Wednesday, November 30, 2011

Author and Consultant:Riding the Sawtooth Market

We're in a slow growth,maybe no growth economy,and this could go on for years,observes Al Angrisani,former Assistant Secretary of Labor and Chief of Staff for President Ronald Reagan from 1980-84,whom he helped to create 16 million new jobs.Investors are picking winners and losers.If the price is down,I'll make a bet on those.
You're looking at IBM,Apple,Siemens.Those are good long-term plays.We're in a sawtooth pattern,but the trend is down.You're picking companies.You get numb from the ups and downs of this sawtooth pattern,and then perhaps you get whammed by China with its uncertainty.
Mr.Angrisani has worked as a turnaround expert,restoring value to shareholders as founder of Angrisani Turnarounds,LLC,a leading consultancy for failing publicly traded companies.He sets out his approach in his book "Win One for the Shareholders!"
Siemens(SI),International Business Machines(IBM),Apple(AAPL)

Wednesday, November 23, 2011

Emirates Chooses Boeing Jets

Emirates Air has ordered 50 more 777 airliners from Boeing for a record 18 billion dollars.The deal includes an option for 20 more 777s,which would bring the total cost up to 26 billion.At the same time,Oman has ordered six Boeing 787 Dreamliners.
Jeff Johnson,President of Boeing Middle East,says Emirates Air aims for global aviation domination.We're sold out for years to come.They want the technology.The Middle East sets the standard for wanting this technology.
The Middle East also hungers for military aircraft.There are big air bases in Qatar,Kuwait and Bahrain.These countries want interoperability with the U.S. military.A 60 billion dollar U.S. arms deal with Saudi Arabia is influenced by the fear of Iran,Mr.Johnson noted.

Wednesday, November 16, 2011

Russell Investments:What Makes Sense Today

Europe is a huge source of unknowable risk,in the view of Russell Investments' Chief Market Strategist,Stephen Wood.The U.S. economy is doing a hair better than O.K.It is growing.When the market focuses on U.S. fundamentals,it tends to do well.
A globally diversified portfolio of risk assets makes sense.They outpace inflation and give you some return.If you look at the pullbacks as opportunities to get in,you've been able to nickel and dime your way in.The emerging markets are gonna be good in 3-5 or 5-7 years.
Corporations are much less likely to default than governments.Equities could end the year positive on the backs of earnings.
We have a market-based culture,with government institutions responsive to the market.It's more confrontational in Europe.You kind of grind it out here.We've got a number of years to work through these debt issues,whereas in Italy and Greece they've got a couple of days,in Dr.Wood's opinion.

Wednesday, November 9, 2011

Managing Director:Don't Bank On Banks

This decade is the worst decade for bank revenue since the Great Depression,in the view of Mike Mayo,Managing Director at Credit Agricole Securities.After a financial crisis,things don't go quickly back to normal.Be prepared to muddle through.A muddle through scenario beats alternatives like failed institution MF Global.
U.S. banks are picking up some loans from Euro banks.You can increase funds for lending,but you can't create borrowers.U.S. debt to GDP is 8 to 1-worse than Greece.We don't have enough proper auditors.Citigroup's have been in place since 1969.
You don't have proper accounting,which creates a crisis of confidence.Let's have auditors sign their names to be accountable.Let's have less regulation,but hold the top people accountable.
We're not having capitalism the way it's supposed to operate.I feel a lot more concern about capitalism when talking to Dick Parsons,Chairman of Citigroup.Just change the characters.Bank CEOs do more damage with ill-conceived incentives,Mike Mayo noted.
Mr.Mayo,a longtime banking analyst,is the author of "Exile On Wall Street."Credit Agricole S.A. is the largest full service bank in France.It ranks second in Europe and eighth in the world.

Wednesday, November 2, 2011

Merrill Lynch:What You Need To Do

There is a re-balancing coming in Europe and the U.S.,according to Lisa Shalett of Bank of America-Merrill Lynch Global Wealth&Investment Management.This is a volatility that is unprecedented since World War II.These are in many cases policy-driven.Demand and policy are interconnected.There's just as much uncertainty among consumers.
What everybody thinks is safe may be risky,and vice-versa,such as Treasuries/emerging market bonds.Embrace a more global perspective.This is about real diversification.You need to be in every geography,and not just BRICs.Consider Indonesia,Mexico,Turkey.Emerging markets bonds are safer,Ms.Shalett believes.
Merrill Lynch GWIM provides comprehensive services to affluent clients and institutions,from investment solutions to retirement,benefit plan,banking and philanthropic services.GWIM offers robust and dynamic product and solution platforms from Merrill Lynch offices worldwide.
Bank of America(BAC)