Al Sunshine's 4 Your Money

Mid Day Trading's seeing a Lot of Volatility.

Fortunately, the Weeks' close for the Dow saw some solid, last-minute Gains after a 167 point swing that brought the Dow down to the 9800 mark before picking up new strength in late afternoon trading.

It's as if Bargain Hunters saw opportunities at the 9800 level and jumped back to pick up some end of the week deals. 

By the end of Fridays' Trading, the Dow was still able to close over the 10,000 mark and picked up about 10 points.

But it was still an off-week for the start of  February Trading.

My 401K's and other Investments are still not looking as good as they did just a a few days ago.

February Trading on Wall Street's still not looking very good at all.

And I know I'm not alone.

What's going on?

Why is Wall Street suddenly seeing wild triple-digit swings lately and what can we do about it?

First Up: What's Going On?

The So-Called Economic Stimulus Plan is running out of cash and running out of steam.

It Front-Loaded the Economy back in the Summer and Fall of last year to keep us from falling into a Major Depression.

It shored up the U-S Financial System at the cost of Hundreds of Billions of Dollars.

It basically saved us from sinking into even deeper problems.

But we knew back then, the bills to pay for it all would start coming due at some point. We're facing huge budget deficites and Congress is allowing the Adminstration to increase the National Debt to record levels. The bill will take gerebnations to pay-off.    

The "Economic Momentum" Stimulus- Spending generated helped, but it's now starting to slow down.

Much of the Stimulus Money has already been spent, but New Jobs are not starting to seriously help us yet.

And we're already hearing about possible major layoffs for Local and State Employees next year if tax revenues keep falling. 

In the meantime, Unemployment is already claiming thousands of jobs and new hiring's stalled.

The Timing is especially bad because it's happening at the same time all those Holiday Shopping Bills are coming due.

As consumers struggle to pay them, they're letting their Mortgage Payments wait.

And if this trend continues, we can expect to see Foreclosures getting even worse.

So what's Happening on Wall Street?

Investors are following these trends too.

Some Forecasters predicted the First and Second Quarters of 2010 would see little positive growth out of the U-S Economy.

Even though the latest numbers from the U-S Commerce Department show the overall Economic Growth Up about 6% from last Fall, several other major indexs are showing little major improvement.

Bottom Line?

The same cycle of Unemployment, Foreclosures, Consumer Debt and Tight Credit that got us into this mess hasn't been fixed.

Here are some Historic Wall Street Numbers to Remember from Coral Gables' Evensky & Katz:

Last Time the Dow was under 10,000: November 4th, 2009

January Trading Started at 10,428

The Years' High was 10,725 on Jan. 19th

It was just a few weeks ago when we first started thinking again about the Dow hitting the 11,000 Mark.

Instead, we now have to worry about it maintaining 10,000 again.

What can we do right now and when might Wall Street improve?

Basic Investment Strategies for the Past Several Months haven't really changed: Consider a Diversified Mix of Available Cash, Stocks, and Bonds.

If you have an Extra Dollar to Invest, how much do you want to put in the Bank and How Much do you want to gamble with...Opps, I mean invest?

How well can you sleep at night if all your investments are in the Stock Market, and do not include any "Blended Money Market Funds" or Bonds?

It's definately time to check with your Accountant or Financial Planner to consider Re-Balancing your Portfolio.

February 2010 is still seeing Wall Street over its' 2009 Low Point back in March.

So we have seen some growth.

But we haven't seen dramatic growth in Personal Income, Jobs, Manufactoring or Real Estate Values.

The Critical Construction Industry remains stalled Nationwide.

And until the "Economic Foundation" of the U-S Economy Stabilizes, Wall Street will see more Volatility and our 401K's and Other Investment's will continue to bounce around through the Fall.

Despite Florida's record Unemployment and one of the worst foreclosure problems in the county, the latest study out of the University of Florida just found we're feeling a little better about the future.

Researchers found "We are definitely by all measures  more economically healthy this year than we were last year. Last year at this time,the stock market was still reeling"

Economists say consumer confidence in Florida jumped five points this month.

That's better than expected and its' best level in 2 years.

We're now more optimistic about our family finances,the overall national economy, statewide business conditions and it's putting us back in the mood to consider making some major purchases.

