Money & Investing - Banks.com

The stock market is mixed this morning, as new data comes in. Worries over the financial sector (thanks to news of bank failures and crackdowns) are renewing themselves again. Additionally, oil prices are rebounding after declining overall for a few days. Increased oil prices usually weigh on the stock market. Investor’s Business Daily reports on some of the movers today on the stock market so far:

GMX Resources (GMXR) gained 2.85 to 71.34 in fast trade. The oil and gas producer is working on the right side of a new base.

Group mate EOG Resources (EOG) climbed 5.30 to 105.71 on brisk volume. It’s trying to recover from a 37% sell-off, but the stock has met resistance.

On the downside, Big Lots (BIG) fell 1.68, or 5%, to 31.38 in heavy trading, despite beating views and raising guidance.

LDK Solar (LDK) slipped 0.81 to 49.25 as it pulled back from a seven-month high. The Chinese solar wafer maker rose 9% Monday on a strong sales outlook.

With economic data mixed, investors are wary of where to go next.

One of the best things to do in times like these is to carefully evaluate some value stocks that are likely to pull through the current bear market. This are stocks of companies with strong fundamentals. Strong fundamentals mean that the underlying strength of the company’s management and business model will pull the stock through these tough times.

The reason now is the time to buy such stocks is that you can get them for a lower prices. At some point, the stock market will rebound (it always does; over time the stock market gains overall) and when it does, the solid stocks that you buy now will provide you with some tidy gains. The trick, of course, is choosing the stocks that will make it through this particular difficulty.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

Tags: stock market, stock market news, investing blog, value stocks,
bear market, investments, oil prices

Investment services seem to abound. There are a variety of brokers, from the guy at the bank who can arrange securities transactions, to Wall Street brokers to online discount brokers. All of these professionals offer a variety investment services that can help you make money.

But beware: Some of these investment services cost enough that they eat away at your earnings. It is important to consider the investment services offered, and whether it is worth paying for these services.

Three major investment services

According to Thomas Smith, CFP, CFA and his article on Investopedia, there are three major value components when it comes to investment services:

• Administration: This is probably the component that you will most likely need the most help with. Since you are unlikely to always have direct access to markets, it can be difficult to take care of the administrative aspects of investing. This also includes such items as compiling tax information (you can do it yourself, but it can take for-ev-er). Plus, professional administration can help you stay on top of regulations. Compare administration fees and commissions. You would be surprised at how these vary from brokerage to brokerage.
• Portfolio management. Acquiring investments is different from managing them. Administration services generally do not include investment portfolio management. This is something you can do yourself. It does take time and effort to build a good portfolio that is balanced and allocated for your needs, but it is possible that you can do it fairly well. Smith points out that many “professionals” are not terribly versed in portfolio management.
• Advice. Many people pay for investment advice. However, this is probably — in Smith’s view — the easiest area for you to get good value by taking care of it yourself. From investing books to information and news online, there are many resources available that can help you make good investment decisions. Just be wary of where you get your information.

With some careful planning and by choosing which investment services you pay for and deciding to do some of it yourself, you can build a good investment portfolio that isn’t devoured by fees and commissions.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

Tags: investment portfolio, investment services, investing blog, portfolio management,
investment advice, investments

Ben Bernanke made a speech in Jackson Hole, Wyoming today. The subject was financial stability and reducing risk in the system. Bernanke offered a message on inflation, insisting that in the coming months the pressures would moderate. This is good news for many who are concerned about the skyrocketing prices for food and energy.

Bernanke’s remarks are also having quite an impact on investing. Investors generally look to the chairman of the Federal Reserve for clues on where monetary policy is headed — as well as for insight into the state of the economy and the financial markets. The decisions that the Federal Reserve makes can affect a variety of markets. This is why investors pay attention to Bernanke. They are hoping to get an idea of where the wind is blowing.

Stock market, U.S. dollar see gains

Ben Bernanke’s optimism regarding the U.S. economy and the financial markets is giving a boost to today’s stock market activity. Right now, the stock market is rallying right now on the news, in the hopes that it means bigger profits and lower ovehead.

The U.S. dollar is also rallying. The greenback has had a strong week, despite yesterday’s dip. Bernanke’s remarks are providing hope for dollar bulls, providing them with ideas of an economy that can support a stronger U.S. dollar.

Of course, Bernanke has been fairly optimistic overall regarding the economy and U.S. financial markets since the crisis first hit last year. It remains to be seen whether this “confidence boosting” will be of help to the markets in the long term.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

Tags: stock market, stock market news, investing blog, investing news,
economy, Ben Bernanke, U.S. dollar