PowerShares Planning To Close 19 ETFs

by Murray Coleman

Invesco PowerShares is making plans to close 19 of its exchange-traded funds, a dozen of which are based on fundamental indexes created by Rob Arnott's Research Affilliates.
But of those so-called RAFI funds, which use fundamental valuations to weight securities based on FTSE Group indexes, nine are U.S.-focused sector ETFs. The other three are niche-oriented international portfolios.
The moves, which are expected to take effect on May 19, comes after a splattering of smaller fund closings by other ETF providers earlier this year. The PowerShares shutterings picks up the pace of consolidations in an industry that had been growing at a faster pace than traditional mutual funds for a decade.
In fact, last year marked the first time since ETFs entered the investment marketplace in 1993 in which any signficant number of fund closings had taken place.

in:
http://www.indexuniverse.com/sections/newsinfocus/5792-powershares-to-close-19-etfs-12-rafi-funds-included.html">www.indexuniverse.com/sections/newsinfocus/5792-powershares-to-close-19-etfs-12-rafi-funds-included.html">www.indexuniverse.com/sections/newsinfocus/5792-powershares-to-close-19-etfs-12-rafi-funds-included.html">www.indexuniverse.com/sections/newsinfocus/5792-powershares-to-close-19-etfs-12-rafi-funds-included.html

Fidelity Says ‘All Things in Place’ for Bull Market

By Hanny Wan and Bernard Lo

Anthony Bolton, president of investments at Fidelity International, said a bull market in equities has already begun and financial shares are poised to drive recent gains higher.

Low valuations indicate advances that began in March are the start of a bull market, Bolton said. He favors financials, consumer cyclical, technology, and “value stocks,” such as retailers, automakers and construction-related shares.

“All the things are in place for the bear market to have ended,” Bolton said in an interview with Bloomberg Television in Hong Kong. “When there’s a strong consensus, a very negative one, and cash positions are very high, as they are at the moment, I’d like to bet against that.”

The MSCI World Index has dropped 3.2 percent this year, extending last year’s 42 percent slump, the worst annual performance since at least 1970. Shares plunged as a collapse in U.S. consumer spending and a freeze in credit markets sent the U.S., Europe and Japan into their first simultaneous recessions since World War II.

in:
http://www.bloomberg.com/apps/news?pid=20601085&sid=a3wlzls3Lq4I&refer=europe

Banks Still Going Bust?

Some creative accounting, a Congress reluctant to offer any more help and the "stress test results" may squash a big comeback by the banking industry. The stock market is bouncing up and down as investors seem jittery about the banking industry, despite several major banks reporting first-quarter profits. Wells Fargo, Inc., Citigroup and Bank of America all reported better than expected earnings for the first part of the year.

Those booming bottom lines from banks are being questioned though. The New York Times financial columnist Paul Krugman warned Americans to stay skeptical as banks maneuvered their numbers. "The biggest positive news in recent days has come from banks, which have been announcing surprisingly good earnings. But some of those earnings reports look a little...funny." For example, Krugman noted that Goldman Sachs changed its definition of "quarter."

Treasury Secretary Timothy Geithner revealed recently that of the $700 billion in government bailout money dedicated to rescuing the U.S. financial markets, only $109.6 billion remains. While the Treasury Department said they expect the fund to receive about $25 billion in the next year as companies repay their loans, Congress seemed a little confused on the return taxpayers were getting on this massive investment. The numbers breakdown as follows, according to the Associated Press:

$355.4 billion - committed under the Bush administration to help bolster AIG, Citigroup, Bank of America, GM, and Chrysler among other companies.

$30 billion - additional funds given to AIG under the Obama administration.

$5 billion - additional funds to automakers under the Obama administration.

$200 billion - disbursed to more than $500 banks.

in:
http://community2.myfoxaustin.com/_Banks-Still-Going-Bust/BLOG/264827/82263.html

Lo que Obama esconde

“Es importante que la gente sepa que lo de Obama no es una conspiración de los friquis, sino algo muy bien trazado desde los centros del poder más rancios e universales”.
Lo afirma Daniel Estulin, autor de La verdadera historia del Club Bilderberg, y uno de los autores que señalan con más insistencia al nuevo mandatario estadounidense como un esbirro de ocultos intereses. Y es que Obama es la nueva estrella de ese mundo en que los poderes oscuros acechan en la sombra.
En primera instancia, porque no hay presidente norteamericano que pueda escapar de las teorías de la conspiración. Pero, además, porque Obama posee el perfil perfecto para encajar en esas teorías. No es como su predecesor, George W. Bush, cuyas conexiones con poderes fácticos eran más o menos evidentes (neocons, grupos religiosos, industrias de la energía y del armamento) y cuyos planes para el nuevo orden mundial estaban en las páginas de los diarios más prestigiosos.
Obama, por el contrario, representa el rostro afable del sistema, alguien de maneras moderadas y de actitud claramente empática, que ha sido acogido como el salvador por la clase media y media-baja. El rostro perfecto y el perfil adecuado, según esta clase de teorías, para dar cuerpo al nuevo Manchurian Candidate, al nuevo “mensajero del miedo”.

