Showing posts tagged facebook

Could Lowering Taxes Help The Economy?

Quarter after quarter we see earnings reports, some make sense some do not. All in all they are in a language most people do not understand and they dismiss it as not relevant. That could not be further from the truth. All earnings tell a story about the company, but more importantly it tells a story about the economy and how well its doing. The lay person should not base their understanding of how the economy is doing solely on how their 401k is doing.

Why you ask are earnings so important? Corporate earnings help explain how the company is doing now but also 6-9 months from now. So its a very good indicator of how economies around the world may be doing as well.

As earnings are being reported this quarter we are starting to see the affects of the global economy and conditions take its toll on companies here in the US. Our government has tools to counter what the US economy has been going through. However, at this point in time they have used up all their tools to fix things except one possibly - lowering taxes. Its interesting why this administration lead by President Obama would not consider this tool and spare all others. Spare us from the inflation backlash that this country is going to experience when all the money being printed comes back to haunt this economy, spare us from the high unemployment we have been experiencing over the last 40+ months, and why not spare us from the low to no economic growth in this country.

It will be very interesting to see the outcome of the election and the actions after the elections. Take this brief poll..


Review the full write-up by Ed Butowsky, One Tool Left to Jumpstart Economic situation: Lower Taxes, at Fox

Lowering Taxes May Be The Only Trick Up Obama’s Sleeve To Help This Economy

Just like the way things on sites like twitter and Facebook are penned into history when you submit a status, so to are earnings reports when they are released quarter after quarter. But what are they really saying. In the current economic conditions they seem more and more less relevant because of the language used. However the reality is these earnings reports tell the entire story about a company and help investors and economist determine the true health of this economy. Without such things we would not be able to understand the direction we are going or how well your retirement funds will do - especially your 401k as an example.

The government especially pays close attention to these reports because if things are going well they have tools at their disposal to help keep the economy at a steady state, and to the contrary if the economy is not doing well they have tools to help stimulate the economy. However, at today’s stage in our economic health those tools have been used up all except for one - lowering taxes. This surely will help especially if its directed at Corporate America.

If you ask the current administration under President Obama, they feel there is still some things that can be done. The main thing they are doing right now is quantitative easing (another big term) which means print more money. This action is slowly eroding away at your purchasing power of your money, is that what we want?

Read the full article by Ed Butowsky, One Tool Left to Jumpstart Economy: Lower Taxes, at Fox Business.

UBS Loss On Facebook Trading May Be In The Hundreds Of Millions

UBS is sitting on big Facebook loses. Unconfirmed sources say its upwards of $350 million that would be ten times more than the estimates on the street. The market making arm of UBS is down $30 - $35 million, but UBS itself has not disclosed the full extent of these loses related to Facebook trading. The issue has to do with the failure to get confirmations and execution statements from the Facebook trades. UBS had put in for one million share allocation, but when they did not receive the confirmation repeated the order multiple times. All the clicks eventually went through and UBS ended up with more stock then they originally wanted. Sources say that UBS is preparing legal action against NASDAQ as a result. Whether NASDAQ will be held liable is debatable. Should UBS brokers have continued to click on the submit button, probably not. Some people are saying this is simply human error. At the end of the day sources say that NASDAQ should have halted trading of Facebook stock when it was clear that confirmations were clearly not coming in on time. Apparently UBS tried to offload the stock at $35 per share but could not catch a bid, and sold some of their positions under $30 per share. Ed Butowsky, wealth manager, financial advisor, and managing partner of Chapwood Investment Management, joins CNBC Closing Bell to discuss the reality behind UBS’s claim to have lost potentially $350 million and how many other firms have realized the same impact of the trades or lack there of.


Ed Butowsky is the managing partner of Chapwood Investment Management and is an internationally recognized expert in the investment wealth management industry. Ed is also a frequent guest on other networks such as CNN, NBC, ABC, Fox News, Fox Business, and Bloomberg to name a few.
 
