December 30th, 2008
News that the federal government
finally decided to aid auto giant General Motors helped the market end the year on a
slightly positive note after it saw the worst declines in value in more than a
half century.
GM was given a boost today to the tune of $6 billion to help correct its financial problems. Shares jumped nearly 6 percent to more than $3.75 on the
news.
Ending at 8668, the Dow rose more than 2 percent today and will likely end on a
positive note tomorrow afternoon when the Dow closes out its last day of
trading for the year. 2008 hasn't been a good one to the Dow Jones. With losses of nearly 40 percent of its value since the beginning of the year, the Dow has many investors wondering how much farther it will continue to fall and where the market
will be this time next year.
Wherever the Dow ends up, next year one thing
is for sure -- the market can ill afford another huge drop in value.
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December 23rd, 2008
U.S. home-price index continued its decline this
quarter as it fell nearly 17 percent. Many analysts expect the prices to continue to
fall in the next quarter and possibly well into 2010. Where will it stop?
Most believe we have another year of watching the home-price index
fall.
Which cities this next quarter will likely see the biggest decrease
in value? Here are the top 10 worst markets in America for projected decreasing real estate value in the upcoming year:
1. Los
Angeles, nearly 25 percent.
2. Stockton, Calif., nearly 24.8 percent.
3. Riverside, Calif., nearly 24 percent.
4. Miami Beach, Fla., nearly 23 percent.
5. Sacramento, Calif. nearly 22 percent.
6. Santa
Ana-Anaheim, Calif., up to
22 percent.
7. Fresno, Calif., nearly 21.5 percent.
8. San
Diego, close to 21 percent.
9. Bakersfield, Calif., close to 20 percent.
10.Washington, D.C., nearly 19.9 percent.
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December 22nd, 2008
Even with heavy discounts on items ranging
from T-shirts to big screen LCDs, American consumers are wary of spending due to
continued financial hardship the nation is experiencing. Many analysts are
calling this one of the best shopping seasons on record, with many retailers
slashing prices to entice buyers; but the strategy doesn't appear to working as
hoped.
Deals are everywhere!
From buying a new car to buying bulk
produce, consumers are seeing just about everything discounted. All facets of
retail are seeing the discounts. Still though, the International Council of
Shopping Centers expects stores to post the worst numbers this season in more than 30
years.
Luckily, the shopping season won't officially end this Christmas.
Many wait for after Christmas sales or to return or exchange presents and many
experts feel this period will help in the final numbers. Shoppers may just be
waiting and scouting for such after Christmas deals, as many do each year. But
this year may see record sales.
Final sales figures are expected in late
January, but many are already writing this holiday season off as the worst in
nearly 50 years.
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December 17th, 2008
Global demand for crude oil continues
to decline as world economies
deal with the impact of continued recessions. Many expect OPEC will
continue to cut back on oil production through the next month and many feel this
will push the price per barrel to under $40. That amount is below
expectations.
Waning energy use in America and Europe brought about by cold winters have always
meant a decrease in oil production for OPEC. In spring, production should
increase. The decline in energy costs this winter has pushed down consumer
prices by the largest amount on record.
Overall, the decrease in oil
production, now the third time OPEC has made such cuts, is not likely to help
stabilize falling oil prices. Another, in spring, will likely be needed. So, expect the
price for oil and gas at the
pumps to continue to fall through the early spring.
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December 16th, 2008
News of the deep cut caused stocks to soar in early trading. By
noon the Dow was up nearly 2 percent as investors traded, optimistic that the government is set to do everything within its power to end this recession, now
the longest in a quarter century.
More good news is expected later in the
week, as many believe the federal government could announce its bailout for the
automaker giants. So, expect stocks to continue on its modest incline through
the week.
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December 08th, 2008
Just how long do we have
before the economy rebounds?
Goldman Sachs CEO Lloyd Blankfein believes
we have suffered through roughly 18 months of the current economic downturn. He
believes we have another year and a half of troubled times ahead.
While
it's difficult to predict when the economy will rebound, many analysts have turned to
historical trends in making their predictions. Most
indicators point to continued market struggles.
The government bailouts
seem to be reducing the impact of the recession; however small and large
businesses continue to scale back and consolidate resources. An additional
533,000 jobs were eliminated in November, which is the most in nearly 34
years.
There haven't been any signs of a possible quick turn around for
the economy, so the Goldman Sachs report could be correct. It is important
to note, however, that eight months ago, Goldman Sachs issued a report saying the economy
was in the "third or fourth" quarter of an economic downturn. Instead of three
quarters through the recession reported eight months ago we are only half way
through it eights months later.
Let's hope Goldman Sachs' next report says we are
nearing the finish line.
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December 05th, 2008
How far down?
Prices for regular grade
at the pump could drop to below a dollar a gallon. In many parts of the
country, prices have already fallen to below $1.50 a gallon.
Just how
long before prices reach the $1-a-gallon mark? It should be a few more months
before prices fall to that level. Experts are predicting prices could fall to
the expected $1 range around February or early March. It's not a certainty,
however. If the market eases itself out of its recession then oil prices for
crude would likely rise and bring with it increased prices at the
pump.
We may not reach the magic $1 mark, but prices at the pump
are the cheapest in over two years and that is good news.
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December 02nd, 2008
The current economic crisis has been "fueling" consistently lower
gas prices at the pumps. Fuel consumption worries have pushed the price
of crude oil down more 60 percent since the summer.
Many states are reporting
areas where gas prices per gallon are as low as $1.50 and only three states
still have averages high than $2. Alaska, Hawaii and New York see the
highest prices for gas in the nation, but even Alaska's high, which is the
nation's, is still close to a $1 cheaper than the national average just 6 months
ago.
Prices across the country are expected to continue dropping during the
next few months. Many experts predict price may fall to pre-2004
levels, with many believing the price will continue to drop until the economy
stabilizes and shows signs of recovery.
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December 01st, 2008
While not surprising to most home owners, prices for homes have dropped significantly in the past couple of years. Word comes this week that home values across the country have fallen again this quarter for a 26th consecutive month.
Home values are now off an average of 23 percent since their peak in June 2006. The continued decline has worsened over the past 12 months compared to the previous 14-month span.
The weakest markets of Phoenix, Las Vegas and San Francisco showed an average of 30 percent decrease in value over the past year. The least affected cities were Dallas and Charlotte, which were able to resist most of the valuing. Their decline in value only averaged around 3 percent.
Foreclosures remain at record highs and no relief is within site. There is little doubt that a year from now the decline will have only continued.
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