in:
http://www.elconfidencial.com/cache/2009/05/02/mundo_40_obama_esconde.html

The top five inflation beating investments

by Philip Scott, This is Money

Deflation is blighting the UK but some fear a return to inflation is not far away
- we outline the best investment hedges against it

Deflation is stalling the UK's economic engine. In February the retail price index (RPI), which includes housing and mortgage costs, recorded deflation for the first time in almost 50 years, after dropping from 0% to -0.4%.

The fall was caused largely by low interest rates driving payments on tracker mortgages down - good news for borrowers, bad for beleaguered savers.

Simultaneously, the consumer price inflation (CPI) index, which excludes mortgage and housing costs, dropped back by 0.3 percentage points to 2.9%, chiefly because of cheaper fuel and food.

in:
http://www.thisismoney.co.uk/investing/article.html?in_article_id=483583&in_page_id=166&ct=5

America in Terminal Decline? No Way, Says Geopolitical Expert George Friedman

by Aaron Task in Newsmakers

With its slumping economy, mountains of debt, ungodly deficits and overseas entanglements, many observers believe the end of the American era is at hand.

Not so, according to George Friedman, founder of STRATFOR, a global intelligence company.

In his latest book, The Next 100 Years, Friedman argues America's power on the world stage will actually increase in the 21st Century for three major reason:

* The immense size of the U.S. economy: The current crisis is painful and America's deficits are shocking on an absolute basis but are "trivial" relative to the country's net worth, which Friedman estimates is about $340 trillion.
* The unrivaled dominance of the U.S. Navy: Even in the digital age, control of the high seas is paramount in geopolitics.
* The ability of the U.S. to absorb immigrants, both culturally and in terms of the nation's relatively low population density.

in:
http://finance.yahoo.com/tech-ticker/article/237808/America-in-Terminal-Decline-No-Way-Says-Geopolitical-Expert-George-Friedman?tickers=^DJI,^GSPC,SPY,DIA,TLT,TBT,UDN

Why You Shouldn't Follow Warren Buffett

By Tim Hanson and Brian Richards

Have you ever bought a stock because Warren Buffett bought a stock? You know, like Coca-Cola (NYSE: KO) or Wells Fargo (NYSE: WFC)?
If so, you're not alone. In fact, thousands of investors follow Buffett's every move, and that's such a hassle for the Oracle of Omaha that he has actually (unsuccessfully) lobbied the SEC to give him a dispensation from disclosing his stock picks.
Heck, it got so bad that in 1999, Coca-Cola was trading for as much as 40 times earnings -- an unbelievably high number for a steady consumer staple that sells sugar water.
Yet, if you believe Alice Schroeder's account in her Buffett biography The Snowball, Buffett wouldn't sell Coca-Cola even then because "the price of Coca-Cola could plunge as a result."
After all, if folks had mindlessly followed Buffett in, thereby driving up the price, they would just as surely follow him out.

in:
http://www.fool.com/investing/international/2009/04/30/why-you-shouldnt-follow-warren-buffett.aspx

Triste primero de mayo

Con toda certeza, este 1º de mayo del 2009 es un día triste para los trabajadores. La crisis internacional, que comenzó como una crisis financiera, ya se trasladó plenamente al sector real (productivo) de la economía y todas las instituciones pronostican caídas del PBI mundial y regional. Para muestra solo un botón: el PBI mundial caerá 2% en el 2009.
Quienes más sufren la crisis son los trabajadores. En los 27 Estados de la Unión Europea, solo en marzo se perdieron 419,000 empleos. La tasa de desempleo ya llegó a 8.9%: 20 millones de personas. Lo peor es que en el 2009 habrá 3.5 millones de desempleados adicionales y la tasa de desempleo subiría hasta el 13%.

in:
http://www.larepublica.pe/cristal-de-mira/01/05/2009/triste-primero-de-mayo

Expectativas económicas de Japón son aún peores

El banco central del imperio reveló que, a su criterio, el producto bruto interno se contraerá este año más de lo previsto y habrá mayor deflación. En verdad, la segunda economía del mundo no termina de superar la perdida década y media de 1990 a 2004.

