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3 Ways Investors Can Navigate This Market (On the Street) This week the heart of the first quarter earnings season starts to report its numbers. While the results during the next few weeks are widely expected to be dismal — at the conclusion it should be the seventh consecutive quarter of negative earnings growth — many investors are looking for signs in the corporate releases that show this 12-week period represents the low point in the economic downturn. The thinking goes that once it’s in the rear view mirror, the stock market will hopefully resume an upward trajectory. Investors have already seen glimpses of that. The Dow Jones Industrial Average gained 22% during a four week period that started at the March 9 bottom of 6547 and cooled off shortly before Alcoa (AA) announced its results last week, traditionally the start of earnings reporting. Along the way there have been streaks of triple-digit trading days that made headlines but not a lot of money for most long-term investors. The end result of that volatility adds up to little in a stock market that seems like it can’t sustain a rally — at least for now. For long-term investors, big swings don’t equal big gains, especially when fast-money hedge funds drive the action, profiting from moves on volatile stocks with prices that bear no relationship to their earnings fundamentals. Nevertheless, fund managers are making changes to their portfolios in this tricky environment, whether it’s to play certain broad trends, profit a little on the margins of a long-term strategy or because they are setting themselves up for what they believe will be a rebound later this year and in 2010. These are three different approaches, and you can easily follow them, too, even if your investment horizon is ten years out not ten minutes. The day-to-day volatility will certainly continue this week as the banking sector releases its results. Even a change in mark-to-market accounting rules won’t prevent these firms from posting miserable results. The inevitable knee jerk reaction will be to sell. Indeed, J.P. Morgan (JPM) equity strategist Thomas Lee believes trading activity without solid fundamentals will keep the benchmark S&P 500 stock index between 750 and 1100 until the housing and financial sectors bottom out and stabilize. “We still think a final low is ahead of us,” he wrote recently. Charlie Mercer, manager of the Aston/Veredus Select Growth Fund (AVSGX), points out that throughout 2008, the market has endured 28 one-day swings of 4% or more. Between 1945 and 2007, he says, the S&P had 49. That’s “the type of volatility we see in frontier and emerging markets,” he says. “Not the biggest, most developed market in the world.” “That creates a different environment, and what you do depends on your appetite not so much for risk taking, but more about your desire to trade in a trader’s market,” he says. That’s not for everyone, particularly small investors who can’t be as nimble as professional traders. “The volatility bubble won’t last forever, and being long in it at this stage of the game is a very risky bet.” We asked Mercer and two other managers with long term perspectives how they were playing this market. Of course, we got three different answers. Mercer remains cautious about earnings, but he does see positive signs in how some sectors are performing. “Earnings are not good,” he says, adding that conventional wisdom predicts nine consecutive quarters of negative growth will come to an end in the third quarter of 2009. “But there are some sectors where estimates have simply been too low.” Technology has traditionally done well coming out of downturns as investors flock to stocks that have big growth potentials. That trend is playing out in a big way in 2009. Through last week, Lipper says the average technology fund returned 9.2% in 2009 vs. a 7% loss for S&P 500 index funds. Mercer says semiconductor stocks like Qualcomm (QCOM), Broadcom (BRCM) and Intel (INTC) have been oversold. He’s also looking at low-end dining chains like Darden Restaurants (DRI), Chipotle Mexican Grill (CMGB) and Panera Bread (PNRA) as a way to play the cash-strapped consumer angle. These stocks have outperformed this year albeit against extremely low expectations. “The market is priced for near Armageddon,” he says. “People simply got too negative with those industries.” One option for long-term investors is to develop a keen short game, says David James, portfolio manager and senior vice president at James Advantage Funds, a mutual fund company based outside of Dayton, Ohio. James says investors should lower their overall stock allocation but shoulder a bit more risk with small sums of cash. “It’s more of a counterpuncher situation,” he says. “Remember not to fall in love with your stocks – you’re looking to buy them and hold them for a period of time, and enjoy a portion of the rally.” James Balanced: Golden Rainbow (GLRBX), the firm’s $533 million flagship fund, currently splits its assets between bonds (42%), stocks (33%) and a large cash position. Top equity holdings as of its last filing date include Hess (HES), IBM (IBM) and Western Digital (WDC). The fund holds the top spot in its Morningstar peer group over the last decade and only lost 5.5% last year. Or, investors could look at these short-term blips as just that — temporary fluctuations that shouldn’t influence a long-term strategy. That’s an idea Adriana Posada recommends. Posada, who manages the American Beacon Large Cap fund (AADEX), says it’s better to think years ahead, not get caught up in the moment. Her fund, whose major holdings include IBM, Verizon Communications (VZ) and Wyeth (WYE) (which proved to be a wise name to stay with – the pharmaceuctical company was bought out by rival Pfizer (PFE) at a 32% premium at the end of March), has very little turnover despite current market turmoil. “If you have to take a beating, that’s what you do,” she says. “We think that a lot of the retrenchment is not permanent, not due to fundamentals. These companies are not broken. As long as they can have internal or alternative sources of short-term funding they can survive.” SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved. Source: SmartMoney.com | 13 Apr 2009 | 4:00 am Nikkei ends shy of 9,000, as Asian markets gain Asian markets extend their rally Friday, with energy producers and automakers leading the advance in the wake of U.S. stocks having powered higher for a fifth straight week. Source: MarketWatch.com - Top Stories | 10 Apr 2009 | 10:34 am Treasury to banks: Stay mum on 'stress tests' Read full story for latest details. Source: Business and financial news - CNNMoney.com | 10 Apr 2009 | 10:22 am Asian shares track Wall Street's gains Read full story for latest details. Source: Business and financial news - CNNMoney.com | 10 Apr 2009 | 10:14 am Government Tries To Hold A Gun To The Head Of GM (GM) Creditors The Treasury is using all of its muscle in The Motor City. Bondholders in GM (GM) and Chrysler think they may do better if the companies go bankrupt than if they take the paltry offer of equity-for-debt exchanges that will bring them a few cents on each dollar of their investment. The government does not have much [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Apr 2009 | 10:14 am Wells Fargo boosts stocks NEW YORK/SEOUL (Reuters) - U.S. bank Wells Fargo forecast a record profit, South Korea steered clear of recession, and Chinese export data beat expectations, all offering hope that the worst of the financial crisis had passed. Source: Reuters: Business News | 10 Apr 2009 | 10:11 am Wells Fargo boosts stocks (Reuters) Reuters - U.S. bank Wells Fargo forecast a record profit, South Korea steered clear of recession, and Chinese export data beat expectations, all offering hope that the worst of the financial crisis had passed. Source: Yahoo! News: Business | 10 Apr 2009 | 10:11 am Goldman mulling stock offering - report Wall Street investment bank Goldman Sachs is mulling a new stock sale to repay the $10 billion in bailout funds it received from the government last year, according to a Wall Street Journal report. Source: Business and financial news - CNNMoney.com | 10 Apr 2009 | 10:06 am Employment Reaches New High as The Allison Inn & Spa Progresses Toward September Opening NEWBERG, Ore., April 10 /PRNewswire/ -- Employment has reached an 18-month high on site at The Allison Inn & Spa ( href="http://www.theallison.com">www.theallison.com ), Source: RSS feed - channel BNewsBusiness | 10 Apr 2009 | 10:00 am FFI Announces Second Quarter Earnings Call INDIANAPOLIS, April 10 /PRNewswire-FirstCall/ -- On Tuesday, April 14, 2009, Fortune Industries, Inc. (NYSE Amex: FFI) will host a conference call to discuss second quarter... Source: RSS feed - channel BNewsBusiness | 10 Apr 2009 | 10:00 am Mutual fund fees on the rise Source: Business and financial news - CNNMoney.com | 10 Apr 2009 | 9:59 am Banks spur broad stock market rally Stocks rallied Thursday, ending a holiday-shortened week on a high note after Wells Fargo forecast a nearly $3 billion quarterly profit, adding to hopes that the banking sector is stabilizing. Source: