This Rally May Need a New Source of Fuel
IN early March, when stocks fell to 12-year lows, many investors were confident of at least one thing: stocks were cheap. [more]
Well, I have just about had it. Every day I spend time trying to wade thru the dreck trying to find investment related info or a fair minded commentary on a wide range of my interests and I always hit the blog list. I'm only a member since November so I realize for the vets here this is probably the 50th post on this subject. Maybe by the time I've been a member that long I'll be able to laugh this off too. But I doubt it. [more]
A public-private project to capture and store carbon dioxide emissions that was abandoned by the Bush administration is being restarted,Steven Chu, the energy secretary, announced Friday. [more]
REITWeek 2009: Low-Leverage REITs May Lead ’90s-Style Real Estate RevivalPanelists at Industry Confab Predict a New Wave of IPOs, Consolidations and Acquisitions as Investment Trusts Raise Equity to Deleverage and Get in Position to Buy Troubled AssetsBy Randyl DrummerJune 10, 2009
Guarded optimism returned to the hallways at NAREIT’s conference last week in New York City, replacing the economic gloom and doom AMB), said that unlike debt-free companies like Microsoft and Cisco, it’s very difficult for real estate companies to operate without leverage.
"Real estate has this huge private market on the side that is highly levered. I maintain it’s because nobody is prepared to tell their investors that real estate is a low teens return business," Moghadam said. "Unless you tell people that it's 25-30%, you can’t raise money. It’s a circle that keeps picking up speed until it hits the wall and everyone gets super conservative again."
People just got mesmerized by astronomical returns, Rosen noted.
"Core real estate is a 6- 7% return, with growth into the low teens. Anything else is produced by leverage and high risk. That’s enough return. If you want more than that, you’re gambling."
Carr said one of the main lessons of the last two real estate cycles is "anytime you get too much cheap money in the hands of real estate people, it’s a dangerous moment. You start seeing massive investment at unprecedented levels."
"The one question I would urge any investor to ask is, ‘what do you have to believe in terms of the future and growth rates, order to think this is a good investment?’"
Stressed but Not Distressed: CRE Pricing Disconnect Spreads to Mortgage Investments [more]
Ailing, Banks Still Field Strong Lobby at Capitol [more]
ETF Investors Buy in MayEmerging-markets ETFs lead another month of net inflows for the industry.By John Gabriel| 06-04-09| 02:20 PM TF investors seemingly ignored the old stock market adage: "Sell in May and go away." In fact, the ETF industry posted its best month of the year, in terms of net inflows, attracting more than $14 billion in new assets during the month. For some context, this compares with May 2008 net ETF inflows of about $3.3 billion. Leveraged and inverse ETFs accounted for about 11% of the month's net inflows, versus 27% last month. The impressive inflows of the past month helped push the industry's year-to-date total net inflows to more than $20.5 billion. With the markets showing resiliency in holding on to gains from its recent rally, we're seeing investors start to regain their appetites for risk. A sign that optimism about the economy is growing can be seen in the bond markets; the yield on the 10-year Treasury note is now at its highest level since November, rising almost a complete percentage point since the end of April.Emerging markets continued to shine in May. As seen in the table below, five emerging-markets ETFs-- iShares MSCI Emerging Markets (EEM), iShares FTSE/Xinhua China 25 Index (FXI), iShares MSCI Brazil(EWZ), Vanguard Emerging Markets Stock ETF (VWO), and iShares MSCI Taiwan (EWT)--made the top 10 and, combined, accounted for about $5 billion in total net inflows for the month (about 35% of total industry flows). These developing economies have certainly led the global stock market rally over the past several weeks (check out the year-to-date performances in the far right-hand column of the table). However, those considering allocating fresh capital to the group might wish to exercise some patience here. Emerging markets were slammed the hardest in 2008, but jumping in here after the group has rallied so much in such a short time span almost smacks of performance-chasing.op ETF Inflows in May 2009 Estimated Net Inflow ($MIL) AUM $Mil) YTD %
ChangeiShares MSCI Emerging Markets Index (EEM) 1,142 30,793 38 [more]
Progress Energy looks at solar incentivesKevin Spear | Sentinel Staff WriterJune 3, 2009
Progress Energy disclosed plans to state officials this week that lay the groundwork for providing customers with new solar-power incentives but they probably won't be available in the form of hard cash until next year.
The utility intends to pay residential customers about one-forth the cost of installing a solar-generating system that could run as high as several thousand dollars a system. Also new is a proposal by Progress to pay commercial customers for solar-generated electricity, though the rate won't be determined until later this year.
Progress, the state's second-largest utility with more than 1.6 million customers and the largest in the Orlando area, unveiled its proposed incentives as part of an energy-conservation plan that must be approved by the Florida Public Service Commission.
Along with most utilities in the nation, Progress is struggling to adapt to new priorities, stemming from concerns about global warming and fluctuations in the price of fossil fuels [more]
(I didn't see anyone else posting from this data. Ned Davis is a well respected firm known for deep analysis. This study does confirm a bias I have that investors are hopping from one sector to another chasing gains which may help explain how so may disparate areas have seen growth. And perhaps why it seems that lately sectors that usually move together haven't been or that industries and investments that are usually moving opposite one another aren't always doing so lately. I also thought Art Cashin's comments Friday on CNBC were dead on-saying that fund managers are jumping in now after waiting months for a bigger pullback that never came. And that they are now scrambling at the last minute to pull together a respectable quarter.
Rising Interest on Nations’ Debts May Sap World Growth [more]
Nasdaq OMX May Tap Dark Pools To Bolster Equities Business [more]