A criterio del ente emisor, el país continúa sumido en baja demanda interna y externa. En el segundo caso, a causa de la crisis sistémica iniciada hace más de diez meses en Estados Unidos y transmitida a la Unión Europea.
“Las condiciones económicas se han deteriorado apreciablemente”, sostiene un comunicado del BdeJ. Por ende, durante el año fiscal 2009 –va de abril pasado a marzo de 2010- el PBI se contraerá 3,1%, no el proyectado 2% de hace tres meses.

in:
http://www.mercado.com.ar/nota.php?id=361122

It's May, Time to Go Away?

There was a time in early March when we called attention to the extreme sense of negativity in the stock market and cited it as one reason to think we were in store for a meaningful rally. That view proved prescient, but as much as we were struck by the level of negativity then, we are now struck by the level of optimism now.
We concur with the view that the economic data, and earnings news, have signaled that the economy is in a bottoming process. However, the market is showing a propensity these days to view everything with rose-colored glasses and that perspective often coincides with near-term tops in the market.
The difference of opinion today, versus early March, is that we don't expect there to be a selloff that would match the magnitude of the recent rally. Conditions are better on a number of fronts. Credit spreads have narrowed considerably, commodity prices have risen, companies have regularly beaten too depressed earnings estimates and, as noted above, there is a growing body of economic evidence that suggests the worst of the downturn is behind the market.

in:
http://news.briefing.com/GeneralContent/Investor/Active/ArticlePopup/ArticlePopup.aspx?ArticleId=NS20090501085339PageOne

Where is Superman? Is he “Deep Captured”?

By Rich Hartmann - Miss America

Look, up in the sky… It’s a bird… it’s a plane… No! It’s, it’s …Chicken Little?

Time and again we hear the media, politicians, and financial “experts”, in an effort to protect their careers and/or reputations, say: “NO ONE SAW THIS FINANCIAL TSUNAMI COMING!” There are a few media clowns now coming out of the woodwork that claim with their 20/20 hindsight, that they saw it…. “but just underestimated its size a scale… and that no one could have predicted that!” (or even better, amongst those clowns 500 bullish articles, they wrote 1 skeptic article, for which they now hold to the light of prophetic genius.)

Well, to most of the long time readers here on this RGE blog and the various other terrific financial blogshere locations… We know that the statement “NO ONE SAW THIS COMING” just ain’t true! For those of us, that gathered here (and throughout the internet), and spent the last few years studying this crisis and warning our family, friends and anyone else who would listen, that statement is an infuriating slap in the face and a boldface lie!

Chicken Little becomes Dr Doom

Prior to the 2008 collapse, we watched first hand, the media puppets call people like Nouriel Roubini “Chicken Littles”. Amazingly enough, upon being proven right, that the sky was indeed falling, the most prophetic “chicken little” of them all, was given a new nickname. Dr Doom! Dr Doom??? …an evil comic book character that is bent on destruction?!?!?! (Yes, many others have worn that tag before Nouriel. …but the beauty of this tag/name is, the bullish media can start to use it against him when they need optimism over reality) So Dr Doom is the name we came up with. …just because he was nice enough to point out to the public what was about to happen.

(I guess it makes more sense now. To the media, and those in control of the media who wanted their fictional world of fake profits to continue, Nouriel was the most evil man around! Damn him for exposing this façade! Damn him for bringing an end to the fake corrupt profits! Damn him for telling the truth about the economy!)

in:
http://www.rgemonitor.com/globalmacro-monitor/256591/where_is_superman__is_he_deep_captured

Los moros y cristianos de la crisis

Economistas estrellas como Paul Krugman y Nouriel Roubini –el profeta de esta crisis- se baten en duelo dialéctico con pragmáticos del capital como George Soros y defensores a muerte del libre mercado como Niall Ferguson para establecer: a) quién tiene la culpa de esta crisis b) cómo salir de ella
Bajo el paraguas de la prestigiosa The New York Review of Books y del PEN americano se juntaron el Premio Nobel de Economía y azote neokeynesiano de Obama, Paul Krugman; su colaboradora habitual, Robin Wells; George Soros, el controvertido financiero y filántropo de origen húngaro, lo más parecido a un magnate de izquierdas; el historiador económico británico y profesor en Harvard, Niall Ferguson; Nouriel Roubini, el académico que reivindica haber previsto esta crisis por lo menos desde 2008; y un senador de los Estados Unidos, Bill Bradley.
Con tanta gente para ponerse de acuerdo en una hora y media era difícil alcanzar otra cosa que conclusiones muy generales. Básicamente: que esta crisis es global y que aún falta para salir de ella. El público suspiró pasmado.

in:

Buffett Says Economic Pearl Harbor is Over

By: Dan Weil

Investment legend Warren Buffett says the worst has passed for the economy, but that we’re not out of the woods yet.
Last fall in an interview with CNBC, he said the economy was in a “Pearl Harbor” stage.
Asked now by the network whether the economy is still in that situation, Buffett says, "Well, no. We're at a war now to some degree, but Pearl Harbor was September.”
He explains, “At that point, you could have lost the war. And there was a strike at the heart of the American system, the financial system.”
But, Buffett says, “We got past that. Some of the right decisions were made then, so I give people great credit for doing that. The war isn't over, though."

