Article of the Week from Investing Daily

by Jim Fink, Investing Daily

PEG ratio (n.): A useful investing measure that sounds a lot more complicated than it really is.

Like a lot of investment lingo, PEG ratios can get lost in the alphabet soup, but it’s important to dig in and understand them. They’re a way of evaluating a company’s risk — something you want to understand before you put your own money behind a stock, right? Simply put, PEG ratios put a stock’s attractiveness in perspective by dividing a company’s price-to-earnings ratio (a common valuation measure, and the “PE” in PEG) by its projected future earnings growth rate (the “G”).

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Written by Mark Bern, CPA CFA

In the past two weeks Timour and I have published several articles which have been quite popular. We published two articles onspecialized option strategies.  The first was about using an artificial buy/write position to create exceptional gains in “How to Capture Big Gains On the Next Spike in Oil With Limited Downside Risk.” We also published an article (the second of two parts) which explains how to roll option positions in conjunction with Timour’s other strategy: “Our Long-Term Investing For Increased Yield Strategy, Part 2.”

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Written by John Lounsbury

Treasuries rose to new heights Monday (23 January 2012).  New lows were set or tied for the interest rates at the market close for the 3-year at 0.28%, the 5-year at 0.57%, the 7-year at 0.93%, the 10-year at 1.47% and the 30-year at 2.52.  The 20-year?  That's very close too, within a couple of basis points of tying its all-time low rate.  Just three weeks ago (7 July 2012) I discussed the liklihood that Treasuries would continue to be good portfolio holdings.  When I was writing that article the 10-year had just been trading with a yield of 1.67%.  If it continued with a similar move in the coming weeks the yield would fall to the 1.25% - 1.30% range.

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by Jeff Miller

After the volatility of last week's "three-ring circus," I expect a quieter trading week.  Based upon evidence from somewhat weaker economic reports and lower corporate revenues, the key question is:  How big is the economic slowdown?

It has taken only a slowing in the rate of growth -- not a decline -- to convince many that a new recession is upon us.  This is a key question, and we'll have more evidence this week.

I'll offer my own expectations in the conclusion, but first let us do our regular review of last week's news.

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Money Morning Article of the Week

by Peter Krauth, Global Resources Specialist, Money Morning

Something's afoot in the world of high stakes finance.

The Basel Committee for Bank Supervision (BCBS) is about to decide something crucial to bankers, sovereign nations, and gold investors alike.

As part of the Bank of International Settlements (BIS), the BCBS is reviewing the upcoming new Basel III rules. That may sound arcane to you but I promise it's not.

Though rarely discussed in the mainstream press, the all-important Bank of International Settlements is essentially a global central bank to the world's central banks.

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