Many investors, especially the bears that have been hiding for much of late 2010 and into 2011 will be smiling at the thoughts of a possible Wikileaks release to add fuel to the fire. Many sources are claiming Bank of America, however the way the economy has been the past few months, anything is possible and many indications are pointing to it being a surprise as any one of the major banks. Of those including the likes of Morgan Stanley, JPMorgan Chase, American International Group, Citigroup, and Goldman Sachs. Perhaps it might be time to purchase some nice $SPY 120 puts while they still have a cheap premium on them, with the option of buying some 3X Financial Bear ETF (NYSE:FAZ) being a valuable one as well.

According to many sources, the data is leak is expected to hit the wires as early as Monday, January, 31st into early-mid February.

WikiLeaks founder Julian Assange says he enjoys making banks squirm thinking they might be the next targets of his website which has published U.S. diplomatic and military secrets.

“I think it’s great. We have all these banks squirming, thinking maybe it’s them,” Assange told the CBS television program “60 Minutes” in an interview.

Bank of America Corp shares fell more than 3 percent on Nov. 30 on investor fears that the largest U.S. bank by assets would be the subject of a document release.

Interviewer Steve Kroft asked Assange whether he had acquired a five-gigabyte hard drive belonging to one of the bank’s executives, as Assange had previously asserted.

Assange had told Forbes magazine that WikiLeaks planned a “megaleak” by releasing tens of thousands of internal documents from a major U.S. bank in early 2011 that he expected would lead to investigations of the bank.

First off, I would like to state that the $600 billion dollar ‘permanent market operations’, or ‘quantitative easing’ bogus shenanigans has not worked in the past, and is not working now. You would think that the leaders of the United States of America would learn from their past, but it seems there is little doubt they are all working for Wall Street and not the governance of people. This point is further, whether ironically or not, enhanced and showcased by Prez Obama’s (whose become nothing more than Paris Hilton) remarks in his latest speech that, “America is back, the stock market is back!”

The GDP estimate for Q4 came in at 3.2 percent — an increase over last quarter’s 2.6 percent but well below the Briefing.com consensus of 3.7 and Briefing.com’s own estimate of 3.8. So this is what the printing of $600 billion dollars gets us nowadays, a measly 0.60% increase on GDP quarter-over-quarter.

Oh, and the juicy goods doesn’t stop there — Jobless Claims ramped up to 454,000 from a forecast of 408,000 and a 403,000 number previously. And get this, the mainstream media blames the “Arctic Weather” and abysmal “weather patterns” for companies inability to hire and retain their workforce, primarily construction companies. Did the government just hire Jerry Seinfeld out of retirement, surely they are not being serious about this.

Folks, I bet none of you know that it took 25 yrs (1954) and two world wars to finally breach the 1929 stock market crash level? Don’t even think 14,198 will break, nevermind be tested, as the casino that is running this ponzi (ala Bernanke, Obama, Geither & co.) or aka, the house, will be the only ones to rake in the gains with your tax dollars.

From the above chart of the S&P 500, make sure you keep an eye on the 20-day Moving Average @ 1281, as this will accelerate the selling, but the real key level is the 50-day moving average, which has not been broken due to the printing of money since this whole charade started in September 2010. This key levels lies at 1247, and I expect it to be strong resistance, as it should be with, and I quote my words as Dr. Evil from Austin Powers…” ONE HUNDRED BILLION DOLLARS!”

So what looks like the juiciest investment for this rapid correction (or crash), seeing as how we’re probably more prone to a crash due to the fact that everyone has ruled it out now — that would be either buying put contracts on all major exchanges, or individual stocks, of the best including banks. Why banks? Because they have the heaviest weigh on the economy and another double dip will surely cause them great harm, unless we will have yet another round of bailouts of which I do not see happening. So buy up your Direxion 3X Bear (NYSE:FAZ) and kick back and relax while it appreciates a cool 50% in the next month or two.

As the Dow is set to close out its ninth straight week of gains — a feat unseen since 1995 — the put-to-call ratio on the CBOE skyrocketed yesterday. ETFs, stocks, index options … you name it, all were up, and there was probably a ton of put buying.

CBOE Put Buying Imbalance Reaches Astronomical Levels

The $CPC, an index that measures the put-to-call ratio on just index options, surged to a high of 3.1 at 2 p.m. EST Thursday — its highest level in over four years. A 3.1 reading means there were 3.1 puts being purchased for every call bought. I bet these same people who had insider knowledge about what the GDP number will be are most likely the same people who, ironically enough, work inside the masterful Fed.

I can already smell those stingy Bank of America and AIG crooks burning on the BBQ as the economy begins to faulter — got to love karma, steal from tax-payers, but it will eventually come back to you big guys!

Disclosure: Long FAZ

The charts and comments are only the author’s view of market activity and aren’t recommendations to buy or sell any security. Market sectors and related stocks are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotations aren’t predictive of any future market action rather they only demonstrate the author’s opinion as to a range of possibilities going forward.

