Tuesday, August 23, 2011
Standard & Poor’s downgraded the credit rating of Sino-Forest on Tuesday from a B+ to a B. They did this because the investigation into the allegations of fraud for Sino-Forest is taking longer than first thought. S&P also dropped the rating from Sino-Forests notes and convertible bonds from B to B-. A credit analyst on S&P said if the allegations are to become true, the ratings will drop even further. It is a little strange that Sino-Forest is delaying the investigation, maybe they have something to hide?
Posted by Sumreet at 1:15 PM
Gold fell for the first time today out of seven sessions. Gold is up 16% in August, which is looking like its best month since September 1999. Gold hit the all-time high this week because the Federal Reserve Chairman announced that further measures will be implemented to stimulate the US economy. Even with this news, gold’s climb in the past few weeks has surprised most of the market. With this increase, even if gold fell $150, it would still be a good buying opportunity for most investors.
Posted by Sumreet at 12:45 PM
Monday, August 22, 2011
Gold rose to a record just above $1,890 an ounce in New York and London on the basis of concerns about slowing economic growth and debt crises. This also preempted platinum to rise to a three year high. Gold has been up 2.3% to $1,894.80 in London today and was up 1.8% to $1,885.90 in New York. This is the 11th year Gold has been in the bull market which has been the longest winning streak since 1920. Gold will keep being in demand as investors are worried over a recession in the US and the European debt problems.
Posted by Sumreet at 1:20 PM
Tuesday, August 9, 2011
Stocks rose this morning as investors were anticipating the Fed’s statement this afternoon. The Fed disappointed investors by saying risks to the economy has risen. This caused the markets to fall this afternoon. They also said they need to keep interest rates extremely low and hope to keep them low until 2013. The Dow Jones industrial average is down 0.14% or 14.76 points to 10,795.09 today.
Posted by Sumreet at 2:27 PM
Monday, August 8, 2011
Standard & Poor’s downgraded the credit ratings of Fannie Mae and Freddie Mac and other long-term U.S. debt companies today. All of the downgrades were from AAA to AA+ which is the same downgrade Standard & Poor’s made of long-term U.S. government debt last week. S&P said these companies and banks have debt that is exposed to government debt. These companies credit rating relies on the government’s ability to pay their own creditors. After the downgrades stocks fell. The S&P 500 index dropped 3.4% and the Dow Jones industrial average fell 2.8%.
Posted by Sumreet at 1:49 PM
Verizon Communications shares fell 2.1% this morning after almost 45,000 employees went on strike. Their wireline unit went on strike which is the provider of traditional phone services as well as internet and FiOs television services. Verizon has wanted to keep costs low for their wireline business for a while now. To accomplish this Verizon has proposed cutting pensions, making employees pay more for healthcare and the change of some work rules. This has caused employees to strike and it is estimated that the strike costs Verizon $1 million to $2 million a day. Shares are down 2.23% or 78 cents to $34.27 this morning.
Posted by Sumreet at 10:37 AM