The most likely scenario is that the markets will begin to rise from here -- and that bounce is just beginning to take hold.
VIDEO ON MSN MONEY
These low-risk blue chips are beating the markets by wide margins and delivering income.
After a heinous August and a volatile start to September, low-risk investments are in focus.
But investors should not make the mistake of thinking they have to settle for low-risk, low-return investments. There are a host of high-yield stocks out there with big dividends and stable cash flows that have been enjoying significant share appreciation in 2011.
These investments offer the best of both worlds -- cash-rich blue chips that throw off plump dividends while outperforming the major indexes.
We have issues to work through, but it's wrong to be so gloomy when tech's seasonal strength is about to kick in and China may be ready to stop its economic tightening.
Too gloomy? That's what I am thinking these days when I talk to executives and fund managers and stock traders. Everyone has succumbed to an overwhelming sense that Europe has to bring down the world and that the United States is unmoored and unwilling or unable to lead.
Moreover, no one -- including me -- expects anything from the president tonight. We've been too bashed into believing the guy is anti-business, even if he actually doesn't hate capitalism. In fact, I don't know a soul anymore who doesn't think the president favors a socialized state, a la that of the struggling Europeans.
We're all waiting for the collapse in the euro, which we all know is untenable, to bring down the world.
But what if it doesn't?
The company gets approval to settle a class-action lawsuit by sending gift cards to current and former Netflix users.
But this allegation has suddenly turned into a marketing windfall for Wal-Mart -- and may allow it to steal some of Netflix's customers. Here's how it happened.
A class-action lawsuit was filed alleging that in 2005, Wal-Mart agreed to stop renting DVDs online if Netflix agreed it wouldn't sell physical DVDs. Wal-Mart denied the allegations, but agreed to pay $27.5 million to settle the case.
The company is showing some cracks as it receives criticism for several unpopular new initiatives.
By Jeanine Poggi, TheStreet
The company's string of announcements, including its price hike and the loss of content, has put a sour taste in subscribers' mouths.
But its recent faux pas are out of character for Netflix, which has been a consistent company that has impressed both investors and subscribers alike. The proof is in the stock. Shares of the company have surged more than 50% in the past year, and it now boasts more than 25 million subscribers.
"Netflix only screwed up once in the first seven years I covered them (from 2004 until mid-2011) when they cut prices to compete with Blockbuster," says Wedbush analyst Michael Pachter. "They have now screwed up three times in the last couple of months (price increase, letting Starz get away, and capping streams per household). Maybe they'll right the ship, and maybe they will keep screwing up."
A step backward in the right direction.
By Morgan Housel
Part of Goldman Sachs' (GS) business is advising public companies on the virtues of returning private. Gone are the worries of beating expectations every quarter. Focus can shift to the long term. Dirty laundry isn't aired out for all to see. No disgruntled shareholders. No outside influences. Just business.
It might be time for Goldman to heed that advice itself. It should go private.
That only sounds bold if you forget that Goldman has been a private partnership for 92% of its existence. Founded in 1869, the bank didn't go public until 1999.
These picks offer exposure to the billions of dollars the league rakes in each year.
By Jonas Elmerraji, Stockpickr
Football is really back -- finally. The NFL regular season kicks off on Thursday when the New Orleans Saints meet the Packers at Green Bay. It's been a tumultuous road to the gridiron for the most valuable sports league in the world, with a lockout that threatened to curb football for the 2011 season -- a move that would have had implications beyond disappointing fans. After all, billions of dollars are at stake here.
And there is a way for investors to get exposure to the billions of dollars the NFL brings in each year. It's all about finding publicly traded stocks with hefty income statement exposure to the NFL.
Obviously, these aren't pure plays on football, but each of these names does receive meaningful revenue from the sport:
The rapper seems very interested in taking over Yahoo's business. Would he be any worse than the company's other top picks?
"Im takn over as tha CEO of Yahoo," Snoop wrote on Twitter. "Need sum of that Snoop Dogg content ya digg."
I digg. CEO Snoop (or maybe he would be called CEO Dogg) isn't such a bad idea.
Emerging markets often bottom ahead of developed ones, and if Japanese investors are right, these Brazil ETFs may present some interesting opportunities.
By Tom Aspray, MoneyShow.com
Recent data from Lipper Financial indicates that in the past two years, Japanese investors have invested more than $100 billion in mutual funds tied to the Brazilian economy. The past few months have been quite hard on these investments, as the move out of higher-risk assets has hurt emerging markets.
The currency markets have not helped. The carry trade made the Brazilian real attractive to the Japanese, who could borrow at 0.1% in Japan and get 12.5% in Brazil.
The recent sharp rise in the yen, and fall in the Brazilian real, has dampened this enthusiasm. The prevailing wisdom is that the yen would have to get much stronger to cause significant unwinding of this position.
The recent rate cut in Brazil caught the markets by surprise, as inflation has risen sharply for the past 12 months. It is hoped that the cut will help the Brazilian economy stay strong as concerns grow over a global economic slowdown.
Often, emerging markets will bottom out ahead of developed markets, so I am closely watching the technical action of the Brazilian markets.
A rising greenback, spurred by currency events in Europe, helps knock the wind out of the precious-metals bubble.
Just when everyone had left the U.S. dollar for dead, abandoning the world's reserve currency for alternatives like the Swiss franc and gold bullion, it has risen from the dead. Like Lazarus. Only instead of waiting four days for resurrection, it has taken more than 15 months to perk up again.
