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Show " Sunday, August 24, 2008 D A : I HERALD LY r The Weekly Guide to Managing Your Money C7 .. t 2008 Dow Janie & Company, Inc. All Right Reserved. WSMmSunday' Dont Toss CFL Bulbs U)ok Homeward might not feel very right now, but for stock investors, there may he no place like home. - After years in which stock markets around the globe out-- ; paced those in the US, the tide has turned. Amid continuing turmoil, US. stocks are proving much more buoyant than markets abroad and investment pros think' its only the beginning., While die US. economy still faces significant headwinds and bulls, are a rare breed, many believe that the market will, continue tp It stock-mark- : . ' After years of trailing overseas shares, U.5. stocks are suddenly strutting , their stuff. Wall Street pros expect the home market to continue to v J . outperform Aslaand Europe. tkms in Europe are probably overly optimistic given the developing economic woes. That would mean that docks there are more expensive than they seemi on the surface. .. Its hard to know how much faith to put .in.the !E: part of lhe:PE ratio, he: says. - .! : Meanwhile, US. investors no longer have the wind at their, back that they had for years from a failing US. dollar. When the dollar declines-ivalue it increase the returns ' on investments earned in other currencies, In addition, its provided a significant lift for eartiings of rompanies with a big overseas client base by making .it possi-bl- e to sell goods and se.rvkes at ' et , fare better than other devel- ' oped economies to Europe or manager BlackRock, in London.' Thedifference is that the im- - pected resilience. U$.GDP,ro$e . Asia. ' ' Now, "there are good' argu-pact of these problems is only.. 1.9tothe$ecohd quarter as ; ' mentis - , to be invested in the U.&!, just now being felt abroad and Strength in exports was coupled cheaper prices than ,noh-U." v Reallocation Beginning but for Europe and the. rest of ' the US. may. be closer to an witiia boost tp consumer spend-- : based competitors. For the first time in almost the developed world the ehal- - eventual recovery! tagfrom the federal govern. a decade were reallocating ';; lenges are. only just now comment fiscal stimulus program!:. Stronger Dollar Global Contraction ' . ; and But from home dollar to the has .roost lately away moving too, Europe ing eamirigs, Corporate ' Recent news shows the ex- - have held up.better in tire US.: been strengthening and some .For individual investors, this into U.S. stocks, says Benjamin " Face, chief investment officer : ; doesnt mean abandoning hold- - ;! tent to wiiichthe worlds major than many had feared. ! believe, that its multiyear downeconomies are taking divergent at Deutsche Bank Private ings outside of the US., biit intrend is essentially over, V .; Excluding theearnings from Wealth Management The dollar has gained 76 stead taking a close look at how paths. Gross domestic product big banks and brokerage firms much of a portfolio is allocated since hitting its low against tire The Dow Jones Industrial Avin the 15 European nations that V that have taken multibillibn-dol-use the eutoasa currency. fell'. lar losses on. bad mortgage! euro bn My 15 and, Is up 13 erage fell 0.3 for the, week, elsewhere around the globe. NasEven with thisyear down-- . 02 in the second quarter, the r loans and 'investment, compaand the technology-heav- y from a low reached fn ' !; .! ' nies in the Standard ftfoor daq Composite Index was down ;. draft, the Dow Jones Wilshire v equivalent of a 08 annual decline and the. first drop since Global index excluding the US. 5Q0 stock-inde.posted a re- ;! :r. "If tire rally were to go signifSo far this year, the Dow. is " is up an average 13 over the ; the early 1990s.. ; spectable 8.5 gain; in operat-in- g icantly further, some of Ure mia--: down 12 while, the Dow Jones past five years, compared with In Japan,' the economy con-- . earnings during the second tive (corporate earnings! mo-- : Wilshire Global' Index, exdud- -' a4.5average annual gain-- in tractedat an annual rate of : quarter, according to Morgan : ' mcnfum helping the US. may .'start to. go away, says Kevin ing the US, is down 21.' tire Dow industrials. If portfolio ! 