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Articles
Some Investors Flourish Despite Economic Tumult, NYT
An economy stuck in neutral. Unemployment that refused to go down. And a near financial disaster in Europe.
Despite all the negatives — and a few surprises, like the terrifying “flash crash” of the stock market in May — 2010 proved in the end to be a pretty good year for investors, especially if you were lucky enough to own shares in highflying technology stocks, old-fashioned industrials or gold.“In many cases, the conventional wisdom was wrong,” said Byron R. Wien, a veteran market strategist at the Blackstone Group. “The market still managed to do well, and the rise in gold and other commodities was a big surprise.”The typical equity fund in the United States returned nearly 19 percent in 2010, while the Standard and Poor’s 500-stock index rose 12.8 percent. That was below the gains of 2009, when the markets rebounded from the financial crisis and the S.&P. index soared 23 percent.
By Nelson D. Schwartz, Dec. 31, 10 NYT
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A Little-Known Strategy for Cutting Mortgage Payments, NYT
"Recasting": works well for those unable to qualify for refinancing amid the ever-toughening credit guidelines — perhaps because they are self-employed or have less-than-stellar credit — as well as for those with extra cash, like a year-end bonus.
HOMEOWNERS looking to lower their monthly mortgage payments and also save some on interest may be able to do so without all the hefty fees and daunting credit requirements of refinancing.A little-known strategy, called “recasting,” or “re-amortization,” is available through some mortgage lenders and servicers.It involves paying off a lump sum of the principal amount and asking to have the monthly payments reset according to the original interest rate and loan terms. The lump sum reduces the principal, so your new monthly payments decrease slightly and you save on interest paid over the life of the loan.Lenders typically charge an administrative fee of $150 or more for this service, though borrowers are not required to pay closing costs or submit to another credit check, because they are not asking for a new loan.
By Lynnley Browning, Dec. 30, 2011 NYT
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The Five Species of Luxury Consumer, WSJ
With luxury on the rebound, companies once again are obsessed with the mythical “luxury consumer.”
This dream spender is, we are told, wealthy, young, beautiful and prone to buying $4,500 bicycles for their dogs. As for the global financial crisis…well, what financial crisis? But a new report from BCG Research digs deeper to divide the luxury consumer into five distinct species. BCG surveyed six luxury markets–the U.S., Brazil, China, Japan and Russia, and Europe. They found that each of the five species has experienced the financial crisis differently. They are:
By Robert Frank, Dec 21, 2010 WSJ Wealth Report
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Link to Boston Consulting Group Report
Experts Citing Rising Hopes for Recovery, NYT
The measured optimism is reminiscent of the mood a year ago, when the economy seemed to be reviving, only to stall again in the spring amid widespread fears caused by the debt crisis in Greece and other European countries.Even so, economists are increasingly upbeat about the outlook, saying that while the economy in 2011 will not be strong enough to drive unemployment down significantly, it should put the United States on its soundest footing since the financial crisis started an economic tailspin three years ago.
WASHINGTON — Eighteen months after the recession officially ended, the government’s latest measures to bolster the economy have led many forecasters and policy makers to express new optimism that the recovery will gain substantial momentum in 2011.Economists in universities and on Wall Street have raised their growth projections for next year. Retail sales, industrial production and factory orders are on the upswing, and new claims for unemployment benefits are trending downward.Despite persistently high unemployment, consumer confidence is improving. Large corporations are reporting healthy profits, and the Dow Jones industrial average reached a two-year high this week.The Federal Reserve, which has kept short-term interest rates near zero since the end of 2008, has made clear it is sticking by its controversial decision to try to hold down mortgage and other long-term interest rates by buying government securities.
By Sewell Chan, Dec. 23, 10 NYT
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As Holiday Nears, Cash Registers Sing, WSJ
With the Help of Promotions and Steep Discounts, Final Weekend Before Christmas Brings U.S. Consumers Out to Shop...Even though many retailers started the holiday season early, with big promotions and sales before Thanksgiving, some may have saved the best for last.
In the countdown to Christmas, packed malls and long checkout lines indicate that U.S. consumers have been willing to come out and spend, at least when retailers offered deep bargains."This past weekend was a great contributor, with steady traffic on both Saturday and Sunday," said Bill Martin, founder of ShopperTrak, which tracks mall traffic...It didn't hurt that many retailers were pulling out the big guns, with some, like Aéropostale Inc., sailing past the half-off mark for merchandise, while others, including Gap Inc. were offering 30% or more off virtually all merchandise in their stores.Even though many retailers started the holiday season early, with big promotions and sales before Thanksgiving, some may have saved the best for last.
By Karen Talley, Dec. 20, 10 WSJ
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