Analysis of security values grounded in basic factors such as earnings, balance sheet variables, and management quality. Fundamental analysis attempts to determine the true value of a security, and, if the market price of the stock deviates from this value, to take advantage of the difference by acquiring or selling the stock. Fundamental analysis may involve investigating a firm’s financial statements, visiting its managers, or examining how a particular industry is affected by changes in the economy.

[CaRP] Connection timed out (110)
How Far Will Housing Prices Fall?
We are repeatedly asked how far housing prices will fall and when home prices will bottom out. The answers to these questions are complicated. The current housing slump is without precedent, both in terms of breadth and magnitude. In addition, home prices are measured several different ways and the magnitude of price changes varies considerably.

Fannie Mae & Freddie Mac Developments
The Federal Reserve and U.S. Treasury Department announced a series of measures to bolster confidence and the liquidity position of Fannie Mae and Freddie Mac. The Federal Reserve announced Sunday night that it will allow Fannie Mae and Freddie Mac to borrow from the discount window at the primary credit rate ?should such lending prove necessary.? Borrowing would be collateralized by U .S. government and federal agency securities. The Fed noted that the move is intended to supplement the

Hong Kong Chief Executive Donald Tsang, his popularity at a record low
LATIN AMERICA Argentina Argentine central bank President Martin Redrado said emerging economies are coping with a global credit squeeze and helping to shore up economic growth across the world. “Emerging markets are weathering very well for the first time a storm that has not been produced in emerging markets,” he said in an Bloomberg Television interview in Aix-en- Provence, France. “The deceleration will not be so big in the world economy because of the strength of emerging markets.”

Headwinds Intensify
U.S. Review Headwinds Intensify Economic activity still appears to be holding up at a pace that is consistent with at least modest economic growth. This week had a relatively light economic release schedule but the reports that were released tended to come in stronger than expected. Major reports include the ICSC chain store sales figures, which came were up 4.3 percent year-to-year. Chain store sales are clearly being bolstered by tax rebates. Most of the impact has been at discount stores

US: Smaller trade deficit & surging import prices
The May trade balance showed an unexpected improvement. The smaller deficit of 59.8 billion $ (60.5 billion $ in April and 62.5 billion $ expected) was due to a surprise decline in the quantity of oil imported that overcompensated for the higher oil prices. The quantity of oil imported was the lowest since October 2002. Taking a step backward, the improvement in the real trade deficit was impressive: 43.6 billion $ versus 46.7 billion $ previously. Looking at the April/May combined deficit

Financial concerns about Freddie & Fannie hit Treasuries, equities and dollar
Markets: Fixed Income On Friday, US Treasuries had an ugly session, but so had global equities and the dollar. It doesn?t happen quite often that all three markets at the same time go the same direction. Concerns about the financial stability of Fannie Mae and Freddie Mac was the dominating trading theme, but also soaring oil prices on fears that Israeli air forces were practising for an attack on Iran and Treasury-unfriendly eco data were playing a role in the Treasury market. The European

$1.6 Trillion in Losses and Counting
In this issue: $1.6 Trillion in Losses and Counting Banks Start to Reduce Their Lending Take Freddie Mac. Please. The Ugly Muddle Through Once Again, the BLS Numbers Paint a False Picture Las Vegas, Maine, and a Wedding It seems that with each passing month the estimates for losses in the international banking system keep rising. This time last summer the largest estimates (from credible sources), if memory serves me correct, were around $400 billion, give or take a few months. By the end of

Websites You May Want To Consider
When it comes to trading and trading education, there are thousands of companies and websites trying to grab your eye balls and dollars. Most are slick marketing with little value so what is the new trader to do? Good places to start are the actual exchange websites for the following reasons: 1) They are the home of the “markets” we trade. The exchanges want you trading their products which is why they are so helpful both online and with phone support. 2) The education departments at the

Beset on all sides
Plunging business confidence and continued pressure on households has put the acid on the Reserve Bank to deliver some relief soon. But this week the focus turns to the RBNZ?s other problem ? inflation is on the rise and heading well outside the target range. Retail sales fell 1.2% in May, dominated by a 14.8% fall in motor vehicle sales. The car market is under more pressure than most from tight credit, high interest rates and rising petrol prices, with petrol breaching the psychologically

USD close to record low
Oil rose to new record high and fell again U.S. takes bold steps NZ retail sales fall steepest in 4 years Today?s main events: GBP PPI EUR Industrial Production GBP RICS house Price Balance American Time Zone: USD close to record low The dollar dropped to within a cent of the alltime low against the euro on concern the U.S. government may be forced to take over mortgage lenders Fannie Mae and Freddie Mac. Oil rose to new record high Crude oil and gasoline rose to records on growing concern

Treasury to lend to Fannie and Freddie, Bush backs Israel plan for strike on …
- U.S. Treasury Secretary Paulson on Sunday asked Congress to approve a rescue package that would give officials the power to inject billions of federal dollars into Freddie and Fannie through investments and loans. The Fed also announced it would make one of its short-term lending programs available to the two companies. Some officials briefed on the plan said Congress could be asked to extend the total line of credit to the institutions to $300B, according to the New York Times. To “protect

Surprise Narrowing of Trade Deficit in May
Surprise Narrowing of Trade Deficit in May The trade deficit narrowed to $59.8 billion in May from $60.5 billion in April. Exports of goods and services increased 0.9% in May after a 3.7% gain in April. It is widely predicted that exports will continue to make a significant contribution to GDP in the quarters ahead. This view may have to tempered somewhat because latest economic reports from abroad are less sanguine than have been in recent months. Economic reports from the European Union are

Mixed news from the US this week
Spreads have remained more or less stable compared to last week but intraweek volatility has been substantial on the back of some mixed news from the US. Bernanke has indicated that the primary dealer lending facility will be extended into 2009, but markets turned sour after questions were raised over the solvency of Fannie Mae and Freddie Mac. In Denmark one of the larger mid-sized Danish Banks, Roskilde Bank, has put itself up for sale. Despite substantial volatility during the week, spreads

U.S Market Update
- The plunging equity valuations of the GSE’s continue to exhibit a stranglehold over US stock markets. The New York Times reported overnight that the Bush administration was mulling a government takeover of FNM-43% and FRE-48%, with the report speculating that a buyout could leave shareholders with nothing. The White House later declined to comment on its deliberations, noting that the best thing for the GSEs would be for Congress to enact oversight legislation. After the open, Treasury

Mortgage tremors rocking the financial world!
he ground is shaking. The buildings are swaying. Now, you have to wonder how many of them will come tumbling down. I’m talking about the major financial institutions in this country. The tremors in the mortgage market that first started rumbling a year ago have escalated. And now they’re ripping through the industry with the force of a 9.0 earthquake … It’s no longer just mortgages that are shaking the biggest banks, brokers, and insurance firms. Auto loans, credit cards, commercial real

Widening EMU output gap to keep core inflation in check
Growth. Italy is teetering on the brink of recession, Spain?s economy is in free fall, France is ailing, and even Germany can no longer escape the global downward pull: After the strong start into the year, German GDP is expected to have contracted this spring. And the economy will continue to merely plod along over the coming quarters (pages 2-4). Inflation. GDP growth persistently below trend EMU-wide will, however, see core inflation moderate again in the mid-term. Our output gap model

Newsfeed display by CaRP