Wednesday, January 30, 2008
Toronto Stock Exchange Hours
TSE Trading Hours:
Toronto Stock Exchange have trading hours of 9:30 a.m. to 4:00 p.m. ET, Monday to Friday. There is also an extended session for Participating Organizations and Member Firms that extend from 4:10 to 5:00 p.m. ET each trading day.
History of the Toronto Stock Exchange?
The Toronto Stock Exchange has descended from an Association of Brokers group formed by Toronto businessmen on July 26, 1852. Twenty-four men gathered at the Masonic Hall to officially create the Toronto Stock Exchange On October 25, 1861. The exchange was then formally incorporated by an act of the Legislative Assembly of Ontario in 1878.
The TSE grew continuously except for a three month period in 1914 when the exchange was shut down for fear of financial panic due to World War I. In 1934, the Toronto Stock Exchange was merged with its key competitor the Standard Stock and Mining Exchange. The merged markets decided to keep the name Toronto Stock Exchange. In 1977, the TSX introduced CATS (Computer Assisted Trading System).
On April 23rd, 1997, the TSX's trading floor closed, thus making it the second-largest stock exchange in North America to choose a floorless, electronic (virtual trading) environment.
Through a realignment plan, Toronto Stock Exchange became Canada's sole exchange for trading of senior equities. The Bourse de Montréal/Montreal Exchange gained responsibility for the trading of derivatives and the Vancouver Stock Exchange and Alberta Stock Exchange merged to form the Canadian Venture Exchange (CDNX) to handle trading in junior equities. The Canadian Dealing Network, Winnipeg Stock Exchange, and equities portion of the Montreal Exchange later merged with CDNX.
In 2000, the Toronto Stock Exchange became a for-profit company. Then in 2001, the Toronto Stock Exchange acquired the Canadian Venture Exchange, which was renamed to TSX Venture Exchange in 2002.
Sunday, January 27, 2008
India market slide hits newbie investors
by MATTHEW ROSENBERG
NEW DELHI - Maybe Dipanker Gupta should have listened to his wife.
"She kept bothering me. 'Get out, you have made the money you need,' was all she would say to me," said the 46-year-old accountant, who made his first foray into the stock market about a year ago, pouring in his life savings to catch what may have been the tail end of India's bull run.
"I didn't listen," he said, shaking his head and throwing up his hands.
Gupta is not alone. Millions of other first-time investors like him are getting a taste of one of the down sides of capitalism: markets also drop.
Last year, the Indian market's benchmark stock index, the Sensex, soared 47 percent, in the process drawing new investors to the world of stocks and bonds _ many with little or no experience in financial markets.
But since the start of the year, the index has been highly volatile.
On Tuesday, the market sank so fast when it opened that the Bombay Stock Exchange automatically shut down for an hour. By the end of trading, the index had dropped a stunning 12 percent in just two days. It has since regained a big chunk of those losses, but remains down for the year.
There are only an estimated 5.8 million individual investors in India, a country of 1.1 billion, so there's little fear that the country's booming economy _ forecast to grow more than 8 percent this year _ will suffer if they scale back their spending.
But their losses are a psychological blow to the aspirations of India's new middle class, analysts say.
"People thought you could only make money. Even those people who were not in the market were talking about getting in the market," said Dhirendra Kumar of Value Research in New Delhi. "Most of them did not understand how the market works _ that you can lose money instead of making money."
India's markets have climbed dramatically in the past four years, a rise that coincided with the equally dramatic expansion of India's middle class as the country's once-socialist economy took off. Millions of people found themselves flush with cash and eager to get into the market.
While exact figures aren't available, the number of special deposit accounts Indians need to buy shares, which economists say is a reliable measure of how many people are investing, has more than doubled in five years. According to the largest deposit company, National Securities Depository Ltd., its accounts have jumped from about 3.8 million in April 2003 to 8.8 million at the start of this year.
More than half of those accounts are held by individual investors, and most largely enjoyed only success since making their first foray into the market. The Sensex climbed from about 2,000 points in April 2003 to more than 20,000 at the start of this year before it started falling.
While in the past there were bumps along the way _ corrections that tracked the ups-and-downs in bigger markets in Asia and the West _ "I always recovered," said Gupta.
Now he's not sure. While the Sensex has rebounded some and most of the shares he owns are still up from when he bought them, the index is down about 12 percent from where it was two weeks ago and his gains are far lower than what they were. On Friday afternoon, the index was up 6.6 percent to 18,361.66 points.
"Maybe now I should sell what I can," he said. His investment of about Indian rupees 200,000 $5,100 _ his entire life-savings _ is still intact.
But the new kitchen his wife wanted? "I don't have the money."
The new car? "No, not this year."
