Monthly Archives: January 2012

The Greek Debt Crisis and Your Stock Portfolio

It can be easy to develop a sort of tunnel vision, only being concerned with the state of the local or national economy. However, the economy and its subsequent growth or sluggishness, is a global issue. Thus, instability in one country can significantly impact the stock market and financial wellbeing the world over. So whether your focus is buying stock, selling stock or merely researching stock market trends, there is no way to avoid the economic issues throughout the world.

Currently, there is substantial volatility in Greece’s economy, resulting in erratic changes in the stock market, inflation, consumer spending, employment, and basically every other factor that contributes to the overall global economy. Still, there is much perplexity surrounding the debt crisis. Many individuals have no idea exactly how this cataclysm began and how it could have escalated to this point.

A decade ago, Greece had one of the strongest economies in the world. Its purchasing power, tourism, and the stock market were all doing exceptionally well. Unfortunately, its government used these factors to amass a huge deficit. When the global recession began in the latter part of the 2000s, Greece suffered substantially since travel and tourism along with the shipping industry, which constitute much of its commerce, drastically diminished. With less capital at its disposal, the country’s already sizeable debt quickly mount. This escalation peaked in 2010, when an emergency bailout was suggested.

Formally requested by the Greek government April 23, 2010, the initial loan package was $61 billion. Payment of the first installment enabled billions of Greek bonds to be compensated. However, this bailout was not enough to meet all obligations, so another bailout package, of nearly two-and-a-half times the first, was granted to be paid over the course of three years. Consequently, these financial woes resulted in a downgraded credit rating for Greece. Even with the previous bailouts, Greece’s finances are insufficient. Therefore they are currently in talks to secure another eurozone rescue package. However, neither side has reached an agreement as of yet.

Greece has grown accustomed to a certain lifestyle. Its citizens enjoy a lavish lifestyle and do not want their way of life challenged. But the years of buy now and pay later mentality have caught up with them and taxation and budget cuts are virtually unavoidable at this juncture. Still, as with most problems, there are deeper issues responsible for the deterioration of this powerful economy.

In addition to its high standard of living, Greece is also confronted with considerable struggles, which include a horrendous Corruption Perceptions Index, second in the European Union (EU) only to Bulgaria, outrageous unemployment estimated around 18.8 percent in September 2011, tax evasion, ineffective government leadership, and severely depressed rankings in both the Index of Economic Freedom and the Global Competitiveness Index. All of these challenges combined with the current state of the global economy and stock markets, Greece’s economy is buckling under the pressure and threatening to collapse if swift action is not taken.

Still, many individuals do not see the debt crisis in Greece as an immediate threat to themselves or their stocks and other investments. This naive perspective leaves investors vulnerable to significant losses if the stock market continues to be impacted. The strength of the stock market, as a whole, relies heavily on the prospect of profitability. Ergo, when investors feel that they will lose money, they tend to buy less stock and sell more. This knee jerk reaction serves to create panic in the stock market, accordingly sending stocks plummeting. This is bad news for the economy because the stock market is such a primary factor in its recovery. The stock market is a significant gauge of the economic forecast. In a country with rising stocks, economic growth and development are almost certain. However, a country with a less promising stock market will likely see economic slow-downs and possibly face recession.

In the midst of this severe economic decline, investors are understandably apprehensive about their stock portfolios. During the recession, people lost virtually all wealth and assets that had taken years of hard work to secure. Retirement plans, pensions, stocks, bonds; essentially all liquid assets were suddenly worth less. Stocks that were once extremely profitable became worthless. This unfortunate circumstance forced individuals to reassess the way they invested altogether.

While the economy has begun to recover, it will take years for people to regain their original net worth, if they can at all. Now, many individuals are avoiding stock purchases until it is assured that another downturn is not on the horizon. As such, the stock market is a lot like a delicate house of cards at the moment: with the first sign of trouble, it could all come crashing down.

