Posts Tagged income
The richest counties in America
Posted by Oksana Grebenjuk in Budget, Favourites on Апрель 29th, 2011
The residents of America’s 100 largest counties collectively earned a cool $5.86 trillion in 2009. That’s trillion with a T.
California’s Los Angeles County led the way with total personal income (TPI) of $402.46 billion, according to newly released figures from the U.S. Bureau of Economic Analysis.
The runners-up in total personal income were:
Cook County, Ill. (Chicago) — $244.06 billion
Harris County, Texas (Houston) — $196.78 billion
New York County, N.Y., a/k/a Manhattan — $171.95 billion
Orange County, California (Los Angeles area) — $148.37 billion
Maricopa County, Ariz. (Phoenix) — $142.01 billion
San Diego County, Calif. — $139.58 billion
Dallas County, Texas — $111.32 billion
King County, Wash. (Seattle) — $109.05 billion
Santa Clara County, Calif. — $99.55 billion Read the rest of this entry »
Why inflation hurts more than it did 30 years ago
Posted by Oksana Grebenjuk in Budget on Март 21st, 2011
Inflation spooked the nation in the early 1980s. It surged and kept rising until it topped 13 percent. These days, inflation is much lower. Yet to many Americans, it feels worse now. And for a good reason: Their income has been even flatter than inflation.
Back in the ‘80’s, the money people made typically more than made up for high inflation. In 1981, banks would pay nearly 16 percent on a six-month CD. And workers typically got pay raises to match their higher living costs. No more.
Over the 12 months that ended in February, consumer prices increased just 2.1 percent. Yet wages for many people have risen even less — if they’re not actually frozen. Social Security recipients have gone two straight years with no increase in benefits. Money market rates? You need a magnifying glass to find them.
That’s why even moderate inflation hurts more now. And it’s why if food and gas prices lift inflation even slightly above current rates, consumer spending could weaken and slow the economy.
Consumer inflation did pick up in February, rising 0.5 percent, because of costlier food and gas. Still, looked at over the past 12 months, price increases have remained low. Problem is, these days any inflation tends to hurt. Read the rest of this entry »
10 Reasons You May be Required to File a Tax Return Even if you had Little or No Income
Posted by Oksana Grebenjuk in Budget on Март 11th, 2011
Every tax season I get calls from clients with a “quick question:” Do I need to file a tax return? I only made seven grand (or some other small amount).
We’re dealing with tax law, so I hate to tell you this, but there’s practically no such thing as a quick question or quick answer anymore. It’s easier to untangle fives miles of Christmas tree lights than to answer a quick tax-related question.
Most people are aware that there are income requirements for filing a federal income tax return. Most people also think that if their income falls below those income requirements, they don’t need to file. This is not necessarily so, in fact, in many cases, filing a tax return will get you an unexpected income tax refund. And naturally, in other cases, where filing is required even if below the income thresholds, you will pay the tax man.
Here are the exceptions to the income thresholds:
1.) If you are self-employed with earnings of $400 or more, you are required to file an income tax return. The self-employment tax, which funds your Social Security, kicks in at that level. You especially want to do so if you have write offs that will result in a net operating loss, which can be carried back to get refunds from taxes paid in prior years or carried forward to offset income in future years. Read the rest of this entry »
Dow’s Surge to 12,000 Echoes April With 81% of Stocks Above Average Price
Posted by Oksana Grebenjuk in Fund Markets on Февраль 2nd, 2011
Investors who pushed the Dow Jones Industrial Average above 12,000 for the first time since 2008 this week may be getting ahead of themselves.
The gauge surpassed that level the past two days before plunging the most since 2010 today, preventing the longest stretch of weekly gains since 1995. As of yesterday, more U.S. stocks were trading above their 200-day average price than any time since April, when the Dow began a 14 percent slump, and the cost to insure against Standard & Poor’s 500 Index losses fell to an almost three-year low.
The Dow may have surged too fast following its more than 2,000-point jump since August even as analysts forecast a third straight year of profit growth for the S&P 500, said James Investment Research Inc.’s Tom Mangan and BB&T Wealth Management’s Walter “Bucky” Hellwig. Mangan and BGC Partners LP’s Michael Purves see signs investors are too optimistic about the next few months.
