Fannie Mae posts stock loss

Fannie Mae FNM  0.79, +0.05, +6.76%) posted a loss for the second quarter of $14.8 billion, or $2.67 a share, compared with a loss of $2.3 billion, or $2.54 a share in the same period last year.

Net revenues were $5.6 billion and fair value gains were $823 million, Fannie Mae said in a regulatory filing.

The mortgage entity said the $12.5 billion increase in net loss in the period was driven by a $13.4 billion increase in credit-related expenses, which “more than offset a $1.7 billion increase in net interest income.”

The results were “adversely affected by the ongoing deterioration in the housing and mortgage markets, the economic recession and rising unemployment,” Fannie Mae said.

Fannie Mae said its request submitted Thursday for an additional $10.7 billion in aid follows a $19 billion infusion from Treasury in June, and a $15.2 billion infusion in March.

BofA CEO Ken Lewis pressured by Fed

Bank of America CEO Ken Lewis heads to Capitol Hill on Thursday, and he’s likely to be grilled by lawmakers about the government’s role in ensuring that the bank complete its controversial merger with Merrill Lynch.

According to emails released Wednesday that pull back the curtain on heated negotiations, Federal Reserve Chairman Ben Bernanke had suggested to another Fed official that “management is gone,” if BofA managers tried to flee the deal and later on needed further government assistance.
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3 Quick Tips for a better portfolio

1. Better mix of investments. Try to raise that bond stake for safety, and boost foreign-equity exposure for growth.

2. Simplify. Reduce holdings to 10 funds and roll over old 401(k)s from prior jobs into a Roth IRA to make portfolio easier to manage.

3. Invest in index funds. Sell actively managed funds in their taxable account, harvest tax losses, and move to low-cost exchange-traded funds.

Basics in investing

There are many misconceptions in investing; whether in stocks or bonds or in building an investment portfolio in general. Carl Richards at Behavior Gap has an interesting article in getrichslowly.org

Continue reading Basics in investing

Stocks to Watch – Lowe’s Cos (LOW)

Lowe’s Cos.’ (LOW) fiscal first-quarter earnings fell 22% amid continued weak demand for big-ticket items.

The world’s second-largest home-improvement retailer after Home Depot Inc. ( HD) nevertheless raised its fiscal-year earnings view but narrowed its outlook for revenue.

Continue reading Stocks to Watch – Lowe’s Cos (LOW)

Succeed in Investing: A short How-To

1. Allocating Assets
If your portfolio is geared toward stocks it is more likely to have a long-term return of investment. It will also mean you’ll have a dynamic flactuation of your assets. Instead consider a short-term high gain investment.
Continue reading Succeed in Investing: A short How-To

Still thinking of investing in oil?

NEW YORK (CNNMoney.com) — Oil ended just shy of $50 a barrel Thursday as investors weighed a glut in supply amid dour sentiment about the economy. Crude oil for June delivery added 77 cents to finish the day at $49.62 a barrel.
Continue reading Still thinking of investing in oil?

Thinking of investing in telecommunications stocks?

Sprint Nextel Corp., Motorola Inc. and Nokia Corp. led telecommunications stocks broadly higher in Wednesday trades as the U.S. market forged ahead.

Stocks got a boost from Intel Corp., the chipmaking giant. The company reported better-than-expected results, though sales still fell sharply from the year-ago quarter and Intel reported a net loss.

In early action, Sprint climbed 3%, while Motorola  and Nokia each gained 4%.

AT&T Inc. and Verizon Communications Inc. also rose about 1% each.

Six Traits to avoid in order to become a better investor

Overcome the Six Obstacles
Knowing how to manage risk is one of the prerequisites of financial literacy. Once you’ve fulfilled all the prerequisites and become fully literate, does financial freedom follow? Not necessarily. Certain personal obstacles can prevent even the most financially literate from developing abundant wealth. Continue reading Six Traits to avoid in order to become a better investor

Wells Fargo Exit Plan

Wells Fargo  repeated its bailout exit strategy on Tuesday, but appeared weak next to competitors that have already repaid taxpayer funds, or are moving forward with more definite plans to do so.

Its position comes at a delicate time, when rumors about the health of financial firms are circulating in the market. Traders have become more aggressive with bearish bets against Wells shares in particular in recent days.

Pressure was building on Wells, due to a report that competitor Bank of America (BAC Quote) is moving forward with plans to pay back bailout funds. Wells CEO John Stumpf told Bloomberg late in the day that the firm would like to pay back $25 billion in funds from the Troubled Asset Relief Program in the near future, but does not plan any capital raises to do so.

“We intend to pay back the government’s investment in Wells Fargo on behalf of U.S. taxpayers in a shareholder-friendly way,” spokeswoman Richele Messick told TheStreet.com in an email message earlier in the day. “We will work closely with our regulators to determine the appropriate time to repay the funds while maintaining strong capital levels.”

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