2.4 in the second quarter, the Stanley! Emerging-market- s .stocks, too, weightings outside the U.S, ; .largest decline in seven years, ' ;. Gardiner, global head of equity ' Some Bargains , have taken abeating. The MSCI have drifted up thanks to those' ; f.- Economies outside the U.S. strategy for HSBC Bahk in Lon- ' : for non-Udon. Emerging : Markets index is gains, it could be a good time to also are taking a hit from the ; One positive down 23 this year. V '; reaUocate. V ' V- .inflation spike driven by rising stocks is that thanks to. this ' were not However, there; This marks a significant, oil and olher commodity prices. years selloff; key valuation mea-- . yet, lie says. The dollars value U.S. nis Spread J ;.. Central hanks in Europe .and; ' sures suggest they may be at-- , "against other currencies is still change in die global investing : elsewhere around the world are tractive. The priceearnirtgs ra- '. making a positive contribution declines the. ', landscape."'big. Driving For years, one of the easi- : abroad are many of the same : faising interest rates tore-spons- e tio on tire widely watched MSCI' to earnings." ;: ! ' est nils you could, make was to factors that fust sent U.S. stock to tire inflation, threat, ; EAFE index was 1L8 at tire .end . ' The US. is probably tire be short of US. stocks and .own prices tumbling late last, year, ; which will result in still slower ofjutydown from 15J3a year place to.be for global stock in- economic growth. ' ; morel of thie rest of the world" chiefly a collapsing vestors, adds Mn Gardiner.. ago , In the US., .however, 'the ; But BlackRocks MnKrish-na- n market and its impact on con-- ' ', says Sunil Krishnan, financial has shown unex sumers and corporate earnings markets. economist at money saysthe earnings expecta-- . Emaihfonim.sunday03(3vvsj.com. . . ' 1 , ." If efficient compact fluorescent lightbulbs (CFLs), remember' not to trash them when they bum Out, Instead, recycle. , Each CFL contains about milligrams (abotit the size of the. top on a TIP OF : . pen) THE WEEK of merely, a ' neurotoxin that poses health and environmental concerns. A; While no mercury is rer , (eased when bulbs.are intact,.-,-mercurcan leak out of incinerated or broken bulbs, contaminating water spurces,air and soiL Jn some states, such as Maine, and California,- - putting . . . . y ' . . ' . . ' ,4 : ; . : . : mid-Maic- h, . 15.. x .. , . . : , . . . . . : ; . S. . ' V . . '' . . real-esta- te , ; . INVESTORS CALENDAR THIS WEEK rl to Know . BAP TO WORSE: Storks of troubled mortgage giants Fannie Mae and Freddie Mac continued, , to collapse last week, both dipping beiowtheJSirark! about to start, freshman year in youre likely ; fretting over the homework load and how to avoid embarrassing yourself in front ; of your classmates!. ; ; Meanwhile, your par- eqts fears as you take, this '. major step toward, adult hood are running as rain-- ; If ! - youre founder of a family-wealtconsulting firm in Jackson-- . ... ville, Fla. Some universities : advise freshmen to delay-' employment, so check with ,, your. adviser first.:. h . ! TUL WED. ! .. Group . . . . " - - - Lehman opment Bank considers a bid for struggling bank Lehman Brothers Holdings. ' Bid: Korea Devel- - : i to purchase US. Coal miner; PBS Coals for $L3 billion in order to vertically integrate its US: steelmaking operat- ' ' ions.'