Weekend Linkage - July 6, 2008
So how was your July 4th holiday weekend?
I took a rare 3-day break from this blog as well as all those emails since last Friday to relax a little bit. Over the long weekend, we had some family members and friends come for a visit and we watched some fireworks, did some BBQ, and visited some museums together. There were a lot of fun, though at the end of the holiday, we are pretty tired instead of refreshed. Tomorrow, we have to go back to work again 
and the next holiday is two months away :((
Here are some end-of-the-holiday readings from The Money Writers and beyond:
Will The Government Raid Roth IRAs? @ Brip Blap
Lose Weight While Spending Less on Food and Exercise @ The Digerati Life
Mid-Year Financial Checkup - Review Your Goals and Progress @ Generation X Finance
What Example are You Setting with Baby’s First Bunny Bank? @ Lazy Man and Money
Risk Management via Insurance - Disability Insurance @ Million Dollar Journey
Gas Credit Cards - Pay at the Pump and Save Money? @ Money Smart Life
7 Ways to Payoff Credit Card Debt @ My Dollar Plan
How To Fix A Mistake On Your Credit Report. @ My Two Dollars
Cheap is Not Necessarily Frugal @ Five Cent Nickel
Best Locations To Find Free Wireless Internet Access (WiFi Hotspots) @ Money Blue Book
Related Posts
- Weekend Linkage - September 1, 2008
- Weekend Linkage - February 10, 2008
- Weekend Linkage - January 20, 2007
- Weekend Linkage - August 10, 2008
- Weekend Linkage - July 23, 2008
Dow and S&P in Bear Market?
Yesterday, we saw the Dow made a 276-point turnaround to close the trading session with a gain of 38 points. What fueled the rally was the surprising June sales number from GM. And the turnaround actually made people speculate that the second half of 2008 may give investors a better time than the first half did.
Then today, the stock market followed its old pattern, down another 166 points. This time, GM also played a role: despite the stronger than expected June sale, a Merrill Lynch analyst suggested that GM could face bankruptcy (Bloomberg.com). That sent GM shares to the lowest level since 1954!
Since reaching the highest close of 14,164 on October 7, 2007, the Dow has lost 2,949 points. That’s good enough for a 20.8% decline in 10 months, meaning that the index is officially entering the bear market. According to the generally accepted definition,
a downturn of 15-20% or more in multiple indexes (Dow or S&P 500) is considered an entry into a bear market.
The S&P index is slightly better, losing 300 points, or 19.2%. Not exactly there yet, but very close.
So, do you expect this bear market to last long? This is a tough market that even good news is likely to fall on deaf ears. Tomorrow’s monthly job report isn’t expected to be good and that could push the market even lower
Related Posts
- Oil Down, Stocks Up, Two in a Row
- Reader Question: What to Do if a Bear Market is Coming?
- Around the PF Blogosphere: March 20, 2008
- Millionaire Index?
- Analyst Recommendations More Reliable Now?
Chinese ADRs Monthly Update - June 2008
Comparing to what happened to Chinese stocks listed on U. S. stock exchanges, the drop in major U. S. equity indexes is minor, though the Dow Jones Industrial Average did lose more than 10% in just one month (10.19%). During the same time period, the NASDAQ dropped 9.12% and the S&P declined 8.57% as jitters in the financial sector continued and there was no sign that the housing market has bottomed. In fact, the loss in June was the severest monthly loss since the Great Depression.
However, if you are investing heavily in Chinese ADRs (like me), then I am sure you feel even more depressed when looking at your stocks’ performances last month. Of the 82 Chinese ADRs I track regularly, only 6 of them ended the month in the positive territory. All other 76 stocks dropped, and they dropped like a rock: 30 stocks lost more than 20% and 10 more than 30% The worst performer of the month is Tongjitang Chinese Medicine (TCM), losing more than half of its value, followed by Spreadtrum Communications (SPRD) 46.91% and China Southern Airlines (ZNH) 38.31%. The biggest gainer is China Medical Tech (CMED), rising 25.29% in one month. For the month, the Shanghai Composite Index (^SSEC) fell 22.75% and the Hong Kong’s Hang Seng Index (^HSI) lost 9.9%.
