Analysis of Investment-Oriented Articles

ôWill Europe æSiftÆ Investors?ö reports on the aftermath of the investor rebellion at German stock-exchange operator Deutsche B÷rse AG, where shareholders had ousted top Deutsche B÷rse executives following hedge fund agitation. Attempting to balance shareholder democracy and the reluctant granting of voting rights, the German government is considering tougher control of hedge funds, possibly converting to granting voting rights on the length of time stock is held to hold short-term investors at bay. This tactic is currently in use in France, where the practice does not appear to be accomplishing its purpose; it tends to favor shareholders favorable toward management rather than those who are long-term holders (Reilly C16).

The issue that the article primarily addresses is that of short-term financial investors who do not invest foreign capital in Germany in a way that actually helps the economy. The hedge fund investors invest for a short term, then withdraw their money; this is speculative investing, and it does not generate growth. The purpose of permitting foreign investments is to use the money over the long term for creating jobs and building companies, but when the money investedùand counted onùsuddenly disappears, the opposite effect occurs. Jobs are lost and companies are weakened. Germany wants to restrict investments to serious investors whose money can be counted on.

ôAhead of the Tapeö provides a forecast of the marke

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he same time that a soft jobs report was issued, and that has precipitated a turning point at which stocks that were previously scornedùdrug producers, persnnal-products colpanies, liquor companies, utilities, and food-makersùare now considered the mainstays of the market. The climate on Wall Street is tense, with investors wondering how the bubble will burst. Some stocks have turned around, but others are still languishing. Investors are waiting to see what the Fed does before betting heavily on cyclical stocks (ôHow Stock Investorsö C1). The bull market has apparently reached its peak, and the economy is slowing down; as a result, investors are becoming more cautious. Investors are regrouping and returning to investments and investment strategies that work better in an ordinary, non-bullish market. Stocks that have been doing well up to now in the bull market are being bypassed for stocks that perform better in a mediocre market, like drug company stocks. Cyclical stocks are too risky in a market in transition, and most investors are avoiding them. ôTen-Year Note Flirts With Fall to 4%ö discusses how the market shift is affecting credit markets. U.S. Treasury notes have been performing amazingly well, but amid last weekÆs
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Some common words found in the essay are:
Reilly C16, Federal Reserve, Noteö C4, Flirts Fall, Deutsche B÷rse, Investorsö C1, Investors Chant, Boise CascadeÆs, Cascadeö C6, Street Journal, wall street, journal 16 2005, wall street journal, street journal 16, journal 16, street journal, 16 2005, boise cascadeÆs, high-yield bond, bond prices, high-yield bonds, ôhow stock, hedge fund, flirts fall 4%ö, note flirts fall,
Approximate Word count = 1268
Approximate Pages = 5 (250 words per page)