The world's largest restaurant chain's stock might be making record highs but concerns about declining customer traffic continue at McDonalds, according to the WSJ.
Set to announce first quarter earnings this Friday, the Big Mac folks have switched to a value approach to counteract what the company sees as "lackluster consumer spending world-wide."
Cost-conscious spending and value are in and higher-priced menu items out at least for now, tempering the company's outlook for 2013 earnings. Investors often use Big Mac as an economic bellwether, a label once given many years ago to GM, to gauge the global economy.
*****
Department store chain JC Penny apparently started the penny-pinching the moment now ousted CEO Ron Johnson jumped aboard. For years the firm employed around 150,000 full and part-time workers. Along came Johnson and after just one year, according one report, that number dropped to roughly 116,000.
That's nearly a 25% reduction in the workforce. Some of those let go we're designers for a women's sales line that generated a billion dollars a year that was also axed. Sales dropped 25% during Johnson's and his former Apple compatriots' reign.
****
Headline in today's WSJ: "U.S. Expanding Limits of Insider-Trade Probes."
It's a story about the KMPG LLP partner who reportedly passed along inside data to an acquaintance who profited. Investigators photographed the two men supposedly exchanging the goodies. The story than references some so-called legal experts suggesting this is a sign of how far regulators will go to "crack down on illegal stock tips."
This guy at the largest is pocket change.
Such is for the public's benefit. Regulators and the MSM can then say: "See we're are doing something." The KMPG guy in question is in California. Most of the regulators are in Washington.
With a short trip up the Hill to Congress they'll find a lot of insider tipping and they can save a lot of film and taxpayer bucks.
What this guy did members of Congress do all the time and on a much larger scale. He's probably going to jail. Congress people just get rich.
Level playing fields are like trash and beauty.
****
Monday, April 15, 2013
MONDAY READS
WHAT'S NEXT
http://www.reuters.com/article/2013/04/15/poland-rates-idUSL5N0D20PG20130415
SLOWDOWN IN CHINESE ECONOMY
http://money.cnn.com/2013/04/14/news/economy/china-gdp/index.html
THE FED DOVES
http://www.reuters.com/article/2013/04/13/us-usa-fed-idUSBRE93C0CL20130413
WEEKEND DEVELOPMENTS THAT MIGHT IMPACT MARKETS MONDAY
http://www.marctomarket.com/2013/04/two-weekend-developments.html#more
THREE BUBBLES TO WATCH
http://www.bloomberg.com/news/2013-04-09/the-scary-risks-of-safety-bubble-up.html
FOLLOW THE MONEY TO A TOP?
http://money.cnn.com/2013/04/12/investing/stocks-rally-inflow/index.html
TERRITORY UNSUSTAINABLE
http://www.minyanville.com/trading-and-investing/etfs/articles/Health-Care-Consumer-and-Utilities-Sectors/4/12/2013/id/4924
MEDIA CHANGE COMING
http://www.minyanville.com/sectors/technology/articles/The-Next-Step-in-the-Evolution/4/12/2013/id/49175
GOLD DOWN AGAIN
http://www.marketwatch.com/story/gold-falls-sharply-copper-hit-after-china-data-2013-04-15
http://www.reuters.com/article/2013/04/15/poland-rates-idUSL5N0D20PG20130415
SLOWDOWN IN CHINESE ECONOMY
http://money.cnn.com/2013/04/14/news/economy/china-gdp/index.html
THE FED DOVES
http://www.reuters.com/article/2013/04/13/us-usa-fed-idUSBRE93C0CL20130413
WEEKEND DEVELOPMENTS THAT MIGHT IMPACT MARKETS MONDAY
http://www.marctomarket.com/2013/04/two-weekend-developments.html#more
THREE BUBBLES TO WATCH
http://www.bloomberg.com/news/2013-04-09/the-scary-risks-of-safety-bubble-up.html
FOLLOW THE MONEY TO A TOP?
http://money.cnn.com/2013/04/12/investing/stocks-rally-inflow/index.html
TERRITORY UNSUSTAINABLE
http://www.minyanville.com/trading-and-investing/etfs/articles/Health-Care-Consumer-and-Utilities-Sectors/4/12/2013/id/4924
MEDIA CHANGE COMING
http://www.minyanville.com/sectors/technology/articles/The-Next-Step-in-the-Evolution/4/12/2013/id/49175
GOLD DOWN AGAIN
http://www.marketwatch.com/story/gold-falls-sharply-copper-hit-after-china-data-2013-04-15
Sunday, April 14, 2013
SNIFFING AROUND
Sniff were it smells the worst.