| Name | Symbol | 06/30/08 Price | June return (%) | YTD return (%) |
| 3SBio | SSRX | 9.06 | -16.27% | -39.11% |
| 51Job | JOBS | 18.32 | -6.86% | 1.66% |
| Acorn international | ATV | 6.97 | -12.11% | -25.29% |
| Actions Semiconductor | ACTS | 3.45 | 0.58% | -15.44% |
| Agria | GRO | 4.28 | -11.20% | -54.13% |
| AirMedia Group | AMCN | 14.44 | -17.58% | -35.48% |
| Aluminum Corp of China | ACH | 28.54 | -34.77% | -43.64% |
| APT Satellite | ATS | 1.3601 | -12.25% | -36.74% |
| ATA* | ATAI | 13.01 | -13.84% | 36.95% |
| Baidu.com | BIDU | 312.96 | -9.30% | -19.71% |
| China Architectural Engineering | CAEI | 9.77 | 10.77% | 12.95% |
| China Digital TV | STV | 13.91 | -23.66% | -48.44% |
| China Eastern Airlines | CEA | 31.34 | -29.87% | -67.91% |
| China Finance Online | JRJC | 15.27 | -37.85% | -30.59% |
| China Grentech | GRRF | 4.56 | -8.80% | -48.42% |
| China Life Insurance | LFC | 52.18 | -13.54% | -31.79% |
| China Medical Tech | CMED | 49.4 | 25.29% | 11.29% |
| China Mobile | CHL | 66.95 | -9.27% | -22.93% |
| China Nepstar | NPD | 8.66 | -24.96% | -50.74% |
| China Petro & Chemical | SNP | 92.89 | -7.91% | -37.32% |
| China Southern Airlines | ZNH | 19.79 | -38.31% | -69.76% |
| China Sunergy | CSUN | 8.27 | -29.44% | -49.94% |
| China Techfaith | CNTF | 4.22 | -11.16% | -27.24% |
| China Telecom | CHA | 54.39 | -23.57% | -30.33% |
| China Netcom | CN | 54.59 | -20.31% | -8.10% |
| China Unicom | CHU | 18.52 | -18.74% | -17.32% |
| ChinaEdu | CEDU | 4.75 | -13.79% | -44.12% |
| City Telecom (HK) | CTEL | 4.53 | -5.62% | -19.82% |
| CNinsure | CISG | 14.61 | -6.55% | -8.63% |
| CNOOC | CEO | 173.54 | -2.12% | 3.65% |
| Ctrip.com | CTRP | 45.78 | -21.58% | -20.34% |
| E-House | EJ | 11.36 | -24.27% | -52.33% |
| eLong | LONG | 7.1 | -12.24% | -14.25% |
| Focus Media | FMCN | 27.72 | -31.20% | -51.21% |
| Fuqi International | FUQI | 8.76 | -22.34% | 5.54% |
| Giant Interactive | GA | 12.12 | -17.49% | -6.63% |
| Global Sources | GSOL | 15.18 | 0.53% | -46.27% |
| Guangshen Railway | GSH | 22.41 | -11.49% | -37.12% |
| Gushan Environmental Energy | GU | 11.62 | -16.28% | 24.28% |
| Home Inns & Hotel | HMIN | 19.01 | -22.63% | -46.63% |
| Huaneng Power | HNP | 27.65 | -18.05% | -33.05% |
| Hurray! | HRAY | 3.16 | 6.40% | -20.60% |
| Hutchison Telecomm | HTX | 21.24 | -2.66% | -6.23% |
| JA Solar | JASO | 16.85 | -20.78% | -27.59% |
| Kongzhong | KONG | 3.73 | -18.02% | -38.75% |
| Las Vegas Sands | LVS | 47.44 | -31.68% | -53.96% |
| LDK Solar | LDK | 37.88 | -17.74% | -19.42% |
| Linktone | LTON | 1.84 | -13.21% | -40.45% |
| Longtop Financial Tech. | LFT | 16.56 | -14.24% | -30.07% |
| Melco PBL Entertainment | MPEL | 9.32 | -21.61% | -19.38% |
| Mindray Medical | MR | 37.32 | -10.93% | -13.15% |
| Netease.com | NTES | 21.79 | -4.22% | 14.93% |
| New Oriental Education | EDU | 58.42 | -11.15% | -27.51% |
| Ninetowns inter | NINE | 2.05 | -21.15% | -35.74% |
| Noah Education* | NED | 5.4 | -24.79% | -33.00% |
| O2Micro International | OIIM | 6.65 | -25.78% | -42.37% |
| Perfect World | PWRD | 24.99 | -7.34% | -10.37% |
| PetroChina | PTR | 128.86 | -9.60% | -26.56% |
| QiaoXing Mobile Comm. | QXM | 4.93 | -20.36% | -41.66% |
| Renesola* | SOL | 17.3 | -31.02% | 33.08% |
| Semiconductor Manufacturing | SMI | 2.91 | -12.87% | -43.93% |
| Shanda Interactive | SNDA | 27.15 | -16.38% | -18.42% |
| Simcere Pharmaceutical | SCR | 12.6 | -18.23% | -9.03% |
| Sina | SINA | 42.55 | -20.12% | -3.95% |
| Sinopec | SHI | 34.09 | -16.28% | -44.17% |
| Sohu.com | SOHU | 70.44 | -19.52% | 29.20% |
| Solarfun Power | SOLF | 17.5 | -23.25% | -46.40% |
| Spreadtrum Communications | SPRD | 4.99 | -46.91% | -59.30% |
| Suntech Power | STP | 37.46 | -11.94% | -54.49% |
| The9 | NCTY | 22.58 | -12.78% | 5.37% |
| Tongjitang Chinese Medicine | TCM | 4.17 | -53.41% | -57.66% |
| Trina Solar | TSL | 30.64 | -31.82% | -43.05% |
| UTstarcom | UTSI | 5.47 | 13.96% | 99.64% |
| VanceInfo Technologies | VIT | 15.87 | -15.94% | 76.33% |
| Vimicro International | VIMC | 2.84 | -11.53% | -24.47% |
| VisionChina Media | VISN | 15.87 | -15.94% | 86.71% |
| WSP Holdings | WH | 7.03 | -16.01% | -22.75% |
| Wuxi Pharmatech | WX | 20.3 | -0.73% | -30.57% |
| XinHua Finance Media | XFML | 2.34 | -20.95% | -61.00% |
| Xinyuan Real Estate | XIN | 6.07 | -31.41% | -57.34% |
| Yazhou Coal Mining | YZC | 93.01 | -14.83% | -4.17% |
| Yingli Green Energy | YGE | 15.92 | -22.64% | -58.82% |
*2008 IPO
Two widely held EFTs that mainly invest in China also took a big hit last month. iShares FTSE/Xinhua China 25 Index (FXI) ended the month with a 14.47% decline and PowerShares Gloden Dragon Halter USX China (PGJ) suffered a deeper loss of 17.8%.
