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Investors turn back to stocks

first_img That leaves stocks. According to Kleintop, earnings per share for companies listed in the Standard & Poor’s 500 index have risen 46 percent since 2001 and dividends per share are up 39 percent. Yet a stock’s value, measured by comparing its price to potential earnings, has declined. In 2001, stocks were priced about 22.2 times forward earnings, compared to 13.8 times forward earnings today, Kleintop said. In other words, while a given stock may have risen or fallen over the past five years, stock investors could get more for their dollar overall on Wall Street. There’s evidence that investors are already moving back to stocks. Mutual fund companies reported strong inflows through the second half of 2005. And in the first two weeks of 2006, E-Trade Financial Corp. said it has seen a 50 percent increase in walk-in traffic at its New York financial center. On Monday, when the Dow first topped 11,000, E-Trade’s trading traffic saw a two-year high. “I definitely think you’re seeing more investor confidence in the marketplace,” said Michael Curcio, executive vice president for retail at E-Trade. “But it’s also a different kind of investor than we saw during the dot-com bubble.” In the 1990s, investors jumped on anything in the tech sector, regardless of whether the companies even planned to turn a profit in the near future. That exuberance, which was all but destroyed when the tech-focused Nasdaq dropped 78 percent in just 2 years, has been replaced by a new appreciation of well-established, profitable, dividend-paying companies. “It’s not a sector play. There’s no real huge leader like tech was in the `90s,” Kleintop said. “It’s about finding the right company with a compelling story.” 160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! AD Quality Auto 360p 720p 1080p Top articles1/5READ MOREGift Box shows no rust in San Antonio Stakes win at Santa Anita Since the dot-com bubble burst in 2000-01, the housing market has taken off. The number of home sales climbed steadily since 2001, the last time the Dow was at 11,000. And while the Dow eventually fell to 7,286.27 on Oct. 9, 2002 – the nadir of the bear market – home prices have doubled or even tripled in some areas, such as New York, San Francisco and southern California. Yet recent evidence suggests the housing market is slowing. Existing home sales are expected to fall 4.4 percent in 2006 after years of record sales, while new construction is expected to drop 6.6 percent, according to the National Association of Realtors. And the median price of a home, forecast to rise 12.9 percent for 2005, is expected to climb just 5.1 percent this year – a solid increase, but small compared to the ones real estate investors have enjoyed over the past few years. “Baby boomers are turning 60, and they’re working to build up those nest eggs for retirement. For some that are running behind, that means putting at least some of that nest egg into more aggressive investments,” said David Kelly, senior economic adviser at Putnam Investments in Boston. “For a while, that was real estate or high-yield bonds. Not anymore.” Investor confidence in high-yield bonds has been shaken over the last year as the at-risk companies that issue them have struggled – just look at General Motors Corp.’s bonds, which tumbled in value, or those of Refco Inc., the one-time financial services darling that plummeted into bankruptcy after its chief executive allegedly hid $430 million in bad debts off the books. Even government bonds have been volatile, with the yield curve inverting in the last week of 2005. Normally, long-term bonds like the 10- or 30-year yield more than a two-year or shorter-term note, because the government is borrowing the principal longer. But when the curve inverted, the two-year had better returns than the 10-year and increased investors frustrations. NEW YORK – Bruce McMeiken has had a good run investing in real estate near his Orange County, Calif., home. Now, however, he thinks there’s a better place for his money: the stock market. “I don’t think we’re all the way back yet in stocks, but I believe there’s some good bargains out there,” said McMeiken, a one-time dot-com executive. “Real estate’s been good, and I don’t think you’re going to see that bubble completely burst, but I think it’s time to look at stocks again.” Like other investors in the first half of the decade, McMeiken had success investing in real estate. But with sales slowing and home prices flat, there’s a concern that the real estate market is cooling. And with bonds experiencing worrisome trends and increased volatility, and the Dow Jones industrial average topping 11,000 this past week, investors have increasingly focused on stocks. “We’ve already seen individual investors showing some signs of interest in the fourth quarter, and something like Dow 11,000 just increases that interest,” said Jeff Kleintop, chief investment strategist for PNC Financial Services Group in Philadelphia. “This week could be the shot in the arm people need to really get back in again.” last_img

Wedding dress exhibit coming to Womens Museum of California

first_img Ginger Jeffries Posted: May 19, 2018 Wedding dress exhibit coming to Women’s Museum of California Categories: Good Morning San Diego, Local San Diego News FacebookTwitter May 19, 2018 00:00 00:00 spaceplay / pause qunload | stop ffullscreenshift + ←→slower / faster ↑↓volume mmute ←→seek  . seek to previous 12… 6 seek to 10%, 20% … 60% XColor SettingsAaAaAaAaTextBackgroundOpacity SettingsTextOpaqueSemi-TransparentBackgroundSemi-TransparentOpaqueTransparentFont SettingsSize||TypeSerif MonospaceSerifSans Serif MonospaceSans SerifCasualCursiveSmallCapsResetSave SettingsGinger Jeffries sat down in studio with Diane Peabody Straw from Women’s Museum of California. They discussed the museum’s upcoming exhibit, The Big White Dress Exhibit, which features wedding gowns from different time periods and their history. Ginger Jeffries, last_img read more

CM announces expert committee to resolve tea industry issues

first_imgDarjeeling: Chief Minister Mamata Banerjee on Thursday announced the formation of an expert committee to look into different issues and problems pertaining to the tea industry. The committee will be handing over its recommendations and a report within three months. She also stated that the Land department will be soon preparing a law for distributing land rights to tea garden workers.The Chief Minister, while on a tour of North Bengal districts, held a meeting with different operating tea unions of the gardens at Uttar Kanya, the mini secretariat in the Jalpaiguri district on Thursday. Also Read – Speeding Jaguar crashes into Merc, 2 B’deshi bystanders killedLater, addressing a Press conference, she stated: “There are problems ailing the tea industry but we will have to find a permanent solution to the problems. We have constituted an expert committee with the Chief Secretary at the helm. The committee will submit a report within three months. The Land Reforms department will formulate a law for distributing pattas (land right documents) to tea garden workers.”She stated that there is exploitation in the tea gardens. “Some gardens declare lockouts as per their convenience. We will cancel lease of such tea gardens and will initiate criminal cases against the management not paying PF and gratuity of the workers,” retorted the Chief Minister. Also Read – Naihati: 10 councillors return to TMC from BJPReacting to an ongoing agitation by the Joint Forum of Tea, a conglomeration of 26 tea unions demanding minimum wages for tea workers, Banerjee stated: “They only know how to call bandhs. Our government has been sincerely working for the workers. We have spent more than Rs 1,000 crore for the tea workers since 2011.”Adding to this, Malay Ghatak, minister in charge of the Labour department, stated: “During the Left Front regime, daily wages were hiked by Rs 1 and Rs 2. We incremented daily wages by Rs 37.50. At present, the daily wage cash component is Rs 159.” The Chief Minister stated that the government is negotiating with the management for a minimum daily wage of Rs 176. Another round of talks of the minimum wage committee will be held on Friday at Uttar Kanya to decide on the minimum wage issue, stated the Chief Minister.There are 2,72,000 workers in the tea gardens of West Bengal and another 8 lakh non-workers who live in the tea gardens.”We are extending different social security programmes in the tea gardens. For the nonworkers we have decided to impart skill development training. Tea tourism will be promoted as an alternative” said the Chief Minister.She added that relief is being provided to the workers in closed tea gardens, including free electricity and free drinking water, along with 35 kg of rice at Rs 2 per kg.last_img read more