Still, the prospect of big returns is hard to ignore _ even for those who were indeed trapped by their losses at the start of the week.
On Tuesday, Arun Purohit was wondering how he was going to repay the friends and relatives from whom he borrowed Indian rupees $2,500 to invest, most of which had been lost as the market fell for seven straight days.
"I hoped the money would double. My life has been spoiled. What will I say to the people who lent it to me?" he said, idling on the street outside the Bombay Stock Exchange. Unshaven and disheveled, he looked like a man in serious trouble.
But by late Wednesday, when the market rebounded, the 38-year-old grocery shop owner was back in. Clean shaven and wearing a neatly pressed cream shirt and black trousers, he'd sold about half his stake and covered most of his losses.
"Now that the market has gone back up, I'm hoping to make a profit," he said.
Source: CNBC.com
Is the US Just Talking Itself Into a Recession?
By Albert Bozzo
Talk may be cheap, but the endless chatter about a looming recession may wind up being very costly to the US economy.
As Wall Street and Washington fret over what measures are needed to combat an economic downturn, there’s another debate brewing about whether the nation is talking itself into a recession when one neither exists at the moment nor is a foregone conclusion in the future.
"We're over-reacting to the recession word," Dow Chemical Chairman and CEO Andrew Liveris told CNBC. "Lots of people get together and talk to each other and people believe the psychology."
Adds Liveris: "I noticed there’s a few CEOS who feel the way I do."
And a few economists and money managers, as well.
"It feeds on itself," says Jim Awad, chairman of JW Stewart Asset Management. "You can’t go home every night and hear this and then go out and hire someone or buy a car."
The current recession-mongering--as some might call it-- has picked up in the past two weeks.
Among the recent events: a recurring sell-off in global stock markets, the rush in Washington to draft and pass a fiscal stimulus package, the Federal Reserve’s surprise decision to slash interest rates and the media’s obsession with the slumping economy at the World Economic Forum’s annual meeting in Davos, Switzerland.
Recession, in fact, was on the official agenda at Davos this week, giving the media a captive audience-- or it is prey-- to discuss the subject.
"The economy is still sorting itself through," Liveris told CNBC -- at Davos no less. "I wouldn’t do the 'Chicken Little' thing."
It may already be too late -- for Wonder Dog or Fed Chairman Ben Bernanke, for that matter.
Two big Wall Street firms began predicting a recession three weeks ago when government data showed the unemployment rate jumped to 5 percent in December. That rang recession alarms because the increase put the rate more than five-tenths above its low of the current economic cycle, which has traditionally served as the dividing line between growth and contraction. The Fed typically pays close attention to that recession barometer.
Subsequent government data has challenged – if not refuted -- that argument. Initial jobless claims this past week, for instance, showed that job losses were far below recession levels.
"If the job market remains as vibrant as the most recent data indicate, fears of recession will recede quickly, " said Nomura International chief economist David Resler, who has yet to be convinced a recession is underway or imminent.
Either is Bank of Tokyo-Mitsubishi UFJ economist Christopher Rupkey, who muses, "Merely the Fed saying ‘downside risks’ is almost a self-fulfilling prophecy."
Or at least food for thought. Take the case of Caterpillar, which announced record profit for 2007 on Friday. Though the company stopped short of forecasting a recession in the press release accompanying its financial statement, Caterpillar at various points implied or speculated on the occurrence.
Caterpillar also referred to recent statements by the Fed. "The Fed recently indicated that a weakening economy is more of a threat than inflation and that it prepared to move aggressively on interest rates," the release stated.
The company also said; "We forecast the economy will grow 1 percent in 2008, slow enough that the National Bureau of Economic Research may eventually decide that a recession occurred."
Don’t look for any helpful guidance on the current situation there. The National Bureau of Economic Research, considered the official arbiter of when recessions begin and end, has been known to determine the actual beginning of a recession at a time when history laters show that the recession was ending or in fact over.
In the case of the last recession in 2001, the organization declared in November of that year that the recession began in March. It would later turn out that the recession ended in November.
The difference this time around may be Wall Street’s closeness to the economy’s problems. In addition to what appears to be a traditional cyclical slowdown, where both consumer and industrial demand slow, current conditions have a lot to do with the so-called credit crunch, which is something of the evil twin of the housing contraction.
There’s reason to believe that if Wall Street is feeling the pain, you will hear its cries --
about the specter of recession or the urgent need for interest rate cuts
"I think it right to say a lot of the current anxiety and uncertainty is coming from Wall Street rather Main Street and it is not always that way," observes William Silber, an economic historian and professor at NYU’s Stern School of Business.
Silber, however, says he’s "not aware of any evidence" that recession talk begets a recession, but he also isn’t convinced about the likelihood of a textbook recession on the horizon.