TheMarketFinancial is not paid, compensated or in any way incentivized to report news and developments about publicly traded companies.

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Buy Like Buffett – Make Money Investing The Warren Buffett Way

The easiest way for a beginning investor to get involved in the stock market is by buying a mutual fund. I always like to think of a mutual fund as a collection of stocks. You can own shares in companies like Nike, Costco, McDonald’s without having to buy every stock individually. Mutual funds diversify your risk and are often a cheaper alternative to buying shares of a company.

Best Mutual Funds

There are a small number of high quality funds that will let you start investing for as little as $50. The only catch is that you normally have to sign up for an automatic investment plan in which you agree to invest $50/month until your account reaches a certain balance. If you cancel the plan, nothing happens. You won’t be taken to court or tied up and shot. Your account will remain the same and you can always mail in a deposit if you have the cash.

These $50/a month mutual funds were how I started investing in the stock market back when I was in college. I had $50/month automatically withdrawn from my checking account every month.I put the money in a growth fund with a 4 star rating by Morningstar. Over time my balance grew to a few thousand dollars. This money ended up being quite useful to me as I used it for a deposit on my house.

It may not seem like it but small amounts like $50 a month can really add up over time. Just be sure to pick the right mutual fund and sit back and watch your money appreciate.

If you have no clue of where to start in mutual fund investing, pick up a copy of my best mutual funds ebook.

Buy Like Buffett – Make Money Investing The Warren Buffett Way

The easiest way for a beginning investor to get involved in the stock market is by buying a mutual fund. I always like to think of a mutual fund as a collection of stocks. You can own shares in companies like Nike, Costco, McDonald’s without having to buy every stock individually. Mutual funds diversify your risk and are often a cheaper alternative to buying shares of a company.

Best Mutual Funds

There are a small number of high quality funds that will let you start investing for as little as $50. The only catch is that you normally have to sign up for an automatic investment plan in which you agree to invest $50/month until your account reaches a certain balance. If you cancel the plan, nothing happens. You won’t be taken to court or tied up and shot. Your account will remain the same and you can always mail in a deposit if you have the cash.

These $50/a month mutual funds were how I started investing in the stock market back when I was in college. I had $50/month automatically withdrawn from my checking account every month.I put the money in a growth fund with a 4 star rating by Morningstar. Over time my balance grew to a few thousand dollars. This money ended up being quite useful to me as I used it for a deposit on my house.

It may not seem like it but small amounts like $50 a month can really add up over time. Just be sure to pick the right mutual fund and sit back and watch your money appreciate.

If you have no clue of where to start in mutual fund investing, pick up a copy of my best mutual funds ebook.

Buy Like Buffett – Make Money Investing The Warren Buffett Way

Pros And Cons Of Payday Loans

There are supporters and critics of payday loans , and each has a valid point to make with regard to this “alternative” form of financing. Critics claim that interest rates, when extended over an annualized basis, are too high. Supporters counter that without payday loans, many people would be forced to borrow money from shady characters charging even higher rates of interest.

The fact of the matter is that legislatures and regulators in dozens of U.S. states have affirmed the legitimacy and economic necessity of payday loans. They see it as a real, essential tool for working families and individuals, providing access to credit that they might not get otherwise. The increase in payday loans companies online provide further evidence that consumers need this service and that most can manage the loans responsibly (i.e., if those loans went unpaid those companies would not be in business).

How Payday Loans Work

If you have a paycheck in the near future for $1200, you can borrow $300 or $500 or possibly more (this varies by state) from a payday loans company. You promise to repay the loan when your pay day arrives, or perhaps to amortize the payback over two or more pay periods.

The pitfalls for some borrowers basically fall into three categories:

• Failure to pay back in a short time period – The longer the loan is outstanding, the higher the fees and interest charges. It’s best to always consider this a short-term loan.
• Failure to recognize overspending – If the loan is to cover a one-time emergency expense, it makes sense. But if it is to make up for spending beyond income that happens week after week, month after month, a payday loan only is a way to dig a deeper debt hole.
• Failure to find the best lender – Some payday loans companies offer better terms than others. Some operate offshore and do not adhere to state banking regulations. You would be wise to do an online comparison shop to determine which company and which loan terms work best for you.

Yes, there are risks in payday loans . But a smart borrower will effectively manage those risks and come out ahead.

Photo by: rinkjustice

Buy Like Buffett – Make Money Investing The Warren Buffett Way

How To Make Money And Improve Your Finances

The Financial Blogger gives 6 Buffett Investing Lessons Applied To Business. I love a good Warren Buffet post. His principles are universal and can be applied just about anywhere.

Sweating the Big Stuff on Did Andrew Luck Make A Smart Financial Decision? I am a huge sports fan and Luck staying at Stanford for another year is baffling especially with Harbaugh leaving.

