DailyFinance.comhttp://www.dailyfinance.comDailyFinance.comhttp://o.aolcdn.com/os/df/2013/img/2-dailyfinance_logo_m.pngDailyFinance.comhttp://www.dailyfinance.comen-usCopyright 2013 Weblogs, Inc. The contents of this feed are available for non-commercial use only.Blogsmith http://www.blogsmith.com/Nine Reasons Why Investors Are Nervous Nowhttp://www.dailyfinance.com/2011/03/29/nine-reasons-why-investors-are-nervous-now/http://www.dailyfinance.com/2011/03/29/nine-reasons-why-investors-are-nervous-now/http://www.dailyfinance.com/2011/03/29/nine-reasons-why-investors-are-nervous-now/#commentsFiled under: , , , ,

The stock markets have been on a tremendous run over the last six months - but a large group of investors is still sitting on the sidelines, watching nervously and refusing to put their money back into the markets.

Part of the problem is the positive economic reports and forecasts of recent weeks haven't made most consumers feel better about anything regarding their personal financial situations. And to top it all off, news of rising food and gas prices, widespread unrest in the Middle East and looming state budget cuts have heightened fears that economic conditions are bound to become worse.

Not Confident About Consumer Confidence

"John Q. Public is not feeling the same thing the government is saying about there being no inflation, and that consumer confidence is high," says Ken Polcari, managing director of broker dealer ICAP LLC (IAPLF). "Every day they see the price of food and gas keeps going up. If you have to spend more money on food and energy, you have less money to spend on everything else."

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Polcari, who trades equities on the floor of the New York Stock Exchange, believes keeping in touch with how average Americans feel about economic events can often provide clues to where the markets are headed. And while he remains optimistic that long-term market trends will be positive, Polcari believes consumer angst and nervousness over world events may soon start to influence short-term market movements.

Investors may want to take note -- because if consumer confidence starts waning, the economy and financial markets might swoon along with it.

In his daily blog to clients recently, Polcari listed his top nine reasons investors are nervous now:

1) What will the end of QE2 mean for the markets?
The end of the second round of quantitative easing (QE2), the Federal Reserve's massive $600 billion capital infusion into the financial markets, presents a major concern for investors. Stocks have risen nearly continuously since the program first announced in August 2010. So, it can be argued this is a "Fed-induced" rally -- and that market confidence will disappear in June when QE2 is set to end. "Unless the market is healthy enough and strong enough to support itself, you would expect the market to pull back," says Polcari.

2) The looming federal government shutdown.
Now working with a two-week reprieve, Democrats and Republicans continue their threats to walk away from the table as they fight over budget cuts. While it's unlikely either side will shut down the government, some investors shudder to think of the chaos and market mayhem that could ensue if they did -- concerns like a scuttling of the economic recovery, massive layoffs and a ripple effect of state government shutdowns due to discontinued government funding.

3) Political unrest in the Middle East and the effect on oil prices.
The markets are already affected by instability and tensions in the Middle East. "It creates nervousness -- people are going to sell their equities and put the proceeds into cash or gold," says Polcari.

Rising oil prices have sparked market sell-offs -- because the escalating price of oil is causing nearly everything to increase in price worldwide. Transportation costs, airline prices, creation of food and energy as well as the production of thousands of products are all increasing due to the disruption of oil supplies.

4) Political unrest in the U.S. as states battle unions over pay and benefits.
With 40 of the 50 states dealing with budget woes, fights over pension and health care benefits may have a major impact on whether states can balance their budgets or go into default. The battles with unions in Wisconsin and Ohio will are being watched carefully. "That is potentially going to cause a ripple effect through a number of states," says Polcari. "If they succeed in curtailing collective bargaining rights, other states are going to get on that bandwagon."

5) Recently downgraded GDP numbers.
The downward revision of U.S. gross domestic product projections isn't a good sign, and if oil prices continue to spike, GDP may be revised even lower. If GDP gains falter, confidence will wane and markets will react badly.

6) Continued housing market weakness.
Residential real estate isn't getting any better -- and with energy prices going up, property taxes increasing and home values still dropping, there's less incentive to buy a home now than in years past. If interest rates begin to rise, new mortgage costs will rise as well - which will keep the housing market subdued. It's hard to see a strong recovery without housing.

7) Worldwide inflationary pressures.
Although the Fed says U.S. inflation is low, people in other parts of the world are feeling its wrath -- in the form of skyrocketing food and energy prices. The result? "People are rioting," says Polcari. Political unrest is sweeping across the Middle East at least in part because people can't take care of their families as prices skyrocket. Don't think it can't happen here.

8) Continued high unemployment and lack of job creation.
Until the unemployment rate falls below well below 9% (February's report finally squeaked past the 9% mark at 8.9%), most people will continue to believe the current administration has failed to create an environment that can support strong job creation. Without job creation, markets are likely to sputter.

9) The continuing European debt crisis.
While this crisis may have fallen off the media's radar screen for the past month, the debt problems of Portugal, Ireland, Greece and Spain haven't been resolved. A default by any one of these nations would shock world markets.

All of these issues could have serious ramifications for U.S. stock markets, but there's no certainty that any one of them will unfold in a negative way. In fact, the stock markets have continued to rally in spite of most of the nine issues mentioned. Investors can only hope that trend will continue.


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]]>consumer confidenceeconomyEuropean debt crisisfood pricesfood prices going upgovernment shutdowninflationInvestinginvesting outlookKenny Polcarimiddle east protestsQE2stock marketunemploymentwhy investors are worriedMatthew ScottTue, 29 Mar 2011 11:00:00 ESTTwo Years After Hitting Bottom, Will Markets Rally or Reverse?http://www.dailyfinance.com/2011/03/09/two-years-later-stock-market-rally-bear-bull-outlook-forecast-prediction/http://www.dailyfinance.com/2011/03/09/two-years-later-stock-market-rally-bear-bull-outlook-forecast-prediction/http://www.dailyfinance.com/2011/03/09/two-years-later-stock-market-rally-bear-bull-outlook-forecast-prediction/#commentsFiled under: , ,

If investors thought things were bad two years ago when the Dow Jones Industrial Average and the S&P 500 hit 10-year lows during the depths of the economic crisis, they're probably not much happier today. While the good news is that stock prices have recovered -- gaining 85% since the financial markets hit bottom on March 9, 2009 -- the bad news is there's just as much uncertainty in the market as there was then, and investors are fearful that at any moment, something could trigger another massive crash.

The truth is, there is a case to be made for either a major bear market pullback or a major bull market run on top of the two-year rally we've already experienced. While there are certainly a multitude of things for investors to worry about, are a number of things have improved over the last two years.

Companies are in Better Shape Than Two Years Ago

The economy is in better shape than it was two years ago, and the prevailing opinion on Wall Street is that most companies are in better shape too, having engaged in massive layoffs and cost-cutting measures to maintain their profit margins during the recession. But now there are few easy ways left for companies to cost-cut their way to more profits, and they're faced with having to generate higher sales revenues in a vastly different and more expensive environment than existed two years ago.

Making matters worse, the costs for commodities and raw materials have doubled or tripled over the last two years. Those higher prices for oil, corn, cotton, soybeans, metals and energy are cutting into profit margins, and many firms will have to substantially improve their sales just to keep pace with last year's profit levels.

Can companies realistically expect higher sales when everything costs more, consumers are still being cautious about spending, and the economy is only expanding at a moderate pace? If they can, we're probably looking at an extended bull market. If they can't, then the bears will likely creep back into the picture.

A Technical Argument for Bearishness

Since the market lows in March 2009, we've experienced a two-year bull market rally, something the analysts at Schaeffer's Investment Research say has only happened nine times since 1900. Two years of virtually uninterrupted upward market movement should be something to celebrate, but historically, that pattern has been the harbinger of a market pull-back, not a jumping off point for a prolonged rally. The last two-year bull market ended in March 1987 and it was followed seven months later by the October 1987 Black Friday market crash.

"After hitting a two-year bull market anniversary, the Dow has tended to continue its rally during the next six months," reports Rocky White, Senior Quantitative Analyst at Schaeffer's Investment Research. "However, the returns are bearish in the longer term. One year after this event, the Dow averages a loss of 2.7%. Two years later, the Dow was higher only 25% of the time averaging a significant 6.3% loss."

While such an assessment could feed investor pessimism, it should be noted that we've never experienced a two-year bull market in such a global economy. International markets will have a much bigger effect on what happens this time, so it could be argued that we are in uncharted territory.

Room for Bulls: Stocks Aren't as 'Up' as They Look

While Wednesday marks the two-year anniversary of a bull market, it also marks the end of what some consider a lost decade for stocks. The average stock market returns over the last decade were slightly negative, and analysts from Savant Capital Management say that hasn't happened in more than 100 years.

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"Historically, after a 10-year period of no returns for the S&P 500, you tend to see above-average returns for the next decade going forward," says Grant Moore, a financial adviser for Savant Capital.

Moore says that while there could certainly be a market pull-back in the short term due to fears about political upheaval in the Middle East and other factors, he predicts the average yearly returns during this coming decade are likely to be one or two percentage points higher than they would normally be. "If the market usually produces 9% to 11% gains, you can reasonably expect 10% to 12%," he says.

Why is Moore so upbeat? He believes the last market crash has left many stocks unfairly undervalued, and he doesn't see values decreasing much more because most companies have done a good job cutting costs and paring down debt.

"The fact is that companies are sitting on record levels of cash -- they are extremely profitable and undervalued relative to the long-term averages," Moore notes. "That should signal to most investors that we are going to experience some positive returns going forward."