This volatility means that the stock market could be up 250 points on Monday and by the same time on Tuesday, it could have dropped by 400. The Greek debt crisis has only exacerbated the instability of the stock market because economists and investors share the fear that the worst is inevitable. The prospect of Greece defaulting on its obligations impacts other countries and banks in Greece and Europe that hold Greek bonds. This domino effect or contagion would likely spread to other countries with similar financial difficulties, threatening the value of currency and crashing global stock market indices. If Greece is forced to default, it could mean catastrophic scenarios for countless countries’ stock markets.

So if the Greek debt crisis is so dire, why then have stocks recently surged and how long will stocks continue to rise?
The main reason the stock market has seen such positive numbers lately is because the talks over resolving the debt crisis have been extremely promising. Greece and European leaders seem close to a deal that both sides can accept. If a deal is reached, stocks will likely continue in this manner. It’s no secret that investors feel more confident when the economy is stable. Even if things are not completely resolved, some sort of deal is a step in the right direction. And the stock market will reflect this progress.

Stock prices are often contingent on fear. More troubling than actual events that could upset stocks is the uncertainty of what could be. While there is never a guarantee in the stock market, there are factors that can suggest probability of how stocks will behave. Stock brokers and independent investors study market trends and follow current events to predict which stocks to invest in and which ones should be avoided or sold. Speculation is necessary to companies and shareholders.

Still, speculation can be a dangerous factor in the stock market. It can be difficult to determine if information about the stock market and the economy is accurate or if someone is attempting to shift stock prices in a certain way. Many entities can benefit from panic in the stock market. If it seems that a commodity, such as oil, will be in short supply, the demand for said commodity will likely increase and the manufacturer or producer of the item, along with his stock holders, stands to make a substantial profit. Although profiting from consumer fear is unethical, many organizations, when faced with the choice of people or profit, will be more loyal to their bottom line and so consumers must research in order to protect themselves and their finances.

NASDAQ MarketSite Tower And Stock Ticker

The NASDAQ (National Association of Securities Dealers Automated Quotation) stock ticker is located on the corner 43rd and Broadway in New York City. The rounded building is covered by an electronic stock ticker display which provides financial market highlights and various sponsored advertisements.

The official building which features the state-of-the-art full color stock ticker is the MarketSite Tower. The $37 million building spans seven stories. The seven stories are lit by high-resolution LED lights which cover the entire side of the 120 feet high by 90 feet wide building. The lights illuminate a full motion video screen. The screen which displays a continually updated stock ticker is the largest of its kind in the modern world. There is text and images displayed on the video’s screen in addition to the stock ticker. The video capture screen is available in multiple real-time modes with replay, special effects and high definition graphics.

Because of the professional interest of worldwide traders, the history of Wall Street and the New York Stock Exchange is well known. But the historical background of the MarketSite Tower’s stock ticker is not commonly revealed in supporting commercial documentation about the Plaza District. This is due to the fact that the stock ticker is a relatively new phenomenon. The NASDAQ MarketSite Tower was built in 1999 and the stock ticker went live at the beginning of the new millennium in the year 2000.

From its inception the purpose of the stock ticker display was to provide instant market information, viewing of the opening and closing bell, special events, remote ceremonies and relevant advertisements. The stock ticker is the main attraction of the business epicenter located in New York’s historic Times Square. The financial information that is displayed on the stock ticker is a listing of all NASDAQ publicly traded companies.

The exact address of the stock ticker is 4 Times Square. What allows the stock ticker to stand out from other landmarks in Times Square is that its prominent features are an integral part of the revitalized business district. Times Square attracts a large number of unique visitors from around the world, it has been reported that 450 million people view the stock ticker in Times Square annually. Most tourists travel to Times Square specifically to take photographs of the flashing display of stock ticker on the MarketSite Tower.

The stock ticker is at the heart of the Times Square Alliance, which was formed to revitalize and promote Times Square. Thanks to the revitalization efforts Times Square remains the best place to view the stock ticker financial and business information at a glance. However, it isn’t necessary to be in New York to observe the stock ticker. NASDAQ offers interested parties instant access to stock ticker activity via Live Webcam stream.

