In Play

On the Wires

Pump, pump the jam, keep it pumpin’

“John C. Bogle counted himself among the 1 percent of wealthiest Americans a couple decades ago. You might not guess that today, when you hear the 82-year-old founder of mutual fund company Vanguard rail against economic inequality.

He can sound almost like an Occupy Wall Street protester: “Our markets have gone crazy, and there is 200 times as much speculation as there is investing,” he says.

It has been 15 years since the low-cost investing pioneer stepped down as CEO of Vanguard. It was Bogle who launched the first index mutual fund in 1976. Vanguard Group has since grown into the largest fund company, managing nearly $1.7 trillion in U.S. fund assets.

Bogle remains wealthy, but his income is a fraction of what he earned when he ran Vanguard. He’s paid a modest retainer to run Vanguard’s Bogle Financial Markets Research Center, a think tank in Valley Forge, Pa.

He resists a label that applies to most people his age: “I’m so far from retired, it’s almost an embarrassment. I’m here in the office every day.” He’s also writing his 10th book, “The Clash of Cultures: Investment vs. Speculation.” And he continues to deliver speeches.

Bogle says he’s paying close attention to tax policies he considers unfair, including one that’s favorable to the fund industry and investors with taxable accounts. The top rate for dividends and long-term capital gains is historically low at 15 percent, as a result of the extension of Bush era tax cuts that Congress and President Barack Obama agreed to a year ago. In contrast, top earners pay 35 percent on regular income. He doesn’t like that disparity.

Here are excerpts from a recent interview with Bogle:  “

The index has reached new lows lately. Is this a contrarian indicator ?

With all the turmoil in the markets many are asking why even have a portfolio; but you must make money with your money and the market is the biggest opportunity going.

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“Billionaire investor Wilbur Ross Jr. tells Newsmax that the U.S. government “seems to hate” big banks and is imposing new regulations placing them at a competitive disadvantage.

And while Ross doesn’t see the European debt crisis leading to disaster, he says several EU nations have “dysfunctional” economies that must be reformed to deal with the crisis.

In a wide-ranging exclusive interview with Newsmax.TV, Ross, the chairman and CEO of WL Ross & Co., also said:

• Gridlock will keep its hold on Washington if the Obama administration remains determined to engage in “class warfare.”

• Inflation will pose a long-term problem if the federal government continues to debase the currency with deficit spending.

• A new recession is unlikely.

• S&P’s downgrading of the United States’ credit rating is “silly.”

Story continues below in video.

NFLX?

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Gapping up 

MU +1.6%, WCAA +29.7%, TIBX +4%, NG +2.0%, BCS +1.6%, MS +1.4%, TOT +1.8%,SAP +2.3%, BP +2%, INFY +1.8%,

RIO +1.3, BAC +1%, GOL +2.6% MT +2.1%, YHOO +1.1% , RIO +1.6%, AA +1%, CLWR +3.4%, JNPR +2.8%,

Gapping down

VVUS -9.6%, BBBY -3.0%, NOK -1.0%,

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In Play

On the Wires

Oracle missed earnings Tuesday night. First time in 9 years. some are asking if this spells further downside for tech cap ex.

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Who would not want their company to be a blue chip ?

will the economy prevail or will negative forecast call the shots ?

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Do some homework on position…

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Gapping up

DFG +61.2%, RIMM +11.8%, FSII +10%, LYG +6.9%, PNSN +6.7%, ING +3.2%, NOK +2.5%, VMI +2.5%,  FIO +0.6%,

HBC +2.3%, BCS +2.2%, GEDU +1.9%, FSII +10%, SUBK +9.2%, CTAS +6.1%, KBH +5.7%, NKE +3.1%, VMI +2.5%,

IRE +2.8%, RBS +2%, GNW +2%, BCS +0.6%,

Gapping down

SAP -6.3%, TIBX -4.5%, CRM -3.4%, IBM -1.9%, EMC -1.2%, MSFT -0.6%, PVH -1.6%,  TDC -2.9%,

BP -1.8%, E -1.8%, CPTS -6.4%,  SEE -2.9%,  OPEN -2.9%, WAG -6.8%, JBL -4.7%, KMX -1.8%, PAYX -1.6%,

LNN -1.5%,

In Play 

On the Wires

Remember when you had to write your orders on a ticket ?

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He did not give an exact time of day, but said he expected the crisis to end mid year sparking a major bull run.

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“The head of the world’s biggest bond fund said he sees a more than 1-in-3 chance that the eurozone will break apart and trigger a financial crisis akin to the one that devastated the global economy in 2008.

“It would be the equivalent of a sudden stop” in which financial markets seized up, Mohamed El-Erian, chief executive officer of Pacific Investment Management Co. in Newport Beach, California, said. “It would be really, really messy.”

The global economy suffered its worst recession since World War II after the collapse of Lehman Brothers Holdings Inc. in September 2008 triggered steep falls in global stock markets. Gross domestic product in the U.S., the world’s largest economy, shrank by 5.1 percent.

El-Erian said in a Bloomberg interview that the crisis in Europe is no longer just about what will happen to periphery nations like Greece. “It is now a crisis for the eurozone as a whole,” he said.

He said the most likely outcome — with a 1 in 2 chance — is that European policy makers “get their act together” and manage the transition to a smaller currency union. The least likely is that the 17-nation euro zone stays intact: the possibility of that occurring is just 15 percent, he said……..”

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