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Thursday, January 08, 2009
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Wednesday, January 07, 2009
Top U.S. lender Bank of America raised $2.83 billion from selling part of its holding in China Construction Bank and Hong Kong's richest tycoon followed by selling a $500 million stake in rival Bank of China.
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Tuesday, January 06, 2009
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Tuesday, January 06, 2009
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Monday, January 05, 2009
INVESTMENT STRATEGIES
- Fund Manager Stays the Course on Merck & Co.
- One Fund Manager Gravitates Toward Raytheon
- Valmont Industries Positioned Well for Long Term
- For Vestas, Winds May Be Blowing the Right Way
- One Fund Manager Says to Call Up AT&T
- Fund Manager Suggests Making Room For Public Storage
- Copano Energy to Double Share Price in 12 Months
- Why One Fund Manager Is Keen on Amgen
- Fundamentals, High Dividends Make AFLAC a Good Bet
- Fund Manager Sees Bright Future for Xcel Energy
FEATURES / RECOMMENDED READING
FOX Translator
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No, it's not a dance craze. Contago is a condition of supply and demand, essentially a fancy word to say that prices for items, typically commodities, are cheaper now than they would be at some point down the line.
Anything that¿s sold in the futures market can be in a case of contango. Futures are exactly that: a contract to buy an item or asset at a price in the future. This is the case with oil, with traders buying and selling contracts to acquire a barrel of oil in months down the line. When a market is in contango, spot prices, or the price of a commodity if you were to buy it right now, are lower than forward prices.
Why is that important? Well, it usually tells you the supply of a given commodity is plentiful (since, according to Economics 101, a large supply usually leads to cheap prices).
Incidentally, if you think contango is a mouthful, its opposite condition is known by the equally tongue-tying term backwardation.
