Seeing that market moves within a range, some market participants follow the trend to execute trades for quick profit. Trading shares are not held for long duration because there remains the threat of sabotage from market manipulators when market is buoyed at high level and trading volume increases.
Hot money is waiting for market news on the next movement. Currently, market participants do not have confidence to increase the weighting of equity stocks for long term holding. Due to enormous amount of surplus capital, market has more upside potential. But traders on speculation should not be too aggressive and should take profit when market tide turns.
$6 Million Gets You Into 1% at 40, but Not at 60
The price of being a One Percenter might seem like a simple number. For income, it's around $380,000 a year. For wealth, it's a total net worth of $8.4 million.
For people in their 40s, it takes a total net worth of $5.8 million to get into the one percent. For people in their 50s, it takes nearly $10 million. For people in their 60s, it takes around $11.6 million.
This matters for two reasons. First, it tells us that there are really two wealth gaps in America - the gap between the rich and the rest, and the gap between the young and the old. Of course, it's natural for wealth to accumulate over a lifetime. Yet the wealthy gap by age is growing rapidly.
Americans Think the Rich Are Smarter, But Greedier
The Presidential campaign has given us two opposing stereotypes of the wealthy - neither of which reflects the actual views of most American voters.
Republicans say that the rich are hard-working job creators who are admired - and even saluted - by their fellow Americans. They say Americans don't want to tax success and engage in wealth spreading.
Democrats say the rich didn't make it on their own, and can be heartless and uncharitable. They say Americans want the rich to pay their fair share and want to shrink the growing wealth gap.
The poll shows that the upper-income groups are happier, healthier and doing better financially that most Americans. About four in ten upper-class adults say they are in better shape now than they were before the recession. That compares with about four in ten middle-class adults who say they are in worse financial shape.
China: Not a Country for Nervous Investors
Softening Chinese demand and a swooning stock market is making investors fearful about an economic retrenchment, a prominent China-watcher told CNBC Monday.
"Right now, investors are spooked about China. It will probably grow 8%-ish for the year still, but this is not a time to own Chinese stocks," said Rutledge, a former economic adviser to presidents Ronald Reagan and George W. Bush.
Paulson & Co. Facing Some Frustrated Investors
Many of Paulson & Co.'s investors hung with it last year despite an annus horribilis in which the company's flagship hedge fund lost 35 percent. But with returns continuing to sag amid a rising equities market, some of those investors are now jumping ship.
Citigroup (C) announced last week that it was pulling Paulson off its hedge-fund investment platform and planned to take back $410 million in assets.
Morgan Stanley's (MS) brokerage firm has reportedly had the fund company on watch for possible removal from its hedge-fund platform for months now. And other investors big and small are considering redeeming their capital soon as well, say bank officials and fund of funds managers.
Paulson investor redemption windows vary according to individual fund and the timeframe of the original capital inflows. Some Advantage investors, for instance, are on quarterly redemption time frames, while others are on semiannual or even annual ones. In all cases, investors must provide 60 days' notice if they want to pull out their money.
Investors to Market: I’m Just Not That Into You
Wall Street is a funny place, with its inverse indicators, relative outperformance, and discounting mechanisms that often predigest good and bad news before it happens. And so it almost seems fitting that a week after the S&P 500 touched a 4-year high - then failed to follow through - the stock-buying community is a tad nervous about getting in on a rally that began in early June.
What's worse, even though a dollar's worth of earnings costs 15% less today than it did at the top of the market five years ago, investors are still not moved to act on this theoretical sale or value.
"One thing that we're looking at is, are investors looking for information?" Lydon says. "Surprisingly, ETF-related searches (on the internet) are down 50% from this time a year ago, so it's amazing how the average investor really is not engaged or confident about the market going forward."
"For us to make that next 11% climb from where we are right now in the S&P, to hit a new high where we were in 2007, the average investor is going to have to get engaged," Lydon says, and so-called ''cheapness" does not appear to be the motivating force.
Luxury Goods Sales Defy Global Slowdown
Luxury goods firms in Europe reported booming retail sales in Europe, Asia and emerging markets on Friday bucking the downturn seen in other retail sectors.
French luxury leather goods retailer Hermes and Italian designer shoemaker Ferragamo (Frankfurt Stock Exchange: S9L-FF) both reported double-digit increases in profits and revenues in their latest report to investors as demand for luxury goods remained robust in Asia - and even in Europe.
Hermes International, a maker of designer bags and silk scarves, said it was raising its annual growth target from 10 to 12 percent after its profits for the first half of 2012 grew 28 percent to 335.1 million euros ($418.81 million).
Both companies attributed the success of their sales figures to the continued demand for luxury goods in Asia, and even Europe, despite the economic slowdown in both regions. Michele Norsa, Chief Executive of Ferragamo, remained confident that growth would continue in Asia.
What $2 Million Buys You in Silicon Valley
Silicon Valley's dynamic, tech-based economy has inflated home prices in the area for more than two decades. But lately, thanks to a rash of IPO's and the mobility of global wealth, relatively modest properties in the suburban towns south of San Francisco have been going for mansion-like prices.
Sales of homes for $1 million or more doubled in the towns south of San Francisco in the past year, passing Beverly Hills and Miami, where the sumptuous palaces snapped up by the rich look more the part.
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