NY: Wall Street cash bonuses to drop 14 percent
February 29, 2012
By MICHAEL GORMLEY | Associated Press – ALBANY, N.Y. (AP) — Wall Street cash bonuses for 2011 are expected to drop 14 percent and profits are expected to drop by half for the second year in a row, according to a forecast Wednesday by New York state Comptroller Thomas DiNapoli . That would result in cash bonuses of $19.7 billion.
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By MICHAEL GORMLEY | Associated Press –
ALBANY, N.Y. (AP) — Wall Street cash bonuses for 2011 are expected to drop 14 percent and profits are expected to drop by half for the second year in a row, according to a forecast Wednesday by New York state Comptroller Thomas DiNapoli.
That would result in cash bonuses of $19.7 billion. Profits are expected to be less than $13.5 billion in 2011, compared to $27.6 billion in 2010.
The average cash bonus is expected to be $121,150 for 2011, down from $138,940 in 2010. Bonuses peaked before the recession in 2006 at $191,360.
DiNapoli said the forecast for this bonus season shows continued hard times on Wall Street two years after the recession officially ended. The securities industry lost 28,000 jobs, including 9,600 that had been briefly recovered before the slide began in April.
“Securities firms in New York City resumed downsizing in the second half of the year,” DiNapoli said. “The securities industry, which is a critical component of the economies of New York City and New York state, faces continued challenges as it works through the fallout from the financial crisis and adjusts to regulatory reforms.”
Wall Street has traditionally accounted for 20 percent of the state’s tax revenue, but that declined to 14 percent last year. During the same two years, Wall Street’s contribution to New York City’s tax revenue dropped to 7 percent from 13 percent.
Gov. Andrew Cuomo said he hadn’t seen the report, but is confident his 2012-13 budget proposal reflects the trends.
DiNapoli said in an interview that the state and New York City budgets appear to take into account the Wall Street losses.
The Democrat said Wall Street’s performance affects all New Yorkers, and job gains or losses there translate into gains and losses throughout the city and state.
“The average bonus is still $121,000, so obviously these jobs are still very well compensated,” DiNapoli said. “If you love or hate Wall Street, it’s still an important part of our economy … people spending money always helps the rest of us.”
A strong first half in 2011 yielded profits of $12.6 billion, but that performance broke down in the third fiscal quarter, when Wall Street lost $3 billion.
DiNapoli says the figures appear to show a continued rise in deferred compensation, which will spread bonuses out of several years.
The average salary including bonuses was $361,180 in 2010. A 2011 estimate isn’t yet available.
Wall Street cash bonuses to drop 14 percent
February 29, 2012
By MICHAEL GORMLEY | Associated Press – ALBANY, New York (AP) — Wall Street cash bonuses for 2011 are expected to drop 14 percent and profits are expected to drop by half for the second year in a row, according to a forecast Wednesday by New York state Comptroller Thomas DiNapoli . That would result in cash bonuses of $19.7 billion.
Excerpt from:
By MICHAEL GORMLEY | Associated Press –
ALBANY, New York (AP) — Wall Street cash bonuses for 2011 are expected to drop 14 percent and profits are expected to drop by half for the second year in a row, according to a forecast Wednesday by New York state Comptroller Thomas DiNapoli.
That would result in cash bonuses of $19.7 billion. Profits are expected to be less than $13.5 billion in 2011, compared to $27.6 billion in 2010.
The average cash bonus is expected to be $121,150 for 2011, down from $138,940 in 2010. Bonuses peaked before the recession in 2006 at $191,360.
DiNapoli said the forecast for this bonus season shows continued hard times on Wall Street two years after the recession officially ended. The securities industry lost 28,000 jobs, including 9,600 that had been briefly recovered before the slide began in April.
“Securities firms in New York City resumed downsizing in the second half of the year,” DiNapoli said. “The securities industry, which is a critical component of the economies of New York City and New York state, faces continued challenges as it works through the fallout from the financial crisis and adjusts to regulatory reforms.”
Wall Street has traditionally accounted for 20 percent of the state’s tax revenue, but that declined to 14 percent last year. During the same two years, Wall Street’s contribution to New York City’s tax revenue dropped to 7 percent from 13 percent.