The NASDAQ Live streaming stock ticker is available on the official MarketSite Tower’s website, the link is: http://www.nasdaq.com/about/marketsitetowervideo.asx.

Advertising and the Stock Ticker

The Times Square business district is considered an integrated advertising market because of worldwide audience attracted to the stock ticker. The stock ticker is considered prime advertising space because it provides an instant advertising venue for all types of businesses.

The consumer media space on the NASDAQ stock ticker is available for purchase from the Times Square Alliance office. For anyone interested in running an advertisement along side the stock ticker electronic display, space is sold in different packages. Information can be found about the stock ticker’s digital screens and billboards billboard advertising on the NASDAQ MarketSite web page.

In 2006, the NASDAQ stock ticker joined a marketing alliance to offer outdoor advertising and event space as a package deal. The combination package was named, Times Square 2 because it features prominent marketing space on both the MarketSite Tower stock ticker and the Reuters Sign at once. The special stock ticker package is called, the “Times Square Squared package.”

The NASDAQ MarketSite stock ticker is a recognized symbol around the world. The accuracy of the stock ticker information is guaranteed as it is an electronic display of the prices and trading volume of all securities traded. The bright lights and the large text of the stock ticker are easily spotted as a backdrop for a large number of morning television shows. However, it should be noted that the stock ticker is more than just a flashy display. It actually provides vital public educational information about stock ticker trading activity as it happens.

Besides being the largest outdoor video media screen in the world, the NASDAQ stock ticker represents advanced technology to the highest degree. The stock ticker received much acclaim at its debut, the supporting technology that powered the stock ticker attracted investors who were interested in a high tech way to receive fast, up-to-date information and news about growing global markets.

The linking of the famed Times Square and a fast growing financial district has led to widespread success for the NASDAQ MarketSite stock ticker. The building and interest in the stock ticker has grown to such a large degree that it is now simply referred to by the iconic label “The Tower.”

In addition to being the backdrop for live television shows and countless films, the NASDAQ stock ticker can also be seen in New York City’s print advertising and news articles. The popularity of the constant flashing display of the stock ticker has lead to several copycat versions in consumer outdoor media platforms. It is now common to see the stock ticker format outside large banks and movie theaters.

But the copycat versions of the NASDAQ stock ticker don’t have the advertising capacity to reach a large based of diverse people that the Tower does. The stock ticker flashes non-stop on the Tower in a space that covers an estimated ¼ acres of real estate.

The importance of the stock ticker‘s revolving video display is that it presents optimal viewing for a worldwide audience. The Tower and stock ticker are solely owned and operated by NASDAQ.

The stock ticker provides valuable market information to investors for free. Investors can watch the large screen display of the stock ticker throughout the trading day. The stock ticker provides worldwide investors with global market information which they can use to track and monitor the up and down movement of all publicly traded securities.

Stock Ticker 7 (Beta 0.2) release

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StocktTicker7 on Windows 7

StockTicker7 on Windows XP

 

Stay on Top of the Market with Stock Ticker

Keeping up with the current market conditions is never a simple task. Investment portfolios are constantly changing and it is easy to miss those opportunities that arise in short term gains. Fortunately, stock ticker is a great way to keep updated with the latest events in the market. Stock ticker is perfect for novice investors who are seeking a method of keeping up with their investment portfolios.

How Stock Ticker Works?Stock ticker is a method of staying updated with investments. The way stock ticker works is by showing the latest market trends in selected stocks. By downloading stock ticker onto a computer, the background will run stock ticker with the items selected. This helps novice investors keep track of their stock portfolio by constantly seeing the changes to the stocks they have in their personal stock account via the stock ticker figures running on the computer.Stock ticker is the perfect method of keeping up with the latest trends in the market, even when it is necessary to focus on other tasks.

