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economy - All posts tagged economy

  • Feb 28, 2012
    9:55 AM ET

    Why Luxury Home Prices May Fall Further

    The housing bust isn’t over yet. Home prices hit their lowest levels since 2006, and experts say more losses could be on the way — in particular for the nation’s priciest properties.

    New figures from the S&P/Case-Shiller Home Price Indices released today show prices fell for the fourth straight month in December. Of the 20 metropolitan areas tracked, prices in all but one city fell over the past year. And in several cities a new trend appears to be unfolding: home prices stopped falling among lower-priced homes while price declines are picking up among the more expensive ones.

  • Feb 23, 2012
    2:24 PM ET

    How to Bet on Europe’s Recession

    Europe expects to be in a recession this year, and the continent’s Central Bank isn’t budging on the need for severe austerity measures for the worst-hit countries. But some advisers and fund managers see opportunity in this continuing gloom.

    The European Commission released fresh economic projections on Thursday that showed the euro-zone’s economy contracting in 2012, a sign that conditions have worsened since November, when the region was expected to show slight growth for the full year. Also Thursday, the president of the European Central Bank said countries like Greece should stick to their strict deficit targets, recession or no recession.  The EU now projects Greece’s economy will shrink by 4.4% this year, worse than the 2.8% contraction projected in November, and Italy and Spain are now projected to see contractions for the year. Like the euro-zone itself, they had previously been expected to grow slightly.

  • Jan 27, 2012
    9:31 AM ET

    Why GDP Doesn’t Bode Well for Jobs

    The U.S. economy may be growing faster than it has in more than a year, but today’s fourth-quarter GDP report also comes with a potentially bad sign for jobs, analysts say: lower spending on services.

    The economy grew 2.8% in the fourth quarter, the Commerce Department reported today. That’s significantly stronger than the 1.8% growth seen in the third quarter, but falls short of the 3% growth economists had expected. But the fourth quarter’s weaker spending on services is particularly worrying for the jobs market, which had shown some signs of improvement, analysts say. After a 1.9% increase in the third quarter, spending on services grew only 0.2% in the fourth quarter. “That’s the sector that creates the jobs for us,” says Robert Brusca, the chief economist at Fact & Opinion Economics.

  • Nov 29, 2011
    11:14 AM ET

    Home Prices Drop: New Challenges for Sellers

    Home prices continue to fall, but a new group of cities is now leading the declines and posing new problems for home sellers.

    Data released this morning by the S&P/Case-Shiller Home Price Indices shows that nationally home prices posted an annual decline of 3.9% in the third quarter compared to a year ago. But home prices fared far worse in cities that up until recently haven’t been associated with the housing crisis. “The poster children of the foreclosure problems are no longer the ones declining the most,” says H. Pike Oliver, senior lecturer at Cornell University’s Department of City and Regional Planning.

  • Nov 29, 2011
    10:02 AM ET

    Are Europe Debt Fears Finally Easing?

    Stocks jumped again this morning, following yesterday’s big gain on good news out of Europe, but financial advisers are warning clients against making too much of the bounce.

    Following reports that European leaders were nearing a new agreement that would give central authorities more control over countries’ budgets, the Dow Jones Industrial Average rose nearly 300 points. The rally comes after an unusually bad Thanksgiving week, in which the Dow lost nearly 5%. With yesterday’s lift, the major stocks indices are still in the red for the year but are inching toward break even, with the Dow down about 1%.

  • Oct 3, 2011
    11:54 AM ET

    3 Ways to Handle the European Drop

    European stocks kicked off the week with yet another drop. The move followed more bad news from, you guessed it, Greece: The country indicated its budget deficit would be higher than the target it was supposed to hit to keep receiving aid from the International Monetary Fund, the European Union and the European Central Bank, as the WSJ explains.

    For American investors, this latest drop again raises the question of how much exposure a portfolio currently has to the troubled continent — and how that exposure can be safely reduced. Here are a few first steps.

  • Aug 13, 2011
    5:45 PM ET

    Sorry You Went to Cash?

    So you cashed out. And now that the Dow ended last week with two  straight days of triple digit gains, you’ve probably been kicking  yourself since Friday’s close, wondering what you’re going to do come  Monday morning.

    You’re not alone: Plenty of investors moved  to cash early last week when the market first cratered. For example,  U.S.-domiciled equity funds saw net outflows of $14.4 billion in the  week ending Aug. 10, according to Lipper — the biggest wave of net  redemptions since May of 2010. Some even got the timing all wrong,  locking in losses for the year instead of avoiding them.

  • Aug 12, 2011
    3:40 PM ET

    Are We Out of the Woods Yet?

    Investors breathed a sigh of relief as U.S. markets rallied for a second consecutive day on Friday, taking heart at positive retail sales for July and shrugging off a sharp fall in consumer sentiment. But despite the rally, many market experts say we’re still a long way from pro-longed recovery and to expect more turbulence ahead. Some economists still fear the U.S. is heading inexorably toward a double-dip recession: Economist Nouriel Roubini warns that the risk of a global recession is now greater than 50% and, according to a survey by The Wall Street Journal, more economists now see U.S. entering a double-dip recession within the next year: 29% versus 17% just a month ago.

  • Aug 12, 2011
    2:10 PM ET

    Financial News You Missed

    With stocks now in slightly calmer territory today — the Dow is up more than 100 points — it’s OK take a market break. After all, watching the market’s unprecedented four-day run of more than 400-point moves has been, well, intense. And really hard to look away from. But believe it or not, even during all this upheaval, other stuff kept happening. Here’s some of what you missed.

  • Aug 10, 2011
    1:05 PM ET

    The Safe Haven That’s Up 14%

    Savings accounts are paying next to nothing, but next to stocks, dollars are doing great.

    Most savings accounts pay less than 1% right now, and rates won’t increase for at least two years, the Federal Reserve suggested yesterday. Why? It wants to nudge savers into following its A-B-C investment plan: anything but cash. The idea is that if savers buy stocks or real estate instead of sitting in cash — or even better, spend — the economy will grow, markets will recover and all will end well.

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