The catalyst, as I discussed in a blog post last week, has been weakness in the euro as currency traders anticipate an end to the European Central Bank's rate-hiking campaign at its next policy announcement Thursday. After two rate hikes this year, the expectation is that the ECB will have no choice but to lighten up as bond yields in Greece, Italy and Spain rise on renewed sovereign debt concerns. Also contributing was a move by the Swiss National Bank to peg the franc to the euro to stem a flood of haven inflows into the currency -- an action that has weakened the euro against the dollar.
As a result, dollar-sensitive assets like crude oil, copper and precious metals came under pressure in Tuesday's trading. But while I think crude and copper will rebound along with stock prices as traders discount a re-acceleration of economic growth thanks to soon-to-be-announced stimulus measures, the same can't be said for gold and silver. Here's why.
Gold and dividend funds offer some safety when stock markets are rough.
By Don Dion, TheStreet
It's common for trading to be volatile during short trading weeks, and this week is no different. After a dismal Monday overseas, U.S. investors returned from the Labor Day weekend to find heavy losses.
In recent weeks, I have highlighted a variety of conservative assets investors can turn to for shelter from the economic storms. In the days ahead, many of these securities will offer welcome relief.
It's crucial to note that not all market shields are created equal. Before diving into any position, do your homework.
Things might get turbulent for Google shareholders in late October when Motorola reports its next earnings.
By Eric Jackson, TheStreet
It replaced a trusted hand -- CEO Eric Schmidt, who arguably is still young (56), with years left before he's ready to be put out to pasture -- with a young and unproven co-founder in Larry Page.
I warned earlier this year that Google stock shouldn't be owned for the next six months when the company made the announcement in January that Page was taking over for Schmidt. That call was correct, as Google's stock dropped from $626 on Jan. 20 when the succession was announced to $484 on June 20 -- a decline of 23%.
It's appropriate now to take a step back and see where Google really is in its own development and as a stock. In late June, Google bottomed out at around $474. After that, the stock jumped on its Q2 earnings and expectations.
The bank is in a constant state of patching its holes.
August certainly was an interesting month for the stock market. The Dow suffered about a 5% decline and the S&P lost almost 7%, but that's not the whole story. A chart of the major indexes looks like a big W, thanks to white-knuckle volatility, with the Dow Jones Industrial Average having moved in a roughly 1,500-point range. Some traders made a mint on well-timed buys.
One of the biggest movers in August was Bank of America (BAC). The financial stock shed about 18.5% last month to continue its ugly streak in 2011. However, shares did leap from $6 to $8 in just two trading days, rewarding those savvy few who bought the bottom.
Amid this volatility, the billion-dollar question for B of A investors should be whether the stock has the potential for another big move like that. Unfortunately, the direction of this stock seems to be down, down, down.
When the current decline is over, shop from this list of stocks that hit 52-week highs last week.
If you want to know what to buy and when to buy it, I am excerpting here a list from Briefing.com of the stocks that hit 52-week highs last week.
Now, you know that I like the higher yielders, but these stocks represent the market’s favorites while Europe was brewing. They are stocks that I think represent the places to go after the decline is over. We are so not there, but I think you need to be prepped.
I am editing the list to home in on stocks I like, and I am taking out the gold stocks -- a substantial part of the list -- because I like the SPDR Gold Trust (GLD) and because I accept that the gold stocks will remain "go to" as long as we are in a race to debase currencies. Basically, I like all of the gold stocks, but my favorites remain Randgold Resources (GOLD) and Goldcorp (GG).
First are the soft-goods stocks, and there I want to highlight Bristol-Myers Squibb (BMY), Kimberly-Clark (KMB), Coca-Cola (KO), Colgate-Palmolive (CL), Diamond Foods (DMND) and Church & Dwight (CHD). These managed to rally despite all of the negativity, and I believe that they should be front and center on your screen. Please keep in mind that the issue here is recession, and these all work in a recession.
At this point, the best hope for the fallen Internet giant in the long term is a buyout deal.
By Jeff Reeves, Editor, InvestorPlace.com
Yahoo Inc. (YHOO) hired Carol Bartz in early 2009 to right the struggling media giant. Hard-charging Bartz moved quickly, upending the Yahoo org chart, imposing a near-secretive culture on the Silicon Valley company and slashing 675 jobs, or 5% of staffers, on top of the 1,600 laid off the previous year.
The result? Yahoo is no better off than when Bartz took over. Yahoo stock traded at $12.10 on Jan. 13, 2009, when Bartz took over. As of Tuesday's close (before Wall Street cheered the CEO's firing and bid up shares), YHOO was at $12.91 for a nearly 6% loss. Revenue has also seen a slow decline year over year from fiscal 2009 to 2010, with another projected slide for this year too.
Not surprisingly, Bartz is out despite a year left on her contract. But now the question on everyone's mind now is whether anyone can save Yahoo.
The company may be rethinking its IPO plans, and that's probably a good thing.
Unfortunately, it's been downhill for Groupon since then.
This week brings word that Groupon is rethinking its plans for an initial public offering.
MORE ON MSN MONEY
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Serious issues like drought and the deterioration of the developed world spell opportunity for this industry leader.
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.
[BRIEFING.COM] The stock market ended the holiday-shortened week on a mixed note as the Dow Jones Industrial Average shed 0.1%, while the S&P 500 added 0.1% with seven sectors posting gains.
Equity indices faced an uphill climb from the opening bell after disappointing quarterly results from Google (GOOG 536.10, -20.44) and IBM (IBM 190.04, -6.36) weighed on the early sentiment. Google reported earnings $0.15 below the Capital IQ consensus estimate on revenue of $15.42 ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|