Whether that period of gains will last for a decade or only the next six months is anyone's guess.

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]]>bear marketbull marketcommoditiescost cuttingDJIAInvestinglibyamarket forecastmarket outlookMiddle East Unrestprofitsrallyraw materialssales grSP 500stock market returnsstocksTechnical Analysisuncertaintyundervalued stockswholesale pricesMatthew ScottWed, 09 Mar 2011 13:46:00 ESTHow Your Portfolio Can Profit From Higher Oil Priceshttp://www.dailyfinance.com/2011/03/08/investments-poised-to-gain-from-rising-oil-prices/http://www.dailyfinance.com/2011/03/08/investments-poised-to-gain-from-rising-oil-prices/http://www.dailyfinance.com/2011/03/08/investments-poised-to-gain-from-rising-oil-prices/#commentsFiled under: , , ,

Analysts say oil prices will likely keep rising in the short term. But savvy investors can use that increase to their advantage.Feeling the pain of skyrocketing oil prices? Even though oil hit $106 a barrel this week, analysts at Standard & Poor's expect it to keep rising in the short term.

The political unrest and revolution in Libya are sparking the current price spike, but additional factors -- such as a growing world population, the industrialization of India and China and the surging ranks of the middle class in emerging markets -- will also keep demand high as supplies tighten worldwide. That will boost oil prices over the next year, according to S&P mutual fund analyst Michael Souers.

"We've got oil supplies threatened or potentially threatened at a time when demand is potentially increasing," says S&P equity analyst Stewart Glickman, who covers oil services and drilling. "The geopolitical risk has been contained for some time, but now people feel that it may not be contained."

Glickman says it's also getting increasingly harder for oil companies to find new supplies. As the capacity of known oil fields diminishes each year, that leaves the riskiest and most expensive fields left to drill. For example, deepwater drilling permits in the Gulf of Mexico are more expensive and come with added safety costs, especially after BP's (BP) catastrophic Deepwater Horizon explosion and oil spill last year.

All of these factors mean oil could remain pricey for a long time, but at the very least, they suggest further upward pressure on oil prices in the short term. Analysts have already targeted $120-a-barrel oil as a major milestone, but some are suggesting that even $200 oil may not be far off.

Pain Relief for Oil-Price-Pressured Portfolios

But higher oil prices aren't necessarily all bad news for investors: They also can create new opportunities. Investors might be able to find some pain relief for their portfolios with investments that benefit from oil's steady increase.

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For example, investing in oil-industry-related mutual funds could be an excellent play "over the next 12 months and beyond," Souers says.

Unless you have the financial resources to buy expensive-oil company stocks like Exxon/Mobil (XOM) or Chevron (CVX) directly, mutual funds and exchange-traded funds (ETFs) that track oil-related industries are worth considering. They're much less expensive, and they offer greater diversification and lower risk than investing in individual stocks -- although they also might deliver less of a reward when oil prices rise.

But mutual fund analyst Dylan Cathers advises investors to make sure that one fund doesn't make up their entire portfolio exposure to energy or the oil industry. Each fund may have different levels of exposure to different parts of those industries. "It's important for investors to know exactly what they are looking for and to look at their own funds," he says.

Taking Advantage of Oil's Predicted Rise

As for ETFs, the United States Oil Fund ETF (USO) tracks oil exclusively, Glickman says. Other energy ETFs that track indexes that are heavily weighted toward oil-related industries include the $10 billion Energy Select Sector SPDR Fund (XLE), the $2 billion Vanguard Energy Index Fund ETF (VDE) and the $1.1 billion iShares Dow Jones Energy Sector Index Fund (IYE).

"ETFs can give you exposure to the integrated oil and gas companies, upstream exploration and production companies and oil equipment and services firms," Glickman says. "You may have to trade some performance on oil-price gains for hedging exposure to other parts of the industry."

S&P recommends several funds based on performance, risk and cost. These include:

Fidelity Select Portfolio Natural Resources Fund (FNARX)
Has outperformed peers over the one-year, three-year and five-year periods with a low expense ratio of 0.9%. Top holdings include Exxon/Mobil, Apache (APA) and Massey Energy (MEE).

Franklyn Natural Resources Fund (FRNRX)
Has outperformed peers over the one-year, three-year and five-year periods with a 1.1% expense ratio. Unfortunately, it carries a sales load of 5.75%, which adds to the expense. Top holdings include Schlumberger (SLB), Chevron and Exxon/Mobil.

ICON Energy Fund (ICENX)
Has outperformed peers over the three-year period by 400 basis points with a 1.2% expense ratio. Has a higher turnover rate than its peers, which can increase overall fund costs due to trading fees. Top holdings include Exxon/Mobil, Apache and Chevron.

ING Global Natural Resources (LEXMX)
Has outperformed peers over the one-year, three-year and five-year periods by 400 basis points. Invests in a wider array of companies - 45% of the assets are invested in foreign stocks. A sales load makes it a bit expensive. Top holdings include Exxon/Mobil, Schluberger, ConocoPhillips (COP)

Guinness Atkinson Global Energy Fund (GAGEX)
Has outperformed peers over the one-year and three-year periods with a 1.4% expense ratio. Provides an equally weighted approach to energy industry. Top holdings include Chesapeake Energy (CHK), BP and PetroChina (PTR).

Vangauard Energy Fund Admiral (VGELX)
Has more exposure to integrated oil companies than most mutual funds. Very low costs with an expense ratio of 0.32%. Top holdings include Exxon/Mobil, Chevron, Total (TOT) and BP.

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]]>Energyenergy etfenergy fundsenergy pricesenergy stocksETFsindividual investorsInvestinginvesting tipsInvestmentinvestorinvestorslibyaMutual fundsoiloil fundsoil pricesoil productionoil shockoil stocksOilPricesMatthew ScottTue, 08 Mar 2011 12:00:00 ESTThis Could Be a Good Year for Commercial Real Estatehttp://www.dailyfinance.com/2011/03/03/2011-could-be-a-good-year-for-commercial-real-estate-investments/http://www.dailyfinance.com/2011/03/03/2011-could-be-a-good-year-for-commercial-real-estate-investments/http://www.dailyfinance.com/2011/03/03/2011-could-be-a-good-year-for-commercial-real-estate-investments/#commentsFiled under: ,

Commercial real estateSeveral billion-dollar deals made this week have put commercial real estate investors in an optimistic frame of mind: Perhaps real estate investments can do far better than expected in 2011. Improving economic conditions and a limited supply, analysts say, appear to have lifted the industry past the worst of its downtrend during the Great Recession, while positioning it to make a sustained comeback in 2011.

"If you recall, 18 to 24 months ago this market was the next shoe to drop [in the financial crisis]," says Michael Torres, CEO of Adelante Capital. "We have averted the crisis, and there is money to be made."

Adelante Capital invests roughly $2.5 billion in hard real estate assets, real estate investment trusts and real estate-rich companies such as Starwood and Marriott -- companies that hold large amounts of commercial properties but are not REITs (real estate investment trusts). Torres says the easy money in commercial real estate has already been made -- because the industry saw gains of more than 20% over each of the last two years as it recovered from its 2008 lows.

The FTSE NAREIT (National Association of Real Estate Investment Trusts) U.S. Real Estate Index reported returns of 27.45% in 2009 and 27.58% in 2010. And the consensus on Wall Street is commercial real estate should grow in the 5% to 15% range this year. However, the Blackstone Group's $9.4 billion deal to purchase several U.S. shopping centers and Ventas's $5.7 billion buyout of a health care REIT indicate a level of interest in commercial deals that could see those projections improve.

Supply, Demand, Concessions and Investments

According to Torres, the commercial real estate market will benefit from two factors in 2011. First, minimal demand for new space has cut down on new construction, giving current structures an opportunity to regain some of the value they may have lost during the 2008 bust. Greater optimism brought on by the current economic recovery has also helped increase appraisal values. "Having no new supply has allowed the economic recovery to get a footing into the market place," says Torres.

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And second, those better economic conditions are beginning to favor property owners in a number of ways. As companies ramp up for growth, the some real estate should increase in value significantly -- depending on the location and type of space available. Certain property types with specific amenities will attract higher rents -- and some cities will see the value of their commercial real estate jump, due to its proximity to valued resources.

Torres notes the concessions that owners previously had to make to attract or retain tenants are decreasing, "and owners are stepping up their expectations on rent."

Higher rents mean higher revenues for commercial properties, which make them good investments for the future. However, investing in the actual properties isn't always practical, so Torres suggests that retail investors look at the iShares Dow Jones Real Estate Index ETF (IYR), the $3 billion passive exchange traded fund that tracks commercial real estate. The Vanguard REIT Index ETF (VNQ) is also an option for those who want some broad exposure to commercial real estate.

Torres says a basket of five to seven real estate investment trusts, targeted to different asset types and management styles, should provide enough diversification to minimize portfolio risk.


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]]>commercial real estateInvestingMatthew ScottThu, 03 Mar 2011 10:00:00 ESTTaxpayers Find a Little Relief in IRS's New Tax Lien Ruleshttp://www.dailyfinance.com/2011/03/01/taxpayers-find-a-little-relief-in-irss-new-tax-lien-rules/http://www.dailyfinance.com/2011/03/01/taxpayers-find-a-little-relief-in-irss-new-tax-lien-rules/http://www.dailyfinance.com/2011/03/01/taxpayers-find-a-little-relief-in-irss-new-tax-lien-rules/#commentsFiled under:

The Internal Revenue Service has relaxed its policy on liens for unpaid taxes, giving taxpayers a bit more wiggle room to avoid a lien.Taxpayers can breathe a little bit easier this week now that the Internal Revenue Service has eased its policy on filing federal tax liens against those who owe unpaid taxes.