Business and financial news - CNNMoney.com | 10 Apr 2009 | 9:59 am Banks, With Goldman Sachs (GS) Out Front, Get Ready To Raise Cash The market capitalization of some big banks has doubled in a month. All of them will have “stress test” results from the government within a few weeks. Those that get fairly high marks will have both share price strength and a Good Housekeeping Seal to allow them back into the markets to raise capital. There are [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Apr 2009 | 9:58 am Asia stocks push towards 6-month highs TOKYO (Reuters) - Asian shares rose on Friday, with South Korean stocks hitting a 6-month high after the country averted recession in the first quarter, as a Wall Street rally boosted risk demand around the region and dented the yen. Source: Reuters: Business News | 10 Apr 2009 | 9:54 am Oil demand set to fall by 2.4m barrels a day The recession gripping the world's developed economies will push oil demand down by 2.4 million barrels a day this year, the International Energy Agency (IEA) said. Source: Latest Business News from Times Online | 10 Apr 2009 | 9:52 am Government Wants Bank “Stress Test” Results To Be Secret The Federal Reserve keeps saying that many of its dealings with the financial industry must remain secret. Congress keeps insisting that no such secrets should be kept from the taxpayers who are funding the massive bank bailout.  But, Bernanke must believe that taxpayers are too poorly educated and ill-informed to handle complicated data on how companies such as [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Apr 2009 | 9:45 am GM: The good, the bad and the ugly If General Motors goes into bankruptcy, many of its most iconic brands, such as Buick and Pontiac, might not survive. Source: Business and financial news - CNNMoney.com | 10 Apr 2009 | 9:39 am China bosses told to cut salaries The Chinese government tells executives of state-owned banks and insurance companies to cut their own pay. Source: BBC News | Business | World Edition | 10 Apr 2009 | 9:39 am Oil demand forecast slashed again Read full story for latest details. Source: Business and financial news - CNNMoney.com | 10 Apr 2009 | 9:37 am UPDATE 1-POSCO in prelim deal with Rio, seeks bigger cuts * Seeks 40-50 percent cut in contract iron ore prices (Adds details) Source: RSS feed - channel BNewsBusiness | 10 Apr 2009 | 9:19 am AP Executive Morning Briefing Japanese leader unveils $150 billion stimulus plan TOKYO (AP) _ Japanese Prime Minister Taro Aso has unveiled a new stimulus package that includes 15 trillion yen ($150 billion) in... Source: RSS feed - channel BNewsBusiness | 10 Apr 2009 | 9:17 am Chrysler's attack on crummy quality If you've ever worked in customer service, you know what the wrath of a dissatisfied client feels like. Now just think what Doug Betts, Chrysler's Chief Customer Officer, has to face every day in his job. Source: Business and financial news - CNNMoney.com | 10 Apr 2009 | 9:15 am Japan PM unveils $150bn stimulus Japan has unveiled its record $150bn (£105bn) stimulus package as it seeks to revive its economy. Source: BBC News | Business | World Edition | 10 Apr 2009 | 9:14 am Swearing Off The Habit Of Flying: Boeing (BA) Proves A Poorly Run Company Can Still Do Badly Many people who fly on airplanes do not like it one bit.  Some of these are claustrophobic while others object to the fact that they are not allowed to smoke at 37,000 feet anymore. But, the majority of nervous flyers have anxiety based on their belief that nothing that weighs any number of tons should [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Apr 2009 | 9:09 am Asia markets advance on Wells Fargo profit report (AP) AP - Asian stocks were mostly higher in holiday-thinned trade Friday after surprisingly upbeat earnings in the U.S., but Japanese banks tumbled on fresh worries about their balance sheets amid the country's crippling recession. Source: Yahoo! News: Stock Markets News | 10 Apr 2009 | 9:06 am World is awash with oil as demand sinks: IEA The world is awash with oil despite a price rally but the glut is hampering investment in fields which will be needed when demand pulls out of a "relentless" plunge the International Energy Source: RSS feed - channel BNewsBusiness | 10 Apr 2009 | 9:05 am New Hooked on Phonics Blog to Help Build Confident Readers Teachers, Reading Specialists, Childrens' Book Authors and Parents to Share Reading Tips on Hooked on Phonics Learn to Read Blog BALTIMORE, April 10 Source: RSS feed - channel BNewsBusiness | 10 Apr 2009 | 9:00 am More Quickly Than It Began, The Great Banking Crisis Is Over Investors find it disconcerting to see the stocks in the huge financial institutions that are at the foundation of the global capital system trading up and down 25% a day, and, in some cases trading in the pennies. Banks became the visible and ugly wound that reminded Wall St. each day what it had torn [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Apr 2009 | 8:58 am UPDATE 1-Thai PTT plans 20-30 bln baht bonds in 2009 * To conclude affiliate mergers in 6 months (Adds downstream buy plan, affiliate mergers) Source: RSS feed - channel BNewsBusiness | 10 Apr 2009 | 8:51 am China's exports fall 17 percent in March China's exports fell 17 percent in March, a less sharp contraction than the month before, amid signs the plunge in overseas demand may be easing, the government reported Friday. But... Source: RSS feed - channel BNewsBusiness | 10 Apr 2009 | 8:32 am IEA sees oil demand fall in developing countries The International Energy Agency has lowered its estimate for global oil demand in 2009 after "much lower-than-expected" economic growth in the global economy. The Paris-based agency... Source: RSS feed - channel BNewsBusiness | 10 Apr 2009 | 8:31 am Japanese leader unveils $150 billion stimulus plan Japanese Prime Minister Taro Aso has unveiled a new stimulus package that includes 15 trillion yen ($150 billion) in public spending. Aso says Friday that the package is intended to... Source: RSS feed - channel BNewsBusiness | 10 Apr 2009 | 8:29 am Shorts, Back In Financials, Probably Got Buried. Cut Bets On Tech Short sellers were figuring that after the bank rally late last month, banks shares were likely to give back some gains. That was working until Wells Fargo (WFC) reported that it would have a good Q1, which probably resulted in a huge short squeeze in bank stocks. As of the last day in March, shares sold [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Apr 2009 | 8:02 am Detroit: A homebuyer's paradise? Source: Business and financial news - CNNMoney.com | 10 Apr 2009 | 7:49 am Media Digest 4/10/2009 Reuters, WSJ, NYTimes, FT, Bloomberg According to Reuters, banks have been asked to keep the results of the “stress tests” of their financial conditions confidential. Reuters reports that the Fed says its current plan is to prevent inflation. Reuters reports that a new survey of economists says the recession will end in the second half of the year but employment will not [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Apr 2009 | 7:42 am China places limits on senior executive pay levels Beijing will limit the pay of senior executives at state-owned firms, such as banks and insurance companies, as part of efforts to quell public resentment at corporate high-fliers during the economic crisis. Source: MarketWatch.com - Top Stories | 10 Apr 2009 | 7:18 am Asia stocks push towards 6-month highs (Reuters) Reuters - Asian shares rose on Friday, with South Korean stocks hitting a 6-month high after the country averted recession in the first quarter, as a Wall Street rally boosted risk demand around the region and dented the yen. Source: Yahoo! News: Business | 10 Apr 2009 | 7:17 am Asia Markets 4/10/2009 Markets in Asia were higher. The Nikkei was up .5% to 8,964. The Hang Seng was closed. The Shanghai Composite was up 2.7% to 2,444. Data from Reuters. Douglas A. McIntyre [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Apr 2009 | 7:17 am Universal Music, YouTube forge partnership The music giant will provide videos from its biggest acts for a new channel on YouTube. U2 lead singer Bono, well known for his ONE campaign against poverty, has turned his focus to a charity case closer to home: the ailing music industry. Source: L.A. Times - Business | 10 Apr 2009 | 7:00 am Surprise from Wells Fargo lifts stocks The bank reports that it expects a $3-billion profit, sending the Dow up 246 points to a two-month high. Good times have returned to the stock market with a rush. Source: L.A. Times - Business | 10 Apr 2009 | 7:00 am Retailers post sales declines; upscale stores among worst performers After a glimmer of hope in February, U.S. retailers see drops in March, which had one fewer Saturday than it did last year. A later Easter date doesn't help. The worst may be over for some of the nation's retailers, but experts say the industry will remain stuck in neutral for several months. Source: L.A. Times - Business | 10 Apr 2009 | 7:00 am Infiniti G37 Convertible: Lots of sun, a bit of passion Despite the brand's tagline of "inspired performance," there is nothing particularly inspired about this 2009 model. Recently