Stocks should be crushed by global turmoil, Jim Cramer says. Instead, they're doing fine.
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It's a good time to buy stocks at current depressed levels. Here's a start.
By Jamie Dlugosch, Stockpickr
In September 2008, I wrote that it was not too late to sell stocks. With the market in the middle of a sell-off, that article went against the grain of popular opinion. I was proud of the result. The S&P 500 ($INX) ultimately lost 39% between September 2008 and March 9, 2009, when the market hit its low.
I bring this to your attention as we attempt to deal with the current market environment. Should investors sell? Should investors buy? Should investors buy gold? These are legitimate questions, to which many people are desperately seeking answers.
Despite recent volatility, the Oracle has maintained his faith in the US economy and a long-term investment approach.
By Don Dion, TheStreet
The past week's gut-wrenchingly volatile market action has stoked fears into the hearts of even the most confident investors. One individual who appears solidly set in his bullish ways, however, is Warren Buffett.
On a number of occasions, I have commented on the Oracle of Omaha's unwavering optimistic view of the ongoing global economic recovery. Using a variety of mediums including New York Times op-eds, shareholder letters, and sit-down interviews, the billionaire investor has attempted to ease investor fears, arguing that the world's largest economy still holds promise over the long run.
As investors have clamored and panicked following Standard & Poor's' credit downgrade and renewed concerns over the European debt crisis, Buffett has once again taken to the stage in an effort to quell fears.
Orders miraculously pick up, giving the company and investors a sense that the worst of the tech spending slump might be over.
By Scott Moritz, TheStreet
The unexpected optimism sent Cisco shares up 15% in early trading Thursday, helping to lift the Nasdaq ($COMPX) almost 3% and boosting peers like Juniper (JNPR) and tech giants like Microsoft (MSFT), which were surging 7% and 3%, respectively. (Microsoft owns and publishes MSN Money.)
"The key takeaway is that things have likely stopped getting worse, even if the company is still facing competitive threats," Morgan Stanley analyst Ehud Gelblum wrote in a note Thursday, upgrading Cisco to a buy.
A portfolio of master limited partnerships that yields roughly 6% is there for the asking.
That's the only explanation that I can come up with for the incredible resurgence in master limited partnerships Wednesday. On a day when the Dow ($INDU) tanked more than 500 points, almost all were up, as witnessed by the moves in Enterprise Products Partners (EPD), Markwest Energy (MWE) and Energy Transfer Partners (ETP).
I don't care that I sound like a broken record about yield, but a portfolio of master limited partnerships that yields roughly 6% is there for the asking. These MLPs are amazing in their comebacks, as anyone who bought Linn Energy Limited Liability (LINE) the other day, catching a monster move, knows.
You just caught a four-point move from the $32 level simply focusing on yield, or focusing on insider buying, which is aggressive in LINE.
Buffett and other top investment experts believe in America over the long term -- and you should, too.
By Jeff Reeves, Editor, InvestorPlace.com
Warren Buffett isn't too worried about the recent market mayhem or the big, bad S&P downgrade. And as you watch your own portfolio gyrate wildly, it's worth remembering seven simple words from the Oracle of Omaha: "It's never paid to bet against America."
Yet if you turn on the TV, you will find plenty of fund managers in $5,000 suits who argue the opposite. Buy gold, short Treasury bonds or the dollar, prepare for the worst! So who is right?
The answer lies in your point of view. Many Wall Streeters view the market day to day, minute to minute. And there's a very good chance we will see things stay rocky for a while. But the good news is that things will turn around -- and may do so faster than you think, based on the words of Buffett and other investment experts.
The tech giant ends the trading day as No. 1, beating Exxon Mobil in terms of market value.
Apple was headed for the top spot Tuesday, only to be foiled by Exxon in the afternoon. That changed Wednesday, when Apple finished out the day with a stock price that fell 2.8% to $363.69 -- giving it a market value of $337 billion. Exxon shares tumbled 4.4% to close at $68.03, making its market cap $331 billion.
The opportunity of panic.
By Morgan Housel
After Standard & Poor's downgraded America's credit rating Friday and the stock market lost itself entirely Monday, everyone's emotions are running high. Mine have gone like this. When news of the downgrade hit, I thought, "Eh, no big deal." In April, S&P gave 50-50 odds of a downgrade if last week's debt-ceiling deal didn't cut $4 trillion from future deficits. The deal didn't. So who was surprised? After I read why S&P made the downgrade, I became annoyed. After Monday's 600-point bloodbath, I'm now angry. You should be, too.
