Dan Dorfman

Warning: A Midsummer Market Nightmare

May
14

By Dan Dorfman

Dan DorfmanDorfman And Dollars
Dan Dorfman follows the dollars and sense of the markets 

In the late 1500s, William Shakespeare brought us A Midsummer Night’s Dream. Now, more than 415 years later, Michael Larson, editor of the Florida-based Safe Money Report, one of the country’s more prominent bearish investment newsletters, offers us his own Wall Street version of that play. Call it, say, a midsummer market nightmare, or a resumption of last summer’s debacle, notably in July and August, when the Dow dived about 2,000 points on fears of a contagion of the European debt crisis and the June end of QE-2.

Alas, Larson sees another bummer of a summer, with the Dow tumbling over next the several months to the 12,000-12,200 range, largely triggered by a swelling global economic slowdown. Read More

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Skullduggery Suspected in Euronext-NYSE shares

May
09

By Dan Dorfman

Dan DorfmanDorfman And Dollars
Dan Dorfman follows the dollars and sense of the markets 

Hey, is there skullduggery afoot at the New York Stock Exchange, particularly in the trading of the shares of its parent, Euronext-NYSE, Inc (NYX)?

Signs sure suggest so, as evidenced, I’ve learned, by a second investigation that has been launched into such trading, this one by the Securities and Exchange Commission. It is one of a number of SEC investigations that I recently became aware of, thanks to a regulatory source. Read More

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The Joys of $100 a Share Big-Cap Stocks

May
08

By Dan Dorfman

Dan DorfmanDorfman And Dollars
Dan Dorfman follows the dollars and sense of the markets 

Don’t wince. This is about $100 stocks. If you’re about to say forget it, that triple-digit priced stocks are too rich for your blood, don’t. Granted, every investor dreams of latching on to a get-rich-quick pipsqueak stock that can go through the roof. Correspondingly, hordes of investors, fearful of stocks at towering prices, will take a shots on the cheapies, theorizing that lower-priced equities have much more upside potential than higher priced ones. That may sound right, but it’s wrong. Just the opposite has been the case in recent decades, according to a new study undertaken by the Dow Theory Forecasts, one of the country’s leading investment newsletters…Read More

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Gold Rated ‘Dead Money’ Rest of 2012

Apr
30

By Dan Dorfman

Dan DorfmanDorfman And Dollars
Dan Dorfman follows the dollars and sense of the markets 

The gold debate–up or down–rages on. One of the more interesting dimensions of this debate is the latest word from Dennis Gartman, regarded in some quarters as among the savviest newsletter writers around and a frequent guest on the leading TV business networks. However, he has often been accused of being a Romney-like flip-flopper when it comes to predicting the course of gold. No more! He told me the other day that “gold is now dead money for the rest of the year!” That comment, firm and unequivocal, comes on the heels of a sell signal he issued on the metal in early March.

Gartman, editor of the Virginia-based Gartman Letter, is sticking to his guns on his negative gold call even though the metal rallied a bit in recent days on word from the Federal Reserve that further monetary stimulus, an inflationary action, is by means off the table. Enhancing that possibility is the revelation in recent days that first-quarter GDP came in at a disappointing 2.5%– versus some expectations of a higher 2.7%, a clear sign to some market watchers that another round of quantitative easing (QE3) is simply a matter of time… Read More

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Sell in May? — Maybe, But Maybe Not

Apr
26

By Dan Dorfman

Dan DorfmanDorfman And Dollars
Dan Dorfman follows the dollars and sense of the markets 

Ugh! With all the market risks and uncertainties out there, yet another new danger is lurking that’s particularly topical at this juncture. That’s the potential selling pressure associated with that old Wall Street adage, “Sell in May and go away.”

In other words, so goes the theory, you sell your equity holdings early next month to avoid the market’s sloppy, lackluster period (say from early May through the end of October) and then you jump back into stocks in early November to capitalize on the timing of their more robust stretch (from roughly early November through the end of April). Read More

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Could the Yankees be in Play for $3-4 Billion?

Apr
16

By Dan Dorfman

Dan DorfmanDorfman And Dollars
Dan Dorfman follows the dollars and sense of the markets 

Last week, we saw another one of those periodic outbursts of acquisition fever, with both Microsoft and Facebook announcing billion-dollar deals. Even more relevant to sports fans is the question of whether that fever could soon spread to our national pastime, as well, notably to the storied New York Yankees, which, according to an estimate from one financial big hitter, could command a $3-$4 billion price tag.

That’s the enticing speculation making the rounds among some big-time financial players in sports circles following the recent blockbuster $2 billion sale of the Los Angeles Dodgers to a group, including former basketball star Magic Johnson and film producer Peter Gruber, the man behind “Rain Man.” That purchase price, which will include the use of funds from insurance companies, is widely perceived as out of touch with economic reality and strictly an ego trip for rich guys , with some baseball watchers of the opinion that the buyers may have overpaid by as much as $500 million…Read More

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