“We expect a setback of 10 percent or more in the S&P 500 and the Dow,” said Mangan, who helps oversee $2.4 billion in Xenia, Ohio. “The market is going to face much stronger headwinds over the next months as the rally gets old and it gets increasingly difficult to find a rationale for further gains, but there will be a lot of buyers on a pullback and it would probably be a short-lived decline.” Read the rest of this entry »
Cheapest Dow Dividend Stocks For 2011
Posted by Oksana Grebenjuk in Fund Markets on Декабрь 8th, 2010
Merck(MRK: 35.12, -0.18) sells pharmaceuticals including Nasonex, Pepcid and Crixivan.
Quarter: Merck’s third-quarter net income tumbled 90% to $342 million and earnings per share fell 93% to 11 cents, hurt by a higher share count. However, excluding one-time items, earnings decreased a modest 6% to 85 cents. Revenue surged 94%. The gross margin rose from 83% to 91%, but the operating margin stagnated at 30%. Merck held $11 billion of cash and $18 billion of debt at quarter’s end, equal to a quick ratio of 1 and a debt-to-equity ratio of 0.3.
Valuation: Merck’s stock sells for a forward earnings multiple of 9.2, a book value multiple of 1.9 and a sales multiple of 2.5, 21%, 60% and 22% discounts to pharmaceutical industry averages. Its cash flow multiple of 12 is on par with its pharma peer average. Merck commands a trailing earnings multiple of 13, compared to a five-year average earnings multiple of 15. The stock has underperformed the Dow in 2010, falling 3.9% as the broader index rose 9%.
Dividend: Merck pays a quarterly dividend of 38 cents, equaling a yield of 4.3% with a payout ratio of 54%. It has paid a 38 cent dividend since 2004. Prior to 2004, Merck had a record of distribution increases.
JPMorgan Chase(JPM_) is a diversified financial company whose commercial bank serves 26,000 clients. It also has an investment banking unit. Read the rest of this entry »
IMF: HK economic growth robust, but risks remain
Posted by Oksana Grebenjuk in Trading Markets on Ноябрь 23rd, 2010
Hong Kong’s economic growth is likely to reach 6.75 percent this year and moderate to 5-5.5 percent in 2011, the International Monetary Fund (IMF) said on Wednesday.
«The Hong Kong economy is now back onto a robust growth trajectory with the key sources of demand firing on all cylinders,» the IMF said. «Net exports have been buoyed by vigorous growth in the Mainland and the ongoing global recovery. Investment has benefited from the implementation of various multi-year public infrastructure projects and private investment in machinery and equipment has picked up. At the same time, consumption bounced back as labor market conditions improved and confidence returned.»
Hong Kong Financial Secretary John Tsang welcomed the IMF’s positive outlook for the SAR, noting «the continued broad-based recovery of the economy shows Hong Kong has weathered the global financial storm well».
However, the IMF also pointed out that Hong Kong now faces a very different set of challenges from those of the past two years.
«As the output gap closes, inflationary pressures are likely to rise in both factor and product markets,» it said. «At the same time, strong domestic growth prospects and abundant global liquidity have the potential to attract further capital inflows. Finally, accommodative monetary conditions imported from abroad-combined with tight domestic supply conditions for new housing units-are already fueling property price inflation. Read the rest of this entry »
Turnaround In U.S. ISM Contradicts Analysts Best Guess
Posted by Oksana Grebenjuk in Fund Markets on Ноябрь 4th, 2010
Fixed income trading got off to a blistering start in a week where news events are likely to determine the fortunes for bond prices for the remainder of 2010. The first in a series of critical surveys showed the Chinese manufacturing expansion continued and is likely to be followed by more of the same around the world extending also to the service sector.
And while the diffusion indices are a positive influence on risk sentiment they will not be enough to stop more quantitative easing from either the Fed or the Bank of England. Markets continue to rally ahead of the FOMC statement precisely because the central bank’s action is a growth-positive event. On Friday the October jobs report may yet show a deeper thaw in the labor market if the latest initial claims reports are anything to judge by.