Gov. Andrew Cuomo said he hadn’t seen the report, but is confident his 2012-13 budget proposal reflects the trends.
DiNapoli said in an interview that the state and New York City budgets appear to take into account the Wall Street losses.
The Democrat said Wall Street’s performance affects all New Yorkers, and job gains or losses there translate into gains and losses throughout the city and state.
“The average bonus is still $121,000, so obviously these jobs are still very well compensated,” DiNapoli said. “If you love or hate Wall Street, it’s still an important part of our economy … people spending money always helps the rest of us.”
A strong first half in 2011 yielded profits of $12.6 billion, but that performance broke down in the third fiscal quarter, when Wall Street lost $3 billion.
DiNapoli says the figures appear to show a continued rise in deferred compensation, which will spread bonuses out of several years.
The average salary including bonuses was $361,180 in 2010. A 2011 estimate isn’t yet available.
Stock Car Steel & Aluminum Launches New Ecommerce Site
February 28, 2012
Stock Car Steel 801 Performance Rd Mooresville, NC, 28115 USA Press release date: February 22, 2012 Stock Car Steel & Aluminum, Inc. has launched a new online ecommerce site at stockcarsteel.com. The site offers a full line of raw materials featuring steel, aluminum, alloys and plastics.
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Stock Car Steel
801 Performance Rd
Mooresville, NC, 28115
USA
Press release date: February 22, 2012
Stock Car Steel & Aluminum, Inc. has launched a new online ecommerce site at stockcarsteel.com. The site offers a full line of raw materials featuring steel, aluminum, alloys and plastics.
Customers from the company’s core base, the NASCAR industry, are featured on the site. They give testimonials that educate the average online buyer about doing business with an industry leader such as Stock Car Steel & Aluminum.
In addition to providing outstanding service and support to NASCAR race teams in their local market, Stock Car Steel & Aluminum also serves markets outside of the racing world. Some of these include many types of Manufacturing Companies, Machine Shops, the Marine Industry, the Construction Industry, various Educational, Vocational and University programs, Restoration Companies, Engineering Firms, Designers and Decorators, Hobbyists, Do-it-yourselfers, Artists and many, many more. They ship product nationally to all 50 states and internationally from New Zealand to Red Square!
Jody Hall, Parts / Purchasing Director at Earnhardt Ganassi Racing says “It has been a pleasure doing business with Stock Car Steel & Aluminum over the years. Their customer service is top notch! The staff is very knowledgeable and eager to help get me the materials that I need to finish the job. Keep up the great work!!”
Lakey Cornelius, Parts Manager at Richard Childress Racing says this; “It took us a while to give Greg a chance many, many years ago. We made him prove he was the man to beat on price and service. He sure developed a very loyal and dedicated customer here. We have learned we can depend on what we are told by Stock Car Steel and Aluminum employees and we put a high degree of trust in them. The commitment to the customer and the effort spent making sure we are 100% satisfied is first rate. You’ve passed the point of just being another vendor; you have become a valued partner to our entire organization.”
Tony Laughlin, Director of Purchasing at Michael Waltrip Racing says “I wanted to send Kenny and Greg a note to let you know how much MWR appreciates everything that Stock Car Steel does for us. We know that we can trust you to give us fair prices and your service is second to none. Everyone that works there has always been willing to go the extra mile to get us what we need in a timely manner. Thanks very much and keep up the good work!”
About Stock Car Steel & Aluminum
Headquartered in Mooresville, N.C., Stock Car Steel and Aluminum supplies every type of raw material used in the racing industry including Carbon Steel, Aluminum, Aluminum Sheet Metal, Aluminum Angle Stock, Stainless Steel, Chrome Moly, DOM and ERW tubing, sheet metal, bars, plates, & structurals. Also headquartered in Mooresville, NC, Stock Car Steel and Aluminum’s sister company, SRI-Supplies for Racing & Industry, offers a huge variety of fabrication and body shop supplies. SRI is a distributor of well respected names such as 3M, POP brand rivets, AVEX rivets, Camloc, Skybolt, Unbrako Socket Products, Dewalt, and L.S. Starrett. SRI specializes in Military-Spec racing fasteners, saw blades, abrasives, rivets, adhesives, epoxies, power tools, pneumatic tools, cutting tools, Scotchguard Paint Protection Film, Window Film / Tear-Offs, Racers Tape, Aluminum Foil Tape, Abrasive Cutting Tools, Camlocs, Socket Head products and much, much more.
