Stock Market Shock Dictates Continued Avoidance Of Passive Long Positions

What does stock market dip mean for M&A?

financial crisis

Which cover: new articles | breaking news | earnings results | dividend announcements Get email alerts on This article was sent to 358,469 people who get the Macro View newsletter. Get the Macro View newsletter Long/short equity, special situations, growth at reasonable price, deep value Send Message| (2,287) Stock Market Shock Dictates Continued Avoidance Of Passive Long Positions Jan. 26, 2014 5:03 AM ET | by: Markos Kaminis Includes: BXDB , BXUB , BXUC , EPS , IVV , QQQ , RSP , RWL , SDS , SFLA , SH , SPXU , SPY , SSO , TRND , UPRO , VOO When I first offered a warning to investors on New Year’s Eve , it was not plainly obvious what was about to happen. Today, pundits are pulling out every possible excuse for why stocks are getting trashed.
Source: http://seekingalpha.com/article/1967931-stock-market-shock-dictates-continued-avoidance-of-passive-long-positions

The Myth of a Stock-Picker’s Market

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You can argue that it was profit-taking and investors not wanting to take the tax hit this year, Canally said. Its a reasonable argument given the types of stocks bearing the brunt of the pain. The four-worst performing sectors on the S&P 500 Index for 2014 are the same ones that hit their 52-week highs on Dec. 31. Since the beginning of the year, the materials sector has fallen 5.1%, consumer discretionary top ten stocks to buy right now stocks are down 5%, while industrials and energy stocks have both shed 4.9%.
Source: http://www.marketwatch.com/story/stock-investors-trash-market-darlings-face-apple-fed-2014-01-26

Stock investors trash market darlings, face Apple, Fed

Earnings Wall

Where she stops, nobody knows. But the conviction that stocks are due for a correction meaning at least a 10% slide is the worst-kept secret on Wall Street. Pundits have been opining for months about how stocks are overbought and investors are too optimistic. Its about time stock prices turned south. Even a year without a meaningful correction is too long a stretch.
Source: http://www.marketwatch.com/story/why-a-stock-market-correction-should-make-you-happy-2014-01-24

Why a stock market correction should make you happy

They get computers to do it for them. High-frequency trading is a trading method, where co-located computers – as they are referred to – make billions, possibly trillions, of transactions per day, with the aim of scalping a few cents with each trade. This now accounts for over half of the stock market trading in the United States. High-frequency trading capitalises on the phenomenal speed of supercomputers in analysing and responding to market data Of course, human-beings cannot keep up with these computer behemoths.
Source: http://uk.news.yahoo.com/computerised-stock-market-trading-banned-123500043.html

Should Computerised Stock Market Trading be Banned?

For the past couple of years, market watchers have predicted M&A booms — thanks to such things as improving macro-economic conditions, generous credit and staggering corporate cash hordes. But those predictions have fallen flat, largely because many prospective buyers have been too nervous that they’d be overpaying. Basically the inverse of what happened after the financial crisis, when the universe of prospective sellers dwindled. There could be a case that the recent market moves would spark new M&A, since assets are theoretically cheaper than they would have been just one month ago.
Source: http://finance.fortune.cnn.com/2014/01/24/what-does-market-dip-mean-for-ma/

Here’s why they’re wrong. By Jan. 24, 2014 6:35 p.m. ET Here we go again. Every year, a chorus of investment professionals proclaims the arrival of a “stock-picker’s market” in which active managers will shine.
Source: http://online.wsj.com/news/articles/SB10001424052702304856504579338800864733042

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Student Loan Repayment Troubles? Don’t Delay

These colleges will pay your student loan bills

Forbearance means you can make reduced payments for a time; for example, while you are ill or if your monthly payments total more than 20 percent of your monthly income. In some cases, forbearance means you can stop making payments for a time. Interest continues to accrue during this time. Another place you can seek relief is from the court that approved the garnishment. Rules vary by state, but your creditor should have given you advance notice before garnishment. Now that they are garnishing your pay, your options are more limited.
Source: http://www.creditcards.com/credit-card-news/student-loan-bankruptcy-wage-garnishement-1294.php