And the odor in closed end muni-bonds funds is growing, especially for closed end funds that employ some leverage in their efforts to ramp up yield.
Bad smells usually indicate some decay. Fear about things like too much leverage, government interference and interest rate changes are just a few scaring muni bond investors away from these funds.
President Obama has mentioned more than once he'd like to cap the tax-free benefits of municipal bonds. It shouldn't surprise; that's what class-warfare generals do. And we're not saying it won't happen.
But many of these states are essentially bankrupt. With the exception of most ideas from bureaucrats and policoes, nothing occurs in a complete vacuum, something these folks never seem to understand.
Fewer buyers could mean less revenue and higher interest rates for state and municipal sellers. Few things are foreseen. In the meantime, here's an article to help you decide whether you want to start sniffing.
COMMERCE WARS
Talk about currency and trade wars has ramped up since Japan kicked off it new QE program,
Some of this in time may prove noteworthy.
But there's another, more subtle war going on closer to home. In the past few weeks three states, Mississippi, Maine and Texas orchestrated invitations to gun manufacturers who ply their trade in those blue, PC-righteous, eastern seaboard states.
Two other states, Arkansas and Florida, recently extended an offer to other gun manufacturers in Connecticut.
The message is loud and clear: "C-mon down!" Texas Governor Rick Perry is the latest to roll out the welcome mat. Smith and Wesson is in Connecticut, the so-called Constitution State, the same state that pilloried one of its longstanding, local manufacturers a few years ago for wanting to move to avoid the state's oppressive tax rates.
Politician there, including the former attorney general, a wealthy guy who now represents Connecticut as a member of the good old boys club of the US senate, resorted to severe name calling, accusing the company of being a traitor, un-American because the firm proposed a move to Bermuda..
How un-American is it to move to another state? Just maybe we're going to find out.
If gun store owners and every gun-purchasing fan of S&W sent e-mails and made pubic announcements that they will no longer buy S&W products until they leave Connecticut, gun owners and the rest of us might regain some of the power these despots have usurped over the years.
To clear the record we don't belongs to the NRA and never have. This isn't about the NRA. It's about wealthy, elitists, eastern seaboard bullies like Mayor Bloomberg forcing their beliefs and so-called values on the rest of us. It's not about race, creed or religion. It's about power. Raw, ugly power.
The longer you wait to make a stand the less power you'll have when that day comes to a venue near you.
http://news.yahoo.com/texas-governor-connecticut-gun-maker-come-down-213053466.html
Some of this in time may prove noteworthy.
But there's another, more subtle war going on closer to home. In the past few weeks three states, Mississippi, Maine and Texas orchestrated invitations to gun manufacturers who ply their trade in those blue, PC-righteous, eastern seaboard states.
Two other states, Arkansas and Florida, recently extended an offer to other gun manufacturers in Connecticut.
The message is loud and clear: "C-mon down!" Texas Governor Rick Perry is the latest to roll out the welcome mat. Smith and Wesson is in Connecticut, the so-called Constitution State, the same state that pilloried one of its longstanding, local manufacturers a few years ago for wanting to move to avoid the state's oppressive tax rates.
Politician there, including the former attorney general, a wealthy guy who now represents Connecticut as a member of the good old boys club of the US senate, resorted to severe name calling, accusing the company of being a traitor, un-American because the firm proposed a move to Bermuda..
How un-American is it to move to another state? Just maybe we're going to find out.
If gun store owners and every gun-purchasing fan of S&W sent e-mails and made pubic announcements that they will no longer buy S&W products until they leave Connecticut, gun owners and the rest of us might regain some of the power these despots have usurped over the years.
To clear the record we don't belongs to the NRA and never have. This isn't about the NRA. It's about wealthy, elitists, eastern seaboard bullies like Mayor Bloomberg forcing their beliefs and so-called values on the rest of us. It's not about race, creed or religion. It's about power. Raw, ugly power.
