10/06/2008

What is going on with the markets? What should you do about it?


On September 27th, investors thought the $700 bailout package was on the verge of passing the House. Hank Paulson and George W. Bush pushed that bill as the way to avoid financial calamity -- and "heaven help us" if it failed to pass. Last Monday, the bill was voted down -- and the Dow fell a record 778 points. Last Friday, an $810 billion version of the bill passed -- with added sweeteners.

So, did the clouds in the heavens part to reveal sunshine and rainbows? Not exactly. Since the market closed on the 27th -- the day before the bailout to save the world was expected to pass -- the Dow has lost 1,188 points, wiping out $2 trillion in stock market value. I wonder whether anyone actually believed the government when it said the bailout bill would fix things.

I didn't, because I did not expect the bailout to work. The good news is that with the market regularly tanking so much every day, our leaders are getting ever more desperate to try something that will work. This increases the odds that they will try what I think is a better plan. And if it would kindly supply a $25 billion guarantee to the $1.7 trillion Commercial Paper (CP) market. This would help companies finance payroll and buy inventory. (How hard would that be to do this after the government has already set aside $50 billion to guarantee the $3.4 trillion money market industry?)

Serious Money: Up stocks on bad day -- AAPL, EWBC, IRBT & MET


Investors shuddered in horror as the market was dropping; with the Dow down 800 points in midday trading and finally closing at a better but still dismal 9,955.50, off -369.88 or -3.58%.

So, on this terrible day what if anything made a good showing of itself? Four stocks among the ones that I follow popped up.

Apple Inc (NASDAQ: AAPL) closed at $98.14, up 1.07, or 1.10%. Apple needs no introduction to most readers of BloggingStocks or anyone breathing almost anywhere on the planet. Although the stock appears to be a fallen star for the time being and is down 51% for the year it managed to outshine almost everything else today. Apple has not traded at a P/E below it's projected growth rate in years so the bargain hunters were obviously interested.

East West Bancorp (NASDAQ: EWBC) closed at $15.69, up 0.61, or 4.05%. Some banking stocks are recovering nicely and this small California bank with business in the Asian community here and in China as well seems to be getting out from under the taint of the sector. It is one of the stocks I included in Chasing Value: Financial devastation? Still up but less. If I had to 'bank' on whether this stock is higher or lower in a years time I would say higher.

IRobot Corp (NYSE: IRBT) closed at $13.50 up 0.36 or 2.74%. the maker of small robotic home vacuum cleaners and military reconnaissance vehicles has been hovering between in a tight range for months. On this day when other companies were suffering it managed to eek out a gain.

Metropolitan Life (NYSE: MET) closed at $44.32, up 2.19, or 5.20%. which is nothing short of remarkable today. Now that AIG has tanked, I think it is the largest of the international life insurance companie and is no doubt chasing and getting some of American International Group's (NYSE: AIG) business. AIG was up a penny today too. Investors Seek Safety with MetLife.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. DISCLOSURE: I currently own shares of IRBT.

10/05/2008

When considering the purchase of a memory foam topper, there are many considerations that should factor into your final decision. Such things as price

When considering the purchase of a memory foam topper, there are many considerations that should factor into your final decision. Such things as price, manufacturer, warranty and comfort all play a part. Mattress toppers are an excellent choice if you don't want to pay full price for the more expensive complete memory foam mattress. However, with the topper, you end up retaining much of the comfort of the full mattress and yet save considerable money.

What are some considerations for making your purchase? First and foremost on most consumers minds is price, followed closely by comfort. While we will certainly discuss these aspects of the purchase, ultimately, the most important advice one could be given is to try out any product yourself before purchase. Comfort is defined differently by consumers so it is important that your purchase reflect your personal tastes.

The prices for memory foam toppers range from a low price point of $120.00, to the higher end Tempur-pedic pads that retail for roughly $900.00 each. Of course the comfort and quality of these products differs significantly. One important point to remember is that memory foam thickness will vary and should play a role in your ultimate decision. The cheaper products have a less dense foam that will not last as long as the denser foam products sold by the higher end manufacturers. Most consumers should consider how long this purchase is meant to last, and spend accordingly.

To summarize, the decision to buy a memory foam topper for your bed has many facets leading to the ultimate purchase. Price, comfort, quality, and warranty should all be considered by the individual buyer in making the final purchasing decision.

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