RSS Facebook Twitter LinkedIn

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.

Click to see the full profile

Share |

News Analysis for the Investor on March 19, 2012

Apple may pay first ever-dividend and other top news stories of the day.

| BY Catherine McBreen

Apple to Determine How to Spend Its Cash Today

Apple has scheduled a conference call at 9 a.m. EST today to discuss what will be done with its excessive cash, according to Reuters.  Apple currently holds more than $98 billion in cash.  It is anticipated that it may pay dividends for the first time since 1995.  Apple shares were over $600 last week and closed Friday at $585.  Apple shares are held in many mutual funds, therefore its decision to pay dividends may help many investors today.

World Stocks Mixed due to Greece, Once Again

World stocks are mixed on Monday, according to the Associated Press, due primarily to skepticism over Greece's ability to repay its debts.  This is despite  recurring  positive news about the U.S. economy.  Additionally, falling home prices in China are causing unrest with investors, despite the fact that the lower home values fit the Chinese government's strategic plan.  The Dow closed down 20 points on Friday, finishing at 13,232.

Fannie Mae to Bulk Sale Inventories of Foreclosed Properties

Institutional and other large investors are anxiously awaiting the bulk sale of properties by Fannie Mae, according to the Wall Street Journal.  To date, most foreclosed properties have been sold on a one-to-one basis.  But larger investors believe that these foreclosed properties can often be rented, sometimes to the person already living in the property, and return 6 percent to 8 percent annually, higher than most investments.  Fannie Mae will bulk sale approximately 2 percent of the 120,000 properties it held at year end to gain an understanding of how efficiently the process might work.  Barclays has estimated that 800,000 properties last year moved from foreclosure into rental properties via the private market. 

UPS to Expand in Europe

UPS announced it will buy Netherlands TNT to expand its operations in Europe.  The deal, according to the Associated Press will cost $6.77 billion. UPS estimates that the combined corporation will have more than $60 billion in combined sales this year.

Treasury to Announce Earnings on Bail-out Bonds

The Treasury will announce on Monday that it made about $25 billion on behalf of taxpayers through some of the bonds it purchased during the bail outs, according to the Wall Street Journal. During the period of late 2008 through December of 2009, the Treasury purchased multiple bonds, guaranteed by Fannie Mae, to shore up the industry.  The Treasury is no longer buying bonds and is beginning to see some of the pay outs of the bonds purchased during that time.

American Women Can't Afford Basics

According to USA Today, a WSL/Strategic Retail report indicates that three key groups of Americans today feel they cannot afford the basics.  These groups include women, those 18-34, and households with income of $100,000 to $150,000.  Seventy-five percent of women believe they must get the lowest prices on anything they buy.  These strategies will steer the course of retail  for many years as it will make it harder for retailers to sell non-discounted items.

Annuity Case Strikes Fear with Insurance Agents 

An insurance agent in California is set to spend 90 days in jail for selling an "indexed annuity" to an 83 year old woman, according to the Wall Street Journal.  An indexed annuity is a product in which the interest rate paid is linked to the success of the stock and bond markets.  According to Limra, $32.3 billion of indexed annuities were sold in 2011. In the case at hand, the 83 year old woman was said to not have had the mental capacity to understand what she purchased and the agent was blamed for being motivated by the 12 percent commission. This case will cause insurers to carefully assess how they sell products to older prospects.

Starbucks to Open New Chain of Juice Stores 

Starbucks is set to open a new chain of health and wellness stores this week called Evolution Fresh. The first store will be in Bellevue, Washington, according to USA Today. The chain will focus on fresh customized juices, along with salads, smoothies and other health foods. Starbucks believes the world of health and wellness is the future and is a $50 billion industry. The chain will be closely watched as the future of Starbucks, despite the fact that there will be no co-branding among the chains.

About the Author

Catherine McBreen

Catherine S. McBreen is President of Millionaire Corner.  McBreen plans and develops content for Millionaire Corner.  Catherine balances editorial content to meet the informational needs of both new and seasoned investors.  She designs special monthly surveys on topical issues affecting the economic environment.

McBreen has a B.S. in speech communications from Northwestern University and a J.D. from DePail University College of Law.  She is a member of the American Bar Association, the Illinois Bar Association, and the Chicago Bar Association.

Well-known for her expertise in the affluent and retirement arenas, McBreen is a frequent speaker at industry conferences.  She has been quoted widely by the financial media, including The Financial Times, The Wall Street Journal, Research, Private Asset Management, On Wall Street, Reuters, Bloomberg News, The Dow Jones Newswires and Worth.  Cathy has appeared as a guest on CNBC Closing Bell, First Business Morning News, Neal Cavuto at Fox Business News, ABC and CBS radio.

McBreen is co-author with Spectrem President George H. Walper, Jr. of the book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008)

Catherine is the mother of four and is involved in many school and community events.