The longer you wait to make a stand the less power you'll have when that day comes to a venue near you.
http://news.yahoo.com/texas-governor-connecticut-gun-maker-come-down-213053466.html
Saturday, April 13, 2013
THE PARTY CONTINUES
What's a high unemployment figure?
That all depends on where you reside. In places like Spain and France double digit figures are worrisome.
In another part of the EU, up north, 7.7% is getting up there, a figure the Netherlands reportedly breached in February where, according to a recent WSJ piece, unemployment has been steadily rising for the last two years.
The Netherlands it seems late last year reclined into another recession for the third time in four years. Recessions are the worst nightmare for austerity pushers. But they're best buddies of the kick-the-can crowd.
The EU's budget guidelines call for keeping deficits within 3% of GDP for 2013, a figure Dutch officials recently admitted they will miss, forecasting a figure closer to 3.3%. Instead officials rolled out a plan with $4.5 billion in new cuts for 2014 when the deficit is expected to grow to 3.4% of GDP.
In the meantime the government announced, it's adopting a wait-and-see mode to see if the cuts will be necessary. The government hopes improving exports will make the cuts unnecessary.
Along the way they're planning to cut the duration of unemployment benefits by one month every quarter in 2016 and leaving the amount received unchanged. Initially they had planned to cut the duration from three to two years and lower the amount people receive in the second year.
Consumer sentiment continues to decline and austerity pushers appear to be weakening in face of rising public pressure. To quote Prime Minister Mark Rutte: 'We are taking a breather."
Given that since the crisis hit this has pretty much been a north versus south dilemma from the beginning, look for a lot more breathers in the future. No bureaucrat wants to sing those famous, much needed words of an old Willie Nelson tune:
"Turn out the lights. The party's over. They say all good things must end."
WEEKEND READS
Who Is Right?
http://www.fool.com/investing/general/2013/04/12/bad-news-everyone-is-right.aspx
Taxes Reform
http://www.bloomberg.com/news/2013-04-10/for-168-billion-we-should-get-a-better-return-caroline-baum.html
Do It But Not Too Much
http://www.marketwatch.com/story/us-again-says-china-not-a-currency-manipulator-2013-04-12?link=MW_popular
Reduce Debt Talk From EU
http://www.reuters.com/article/2013/04/13/us-g20-eu-japan-idUSBRE93C08D20130413
There Are Dividends And There Are Dividends
http://online.wsj.com/article/SB10001424127887324010704578416662412780012.html?mod=WSJ_hps_sections_markets
Capitalism And North Korea
http://www.bloomberg.com/news/2013-04-09/why-capitalism-won-t-change-north-korea-s-regime.html
Commodities Turn Down
http://www.futuresmag.com/2013/04/12/commodities-slump-as-death-bell-rings-stocks-slip?ref=hp&t=commodities&page=2
You Decide
http://www.fool.com/investing/general/2013/04/12/bad-news-everyone-is-right.aspx
http://www.fool.com/investing/general/2013/04/12/bad-news-everyone-is-right.aspx
Taxes Reform
http://www.bloomberg.com/news/2013-04-10/for-168-billion-we-should-get-a-better-return-caroline-baum.html
Do It But Not Too Much
http://www.marketwatch.com/story/us-again-says-china-not-a-currency-manipulator-2013-04-12?link=MW_popular
Reduce Debt Talk From EU
http://www.reuters.com/article/2013/04/13/us-g20-eu-japan-idUSBRE93C08D20130413
There Are Dividends And There Are Dividends
http://online.wsj.com/article/SB10001424127887324010704578416662412780012.html?mod=WSJ_hps_sections_markets
Capitalism And North Korea
http://www.bloomberg.com/news/2013-04-09/why-capitalism-won-t-change-north-korea-s-regime.html
Commodities Turn Down
http://www.futuresmag.com/2013/04/12/commodities-slump-as-death-bell-rings-stocks-slip?ref=hp&t=commodities&page=2
You Decide
http://www.fool.com/investing/general/2013/04/12/bad-news-everyone-is-right.aspx
Friday, April 12, 2013
FRIDAY READS
Is It Working?