I began writing a column about advertising and marketing for this paper, a process that has awakened my sense of the ludicrous, chicken-salad-flavored fertilizer that passes for brand marketing in this country. And no automotive company has agonized more over the meaning of its brand than Infiniti, Nissan's luxury division, whose image advertising has at various times invoked the serene austerity of a Japanese tearoom and the tuck-and-roll dissipation of a Nevada cathouse. Source: L.A. Times - Business | 10 Apr 2009 | 7:00 am Obama welcomes new wave of lending Refinancings soar, spurred by low interest rates, but programs for borrowers in the deepest trouble are just starting to kick in. President Obama, meeting with homeowners at the White House, said the government's efforts to drive down interest rates had fueled a surge in refinancing -- putting money into many homeowners' pockets during the current economic crisis. Source: L.A. Times - Business | 10 Apr 2009 | 7:00 am Some rays of sunshine for the economy Good news from the retail, banking and foreign trade sectors sends hearts -- and markets -- soaring. After months of nearly unmitigated gloom, glimmers of improvement are emerging in the U.S. economy. Source: L.A. Times - Business | 10 Apr 2009 | 7:00 am Corona Extra's sales are losing fizz Shipments of the beer dropped 4.6% last year, but it remains the No. 1 import. And more trouble is brewing in the form of upstart rival Bud Light Lime. Corona Extra's formidable brand was built, in part, on crackerjack marketing campaigns equating the Mexican brew with tranquil vacations on pristine beaches. Source: L.A. Times - Business | 10 Apr 2009 | 7:00 am Job market is especially cruel for older workers More Americans 55 and older are working longer, and those who are looking for jobs face a technologically transformed market where potential employers may deem them overqualified. Their savings in shambles from the economic downturn, jobless seniors are dusting off their briefcases and trying to head back to work. Many, like Jim Mitchell, a 63-year-old former sales executive, are finding a merciless job market where decades of experience aren't necessarily an asset. Source: L.A. Times - Business | 10 Apr 2009 | 7:00 am Job market is especially cruel for older workers More Americans 55 and older are working longer, and those who are looking for jobs face a technologically transformed market where potential employers may deem them overqualified. ... Source: RSS feed - channel BNPaperBusiness | 10 Apr 2009 | 7:00 am Some rays of sunshine for the economy Good news from the retail, banking and foreign trade sectors sends hearts -- and markets -- soaring. After months... Source: RSS feed - channel BNPaperBusiness | 10 Apr 2009 | 7:00 am Donald Trump sues developer of Baja California condo project with his name The tycoon accuses Irongate Wilshire's principals of failing to follow through on promises to build a five-star resort called Trump Ocean Resort Baja Mexico. ... Source: RSS feed - channel BNPaperBusiness | 10 Apr 2009 | 7:00 am Infiniti G37 Convertible: Lots of sun, a bit of passion Despite the brand's tagline of "inspired performance," there is nothing particularly inspired about this 2009 model. ... Source: RSS feed - channel BNPaperBusiness | 10 Apr 2009 | 7:00 am Obama welcomes new wave of lending Refinancings soar, spurred by low interest rates, but programs for borrowers in the deepest trouble are just starting to kick in. ... Source: RSS feed - channel BNPaperBusiness | 10 Apr 2009 | 7:00 am Retailers post sales declines; upscale stores among worst performers After a glimmer of hope in February, U.S. retailers see drops in March, which had one fewer Saturday than it did last year. A later Easter date doesn't help. ... Source: RSS feed - channel BNPaperBusiness | 10 Apr 2009 | 7:00 am Surprise from Wells Fargo lifts stocks The bank reports that it expects a $3-billion profit, sending the Dow up 246 points to a two-month high. Good... Source: RSS feed - channel BNPaperBusiness | 10 Apr 2009 | 7:00 am Corona Extra's sales are losing fizz Shipments of the beer dropped 4.6% last year, but it remains the No. 1 import. And more trouble is brewing in the form of upstart rival Bud Light Lime. ... Source: RSS feed - channel BNPaperBusiness | 10 Apr 2009 | 7:00 am Virgin Mobile unveils Pink Slip Protection plan The company will waive as many as three months of wireless phone charges for customers who get laid off. As the... Source: RSS feed - channel BNPaperBusiness | 10 Apr 2009 | 7:00 am Times' front-page ad sparks outcry Publisher Eddy Hartenstein defends his decision to run the ad for a new NBC show, which resembled a news story. ... Source: RSS feed - channel BNPaperBusiness | 10 Apr 2009 | 7:00 am Banks asked to keep quiet on stress tests (Reuters) Reuters - The U.S. Treasury Department is asking banks not to mention the regulatory "stress tests" as part of their first-quarter earnings results, according to a source familiar with government discussions. Source: Yahoo! News: Business | 10 Apr 2009 | 6:17 am Banks asked to keep quiet on stress tests WASHINGTON (Reuters) - The U.S. Treasury Department is asking banks not to mention the regulatory "stress tests" as part of their first-quarter earnings results, according to a source familiar with government discussions. Source: Reuters: Business News | 10 Apr 2009 | 6:17 am Bank of Japan sets rules on subordinated bank loans The Bank of Japan’s policy board says creditworthy commercial banks with overseas operations will be given access to subordinated loans of up to $3.5 billion in order to help weather economic storms. Source: MarketWatch.com - Top Stories | 10 Apr 2009 | 5:54 am Thailand protests threaten regional summit A gathering of hundreds of government protesters in the coastal beach resort of Pattaya, Thailand, turns violent, threatening to disrupt a weekend summit meeting to be attended by heads of state from around Asia. Source: MarketWatch.com - Top Stories | 10 Apr 2009 | 5:21 am World's largest nuclear plant reportedly safe to reopen Japan's Tepco is reportedly set to reopen the world's largest nuclear plant, closed by a 2007 earthquake and kept shut on concerns that the facility lies directly over a fault line. Source: MarketWatch.com - Top Stories | 10 Apr 2009 | 4:37 am U.S. recession to end in H2 but unemployment to rise: survey WASHINGTON (Reuters) - The U.S. economy is set to emerge from recession in the second half of this year as consumer spending and the housing sector recover, but unemployment will rise well into 2010, according to a survey. Source: Reuters: Business News | 10 Apr 2009 | 4:23 am U.S. recession to end in H2 but unemployment to rise: survey (Reuters) Reuters - The U.S. economy is set to emerge from recession in the second half of this year as consumer spending and the housing sector recover, but unemployment will rise well into 2010, according to a survey. Source: Yahoo! News: Business | 10 Apr 2009 | 4:18 am Jon Friedman's Media Web: Do scoops still matter in a digital world? In the old days -- way back in the late 20th century, before the Internet took hold -- a newspaper could celebrate a scoop for 24 hours. No more. Today, it lasts as long as it takes for an editor in another newsroom to press the "send" button. Source: MarketWatch.com - Top Stories | 10 Apr 2009 | 4:01 am Thomas Kostigen's Ethics Monitor: The problem of smart grid hackers In a recent speech, President Obama called for updating the way we get our electricity "by starting to build a new smart grid that will save us money, protect our power sources from blackout or attack, and deliver clean, alternative forms of energy to every corner of our nation." Critics, however, say the smart grid is too expensive, may not be "smart enough," as one headline recently quipped, and may cause more harm than good. Source: MarketWatch.com - Top Stories | 10 Apr 2009 | 4:01 am Shrinks: New Yorkers Still Anxious on Economy (On the Street) Amid the recent market rally, many are searching for signs of optimism to buttress the idea that the economy's on the mend. But in New York City, the financial capital of the world, at least one segment appears to be feeling a distinct lack of confidence: the anxious — and sometimes neurotic — New Yorkers who unload their worries on their therapists. Previously, the city's psychologists, therapists and psychiatrists had indicated that the financial meltdown last fall had clearly taken its toll with patients reporting more angst and symptoms, such as trouble sleeping. But now, even as some other data points suggest a brightening in the outlook, New Yorkers seem no less pessimistic — at least when they're on their shrink's couch. “There’s a lot of anxiety out there, apprehension and just plain fear,” said Dr. Rita Bigel-Casher, a psychologist in Manhattan. “Everyone I see is really disturbed by the economic downturn, especially people who have lost jobs and have no hope of replacing them.” Those themes came up repeatedly in recent interviews conducted by SmartMoney with more than two dozen therapists in the New York area. Nearly all of them said that the heightened anxiety among their patients since the