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Articles Archive for July 2008

Economics »

[27 Jul 2008 | No Comment | ]

The first of a series of summaries of the previous weeks economic data and next weeks economic indicators for July 25th.

Investing »

[27 Jul 2008 | 5 Comments | ]

There are now a variety of small cap international exchange traded funds (ETFs). Small cap international exposure can be an important part of investors’ asset allocations. Theoretically, investors who stay the course and invest for the long run can benefit by investing in this asset class that has low correlations to common indexes and high expected returns. The three ETFs this post focuses on are the WisdomTree International Small Cap Dividend Fund (DLS), SPDR S&P International Small Cap ETF (GWX), and the iShares MSCI EAFE Small Cap Index Fund (SCZ).
WisdomTree International Small Cap Dividend Fund (DLS)
DLS tracks the WisdomTree International Small …

Fundamental Analysis, Investment Banking »

[20 Jul 2008 | 2 Comments | ]

In finance, investing, and business in general, valuation is a key skill. Markets set prices, but applying an accurate valuation to assets being priced in that market can provide insight into how accurate that market pricing is. However, all valuations are biased and based on many assumptions. Therefore, valuation is less of a precise method to determine the “correct” price, but rather more of an art that is a useful tool for evaluating an asset. Valuation models can be very quantitative and complex, but more quantitative models are not always better. Frequently, the …

Investing »

[15 Jul 2008 | One Comment | ]

As key mortgage financiers Fannie Mae and Freddie Mac face financial crisis combined with continued problems in the brokerage sector, the SEC has restricted short selling in these distressed areas. The plan will last 7 days, starting Monday July 21, with the option to potentially extend the order 30 days. The order has been extended additional days.
In his testimony before the Senate Banking Committee on Tuesday, the regulator’s chairman, Christopher Cox, said that the S.E.C. will issue an emergency order adding a “preborrower requirement” on the shorting of Fannie, Freddie …

Economics, Investment Banking »

[13 Jul 2008 | 2 Comments | ]

Jamie Dimon is the CEO of JPMorgan Chase, one of the few investment banks that has performed relatively well during the credit crunch. Below is a recent Dimon interview by Charlie Rose that focuses on the key current economic events.

(Part two of the Dimon interview begins at about 43:50)

Dimon states that he is not able to pick a bottom in this market. Many times guests on financial news shows like CNBC claim they can pick a bottom, but a common thread among great investors and financial leaders is …

Alternative Investments, Investment Banking »

[10 Jul 2008 | 4 Comments | ]
Bypassing Investment Banks Problematic for Private Equity Firms

Private equity firms have increasingly funded buyouts without using investment banks, but investment banks still add value to the private equity industry.