10 Fun Facts About the Student Debt Crisis

Last Friday,Freedom Industries, the chemical company responsible for the chemical leak which contaminated drinking water in West Virginia, filed for Chapter 11 bankruptcy protection . The company faces 25 lawsuits, but by filing for bankruptcy protection, Freedom Industries is able to halt most litigation.Unfortunately, if Americans with student loan debt find themselves owing money on their student loans, it is nearly impossible to file for bankruptcy. In fact, debts from gambling and other consumer debts can be erased, but not education debt. These debts can continue to grow when a borrower is unable to pay, and can even follow a borrower to the grave. Removing bankruptcy protection from student loans has only benefited the lenders. In a leaked memo, Sallie Mae officials have listed preserving the inability to discharge education debt in bankruptcy as their second-most important goal .
Source: http://www.huffingtonpost.com/kyle-mccarthy/10-fun-facts-about-student-loan-debt_b_4639044.html

government to reimburse defaults, ‘AAAsf’ FFELP ABS ratings will likely move in tandem with the ‘AAA’ U.S. sovereign rating. Aside from the U.S. sovereign rating, defaults and basis risk account for the majority of the risk embedded in FFELP student loan transactions. Additional defaults and basis shock beyond Fitch’s published stresses could result in future downgrades.
Source: http://www.reuters.com/article/2014/01/21/ny-fitch-ratings-nelnet-idUSnBw216635a+100+BSW20140121

Fitch Maintains Nelnet Student Loan Trust 2005-2 & 2005-3 Sr. Notes on Negative Watch; Affirms Subs

In addition to garnishing wages, they are also allowed to garnish tax [read] refunds, Social Security checks, and any other government payments. Because student loans cannot be discharged in bankruptcy, it is usually recommended that former students come up with some way to make payments on the loan. If making the minimum monthly payments is too difficult, it might be time to consider loan consolidation. Through this process, student loans are essentially refinanced. Its possible to get a lower interest rate, a longer payment period, and better loan terms through consolidation. Do not make the mistake of expecting to get out of your student loans by filing bankruptcy.
Source: http://www.examiner.com/article/student-loans-and-bankruptcy

Student Loan Debt’s Identity Crisis

It determines the eligibility for financial aid, including federal loans, federal Work-Study programs and Pell Grants. In an ED-sponsored event dubbed “Datapalooza” held on January 15 in Washington, D.C., the Department promised to share data “responsibly” with guidance counselors to identify students who have started filling out their FAFSAs with a view toward helping them finish the complex form. It is not clear what data would be disclosed. Related Articles The Department of Education Set to Consider Changes to Parent PLUS Loans The plan is wrapped into the Obama administration’s goal to make college more affordable and tries to attack a nagging problem: the low FAFSA completion rate for disadvantaged college applicants. ED is considering the development of a FAFSA application program interface (API) that would, in a yet-to-be-specified way, help users deal with this document which is only available at FAFSA.gov and the ED Website. It’s also an opportunity for software developers and others in the IT space to get a piece of some vendor action.
Source: http://www.mainstreet.com/article/moneyinvesting/education-planning/student-loan-debts-identity-crisis

Student loans and bankruptcy

Law schools have been offering these programs for decades as a way to encourage young attorneys to pursue lower-paid public service jobs. And in 2008, Tufts University began offering repayment assistance to all graduates working in public service. Now dozens of private colleges have similar plans in place, and they too are offering the assistance to undergraduates in all fields of study. Related: Yale, Harvard, other colleges to court more low-income students The schools offer the pledge through the LRAP Foundation, which was founded in 2008 by Peter Samuelson, who used Yale Law School’s repayment program while doing human rights work in China. “It really made a difference in what I could do after graduation,” Samuelson said.
Source: http://money.cnn.com/2014/01/22/pf/college/student-loan-repayment/index.html

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Mrvl February 14th Options Begin Trading

The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 54%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.21% boost of extra return to the investor, or 40.44% annualized, which we refer to as the YieldBoost. Click here to find out the Top YieldBoost Calls of the S&P 500 The implied volatility in the put contract example, as well as the call contract example, are both approximately 37%.
Source: http://www.forbes.com/sites/stockoptionschannel/2014/01/16/mrvl-february-14th-options-begin-trading/

UPDATE 4-Goldman Sachs Q4 profit hit by lower bond trading revenue

Its return on equity, which measures how much profit it wrung out of its balance sheet, was 11 percent for 2013, higher than the 10 percent minimum that analysts say banks must produce to meet their cost of capital, but well below the 30 percent returns that Goldman generated before the crisis. MIXED RESULTS FOR EQUITIES The bank’s equity businesses turned in mixed results. Revenue from client stock trading fell 22 percent to $598 million, even as stocks hit new highs, while equity underwriting revenue doubled to $622 million as more companies tapped the market for capital. The bank’s own equity investments delivered a 25 percent increase in revenue to $1.40 billion.
Source: http://www.reuters.com/article/2014/01/16/goldmansachs-results-idUSL2N0KQ17D20140116

