Posts by Nicole Goodkind
- Nicole Goodkind at Yahoo Finance1 hr ago
According to a new study by S.&P. Dow Jones Indicies, only two out of 2,862 mutual funds managed to attain top-quartile performance for the five years between March 2010 and current day. One of those two funds was the family-run Hodges Small Cap Fund based in Dallas, Texas.
Yahoo Finance spoke with Craig Hodges, president and portfolio manager of the small cap fund about his success. “We’re doing something that’s become rare in the last five to six years,” says Hodges. “Which is actively managing portfolios.”
Hodges believes that it’s become easier to pick between companies that will provide great returns and those that won’t, but finds that the markets tends to treat those companies as correlated.
In order to make big returns, Hodges looks for businesses with large barriers to entry. “We look for industries that are getting harder to get into—where there’s been a lot of consolidation, where there’s regulation. Cement companies and steel companies, the airlines which have gone from eight big players down to four, the railroads,” he says.
- Nicole Goodkind at Yahoo Finance2 days ago
Two U.S. appeals courts issued opposing rulings on Obamacare subsidies Tuesday -- one in favor of the White House’s Affordable Care Act and the other against.
Obamacare took a hit early Tuesday afternoon when the U.S. Court of Appeals for the D.C. Circuit ruled that subsidies and tax credits could not be made available for people in states that use the federal marketplace, essentially making the Affordable Care Act unaffordable for over four million Americans. Just hours later, however, the U.S. Court of Appeals for the Fourth Circuit in Richmond, Virginia, ruled that subsidies would be allowed.
“The first thing I would say is, ‘Let’s take a moment to calm down,’” says George Kalogeropoulos, one of three creators of Health Sherpa, a leading Obamacare registration website. “We’ve had dozens of customers calling us panicked and worried that they’ll lose their subsidies. The answer is no, it’s still very early and there are still a lot of open questions about this.”
- Nicole Goodkind at Yahoo Finance3 days ago
Renaissance Technologies, a hedge fund management company with more than $24 billion in assets, has avoided more than $6 billion in U.S. income tax over the past 14 years, according to a Senate committee.
According to the Senate Permanent Subcommittee on Investigations, Renaissance used structured financial products, known as “basket options” from Barclays (BCS) and Deutsche Bank (DB) in order to reclassify rapid trading gains as long-term capital gains, which are taxed at a lower rate.
- Nicole Goodkind at Yahoo Finance11 days ago
Doom-and-gloom investors are hurting their bank accounts says Howard Gold of GoldenEgg Investing. The phrase 'don't bet against the Fed' proves true according to Gold, "why do people cling to their discredited beliefs and act against their own self-interest?" he asks. Though some pundits claim another Great Depression is around the corner and that gold is the commodity to invest in, the stock market is consistently hitting new highs while gold is trading well below its record highs and nowhere near the $5000 an ounce that some have forecasted. Hyperinflation is nowhere to be found, says Gold. Related: Dow 20,000 is pretty likely: WSJ Editor-in-Chief Gerard Baker
- Nicole Goodkind at Yahoo Finance13 days ago
The American Dream has been a focal point and topic of debate since the financial crisis of 2008: Citizens and politicians alike are asking whether it's time to redefine what success looks like in the U.S.
According to Howard Gold, columnist for MarketWatch and founder of GoldenEgg Investing, the white picket fence and security that hard work can bring is still alive, but it will cost you ... a lot. In a USA Today article, Gold calculated that, for a family of four, living out the American Dream costs just over $130,000 a year.
"This isn’t about being rich,” Gold tells Yahoo Finance. "It’s about providing security and a good life for your children and opportunities for your children... this is probably what a good middle class to upper-middle class life in America would cost."
Considering that the average household in the United States makes $51,371 per year, it seems that the dream is unobtainable to most. In fact, according to Gold’s estimates, only one in eight, or about 16 million, American households achieve this standard of living.
- Nicole Goodkind at Yahoo Finance14 days ago
Picture this: you wake up in New York, grab a cup of coffee and a bagel and hop on a plane. By the time you finish breakfast you’re in Beijing.
According to a paper released by British consulting firm Knight Frank, which specializes in trends for “ultra-high net worth individuals,” sub-orbital commuter flights traveling at about 4,000 miles per hour (today's planes go around 500 mph), will be ready for the public by 2020.
