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Why Baby Boomers Are Bummed Out
Tweet Share on Facebook December 29, 2010 Comment (140)The economy's finally bouncing back, and many Americans are starting to feel a bit more optimistic. But the nation's biggest population group remains in a recessionary funk.
The first of the baby boomers—the post-war Americans born between 1946 and 1965—start to hit retirement age in 2011. And they're not coasting gracefully into the golden years. The entire nation, of course, lost its spunk during the recession that lasted from 2007 to 2009. But the once-upbeat baby boomers seem to be taking the longest to shake off the blues. According to surveys by the Pew Research Center, 80 percent of boomers say they're dissatisfied with the way things are going in the country, a higher proportion than any other age group, younger or older. Part of that may be natural, since people in their 50s tend to deal with the highest amounts of stress and show the lowest satisfaction levels. But the boomer bummer may also reflect the changing fortunes of America itself, and widespread unease about the nation's future.
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The Best-Performing Stocks of 2010
Tweet Share on Facebook December 28, 2010 Comment (3)At least one thing went right in 2010—the stock market soared.
Despite the never-ending housing bust, sky-high unemployment, and an ongoing debt crisis in Europe, the S&P 500 index rose by about 13 percent in 2010, and that came after a 23 percent gain in 2009. Deep cost-cutting and a modest recovery in sales led to record profits at big firms, and some even started to hire again.
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Video: The Corporate Casualties of 2010
Tweet Share on Facebook December 24, 2010 CommentI appeared recently on Fox Business with Tracy Byrnes to discuss the companies that cratered in 2010. Here's the clip:
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The Worst-Performing Stocks of 2010
Tweet Share on Facebook December 22, 2010 CommentIt's been a banner year for stocks, with the S&P 500 index up a healthy 13 percent or so in 2010. Stocks recently hit a two-year high, putting them back near the levels of August 2008, right before the financial panic caused a nauseating plunge in the value of stock portfolios. Some analysts think the bull market will keep rolling right through 2011.
[See the companies that cratered in 2010.]
But like the overall economic recovery, the stock-market rally is an invitation-only party, and dozens of public companies continue to suffer the ravages of the recession that lasted from 2007 to 2009 and left 15 million Americans out of work. Analysis by Capital IQ, a division of Standard & Poor's, shows that about 200 public U.S. companies with a market value above $1 billion endured falling stock prices in 2010, many of them double-digit declines. The weakest performers provide a glimpse into the most troubled parts of the economy, where many firms are still grappling with the aftermath of the recession and wrenching long-term changes. Here are the 10 worst stock performers* of 2010:
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Who Will Prosper in 2011
Tweet Share on Facebook December 21, 2010 Comment (53)The worry lines are finally starting to fade.
After 18 months of a stutter-step recovery, the economy seems to be gathering steam. Most companies that survived the recession are lean and profitable, and there's a good chance they'll begin hiring again in 2011. Consumers who have jobs feel better about their prospects, which means they'll be more comfortable spending money. The latest stimulus and tax-cut plan out of Washington is surprisingly meaty, with the impact likely to be felt in many American households. "Despite threats, 2011 is shaping up to be a better year for the U.S. economy," writes economist Mark Zandi of Moody's Analytics, who predicts healthy growth in 2011 of nearly 4 percent. "After three years of recession and weak recovery, the change will feel significant."
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Who Will Struggle in 2011
Tweet Share on Facebook December 21, 2010 Comment (22)For many Americans, the recession is finally over.
Economic growth in 2011 is likely to exceed 3 percent, and perhaps even hit 4 percent. That would be the best performance in more than a decade. Workers who held onto their jobs during the Great Recession can finally exhale, with growing confidence that their job security is improving. Companies are grudgingly starting to hire back a few of the unemployed. And the latest stimulus and tax-cut plan out of Washington will put cash into practically every taxpayer's pocket, just to make sure the economy keeps marching forward.
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What the Chevy Volt Will (and Won't) Do For GM
Tweet Share on Facebook December 17, 2010 Comment (7)Four years after a fanciful "concept car" revealed General Motors's plans for an electric-powered, plug-in vehicle, the Chevrolet Volt is finally arriving in showrooms. The next challenge will be spotting one on the road.
[See 15 cars fueling Detroit's revival.]
The Volt is one of the most hyped cars in history, and given GM's marketing muscle, that's an achievement in itself. The automotive press is buying it, so far. Motor Trend named the Volt its 2011 Car of the Year, saying that it's a "game-changer" and "an investment in the long-term future of automaking in America." Green Car Journal dubbed the Volt Green Car of the Year, thanks to fuel efficiency that's the equivalent of 60 miles per gallon. That eclipses every major production car except the new Nissan Leaf, an all-electric hatchback that gets the equivalent of 93 mpg. No doubt the gee-whiz Volt will rake in a few more awards over coming months.
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20 Companies That Cratered in 2010
Tweet Share on Facebook December 16, 2010 CommentCall it the year of the stealth bankruptcy.
After two years of colossal corporate meltdowns—the liquidations of Lehman Brothers and Circuit City, the General Motors and Chrysler bankruptcies, the near failures of AIG and Citigroup—2010 seemed like a year of convalescence. The default rate on corporate debt, according to Moody's, plummeted from the peak levels of 2009 and headed back toward pre-recession levels. The biggest bankruptcy of the year was a company most Americans have never heard of—bond insurer Ambac—and investors saw it coming so far in advance that the markets barely reacted. And overall corporate profits reached stratospheric levels, signaling boom times for companies that endured the Great Recession and lived to tell the tale.
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Why a Double-Dip Recession Hasn't Happened
Tweet Share on Facebook December 15, 2010 Comment (15)Step back to last summer for a moment. Home sales had plunged—again—after a big federal subsidy for buyers expired. Stocks were in a swoon, as investors worried that Europe's debt crisis would contaminate the world's financial system. Growth was slowing as stimulus spending from 2009 hit its peak and began to wind down. Ruinous deflation seemed possible, prompting comparisons to Japan's "lost decade." And for all the jawboning in Washington, nothing much was happening to jolt the economy.
[See 20 industries where jobs are coming back.]
No wonder a double-dip seemed plausible, with some forecasters giving 50-50 odds, or more, to the likelihood of a second recession. But those concerns have slowly faded, with economists now increasingly convinced that the recovery, however weak, is here to stay. Here's why the outlook has brightened.
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How Rising Mortgage Rates Could Boost Home Sales
Tweet Share on Facebook December 13, 2010 Comment (3)If you're in the market for a home, you're probably feeling pretty calm: Prices are falling, interest rates are low, and there are few other buyers to compete with. You can probably just hang out for awhile and wait for prices to fall some more.
[See 20 industries where jobs are coming back.]
But how long will the buyer's market last? Conventional wisdom holds that prices will fall another 5 to 10 percent, most likely bottoming out sometime in 2011. As the housing market stabilizes, sales will slowly pick up, while the huge backlog of foreclosed and bank-owned homes gets worked off. In healthier markets—like many in the Midwest, where there was never much of a bubble to start with—the housing market might even start to feel normal again in 2011 or 2012.