Citi profit disappoints as bond trading revenue drops

Unadjusted net income rose to $2.69 billion, or 85 cents per share, from $1.20 billion, or 38 cents per share, a year earlier. Citigroup shares were down 3.6 percent at $52.99 on the New York Stock Exchange on Thursday morning. The stock rose 32 percent in 2013, slightly less than the 35 percent rise of the KBW Bank Index (DJI:^BKX). SHEDDING BAD ASSETS Citigroup said late on Wednesday that it is selling mortgage servicing rights of $10.3 billion Fannie Mae (OBB:FNMA) residential first mortgage loans as it looks to reduce assets and expenses within its Citi Holdings division. Citi Holdings houses the portfolio of troubled mortgage assets the bank is winding down after they led to huge losses since the financial crisis.
Source: http://finance.yahoo.com/news/citigroup-adjusted-profit-rises-21-130714862.html

Trading Places: Brady and Manning

What if Tom Brady had been drafted in the sixth round by the Colts and formed a bond with Marvin Harrison and Reggie Wayne? Greg Garber tradingETF reached out to several players and front-office personnel to get their opinions on just how much the coaching and supporting casts have meant to these two quarterbacks. We’ll take it a step further and ask you: What if the players stayed put and the coaches switched sides? Cast your votes on all these scenarios and more below. If Tom Brady and Peyton Manning had switched places, how successful would Brady have been in Indy/Denver?
Source: http://espn.go.com/sportsnation/post/_/id/10303755/brady-manning

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Scorching Hot Biotech Tape: Small-cap And Mid-cap Stocks On Fire

U.S. Hot Stocks: Hot Stocks to Watch

Nektar Therapeutics (NASDAQ: NKTR) may be one of the top names to buy. The company’s clinical pipeline and list of big pharma partners are impressive to say the least. Despite having a whopping eight late-stage candidates, Nektar’s market cap is a paltry $1.3 billion. Its top drug Naloxegol is being developed as a once-daily oral tablet for the treatment of opioid-induced constipation, and it is licensed out to AstraZeneca.
Source: http://www.marketwatch.com/story/scorching-hot-biotech-tape-small-cap-and-mid-cap-stocks-on-fire-2014-01-10

Target fell after the discount retailer hiked its estimate of customers affected by the recent mass data breach to up to 110 million, saying sales had been “meaningfully weaker than expected.” Alcoa declined sharply after the aluminum producer reported fourth-quarter profit below expectations. Gap gained after the retailer said its yearly profit might hit the higher end of its guidance. Abercrombie & Fitch jumped after upping its full-year earnings outlook. NASDAQ — After trading in a 108-point range on either side of neutral, the Dow Jones Industrial Average ended in the red, down 7.71 points at 16,437.05, leaving it down 0.2 percent for the week and 0.8 percent for the year. Chevron fronted blue-chip losses that included 15 of the Dow’s 30 components.
Source: http://www.cnbc.com/id/101326378?doc=101326378%7cStocks%20blow%20hot%20and%20cold

Today Hot Stocks Newsletter Will Not Take New Subscribers

Baker Hughes Inc. ( BHI ) warned a disruption to its business in Iraq will reduce its fourth-quarter profit by about $80 million. The oil-field services company, which resumed operations by the end of December, had warned in November that it suspended operations in Iraq following a protest incident at a facility belonging to one of its units. Fifth & Pacific Cos. (FNP) unveiled a plan to change its name to Kate Spade & Co., the second time the clothing maker has changed its moniker since 2012, with the latest move tied to its narrow focus on the designer brand.
Source: http://www.nasdaq.com/article/us-hot-stocks-hot-stocks-to-watch-20140110-00271

U.S. Hot Stock Futures: Hot Stocks to Watch

Walgreen reported that after two months of increased same-store traffic away from the pharmacy, that measure fell again in December at Walgreen. But last month’s 1.3% drop from a year earlier was more than offset by the average purchase size rising 3.8%, pushing front-end same-store sales up 2.5% alongside a 5.3% jump in prescriptions filled. Overall same-store sales jumped 6.1%, the biggest gain since September despite the front-end underperformance. Watchlist: Private-equity firm Carlyle Group LP ( CG ) named former Federal Communications Commission Chairman Julius Genachowski as managing director and partner in its U.S. buyout team, with Mr.
Source: http://www.nasdaq.com/article/us-hot-stock-futures-hot-stocks-to-watch-20140106-00638

Stocks blow hot and cold after poor jobs report; Alcoa down on results

<img cheap stocks to invest in src=’http://www.stockrunway.com/wp-content/uploads/2011/10/Stocks-Pay-Monthly-Dividends.jpg&#8217; width=’500px’ style=’float:left;padding:5px’ />