market crash in October has yet to diminish. “Even though the economy has gone up a bit, people are so uncertain,” said Dr. Iris McGuire, a psychologist in Manhattan. “And if they got wiped out in the downturn they have nothing to turn around with, anyway.” While getting good news may make people feel a little better in the short term, people are still cautious and don’t know if they can celebrate, says Dr. Elise Goldstein a New York-based psychologist. No demographic seemed immune from worry. The therapists we spoke with described seeing elderly patients worried about their fixed income, college students panicking at the thought of graduation and middle-aged couples reduced to a single income with layoffs. Of course, it's a tough time to read the tea leaves on the economy. The stock market has provided a healthy dose of positive news in recent weeks with the Dow rebounding some to levels around 8,000. And there are concrete factors behind some of these gains (read "Dow 8000: 5 Reasons Driving the Rally"). Meanwhile, a recent New York Times/CBS News poll found some signs of optimism. But there are downbeat indicators too. When the Conference Board reported the Consumer Confidence Index for March, it seemed to indicate that Americans were either frozen in the headlights or adjusting to the idea of a recession. Numbers were relatively unchanged for March with the index showing a slight increase to 26 up from its all-time low in February of 25.3. All this has had its impact on therapists, too: "People are wanting therapy more, but they’re having a harder time paying for it,” says Dr. Jennifer Naidich, a Manhattan psychologist, who says she’s seen patients from all economic classes seeking therapy. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved. Source: SmartMoney.com | 10 Apr 2009 | 4:00 am How to Haggle and Save: 5 Key Moves Haggling is no longer limited to flea markets and car dealerships. With consumer spending down more than 10 percent from December 2007 to last December — its steepest drop since 1968 — you can now dicker over cashmere sweaters or even home-theater components at major retailers. "In this economy, everything’s negotiable," says Britt Beemer, author of The Customer Rules. Below, ways to wrangle down the price on just about anything. Deal with decision makers. Usually, only commissioned sales folk are authorized to give discounts. If yours can’t, ask to speak to a manager. Albert Ko, founder of bargain-hunting Web site Cheapcheapcheap.com, often tells salespeople he wants to help them out. At Best Buy recently, he did just that — while helping his dad score 10 percent off a 52-inch TV. It’s win-win: They give on price, and he buys the item there and not via an Internet discounter. (A Best Buy spokesperson says that while haggling isn’t the norm, "managers are empowered to react to local market needs.") Bring comps. Many stores have price-match guarantees. But have proof. If the difference is 20 percent or greater, stores are more likely to call the competition to verify the price, Beemer says. Watch your attitude. Don’t waste people’s time. If you put a salesperson through serious negotiations, be prepared to buy. And leave the big stick at home. Herb Cohen, author of You Can Negotiate Anything, suggests this softer-touch approach: "I told my spouse/mother/accountant that I’d only spend X, and I just can’t go over that. Is there any way you can help me out?" Ask about unadvertised deals. Are there coupons in the register drawer? Any Internet-only promotions? Salespeople may let you use a store computer to buy a cheaper item on the Web site, even though workers on commission generally won’t get their cut unless the item is shipped to the store. Work the margins. The more you buy, the better your bargaining power. So don’t ask for 30 percent off a single $20 item. Try for 20 percent off a $3,000 TV, says Ko — or ask the sales guy to throw in a pricey connecting cord or to deeply discount a service contract, since both are high-margin items. Just forget about discounters like Wal-Mart and Costco, says Patricia Edwards, founder of retail consultancy Storehouse Partners. Their margins are already razor thin. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved. Source: SmartMoney.com | 10 Apr 2009 | 4:00 am Is Your Broker Ready for a Mega-Rally? (On the Street) The market's recent 25% rally since its March 9 low has a good deal of cash coming home to roost. Nearly $50 billion has poured out of money-market mutual funds in roughly the last four weeks. But many brokers have cut their budgets and work forces since the economy took a severe downturn last fall, raising the question: Can they cope with a really big run-up? Long hold times and sluggish web sites won't cut it when skittish investors decide to jump back in. We put some of the biggest brokerages and fund companies through the ringer by testing their call center response times. We also reviewed data on trade execution times. The results varied dramatically. The call times were averaged over a five day period with the average wait time coming in at just under 43 seconds. It took ShareBuilder, our quickest entrant, less than one-fifth the time it did Zecco, which was the slowest on our list. Meanwhile, independent research firm Gomez found it took WellsTrade, a division of Wells Fargo (WFC), almost 17 seconds to execute a trade, four times as long as Scottrade, the quickest, and an eternity to a sophisticated investor. Consider this data a precursor to SmartMoney magazine's annual broker survey, which comes out next month. Click here to see the 2008 survey. We center on these two metrics for good reason. As the market shows signs of recovery, trading volume is soaring as investors try to position themselves for a rebound. NYSE Euronext reported a 37% surge in total U.S. cash product volume in March vs. the year-ago period. The S&P 500 volume's spiked more than 50% in the two weeks after the market bottomed in early March. And then there's all that cash kept on the sidelines by wary investors ($3.8 trillion in money market funds alone, according to the Investment Company Institute) just waiting to pour back into equities. In other words, if the recent gains — or a spooky earnings season — sparks an even broader rush to buy or sell, the flood of transactions could be staggering. That means the systems — and the people — at brokerages and fund companies will need to be ready to meet the onslaught just as they emerge from cutting back costs in response to the poor economy. The ranks have shrunk at some of the biggest names in the brokerage business. Merrill Lynch lost about a thousand brokers, or 6%, in 2008 compared with 2007. Smith Barney shed about 1,100 brokers, or 8% of its force. And the combined brokerages of Wachovia and A.G. Edwards lost about 300 stock jockeys, or 2% of the total. It's a similar story at some big fund companies. Though there's no industrywide tally, research firm Challenger, Gray and Christmas estimates that the some of the biggest fund companies have cut more than 12,000 jobs. For example, fund giant Fidelity laid off 1,300 employees last fall and started another round of cuts in early February. Fidelity says the move is purely tactical: Demand for mutual funds drops in a bear market, which means fewer phone calls. "Throughout this process, we have been committed to maintaining the resources necessary to provide the highest level of customer service," says Fidelity spokesman Vin Loporchio. Along with Fidelity, most fund companies say the impact of layoffs will be minimal. Some also point out that with the unemployment situation being what it is, it shouldn't be too hard to staff up again fairly quickly. Of course financial-service companies are well aware that spikes in trading volume can occur and that customers expect the systems to be able to handle the flow. When the London Stock Exchange suffered a systems failure in the midst of a busy trading day last September, customers were outraged. Overall, however, the global trading infrastructure has handled the market's selloffs since the fall without incident. Fortunately, it's not something that should keep investors awake at night, says Yakov Amihud, professor of finance at New York University's Stern School of Business. "No one knows how much capacity the system has," Amihud says. "But today many stocks can be traded on multiple platforms." Where the U.S. differs from the LSE is that we have five "liquid, chunky" market centers (NYSE, NYSE Arca, Nasdaq, Bats and Direct Edge), says Jamie Selway, managing director at White Cap Trading and a market infrastructure expert. If a technical glitch caused one to go down, it's a pretty straightforward manner to fail over to those that are still up and running, Selway says. Still, with the market rallying, SmartMoney repeatedly called around the major discount brokerages to see how their response times stacked up.
Broker	Average Time in Seconds for Someone to Pick Up**
*As a prospective client. **From first ring based on five phone calls placed on different days Source: SmartMoney.com research
ShareBuilder	16
Charles Schwab	23
Scottrade	25
Fidelity	31
WellsTrade	31
T. Rowe Price	32