"What the Fed says certainly influences people’s behavior but what the Fed does influences people even more," says Silber.
Wall Street’s pain – or its dread of recession – has yet to be matched on Main Street, unless you live in a city with a high rates of foreclosures.
We're probably a few months away from consumers being afraid of a recession," says Rupkey. "People don't really feel it until job losses hit a certain level and some of your neighbors lose their jobs." He notes the jobless rate peaked at 6.3 percent in the last recession.
Rupkey, Silber and more than a few other economists aren’t convinced that the Fed’s policy responses are the right medicine.
A credit crunch and the popping of an asset bubble are not necessarily corrected through liquidity, economists say. If things (house prices, securitized debt, mortgages) are over-valued lower interest rates may not be able to fix that quickly enough.
Peter Thiel, cofounder of PayPal and president of Clarium Capital Management told CNBC: "All the actions suggest an approach which got us into the mess in the first place. It’s a sign policy makers at this point are actually scared for the first time. There's a sense something is broken down and I think they still don't understand the scale of the problem."
Calling it a recession – never mind declaring one prematurely – is probably another symptom of that.
Source: CNBC.com
Saturday, January 26, 2008
Explosive Stocks in India
By Nick Kapur
You've heard the hype: India is growing ... fast.
But which investors are really putting their money where their mouth is? More important, where is it going?
George Soros, Kenneth Fisher, and David Tepper are just some of the legendary names getting a piece of the action. Need proof? Peer into Tepper's investment into Sterlite Industries (NYSE: SLT) and Soros' into ICICI Bank.
While my own perspective may be biased (I've spent a great deal of time in India and like its prospects), you can't ignore the millions these gurus have invested.
The dawn of an economic empire
Goldman Sachs issued a report in 2003 predicting that India's economy will be the world's third largest by 2035. The report cited expected annual growth rates of 5.3% to 6.1%.
Are you kidding me -- 6.1%? Since 1996, the nation has averaged more than 7%. Currently, India is pumping out near double-digit GDP growth.
Though it may be a bumpy ride, India has the potential to fulfill these optimistic promises. Unfortunately, I'm about as confident in potential macroeconomic projections as I am in my own ability to read the future. After all, questions about economic reform, infrastructure, and education must be addressed first.
But if these projections are even close, the Indian stock market will show you the money.
China vs. India: showdown of the 21st century
The real question is: How much of these two looming giants should you hold? Both are growing at accelerated rates, so it's not a simple decision. You really need both -- a good piece of China will pay off over the next few decades.
That said, I look to India to exploit an edge: its commitment to the democratic process. Yes, this may sound cliche. India's government has long been criticized for extended periods of unremarkable reform. Yet I prefer it.
Eager to highlight China's swift ability to prioritize resources -- often at the expense of its own citizens -- most experts give China the advantage. If Aluminum Corp. of China (NYSE: ACH) needed to demolish a neighborhood to create a new mill -- POOF -- it'd be done!
If our own local governments could operate with that kind of unencumbered authority, we'd have fewer potholes, better public schools, and less-congested roadways. If the government would put ceilings on prices from Archer-Daniels-Midland (NYSE: ADM), we wouldn't be facing rising grain and food costs thanks to zooming demand for ethanol. But this is simply not how our government works -- and I like it that way.
Advantage: India
Long term, India's commitment to democracy is a massive benefit. The economies of Brazil, Taiwan, South Korea, and, yes, even the United States can testify to that.
At its simplest, India is attempting to build a foundation of sustainable yet powerful growth. And it is doing it through a functional democratic process that is accountable to its citizens.
Taking stock
When it comes down to companies, India has some specific areas of critical advantage. The IT outsourcing world has been hit before. But I think Sify Technologies (Nasdaq: SIFY) is still intriguing, along with others in the industry, many of which have been battered of late.
In the financial world, our Global Gains team of analysts picked up on another Indian bank that has delivered tremendous returns this year. Attacking its own content-hungry consumers, Rediff.com (Nasdaq: REDF) has created a strong online presence for Indians and has the potential to resemble a certain Chinese portal: Baidu.com (Nasdaq: BIDU). Rediff is certainly not on the same scale of popularity or profitability yet, but if India can increase its broadband penetration rates, Rediff will clearly benefit.
Down the road, India's advanced medical system should begin to reveal profitability in a big way. Though the sector is still immature, look to companies like Dr. Reddy's Laboratories to help promote growth. The company is one of India's largest medical firms, but its $3 billion market cap is just a blip compared to that of Amgen (Nasdaq: AMGN). In other words, there's plenty of room for growth.
Source: http://www.fool.com/investing/international/2008/01/07/explosive-stocks-in-india.aspx
Wednesday, January 16, 2008
Is US Headed for a Recession? Who Cares?