"Stock Alerts" Produce 96% Winners in 2011 and 100% in 2012
February 27, 2012
SANTA CLARA, CA–(Marketwire -02/27/12)- Managing trades well is part of what separates winning and losing traders over the long term. The BullTrade.com ” Stock Alert ” service combines excellent stock picking (a proprietary system fine-tuned over 14 years) with superior management. The results have been fantastic
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SANTA CLARA, CA–(Marketwire -02/27/12)- Managing trades well is part of what separates winning and losing traders over the long term. The BullTrade.com “Stock Alert” service combines excellent stock picking (a proprietary system fine-tuned over 14 years) with superior management. The results have been fantastic. Since January 2003, over 96% of all closed-out trades have ended profitably. There have been several trading streaks of well over a year without a single losing trade. In 2011, a streak of 180 consecutive winning trades (28 straight months) finally ended with a loss during the summer volatility. 2012 has started with nine straight profitable trades, one of which eclipsed a 17% gain in a few days. While there are some monster winners, most gains, like Apple Computer and Green Mountain Coffee (NASDAQ: GMCR – News), have averaged 8-12%. These “Stock Alerts” are sent prior to the market open so any active trader can easily benefit. One subscriber commented, “I followed your buy recommendation on Cemex and took a 26% profit the following day. Your picks have been fantastic. I wish I found you guys earlier!”
Other stocks that have been profiled or recommended in the past include Visa, Renren (NASDAQ: RENN – News), Sodastream (NASDAQ: SODA – News) and Priceline.com (NASDAQ: PCLN – News). To find out more or to see the performance history, please visit the web site at http://www.bulltrade.com
To sign up for the Special Membership (“Stock Alerts”), please visit the secure web site at https://www.bulltrade.com/signup.aspx. Special Members receive Stock Alerts, both via email and on the web site, as well as the daily market newsletter (Regular Membership).
About BullTrade.com:
BullTrade.com (www.bulltrade.com) provides investors with a daily newsletter and financial forum. The BullTrade newsletter is ideal for both beginner and experienced investors, and is available for a very affordable $29.99 per month. The Special Membership featured above includes the regular newsletter as well as “Stock Alerts” for $100 per month. BullTrade Corp. is not a registered broker dealer or a registered investment adviser. No information accessed through the BullTrade Web site constitutes a recommendation to buy, sell or hold any security. Please view the disclaimer at http://www.bulltrade.com/legal.aspx.
Wall Street Poised to Fall from Multi-Year Highs
February 27, 2012
FOX Business: The Power to Prosper Stock-index futures signaled Wall Street may recede from multi-year highs on Monday as traders grew more cautious over rising crude oil prices and continued uncertainty over the European debt crisis. Today’s Markets As of 8:10 a.m.
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FOX Business: The Power to Prosper
Stock-index futures signaled Wall Street may recede from multi-year highs on Monday as traders grew more cautious over rising crude oil prices and continued uncertainty over the European debt crisis.
Today’s Markets
As of 8:10 a.m. ET, Dow Jones Industrial Average futures fell 46 points to 12915, S&P 500 futures dipped 6 points to 1257 and Nasdaq 100 futures dropped 10 points to 2592.
The broad S&P 500 capped the quiet, holiday-shortened trading week at the highest level since 2008, while the technology-heavy Nasdaq ended at the highest value since 2000. Meanwhile, the Dow is sitting right near its best level in nearly four years.
Market participants struck a considerably more cautious tone on Monday, however. European shares took a particularly strong hit, with the Euro Stoxx 50 selling off by 1%, while Asian bourses were down by a slimmer margin. Instead of pointing to one single event as the catalyst for the downward pressure, traders said there was a general weakening of sentiment, coupled with fatigue over themes that have driven the market in recent weeks.
“A lot of bank traders are sitting on their hands,” Louise Cooper, a senior financial analyst based in London at BGC Partners said in an interview with FOX Business, adding that may traders are “exhausted” by the sheer number of headlines regarding Europe’s debt crisis.