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A federal tax lien gives the IRS the right to make a legal claim against a taxpayer's property for the amount of an unpaid tax debt. An IRS lien can knock as much as 100 points off an individual's credit rating or decimate a business's ability to make its payroll or apply for credit. When a lien is filed, the IRS can freeze all bank accounts and instruct anyone that owes money to the taxpayer or business to make all payments directly to the IRS until the debt is paid off.

Lien filings have surged over the last decade, leaving more and more taxpayers to face an IRS nightmare. IRS liens have jumped from 168,000 filed in 1999 to a whopping 1.1 million filed last year.

The Changes

According to the IRS, new changes may decrease the number of liens and lessen the negative impact on taxpayers. The changes include:
  • Significantly increasing the general threshold for liens from $5,000 in unpaid taxes to $10,000.
  • Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.
  • Withdrawing liens, in most cases, when a taxpayer enters into a Direct Debit Installment Agreement.
  • Creating easier access to those payment agreements for more struggling small businesses.
  • Expanding a streamlined "Offer in Compromise" program to help more taxpayers settle their tax debts.
"These steps are in the best interest of both taxpayers and the tax system," said IRS Commissioner Doug Shulman in a statement Thursday. "People will have a better chance to stay current on their taxes and keep their financial house in order. We all benefit if that happens."

Avoiding a Lien

But don't relax too soon. While the IRS touts the policy changes as a way to help debt-deluged taxpayers get back on their feet, taxpayer advocates say the only way to get real relief from an IRS lien is to avoid having one filed against you in the first place.

For one thing, although the IRS has eased the rules under which it will now file a lien, that doesn't mean it will relax the aggressive attempts to collect on its debts. In fact, the relaxed rules mean the IRS is likely to be less sympathetic to those who do not quickly settle their debt or enter into an agreement to do so.

The new policy will no doubt allow the IRS to concentrate on placing liens on taxpayers with larger debts as opposed to pursuing thousands of time-consuming enforcement actions against individuals who owe small amounts. The new changes give taxpayers a few more opportunities to stay away from the most devastating IRS enforcement actions.

Still, it helps to be prepared. "If you haven't filed in a while, and you are not prepared to pay back taxes in full when you file, it is generally a good idea to have a representative to help you navigate through the process," says Patrick Cox, CEO of tax advisory firm, TaxMasters (TAXS). "If you have two or three years of returns, you probably want to work with someone who has expertise in this area."

Coping with a Lien

In case you are hit with an IRS enforcement action, Cox recommends having a tax representation firm contact the IRS on your behalf to find out why the action is being sought, determine your financial capacity to reach a settlement, determine your options and then advise you on what your best options might be.

For example, Cox said many people don't know that the IRS can't take actions that prevent you from paying your mortgage. Tax professionals at firms like TaxMasters or J.K. Harris & Co. are aware of those rules and can help make sure that you enter into an agreement that allows you to pay both the IRS and your bills.

"When the IRS calls on you and you don't have a representative, they take the position that you know as much about taxes as they do," Cox says. "They assume that you know all of your options and they assume that whatever you agree to, you are doing so because you want to."

Consumers can find all the information they need to prepare for and respond to an IRS lien on the IRS website. However, the information is not easy to decipher and it may take days of study to truly understand your rights and determine all of your best options.

"If you don't know to ask for something, you are probably not going to be told that there is an option available," Cox says.

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]]>federal taxeshousehold financesinternal revenue serviceirslienlien rulesliensnew lien rulesnew tax lien policynew tax lien rulespersonal financetaxtax evasiontax lientaxesunpaid taxesMatthew ScottTue, 01 Mar 2011 21:30:00 ESTThis Gift-Tax Change Is a Huge Gift -- If You're Wealthy Enoughhttp://www.dailyfinance.com/2011/02/25/temporary-gift-tax-change-could-save-the-wealthy-68-billion/http://www.dailyfinance.com/2011/02/25/temporary-gift-tax-change-could-save-the-wealthy-68-billion/http://www.dailyfinance.com/2011/02/25/temporary-gift-tax-change-could-save-the-wealthy-68-billion/#commentsFiled under:

One of the biggest intergenerational transfers of wealth in U.S. history could potentially take place over the next two years as an expansion of the gift-tax exemption creates a short-term opportunity for the wealthy to transfer assets now and avoid estate taxes later.

For 2011 and 2012 only, the gift-tax exemption increases from $1 million to $5 million, allowing individuals to transfer five times more assets to relatives without penalty. It's estimated that the federal government could lose as much as $68 billion in estate and gift taxes as the wealthy rush to capitalize on this temporary change in the tax code.

The new law amounts to another tax cut that most Americans won't be able to take advantage of. However, to the extent that wealthy people transfer assets to relatives who aren't so wealthy, it could have a positive affect.

Kevin Sanderford, principal of Colorado West Investments in Montrose, Colo., says older individuals with estates valued at more than $1 million and couples with estates valued above $2 million should consider taking advantage of this change. He's advising his high net-worth clients to begin executing asset transfers and business succession plans that previously had much longer time horizons.

The benefits include being able to transfer a greater amount of assets tax-free before you die and saving relatives millions of dollars in estate taxes before the law reverts back in 2013. In 2013, the gift tax goes back to the $1 million exemption, and the estate tax rate jumps from 35% back to the 55% rate that was in place prior to the Bush tax cuts. That is, unless new tax cut legislation is passed. (For more about what else is new in the tax code this year, check out WalletPop's Tax page.)


"This allows people to give away more money and assets to kids and keep things in the family," says Sanderford. "We are a talking about intergenerational wealth transfers, and the opportunity exists now. I don't think the opportunity will exist in the future"

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With the new change in the gift tax, individuals could give away $5 million in 2011 or 2012 and not have to worry about paying estate taxes later. People can give away real estate, jewelry, family heirlooms, cash, stocks, bonds and even businesses.

"Some of my clients have businesses, and if their kids have to come up with $3 million or more to pay taxes, where does that money come from?" Sanderford asks. "Avoiding taxes makes it easier for that business to go from one generation to the next."

To get the maximum benefit of the asset transfer, Sanderford suggests gifting assets that will appreciate the fastest. For example if you are considering gifting either timber land or a condo in New York, he says gift the condo.

"Sit down with a CPA and tax attorney and do some planning," he says. "This is a huge opportunity with a two-year window."

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]]>estate taxfeaturedvideogift tax exemptiongiftsinheritanceinheritance taxmillionairestax loopholestaxeswealthiest 1 percentMatthew ScottFri, 25 Feb 2011 15:00:00 ESTAs Cotton Soars, How Should Investors Stitch It Into Their Portfolios?http://www.dailyfinance.com/2011/02/22/how-to-invest-in-cotton-as-prices-soar/http://www.dailyfinance.com/2011/02/22/how-to-invest-in-cotton-as-prices-soar/http://www.dailyfinance.com/2011/02/22/how-to-invest-in-cotton-as-prices-soar/#commentsFiled under: , , ,

Investors are scrambling to stuff cotton into their portfolios as the price of the versatile commodity continues to soar. Cotton is up more than 171% since this time last year, hitting a 150-year high of $1.90 a pound on Feb. 11 and breaking through the $2-a-pound mark for the first time ever on Thursday. The price of cotton hasn't been this high since the Civil War, when it sold for $1.89 per pound (not adjusted for inflation).

Analysts now fear that $2 cotton might look like a bargain soon, as demand shows no sign of easing, and last year's stockpiles have been quickly depleted since October.

India is expected to fall far below its projected output this year due to export restrictions, which continue to tighten supply. Major floods in Pakistan and Australia devastated cotton crops in those nations last year, and it will likely take several months before their output ramps up enough to begin stabilizing prices. In the meantime, apparel exports from China surged 34% in January, and global demand for clothing from emerging markets continues to grow rapidly. If these trends continue, cotton prices are sure to keep rising.

Converting More Land to Cotton

On Thursday, cotton for May delivery rose 3.6% to a record $2.0193 on the ICE Futures exchange in New York, and cotton for March delivery jumped to a record $2.0402. The prospect of paying higher prices for cotton and other raw materials has prompted retailers to announce clothing price hikes of 10% or more, and it could get worse. There's no guarantee that the current crop will be enough to meet projected demand, and growers have only just begun to expand the number of acres devoted to cotton.

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"Although the type of weather-related problems crops suffered last year are impossible to predict and are unlikely to reoccur in exactly the same manner, the depletion of available stocks has put a premium on the ability of new plantings to yield ever-increasing amounts," says Robert Hyman, portfolio manager at Jefferies Asset Management. "Higher prices will undoubtedly induce more land to be converted to producing cotton. Plantings are expected to be up 15% in the U.S. Demand remains heavy and growing."

Hyman says corn and other commodities will likely experience similar price hikes because of weather-related supply problems from last year. Inability to judge the quantity of cotton and other commodities coming into the market may lead to large price swings as the year progresses. If growers overplant and crops are plentiful, prices could drop dramatically. But if weather destroys a significant fraction of crops for a second year in a row, prices could spike for some time if demand remains high.

Commodity investors are now trying to decide how much rally is left in cotton after the past year's dramatic rise. All indications are that demand is still increasing, and some believe cotton prices might even double again before beginning to decline.

Cotton Combinations Are the Way to Go

However, Hyman cautions individual investors from taking concentrated positions in specific commodities because wild price swings may result despite the possibility that prices will keep appreciating generally. "Even if you have the correct directional view, a concentrated futures position may produce a loss because of an intermediate adverse turn of prices," he warns. "Markets don't just move in one direction."

