Following a three-day Presidents Day holiday weekend, bullish momentum reemerged on Wall Street on Tuesday as continued reports of corporate deal-making bolstered investor confidence. To start off the week, shares of OfficeMax (OMX) and OfficeDepot (ODP) rallied after news that the two companies are reportedly in advanced talks to merge in a stock-for-stock deal hit the Street. The M&A euphoria quickly faded, however, after the minutes from the most recent FOMC meeting were released [see Visual History Of The S&P 500].
The Fed announced that it will continue purchasing $85 billion a month of mortgage-backed and Treasury securities, as they feel the larger economic landscape still possesses several red flags. Elsewhere on the economic front, the German ZEW survey’s economic expectations index for February came in better than expected, while new residential construction slipped more than expected in January. However, the number of new building permits rose to the highest level since June of 2008 [see 3 Economic Charts Bears Love To Ignore].
Below we outline seven insightful articles circulating around the financial space this week:
- It’s the End of an Era in Investing at MoneyShow.com
As the financial landscape continues to evolve, Howard Gold points out an intriguing trend he is seeing among investors thus far in 2013. In his article, he describes how the stock cherry-picking strategy may be a dying breed, as investors are instead turning to target funds, index funds and increasingly popular ETFs.
- Reader Asks Me to Prove “Inflation Benefits the Wealthy” (At the Expense of Everyone Else) at Mish’s Global Economic Trend Analysis
Inflation is perhaps one of the most debated topics in the investment world, as issues concerning the quantification and ramifications of an increase in the level of prices has seemingly become a cyclical argument. Mike Shedlock, however, attempts to prove to one of his readers that inflation does in fact benefit the top echelon of society at the expense of everyone else.
- Avoiding Mistakes in Hedge Funds: Lessons Learned From Blowups & Frauds at Market Folly
As everyone can attest to, investing can sometimes be a crapshoot–one day you’re up and the next you’re seeing red. This article by Market Folly outlines several simple yet crucial warning signs investors should heed when it comes to hedge fund investing.
- Connecting The Dots at Market Anthropology
In his recurring “Connecting The Dots” article, Erik Swarts gives investors a quick, yet thorough market snapshot, covering everything from precious metals and currencies to equity markets.
- Positioning Your Firm for the “Equity Bull Market” in Wealth Management at CFA Institute
As financial advisors, the question of whether your wealth management firm operates as a business or practice is perhaps not a common one. In this article, Lauren Foster interviews Brian Lauzon, CFA, of AdvsiorAssist to discuss the business and operation practices of wealth management firms.
- The (Really) High Price Of Active Management at The Capital Spectator
Though it is common knowledge that indexing and exchange-traded funds are less expensive than active management, it may be surprising to realize just how much higher investment management fees really are. In this article, James Picerno sheds light on how many investors are paying higher fees for little in return.
- A Closer Look: Market Style at Alhambra Investment Partners
While major U.S. equity indexes may be hitting levels not seen in over five years, Joe Calhoun warns that there is a lot more to the story of equities thus far in 2013. In his article, Calhoun takes a closer look at the various style segments of the S&P 500, comparing trends and performances.
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Disclosure: No positions at time of writing.