Finance Blog

• Gasoline hits record $3.10 a gallon - The latest pump price tops the old record of $3.07 set in September 2005 after Hurricane Katrina.  Although gasoline is inelsatic in terms of demand, there comes to a point where profits are crimped, thereby affecting the economy.  People are less likely to spend their disposable income, which could result in a negative cycle.
• Has the stock price of Petro companies been positively affected? Looking at Petro-Canada, nearing a 52-wk High.

• Alcoa makes a hostile $27-b offer for Alcan, Alcan +34.1% to $90.75
• TSX jumps +95.62 to record 13,865.51, Dow +48.35 to 13,312.97

• Google tops list of most valuable brands - Tops Microsoft (No. 3), IBM (9), Apple (16) and Yahoo (42).
• ReportonBusiness.com

• April 12/07 - Uranium: When is Too Much Really Too Much?
• April 12/07 - Pure Metals: Notes from the Calgary Resource Investment Conference
• Dec 11/06 - Uranium Investors Get One More Safety Net for 2007
• April 16/07 - Uranium-Stocks.net - Portfolio
• Feb 11/07 - Uranium to Fuel Chinese Economic Advance
• Feb 20/07 - Top 10 Largest Uranium Miners

I’m going to kickstart this blog again, and try to keep up-to-date with the latest in the biz/finance world.  I’ve moved this blog to finance.dhai.ca, onto its separate site.  First thing I have planned is a model portfolio that I’ll be keeping track of over time.  Stay tuned.

An interesting article I read on MSN Money, talking about the reality of China’s booming economy.

In the second quarter, China’s gross domestic product grew by an extraordinary 11.3%. That’s a significant speed-up from 9.9% growth in 2005, 10.1% growth in 2004 and 10% growth in 2003.

That’s a problem, because an economy can have too much growth. In China, it has led to massive overinvestment in manufacturing assets in sectors already suffering from oversupply. Investment in fixed assets — everything from steel mills to cement plants to oil refineries to highways — grew by 30% in the first half of 2006.

Let’s look at the broad S&P 500 Index over the past 5 years…

Since the 2002 bear market, it’s had a decent run, jumping 26% in 2003, and slowing down to a respectable 2-3% per year after.

A look at the blue chip Dow Jones industrial average…
Similar story, a bit more volatile, but still doing well at 4-5% for the last two years.

Finally, let’s look at the tech-studded NASDAQ composite index.
The most volatile out of the three broad indices, it had an amazing run in 2003, but the last year it’s tanked, has the tech sector run out of steam?

Finally, let’s take a look at the S&P/TSX Energy Trust Index…
That’s right, a 121% gain since start of this index in 2002.

That’s just the energy income trusts, how about the S&P/TSX Capped Energy Index:
Last year’s growth was near 60%! It’s had 20%+ growth every year since 2003. It’s up 250% since it’s 2001 bottom.

Ofcourse, that’s directly correlated to the oil price…
Not to mention Natural Gas prices…

Continuing on S&P TSX Utilities Index contains both Income Funds and various utilities companies

Contrary to the broad market, it seems like utilities have had a pull-back so far this year. It may be a good opportunity to get in on some high-yielding funds for the income/cashflow.

Just a follow-up to my previous post, here’s how REIT’s have faired over the past years