Hyman recommends combining investments in commodity futures, commodity equities and even physical ETFs to provide broad exposure to commodity markets for the long term. The iPath Dow Jones-UBS Cotton Subindex Total Return ETN (BAL), which tracks cotton, was up some 18% in January. While no mutual funds target cotton specifically, some exchange-traded funds do provide exposure to a variety of commodities. Among those are the PowerShares DB Commodity Index ETF (DBC), the iPath DJ-UBS Commodity Index Total Return ETN (DJP) and the iShares S&P GSCI Commodity Indexed Trust (GSG).


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]]>australiaaustralia floodsclothingclothing pricescommoditiescommodity ETFscommodity pricescottoncotton pricesegyptexport restrictions on cottonexportsfloodingfuturesICE FuturesindiainvestingpakistanretailretailersMatthew ScottTue, 22 Feb 2011 09:15:00 ESTTax Tips for the Accidental Landlordhttp://www.dailyfinance.com/2011/02/21/tax-tips-for-the-accidental-landlord/http://www.dailyfinance.com/2011/02/21/tax-tips-for-the-accidental-landlord/http://www.dailyfinance.com/2011/02/21/tax-tips-for-the-accidental-landlord/#commentsFiled under: , ,

As the U.S. housing market has continued to struggle with plummeting property values, more homeowners who originally intended to sell their homes are deciding to rent them out instead. Still others have decided to rent out a portion of the home they currently live in as a means of generating cash to cover some of the escalating energy and maintenance costs that make it harder to meet mortgage payments.

Whether homeowners turn to renting by choice or are forced into it due to unforeseen circumstances, becoming a landlord has tax advantages they need to be aware of. Becoming an "accidental landlord" carries major responsibilities, but also significant rewards.

Account for Rental Income
The Internal Revenue Service rules for reporting rental income apply to second homes, vacation homes and even cover renting a room within your primary residence. If you rent any space for 14 days or less during the year, the IRS gives you a pass, and you don't have to report it. But rent for 15 days or more, and you must report the added income on the Schedule E: Reporting Rental Income and Loss form. Accounting for rental income is easy because you can keep copies of the deposited rent checks from your tenants.

Track Expenses for Deductions
Bob Meighan, vice president of TurboTax, says once you know that you'll have rental income to report, you must begin keeping detailed records of all expenses related to the upkeep of that property. Whether you are renting an entire residence or a room within your personal home, you'll need to track all expenses related to making that space available for rental because they are all potentially deductible.

Meighan says mortgage payments for investment property, property taxes, energy costs, landscaping fees, clean up and fix-up expenses, advertising costs to rent the space and insurance costs are all potential deductions.

"You can even track your mileage if you have to run over to the rental property on a regular basis," he says.

Keep in mind that if you're renting out a room, you can deduct only a portion of the total expenses of the property. For example, if the room you 're renting covers 400 square feet and the total living area of the home is 2,000 square feet, you can deduct one-fifth of the total cost of painting the entire home as a business expense. You could also deduct one-fifth of the insurance, energy and other costs keeping in proportion with the rental space.

Take Depreciation on Eligible Property
Depreciation is an annual allowance for the wear and tear on rental property. Landlords may deduct the depreciation expense for their residence and other items purchased for the upkeep or renting of the property (this can include furniture and appliances used by or for tenants). Meighan recommends using tax software like TurboTax, which can make the calculations for you, or he says seek help from a tax professional that has experience with clients who hold real estate.

"At www.IRS.gov, there are a lot of good publications to help people navigate this somewhat complex area," he adds.

When you take depreciation, it's based on the price you paid for the property, not the current market value. This helps those people who have seen their property values erode over the last few years due to the financial crisis. For example, if you purchased your home for $300,000 and it now appraises for $175,000, the depreciation deduction is based on $300,000, not the current market value. It should be noted that the depreciation expense is also made in proportion to the space being rented -- if you are renting a room, only the portion used for rental can receive a depreciation deduction.

Other Pros and Cons
Renee Collins, president of RKC Tax and Financial Services in Chicago, reminds new landlords that it's important that they receive every deduction that's due them, so they should avoid doing anything that will eliminate deductions. Once they've declared their property for business use and begun collecting rents, it can't arbitrarily be reverted back to personal use without penalty.

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"If for any reason the property should turn back into personal use in the same year that you converted it to investment property, people need to know that they then can't take the depreciation deduction," says Collins.

Property owners should also know that in most cases, due to expenses and upkeep, renting a property is going to produce a loss. However, Meighan says this can be used as an advantage because, "at least a loss will help you offset other income you may have, so your tax liability goes down."

Decreasing your tax liability should lead to an increase in the size of your tax refund. But it can also increase something not so desirable.

"Those who have a business rental property have a higher chance of being audited," Meighan warns. But if you keep excellent records, becoming an accidental landlord is worth the risk.

Also See: Smart Upgrades to Consider | How to Become a Great Tenant

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]]>depreciationenergy costsexpensesinsuranceinterest ratesirslandlordlandscapingmortgage interest deductionprimary residenceproperty taxesrental propertytax breaksTax refundtaxestenantsturbotaxupkeepwrite offMatthew ScottMon, 21 Feb 2011 09:00:00 ESTWant to Become a Saver? Check These 10 Best Online Resourceshttp://www.dailyfinance.com/2011/02/17/10-best-online-resources-for-savers/http://www.dailyfinance.com/2011/02/17/10-best-online-resources-for-savers/http://www.dailyfinance.com/2011/02/17/10-best-online-resources-for-savers/#commentsFiled under: , , ,

People are always telling me they don't want to invest because they're not good at handling money or because learning about the financial world seems too hard. Well, the Alliance for Investor Education (AIE) is doing its part to help people get past those kind of problems: As part of its America Saves Week, it has released a list of what it considers the top 10 online resources to help consumers build up their savings.

So, if you're trying to become a saver, you have no more excuses. In the Building Wealth: Strategies and Best Resources to Reach Your Financial Goals Through Saving section on the AIE website, consumers will find the following list of saver resources:

  1. Saving Smart for Military Families - FINRA Foundation/SaveandInvest.org.
  2. Mission Retirement - Employee Benefit Research Institute.
  3. What's Behind Your Financial Decisions? LifeValues Quiz - National Endowment for Financial Education/SmartAboutMoney.org.
  4. Building Capital: Chapter 1 of The Forbes/CFA Institute Investments Course - CFA Institute.
  5. Target Date Retirement Funds - Securities and Exchange Commission.
  6. Retirement Plan and IRA Limits for 2011 - 360 Degrees of Financial Literacy/American Institute of Certified Public Accountants.
  7. The ABCs of Saving - Council for Economic Education.
  8. Personal Finance for Military Families - Investor Protection Trust/Investor Protection Institute
  9. Savings Resources for Consumers - Board of Governors of the Federal Reserve System/The Federal Reserve System.
  10. Consumer Guide for Financial Self-Defense - Certified Financial Planner Board of Standards.

AIE is an organization of the 19 leading U.S. financial-related foundations, nonprofit organizations, associations and governmental agencies that focus on investor education.

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]]>Alliance for Investor EducationColumnsCouncil for Economic EducationEmployee Benefit Research Institutefinancial planningFINRAInvesting adviceinvestorNational Endowment for Financial Educationonlinepersonal financeresourcesretirement planningretirement savingsSaversSavingSECSecurities and Exchange CommissionSmartAboutMoney.orgtipsMatthew ScottThu, 17 Feb 2011 11:30:00 ESTTime for Baby Boomers to Retire? Don't Count on Ithttp://www.dailyfinance.com/2011/02/17/time-for-baby-boomers-to-retire-dont-count-on-it/http://www.dailyfinance.com/2011/02/17/time-for-baby-boomers-to-retire-dont-count-on-it/http://www.dailyfinance.com/2011/02/17/time-for-baby-boomers-to-retire-dont-count-on-it/#commentsFiled under: , ,

This year, the first members of the baby boomer generation will come of age for retirement. But as this milestone passes, a recent survey suggests many feel they will have to work at least four years longer than they originally planned, due to the recent economic downturn. It appears the Great Recession may have tarnished the boomer's golden years forever.

Baby boomers, born between 1946 and 1964, number 77 million and represent about 37% of the nation's total population aged 16 or older. According to an American Institute of Certified Public Accountants (AICPA) survey of CPA financial planners, 79% said they had at least one boomer client who has delayed retirement because of the economy. When asked how many extra years those boomer clients expected to work, the CPAs said 32.3% responded that they needed 1 to 3 years, 39.3% said 4 to 6 years, 9.8% said 7 to 10 years, and 3.7% said more than 10 years.

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This grim view of retirement lingers -- despite the fact that many people are feeling more confident about the financial markets and the rebounding U.S. economy. What may be even more depressing, however, is that the people who have the financial assets to make them relatively well-prepared for retirement still feel that they will have to work additional years into retirement. The CPAs surveyed have clients who typically have between $500,000 and $5 million in assets. So if those folks feel they will have to work more years before retiring, it's hard to fathom what people without such nest eggs may be facing.

"Boomers have been scarred by the economic turmoil of the past few years and face complex challenges going forward," said Clark M. Blackman II, chair of the AICPA's Personal Financial Planning Executive Committee in a statement announcing the survey results. "While more optimistic about the markets, many Boomers remain uncertain about the U.S. economy and their own situations as they contend with job loss - their own and their children's - lower home values and rising education costs."