-' . . .' ; : . . . with their categories," says Susan Bruno, a personal financial specialist In Roway-- ton! 'Conn. Your budget may change, once youre on canipus. .so rerise-.aneeded. .Send a weekly email, update, to your parents itll help you .track spending. i IBe Talk with your par-- , ents about whois'paying for what, and how. When David . THE HALL STREET JOURNAL WtPrrmdent, Ihrfner Bwa'iurttri 212) . . . , Kam Daawln, Vt Elihr Kaiv.IXiiiiiiliiyjv4H . . , - wixom r; email: Ai 43011 jooro GjutitutHuixjiArae 200 Lihcrty St rret VwYoHuVY; 10281 All Of THIS i; .VI Dinrinr Tklemkaf.M6(H)I Sain (212)507-573- 3 SlnTn-Torod- Mark . Mark.Tti(iini StemA.Twiky ; " Director Crook, Editor Sorni 52l)-k- mximiU3maim RnrrtlVi am Bh-ns- , NJ. 0SST2 . a SraiAL Aaisal Scum mptmi Otfti, Call: Fi . KVtSt5 BXT10U IS AYA&ASLE OW OUR FREI WSJxontSunday WEB STt : . . tion with your student; Dont worry about looking 4 LearnIts from mistakes. . bad. She knows already youre not perfect ; : . a budget 2 Create Come up with categories, estimating a monthly spending amount for each. Note to parents: Help you kids with this, but dont be judgmentaL "It really help-- . fill for them .to come, up , liabili-- ! .v . . possible to Jiye without That said, if you decide credit eaitis are a good idea-- tor emergencies or to create a credit history then start slowly. Craig Watts, spokes-- . man for Fair Isaac Cotp., creator of the F1C0 credit . score, says his three teenagers started with gas cards (the type that work only for gas). "They had to pay those bills. That teaches kids in a ' hurry, he says. Or, become an authorized user on a par-- ; ent account, with an agreed-upo.; maximum limit. (Note that the latest HCO model gives fewer , "good credit points to piggyback users, Mr.- Watts ' says.) Or, get your own card ensure limit low a with to , you dont overspend. Pay your full balance monthly. Work part time. It nice if the job is somehow related to your career geejs, bu ever, if it isn't, wdik fiiiyVay. ll gi.ej them a liUle slructure it teaches them some responsi- -' bility and gives them some 6f . imag--. parents.' whether you can borrow $4,000 to fund a new Roth IRA. Then pay them back over time, says Linda Lubitz, a financial planner in Miami. Note that you can put more than1 your taxable compensation into a Roth, up to $4,000 a " year. . . . hasstudents 9 StartIf youa Roth. work, ask your n .; inevitable: You wiU trip up with your .fi- nances just arte your those errors may cost you money. Dont beat yourself up. Figure out where you went 'vrong asd iov: on. Credit- - errd lefe fees me a conuiiou taobitni. Gerad Somau, ascaiioi at Loyola University, Chicago, solved it by setting up auto its He ine their, friends going to Lake Tahoe for a weekend; I get 250 kids to stand up and say out loud, Im sorry that sounds lovely but I just can't afford it. .. . . - . . ... Muk. Ripr Editor. . Dintior, 7V Jrjunial Bepuri Sptciai PfqjKtt (212) at the turer. da hang Of balancing a check-- , book. Once a week, before your daily visit to Facebook, their semester of study : visit your accounts online. Check to ensure that transabroad, many college students have no idea. actions' are yours sad to can , say, but identity theft hap. Not knowing details lead to unrealistic expecta-- .. pens, and young adults tions. Parents, if youre friends often do the steal-- . struggling with your own fi- Jfag. nances, discuss your situa-- .. Lin.Roulitroiii David huLlrligdaqoKUM Miikhipe. fls e Create a checking and sav-- ! ings account even if, the balances are low to get the - credit cards. Many people . .. 859-12- ' University of California at Berkeley asks students who is paying, for instance,' for . SUES. LimraKC Rout, Senior Anil D. Bell sonal-financ- . from his otfi up accounts. 