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Featured Advisor

Ed Meek
CEO/Investment Advisor

Edge Portfolio Management


State: IL

At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, playing and following basketball, playing golf, and participating as an advisory board member for Breakthrough Urban Ministries.

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News Analysis for May 19, 2011

LinkedIn Debuts Successful IPO

The social networking site LinkedIn had a higher than expected IPO price of $45 per share yesterday, valuing the company at $4.25 billion, according to the Wall Street Journal.  Critics are skeptical because revenues in 2010 were only $15 million.  Supporters argue the company has 3 strong distribution streams:  ads, subscriptions and hiring tools for employers.


Japan falls into Recession


The Associated Press reports that Japan slid into recession in the first quarter with a contraction of 3.7% to its economy, a percentage that was higher than predicted by analysts.  The contraction was due to the effects of the tsunami that devastated the country in March.  Japan, however, believes it will return to a 1% growth rate by December due to growth caused by rebuilding and higher demand for its cars.


New Zealand also has record budget deficit


New Zealand is also reporting a record budget deficit of $16.7 billion as reported by the Associated Press.  New Zealand will return to a $1.3 billion within four years by selling some of its ownership in four energy companies and reducing its 75% ownership in New Zealand Air.  The government will remain the primary shareholder.  New Zealand's economy dipped after a tragic earthquake which cost $15 billion for rebuilding.


Greece will privatize its real estate


Another struggling country, Greece, may come to its own aid and avoid a debt restructuring by proposed plans to privatize $50 billion of real estate by 2015.  It will privatize $12-17 billion of real estate by 2012, as reported by the Wall Street Journal.  The state owns enterprises worth $44 billion, including ports, power plants, transportation, water and gambling enterprises, according to the Organization for Economic Cooperation and Development.  It also owns $200 to $300 billion of real estate.


African Market growing


According to a report issued by McKinsey and Co and discussed by Bloomberg, the GDP of Africa is set to increase to $2.6 trillion by 2020 from $1.6 trillion in 2008.  Consumer spending is projected to rise to $1.8 trillion by 2020.  Challenges in Africa include undeveloped infrastructure for delivery of goods and services.


U.S. investors pouring assets into mutual funds


The Wall Street Journal indicates that a report from the ICI indicates that $3.91 billion went into mutual funds last week, especially bond funds.  Municipal bonds have seen their first week of inflows in 26 weeks as opposed to outflows.


Rising wheat costs will continue to fuel global unrest


The cost of wheat has increased 91% in the past year, increasing fears of ongoing global unrest in the Middle East, where a large percentage of the wheat is imported, reports the Wall Street Journal.  The World Bank indicates that the Arab countries are vulnerable to food shock.  The Egyptian government, for example, spends approximately 7% of its budget on wheat imports, this is comparable to the percentage the U.S. government spends on its wars in Afghanistan and Iraq.


Travelers to U.S. boosting economy


Foreign travelers to the U.S. are benefitting from the deals offered due to the weak U.S. dollar, according to Bloomberg.  This is benefitting U.S. retailers who plan to offer deals to foreign travelers.  Last year international travelers spent $8.9 billion in food, lodging and gifts, up 7% from the prior year, according to the Department of Commerce.  The Mall of America reports that its foreign visitors were up 10% in the past few months and it will be increasing its international marketing.  Visitors generally spend twice the amount of citizens in their quest to find gifts.