Tag Archives: multinationals

Safety With Johnson and Johnson

Companies, Investments, ,

With all the talk of placing investments in currency instead of company stocks there is one thought that most investors are not thinking about right now.  There is panic and so investors are trying to find the safe haven where they can leave their money.  Currencies like the Franc and Australian Dollar might be good in the short term, but these countries don’t want a lopsided exchange, so expect an intervention soon to close the difference.  If that happens those investments will be lost.

So Where to Invest?

One must think calmly and invest long term.  Multinationals seem to be a good long term bet.  Have they gone down? Yes, but that is to be expected since almost everything is going down in the short term.  When the dust settles these stocks will be stable and perhaps safer over 3-6 month range.

Take a loom at Johnson & Johnson stock over the last 6 months:

johnson and johnson stocks

Over the last 6 months there have been ups and downs but moreover they have been safe and up. These types of companies won’t make an investor rich over night, but are the kind of stock that remains more or less stable in the storm the finance world now finds itself in.

International Banks To Cut 100,000 Jobs Very Rapidly

Economy, Investments, ,

The largest international banks will be firing employees at the quickest rate since 2008. The cuts are due to the weak U.S. economy, government demands that companies hold more cash reserves, and company reorganizations to increase income.

The 50 biggest banks have been planning since January to reduce 60,000 through July which would equal 100,000 jobs by year end. HSBC alone plans to drop 30,000 jobs. In addition Bank of America Corp and Credit Suisse Group AG plan for combined layoffs of another 30,000.

International bank regulators are attempting to strengthen the solvency of the banks by demanding that the banks hold larger cash reserves. In addition, U.S. banks have been working against low loan growth and low interest rates which will limit their earnings. Many banks are also trying to withdraw investments from countries that are financially depressed and reinvest in faster growing countries such as India, Brazil and China.

Cutting jobs will increase unemployment and government funds needed to support these people. Unemployment is over 9% with another approximate 6% people who have given up looking for jobs and another 3% under-employed. This unemployment is another major drain on the economy indicating another strain that will drag America down over the short to midterm future.