On that front, Germany’s parliament is set to vote on a $172 billion bailout package from the European Union that Greece needs to avoid a default on Monday. While the leadership of the eurozone has agreed to the deal, parliaments representing the 17-member currency bloc now need to agree to it. Analysts generally expect passage, but many of the legislative bodies may face resistance from factions not in support of the bailout.
The European Central Bank is also set to allow banks to apply for a second round of three-year loans at an interest rate of 1% on Tuesday. The first round was seen by many analysts as critical in helping stave off a pan-European credit crunch that could have taken a big toll on financial markets.
The results are expected to be published on Wednesday, and market participants will be watching very closely to see how much money banks borrow. A number too high could mean that banks are in worse shape than expected, but one too low, on the contrary, could indicate banks are not taking advantage of the low rates. The hope, according to media reports, is that banks will lend the money to consumers and businesses, plus use the low-rate loans to invest in sovereign debt that will pay a considerably higher rate. In turn, the investment in sovereign debt may help to push yields lower, lessening countries’ debt burdens.
The euro fell 0.35% to $1.3401, while the U.S. dollar rose 0.21% against a basket of six world currencies tracked by the dollar index.
Energy prices have also been a key worry for traders on Wall Street. U.S. crude oil closed out the week last week at its highest value since May, while New York Harbor wholesale gasoline ended at its highest level since April. Oil prices are now up close to 17% on the year as tension has mounted between Iran and Western countries.
Futures were pressured on the day by a stronger dollar. Generally, dollar-traded commodities trade inversely to the greenback because as it rises, the underlying material gets more expensive.
The benchmark crude contract fell $1.06, or 0.96%, to $108.73 a barrel. Wholesale gasoline slid 0.59% to $3.134 a gallon. In metals, gold fell $6.50, or 0.37%, to $1,770 a troy ounce.
The U.S. economic calendar on the week is fairly heavy, with several key reports on tap. On Monday, traders will get fresh data on the still-weak real estate market. Pending home sales may have risen 1% in January from the month prior, according to economists’ forecasts.
U.S. Treasury yields fell as traders bid up the safe-haven asset. The benchmark 10-year note yields 1.946% from 1.979%.
Foreign Markets
European blue chips fell 1%, the English FTSE 100 dipped 0.87% to 5,883 and the German DAX dropped 1.1% to 6,789.
In Asia, the Japanese Nikkei 225 slipped 0.14% to 9,634 and the Chinese Hang Seng slid 0.88% to 21,218.
Stock market woe: high oil prices
February 27, 2012
Stock market averages fall in Europe, Asia as high oil prices stoke worries that they could undercut economic recovery. Stock market in US set to open lower. Sky-high oil prices weighed on markets Monday as investors worried that the increases could choke off a burgeoning economic recovery, particularly in the U.S.
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Stock market averages fall in Europe, Asia as high oil prices stoke worries that they could undercut economic recovery. Stock market in US set to open lower.
Sky-high oil prices weighed on markets Monday as investors worried that the increases could choke off a burgeoning economic recovery, particularly in the U.S.
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Sentiment in the markets has been buoyed in recent weeks by a seeming calm in Europe’s debt crisis and a run of strong U.S. economic data, particularly with regard to jobs.
One side-effect of the positive U.S. economic newsflow has been to put upward pressure on oil prices. Despite a modest retreat back below $109 a barrel Monday, the benchmark New York rate is trading way above where it was just a month ago. Last Friday, it hit $109.77 a barrel, its highest close since May 3. Crude has soared from $96 earlier this month as stronger U.S. economic indicators bolstered investor confidence.
“At this stage of the global economic cycle, with activity in many of the major advanced economies sluggish, a rise in oil prices threatens to intensify the recessionary prospects facing these economies while, at the same time, raising the headline rates of inflation,” said Neil MacKinnon, global macro strategist at VTB Capital.
That fear has weighed on markets Monday.
In Europe, the FTSE 100 index of leading British shares was down 0.7 percent at 5,894 while Germany’s DAX fell 1.1 percent to 6,789. The CAC-40 in France fell 1 percent to 3,432.