3. SetAnd' pay attention Robinson, who teaches a per--- .Air Force, unless the Pentagon, agrees to give it a total of six months to submit a new bid. .' . There will be times when friends head out for a nice dinner, say when, you ' will want something you can-- : not afford. Practice resisting the urge to spend anyway; says Mr. Robinson, Jhe UnK of California lec. versity with plastic. 5 Practice realize that first . . Steel Deal: Russian steel-- . maker OAO Severstal agreed matic payments bank account. s specific. er e . . e? assets and 8 Just say na of undergraduates had. credit-car- d debt in ex-- . cess . of$3,000, according to '. a study rdf students credit histories in 2004 by loan ' provider Nellie '.Mde. Thats a chunk of money to owe on an ary and worse if you're paying off student loans, too. ' Tb start your adult: life on the best financial footing possible, consider these 10 rules while youre iii school . personal-financ- ties." ! entry-level.sa- l; " - class, then take ah accounting class. Mr. Soman says doing sotaught meabout one-four- th . Buy Bade State regulators Cash Hunt: Battered mbit-- . reached settlement agree- gage lender Freddie Mac in an ments with Merrill Lynch, effort to raise &5 billion of ; .Goldman Sachs rind Deutsche Bank' to buy. back $14.5 bilcapital talks to investors , about the possilnlity of buying lion in auction-rat- e securities, new common or preferred shares. Web TVS Intel Is joining Yahoo in a partnership to help Treasury Market: Investors companies deliver. Web con-- . tent alongside TV programlooking for safer bets may turn to the Treasury two-an- d ming five-yenote auction Wednesday and Thursday.. Fly Bye-ByBoeing said it is inclined to bail out of its effort to win a $40 billion LAST WEEK contract with the JJ.S. - If your school offer' a fnt tii--1 But nowthat the ition: bill is paid, the one thing likely' neither you nor your parents is focusing on is money, You should. Here's. one reason why; Almost THU.;FR, Soune WSJ ... ' ! .will allow!.'. MON. fmsmHkona podcast listen atHSUanlMadU 7 Educate yourself!doesnt pant as their imagination .' weekday Tbur Money Matter?, i . . .'regulaily&ititifcto i . " . . . WalStreet Journal Sunday writers ' says Gary Buffone, money; : : handling experience . . 7 Search PnrvideR A mobile-searcpartnership agreement between Verizon Communica- tions and Google could come ! as early as this week. . By AndreaCoombes IN THE MARKET, i" tr Housing Measure: New and existing home sales- - and house-pric- e indexes are put this week and could provide signs, of whether home prices are slowing their descent.. GETTING GOING jllegaL Instead, bring your spent, unbrokenCFUtomosit Home Depot and Drea retail stores to be recycled for free, even thoseyou didnt buy from. .. them. Ace Hardware, also collects CFLs at'scfect locations. Ybur states household hazardous. wartecottection pnram" also may recycle liglitbulbs, For locations, visit tire Envi--' rpninental Protection. AgencyS lightbulb recycling site at epa. govbulbrecycling. The. service . U usually free, though some . . may dimge a small fee. You also, can mail them back but it isnt cheap tight-- . ing company Osram Sylyania sells prepaid,, prelabcled recy-- .. ding kits fhat hold up to 12 small (or 6 to B medium) CFLs for $15! . Consumers can give tlie ' package tip any letter carrier or US. Postal Service facility delivery, .. By Sk&y Banjo. j r in the trash is CFLs .. - . . ; . ; . : . . . . youve made the switch incandescent light . to tire more energy 1 . fl Learn how tQis cook. 1U one of Eating out the fastest ways to bleed money, so learn to cook. Mr. dad taught him Soman over the phone how to bar-- : beque food Ever since then 111 buy food early in the week, he says. Ill do one of steak and chicken and itll last me ?bout a week. big BBQ Andrea Coombes is a writer and editor at MarketWateh. Email: forum.sunday03(3wsj.com |
