“f all of the developed countries, three broad fixed-income observations stand out: 1) given enough liquidity and current yields I would prefer to invest money in Canada. Its conservative banks never did participate in the housing crisis and it moved toward and stayed closer to fiscal balance than any other country, 2) Germany is the safest, most liquid sovereign alternative, although its leadership and the EU’s potential stance toward bailouts of Greece and Ireland must be watche
Morgan Stanley (NYSE:MS): Bank of America (NYSE:BAC) May Be Hit Harder than Thought from Obama Trading Ban
The original report from Citibank (NYSE:C) in response to a proposal to limit proprietary trading from Obama was that Bank of America (NYSE:BAC) would lose about 1 to 2 percent of earnings from the event. Morgan Stanley (NYSE:MS) has now released a report stating that the fallout would be far worse than that, more than doubling their outlook over Citibank’s, to Bank of America losing potentially up to 5 percent of overall earnings if the plan is implemented.
It’s been said that copper (ETF: JJC) is the metal with a PhD due to its ability to reflect economic trends. What is copper saying right now?
sell S&P 500 SPDR (SPY)
After Standard & Poor’s downgraded California’s bond rating yet again earlier this month, Gov. Arnold Schwarzenegger and members of his administration sounded practically schizophrenic, on the one hand warning the legislature that the state had to get its fiscal house in order while simultaneously deriding the notion that California would ever fail to pay its obligations.
Acronyms for blocs of countries are all the rage these days: BRIC, MAVENS, now PIIGS (Portugal, Italy, Ireland, Greece, and Spain). As the BRICs and MAVENS were created to group strong growth countries into an investable group, the PIIGS are the polar opposite: countries on the brink of disaster. We didn’t coin the acronym “PIIGS”, but we are the first out with a comprehensive way to “play” it.
sell Spain Fund (SNF)
Sovereign debt risk has been the talk of the town so far in 2010. Downgrades to Greece’s credit rating and its government bonds impact on the rest of Europe and its currency, the Euro, has sounded the alarm across the continent.