http://www.reuters.com/article/2013/04/11/us-japan-economy-abenomics-idUSBRE93A13B20130411
London Housing Prices Soaring
http://www.bloomberg.com/news/2013-04-11/u-k-house-prices-reach-five-year-high-as-london-s-lead-widens.html
A Different Take On Housing http://www.businessweek.com/articles/2013-04-10/cheap-mortgages-are-hiding-the-truth-about-home-priceshttp://www.businessweek.com/articles/2013-04-10/cheap-mortgages-are-hiding-the-truth-about-home-prices
Bullish Now
http://www.futuresmag.com/2013/04/11/economy-bears-turn-bulls-seeing-3-gdp-for-us-few-s?ref=hp&t=financials&page=3
Here's Some Honey For You
http://venturebeat.com/2013/04/11/show-me-the-honey-e-commerce-startup-sweetens-online-shopping-by-saving-you-money/
Your Brain And Your Biases
http://www.marketwatch.com/Story/story/print?guid=D7B08E52-A1FC-11E2-980E-002128040CF6
http://www.reuters.com/article/2013/04/11/us-japan-economy-abenomics-idUSBRE93A13B20130411
London Housing Prices Soaring
http://www.bloomberg.com/news/2013-04-11/u-k-house-prices-reach-five-year-high-as-london-s-lead-widens.html
A Different Take On Housing http://www.businessweek.com/articles/2013-04-10/cheap-mortgages-are-hiding-the-truth-about-home-priceshttp://www.businessweek.com/articles/2013-04-10/cheap-mortgages-are-hiding-the-truth-about-home-prices
Bullish Now
http://www.futuresmag.com/2013/04/11/economy-bears-turn-bulls-seeing-3-gdp-for-us-few-s?ref=hp&t=financials&page=3
Here's Some Honey For You
http://venturebeat.com/2013/04/11/show-me-the-honey-e-commerce-startup-sweetens-online-shopping-by-saving-you-money/
Your Brain And Your Biases
http://www.marketwatch.com/Story/story/print?guid=D7B08E52-A1FC-11E2-980E-002128040CF6
Thursday, April 11, 2013
GOVERNMENT SUBSIDIES
They're called entitlements when the poor receive them.
Recently the Italian government seized over a billion dollars of assets from the mafia. No surprise there. It's an organization in business, like any other, to accumulate assets and to make money.
What did surprise Italian authorities was one of those assets--renewable energy. Included in the government's mafia-linked haul were 43 wind and solar energy companies.
For years the US mafia was reportedly in the trash business. After all people need to do get rid of their trash. They also need energy. In some ways energy and trash are probably more interconnected today than ever.
So besides utilitarian reasons and perhaps some altruism what's the attraction? Government subsidies. That's where the money is, a fact practically everyone knows. And for the mafia there's the apparent added goodie, money laundering.
Economists spend gobs of time and other folks' money studying so-called leading indicators. It might be much more efficient and much cheaper to just find out what the mafia is doing.
http://www.isaintel.com/2013/04/08/renewable-energy-the-mafia’s-newest-playground/
Recently the Italian government seized over a billion dollars of assets from the mafia. No surprise there. It's an organization in business, like any other, to accumulate assets and to make money.
What did surprise Italian authorities was one of those assets--renewable energy. Included in the government's mafia-linked haul were 43 wind and solar energy companies.
For years the US mafia was reportedly in the trash business. After all people need to do get rid of their trash. They also need energy. In some ways energy and trash are probably more interconnected today than ever.
So besides utilitarian reasons and perhaps some altruism what's the attraction? Government subsidies. That's where the money is, a fact practically everyone knows. And for the mafia there's the apparent added goodie, money laundering.
Economists spend gobs of time and other folks' money studying so-called leading indicators. It might be much more efficient and much cheaper to just find out what the mafia is doing.
http://www.isaintel.com/2013/04/08/renewable-energy-the-mafia’s-newest-playground/
THURSDAY READS
London House Prices Soaring
http://www.bloomberg.com/news/2013-04-11/u-k-house-prices-reach-five-year-high-as-london-s-lead-widens.html
Household Wealth In EU
http://www.testosteronepit.com/home/2013/4/9/total-fiasco-germans-are-the-poorest-cypriots-the-second-ric.html
More Smoke From Washington?
