Greece, lest Italy and Spain expect a bailout. Growth in China has moderated a bit, but still remains quite strong at about 8%. Measures of its factory sector point to continued growth.
Read more ...
New Mutual Fund Newsletter from ICLUBcentral Is Launched!
Investing in mutual funds doesn't have to be difficult, as long as you steadfastly follow a few straightforward principles. Unfortunately, there are many opposing forces that get in the way of putting these rules into effect in your personal portfolio. That's why ICLUBcentral has launched a new monthly subscription newsletter just for mutual funds. Edited by StockCentral founder Doug Gerlach, the Mutual Fund Informer is your key to finding the best funds for your financial goals.
For example, your 401(k) retirement plan at work probably provides dozens — if not hundreds! — of mutual fund options for your retirement portfolio. With so many funds to choose from, and so little guidance provided by employers or 401(k) plan sponsors, it's no wonder that many investors approach their choice of funds as they would fill up a plate at a buffet restaurant. They pile on the funds, taking a little bit of this one and a little bit of that one — and doesn't that one over there look interesting? Before long, the collection of mutual funds in their 401(k) plan is looking (and performing) more like what pigs enjoy in their slop trough than a four-star dining experience. Which is more appetizing to you?
Each month, the Mutual Fund Informer will present two mutual funds for you to consider in your IRA, 401(k), or regular brokerage account. But if the Mutual Fund Informer is to help you to use mutual funds to build a successful portfolio, you must be prepared to adhere to our "6 Rules of Successful Fund Investing." These principles are based on the commonsense advice that history's best investors have used and subsequently taught to students of the markets. You can learn more about these principles, and download a free sample issue, from the Mutual Fund Informer website.
Even better, StockCentral subscribers can save big on a subscription to the Mutual Fund Informer! Log in to the StockCentral website to learn how to redeem your StockCentral special discount today!
Are You Investing in a 401(k) Plan?
More Americans invest in the stock market via their 401(k) or other company-sponsored retirement plans than via any type of account. Although we are focused on stocks here at StockCentral, we are working on developing some educational programs and tools related to mutual fund and retirement planning. We thought it would be interesting to see how many of you smart investors in our audience are also using 401(k) plans and get your input.
* How many of you have 401(k) plans or a similar plan such as a 403(b)?
* Does your plan offer stocks or just mutual funds?
* Do you have an asset allocation plan for your 401(k)? What percentage are you investing in what types of funds?
Let us know your thoughts!
BINC 2012 — Last Chance for Spring Special Rate!
Successful investors know that continuing education improves understanding of their decision-making and the dynamics of the market. From refreshing your knowledge on fundamental concepts to expanding into new areas, spending some quality time concentrating on the investing aspects of your life will pay off in the long run.
You won’t want to miss this opportunity to attend BetterInvesting’s National Convention in Houston this fall and attend a variety of classes from fundamentals to advanced concepts. With over 70 sessions in seven different investing tracks, there's something for every investor!
* Christine Kiefer - How to Recognize and Avoid Fraud
* Carol Theine - PEG and Relative Value
* Hugh McManus - Investing in Pharmaceutical and Biotech Companies
* Jim Thomas - Don't Trade Naked - Basics of Covered Calls
* Jim Hurt - Debt to Equity
* Jim Crabill, Susan Maciolek, Pat Donnelly - Beginning Investor Series
* Doug Gerlach - Toolkit 6: Beyond the Basics
* Mike Torbenson - How to Conduct Your Own Portfolio Review
* John Tufts - Prepare for Retirement - Managing your 401(k)
* Doug Gerlach - Your Investment Club in the Cloud
* Christi Powell - Covering Your Bases: Some Important Retirement Decisions
* Dennis Genord - Discounted Cash Flow
* Gretchen Hurt - Cash Flow 101
* Cy Lynch - Show Me the Money - Focus on Total Return
* Allen Holdsworth - Exchange Traded Funds - The Hottest New Investment
* Scott Horsburgh - A Live Repair Shop
* Ken Kavula - Stock Prospector
* Gary Ball - When to Sell – Besides Never!
Hurry, the last day to sign up for the Spring Special registration price is June 30, 2012!
Your registration includes all of the above plus five meals, the Saturday awards banquet, keynote presentation by Morningstar analyst Mike Tian, Expo Hall admission, corporate presentations and computer lab with investing tools demonstrations.
Click here to see the schedule and register!
BetterInvesting
Member
Non-Members*
*includes 1 year membership
$400
$470
Register today! You won't be disappointed. Join us to celebrate 61 years of BetterInvesting and improve your investment knowledge. For additional information and registration details visit http://www.betterinvesting.org/biconvention.
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