The key is getting companies that are already approved for sub-orbital space travel (like Virgin Galactic) to stop planning trips just straight into the thermosphere and back down, and instead to start traveling around the globe.
Virgin Galactic’s founder Richard Branson has already indicated that he’s looking into this. He imagines a “future version of the current spaceship which will make transcontinental travel clean and fast — London to Sydney in a couple of hours.”
The flights are estimated to cost anywhere between $90,000 and $250,000 a pop making them accessible to only the top 0.01%. Call it billionaire-exclusive technology.
- Nicole Goodkind at Yahoo Finance14 days ago
Since the advent of the modern Internet and peer-to-peer networks like Napster, the music industry has struggled to find its footing in the modern world. In 2013, digital track sales fell 5.7% and album sales fell 8.4%, according to Billboard. Total U.S. music industry revenues were $7 billion in 2013, compared to $18.5 billion in 1997 (adjusted for inflation).
This week, it was reported by Bobby Kotick, the chief executive of video game company Activision, that Aerosmith made far more in revenue off of Guitar Hero: Aerosmith than from any of their albums. In an op-ed in The Wall Street Journal Monday popular artist Taylor Swift, who made nearly $40 million in music sales last year, defended the value of the music industry saying that songs that elicit emotion still sell.
She may have a point with streaming services like Spotify that reward how often songs are played, not bought.
- Nicole Goodkind at Yahoo Finance15 days ago
There's no doubt about it: America's infrastructure is crumbling. The United States spends only about 0.5% of its GDP on building and repairing its roads, bridges, airports and railways, yet it's one of the most car-dependent nations in the world.
Bridges have collapsed due to disrepair and many more have been deemed unsafe. The last new airport in the U.S. was completed more than 20 years ago. Current air-traffic control systems are less technologically advanced than most smartphones and that contributes to long delays and several recent near-collisions of airplanes.
According to the 2013 report card for infrastructure, America scores a "D+" and would require more than $3.5 trillion in spending by 2020 to get up to snuff.
But money has run dry. States cut their budgets by 5.7% in 2010 leaving little money to repair old infrastructure and the federal Highway Trust Fund is running out of money. The U.S. Department of Transportation estimates that the trust will run out of money by August 2014.
- Nicole Goodkind at Yahoo Finance16 days ago
The trial to determine the fate of the Los Angeles Clippers began Monday afternoon. Donald Sterling, shunned Clippers owner, is suing his estranged wife, Rochelle Sterling, to determine whether or not she legally removed him from the trust so that former Microsoft CEO Steve Ballmer can buy the team for a record $2 billion.
The NBA banned Sterling, 80, for life earlier this year after being recorded making racist statements to his girlfriend at the time. This May it was allegedly determined by two doctors that Sterling had Alzheimer’s disease allowing his wife to legally take his name off of the trust that owns the Clippers. Sterling claims that his wife tricked him into undergoing brain scans and exams.
“If the judge decides that the diagnosis of Alzheimer’s is thrown out…then you get back into the mix with the NBA,” says Yahoo Finance’s Jeff Macke. “They’ve barred him from life but they haven’t had to do things like go to an owner’s vote to kick him out of the league, to force the sale and let me tell you the NBA owners do not want to make that judgment.”
- Nicole Goodkind at Yahoo Finance18 days ago
Consumers paid the highest 4th of July gas prices in six years this weekend, with most drivers paying 15-20 cents more per gallon than expected, according to AAA. High prices, however, didn’t deter an estimated 41 million Americans from traveling 50 or more miles, an increase of 1.9% over last year. I t appears that prices at the pump won’t be as much of a deterrent to Americans this summer as previously predicted.
Gasoline prices in the U.S. have been rising despite a decline in crude oil prices, which hit a three-week low due to cooling tensions in Iraq and ample supply (according to Bank of America the U.S. has now surpassed both Saudi Arabia and Russia in oil production).
Still, “It takes almost no scare at all to push oil prices up $5 or $10 bucks a barrel,” says Yahoo Finance columnist Rick Newman. “That just tells you that the supply-demand equation is still pretty tight, we just got a little bit of slack in the last few days.”