As the market was rallying 20% during March, we placed calls to each broker on five different days. Sharebuilder, part of Dutch financial giant ING Direct, took just 16 seconds to answer the phone. That could be an indication that the company is getting its act together after placing dead last between 16 discount brokerages on SmartMoney magazine's 2008 survey. Schwab benefits from its short and simple automated phone tree. Just press the "2" button and you're connected to a representative pretty much instantly.

Worst Call Times BrokerAverage Time in Seconds for Someone to Pick Up** *As a prospective client.
**From first ring based on five phone calls placed on different days
Source: SmartMoney.com research Zecco97 Bank of America70 Just2Trade57 Firstrade48 ETrade47 TD Ameritrade41

Zecco, a site that offers commission-free trades, could learn a thing or two from Sharebuilder. It took Zecco operators 97 seconds on average to pick up the phone or five times as long as our best entrant. The last thing an anxious trader needs on a big market day is to listen to cheesy hold music while waiting for a Zecco representative. At one point we even thought we heard a Theremin.

Worst Execution Times BrokerAverage Response Time in Seconds* *Elapsed time from logging into an existing account, filling out a trade ticket and then previewing it. Does not include actually hitting "send."
Source: Gomez WellsTrade16.8 Charles Schwab15.7 WallStreet*E11.7 OptionsXpress11.5 Muriel Siebert11.3 Firstrade8.5

