Was Friday's Trading the First Sign of a Carry Trade Reversal?

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View This Message on the Web December 7 Was Friday's Trading the First Sign of a Carry Trade Reversal? By Jon D. Markman Contributing Writer Money Morning Although it’s too early to know for sure, Friday’s action suggests we could be seeing the earliest stages of a carry trade reversal. Remember that hedge funds and other highly leveraged institutional investors have been borrowing here in the United States at ultra-low interest rates, selling the dollar short, and using the proceeds to snap up stocks, bonds, and gold. Stocks rocked and rolled on Friday as traders reacted to a better-than-expected jobs report for November. Payrolls dropped just 11,000 and the unemployment rate fell to 10%. The consensus was expecting a payroll drop of 100,000 and the unemployment to remain at 10.2%. Sure, employers still made cuts. But by all indications were on the cusp of a job market turnaround. An initial early morning blast took small cap stocks up as much as 3% before sellers emerged. The main concern was that a strong economy will force the U.S. Federal Reserve to drop its easy money policy that has it purchasing some $3 billion in mortgage-backed securities (MBS) per day while keeping short-term interest rates pegged near zero. The futures market now pegs the probability of an interest rate increase by August 2010 at 100%. Read Full Article » You've never seen this before... A "special situation" so perfectly timed we can guarantee you triple-digit gains...or agree to pay you cash money. This is a first for us. You must see 225% in gains minimum from this situation-or we'll pay you $995. There's no catch- except you have to act now. See why here... Sponsored content Hot Stocks: Is Markel Corp. a Berkshire Hathaway in the Making? Larry D. Spears Contributing Writer Money Morning Ask any 10 U.S. investors to name the most-admired American financial figure and it’s a pretty good bet at least nine of them will answer Warren Buffett. Thus, it should come as no surprise that other firms would want to emulate the business strategies of Buffett’s company, Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) – which is exactly how Markel Corp. (NYSE: MKL) is making its name on Wall Street. Like Berkshire, Markel Corp. lists its primary business as insurance – but it’s no State Farm Insurance or Allstate Corp. (NYSE: ALL). Rather than selling auto or homeowners policies directly to consumers, Markel and its subsidiaries (listed below) sell specialty insurance products and programs in an assortment of niche markets. Read Full Article » Buy, Sell or Hold: Johnson & Johnson (NYSE: JNJ) Brings a Strong Business Model and 100 Years of Experience Into 2010 By Horacio Marquez Contributing Editor Money Morning I know Johnson & Johnson (NYSE: JNJ) very well. I live in the heart of big pharma country: Princeton, N.J. And I have been interacting regularly with many people in this industry, including all levels of the Johnson & Johnson management for years. Johnson & Johnson is a company that my peer analysts and I have admired for decades. And this well-deserved admiration goes well beyond the financial community. Let me tell you why. JNJ has a sound business model that emphasizes the development and marketing of top quality drugs and benchmark consumer products. Its strong and stable profit margins – with gross profit north of 70% – and its consistent growth over more than a century are matched by only a handful of companies. But JNJ is much more than a successful business model. The company is permeated by a strong culture of responsibility that is embodied in its credo. While many companies have a set of corporate principles, JNJ actually believes and practices theirs. Johnson & Johnson employees take their responsibilities very seriously and they act quickly, prudently and fairly to fix problems. Read Full Article » Money Map Report Login » Why Is Wall Street Buying this Tiny Oil Stock - But Not Telling Investors? Goldman Sachs and Barclays are building huge positions in a tiny oil company right now. But they won't disclose the details of their investment to the media - or even their own clients! Why? Their target is a microcap company that's discovered 40 billion barrels of oil, worth $2.8 trillion! It's just days away from bringing this mother lode to market. By investing ahead of the event, these banks could pocket 46 times their money. This report reveals what they're up to. It also shows you how you could join them - very discreetly - to make just as much. Please go here for details. 12/04/2009 Healthcare Reform May Not Cut Spending or the Federal Deficit 12/04/2009 Low November Job Losses Shock, but The Jobless Recovery Continues 12/03/2009 Bank of America Hopes to Lure Top Shelf Talent by Paying Back TARP Loans Feature China Winning the Global Currency Game See More » The Week Ahead December 7 Consumer Credit (10/09). December 8 No major economic releases. December 9 MBA purchase applications index. December 10 U.S. Trade Balance (10/09)   Weekly Jobless Claims (12/05/09) December 11 Retail Sales (11/09) Consumer Sentiment (12/09)   Inventories (10/09) Worth Considering This Little-Known Billionaire Tripled His Net Worth While Buffett Lost $10 Billion Buy, Sell, or Hold? by Horacio Márquez Insights on Income by Martin Hutchinson Inside Wall Street? by Shah Gilani When and How the U.S. Economy Will Recover Three Big Reasons Oil Prices Will Rally Back Big Time Alternative Energy Asia Commodities Europe Global Markets Gold/Precious Metals Oil Real Estate Technology U.S. Economy

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