The study found "We've managed to dodge hurricanes but we've just had this bad freeze, that is going to translate into higher produce prices, so as that filters into the stores, people here in Florida will have some reaction to that."

But it's the housing market that state researchers now worry about the most.

They predict until the state and national economy sees stronger gains and more people get back to work, Florida's real estate industry will continue to suffer.

The U of F forecasters predict "Occupancies continue to go down, rental rates continue to go down across most property types so there really is a challenge to the fundamentals of real estate and it will continue to be that way so long as there's a high unemployment rate and a lack of confidence in the consumer."

Some Real Estate Forecasters predict the overall housing markets statewide may not see significant new growth until 2011 or even later.

And a University of Michigan/ Reuters Study on Consumer Sentiment just found the Highest National Numbers since January of 2008.

So despite recent downturns on Wall Street, Main Street is apparently starting to feel a little better about the future.

Irving Mercado shrugs his shoulders and groans "I would never think something like this would happen to me"

Mercado likes to double check his bank statements every month.

So when the Miramar resident recently saw an unauthorized payment taken out of his checking account, he thought something was wrong.

Mercadio says "I found one thing that was strange to me from cheapest-themes- dot-com and I never heard of them before."

It happened again a few months later.

He called his bank and then he called us.

"I've seen the CBS4 I-Team before and how you guys work and how you get things done" he explained.

Mercado tried calling the company, but they didn't return his repeated calls and emails.

So he decided to check them out online.

He found dozens of similar complaints and says "That's when I found out this was a fraudulent website. I found there had been so many other victims who had had charges made on their accounts".

And he's not the only one who found more than he bargained for on his home computer.

David Zak says he almost fell for a rental scam after checking out some recent e-mails.

As a part-time realtor, Zak knew a 5 bedroom house should rent for a lot more than $15-Hundred bucks a month.

But the E-Mail he found in his In-Box looked like too much of a good deal for him to believe.

Zak says the sender "Was asking for, like sending him money before I got the keys. Not being able to go into the property to look at the property sounded a bit strange to me for a real estate transaction."

So he also called the CBS-4 I-Team to tip us off and make sure nobody else might fall for this E-Mail.

What do cybercrime experts think abou these two Cybercrime cases targeting South Florida Victims?

Mike Walsh says "It's absolutely getting worse"

He's an agent with the U-S Secret Service who works out of the the Miami Cybercrime squad.

He says last year, hackers stole more than 285 million personal records in just one network break-in.

His cyber-sleuths recently helped shut-down an international group of hackers in the countrys' biggest network break-in.

I asked where most of it came from?

He answerred "Right here in Miami".

Walsh adds " And that's why the Secret Service now considers South Florida one of national leaders for cyber-scams. I would say we'd have to be in the top 3".

I asked if it's really that bad here.

He explained "Yes it is and it's definitely getting worse".

Irving Mercado was able to get some of his money back from his bank and says he still hasn't heard back from the website.

I tried calling and sending them E-mails and I haven't heard anything back either. If I do, I'll let you know about it.

Zak warns " You don't want to give out any personal information such as your birthdate your home address obviously your social security number,credit card information, checking account or bank account information. If it's too good to be true, make sure you check everything out before you spend any money on it"

Cyberscams are also getting a lot more attention from local, state and federal investigators.

That's because of an increasing number of break-ins and data breaches are targeting companies and government agencies and it's becoming a possible National Security Issue too.

Want more information about Avoiding Cyberscams?

http://www.ftc.gov/bcp/menus/consumer/tech/privacy.shtm

http://www.fbi.gov/cyberinvest/escams.htm

http://www.cbsnews.com/stories/2010/01/13/tech/cnettechnews/main6093317.shtml

http://www.sec.gov/investor/pubs/cyberfraud.htm

It's happening around South Florida and all over the country: Some of the most popular Toyota Cars and Trucks being pulled off showroom floors and taken off the market.

The problem?

Numerous complaints that some accelerator pedals can get stuck and prevent the vehicle from slowing down.

A total of 2.3 million Toyotas mainly built between 2009 and 2010 are being recalled. But some earlier models are on the list too.

At West Dade's Toyota of South Florida, Manager Leo Perez says the recall will hurt his business.