The one thing boomers seem to be certain about is that they'll need to get a little more silver if they hope to enjoy their golden years.

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]]>BabyBoomerscpacpasfinancial planningretirementworkMatthew ScottThu, 17 Feb 2011 10:00:00 ESTConstruction: So Battered It's Looking Forward to a Year of Flat Growthhttp://www.dailyfinance.com/2011/02/10/construction-so-battered-its-looking-forward-to-a-year-of-flat/http://www.dailyfinance.com/2011/02/10/construction-so-battered-its-looking-forward-to-a-year-of-flat/http://www.dailyfinance.com/2011/02/10/construction-so-battered-its-looking-forward-to-a-year-of-flat/#commentsFiled under: , , ,

Architects saw a slight uptick in spending on building design and engineering services in 2010, and industry observers say that could be an indication that construction spending will see a corresponding increase in 2011. For two closely connected industries that have been in decline since 2006, recovering to a flat growth pattern would actually be an encouraging sign that the economy may indeed be turning the corner.

Billings and inquiries for private architectural and engineering services rose 0.4% in 2010. Scant, yes. But the revival of any sales growth, however modest, is welcome. After posting an increase of 12.11% in 2006, sales lost upward momentum as the housing crisis gripped the country. Architectural sales increased only 7.13% in 2007 and were up 4.07% in 2008 before losing 7.87% in a dismal 2009.

"If there are rising inquiries for proposed [architectural] projects, that means there are new commercial spaces that are going to be constructed," says Sageworks senior financial analyst Michael Lubansky.

Looks Like Relief

Lubansky says architectural billings and construction spending correlate with one another. When businesses have the confidence to design more buildings, that generally means they anticipate having money to spend building them. As a result, "In 2011, the decline in construction spending should be less or flat," Lubansky says.

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That would be a relief for the construction industry, which has seen an even steeper decline in spending than architectural billings have since 2006. After posting an increase of 13.37% in 2006, nonresidential construction sales began to slide, rising only 6.31% in 2007 and 3.43% in 2008 before dipping into negative territory, losing a whopping 10.45% in 2009 and 13.80% in 2010.

Patrick Newport, U.S. economist for IHS Global, is also expecting construction spending to flatten out in 2011, an improvement over its performance in 2010. However, he says some areas will fare better than others, so although the overall numbers will look better, parts of the industry may still experience pain.

For 2010, Newport says, total construction declined 10.4%. Broken into segments, nonresidential construction fell 23.5%, followed by public construction, which was down 2.9% and residential construction, down 1.5%. The bad weather that has gripped the nation during the first quarter of 2011 has delayed all building activities, which may bring down overall spending for the year. The ending of federal stimulus funding for infrastructure projects will also be a drag on overall growth.

However, single- and multi-family home construction is expected to improve, and commercial construction is likely to do better as the economy continues to add jobs. The final result will likely be minimal growth in 2011 -- but that will be far better than another yearly loss.

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]]>architectarchitecturecommercial real estateconstruction spendingeconomyforecastgrowthhousinghousing startsinfrastructureObamaoutlookPredictionsrecessionrecoveryResidential ConstructionstimulusMatthew ScottThu, 10 Feb 2011 15:50:00 ESTGeothermal Energy: Will U.S. Firms Tap Its Hot Potential Worldwide?http://www.dailyfinance.com/2011/02/10/geothermal-energy-us-firms-green-power-growth-world-market-profit/http://www.dailyfinance.com/2011/02/10/geothermal-energy-us-firms-green-power-growth-world-market-profit/http://www.dailyfinance.com/2011/02/10/geothermal-energy-us-firms-green-power-growth-world-market-profit/#commentsFiled under:

The U.S. has an opportunity to expand its leadership in the global market for geothermal power, said industry leaders meeting at the Geothermal Energy Association Finance Forum held in New York on Wednesday. But they warned that the country is in jeopardy of missing the boat by focusing too much on developing geothermal energy projects at home rather than collaborating with other nations to expand the technology's use worldwide.

The president of Iceland and the CEOs of several geothermal energy companies also said a slow permitting process, limited project financing and a lack of skilled personnel to meet the international demand for geothermal services were key challenges the industry must tackle if it's to expand successfully.

Geothermal Energy Association Executive Director Karl Gawell estimated that $2 billion to $3 billion is currently invested in 188 geothermal energy projects in the U.S., with an additional $7 billion of investment expected by 2013. However, that growth is only part of the industry's rapid expansion. Billions of additional dollars are being generated from increased demand for geothermal energy technology, such as drilling rigs, production rigs and other energy production equipment used around the world.

Iceland, which produces 100% of its electricity via clean energy, and the U.S., which is currently the world's top producer of geothermal power, have advantages in positioning themselves to benefit from the coming growth. Their success with the new technology make them best able to assist other countries in developing their capacity to produce geothermal energy by providing technology, equipment and consulting services worth billions.

"There is indeed already a race for access to experts, engineering companies and those with technical know-how," said Icelandic President Olafur Ragnar Grimsson during the forum. "It is of utmost importance for the U.S. to be in the forefront of that race, to maintain a position of leadership -- not just for the benefit of the American economy but also in order to demonstrate excellence in a century which will see clean energy as a key to a successful global future."

Geothermal Energy Generation Will Double By 2015

The U.S. is expected to double or triple its domestic use of geothermal energy in the next few years, but leaders at the meeting said the real opportunity is in capturing more of the global market. Leaders at the forum said the U.S. should collaborate more with other nations on developing and building geothermal energy projects, expanding geothermal capacity in other countries, training foreign geothermal professionals and expanding exporting opportunities.

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"There is too much discussion about clean-energy opportunities in the U.S. and not enough on energy opportunities internationally," said Árni Magnússon, executive director of Íslandsbanki's sustainable energy team. "The U.S. needs to link its overall global competitiveness to the use of geothermal."

Geothermal energy projects generally involve drilling deep wells and pumping hot water or steam to the surface to produce electricity. However, other business uses for geothermal energy include home heating, greenhouse agriculture projects, snow melting services and tourism business opportunities. The U.S. earns its No. 1 ranking in geothermal power generation by producing about 3,100 megawatts of power capacity. That's followed by the Philippines (1,970 MW), Indonesia (1,197 MW) and Mexico (958 MW). Every 1,000 megawatts of energy produces about enough electricity to supply 1 million people.

The World Geothermal Congress estimates that the world's overall geothermal power capacity is 10,700 MW. Currently, 24 countries are generating energy from geothermal resources, and another 11 are developing the capacity to do so. Existing projects suggest that world geothermal energy capacity will nearly double by 2015, demonstrating the lucrative opportunities available in this rapidly expanding market.

Obstacles to Growth

Dita Bronicki, CEO of Ormat Technologies (ORA) said the biggest obstacle to geothermal expansion is the permitting process, which many say adds years to the time from project conception to energy production. She claimed that the permit approval processes for oil and gas companies were much easier than the process for geothermal energy.

"It can take two to four years to get projects approved," said Bronicki, noting that this causes most geothermal projects to take seven years to come to fruition.

Gawell pointed to another bottleneck for geothermal projects: a lack of skilled professionals available to undertake them. "There is a fear that demand for U.S. and Icelandic companies to work on projects around the world is greater than they are able to meet right now," he said.

Will Investors Be Patient Enough?

The capital-intensive nature of developing geothermal energy also poses challenges. A great deal of the money pouring into the industry has come from tax incentives and stimulus funding from President Obama's American Recovery and Reinvestment Act. With stimulus funding winding down and federal tax credits expiring at the end of 2013, more financing will have to come from private sources, and there's no telling what the risk appetite for projects that take seven years to deliver will be like.

In the end, investors' willingness to wait patiently for returns will play a key part in determining just how quickly the geothermal energy industry expands.


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]]>drillingelectricityEnergygeothermal energyGeothermal Energy Associationgreen energyhot waterIcelandIslandsbankimegawattspowerprofitprofitabilitysteamSustainable energyunited statesMatthew ScottThu, 10 Feb 2011 09:30:00 ESTWinter Winners: Six Industries That Could Reap a Blizzard of Profitshttp://www.dailyfinance.com/2011/02/07/winter-winners-six-industries-that-could-reap-a-blizzard-of-pro/http://www.dailyfinance.com/2011/02/07/winter-winners-six-industries-that-could-reap-a-blizzard-of-pro/http://www.dailyfinance.com/2011/02/07/winter-winners-six-industries-that-could-reap-a-blizzard-of-pro/#commentsFiled under: , , , , ,

SnowmobileThis winter's series of colossal snow storms have piled up millions of dollars in losses for states, municipalities and businesses. But some industries are reaping an avalanche of added revenue generated from the demand winter weather has created. Expect stock values of big publicly held players in these industries to get a short-term boost when they report earnings for the first three months of 2011.

According to IHS Global Insight, the states of New York ($700 million per day), Illinois ($400 million), Pennsylvania ($370 million), Ohio ($300 million) and New Jersey ($289 million) have suffered the biggest financial wallop from the recent Groundhog Day storm. Perhaps the industry that has lost the most money from this winter's onslaught is the airlines, which have been forced to cancel thousands of flights each time a storm rolls across the nation.

But one industry's blizzard is another industry's windfall. Beyond the obvious bad-weather beneficiaries, such as the oil and energy-related industries, IBISWorld senior industry analyst Toon Van Beeck sees six categories benefiting most from this year's snows, which have affected all 50 states to one degree or another.