Who am I angry with? Washington. By S&P's account, they are the sole reason the nation's credit was downgraded. Few sensible people think the U.S. lacks the economic means to pay its bills. Push comes to shove, and taxes can be raised or money can be printed. These create a litany of other problems, but they invariably solve a debt problem. America can pay its debts.
The real roadblock is the political acid that gets in the way of our debt management.
The company's recent quarter wasn't that bad, but the overall market drop is adding to the stock's woes Wednesday.
Updated: 7:27 p.m. ET
Investors punished Disney (DIS) Wednesday, sending shares down 9.1% on concerns about the economy. The stock ended afternoon trading at $31.54, and was only slightly higher after hours.
Disney was the biggest loser in the S&P 500 today, and that's saying something. The problem for the company was that it reported quarterly earnings Tuesday that didn't seem that bad on the surface. But get a little deeper into the numbers and there were problems galore.
The central bank's promise of further action is only enabling investors.
By Robert Holmes, TheStreet
The Federal Reserve has turned into the ultimate pusher, and quantitative easing is the drug that investors want badly. The question now is whether any good would come of allowing the central bank to continue to enable the markets.
Witness Tuesday's dramatic sell-off following the latest statement on interest rates, which was followed by a dramatic surge into the closing bell and an equally dramatic plunge at the open Wednesday. The Dow Jones Industrial Average ($INDU), which rocketed higher by more than 250 points in the last half hour of trading Tuesday, gave back that gain and more.
The agency is under the microscope after downgrading the US credit rating. After its spotty track record, should its opinions matter?
Is it warranted? Should we trust S&P, which, along with other ratings agencies, maintained Enron's top AAA credit rating even as the company spiraled toward bankruptcy? By S&P's standards, Enron was more likely to pay its debts than the U.S. This is the same S&P that slapped a perfect rating on those mortgage securities backed by high-risk loans that helped plunge the U.S. into financial crisis.
Politicians and regulators have jumped all over S&P for its actions, saying the agency's track record clearly shows it's out of its league when it comes to understanding debt.
Hundreds of new locations are planned worldwide. Even amid global economic woes, the strategy makes sense for this reinvented company.
That was before Starbucks saw its real-estate bubble crash when the U.S. economy turned. The company closed 900 stores, effectively tossing its ambitious expansion plans in the garbage.
But old habits die hard. Starbucks is revving up again and will open 300 new locations this year and next, MSNBC reports. But wait, aren't we on the verge of another recession? Oh, stop worrying and go get a Caramel Macchiato.
Despite the market turmoil, these global utility stocks are still trending higher and paying sizable dividends.
The US is in really bad shape, though we know the extent of it. Europe is not as bad as people think.
Those two albatrosses could reverse any rally, stop any bull in its tracks. We are all trying to figure out how much impact these have had and could have. Does an ineffectual president and a fractious congress equal a 1% decline in GDP from levels that were low already? If Italy goes bust, does that mean we go into a second recession?
You have to visualize these crimes against the economy on a calm day, because on a down day they both seem unfathomable and on an up day they can seem trivial.
I think the dysfunction in the U.S. was a huge wake-up call to the world that, right now, we are politically bankrupt. The Standard & Poor's downgrade crystallized what most people are unwilling to say, which is that until our president loses in the election, which I don't think he will, or the Tea Party obstructionist anarchists fall by the wayside, we can't really have an economic recovery of any sort in this country.
Stocks surge after the Fed soothes raw nerves with the promise of 2 more years of easy money. But be careful, as rapid turns mean danger.
What a difference a day makes. Monday, it was all doom and despair as traders reacted to the weekend news that America had lost its AAA credit rating and was docked to AA+. Fear and panic were at work.
Stocks melted in response, continuing one of the worst runs in history. By one measure, Monday's sell-off was the worst seen in more than 70 years. By another measure, the overall market had reached its most oversold level since the 1930s. In a blog post after the close, I wrote that we were nearing a turnaround point.
Tuesday, we got it. Equities launched higher, led by beleaguered bank stocks, after the Federal Reserve acknowledged recent economic weakness and vowed to keep the firehouse of easy money going until 2013. The question now is: Can the positive momentum continue?
Rising food prices pushed overall inflation up in July, but the country could soon see a peak.
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4 analysts downgrade the stock the day after a disappointing quarterly report.
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