Problem underscores a glaring weakness in cap-weighted indexes
FORTUNE -- The Nasdaq boosters can't be kept down: The recent selloff, they insist, is a frenzied overreaction that's serving up even better buys. On April 10, the Nasdaq composite index fell 130 points, or 3.1%, marking its largest one-day loss since Nov. 9, 2011, when it fell 3.9%.
The sharp re-pricing is well-deserved. Over time the Nasdaq will careen through spikes and valleys MOREShawn Tully, senior editor-at-large - Apr 11, 2014 3:52 PM ET
How the airline managed to deliver a whopping $11 billion to shareholders of its bankrupt predecessor.
FORTUNE --When American Airlines declared bankruptcy around Thanksgiving of 2011, it seemed inconceivable that its shareholders would recover even a tiny sliver of their investment. Indeed, Wall Street wagered that the world's biggest airline, sinking under $8 billion in debt, its stock and bonds both selling at a token 20 cents, wouldn't even come close MOREShawn Tully, senior editor-at-large - Apr 10, 2014 4:45 PM ET
Why tax experts believe Rep. Dave Camp's proposal is misguided. (And, no, this article isn't totally self-serving.)
FORTUNE -- On April 2, Rep. Dave Camp (R-Mich.), chairman of the House Ways and Means Committee, released his eagerly awaited vision of tax reform, a draft bill 979 pages in length that's taken three years to prepare. Camp's stated goal is to make today's fiendishly complex tax code simpler and fairer. But one MOREShawn Tully, senior editor-at-large - Apr 4, 2014 5:00 AM ET
In a new report Schwab's chief investment strategist makes the case for a bump in corporate investing.
FORTUNE -- The most powerful tonic for the flagging U.S. economy would be a surge in capital investment. The willingness of manufacturers of semiconductors and chemicals to expand their fabs and factories, and airlines and utilities to order jets and build grids that will take many years, and a growing, prosperous base of customers, MOREShawn Tully, senior editor-at-large - Apr 2, 2014 5:00 AM ET
If the benchmarks used to determine the value of securities were to suddenly reverse course, the "new normal" could soon be history.
By Shawn Tully, senior editor-at-large
FORTUNE -- Seldom have so many of the metrics that influence stock prices strayed so far from the long-term trends we've come to consider "normal." Corporate earnings are far above what's normal historically, interest rates are way below normal because of Fed intervention, and MOREMar 26, 2014 3:17 PM ET
Forget ROE or EBITDA -- and meet COROA, or "cash operating return on assets."
FORTUNE -- A big challenge for investors is piercing management's feel-good, "it's all great if you leave out the bad stuff" earnings metrics to measure a company's true profitability. Even the official GAAP accounting numbers frequently need plenty of scrubbing to reveal the real picture. For example, many companies claim victory by boasting that their ratio of MOREShawn Tully, senior editor-at-large - Mar 10, 2014 10:08 AM ET
Basing it on the cost of tickets vs. miles flown is a way to cater to corporate customers.
FORTUNE -- Delta Air Lines (DAL) is making a radical change in its frequent-flier program designed to win more business from its biggest-spending customers, including corporate travelers. These "elite" fliers account for just 2% of Delta's customers but generate over 20% of the revenues, numbers typical of the industry.
Delta's gambit, announced at midnight, marks MOREShawn Tully, senior editor-at-large - Feb 26, 2014 12:00 AM ET
The panic-driven selloff has led to the buying opportunity of a lifetime.
FORTUNE -- Never underestimate the impulse for Wall Street market strategists and pundits to spin an outbreak of sudden fear into a durable trend, with a sensible-sounding narrative to back it up. So it is today with the sharp selloff in emerging market stocks and bonds. For champions of U.S. equities, indeed, the panic overseas seems a timely gift. MOREShawn Tully, senior editor-at-large - Feb 3, 2014 5:00 AM ET
Why the market jolt last week was the start of a sobering reality check for tech stocks.
FORTUNE -- Market prognosticators have conjured up many a reason for the two-day rout of stocks on Thursday and Friday, which sent the Dow Jones Industrial Average (INDU) plunging 494 points (3%) and the S&P 500 (SPX) down 55 points (3%). Some blamed the slowdown in China's perpetual manufacturing machine; others, the fears of MOREShawn Tully, senior editor-at-large - Jan 27, 2014 5:00 AM ET
Once a year, the CEOs and dealmakers who are members of Kappa Beta Phi gather behind closed doors to roast themselves. Why are they so worried about keeping the details private?
FORTUNE -- On Thursday night, Kappa Beta Phi, a secret society of Wall Street bigwigs, held its 82nd annual gala at the St. Regis Hotel in Manhattan. At these black-tie dinners, around 200 of the biggest names in finance carry MOREShawn Tully, senior editor-at-large - Jan 17, 2014 12:22 PM ET
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