Original Article

Rocky Start As Facebook Makes Its Wall Street Debut

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Did Facebook just lose face or just kind of lose face? Investors who were hoping that hype had paid off and sit back and watch the IPO double on its first day were a little disappointed. The stock surged 11% as soon as it opened, then immediately dropping and struggling much of the day to stay even with the open - $38 per share. At the close on Friday, Mark Zuckerberg’s stock value was holding just north of $19 Billion - propelling him into one of the richest people on the planet. Ed Butowsky, wealth manager, financial advisor, and managing partner of Chapwood Investment Management, joins Fox News’ Your World with Neil Cavuto to examine Facebook’s lackluster performance on their stock market (Nasdaq) debut and how it could potentially be a good thing to the economy.

Ed Butowsky is the managing partner of Chapwood Investment Management and is an internationally recognized expert in the investment wealth management industry. Ed is also a frequent guest on other networks such as CNN, NBC, ABC, Fox News, Fox Business, and Bloomberg to name a few.

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Would You Buy Facebook Stock?

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GM (General Motors) made a public announcement that it was pulling its ads from the social network (Facebook) even though demand for Facebook shares had gone up just prior to the first trade on Friday - IPO shares rose from 337 million shares to 421 million shares. GM explained that its main reason for pulling its ads was because it had little impact on consumers. The result was that many internet stocks went down due to this news. Some of the companies that were impacted on this news were Groupon, LinkedIn, and Pandora. In light of this news and the market reaction to internet stocks the real question about Facebook is how does Facebook intend to make money. Facebook has over 900 million users, but how do they get money out of those users and get it back to the company. Ed Butowsky, wealth manager, financial advisor, and managing partner of Chapwood Investment Management, joins Fox Business’ Varney & Company to discuss the reality behind the current valuation of Facebook and whether there is sufficient evidence to effectively measure the advertising they provide.

Ed Butowsky is the managing partner of Chapwood Investment Management and is an internationally recognized expert in the investment wealth management industry. Ed is also a frequent guest on other networks such as CNN, NBC, ABC, Fox News, Fox Business, and Bloomberg to name a few.

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Don’t Get Too Giddy Yet

I would like to make a slight change to the famous song “Don’t Worry, Be Happy.”

How about “Do Worry, But Be Happy.” OK, I’ll admit my version doesn’t flow as well, but the point is this: Stock prices have risen to their highest level in years, based on a positive outlook for the U.S. economy and improving corporate earnings. That’s something to be happy about.

For months, I have been cautiously optimistic that stock prices would continue to rise, but I have never felt totally comfortable that the economy, the job market and home prices support that optimism. But stock prices are leading indicators of the economy, and many analysts believe the robust stock market is clearly signaling a strong economic recovery.

I am not convinced of this. Stocks prices rise for many reasons, and I’m not seeing that either the U.S. economy or the global economy support this year’s market gains yet.

Therefore, I suggest that investors secure some of their recent profits and put stop orders underneath most of their holdings to protect against a big sell-off.

I am as happy as the next person about the rising stock market, but I’m not oblivious to the potential dangers. I want to see much stronger economic growth.

Until I do, I will continue to be cautiously optimistic. Bottom line: Take some profits now but be happy.

Ed Butowsky is the managing partner of Chapwood Investment Management and is an internationally recognized expert in the investment wealth management industry for over 25 years. Check out Ed’s discussion topics for a quick tip or two for your own financial well-being in his Media Center or follow Ed Butowsky on Facebook.

Billion Dollar IPO For Facebook


Facebook will IPO, and do so in probably the biggest IPO since Google.

Learn All About Ed Butowsky

Ed Butowsky,The Man, managing partner of Chapwood Investment Management, recognized around the world as an expert in the investment wealth management industry. Aside from his passion for expanding others financial literacy, he can be seen frequently on television on such stations as Fox Business and News network affiliates, CNN, Bloomberg, as well as local North Texas channels such as NBC, ABC, CBS, and Fox to name a few.

Facebook Will Reportedly File For IPO On Wednesday