Perez says "There's no doubt about it it's rough not being able to sell some of our core products"

But Perez says he still has plenty of other non-recalled Toyota products to sell.

He's been busy all day answering questions from concerned customers like Fernando Campo who has a Recalled 2009 Camry. But Campo says he isn't worried about driving it.

He explains " It is on the recall list, but I like Toyota and they're taking care of their customers."

I asked if the recall worries him about the safety of his Camry?

Campo says "I believe it's fine, absolutely".

Toyotas' Recall includes it's most popular vehicles including some Camrys, Tundras and Rav-4's.

Here's Toyotas' Official List:

• 2009-2010 RAV4,
• 2009-2010 Corolla,
• 2009-2010 Matrix,
• 2005-2010 Avalon,
• Certain 2007-2010 Camry 
• 2010 Highlander except hybrid models,
• 2007-2010 Tundra,
• 2008-2010 Sequoia

There have been dozens of reports of stuck Toyota accelerator pedals for several years.

The problem has reportedly caused several accidents and deaths.

Toyota believes the stuck pedals come from some U-S made accelerator assemblies.

Local dealers say customers should *NOT* check accelerator pedals themselves, but bring them back to their Toyota Mechanics as soon as posible.

Perez warns "Customers cannot know on their own if they have a bad pedal or not, they need to come into their dealers to have them checked out. That's what we're here for, bring your vehicles back to your dealers."

If you have one of the Recalled Toyota cars or trucks, have it checked our as soon as possible to make sure it's safe to drive.

Remember, the problem is *Not* fixed by just removing the floor mats, like Toyota first advised.

If your accelrator sticks and won't slow down, shift into neutral, carefully apply your brakes and get to the side of the road as safely as possible.

 

For more information, consumers are urged to contact Toyota at 1-800-331-4331 or the NHTSA hotline at 1-888-327-4236.

http://pressroom.toyota.com/pr/tms/toyota/toyota-consumer-safety-advisory-102572.aspx

http://www.nhtsa.dot.gov/portal/site/nhtsa/template.MAXIMIZE/menuitem.f2217bee37fb302f6d7c121046108a0c/?javax.portlet.tpst=1e51531b2220b0f8ea14201046108a0c_ws_MX&javax.portlet.prp_1e51531b2220b0f8ea14201046108a0c_viewID=detail_view&javax.portlet.begCacheTok=token&javax.portlet.endCacheTok=token&itemID=b3e8915e41825210VgnVCM1000002fd17898RCRD&overrideViewName=PressRelease

Key Biscayne Dad Julian Wortelboer worries about the food his sons get in their Key Biscayne Community School cafeteria.

The father of 5 year old twins says " They bring their own food from home because we heard about the cafeteria had roaches and things going on in the cafeteria, dirty plates and things like that."

For more than a decade, I've reported how state health inspectors routinely find sanitation problems at local schools.

Several Public School Cafeterias were temporarily closed over the past few years after Health Inspectors found Rat and Roach infestations inside the kitchens.

So how are our Public Schools doing this year?

I checked out some recent inspection reports at the Miami-Dade Health Department and saw numerous mostly minor sanitation citations. But I also found inspectors recently issued violations for an infestation of roaches in a cabinet outside the kitchen at Van Blanton Elementary School.

The head of the Miami-Dade Health Departments' Sanitation Program, Samir Amir explained the report saying it was "Basically asking them to exterminate live roaches they found in cabinets"

Thanks to our "Cruddy Cafeteria" Investigations, state lawmakers back in 2008 ordered all public schools to publicially post their inspection reports inside schools and on the internet.

Amir explains "As a parent you need to know the quality, preparing food where your children eats, make sure conditions meet health and safety standards."

But because the State Law doesn't specify where the reports are posted, in most cases they are in the back of the Cafeteria where most parents can never see them.

That's why the Internet Posting Requirment is so important for parents.  

So, how are local school cafeterias doing meeting State and Federal Sanitation standards when it comes to making our kids school meals?  

I visited about a dozen schools around South Florida to check out their inspection reports.

I found in almost all cases, School Sanitation reports are not being posted where parents can easily find them.

In fact, in all but one case, school officials refused to even show them to me. And that's a violation of both State and Federal law.