The reason behind the temporary closure is basically based from complains of the people who claimed that they were not able to receive buy alerts that need. To address the issue, the company decided to track down this irregularity that is happening in their services and close their transaction to new subscribers. They are doing this to prevent new subscribers from being involved in the problem that the company is facing. To be able to accomplish the mission of the company, they were able to discuss everything with its workers as to how they are going to start looking for the answers regarding their clients complain.
Source: http://www.wnd.com/markets/news/read/26075461

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5 Things Student Loan Lawyers Ask Borrowers Who File For Bankruptcy

Fewer than 1,000 people try each year. Those who do are required to file a lawsuit against their lenders and then convince a bankruptcy judge that theyre so poor theres no hope of ever repaying the loans. Lawyers for the U.S. Department of Education, which guarantees most of the roughly $1 trillion in outstanding student loan debt, have been criticized for making unreasonable arguments to sway judges that struggling borrowers can afford their monthly student loan payments. Here are five of them.
Source: http://www.huffingtonpost.com/2014/01/07/student-loan-lawyers-bankruptcy_n_4557032.html

Student Loans Got You Down? 5 Tips to Make Them More Affordable

Additional defaults and basis shock beyond Fitch’s published stresses could result in future downgrades. Likewise, a buildup of CE driven by positive excess spread given favorable basis factor conditions could lead to future upgrades. Initial Key Rating Drivers and Rating Sensitivity are further described in the presale report published on Feb. 08, 2013. Fitch has taken the following rating actions: South Carolina Student Loan Corp 2013-1: –Class A note at ‘AAAsf’, Negative Rating Watch maintained.
Source: http://www.marketwatch.com/story/fitch-maintains-negative-rating-watch-on-south-carolina-student-loan-corp-2013-1-2014-01-09

Ways to Get Rid of Your Student Loans Without Paying

The student is being advised about financial support provided by the University such as short term loans to assist with living costs.” “The whole situation seemed completely unreasonable,” saidTsvetomir Dimitrov, a Bulgarian third-year Law student at the University of Northampton.He contacted SFE after a letter from his more? info… university stated he may have to begin tuition fee repayments. Both his loans have been frozen, and he was asked to provide bills, bank statements and tax information, he says. Luckily, his university have been understanding. The University of Northampton said:”This decision was taken by the SLC/SFE and has impacted a small percentage of students at the University of Northampton. The University’s Financial Guidance team has worked with students to provide the residency evidence to resolve the matter and reinstate funding.” Second-year Finance and Business Economics student Daniel Cegoreanu said that the situation is “nonsense.” He studies at the University of Bournemouth, and says he received an email from SFE asking him to pay back a 1,118maintenance grant.
Source: http://www.independent.co.uk/student/news/romanian-and-bulgarian-students-fear-exclusion-from-uk-universities-after-being-faced-with-loan-freezes-9052230.html

Fitch Maintains Negative Rating Watch on South Carolina Student Loan Corp 2013-1

Recently, the CFPB found that 33 million Americans may be eligible for public service loan forgiveness, which offers forgiveness of federal loans for anyone employed in a public service job for at least 10 years. Loan forgiveness can help lift your debt burden down the road, but you should consider applying as soon as possible. You can read more about loan forgiveness on my blog here . If you’re struggling to repay: 4. Enroll in income-based repayment (IBR) if your payments are too high to manage. Federal student loan borrowers who are struggling to make their loan payments are eligible to enroll in an income-based repayment plan.
Source: http://www.huffingtonpost.com/ethan-senack/student-loans-got-you-dow_b_4564481.html

Parent PLUS loan seen as parent trap

Department of Education (ED) is the lender. The maximum loan amount is the students cost of attendance (COA), determined by the school, less any other financial aid received. Tuition and fees, room and board, books and supplies, transportation and miscellaneous expenses are counted as COA, permitting annual borrowing of up to tens of thousands of dollars. The FAFSA , first available for filing by students each January for the next school year starting in the fall, serves as the PLUS loan application. The interest rate for Direct PLUS Loans is currently fixed at 6.4 precent. There is also a 4.288 percent loan origination fee when first disbursed on or after Dec.
Source: http://www.examiner.com/article/parent-plus-loan-seen-as-parent-trap

Romanian and Bulgarian students fear exclusion from UK universities after being faced with loan freezes

Absolutely not. Regulations change, you may not meet all the requirements, and you should major in something that you are interested in. What types of loan discharge programs are out there? Loan discharge programs include: Closed schools/school error If your school closed while you were attending it or within 90 days of leaving it, then you could be eligible. Also, if you withdrew from school and were not refunded the correct amount you could be eligible for loan discharge. But youre only eligible if you received your loans on or after January 1, 1986.
Source: http://www.mybanktracker.com/news/2014/01/10/ways-rid-student-loans-paying/