Wall Street was poised for losses at the open too — Dow futures were down 0.5 percent at 1,357 while the broader Standard & Poor’s 500 futures fell 0.4 percent to 12,908.
Despite Monday’s retreat, many of the world’s leading indexes are back at levels they were trading at before last summer’s massive sell-off. U.S. markets are faring even better and have even broken through levels last seen before the collapse of U.S. investment bank Lehman Brothers in September 2008.
While developments surrounding oil prices will continue to be monitored, investors will be watching developments over Europe’s debt crisis closely, especially on Wednesday when the European Central Bank offers its second round of super-cheap long-term loans to banks.
Its first so-called long-term refinancing operation last December has been widely credited for helping to calm markets in 2012.
And with Greece pressing ahead with demands to get its hands on a €130 billion ($174 billion) bailout, market concerns over an imminent default by the country have diminished, and that’s helped the euro spike too to near 11-week highs.
On Monday, it was down 0.3 percent at $1.3419.
Last Friday, Greece made a formal offer to creditors to swap their Greek government bonds for new ones in another step toward knocking €107 billion off its debts. The swap is part of a deal to prevent Greece from defaulting on a debt payment due next month.
The Greek Finance Ministry issued the formal offer to banks and other investment funds under which creditors are called on to accept losses of more than half the face value of the bonds they hold in return for new bonds with longer maturities.
Later Monday, German lawmakers are expected to back the new Greek rescue package by a wide margin on Monday, despite unease over whether Athens will need more help in the future.
Over the weekend, Germany was pressed by countries within the Group of 20 leading industrial and developing nations to increase the size of Europe’s bailout facility and investors will be looking to see if there are any signs during the Parliamentary debate of an easing in the Germany position.
Earlier in Asia, Japan’s Nikkei 225 index ended down 0.1 percent at 9,633.9, giving up gains posted earlier in the day. Hong Kong’s Hang Seng fell 0.8 percent to 21,217.86 and South Korea’s Kospi lost 1.4 percent to 1,991.16.
But mainland Chinese shares advanced for a seventh straight trading day as hopes for an easing of restrictions on housing purchases help drive the rally. The benchmark Shanghai Composite Index added 0.3 percent to 2,447.06 and the Shenzhen Composite Index gained 0.3 percent to 975.62.
Penny Stock Trade Review: America West Resources Report Featured on MicroStockProfit.com
February 27, 2012
DALLAS, Feb. 27, 2012 (GLOBE NEWSWIRE) — MicroStockProfit.com announces a stock report featuring America West Resources Inc.
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DALLAS, Feb. 27, 2012 (GLOBE NEWSWIRE) — MicroStockProfit.com announces a stock report featuring America West Resources Inc. (OTCBB:AWSR.OB – News). The report details the company’s most recent developments and news, outlines its financial position and market performance, and includes an easy-to-read stock chart.
MicroStockProfit.com is the premier destination for investment information, making your trading decisions easier than ever. Get the rundown on how AWSR stacks up against its competitors and check-out the stock’s technical data by viewing the free, in-depth report for AWSR at: http://www.microstockprofit.com/lp/AWSR
This newsletter has been helping traders make great investment decisions on AWSR; click here for a 37% discount offer.
In the report, the analyst notes:
“Shares of America West Resources Inc. (AWSR) plunged nearly 50% to close Friday at $0.65, snapping two straight sessions of gains, without any news driving the stock price movement. Trading volume rose to over 9.84 million shares, about 35 times the 30-day average.”
“AWSR reported revenue of about $3.6 million for the three months ended September 30, 2011, nearly 27% up from $2.8 million reported in the comparative period of the prior year.”
To read the entire report, visit: www.microstockprofit.com/lp/AWSR
See what investors are saying about AWSR at http://www.stockhideout.com
Get breaking news on AWSR at http://thestockmarketwatch.com/
MicroStockProfit.com is a small-cap research and investment commentary provider. MicroStockProfit.com strives to provide a balanced view of many promising small-cap companies that would otherwise fall under the radar of the typical Wall Street investor. We provide investors with an excellent first step in their research and due diligence by providing daily trading ideas, and consolidating the public information available on them. Please visit http://www.microstockprofit.com for more information.