in:
http://moneynews.newsmax.com/streettalk/buffett_pearl_harbor/2009/05/01/209725.html

The Bond Fallacy

The bond bandwagon has gotten pretty crowded these days, with big names like Rob Arnott and Gary Shilling both writing that bonds — not stocks — appear to be the best long-term investment vehicle.
In his Return on Investment column for The Wall Street Journal, however, Brett Arends counters the arguments that the bond proponents (and in particular Arnott) have been raising.
“Obviously bonds, especially Treasurys, held up well during last year’s crisis,” writes Arends. “And they can make an important part of a portfolio, especially at the right price. But anyone hoping for a repeat of the last thirty years is probably dreaming.”

in:
http://theguruinvestor.com/2009/05/01/the-bond-fallacy/

Pick Your Poison: Inflation, Deflation, Stagflation

Analysts see possible scenarios for each of these to strike the U.S. economy. Stay alert and invest accordingly

By Lauren Young

Will the real 'flation please stand up?

Experts are arguing about where the U.S. economy is heading as the global financial system tries to right itself. Is it on the path to inflation, deflation, or, worse, stagflation? Rising unemployment and excess production capacity are making it hard for the U.S. economy to climb out of recession. And that, in turn, is putting a strain on pricing power and wage growth—raising fears of deflation, which develops when a broad decline in prices amid falling demand feeds further price-cutting.

in:
http://www.businessweek.com/magazine/content/09_18/b4129068653155.htm?chan=magazine+channel_personal+business&chan=investing_investing+index+page_top+stories

“Si los planes de estímulo funcionan, Estados Unidos puede llegar a crecer un 4% en 2010”

El presidente y consejero delegado de Permal Asset Management, Isaac Souede, asegura que la clave para la economía mundial pasa por la posible recuperación de Estados Unidos. “La gente espera una recuperación lenta. Pero tras recesiones fuertes se suelen dar recuperaciones también fuertes. Si todos los planes funcionan, la recuperación podría ser importante en 2010, con un crecimiento de entre el 3% y el 4% del PIB, aunque no sería sostenible en 2011. Pero si no funcionan los planes, la economía no crecería en 2010 y el S&P 500 se podría ubicar en los 500 puntos”, dice.

in:
http://www.fundspeople.com/component/content/article/1130.html

Stress test: aprovação dos grandes bancos é mais mercadológica do que real

A hora de saber como os bancos norte-americanos se saíram no teste de estresse está perto. Citando autoridades do governo, o Wall Street Journal afirmou que os órgãos reguladores dos Estados Unidos começarão a informar as instituições financeiras sobre a performance no teste a partir da próxima sexta-feira (24), antes de abrir as informações ao público, no dia 4 de maio.
Dos 19 grandes bancos que participaram do teste, entretanto, não se espera surpresas. Os resultados dos testes já têm sido ventilados desde o início deste mês, quando o jornal The New York Times afirmou, citando fontes extra-oficiais, que todas as instituições maiores haviam passado na provação. No dia 22, o secretário do Tesouro, Timothy Geithner, deu sinalizações similares.

in:
http://br.noticias.yahoo.com/s/24042009/22/economia-negocios-stress-test-aprovac-atilde.html

How Can Value Investors Apply Philip Fisher’s Investment Principles?

I first read Philip A. Fisher’s classic book on investing several years ago after first reading everything I could find written by Benjamin Graham and Warren Buffett. I picked up Common Stocks and Uncommon Profits primarily because of a quote by Warren Buffett on the cover of my copy. That quote carries a strong endorsement: “I am an eager reader of whatever Phil has to say, and I recommend him to you. — Warren Buffett”. What is fascinating is that the investment approach described by Fisher is, at first glance, about as different from Benjamin Graham’s approach as one can imagine. If Graham is known as the father of value investing, Fisher is equally well recognized as the father of growth investing. I believe that the combination of both approaches has been responsible for the amazing growth of Berkshire Hathaway over the past four decades.

in:
http://www.gurufocus.com/news.php?id=53654

How Warren Buffett picks stocks in a bear market

Dan Barufaldi, Investopedia.com

In times of economic decline, many investors ask themselves, 'What strategies does the Oracle of Omaha employ to keep Berkshire Hathaway on target?'
The answer is that the esteemed Warren Buffett, the most successful known investor of all time, rarely changes his long-term value investment strategy and regards down markets as an opportunity to buy good companies at reasonable prices.

in:
http://www.rediff.com/money/2009/apr/24perfin-how-warren-buffett-picks-stocks-in-a-bear-market.htm