| Commerce Bank: Progress In The Housing Market
(RTTNews) - New home sales dropped to a 13-year low in February as the carnage in the housing market continues. But the sales pace was not as bad as some had forecasted, insists Commerce Bank economist Joel Naroff. January's sales pace was revised upward and we came in a little higher than where the January number was initially estimated. In addition, there was a weird 40% drop in the Northeast and that does not look like it makes much sense. Indeed, a turnaround in March, which is what happened last year when the February Northeast sales pace also plummeted, could lead to a rise in national sales. Builders are doing everything they can to unload their remaining inventory but they don't seem to be bringing in a lot of new buyers. Nevertheless, the number of new homes on the market continues to fall and that is critical to bringing the conditions back into balance.
Witness: Little profit for steroid maker
A key witness in cyclist Tammy Thomas's doping trial testified Wednesday that an illicit steroid lab in Illinois made little money because the potent performance-enhancers could be bought and taken in such small quantities. "Here's the thing: the stuff was so strong, man," said Kelcey Dalton, who helped market the substances developed and manufactured by Patrick Arnold, her then-boyfriend. Arnold, a chemist, invented some of the steroids at the heart of a drugs and sports scandal in which Thomas is the first person being tried. Dalton, testifying on the third day of Thomas' trial, said Arnold told her that athletes and trainers were reporting in the early 2000s they would use "really minute doses" of the steroids because doing so would minimize side effects, and "because they were so strong." Holding her thumb and forefinger three inches apart to represent a small vial, Dalton said such a container would fetch $10-$20.
Keep your portfolio small and simple / Having more funds may not make it any safer
George is an investor in his 70s from West Palm Beach, Fla., who has been made a bit crazy by the stock market recently. Still, in reading my column last week, which discussed how the market is giving investors a chance to upgrade their portfolios, he wanted to know whether an investor could improve a portfolio simply by adding "more and better funds." "Do I have to sell what I have, or can I just add more to the mix," George wrote in an e-mail. "In this kind of market, I would think more funds give me more protection from the market. ... If that's not right, then what's the correct number of funds for an investor to own?" It's an outstanding question at a time when investors are looking to strike the right balance between safety and aggression, wanting to capture the best returns they can get without taking on too much risk.
Wall Street bonuses likely to shrink, for those with jobs
Unless market conditions rebound soon, "it's going to be an old-fashioned terrible compensation year," said Alan Johnson, whose Johnson Associates advises Wall Street banks on pay and bonuses. Johnson said he expected 2008 bonuses to fall 30 percent from 2007 levels, which were down at most banks from 2006. Annual bonuses track revenue, which is expected to plunge from levels seen in the boom years. And bonuses go to those who have jobs. U.S. brokerage firms have fired more than 30,000 workers in the past year as broken-down markets for buyout financing, mortgages and other debt have generated severe losses and sapped revenue. More job cuts are expected, as the credit storm over Wall Street grows worse, as evidenced by the near-collapse of Bear Stearns last week and troubles at a number of investment funds.
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