By Rich Greifner
Is the United States headed for a recession? Yale professor Robert Shiller certainly thinks so. In a recent interview, Shiller told The Times that the American real estate sector has "trillions of dollars' worth of losses" yet to come, and it could plunge the U.S. into a "Japan-style slump."
But don't tell that to U.S. Treasury Secretary Henry Paulson, who said that "the economy and the markets are strong enough to absorb" rising credit losses. He remains confident that the country will not slide into recession.
Then there's financial newsletter tracker Mark Hulbert, who concluded that "the odds had increased that we were already in a recession" -- and he wrote that in September!
The three wise men
When three experts offer three different opinions, it's difficult to know whom to trust. So here's my advice: Ignore them all.
Seriously, ignore them all
Suppose Shiller's correct, and the U.S. is headed for a recession. Or maybe Hulbert has it right, and we've been in a recession for months. Does it ultimately matter? Should you alter your stock selection process? Should you sell off your stock holdings in favor of government bonds?
Just what the heck is a recession, and what does it mean for stocks? The answers may surprise you.
What goes up must come down
A recession is the period between a peak of economic activity and a trough. Recessions typically last between six and 18 months, and they're a perfectly natural part of the business cycle. A recession does not mean that economic growth has stopped; it merely means that it has slowed down.
To determine whether the economy is in recession, the National Bureau of Economic Research (NBER) analyzes changes in factors such as gross domestic product, personal income, employment, industrial production, and retail sales volume. There is no fixed rule for how the different indicators are weighed.
But there is a significant delay
It takes time for the NBER to collect and analyze this economic data. By the time it's determined that the country is in a recession, odds are that the economy is already close to recovering. For example, the last trough in economic activity occurred in November 2001 -- but the NBER didn't make that determination until July 2003. By that time, the economy had been improving for over a year and a half!
Wait, stocks can go up in a recession?
Since 1945, there have been 11 recessions lasting an average of 10 months each. But according to a recent article from Hulbert, during these recessions, the stock market actually rose seven times -- and the average market return during all 11 recessions was 3%!
Those who ignore the past ... continue....
Friday, January 4, 2008
Don't Forget the Only Reason to Invest
By Chuck Saletta
There is exactly one reason to invest: To turn a little cash today into more cash tomorrow, or next year, or 10 to 20 years from now. You get the point.
Now, there are two ways to make money in the market:
1. Capital appreciation.
2. Dividends.
You can try to do one with the other, sure, but your earning power is significantly enhanced if you put the two of them together.
The thing about ...
The problem with chasing capital gains and only capital gains is that you need to be right twice with every investment you make. To buy low and sell high, you need to know the right price at which to buy and the right price at which to sell.
It may sound easy, but it's not.
The problem with chasing dividends and only dividends is that yields on annuities tend to be very low (between 4% and 6%). If you hold these investments over long periods of time, you're quite likely to lose the purchasing power of your savings to inflation.
When you combine the chance at capital gains with dividends, however, then you start cooking with gas.
The big win
When you get serious about dividends, you'll likely find that you're much better at stuffing your portfolio with stocks you may never have to sell. That's because dividend-paying companies will reward you each and every year, and a rising payout along the way would indicate a firm that remains in good long-term health.
As a result, you only have to be right once. That's at least 50% more likely.
Best of all, when all is said and done tomorrow, next year, or (more likely and more accurately) 10 to 20 years from now, you could very well get back more than you initially invested and still own the companies that paid you those dividends.
This chart shows the power of owning solid dividend-payers for two decades:
Company ............................................Price(1987).....Dividends (1987 to 2007).....Price in 2007
Anheuser-Busch (NYSE: BUD)..........................$7.91..............$11.93................................$52.85
Merck (NYSE: MRK))..................................$8.68..............$21.64................................$58.71
Automatic Data Processing (NYSE: ADP)).........$5.45..............$11.48................................$44.71
Illinois Tool Works (NYSE: ITW))....................$3.72..............$6.62................................$54.04
Lowe's (NYSE: LOW)).................................$0.53..............$1.07................................$22.66
Wal-Mart (NYSE: WMT))...............................$3.20..............$4.87................................$48.08
Nucor (NYSE: NUE))..................................$2.43..............$6.35................................$60.85
Values split-adjusted where applicable.
Remember why you invest
Over time, with dividend-paying companies, you can:
1. Make an investment
2. Get more than your total invested capital back
3. Still own the business that generated your wealth.
If you invest to wind up with more cash at the end than you had when you started, there's simply no better place to look than at stocks that pay dividends.
Source:
http://www.fool.com/investing/dividends-income/2008/01/04/dont-forget-the-only-reason-to-invest.aspx
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