Eurodollar futures – The December 10-year note futures contract has erased an initial 10-tick gain, currently sitting at 126-10 to yield 2.61%. The manufacturing sector picked up steam throughout October with the ISM survey rising further into expansion territory rather than falling. The FOMC’s two-day meeting starts on Tuesday and markets may be slow until then. For now the bias is towards lower yields in anticipation of a large amount of quantitative easing. Ever since the Fed said it would survey market participants over their sense of direction in light of the magnitude of the actions of the central bank, dealers have geared up for more rather than les. Eurodollar futures have also pared earlier gains once again with implied yields now higher lower by a couple of pips across the curve. Read the rest of this entry »
Citigroup, Inc. Helps Propel This ETF Higher
Posted by Oksana Grebenjuk in Fund Markets on Октябрь 20th, 2010
«Citigroup Inc. (NYSE:C: 4.135, -0.035) reported a surge in quarterly profit Monday as credit-loss provisions fell, but revenue dipped as the company’s consumer-lending and investment-banking businesses weakened. Citigroup (NYSE:C: 4.135, -0.035) said its third-quarter net income came in at $2.17 billion, or 7 cents a share including preferred dividends. That compares with a profit of $101 million in same period a year earlier, when it reported a per-share loss of 27 cents,» John Spence Reports From MarketWatch.
«Last year’s third-quarter per-share loss was related to the U.S. government’s exchange of preferred securities for new common stock of Citigroup (NYSE;C). The transaction boosted the bank’s capital, but cut income available to common shareholders by more than $3 billion and left the government owning more than a quarter of the company. The government has been selling its stake in Citigroup (NYSE:C) this year, but it remains a major shareholder. Meanwhile, Citigroup (NYSE:C) is trying to sell or unwind businesses it doesn’t want, leaving it a leaner, overseas-focused bank,» Spence Writes.
«Overall, I am very pleased with the progress we are making,» Citigroup (NYSE:C) Chief Executive Vikram Pandit said in a statement. «Our unique footprint and strong presence in the emerging markets have us well aligned for the growth trends we see globally.»
Erik Oja, a financial analyst at Standard & Poor’s Equity Research, highlighted a big drop in third-quarter provisions versus the second quarter, describing it as a positive. «We see improvements on track, and we keep our $5 target price,» Oja added in a note to investors. Read the rest of this entry »
Is It Time To Sell Long-Bonds?
Posted by Oksana Grebenjuk in Fund Markets on Сентябрь 9th, 2010
As the market declines and fear sets in, there has been a pronounced movement from equities to bonds. This cash in-flow has helped fuel higher bond prices and lower interest rates. For some portfolios, bonds have been one of the few positives over the last 24 months. Is it possible that bonds are the next big bubble to burst?
Jeremy Siegel certainty thinks so based on his recent Wall Street Journal article The Great American Bond Bubble. In the article, he opined that the bond bubble may have far more serious consequences for investors than the internet and technology bubble that burst some 10 years ago. The Nasdaq has yet to recover those losses as it is currently selling at less than half the peak it reached a decade ago.
The longer a bond’s maturity, the more volatile its price. Thus, long and intermediate bonds stand to lose substantially when rates reverse, as noted in the aforementioned article:
If over the next year, 10-year interest rates, which are now 2.8%, rise to 3.15%, bondholders will suffer a capital loss equal to the current yield. If rates rise to 4% as they did last spring, the capital loss will be more than three times the current yield. Is there any doubt that interest rates will rise over the next two decades as the baby boomers retire and the enormous government entitlement programs kick into gear? Read the rest of this entry »
Consumer Spending in U.S. Rises More Than Forecast
Posted by Oksana Grebenjuk in Favourites, Trading Markets on Август 30th, 2010
Consumer spending in the U.S. rose more than forecast in July, exceeding gains in incomes, a sign the improvement will not last without more jobs.
Purchases rose 0.4 percent, the most since March, after little change the prior month, Commerce Department figures showed today in Washington. Incomes climbed 0.2 percent, less than projected, and the savings rate dropped.
Disposable incomes, or the money left over after taxes, dropped for the first time since January after adjusting for inflation, showing the lack of jobs is hurting Americans’ spending power. Companies from Intel Corp. to J. Crew Group Inc. are cutting forecasts as unemployment and flagging confidence prompt households to scale back.
“This, so far, is allaying near-term double-dip concerns,” said Derek Holt, an economist at Scotia Capital Inc. in Toronto, referring to fears the world’s largest economy will tip back into a recession. “It nonetheless showcases very lackluster growth in the U.S. economy.”
Stock-index futures fell after the report, extending earlier losses, and Treasury securities rose. The contract of the Standard & Poor’s 500 Index was fell 0.3 percent to 1,060.3 at 8:54 a.m. in New York. The yield on the benchmark 10-year Treasury note dropped to 2.60 percent from 2.65 percent late on Aug. 27. Read the rest of this entry »
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