http://news.investors.com/ibd-editorials/041013-651427-obama-budget-is-worse-than-everyone-thinks.htm?ref=HPLNews
How To Beat The Bond Market
http://online.barrons.com/article/SB50001424052748704567604578410513369288892.html?mod=BOL_hpp_dc
YTC Bonds: One Bond Guru's View
http://www.minyanville.com/trading-and-investing/fixed-income/articles/Why-You-Shouldn2527t-Hate-All-Bonds/4/10/2013/id/49188
Rising Land Prices
http://online.wsj.com/article/SB10001424127887323820304578412632432865220.html?mod=ITP_moneyandinvesting_0#articleTabs%3Darticle
Bullish With Warnings
http://www.marketwatch.com/story/new-highs-in-sp-500-are-very-bullish-2013-04-10
Rail or Pipeline
http://fuelfix.com/blog/2013/04/10/killing-keystone-seen-as-risking-more-oil-spills-by-rail/#comments
http://www.bloomberg.com/news/2013-04-11/u-k-house-prices-reach-five-year-high-as-london-s-lead-widens.html
Household Wealth In EU
http://www.testosteronepit.com/home/2013/4/9/total-fiasco-germans-are-the-poorest-cypriots-the-second-ric.html
More Smoke From Washington?
http://news.investors.com/ibd-editorials/041013-651427-obama-budget-is-worse-than-everyone-thinks.htm?ref=HPLNews
How To Beat The Bond Market
http://online.barrons.com/article/SB50001424052748704567604578410513369288892.html?mod=BOL_hpp_dc
YTC Bonds: One Bond Guru's View
http://www.minyanville.com/trading-and-investing/fixed-income/articles/Why-You-Shouldn2527t-Hate-All-Bonds/4/10/2013/id/49188
Rising Land Prices
http://online.wsj.com/article/SB10001424127887323820304578412632432865220.html?mod=ITP_moneyandinvesting_0#articleTabs%3Darticle
Bullish With Warnings
http://www.marketwatch.com/story/new-highs-in-sp-500-are-very-bullish-2013-04-10
Rail or Pipeline
http://fuelfix.com/blog/2013/04/10/killing-keystone-seen-as-risking-more-oil-spills-by-rail/#comments
BIT BY BIT
I heard the story, bit by bit, from various people, and, as generally happens in such cases, each time it was a different story. Edith Wharton, Ethan Frome.
You'll have a difficult time finding a better piece of advice for understanding what goes on in markets. It's a different story every day. And through various sources and bit by bit over time you'll get an understanding of what moves them.
Yesterday real estate magnate Sam Zell put in an appearance on CNBC and unleashed a rare commodity these days, the truth. The truth unfortunately gets the same reception as whistle blowers, especially when it comes to MSM.
In the early part to the last decade, just before the tech bubble popped, Zell appeared at a conference in Century City where he spoke. At the time he was owner of lots of property in Silicon Valley. Might still be.
Someone ask him if he took part of the lease payments in shares of those hotter than hot technology darlings that were posting new highs every 20 minutes. His answer was quite revealing.
He responded he'd done something like that earlier in his investing life and got burned. Not this time around. Leases are leases. He wasn't interested in what could be called, depending on one's viewpoint, technology PIKs.
Zell's response that evening shocked many. Taking those shares in payment seemed such a no- brainier. After all, wasn't that what all those people who quit their jobs and rushed off to work in the valley were doing? Most of them had to be pretty smart people.
Here's link to his recent shocking revelation.
You'll have a difficult time finding a better piece of advice for understanding what goes on in markets. It's a different story every day. And through various sources and bit by bit over time you'll get an understanding of what moves them.
Yesterday real estate magnate Sam Zell put in an appearance on CNBC and unleashed a rare commodity these days, the truth. The truth unfortunately gets the same reception as whistle blowers, especially when it comes to MSM.
In the early part to the last decade, just before the tech bubble popped, Zell appeared at a conference in Century City where he spoke. At the time he was owner of lots of property in Silicon Valley. Might still be.
Someone ask him if he took part of the lease payments in shares of those hotter than hot technology darlings that were posting new highs every 20 minutes. His answer was quite revealing.
He responded he'd done something like that earlier in his investing life and got burned. Not this time around. Leases are leases. He wasn't interested in what could be called, depending on one's viewpoint, technology PIKs.
Zell's response that evening shocked many. Taking those shares in payment seemed such a no- brainier. After all, wasn't that what all those people who quit their jobs and rushed off to work in the valley were doing? Most of them had to be pretty smart people.
Here's link to his recent shocking revelation.
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