Phosphate and other mineral mining: Got salt? Many states and municipalities are close to running out, with most of February and March still to come. Rock-salt mining or quarrying accounts for about 6% of the industry, which surely increased this year with the Midwest and Northeast suffering through multiple severe storms. The top three North American salt producers have been Rohm & Haas/Morton Salt and Cargill, which are privately run, and Compass Mineral Intl. (CMP). Compass Mineral, which started January at about $88 a share, is up 6.6% over the last month and closed at $93.81 on Friday, Feb. 4.

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Landscaping services: About 5% of this industry is related to snow and ice removal, but Van Beeck adds that "Lawn and garden care businesses will likely see increased demand once the snow melts as the excessive amounts of snow will have caused substantial damage to greenery that will be in need of repair." Brickman Group, a private company, is possibly the biggest beneficiary in this sector because it has a strong presence in snow and ice management.

Home improvement stores: Home Depot (HD) and Lowes (LOW) will likely benefit from consumers purchasing additional shovels, snow blowers, snow-plow equipment, heaters and salt. "Consumers tend to stock up on these key items in preparation of coming storm systems, and these key retailers are major suppliers to the public," says Van Beeck.

Home Depot shares, which closed at $36.80 on Friday, are up 6.1% over the last month. Lowes is up 0.61% over the last month, closing at $24.71 on Friday.

Online retailers: When snow and bad weather keep consumers from going outside to shop, they shop online. Expect sales on Amazon (AMZN), Overstock (OSTK) and Netflix (NFLX) to move higher in weeks to come, especially if the blizzards persist. "Cabin fever can be cured with some type of retail therapy," says Van Beeck.

Over the last month, shares of Amazon, which ended Friday at $175.93, are down 4.9%. Overstock, which closed at $14.93 on Friday, has lost 9.3%. But Netflix has surged 21.3% in the last month, closing at $220.07 on Friday.

Ski and snowboard resorts: This is a $2.6 billion industry in the U.S., and with all the snow, this season could be as strong as 2007-08 when a record 60 million skiers flocked to U.S. ski resorts. Private companies such as Intrawest, Booth Creek Ski Holdings, Boyne USA Resorts and Aspen Ski Co. will thrive in this brutal winter weather.

Publicly traded Vail Resorts (MTN) should also see higher profits once the season is done. Vail, which traded at $49.01 at the close on Friday, is down 5.68% over the last month.

All-terrain vehicles, golf carts and snowmobile manufacturing: In this $8.15 billion industry, snowmobiles and parts generate 15.3% of revenues. Demand for snowmobiles may increase this year due to larger crowds at ski resorts, but the monster storms have also led to increased snowmobile use for search and rescue at ski resorts and elsewhere. Honda (HMC), Polaris Industries (PII), Deere (DE) and Arctic Cat (ACAT) are the major players likely to benefit.

Honda shares, trading at $43.21 at the close on Friday, are up 9.1% over the last month, while shares of Polaris, which closed at $77.98 on Friday, have risen 4.1% in the last month. Deere is up 12.2% over the last month and closed Friday at $93.21. Arctic Cat ended Friday at $16.81, up a healthy 18.3% over the last month.

Don't let the freezing temps, snow and ice keep you from moving money into these potentially hot areas.

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]]>blizzardCaterpillarDeere & CoHome Depothome improvementindustrieslandscapingrock saltski resortssnow removalsnow shovelsnowmobileSnowStormstockswinter weatherMatthew ScottMon, 07 Feb 2011 11:00:00 ESTSteelers vs. Packers Super Bowl Match-Up Is Good News for Stock Markethttp://www.dailyfinance.com/2011/02/04/steelers-packers-super-bowl-stock-market-indicator-bull-forecast/http://www.dailyfinance.com/2011/02/04/steelers-packers-super-bowl-stock-market-indicator-bull-forecast/http://www.dailyfinance.com/2011/02/04/steelers-packers-super-bowl-stock-market-indicator-bull-forecast/#commentsFiled under: , ,

Steelers vs. Packers Super Bowl Is Good News for Stock MarketFor investors who are hard-core football fans, checking out what the so-called "Super Bowl indicator" says about future stock market performance can add a bit of extra entertainment value to the game. While no one advocates aligning your investment strategy with an analysis of market returns that's based on Super Bowl outcomes, the exercise can add to fans' sense of pride. After all, what could be better than your team taking home the coveted Lombardi Trophy, and getting a bit of credit for a stock market rally, too? (But remember, these stats were generated in fun.)

This year, the match-up between the Pittsburgh Steelers and Green Bay Packers forecasts a strong bull market in 2011 no matter which team wins. However, a high scoring victory by the Pittsburgh Steelers may produce the highest returns of all. According to financial data and analytics firm Capital IQ, the average annual return for the S&P 500 index after a Steelers victory has been 26%. The Steelers have won the Super Bowl a record six times, and even when they lost Super Bowl XXX in 1996, the market returned 23%.

Capital IQ says the Packers are equally lucky for the markets. The average return after a Packers victory has been 23%, and even during the two years the Packers played in the Super Bowl and lost, the average market return was 29%. Those calculations suggest that whichever team wins the markets for 2011 are likely to be in the 23% range.

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Based on the numbers, investors should also hope for a high-scoring contest. Market returns have tended to trend higher as the total number of points scored during the game rises. Analysts from Schaeffer's Investment Research split the 44 Super Bowl contests into four groups of 11 each and charted the average return when the total points scored fell within a particular range. The S&P 500 Index performed best when the total number of points scored in the Super Bowl has ranged between 55 and 75, boasting an average gain of 16.63%. By contrast, market returns averaged 12.57% when the total points scored ranged between 45 and 54; 3.02% when the total points scored ranged between 37 and 45 and -0.71% when the total points scored ranged between 21 and 36.

"Maybe the higher scores put traders in a good mood," joked quantitative analyst Rocky White, who worked on Schaffer's research with Elizabeth Harrow.

Although a high-scoring offensive battle won by the Pittsburgh Steelers seems like the scenario that would produce the best market outcome, no matter which team you root for on Super Bowl Sunday, all investors will be rooting for higher market returns.

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]]>2011 stocksCapital IQcorrelationfootballgreen bay packersInvestingmarket forecastmarket outlookNFLpittsburgh steelersSchaeffers Investment Researchscorestock marketsuper bowlSuper Bowl IndicatorMatthew ScottFri, 04 Feb 2011 14:00:00 ESTNine Valentine's Day Stocks to Sweeten Your Portfoliohttp://www.dailyfinance.com/2011/01/30/nine-valentines-day-stocks-to-sweeten-your-portfolio/http://www.dailyfinance.com/2011/01/30/nine-valentines-day-stocks-to-sweeten-your-portfolio/http://www.dailyfinance.com/2011/01/30/nine-valentines-day-stocks-to-sweeten-your-portfolio/#commentsFiled under: , , , ,

Nine Valentine's Day Stock Picks to Sweeten Your Portfolio Investors could be getting an extra sweet Valentine's Day gift this year: A gift basket of stocks primed to prosper, thanks to the projected $18.6 billion in sales the holiday is expected to generate. That would represent a 5.8% jump over last year.

The boost in Valentine's Day sales is part of the larger positive economic trend developing in the first quarter of 2011. IBISWorld retail industry analyst Nikoleta Panteva says a number of retail companies are likely to benefit from the recent surge in consumer spending.

"People are just ready to spend because consumer confidence is up," Panteva says, noting that luxury spending is also up and is becoming a strong fuel for retail sales.

For Valentine's Day, IBISWorld projects sales of flowers to increase by 16.8%, jewelry by 11.3%, candy by 5.1%, greeting cards by 4.9%, restaurants by 3.8% and clothing, including lingerie, by 3.4%.

Among the companies that are poised to benefit most are:

American Greetings (AM): In 2010, itseasonal cards category grew by 5%, despite an overall revenue decline. This year, IBISWorld expects volume sales of its value cards segment to improve revenues as more school-age children exchange holiday cards. The stock, which closed at $21.90 per share Friday, climbed 4.27% in 2010.

Hershey (HSY): Hershey's well-known brand name and widespread product availability, along with its affordable prices, make the company a surefire winner this Valentine's Day. Sales of its Kisses and Hugs holiday-themed products will sweeten any portfolio. Shares in the king of U.S. confectioners closed at $47.04 on Friday and grew a healthy 35.32% in 2010.

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Zale (ZLC ): Although it has declined over much of the past five years, Zale's 2010 holiday sales were up 8%. IBISWorld expects a turnaround in middle- to upper-middle-class spending habits during Valentine's Day to help propel the company's revenues. "The middle-class demographic is getting back in the market for higher value items," Panteva says. "They are not in the highest income bracket, but they will splurge once in a while on something of high quality." Holders of Zale's stock, which closed at $4.40 on Friday, hope its 2011 performance equals its 56.62% gain in 2010.

Signet Group (SIG): Signet, which owns Kay Jewelers and Jared, has lowered its prices even more to attract budget-conscious consumers. The jeweler saw holiday sales grow by 8.1% in 2010, and IBISWorld expects its strategy to produce even better performance in 2011. The stock, which closed at $41.56 on Friday, enjoyed a 62.43% gain in 2010.

Tiffany (TIF): Tiffany is the diamond among the publicly traded jewelry companies, and it's coming off of a great 2010 holiday season where it racked up substantial gains. With luxury spending showing signs of significant growth, IBISWorld expects the iconic brand to continue its recent success. The stock closed at $57.54 on Friday, and enjoyed growth of 47.02% in 2010.