Smart on Money gives you 30 Things That Broke People Say That Keeps Them Broke.

Len Penzo explains How Being Absent Minded Resulted In A $2,750 Windfall. Who knew that Laziness could pay off?

Fabulously Broke presents 1,000 Hours To A Slimmer, More Financially Fit You. I am really into being physically fit so this was right up my alley.

Dividend Monk gives Four Things That He Is Bullish On In 2011.

Barb Friedberg presents MBA Class 2011: Risk vs. Reward.

My Blog Links Around The Blogosphere

The Carnival of Personal Finance presents its New Year’s Resolution Edition.

Money Crush gives you the 88th Edition Of The Carnival Of Money Stories.

Budgeting in the Fun Stuff presents the 1st ever Totally Money Blog Carnival.

Mark Riddix dot com shows you how to Make Money Online By Doing Paid Reviews.

Smart Passive Income talks about Pillar Posts.

Buy Like Buffett – Make Money Investing The Warren Buffett Way

The Ultimate Merger

There have been a number of articles written about how the business community has apparently been afraid to invest over the past few years. Apparently there were fears over taxes rising, healthcare costs, and government regulations that kept a lot of cash on the sideline. So, will companies start deploying their record cash hoards and return to investing in businesses?

The Return Of Business Investing

It may not have been highlighted by many financial networks but the business community has already started investing again. Mergers and acquisitions have returned as companies are starting to consolidate their forces. Just this week, there is talk of a merger between two utility companies. This was not taking place back in the fall of 2008.

IPO’s are seemingly taking place every few weeks and are going off without a hitch. Even social media companies like Facebook appear to be positioning themselves to go public over the next year or so. There was a time that private companies would not even consider going public because access to capital was so tight. Brokerage firms like Merrill Lynch and Goldman Sachs were in need of capital themselves.

Business investing has become popular again. Firms are so flush with cash that they are looking to acquire competitors so that they can increase their market share and position themselves for greater success in the future.

This Sector Is Still Lagging In Business Investment

The one laggard in the business investing industry is private equity firms.  Many P/E firms had astronomical growth rates prior to the 2008 crisis.

This was an industry whose growth was fueled by debt. The term leveraged buyout was solely associated with private equity firms. Now that private equity firms are using less leverage, their growth is much lower than it was during 2007. As a matter of fact, it’s estimated that nearly $72 billion dollars was pulled out of private equity investments.

The CEO’s are still making money and so are the private equity firms but they are being more cautious with their capital.  This isn’t just in the U.S. market. According to Reuters, private equity firms are pulling money out of the continent of Asia at a rapid rate. They are investing less money in Asia than they are pulling out.

This is not necessarily a bad things as many private equity firms were levered up 30 to 1 and were deemed a systemic risk to the economy. They might not generate the ROIC that they used to but they are hopefully making wiser investments.

Do you agree that these trends are good for business investment?

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Buy Like Buffett – Beginners Investing And Beginning Investing At Buy Like Buffett

My Ehow Webinar

Here is a summary of my webinar written from eHow Money.

“Mark shares his story about how he went from a career as a financial consultant to a career as a full-fledged professional personal finance writer. As he takes us through his unlikely journey, he’ll talk about the obstacles he faced (and how he overcame them) and the innovative methods he used to help brand himself in the financial world. His work has appeared in major media publications, including Forbes, San Francisco Chronicle, New York Daily News, Investopedia, and Google Finance.”

This is a useful webinar for anyone that is interested in growing their blog and building a more successful blog.

Here is a link to listen and watch my eHow webinar.

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Buy Like Buffett – Beginners Investing And Beginning Investing At Buy Like Buffett

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I have received a few comments asking about what I believed to be the most important ratios in valuing a stock. So, today I want to take time and look at a few financial terms that are important to know when investing. Over the next few weeks, I will highlight important terms that investors should know about. This will benefit beginning investors and intermediate investors alike.

Beginners Investing

1. P/E Ratio

The P/E ratio is probably the most important metric to use in valuing a stock. P/E stands for price to earnings. This is known as the earnings multiple. It represents how much an investor is willing to pay for a company’s earnings. For example, if a company has a PE of 20, that means that investors are paying $20 for every $1 of earnings.

2. PEG Ratio

Sometimes the P/E ratio isn’t enough when valuing a stock. The P/E ratio is a useful stat but it can be misleading when judging a company with great growth rates. The PEG ratio is a better measurement because it helps you determine just how you are paying for a company’s earnings growth. For example, a company with a P/E ratio of 40 may seem expensive but it isn’t if the company is growing earnings at a 40% clip. That would be right inline with the P/E.

3. P/B Ratio

The price to book value ratio measures a company’s stock price by its book value. An undervalued stock can often be identified by a lower price to book ratio. An overvalued stock can often be found in stocks with a higher price to book ratio.

Buy Like Buffett – Make Money Investing The Warren Buffett Way