We Are All Linked

I recently viewed a news report on the economic troubles in Europe. This report focused on Spain’s economy, how it’s housing market remained in steep decline, unemployment was 24%, close to 50% unemployment among youth, and how despite having above average college graduation rates, many graduates were leaving Spain for countries with better employment prospects… read more →

Earnings to Headlines

As the final corporate earnings reports for 2011 trickle in, we can say with confidence that 2011 was another good year for corporate profits. Corporate profits are very healthy. In fact they have more than doubled since the 1st quarter of 2009. We should be aware however, now that earnings reports are over we will.. read more →

FEAR + FUNDAMENTALS = OPPORTUNITY?

The European debt crisis, Washington political gridlock, and slow “new normal” economic growth; as investors we all lived through these market events and realities in 2011. Unfortunately, none of these conditions are likely go to away any time soon. Throw in unrest in the Middle East and a potential nuclear showdown with Iran and you.. read more →

Emerging Markets Are Not Europe

We continue to see the Emerging market stocks get beat up as the global economy has cooled and the U.S. and European debt problems percolate every day. We believe that current headlines and TV talking heads are preventing investors from taking the long-term view on this important asset class. So… let’s step back and gain.. read more →

Deleveraging –> Baby Steps For Now!

Leveraging did not occur overnight, and the process of “deleveraging” government balance sheets will not happen overnight either. In the aftermath of 2008, the U.S. government recapitalized banks and invested in our auto companies to prevent a financial meltdown and massive layoffs in our manufacturing base. These investments have largely been paid back in full, with.. read more →

Managing Through Up and Down Markets

During the last 60 trading days, the S&P 500 Index has had 37 days of intra-day price swings of more than 2%. There have been both up days (up 11% since October 4th) and down days (down 18% prior to October 3rd), though unfortunately, more down days as of late. Sailors sometimes need to navigate.. read more →

What Happened? Why Did It Happen? Is It 2008 All Over Again?

Just a quick note to keep you informed on what All Star Financial is thinking about the world we live in these days. Actually let”s take the last 10 business days in review: The United States lost its AAA rating. The Federal Reserve came out with the ZIRP (zero interest rate policy) until 2013. The.. read more →

Moderating Growth, More Volatility

The recent correction of 10-15% in major stock market indexes was ignited by concerns over sovereign debt markets in Europe, but it is also a reflection of moderating growth rate in our economy. The rapid rebound from our recession lows is over, and we expect moderating economic and earnings growth in the months ahead. We.. read more →

Thursday’s Flash Crash and Europe

Last week was a hectic week in the stock market. On Thursday we witnessed a rollercoaster as stocks started strong, fell as fears increased that the sovereign debt crisis in Greece might spread to other areas of Europe. Shortly thereafter we saw the Dow fall almost 10% in just a fraction of an hour, and.. read more →