1-800-FLOWERS (FLWS): An expanded product line, including gift baskets of candy, fruit and wine, and its leadership in e-commerce have IBISWorld betting on a turnaround for 1-800-FLOWERS in 2011. Last-minute online purchases are likely to fuel revenues this year, especially since Valentine's Day is on a Monday. The company's stock closed at $2.85 on Friday, after a disappointing 2010 when its price only grew by 1.51%.

Limited Brands (LTD): Coming off of a 14% increase in its third quarter sales, IBISWorld expects Victoria's Secret, Limited's lingerie chain, to post exceptionally strong fourth quarter numbers as well. Led by Victoria's Secret's semi-annual sale which is timed to target Valentine's Day shoppers, the projected boost in holiday volume should lift Limited Brand's stock price. Shares of Limited Brands, which closed at $28.92 on Friday, sauntered to an 83.63% gain in 2010.

Darden Restaurants (DRI): Darden Restaurants, which owns Red Lobster, Olive Garden, LongHorn Steakhouse, Capital Grille and Bahama Breeze, is expected to experience a "sizable bump" this Valentine's Day. Its well-known chains have strong reputations that should benefit from romantic dinner dates tied to the holiday. Darden stock, which served up a 35.67% gain in 2010, closed at $45.18 on Friday.

Brinker International (EAT): Anchored by its Maggiano's Little Italy and Romano's Macaroni Grill chains, Brinker, too, is expected to benefit from dining connected with Valentine's Day. These two restaurant options serve up Italian cuisine "from well-known brand names that are nice and cater to middle-income Americans," says Panteva. Brinker International shares, which closed at $23.50 on Friday, gained 43.5% in 2010.


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]]>American GreetingsBrinker internationalcandyconsumer spendingdardendarden restaurantsflowersHersheyIBISWorldjewelrylimited brandsLonghornLonghorn SteakhouseMaggianos Little Italyolive gardenred lobsterrestaurantsretail salesretail stocksRomanosMacaroniGrillshoppingsignettiffanyTiffany & Covalentines day giftsvalentines day shoppingvalentines day stocksvalentines-dayValentinesDayZalesMatthew ScottSun, 30 Jan 2011 08:00:00 ESTOil Prices Are Likely to Drop Before They Rally Againhttp://www.dailyfinance.com/2011/01/28/oil-prices-drop-rally-egypt-supply/http://www.dailyfinance.com/2011/01/28/oil-prices-drop-rally-egypt-supply/http://www.dailyfinance.com/2011/01/28/oil-prices-drop-rally-egypt-supply/#commentsFiled under: , ,

Oil Prices Likely to Drop Again Before Rally Continues Just as investors were beginning to gain confidence that lower oil prices would add to the momentum propelling the U.S. economy toward better-than-expected growth in 2011, crude prices began rising again on Friday. Despite the shift in direction, however, oil prices are likely to decline again next month before rallying back toward the $100 a barrel level later this year.

Oil futures had fallen about 3.9% this week, closing on Thursday below the $86 a barrel level for the first time since November. However, oil futures jumped more than 4% on Friday, fueled by fears over violent street protests in Egypt. With all of this week's losses erased, analysts are now debating whether oil will continue its trend lower toward the $83 a barrel range as we enter February or resume its climb above $100 a barrel, which many analysts predict will happen by the summer.

Evidence supporting an oil price drop started emerging last week, when OPEC members began hinting that the cartel might increase the supply of oil in the marketplace. This week, analysts at JPMorgan said those comments helped move crude prices lower as investors reacted. Higher prices could choke off demand in the U.S., the largest user of crude oil in the world, which would affect demand globally.

"We take that as a strong indication that the producer group does not want oil prices to rise too high, too quickly," JPMorgan's analysts wrote this week in a report to investors.

"Flight to Safety" Trades

Additionally, there are indications that worldwide oil consumption during the first quarter of 2011 may not be as strong as was predicted. Standard & Poor's downgrade of Japan's long-term sovereign credit rating and Fitch's downgrade of Taiwan's local currency credit rating this week "could signal softness in [oil] demand and could cool off red hot product prices," according to PFGBEST energy industry analyst Phil Flynn.

In addition, fears that China will soon take steps to cool down its red-hot economic growth rate -- which will also affect oil demand -- helped fuel concerns about a short-term oversupply of oil.

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Finally, many speculators decided to take some money off the table while oil prices were on the high side in the wake of the U.S. Energy Information Administration's report that crude oil inventories increased by 4.8 million barrels from the previous week. Flynn says U.S. crude oil inventories are above their upper limit for this time of year, suggesting an oversupply and an imminent price correction.

Even with such strong evidence suggesting a downward move in oil prices is due, oil futures prices jumped more than 4% on Friday as investors used "flight to safety" trades to minimize the uncertainty surrounding the turmoil brewing in Egypt. If Egypt is locked in political unrest for some time and if that unrest spreads to other Arab nations, it would definitely have a negative affect on the global oil supply, driving prices higher.

Next week, oil prices are expected to reflect pressure from an expected drop in demand -- many oil refineries are expected to begin shutting down temporarily as the demand for winter heating oil levels off. U.S. crude oil inventories are also expected to show an increase for the second week in a row. It's not clear whether those factors will deter the oil bulls from pushing oil prices into the mid-$90s.

Since September, oil has rallied from $75 a barrel to that mid-$90 range. Sustaining the rally at those prices may hurt economic growth, as corporations again delay expansion and hiring plans out of fear that their margins will be eroded by escalating oil prices. Given the length of oil's upward trend, Deutsche Bank Global Head of Rates Research Dominic Konstam, says a corrective move lower is likely before oil can move higher.

Says Konstam: "I'm not comfortable that it will keep on rallying."

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]]>Columnscommoditiescrude oildemandeconomic recoveryegyptegypt protestsfuel pricesHosni Mubarakinventoriesoiloil pricesoil supplyOPECopec productionoversupplyMatthew ScottFri, 28 Jan 2011 15:35:00 ESTFrom Deutsche Bank, a More Bullish Scenario for U.S. Growthhttp://www.dailyfinance.com/2011/01/26/economic-growth-2011-better-forecast-deutsche-bank/http://www.dailyfinance.com/2011/01/26/economic-growth-2011-better-forecast-deutsche-bank/http://www.dailyfinance.com/2011/01/26/economic-growth-2011-better-forecast-deutsche-bank/#commentsFiled under: , , , ,

Money under a magnifying glassThe U.S. economy will produce stronger GDP growth than had been expected in 2011 as it bounces back from the Great Recession, analysts from Deutsche Bank (DB) said Tuesday. According to DB Managing Director and Chief Economist Peter Hooper, positive trends developing in consumer spending, employment and the stock market will likely offset negative pressures from the foreclosure crisis, declining home values, the sovereign debt crisis and the effects of escalating oil and commodity prices on consumers. The resulting will be growth higher than the 3% most analysts had previously predicted.

During a press briefing in New York on Tuesday, Hooper said the bank is predicting moderate GDP growth in the 3.5% range for 2011, but he also said growth could rise closer to 6% under the right circumstances. The change from a low-growth to a more moderate-growth recovery is likelier now that consumers have slashed personal debt and adjusted their household spending, which is expected to have a positive affect on corporate balance sheets and the economy overall.

A 23% Rise in Equities?

As household debt has dropped to 10% of consumers' income, they've begun spending more, unleashing pent-up demand for durable goods and other items. That spending is helping corporate earnings trend higher.

Consumers have also poured more money back into equities, boosting stock values and raising the net worth of many individuals. Deutsche Bank Chief U.S. Equity Strategist Binky Chadha is predicting a 23% rise in the stock market for 2011. As consumers continue to benefit from the rally in stocks, they'll stop hording cash.

The savings rate -- which peaked at about 6% last year -- has already been declining for the last six months, coming down closer to 5%, which suggests consumers are feeling more confident about the future. Add those trends to a projected increase in business spending this year and rosier projections about accelerating job growth, and the economic outlook for 2011 becomes even more optimistic.

"Consumers are coming to life," said Hooper. However, he noted, "It is still a subpar recovery, not the normal bounceback that happens when the economy suffers such a major downturn."

What Could Still Go Wrong

Unfortunately, there are plenty of risk factors that continue to cause major drags on the economy. Uncertainty over how the government will handle the federal budget deficit, the sovereign debt crisis in Europe, the ongoing U.S. foreclosure crisis and the possibility that several U.S. states could default on their debts could potentially stymie growth.

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Deutsche Bank Global Head of Rates Research Dominic Konstam also warned that because the largest banks have tightened their lending standards, and countries have begun looking at tightening monetary policies, there's a greater risk that "there may not be enough global liquidity for the global economy to continue growing." If capital markets freeze up again, it could lead to a global economic slowdown that would have a significant impact on U.S. exports, which have been expanding.

Higher commodity and oil prices could also provide a significant drag on the economic recovery this year. If businesses have to pay more for corn, soy beans, oil and other key raw materials, it could lead to higher food and energy prices, shocking consumers into a pullback on spending, which could in turn deal a major blow to the recovery.

Regardless of the negative factors, the overall upside potential for the economy appears greater than the downside, say Deutsche Bank analysts. The economy is on better footing, they assert, inflation is unlikely to be a problem and interest rate hikes from the Fed shouldn't occur until late 2011 at the earliest.