Diversifying a Portfolio

Investing is about more than just watching the figures on stock ticker. Buying and selling stocks is only one part of investing in the stock market. Taking time to research the stocks selected to watch on stock ticker and then ensuring the selected stocks are widely diverse is also a key step in making a portfolio as strong as possible.

Diversification is one of the key factors in minimizing the risks associated with stock investment. A diverse portfolio will have stocks from several industries rather than buying within the same industry. By putting numerous industries on stock ticker and watching their current trends before buying, it is possible to determine if the selection is a good add to the portfolio.

The more diverse stock ticker and a stock account becomes, the more it is likely to balance out any sudden drops that occur in one industry. By using stock ticker as part of the research in current trends, it is possible to determine whether to buy those stocks or wait for awhile.

Buying Low and Selling High with a Stock Ticker

Stock ticker is perfect for those who are trying to buy stocks while the price is low and then sell the stocks when they go back up and are high. By watching on stock ticker, it is possible to determine when the market price for any stock is starting to go down. If the stock is a strong company and the drop is not related to problems within the company, the price drops are likely to increase again. This is particularly true of any popular Fortune 500 company or any business that sells popular products.

While watching the drops on stock ticker, it is often possible to notice when the stocks are starting to increase again. Buying when the trend begins to turn and then watching while it increases via stock ticker will result in making the most of those rises and falls.

Novice investors should keep in mind that while stock ticker can help notice trends in the rise and fall of prices, it is only a tool to help. Further research into the company is necessary to ensure the stock is likely to increase again when watching it on stock ticker.

Buying and Holding

Novice investors should understand the concept of buying and holding stocks. Stock ticker is a great way to help keep up with the market while planning a buy and hold strategy. Unlike short term investing, buying and holding is about long term gains while ignoring the short term losses. Stock ticker can help by showing where companies are going up and down. When stock ticker shows that the stocks are going down in price, investors can take the time to find out why the stocks are decreasing. In many cases, stock ticker can give a warning before the stocks selected for buying and holding decrease too far.

In a buy and hold strategy, investors should use caution when selecting the stocks. Stock ticker can help give a warning of potential problems, but the stock market is not always dependent on factors like decreases in cash flow that might result in low quarterly gains. Sometimes, stock ticker will show decreases that have no actual explanation. When stock ticker shows these losses, the stock is likely to increase again later, making it a good strategy to continue holding onto the stocks.

If stock ticker gives a warning of serious problems in the company resulting in losses, it is best to sell that stock before it decreases too far. Stock ticker acts as an initial warning when planning a buy and hold option because it is still vital to remain updated on whether the stocks are making gains or not. Stock ticker shows daily changes, so it is possible to see the drops before it ends up in large losses.

Tracking Funds and Bonds with Stock Ticker

Stock ticker is not only about individuals stocks, it can also help when looking at bonds and funds that are purchased through a brokerage account. Stock ticker keeps track of funds in a similar manner as the stocks: by requiring the symbol and showing the current prices. Stock ticker will still show red for losses and green for increases in price, making it perfect for keeping track of less risky investments as well as the stocks.

Funds of any kind are naturally diversified among a particular industry or type of stock. For example, a fund for the pharmaceutical industry would have a wide range of stocks from the industry that include companies that make medications, health insurance companies and similar stocks of various businesses within the industry. By keeping track of funds on stock ticker, it is possible to determine which are appropriate to add to a personal portfolio and which will not help diversify.

Bonds are not involved in the stock market, but sometimes are still given a symbol to help follow the rises and falls of the bonds. These are very low risk investments and stock ticker can only track those that have a symbol. Many bonds will not have a symbol like the stock market, so they are not always possible to follow on stock ticker. Bonds are best to add to a portfolio if the risk of stock market investing feels uncomfortable.

Stock ticker is a useful tool when buying stocks and mutual funds of any kind. Stock ticker helps keep up with the market and stay updated in what is happening. Downloading stock ticker can help any new investor stay up to date without extra effort. Stock ticker is free to download from stockticker7.com.

StockTicker7 Beta .2 released