Related Posts
- The Dog of the Chinese ADRs (1) — GSOL
- January 2008 Score Card — Part I: Net Worth
- Chinese ADRs Monthly Update - July 2008
- Chinese ADRs Monthly Update - February
- Did You Make Money from Falling Chinese Stocks?
E*Trade Complete Savings Account now 3.30% APY
For the second time in less than two months, E*Trade Financial decided to make its Complete Savings Account competitive by increasing its interest rate from 3.15% APY to 3.30% APY, starting July 2, 2008. It made a similar rate adjustment in early May.
Though the news in encouraging (increasing rates), the rate is still not as good as the rates from banks I am currently using, such as Capital One and FNBO Direct. Therefore, I don’t think I will make any change on the way I am using those banks now. For better bank deals, check out my interest rates table.
Related Posts
- E*Trade Raise Rates on Complete Savings Account: Interest Rates Bottomed?
- $25 Bounus When Opening an E-Trade Complete Savings Account
- E*Trade Complete Savings Account Offers $25 Signup Bonus
- WaMu Online Savings Account Now 3.75% APY
- ING Orange Savings Account $25 Bonus
June 2008 Score Card — Part I: Net Worth
U. S. stock market fell hard in June 2008, so did our paper wealth (because most of our assets are stocks with only value on paper). When the Dow closed the month at two-year low, there isn’t really anything good to expect and that’s exactly what happened to our net worth.
After two consecutive monthly gains in April and May, our net worth last month returned to the “usual” theme of this year: down along with the stock market. On June 30th, we lost $37,125.69 in the past 30 days from our investments. That’s a 6.13% drop from previous month and more than half we gained in the past two months. At the end of June, our net worth is at $568,395.28.
Here’s a quick look at each element in our net worth:
- Credit card balance(-): The total balance on our credit cards was $862.70 (4.72%) less than that of last month at $17,429.29. Every day expenses was almost identical to the previous month, though gas price has gone up quite a lot recently. Right now, we have to spend more than $110 on gas every week
- Cash(+): This is the only positive part in our net worth calculation. At the end of June, we have $64,440.04 in our savings accounts totaled, up $3,554.82 (5.84%) from a month ago. In the past, when stocks dropped big ones like we saw last month, I usually took the opportunity to buy a little bit more. Not this time, though I maintain our regular monthly mutual fund purchases. I just didn’t get any extra. Seriously, it’s not fun to watch my newly purchased shares worth less and less every day, though I know that some time down the road what I bought today could bring me more. Now, I feel a little more comfortable with our money in the banks than in the markets.
- Taxable accounts(-): We lost big in our investment accounts in June. At $258,725.06, we are $26,075.38 (9.16%) less now than a month ago. I am not going to get into details of what contributed to the big loss as I usually did because, basically, everywhere I look, I see red :((
- Retirement accounts(-): Though we didn’t have any individual stock in our retirement accounts, the performance last month was pretty bad too in our retirement accounts such as 401(k)s and IRAs. At the end of the month, we had $231,945.98 in all retirement accounts. That’s $15,162.66 (6.14%) less than what we had at the end of May.
- 529 plans(-): Even our daughters’ 529 plans could stay positive, despite the new $600 monthly contribution. In June, the total market value of 529 accounts declined $524.51 (3.38%) to $15,012.15. And those new money only contributed to the loss because the money was invested at the beginning of the month.
- Bonds(+): Our investments in I-bonds increased by $100 (0.73%) to $13,414.08.
Though our net worth has gained two months in a row, we are still slightly below where we were when 2008 began. YTD, our net worth dropped $39,727.07 (6.53%).
Now I can only hope we will have a better second half, given how bed the first six months have been to investors.
Related Posts
- July 2007 Score Card — Part II: Expenses
- July 2008 Score Card — Part I: Net Worth
- May 2008 Score Card — Part I: Net Worth
- March 2008 Score Card — Part I: Net Worth
- April 2008 Score Card — Part I: Net Worth
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