Gomez Inc., a web performance monitoring company, tracked average response times every month throughout turbulent 2008. Gomez researchers measured the time it took to log into an existing account, fill out a trade ticket and preview without actually hitting "send." Interestingly, Charles Schwab (SCHW), which was one of the fastest to reach on the phone, is comparatively slow online.

Best Execution Times BrokerAverage Response Time in Seconds* *Elapsed time from logging into an existing account, filling out a trade ticket and then previewing it. Does not include actually hitting "send."
Source: Gomez Scottrade4.2 ETrade5.3 TD Ameritrade5.3 Fidelity5.5 TradeKing6.9 Bank of America7.9

Bank of America (BAC), on the other hand, is relatively slow on the phone but pretty quick on the web. In any case, if the market soars or plunges, those few extra seconds could add up to big money either made or lost.

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Asia Markets: Nikkei loses its gains, as banks hit by Sumitomo Mitsui news

Obama says timing right for millions to refinance (AP)

AP - Declaring "good news" in the midst of an economic meltdown, President Barack Obama on Thursday urged families to take advantage of near-record low mortgage rates by refinancing their home loans. "We are at a time where people can really take advantage of this," Obama said, seated with a handful of homeowners who have already lowered their bills.

Latin American Markets: Brazil closes at six-month high

Retailers' sales offer glimmer of hope

Chile cuts rate to 1.75%, leaves door open for further easing

Happy days are here again? Really?

Tilghman Says Princeton Postponing Construction Projects

Bernstein's Howard Discusses Business of Chocolate, Food

Bank results to dictate Wall Street rally's fate

Bank results to dictate Wall Street rally's fate (Reuters)

Reuters - If Wells Fargo's upbeat first-quarter performance is any sign, Wall Street could rally further next week on any reassuring news from three other big banks due to post quarterly results.

Bank results to dictate Wall Street rally's fate (Reuters)

Reuters - If Wells Fargo's upbeat first-quarter performance is any sign, Wall Street could rally further next week on any reassuring news from three other big banks due to post quarterly results.

Banks drive US stocks up sharply

Chevron sees sharply lower Q1 profit

Bargain hunters

Boeing warns on Q1 profit, to cut plane output

Yell chairman Bob Scott is latest to face investor revolt over boardroom role at RBS

More jobs lost at Hays as recession sends fee income down 31 per cent

Living the high life

Ten top tips for first-time buyers

Tokyo attempts to stimulate big-ticket purchases as PM says export model is no longer realistic

A dose of good sense from Down Under

MPs look at possibility of breaking up the banks

Need to know: John Lewis falls ... Costain contract ... Comstar profits

Broadstairs: the resort of choice for second-home Londoners

Chevron profits to fall sharply

Lantz Calls Geithner's Plan `Valuable' for Investors

Obama to ask for $75bn for war spending

Wells Fargo earnings surprise sends market surging (AP)

AP - Stocks surged Thursday to their highest levels in two months after banking giant Wells Fargo & Co. surprised the market with an early profit report that blew past analysts' expectations thanks to a strong increase in its lending business.

Write-Offs: 04.09.09

$$$ Dealbreaker is now optimized for your Blackberry.

$$$ Layoffs games [The Deal]

$$$ Inside the CNBC WC [Clusterstock]

$$$ Summers: 'free-fall' ending [Breitbart]

$$$ We're off tomorrow, save for a quick opening wrap. Enjoy the long weekend.

Chevron's warns on first quarter profit fall

J&J to eliminate 900 positions, mostly sales

Shoppers stay cautious, but sales declines ease (AP)

AP - March retail sales showed encouraging signs that consumers are no longer cutting their spending, a key to finding a bottom to the recession.

You Knew It Was Coming

State income tax hikes, of course.

The squeeze is especially severe in states hit hardest by the recession, such as Arizona, where sales-tax revenue has fallen by 10.5%, income-tax collections are down 15.7% this fiscal year, and the government faces a $3.4 billion budget gap next year. But such shortfalls are likely to be widespread; federal income-tax receipts from individuals have dropped more than 15% in the past six months, according to Congressional Budget Office estimates.

Brace yourselves. The lust for municipal spending is going to see no abatement, even while state and municipal pension funds are facing rather frightening unfunded obligations. One expects to see repeats of California's recent "to the public" bond issuance- a trend that we see mirrored in the Administration's hope that financial "Liberty Bonds" are the answer to toxic waste pits that pock the financial landscape at present.

Is debt the answer? It will have to be, because it really doesn't look much like tax revenues are going to recover anytime soon (the Administration's rosy economic projections notwithstanding). Does anyone else see some irony in the recursive folly of pitching to the public tax free bonds that will be funded by later tax hikes? Or is that just us?

What, exactly, is it going to take to slow down spending?

More States Look to Raise Taxes [The Wall Street Journal]

Fed says plan now to avert inflation

Madoff trustee files first 'claw back' suit

Wall Street sets 5th weekly gain on banks, Boeing off late (Reuters)

Reuters - Stocks jumped on Thursday after Wells Fargo said it expects to report a record quarterly profit, fueling a month-long rally prompted by hopes that deterioration in the financial sector was abating.

Gold falls as investors turn to stock market rally (AP)

Textron soars on acquisition hopes

Treasurys decline as stock market rallies (AP)

Salt Pork & Politics

The lunch crowd at Izola's Family Dining in Chicago. David Greene/NPR 100 Days

 

Yes, traveling across the country means seeing and tasting new things. But once in a while you've got to with an old standby -- like the scrumptious soul food served up by Izola White.

I interviewed the 85-year old last year at her diner on Chicago's South Side and got my first taste of her salt pork and greens. This week, I went back for lunch and to check in.