And from what I found, nobody's enforcing the new law.

Because the Health Department doesn't have the regulatory authority to cite a school for not posting its sanitation reports online or in the school office, those violations are not enforced.

Amir confirms "I am not aware of anybody checking".

When Key Biscayne Community School opened for the year, 500 cartons of spoiled milk were found in the cafeterias' refrigerator.

It turns out, the Refrigerator was unplugged when school ended last May. The school found the problem and reported it to the Health Department.

The spoiled milk was ordered destroyed.

But I couldn't find the sanitation report in Key Biscayne Community Schools' office or on its website when I checked it out several months ago.

So what's the Miami-Dade school system got to say?

Penney Parham runs the School Lunch Program for Miami-Dade and says "When you have to deal with a handwritten carbon copy, thats what the Principals, thats what they are given so its difficult to put it electronically."

But she confirms the state statute and adds " the inspection reports are to be posted in a visible area and on the school website. It is done on a hand written form and then photo copied scanned faxed and deciphered what is written and it causes a few extra steps to actually being updated electronically."

But Principal Yolanda Valls doesn't seem to have any problem at Hialeah's Mae Walters Elementary School.

She posts a copy of the health report in the main office and on the internet for parents. It turns out, she was the only SDchool Official in Miamui dade and Broward who showed me a copy of the latest Cafeteria inspection report.

Valls explains" It makes them comfortable, especially when they see it is satisfactory, that we are doing the right thing".

Most parents I spoke with don't even know about their right to see the schools' health reports.

As a result of my CBS-4 I-team investigation, Congress may soon start cracking down on schools nationwide.

Representative Debby Wasserman Schultz now wants to make sure those inspection reports are available to any parents who want to see them. The Broward Mom wants our Investigations entered into the Congressional record and played on Capitol Hill.

The Broward Democrat plans on introducing legislation this fall strengthening Parents' Rights to see School Inspection Reports and disciplining schools that fail to Publically Post the Information where parents can find them on-line or inside the school's main offices.

She adds " Without your reporting on this, without your dogged determination, there's no way we would be at this point to know we needed to change the Federal Law because there's been no light shed on this other than your reporting".

Despite problems posting inspection reports, Health Inspectors say local schools are now doing better meeting state and federal sanitation standards than several years ago..

There have been no major food borne illnesses at any South Florida Public Schools this year.

And both Broward and Miami-Dade School Officials continue to refuse allow CBS-4 News inside their School Cafeterias when Health Inspectors go thru them looking for violations.

 

 

 

 

Wall Street saw the Main Industrial Averages drop by triple digits Wednesday, fueled by more concerns about a stalled global economic recovery.

So when trading opens Thursday, investors may still be a little nervous.

Chinas' considering tightening up lending at it's National Banks and that's what helped trigger Wednesdays' declines.

Adding to concerns about the global recovery?

Greece is also facing serious financial problems.

And Japans' biggest airline, JAL, filed for Bankruptcy protection Tuesday..

Still, the U-S Economic recovery is seeing new signs of picking up more strength.

The latest retail sales figures for Mid-January  rose about 2% to the highest levels since early December.

But food prices are rising too, according to the labor department.

And that's going to hurt family budgets already strained to the breaking point by rising energy costs.

When trading closed Wednesday, the Dow dropped about 122 points leaving the Main Industrial Averages at 10,602.

As Wall Street heads towards the end of the week's trading, we're seeing more volatility again.

The Dow picked up more than one hundred points earlier in the week, only to end up giving it back in just one day.

Possibly steering the Markets Thursday?

The latest Jobless claims.

And they may not put investors back in the mood to buy much of anything.

It's a very natural reaction for so many of us: We see the horrible stories coming out of Haiti after a massive Earthquake leveled the Capitol and we want to help the victims.

 

For South Florida, Haiti's Latest Tragedy is even that much closer to home because of our close ties to the country and our Thriving Haitian-American Community.

 

Our first thought might be to find clothes, food, medical supplies and toys and take them down to a collection site to send to Haiti's Survivors.

 

But the horrible reality is Transportation into Haiti and around that country for now may be very difficult. Military Aid and Relief Supplies aimed at immediatly saving lives will be a priority. 