MicroStockProfit.com Disclosure
MicroStockProfit.com is not a registered investment advisor; nothing contained in any materials should be construed as a recommendation to buy or sell any securities. MicroStockProfit.com is a Web site wholly owned by BlueWave Advisors, LLC. Neither MicroStockProfit.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. Please read our report and visit our Web site, MicroStockProfit.com, for complete risks and disclosures.
Apple stock at $500: Still a bargain?
February 27, 2012
By The Week’s Editorial Staff | The Week – A decade ago, a share of Apple barely cost $10. Today, it trades well above $500. And optimistic investors say the good times will keep on rolling Apple stock is now trading at more than $500 a share, making the company more valuable than Google and Microsoft combined
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By The Week’s Editorial Staff | The Week –
Apple stock is now trading at more than $500 a share, making the company more valuable than Google and Microsoft combined. Needless to say, investors are happy: A $10,000 investment in Apple in 2000 “would be worth about $966,667 today,” writes Chris Dumont at Investopedia. But Apple’s meteoric rise presents a conundrum, too: Investors are torn between curtailing their spending on the increasingly pricey stock, or doubling down to reap more profits. Can Apple’s share price keep climbing?
Yes. Apple has a lot of room to grow: Apple sold 37 million iPhones last quarter, says Chris Dumont at Investopedia, and that’s still “tiny in comparison” to the overall cell phone market, which is expected to increase to 2 billion units in 2012. Apple has only just begun selling iPhones in China, where the potential for expansion is massive. Don’t forget the iPad, either. Apple believes tablets will eventually eclipse personal computers in sales, and “with the iPad being the dominant tablet, Apple should benefit.”
“Apple stock: $500 and climbing?”
Apple may be too big to succeed: Apple is now the biggest company in the world, and it’s “running up against the law of large numbers,” says James B. Stewart at The New York Times. It’s hard to keep racking up massive profits when you get this big. For example, a company with $1 billion in revenue would need to rake in an additional $200 million for a 20 percent increase. Apple, which brought in $46 billion last quarter, would have to better that by $9 billion next year for the same percentage increase. That will be awfully difficult. And in tech, “history suggests that excessive enthusiasm often precedes a fall.” Remember Cisco Systems? It was valued at $557 billion in 2000 — more than Apple’s current $500 billion — and is now hovering in the $100 billion region.
“Confronting a law of limits”
It all depends. Can Apple keep innovating? Apple is “still a cheap stock,” says Paul R. La Monica at CNNMoney. However, the company is “on a phenomenal winning streak” with the iPhone and iPad, and its continued success depends on its continuing to be a consistent iconoclast. “What will be the new iWonder?” Is it a product “nobody can even imagine yet?” Apple has to “keep innovating” — and it has to do so without Steve Jobs, acknowledged to have been the company’s “creative spark.”
“Even at $500, Apple is still cheap”
SEE MORE: The imminent iPad 3 launch: A guide to the rumors
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Zacks Market Neutral Fund (ZMNAX) Recognized as 'Category King' by The Wall Street Journal
February 27, 2012
CHICAGO, Feb. 27, 2012 /PRNewswire/ — The Wall Street Journal has named the Zacks Market Neutral Fund (ZMNAX) in its “Category King” ranking. The fund was ranked number 4 out of a universe of 84 funds in the market neutral category for the 1-year period ending December 31, 2011. The Zacks Market Neutral Fund’s objective is to generate positive returns in both rising and falling equity markets. The fund simultaneously invests in long and short positions seeking to minimize portfolio exposure to overall equity market risk.
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CHICAGO, Feb. 27, 2012 /PRNewswire/ — The Wall Street Journal has named the Zacks Market Neutral Fund (ZMNAX) in its “Category King” ranking. The fund was ranked number 4 out of a universe of 84 funds in the market neutral category for the 1-year period ending December 31, 2011.
The Zacks Market Neutral Fund’s objective is to generate positive returns in both rising and falling equity markets. The fund simultaneously invests in long and short positions seeking to minimize portfolio exposure to overall equity market risk.
“We are pleased to have received this distinction from the Wall Street Journal. We attribute the performance of ZMNAX to our disciplined process and the experience of our portfolio managers” said Robert J. Coulton, a Managing Director at Zacks Investment Management.