Menu was the same -- thank heavens. The life-sized portrait of President Obama is a new addition.

President Obama presides over Izola's Family Dining in Chicago. David Greene/NPR 100 Days Flickr

 

White said, business has been struggling. Here she is chatting about the president and the recession.

I got to talking with one of her lunch patrons, a local pastor named David Lambert.

Pastor David Lambert at Izola's Family Dining in Chicago. David Greene/NPR 100 Days Flickr

 

I was struck by his complaints about the media. He said there's been too much criticism of President Obama in the news these days.

Covering the Bush White House for 8 years, I heard a lot of this from Republicans, especially as Mr. Bush's approval ratings declined over his two terms. Now, barely two months into Mr. Obama's presidency -- and with his approval ratings in the 60s -- some Obama supporters feel he's not getting a fair shake.

This wasn't the first I heard of this. A few days earlier on my drive, I dropped in for coffee at Boo's Crossroads Diner in Terre Haute, Indiana and came across a table full of women. They've been having breakfast together weekly for 25 years.

A weekly meal in Terre Haute, Indiana. David Greene/NPR 100 Days Flickr

 

Take a listen to Betty Martin, a 75-year-old retired library director. She said scrutiny of Mr. Obama's approach to the economy surfaced way too early.

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How the Dow Jones industrials fared Thursday (AP)

AP - Stocks rallied Thursday to their highest levels in two months after Wells Fargo & Co. surprised the market with an early profit report that blew past analysts' expectations. The major market indexes logged their fifth straight week of gains. U.S. financial markets are closed for Good Friday.

The Obama Portfolio: Killin' It

"Skyrockets in flight! Afternoon delight!"

The Obama Portfolio (Since Inception): +21.30%

Earlier: The Obama Portfolio

Wells Fargo expects record profit

Doing Well In Chicago

Under the subject line of "Only a Fool Would Talk About Good News," Joe Chellman writes:

Okay, that's not true.

But talking about good news in this economy makes me very superstitious.

I'm a freelance web developer in Chicago, and so far I'm continuing to do okay. That is to say, my workload has not lightened, and I even got a bit busier starting late last fall. I don't think there's anything particularly magic going on here; I think it's just that I'm a one-person operation with no overhead.

I've been doing this for close to 10 years now, and I've made enough connections in that time that I can stay afloat. I'm also not a big spender, so my cost of living (for someone living in Chicago, anyway) is pretty modest. I think I just got lucky with some of the connections I made right before things really went south, so I continue to have just enough work, which is all I ever want anyway.

This is not at all exciting, and because I'm a Planet Money listener, I'm always looking over my shoulder for when the other shoe will drop, but in my case, so far so good.

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Buoyant banks help market end losing run

Production prospects leave Gulfsands looking good

Wall St rally extends into fifth week

Oil jumps on strong share prices

Fill Your Wells

Is anyone else alarmed that Wells Fargo is up nearly 30% on "pre-earnings guidance?" The trouble, of course, with pre-earnings anything is that the devil is in the details. In keeping with our "it's all a farce" theme today, we cannot help but wonder after the market that hops on so thin a promise with such enthusiasm. Certainly, there are no signs of the sort of capitulation that we expect will be required to really see "the bottom." But, then, what do we know? We thought the First Analyst's call was folly, before we saw the wide-ranging array of information distorting programs and regulations that would be fired off in support of the upward charge.

But Wells really does frighten us, as does the desperation of the market to seize on such news with such gusto. Are we just curmudgeons unpatriotically decrying the inevitability of the great reflation?

Wells Fargo Shares Skyrocket on Earnings Pre-Announcement [Dividend.com]

Update: Minutes later, the Journal has it: Is All Really Well for Wells? [The Wall Street Journal]

Restrained Partying At The Griffin House Tonight

Victory lap time for our favorite midwestern hedge fund. Citadel's Kensington and Wellington funds were up 3 percent in March and 11 percent for the first quarter, performance that could be characterized as somewhat better than last year's showing, when they lost 55 percent. So big chest-bumps for Ken all around, though, sadly, it's not all good news emanating from Casa Griffin. The wife's fund was apparently down five percent last month.

Helphire must tackle issue behind cash call

Size isn't everything when it comes to making the markets tremble

Universal and YouTube agree video deal

Wells Fargo to report record profits

Our Beloved Neighbour

[W]e stand on guard for thee.

 

After so many people wrote in defending Canada, I had to listen to the April 3 podcast a second time myself to be sure we'd mentioned the Truth North at all. And we had.

Anne-Marie Rivard writes:

Just a quick word to let you know how incredibly offended I was upon hearing Adam Davidson and Alex Blumberg refer to Canada (and Italy, no less!) as insecure nations. Please. I usually find your podcast quite interesting and informative. But thanks for reminding me that I'm in fact listening to an American product, i.e. a product with a superiority complex.

You can refer to Canada and Canadians as boring, unassuming, quiet -- all true. But insecure? How could we possibly be insecure when compared to our next door neighbours we are less indebted, have better health, have more sex, work less, are basically happier, and now, we are wealthier too! But being a Canadian, I'm not one to gloat -- just stating the facts.

And have I mentioned that our banks are the soundest in the world?

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Oil tracks Wall Street higher, breaks $52 (Reuters)

Reuters - Oil prices rose nearly 5.8 percent on Thursday, fueled by a rally on Wall Street and data showing that the number of workers filing new claims for unemployment benefits fell last week.

Guess The Dow

The market looks so whacky to us that we cannot resist. Another installment of Guess The Dow is at hand.

This time, a twist. Not only must you be the closest to the Dow's close without going under (reverse Price Is Right rules) but you must include a reason (plausible or otherwise) for the index's performance with your entry.

The wheel is closed to betting 10 minutes before the bell. In the event of a tie we will award to the earlier entry.

GO!

Update: 8083 makes undisputed Guess The Dow champion "guest" the winner with this entry: "8090 - free pretzel day at the AMEX."

The Pink Ladies Are Back

And they've brought a pink dude. Unfortunately for Big Lar, he failed to prove a ladies man of the same caliber as Lloyd Blankfein, and the planned "$5.2 million for one day of work!" shouts proceeded at a pace, but he's apparently been taking a class and will show those bitches some mad skills yet.

IMF's Lipsky Says It Must `Take the Lead' in Crisis Funding

America's 'freefall coming to an end'

Rig Counts vs. Oil Prices: Equilibrium Is Near (BHI)

Of What Value Is The Test That No One Fails?