 

The cold reality is, there's a History in the past of Private Emergency Supplies waiting here for weeks to be shipped to Caribbean Distaster Areas, only to wait again for even longer in foreign warehouses or out on the open, until they can be transported throughout the country.

 

What's Needed Now and What Can We do about it?

 

Charity Groups like the Red Cross are asking for Financial Donations. They need the money to not only get Pre-Packaged Emergency Food, Water and Medicines, but they also need the funding to make sure it gets where it's needed the most. Operating costs to mount Private Relief Efforts costs money.

 

We'll be hearing a lot more over the coming weeks about Charity Drives for Haitian Relief.

 

Remember, Charity Donations need to go directly to the victims as soon as possible. That's why so many Charity Groups are now asking for Financial Donations and not Extra Food, Water, Medicine or Clothing.

 

Here's another problem you need to be aware of: Charity Scams.

 

We want to make sure every donation goes where it's intended. But unfortunately Scam Artists use Disasters like the Haitian Earthquake to set up bogus Charities that use most of your money to line their pockets.

 

Unfortunately, there are no State or Federal Laws requiring that most of the money a Charity Raises, actually goes to the needy and not the charity operators themselves.

 

So What can you do about it?

 

By Florida Law, all Charities have to be registered with the Florida Department of Agricultuire and Consumer Services.

 

Charities are required to disclose how much money they collect, how much they keep for "Administrative Operations" and how much actually goes to the needy.

 

You can check out Florida Charities on line at:

 

http://app1.800helpfla.com/giftgiversguide/

 

The Federal Trade Commission has put out National Charity Scam Warnings for Years and offers these guidelines to make sure your Donations actually end up with the Victims of Disasters, and not Scam Artists:

 

    * Don’t be shy about asking who wants your money. Some charities hire professional fund­raisers for large-scale mailings, telephone drives, and other solicitations rather than use their own staff or volunteers, and then use a portion of the donations to pay the fundraiser’s fees. If you’re solicited for a donation, ask if the caller is a paid fundraiser, who they work for, and the percentage of your donation that will go to the charity and to the fundraiser. If you don’t get a clear answer - or if you don’t like the answer you get - consider donating to a different organization.

    * Call the charity. Find out if the organization is aware of the solicitation and has authorized the use of its name. If not, you may be dealing with a scam artist.

    * Ask for written information about the charity, including name, address, and telephone number.

    * Contact the office that regulates charitable organizations and charitable solicitations in your state to see if the charity or fundraiser must be registered. If so, check to make sure that the company you’re talking to is registered. For a list of state offices, visit the National Associa­tion of State Charity Officials at www.nasconet.org/agencies. Your state office also can verify how much of your donation goes to the charity, and how much goes to fundraising and man­agement expenses. You also can check out charities with the Better Business Bureau’s (BBB) Wise Giving Alliance (www.bbb.org/charity) and GuideStar (www.guidestar.org).

    * Trust your gut - and check your records if you have any doubt about whether you’ve made a pledge or a contribution. Callers may try to trick you by thanking you for a pledge you didn’t make. If you don’t remember making the donation or don’t have a record of your pledge, resist the pressure to give.

    * Be wary of charities that spring up overnight in connection with current events or natural disasters. They may make a compelling case for your money, but as a practical matter, they probably don’t have the infrastructure to get your donation to the affected area or people.

    * Watch out for similar sounding names. Some phony charities use names that closely resemble those of respected, legitimate organizations. If you notice a small difference from the name of the charity you intend to deal with, call the organization you know to check it out.

    * Be cautious of promises of guaranteed sweepstakes winnings in exchange for a contribution. According to U.S. law, you never have to give a donation to be eligible to win a sweepstakes.

    * Be wary of charities offering to send a courier or overnight delivery service to collect your donation immediately.

    * Know the difference between “tax exempt” and “tax deductible.” Tax exempt means the organization doesn’t have to pay taxes. Tax deductible means you can deduct your contribution on your federal income tax return.

    * Do not send or give cash donations. Cash can be lost or stolen. For security and tax record purposes, it’s best to pay by credit card. If you’re thinking about giving online, look for indicators that the site is secure, like a lock icon on the browser’s status bar or a URL that begins “https:” (the “s” stands for “secure”).

