As the Dow Breaks 15,000, Is It Too Late to Buy?
With the market setting records, it's natural to worry that stocks have gone up too far. But higher priced stocks may still be a good deal.
With the market setting records, it's natural to worry that stocks have gone up too far. But higher priced stocks may still be a good deal.
Lululemon took a hit after a fiasco with see-through yoga pants. But it's not the first company to make -- or bounce back from -- a potentially destructive mistake.
After barreling through a record the day before, the Dow Jones industrial average meandered higher on Wednesday. The DJIA edged up 42.47 points to close at 14,296.24. An encouraging job-market report helped nudge the stock market up and pushed bond prices lower. The question now is, how much longer can it keep climbing?
The race doesn't always go to the swift, goes the old saying. But that's the way to bet it, replies the savvy gambler. So it is with the old saying about the stock market. Past performance is no guarantee of future returns. But it still makes sense to look at historical data - because that's the way to bet it.
Warren Buffett said Monday that stocks remain relatively cheap compared to other investments as the economy continues to improve. He also said that the company he heads is prepared to replace him whenever the need arises. The billionaire addressed a variety of topics during an interview on the cable TV network CNBC, two days after his annual letter to the conglomerate's shareholders was released.
The Patriots and Giants will interrupt the entertainment to run some football plays, but everyone knows the Super Bowl is all about the commercials, and at $3.5 million for 30 seconds, sponsors must think they'll get their money's worth. But will their shareholders feel the same way?
Just a few months ago, coffee-related companies were as hot as a steaming cup of joe. Buoyant coffee bean prices, a growing consumer appetite for premium coffee, and a few company-specific events fueled a rally in the niche. But the hype has lost it caffeine buzz, and prices are way down.
Street Directory recently made the argument that if investors want some degree of price stability, they should buy stocks which have heavy daily trading volumes. But what if an investor prefers the potential of sharp moves up or down that comes with a stock whose normal daily volume is modest?
Here's a short answer for those who wonder what could transport the market still higher: the economy. The unexpected and sudden advance that started last September foresaw favorable economic news. The continuing rebound will now propel the market to even headier levels.
Prestigious management consulting firm McKinsey & Co. just published Value: The Four Cornerstones of Corporate Finance, a guide to help executives create shareholder value. Lead author Tim Koller shares his thoughts with DailyFinance about how the book might also help investors profit.
The former Fed chief told CNBC Friday that the Fed's policy to boost liquidity is helping stock values. "I think we are underestimating. . .how important asset prices, very specifically equity prices, are not only to shareholders but the economy as a whole," he said.
On Wall Street, the retail sales figures that count aren't absolute numbers. Investors act based on how those numbers compare to what was expected, and in the case of Black Friday Internet sales, reality beat the predictions. That's good news for Amazon.
Interest rates are falling for Treasury bonds, beloved for their safety and steady payout. The stock market is wobbling, and equity prices may fall further if the economy gets weaker. What's an investor supposed to do now?
Instead of embracing what the daily voices of doom are proclaiming -- notice how equity prices continue to edge higher in spite of all the seemingly bad news. Now's the time for long-term vision.
Wall Street analysts still predict a record $97 in profits for the S&P 500 next year despite a lackluster economy. Expectations of massive corporate profits have propped up the stock market. That could change quickly. (With video)