For a quick lesson in hypocrisy and smoke and mirrors all tied into one, how about the test that no banks can fail, and that, in any case, is based on such lax standards and assumptions that even the institution passing with high honors should give investors no comfort whatsoever? We refer, of course, to the much touted (by the Administration in any event) "stress tests," the economic assumptions of which have already been overtaken by current conditions.

Really, it is insulting to the public to think that their confidence will be restored by some arbitrary "stress test." We suppose that we are supposed to draw from our experience with federal standards like those "regulating" "no trans-fats" and "no calorie sweetener" claims to feel certain that the government knows what it is doing and happily go long all financial institution (since none will fail the "stress test.")

Regulators say all 19 banks undergoing the exams will pass them. Indeed, they say this is a test that a bank simply will not fail: if the examiners determine that a bank needs "exceptional assistance," the government, that is, taxpayers, will provide it.

But the tests, which are expected to be completed by the end of this month, are being conducted out of public view. Federal law prohibits the unauthorized disclosure of the results of any bank examination, including the stress tests. Some investors wonder if the new tests are rigorous enough, given the potential problems lurking inside the banking industry.

We are shocked, shocked, to discover that no banks are failing the test.

Banks Holding Up in Tests, but May Still Need Aid [The New York Times]

Bank of England speeds up quantitative easing

Summers sees end to 'sense of free-fall'

Easter egg price war hatches after demise of Woolies

US Navy warship in contact with pirates

US retailers report falling sales

QinetiQ staff threaten to strike over pay freeze

GE (GE) Adds $10 Billion In Market Cap On Earnings Optimism

Axiom's Dalton Calls Wells Fargo Earnings `Pleasant Surprise'

And Don't Stop There: Stick Pins In Your Jamie Dimon Voo Doo Doll! Cut Him Out Of All The Pictures Of The Two Of You!

If Chrysler LLC's main bank is not willing to help the struggling automaker, concerned consumers should not support JPMorgan Chase, say two advocacy groups that launched an online national boycott Wednesday.

Progress Michigan and FireDogLake.com are asking people to close their JPMorgan bank accounts and cut up their credit cards in protest.

Sparking the campaign is the stalemate in negotiations to convince Chrysler's largest debt-holders to help reduce debt as a condition of receiving $6 billion more in federal aid.

[...]

There are plans to add names to a petition on the FireDogLake.com Web site.

A Facebook page called "Americans Boycotting JPMorgan Chase" has been set up and there are plans to post a video of someone closing their account on YouTube in the next day or two, Fifelski said.

Pro-Chrysler groups back a boycott of JPMorgan [Detroit News]

Presented By:

Barclays agrees to sell iShares

Obama urges refinancing as housing measures roll out (Reuters)

British Land shares rise more than 7pc on sale talks

Canary Wharf buys£120m of debt at 70pc discount

A Back-Up Plan On A Cart

The Wall Street Journal writes today about an increase in the number people getting into the hot dog business. The Journal reports that most of them are trying boost their rainy day funds:

Sales of carts, which start at about $2,000 new, have heated up in the past year. "Every model is...taking off," says Joel Goetz, owner of American Dream Hot Dog Carts Inc. in St. Petersburg, Fla. Since January, he has sold about 25 carts a week, 15 more than usual.

"Business is really off the charts," says Dan Jackson, a division manager at Nation's Leasing Services in Newbury Park, Calif. Leases for hot-dog carts account for about three-quarters of sales, and revenue is triple what it was this time a year ago, he says.

Today's cart buyers are generally older and have more white-collar work experience than was traditionally the case, says Will Hodgskiss, president and "top dog" at Willy Dog Ltd., a New York cart manufacturer. "People are either buying these carts in anticipation of a layoff or to supplement their incomes," he says. Willy Dog's sales are up 30% from March 2007.

I can't say I've seen an increase in the number of hot dog vendors near PM headquarters, but there are an ever increasing number of photographers in Times Squares willing to take your picture and Photoshop it on to a magazine cover.

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Davidowitz Sees `Massive' Consumer Bankruptcies in U.S.

Food pantry donations get a little fruity

A more confident China

Mafia making money in the recession

Tracing the origin of the pink slip

Bankers need to get the price right

Bailout funds aimed at regular investors

What's next for banks after stress tests

How Wells Fargo is doing so well

Virag Says Fiat Cars to Meet U.S. Regulations in Chrysler Deal

FTSE 100 ends higher, Barclays surges (AFP)

AFP - Stocks in London ended the day higher on Thursday despite showing little reaction to the to a decision by the Bank of England to leave interest rates at 0.5 percent.

FTSE 100 ends higher, Barclays surges (AFP)

AFP - Stocks in London ended the day higher on Thursday despite showing little reaction to the to a decision by the Bank of England to leave interest rates at 0.5 percent.

Zambian mine lays off 1,300 staff

Repair Beats Replace

Seen in the Bucktown neighborhood, Chicago. simonk/NPR/Planet Money Flickr pool

 

Curtis writes:

Well, I can say I have good news. In California where I reside, I earn a living servicing water pumps -- BIG pumps. As water restrictions increase, so does the emphasis on better control of the water. This stretches from the golf industry to the municipal water industry.

There is a slight diversion of purchasing strategy, repair rather than replace.This feeds a blue collar industry in the local region.

It used to be, when money was loose, replace with new was the norm. If the repair was 75 percent of the cost of replacement a new motor was ordered, the old motor was scraped, and the country of origin (Mexico, China, Taiwan) benefited. These beautiful USA built, 50 year old, 200 horsepower motors, were going to the scrap heap.

Now the repair industry is swamped.

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Rensburg’s Haynes Is `Hopeful' About Financial Services

'Green shoots' recovery talk taboo

Secret Florida bank client bailed in UBS tax case

Media : Holmes free to dream of mayoralty, says TVNZ

Stock takes : Know your rights

Hilliard Sees Challenge to `Take Back' Some Stimulus

Won't You Help A Bank Today?

The Obama administration's new idea gives you a chance to get in on the action: bailout bonds. The New York Times reports that they'd be sort of like the war bonds:

The idea is that these investments, akin to mutual funds that buy stocks and bonds, would give ordinary Americans a chance to profit from the bailouts that are being financed by their tax dollars. But there is another, deeply political motivation as well: to quiet accusations that all of these giant bailouts will benefit only Wall Street plutocrats.

Plus: Unemployment claims hit an all-time high, and Warren Buffet's Berkshire Hathaway gets downgraded.

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New jobless claims fall more than expected

Japan unveils $154bn stimulus plan

World stocks win back ground before Easter break (AFP)

AFP - World stock markets advanced Thursday, with Asia boosted by a record new stimulus package in Japan and Europe lifted by overnight US gains before a British interest rate call and the Easter break.