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]]>Binky Chadhabull market forecastbull market outlookcommoditiescommodity pricesconsumer debtconsumer spendingDeutsche BankDominic Konstameconomic growtheconomic recoveryeconomyemploymentfederal debtFederal deficitforeclosure crisisForeclosuresGDPGDP Growthgrowthhiringjobsoiloil pricesoutlookPeter HooperPredictionssovereign debtMatthew ScottWed, 26 Jan 2011 16:00:00 EST20 Metro Areas With the Worst Credit Card Debt Problemshttp://www.dailyfinance.com/2011/01/26/worst-credit-card-debt-problems-cities/http://www.dailyfinance.com/2011/01/26/worst-credit-card-debt-problems-cities/http://www.dailyfinance.com/2011/01/26/worst-credit-card-debt-problems-cities/#commentsFiled under: , , ,

20 Metro Areas With the Worst Credit Card Debt ProblemsAmerican families are still struggling to dig out from under credit card debt, and a new study from credit reporting agency Equifax (EFX) says that households in some metropolitan areas owe as much as 17% of their income to credit card companies.

According to Equifax, many households in parts of Florida, North Carolina, Ohio, Texas, Washington and California are having a particularly difficult time dealing with credit card debt. The company ranked the top 50 metropolitan statistical areas hardest hit by credit card debt, and the majority of the worst performing areas were located in those states.

Consumers located in the metropolitan areas on Equifax's list were more likely to spend a higher percentage of their income on credit card payments than households elsewhere. The percentage of debt owed ranged from a high of 17.26% for the average household in Wilmington, N.C., to a "low" of 12.80% in the Reno/Sparks, Nev., area. The 20 metropolitan statistical areas with the highest percentage of their income owed in credit card debt were:

  1. Wilmington, N.C.: median income $42,392; $7,315 owed in credit card debt (17.26%)
  2. Canton/Massillon, Ohio: median income $40,912; $7,050 owed in credit card debt (17.23%)
  3. Toledo, Ohio: median income $44,349; $7,414 owed in credit card debt (16.72%)
  4. Duluth, Minnn./Wis.: median income $38,392; $6,418 owed in credit card debt (16.72%)
  5. El Paso, Texas: median income $33,126; $5,349 owed in credit card debt (16.15%)
  6. Asheville, N.C.: median income $39,884; $6,431 owed in credit card debt (16.12%)
  7. Pensacola/Ferry Pass/Brent, Fla.: median income $42,106; $6,649 owed in credit card debt (15.79%)
  8. Youngstown/Warren/Boardman, Ohio/Pa.: median income $39,304; $6,142 owed in credit card debt (15.63%)
  9. Fayetteville, N.C.: median income $42,506; $6,519 owed in credit card debt (15.34%)
  10. Winston/Salem, N.C.: median income $42,869; $6,505 owed in credit card debt (15.17%)
  11. Gainesville, Fla.: median income $38,572; $5,817 owed in credit card debt (15.08%)
  12. Spokane, Wash.: median income $42,191; $6,351 owed in credit card debt (15.05%)
  13. Tampa/St. Petersburg/Clearwater, Fla.: median income $42,354; $6,373 owed in credit card debt (15.05%)
  14. Bremerton/Silverdale, Wash.: median income $54,417; $7,916 owed in credit card debt (14.55%)
  15. Hickory/Lenoir/Morganton, N.C.: median income $37,623; $5,416 owed in credit card debt (14.39%)
  16. North Port/Bradenton/Sarasota, Fla.: median income $45,000; $6,429 owed in credit card debt (14.29%)
  17. Cleveland/Elyria/Mentor, Ohio: median income $47,186; $6,729 owed in credit card debt (14.26%)
  18. Greensboro/High Point, N.C.: median income $41,080; $5,771 owed in credit card debt (14.05%)
  19. San Antonio/New Braunfels, Texas: median income $ 44,113; $ 6,167 owed in credit card debt (13.98%)
  20. Knoxville, Tenn.: median income $37,269; $5,178 owed in credit card debt (13.89%)

While total consumer debt, which includes mortgages, auto loans and credit card debt, has declined 8.2% from its peak of $11.5 trillion in 2008, this survey shows that debt issues continue to linger in certain pockets of the country.

"The good news is we're seeing Americans paying off their debts and becoming more fiscally fit," says Dianne Bernez, Equifax's senior vice president for corporate communications. "However, the numbers show that while people's intentions are good, Americans still have a lot of debt to tackle."


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]]>californiacitiesconsumer debtcredit cardsCreditCarddebtequifaxfloridanorth carolinaohiopaying down debtrecessionrevolving debttexaswashingtonMatthew ScottWed, 26 Jan 2011 15:00:00 ESTA Valentine's Day Sales Forecast Retailers Should Lovehttp://www.dailyfinance.com/2011/01/24/a-valentines-day-sales-forecast-that-retailers-should-love/http://www.dailyfinance.com/2011/01/24/a-valentines-day-sales-forecast-that-retailers-should-love/http://www.dailyfinance.com/2011/01/24/a-valentines-day-sales-forecast-that-retailers-should-love/#commentsFiled under: , ,

Valentine's Day sales should thrill the hearts of retailers this year: Industry research firm IBISWorld forecasts spending for the lovers' holiday will top $18.6 billion, a 5.8% jump over 2010. That amounts to about $125 per person who buys a gift for that special someone.

The boost in Valentine's Day spending will cover everything from the traditional candy and flowers to jewelry and romantic getaways. Floral purchases are projected to grow by 16.8%, jewelry by 11.3%, romantic getaways by 5.7% and candy sales by 5.1%. Spending on greeting cards, dining out and clothing and lingerie will also see increases this year.

"Luxury spending is already on the rise, so it will come as no surprise that bracelets, earrings, necklaces and rings will be the go-to gift choice for many Americans," said IBISWorld retail industry analyst Nikoleta Panteva in a statement. "This year, IBISWorld expects jewelry to make up 7.8% of all Valentine's Day sales, making its way back to pre-recessionary levels."

IBISWorld says the jump in sales should benefit the stock prices of jewelry industry players Tiffany (TIF), Zale (ZLC) and Blue Nile (NILE). These companies suffered during the initial stages of the recession starting in 2008, but they experienced significant growth in 2010, which could extend into 2011 if the economic recovery gains strength.

According to Morningstar, Tiffany gained 47.02% in 2010, and Zale was up 56.62%, while Blue Nile was down 9.9% in 2010 after skyrocketing 158.6% in 2009.


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]]>blue nileboyfriendbuyflowersgiftsgirlfriendholidayholiday giftsibisworldjewelrylingerieloversluxuryromanceromantic getawayssalesspendingtiffanyTiffany & Covalentines daywivesZalesMatthew ScottMon, 24 Jan 2011 15:00:00 ESTRetailers' Focus for 2011: More Stores, Better Servicehttp://www.dailyfinance.com/2011/01/20/retailers-2011-expansion-better-customer-service-twitter-ecommerce/http://www.dailyfinance.com/2011/01/20/retailers-2011-expansion-better-customer-service-twitter-ecommerce/http://www.dailyfinance.com/2011/01/20/retailers-2011-expansion-better-customer-service-twitter-ecommerce/#commentsFiled under: , , , ,

Now that economic conditions appear to have stabilized, more retailers are planning store expansions and increased initiatives to monitor and serve their customers as they focus on improving growth in 2011. Two reports released this week show that in addition to keeping costs low, the new top priorities for retailers in the months ahead are increasing their use of online technology and social media.
In its recent report on the retail sector, Standard & Poor's Equity Research forecasts a positive year for the retail industry fueled by a 3% rise in consumer spending.

"Perhaps the biggest catalyst for improving retail sales in 2011 will be the extension of the Bush-era tax cuts and the 2% payroll tax cut for all workers for one year," said Marie Driscoll, group head of the Consumer Discretionary Retail analysts at S&P Equity Research. "We think this 'tax holiday' will have a significant impact on spending, as the median income family earning about $50,000 per year will receive an additional $1,000 in its paychecks and those earning $106,800, the current limit of FICA taxes, and above will take home about $2,100 more this year."

The S&P report projects a 10% increase in online retail sales growth in 2011 as consumers continue to seek convenience and value. The report also suggests retailers will look to meet individual consumer demands through increased customer service and marketing, much of which will be accomplished through the use of computer algorithms that analyze shopping activity. Macy's (M) successful use of its My Macy's selling strategy, which allows stores to stock merchandise based on local demand, was sited as an example of retailer innovations likely to be expanded upon in 2011.

The report also predicts companies will rely more on social media "not only by responding to customer complaints, but also to market products and unveil promotions."

Twitter Is Becoming Ubiquitous

Another recent report by the National Retail Federation's NRF Foundation, and advisory firm KPMG suggests that retailers are so optimistic about 2011 that 41% said that their companies intend to increase domestic store expansions this year, up from 25% in 2010. Additionally, 25% are preparing to expand overseas, up from 21% a year ago.

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The survey of 318 retail executives also revealed that 75% of those polled said improving customer service would be a priority in 2011, up from 56% in 2010, and 74% plan to increase consumer insight and data gathering initiatives in response to significant changes in shopping behaviors. Retailers' use of Twitter also increased last year, jumping to 79% in 2010 from 61% in 2009. An additional 18% said they were planning on integrating Twitter into their e-commerce programs during the next 18 months.

"It's quite obvious retailers are anxious to put the recession behind them and build upon their customer service initiatives, enhance their mobile platforms and even grow their footprint," said Katherine Mance, executive director of the NRF Foundation in a statement. "As we move forward in 2011, retailers will strive to keep costs low, but will also continue to focus on providing positive and unique shopping experiences for their customers."



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]]>customer servicecustomerse-commerceecommerceexpansioninsightKPMGmacysNational Retail FederationNRFonline salesonline shoppingrecessionrecoveryretailretail salesretailerssales growthsocial mediaSP Equity ResearchtwitterWebMatthew ScottThu, 20 Jan 2011 15:43:00 EST