The Zacks Market Neutral Fund (ZMNAX) may be appropriate for investors:
- Seeking to generate returns that are independent of the direction of the stock market
- Seeking a portfolio with potential for low correlation to traditional equity and fixed income investments
- Seeking a fund with a potentially lower risk profile than most equity asset classes
Investors can learn more and invest directly in the fund by visiting www.ZacksFunds.com.
About Zacks Investment Management
Zacks Investment Management is a wholly owned subsidiary of Zacks Investment Research, one of the largest providers of independent equity research in the U.S.
Zacks manages several Mutual Funds that each implement an active management approach and follow methodical processes. Zacks core philosophy is based on the belief that each individual company’s stock price is driven by earnings expectations. By tracking analysts’ earnings estimate revisions, Zacks seeks to profit from future stock price movement, creating the potential for strong returns for their shareholders. Visit www.ZacksFunds.com for more information.
Disclosure:
Investors should consider the investment objectives and policies, risk considerations, charges and ongoing expenses of the Fund carefully before investing. The prospectus and/or summary prospectus contains this and other information relevant to an investment in the Fund. The prospectus and/or summary prospectus can be obtained by calling 1-888-453-4003 or by visiting www.zacksfunds.com. Please read the prospectus and/or summary prospectus carefully before you invest.
Recent Fund Performance has been negative.
An investment in the Zacks Market Neutral Fund is subject to risks, including risks associated with establishing short positions in securities, and you could lose money on your investment. Please see the Fund’s prospectus for additional information regarding the risks of investing in this Fund.
In order to establish a short position in a security, the Fund must first borrow the security from a broker or other institution to complete the sale. The Fund may not always be able to borrow a security, or to close out a short position at a particular time or at an acceptable price. If the price of the borrowed security increases between the date of the short sale and the date on which the Fund replaces the security, the Fund may experience a loss.
The Zacks Market Neutral Fund is distributed by Grand Distribution Services, LLC.
Media Contact:
Robert J. Coulton
Managing Director
Zacks Investment Management
Direct Dial: 312-265-9263
Toll Free: 888-600-2783 x 9263
Taking stock: Don't be the “dumb money”
February 27, 2012
(MoneyWatch) I’ve been known to harp on the fact that it’s impossible to predict the stock market. Yet something I can predict is arguably even more illuminating — how investors behave.
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(MoneyWatch)
I’ve been known to harp on the fact that it’s impossible to predict the stock market. Yet something I can predict is arguably even more illuminating — how investors behave. Let’s take a brief stroll down memory lane and look at what some of this behavior tells us about the market.
Last year started with a bang and, by the end of April, U.S. stocks were approaching an all-time high. Then the gloom set in, putting the market into a five-month tailspin. The losses piled up fast, recalling the gut-wrenching 2008 financial collapse.
By October 3, the Wilshire 5000 — the broadest index for the U.S. equity market — was down 18 percent. Yet that month ended as one of the strongest for stocks in 24 years. The rally continued through the rest of the year, bringing stocks back into positive territory for 2011. As of midday on Feb. 24, U.S. stocks were up 9.8 percent and were within 0.6 percent of their all-time high on Oct. 9, 2007.
Examining the chart above, logic would dictate that investors should be selling when stocks go up and buying when they fall, a strategy that had been paying off until only recently. As we know, though, investors are anything but rational. According to data from the Investment Company Institute, investors repeated the same mistake they made during the 2008-09 market crash — they bought high and sold low.
Stocks near all-time high
Stocks to plummet this summer
When stocks were surging through April of 2011, investors poured $38 billion into U.S. stock mutual funds during the first four months of the year — just in time for an ensuing five-month decline that nearly hit “bear” status. Investors subsequently pulled $179 billion out of stock funds — just in time to miss out on the recovery.
And now that stocks are hovering around that all-time high, can you guess what’s happening? Yes, for the first two weeks of February, investors have put nearly $5 billion back into stocks.
As this data shows, the “dumb money” in the markets is alive and well. Investment pros are just as susceptible to the vagaries of human nature as the average Joe. Both groups excel at timing the market poorly.
That is a safe prediction. Of course, if the markets are unpredictable, they’re also not predestined. Time to join the “smart money” and rebalance your portfolio.
