INVESTMENT ACCOUNTS » Investing Money

Securities regulations have sent subpoenas to hedge funds and other trading firms to probe possible insider trading prior to the U.S. credit rating downgrade last month, according to a new report from The Wall Street Journal. Sources close to the matter told the paper that regulators are demanding more information about specific trades that bet on stock prices tumbling if the U.S. lost its AAA rating.

SEC Demands Information Regarding Stock Market Trades

The federal regulator for mortgage lending giants Freddie Mac and Fannie Mae is planning to sue the nation’s largest banks over mortgage bonds gone wrong. The suit is expected to help the government recoup billions of dollars in losses from the failed investments.

Big Banks Accused of Misleading Investors

Dividend paying stocks have been shown to provide higher investing returns with less risk than do their non-dividend paying counterparts over the long-term. All other things equal, the longer the investment period, the greater the out-performance. Of course, this is dividend paying stocks and non-dividend paying stocks as groups; there will always be exceptions on the individual stock level.

Higher Returns on Dividend Paying Stocks: Show me the Stats!

Like most people, all you probably know about inflation is that it makes things more expensive. However, there are a broad array of inflationary effects that can cause headaches for consumers, investors and businesses alike. Learning the causes of inflation will help you know when inflation might be coming, and knowing the effects will help you prepare for an inflationary period and protect your investments.

Definition of Inflation

Do you want to get a gauge on the state of the U.S. economy?  You can follow Consumer Confidence, Industrial Production or any number of the myriad of statistics if you’d like. However, you could also kiss off the reams of stats and simply follow lipstick sales: When they’re up, the economy is down.  This (contrary) economic indicator has proven to be red-hot.

By Stacey Bumpus

Gold prices have been on quite a roller coaster ride for the past couple of years and that majority of that ride has been uphill. Even recently, prices were breaking new records continuously as the global economy worsened.

As we know, however, all good things must come to an end–and it’s possible that gold’s upswing will drop dramatically at some point. So from an investment standpoint, is it smart to jump on the bandwagon now? Or is it simply too late to buy gold?

A new probability model released by Bank of America Merrill Lynch this week shows the probability of a double-dip recession is above 80 percent. The study shows a number of debt and financial issues in the United States and around the world are having an impact on the economy.

Bank of America Corp, currently the largest bank in the U.S. by assets, announced on Thursday that it would receive a $5 billion investment from Warren Buffett’s Berkshire Hathaway. The investment announcement had an impact on Bank of America’s shares, which had been dropping on concerns that it might need more capital.

Buffett to Buy Preferred Shares

As fears mount that global markets are no longer safe, investors are turning to gold as an investment, which has resulted in its price reaching a new high. As of Friday morning, the price of gold had jumped to as high as $1,881 per ounce, which marks a 7 percent increase this week alone.

Gold Price Increases 25 Percent since July

Ongoing fears that the U.S. economy is in trouble has sparked a second day of stock market drops around the globe. On Friday, world stock markets plummeted and U.S. stocks opened lower as investors brace for a possible U.S. recession and express concern over the health of Europe’s banks.

Stocks Plummet around the World