Thoughtsworththinking.net

Moody’s Reviews U.S. Sovereign Credit Rating for Potential Downgrade

Today, Moody’s Investors Services (MCO) placed the U.S. Government’s bond rating on review for a possible downgrade, substantially increasing the possibility that one of the major credit rating agencies would downgrade the United States’ credit outlook or credit rating, as I warned here on Thoughtsworththinking.net in December 2010.  Neither action has occurred yet, so an…

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GM: The Long-Term Investment Case

Early hopes of quick returns from General Motors’ (GM) November IPO have been dashed, other than for those who already sold at the right time. The post-bankruptcy shares debuted in November at $33, peaked at $39.48 on January 6, and are at $31.58 as of the July 8 closing. So are the shares, with an…

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Disgusted by the Partisan Wrangling over the Debt Limit? Arnold Schwarzenegger has an Answer

As Congress and the Obama administration continue their excruciating negotiations for an agreement to raise the federal government’s debt limit, marching closer to the prospect of default if the ceiling is not raised by August 2,[i] it’s natural to ask whether partisan wrangling makes our government just too slow to make key decisions that need…

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3 Developments That Can Unleash Cisco’s Value

For investors looking for a blue chip name to profit from global growth of information technology, it’s hard not to look at Cisco (CSCO). The San Jose company provides the “guts” of information technology infrastructure – enterprise networks, network routers and switches, and other IT products and services. Cisco’s closest competitor for its core data…

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Why It’s Good to Hold Gold in 2011

With gold in the mid-$1300s ($1356.70 as of February 11 close), still within sight of its historic nominal high of $1421 on November 9, 2010[i], people who have accumulated gold and gold-related assets are asking if it’s time to sell. While it’s never wrong to manage risk by trimming assets when prices appreciate, I believe that…

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Why Apple Stock Still Makes Me Nervous

In June 2010, with the shares at $260.83, I argued that that Apple (AAPL) was a risky stock for long-term investors. It was one of the most popular stories on Seeking Alpha that day, with a wave of vitriolic comments – one commenter simply called me a loser for not owning Apple stock. A few brave…

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