Fed's New Round of Easing Could Reignite Markets

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November 1, 2010 SILVER: Hot Money's New Magnet? A New gold-and-silver ETF launch is set to ride the stunning bull market in gold (up 23% year-to-date), silver and palladium (up 42% and 45% respectively). Good deal or bad for you and me? A historic move... or another fad? Jon Markman knows... and tells all... because he tracks the Hot Money and what it's buying... next. To get Markman's daily intelligence click here now. Fed's Next Round of Easing Could Put Bears on the run By Jon D Markman, Contributing Editor, Money Morning The market has been marking time lately as investors await the election results and the much -anticipated Federal Reserve announcement after the Federal Open Market Committee wraps up their meeting on Wednesday. The Fed is expected to provide a peek into its next round of quantitative easing, now considered a fait accompli. The only question seems to be how far the Fed will go to reinvigorate the economy. But unless Republicans fail to capture the House of Representatives on Tuesday, the Fed's next move could provide market bulls with just the ammunition they need to send the bears running for the hills. Read on to find out how far the Fed will go... Why I Buy Every Stock This Analyst Recommends First, every month she puts out her single best pick for today's market. Next, she keeps picking stocks that make money. (She has a 91% win rate, and one of her picks just gave her and her readers an +18.2% gain in just 13 days.) Go here to get her latest pick... Five 'Cash-Cow' Companies to Corral Now [Editor's Note: When financial uncertainty reigns, zeroing in on 'cash-cow' firms – companies with huge amounts of cash on their balance sheets – is a strategy that can reduce your risk and increase the chances you'll see a nice payoff.] By Larry D. Spears, Contributing Writer, Money Morning When it comes to investing, finding a company that has a lot of money in the bank can be, well, money in the bank. The logic is sound: Especially during times of economic uncertainty, companies that have a lot of cash on hand have the flexibility to do all sorts of things - most of them ultimately beneficial to shareholders because they help increase earnings and lead to higher stock prices. For example, cash-rich firms can invest in new plants and equipment, fund research-and-development (R&D) initiatives for new products, or finance acquisitions that will increase market share or expand their geographic reach. So-called "cash-cow" firms can also use their accumulated reserves to pay down or eliminate existing debt, increase annual dividends, buy back stock - or simply hold the money as a cushion against further economic downturns. Excess cash in the vault can transform smaller companies into attractive takeover targets, providing the shareholders of those target companies with quick and sizeable capital gains. Read full story... Money Morning Mailbag We'd like to hear from you! If you have an idea that amplifies something you've read in Money Morning, send it to us here to share: mailbag@moneymappress.com. "ALL BRANCHES... of our government ARE IN BUSINESS with Wall Street..." from Money Morning Reader, T.S. Buy, Sell or Hold: Verizon Communications Inc. (NYSE: VZ) Gives Income Investors a Reason to Get Wired By Jack Barnes, Contributing Writer, Money Morning Yield-seeking investors who need cash to live on are being punished by the U.S. Federal Reserve's loose monetary policy. The concept of a free market - or of a natural, risk-free rate of return - has been obliterated by the central bank, which has driven the benchmark U.S. Treasury yield down to a meager 2.5%. So, where can an investor go to find both yield and real assets? I would suggest looking at components of the Dow Jones Industrial Average. The Dow is full of companies that pay real yields on their common stock. And right now, Verizon Communications Inc. (NYSE: VZ) is the highest-yielding stock in the Dow Jones index. The stock is yielding more than 6% per year. Verizon has a market capitalization of $91 billion and an enterprise value of $144 billion. While the company is fully levered up at the balance sheet, it is generating a staggering $63.5 billion in gross profit. This is one of the largest companies in the world, and should be able to weather the current economic upheaval. Read full story... FORECAST: 200% on mining firm RESULT: 244% Shah Gilani frequently exceeds his own expectations. Like with this mining company. He forecast a 200% jump. But the company hit 244%. Turning $1,000 into $3,500. And right now, 81% of his picks are crushing the market... with plenty of room still to grow. Get details on his newest forecasts here... Vote for Money Morning at.... Facebook Twitter Money Morning Quote of the Day: "By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens." -Economist John Maynard Keynes Top Stories November 1, 2010 CFTC Investigates JPMorgan, HSBC as Firms Sued for Silver Market Manipulation November 1, 2010 Slow GDP Growth Sets Stage for Fed's Next Round of Quantitative Easing October 27, 2010 We Want to Hear From You: What Are the Top Three Issues You Want To See Addressed After Midterm Elections? Investor Reports October 9, 2010 The Dollar's Unavoidable Day of Reckoning is Here... October 2, 2010 Five Ways to Profit as Coffee Prices Soar September 18, 2010 Cashing in on Canada: Four Ways to Profit - Big - From the World's "Safest Economy" September 11, 2010 Three Ways to Brace for a Double-Dip Recession The Publisher's Series Why Gold Beats the Market Manipulators - Free Report Featured Columns from MoneyMorning.com Buy, Sell, or Hold October 10, 2010 Buy, Sell or Hold: Silver Wheaton Corp. (NYSE: SLW) Is Poised to Profit from the White Metal's Rally Hot Stocks September 28, 2010 Hot Stocks: Southwest Airlines Takes Aim at Bigger Rivals With $1.4 Billion Deal for AirTran Jon Markman October 10, 2010 Don't Miss Out on the Global Stock Rally Outlook 2010 July 20, 2010 Money Morning Mid-Year Forecast: Why China's Economy Will Exceed Expectations in the Second Half of 2010 Of Special Note: Keith Fitz-Gerald on: Gold: You may not be making as much as you think... Martin Hutchinson on: Can U.S. bank stocks double again in 2010? Shah Gilani on: How the government is creating a second subprime mortgage bubble

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