 

For more information about making your donations count, visit www.ftc.gov/charityfraud.

Global Markets pulled down Wall Street as the World-Wide Recession deepened.

And now that some major Global Markets may be improving, we're starting to see a little more optimism from U-S Investors.

And that may be one reason why Wall Street started off the trading Monday with some moderate gains that should carry thru Mid-Week trading.

China reports its' exports are improving as U-S consumers bought more holiday merchandise than stores could keep up with.

As a result, inventories are at near-record lows and orders for new consumer goods are reportedly flooding into China.

Closer to home, G-M is now talking about re-opening several of it's closed plants after renewed consumer demand for some popular G-M products.

If sales improve, it will also mean more furloughed U-S auto workers could soon be recalled. And that will go a long way to improve our overal National Unemployment problems over the next few months.

Wholesasle oil's been climbing on Commoditys Markets and that's why pump prices at local gas stations have gone up by about a dime a gallon since last week. Investors seem to be optimistic enough about an improving Economy that they believe gas prices can sustain Higher Prices and they can make money on their investments.

Here's a tough question nobody wants to ask: Could we soon be looking at $3.00 a gallon again before the end of the month?

Investors seem to want to keep putting more money into Wall Street.

And that's why when trading closed Monday, the Dow still picked up about 46 points leaving the Main Industrial Averages at 10,664.

Some analysts say the first few weeks of trading after New Years' sets the tone for the rest of the year in the Stock Market.

So far, early January trading's been pretty good and the rest of this week should be no different.

Wall Street saw some moderate gains during it's first week of 2010 trading.

So when investors get back to work Next Week, they'll be looking very closly for the latest signs of a meaningfull Economic Recovery.

But they'll also be seeing the latest signs the U-S Economy's still got a lot of problems to solve.

The latest December Unemployment numbers show layoffs continuing.

The only bright spot may be the country's 10% Unemployment Rate remained flat since November.

And that's being seen as a possible sign layoffs have bottomed out.

But it was hoped towards the end of 2009, we'd start seeing pink slips slowing down along with possibly the first new job growth in 2 years.

But we may have to wait until Januarys' figures come out next month, to see if companies started hiring again as 2010 gets underway.

The Commodity Markets are seeing some new interest and that's expected to continue to heat up the Wholesale Oil Market.

The bad news for the rest of us is we can expect to see higher prices at local gas pumps over the next few weeks.

Even though we got some good news out of the latest retail sales figures, showing better than expected improvements in holiday spending, some economists predict we may soon see a consumer pull-back as all those holiday shopping bills start coming due.

With unemployment still a major concern both on Main Street and Wall Street, the Dow closed out it's first week of trading picking up 11 points on Friday, leaving the Main Industrial Averages at a New Recent High of 10,618.

Overall, Wall Street is continuing to see modest gains.

But we're also seeing some new volatility as old problems continue to take their toll on investor confidence.

Next week, we'll probbaly see the same trend developing, and that could hurt the markets thru January trading.

Investors may have pulled back slightly on their earlier buying binge that started 2010 off with solid gains.

But by late Thursday, the Dow crossed over the 10, 600 mark as investors started putting more money back into wall street.

Why are they back in the miood to buy?

The latest Labor Department numbers show another 434-thousand new unemployment claims were filed last week, reversing two weeks of improving numbers.

Even though that's still better than expected, it's still being seen as the latest sign companies may not be ready to start hiring again.

Iinvestors may be taking a second look at the retail sector after the latest holiday sales numbers came back better than expected.

That's good news for retailers, but potentially bad news for consumers when those holiday shopping bills come due later this month.

Wholesale oil's still approaching $83 dollars a barrel..and that's boosting local pump prices almost a dime a gallon since last week.

When trading closed Thursday, the Dow gained 33 points leaving the main industrial averages over the 10-5 mark at a new high of 10,607.

So far, 2010 has seen the same kind of slow gains and mild volatility we've been seeing since the fall.

Fridays' trading may be dominated by the Labor Departments' latest unemployment numbers.

Investors,like everyone else, are looking for some good news to start off the new year.

And so far, it looks like Investors are finding enough postive signs about the course of the Economy, they're making 2010 looking better every day.