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First Week Of February 2014 Options Trading For Liberty Global (lbtya)

Should the contract expire worthless, the premium would represent a 2.23% return on the cash commitment, or 15.35% annualized at Stock Options Channel we call this the YieldBoost. Click here to find out the Top YieldBoost Puts of the Nasdaq 100 Below is a chart showing the trailing twelve month trading history for Liberty Global plc, and highlighting in green where the $87.50 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $90.00 strike price has a current bid of $2.30. If an investor was to purchase shares of LBTYA stock at the current price level of $89.25/share, and then sell-to-open that call contract as a covered call, they are committing to sell the stock at $90.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.42% if the stock gets called away at the February 2014 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if LBTYA shares really soar, which is why looking at the trailing twelve month trading history for Liberty Global plc, as well as studying the business fundamentals becomes important. Below is a chart showing LBTYAs trailing twelve month trading history, with the $90.00 strike highlighted in red: Considering the fact that the $90.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected.
Source: http://www.forbes.com/sites/stockoptionschannel/2013/12/31/first-week-of-february-2014-options-trading-for-liberty-global-lbtya/

Shares mixed in thin New Year’s Eve trading

The Standard & Poor’s 500 index rose three points, or 0.2%, to 1,844 and the Nasdaq composite rose 10 points, or 0.2%, to 4,164. The S&P 500 is headed for its best year since 1997. The index is up 29% in 2013, or 32% with dividends included. In the government bond market, the 10-year Treasury note continued to hover near the 3% mark. U.S. markets will be closed Wednesday for New Year’s Day .
Source: http://www.latimes.com/business/money/la-fi-mo-stocks-post-early-gains-on-last-trading-day-of-huge-year-20131231,0,6403999.story

Stocks post early gains on last trading day of huge year

Dow Jones futures rose 0.04 percent while S&P 500 futures gained 0.03 percent. In Asia, Hong Kong’s Hang Seng index gained 0.3 percent to close at 23,306.39 in a half-day session, buoyed by buying of mainland China-based banks and energy companies. Elsewhere in Asia, share prices rose in Malaysia, Singapore and India but fell in Australia, New Zealand and Taiwan. Markets were closed in Japan and other Asian markets for the New Year holiday. The Tokyo benchmark Nikkei 225 stock index rose 0.7 percent Monday to end 2013 at its highest level in more than six years, having gained 56.7 percent in 2013 – the biggest annual gain in 41 years.
Source: http://www.cbsnews.com/news/shares-mixed-in-thin-new-years-eve-trading/

TREASURIES-Prices dip on year’s last trading day

The S&P 500 is up 29.1 percent so far, on pace for its best year since 1997. The Dow is up 26 percent, the most since 1996. With 2013 in the books, investors have turned their attention to the beginning of 2014. Few expect next year to be as good to investors as 2013 was.
Source: http://abcnews.go.com/Business/wireStory/stock-futures-flat-quiet-end-year-trading-21367653

Stocks Barely Budge in Quiet End-of-Year Trading

The Tokyo benchmark Nikkei 225 stock index rose 0.7 percent Monday to end 2013 at its highest level in more than six years, having gained 56.7 percent in 2013 the biggest annual gain in 41 years. But other major markets were more cautious. Germany’s DAX drifted 0.4 percent lower on its last trading day, to 9,552.16, leaving it shy of its record high hit last week. View gallery Japanese Prime Minister Shinzo Abe poses for photographers after sounding a bell during a ceremony m The French and British markets, which will trade for a half day on Tuesday, also closed slightly lower, with the CAC-40 down 0.1 percent at 4,275.71, and the FTSE 100 down 0.3 percent at 6,731.27.
Source: http://news.yahoo.com/asia-shares-mostly-higher-eve-trading-030502520–finance.html

Asia shares mostly higher in New Year Eve trading

The Fed will see further changes early in 2014. Fed Vice Chair Janet Yellen is expected to be confirmed by the Senate to take the reins from departing chairman, Ben Bernanke. A final vote on her confirmation is set for Jan. 6. “There http://www.etftradingsignals.com are going to be a lot of personnel changes at the Fed,” said Thomas Simons, an economist at brokerage Jefferies & Co, noting also changes in the vice chair and other regional positions.
Source: http://www.reuters.com/article/2013/12/31/markets-usa-bonds-idUSL2N0KA0NJ20131231?feedType=RSS

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