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Dow Breaks 10,000

Written By Brian Hicks

Posted October 17, 2009

Welcome to the Wealth Daily Weekend Edition – our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles.


The dollar just can’t catch a break.

But that’s okay. We’re finally above 10k… hooray!

As long as the dollar stays weak and traders remain pumped over the start of earnings season, we should have no problem staying above 10k… at least immediate term.

More in just a moment. . .


But first, in case you’ve missed any of the recent top stories from Wealth Daily and our companion publications, we’ve included them below.

Investing in Western Lithium Stock: The Best Way To Profit from the Lithium Boom
Wealth Daily Editor Brian Hicks reveals the first of six lithium stocks that are up an average of 1,578%, and how you can get in on the easy money.

Investing in Battery Stocks: Making the Sun Shine at Night
Green Chip’s Nick Hodge discusses investing in battery stocks after major global electronic companies take a plunge into the sector…

Wind Power Stocks: How Wind Energy Leads to Yachts
Energy & Capital Editor Nick Hodge comments on recent renewable energy activity with special focus on the rapid expansion of wind energy and wind power stocks.

Gold Baron Reveals His Most Precious Secret
Imagine for a moment, that you knew about certain factors – already in place – that would cause the price of gold by… say… as soon as next month to start skyrocketing. Even better, you knew you were facing a "bottom" in gold prices… and that this imminent surge could last a couple of years.

Dollar Vs. Euro: An Eye on the Euro and the Hottest Indicator on Wall Street
Wealth Daily Editor Steve Christ takes a look at the dollar vs euro and the U.S. Dollar Index: the hottest indicator on Wall Street.

9 billion barrels of light, sweet crude the Saudis will never get their hands on…
There are several companies that have seen similar situations and have rallied hundreds of percent in just a few months. If these companies can see their stock prices increase by 300%, 400% or even 500% with oil discoveries of 1 or 2 billion barrels… just imagine what a discovery of up to 9 billion barrels of oil would do to a stock’s price!

Chimera Stock: 2 Ways You Can Leverage Up Your Assets with this Company’s Stock
Wealth Daily’s Christian DeHaemer reveals a company created explicitly to profit from the debt products of the past two years…and how you can profit from their stock.

Wynn Macau Stock IPO: Vegas Billionaires Turn to Macau for Gaming Growth
Wealth Daily editor Sam Hopkins uncovers the international angle behind "Asia’s Vegas"… the Wynn Macau stock IPO.


But is the worst really behind us? It depends on who you ask.

Ask Lynn Reaser, president-elect of the National Association of Business Economists (NABE), and she’ll proudly tell you, "The great recession is over"…

…along with the 81% of economists surveyed by NABE.

But how can these same people, who couldn’t even see the start of it, now predict its end?

They can’t.

Consumers are still struggling with credit and falling behind on debts. Employment is getting worse. Personal bankruptcies are up 40% from a year ago, as filings are quickly approaching a million. And consumers don’t feel comfortable about job security and home values, opting to save more money.

Even Capital One will tell you things aren’t getting better. It just reported that U.S. credit card defaults shot up in September – another sign of consumer stress. The company said its net-charge off rate – debts that may never be collected – has risen to 9.77% in September from 9.32% in August. Loans 30 days delinquent were up to 5.38% from 5.09%.

And then we still have to worry about bailing out another disaster in the making…. prime loans and Option ARMs. It’s not about subprime anymore. Recent data from the Mortgage Bankers Association says subprime barely accounts for a third of foreclosures.

Prime loans – the cream of the crop – now takes up 58% of that share.

And the icing on the cake? Option ARMs, which only a blind man could miss, is already wreaking havoc. About 46% of Option ARMs are 30 days past due. And as you can see from the chart in this article, it’s only getting started.

Also making headlines…

  • The day before earnings, Google CEO Eric Schmidt declared the advertising recession was over… And with the company’s earnings, it appears he’s right.  Despite a growth rate of 3% — the slowest in the company’s history — revenue skyrocketed 27% year over year.
  • Intel’s Q3 report easily beat expectations for revenue and earnings, beefed up its gross margins and predicted strong year over year growth for Q4.
  • And JP Morgan issued earnings of 82 cents, far better than 51-cent estimate.  Its $28.8 billion in revenue was also sharply ahead of $25.1 billion expectations.  But aside from earnings, shareholders cheered hints that the company’s 5-cent per share dividend could go to $1 if everything is running smoothly early next year. 

Enjoy your weekend,

Ian L. Cooper
Wealth Daily

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