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GFD Blog

Complete Histories – Northern Pacific – The Most Famous Stock Corner in History

The Northern Pacific Railway was a transcontinental railroad that operated across the northern tier of the western United States from Minnesota to the Pacific Coast. The goal was to connect the Great Lakes with the Puget Sound. Along with the Southern Pacific and the Union Pacific (originally the Central Pacific, but renamed during the Civil War), it was to be the northernmost of three transcontinental railroads.The Northern Pacific Railway was approved by Congress in 1864 and given nearly 40 million acres (160,000 km2) of land grants, which it used to raise money in Europe for construction. C ...

Global Warming Data Added

Global Financial Data has added four indicators of Global Warming. These four data sets use the Met Office Hadley Centre observations datasets for the World (HADCRUTGM), Northern Hemisphere (HADCRUTNM), Southern Hemisphere (HADCRUTSM) and Tropics (HADCRUTTM). Data are monthly and go back to 1850.The HadCRUT4 near surface temperature data set is produced by blending data from the CRUTEM4 surface air temperature dataset and the HadSST3 sea-surface temperature dataset. These ‘best estimate’ series are computed as the medians of regional time series computed for each of the 100 ensemble member re ...

Did Bernanke Study The First Bank of the United States?

The President, Directors and Company, of the Bank of the United States, or the First Bank of the United States, as it is more commonly known, was chartered for a term of twenty years, by the United States Congress on February 25, 1791. The bank was part of Alexander Hamilton’s plan for stabilizing and improving the nation’s credit by establishing a central bank, a mint, and introducing excise taxes.The Bank of the United States was to have $10 million in capital, of which $2 million would be subscribed by the government. The $8 million in shares sold to the public (20,000 shares at $400) wer ...

Complete Histories – The South Seas Company – The Forgotten ETF

Most people in the stock market have heard about the South Sea Bubble, the first stock market bubble, which took place in 1720, but few people realize that the South Sea Co. was also one of the first ETFs in market history. Many people have seen a chart of the stock rising from 100 to 1000 within a few months, then collapsing back to 100. But what happened after the stock price collapsed, and why did the stock price rise so suddenly and then collapse to begin with?The South Sea Company was a British joint-stock company founded in 1711 as a public-private partnership to consolidate and reduce ...

Complete Histories – Bank of England Stock

The stock for which Global Financial Data has the longest history is the Bank of England stock, or as it was originally known, the Governor and Company of the Bank of England.The origin of the Bank of England lies in naval warfare. In 1694, the French had the strongest navy in the world and following the 1690 Battle of Beachy Head, England needed to rebuild its navy, but King William III lacked the resources and the credit to do so.This problem was resolved by creating the Bank of England. In exchange for creating a limited liability corporation, which would act as a bank for the government ...

New Housing Price Indices Added

Freddie Mac has added 23 new Metropolitan Standard Areas (MSAs) to the list of MSAs that they cover in their quarterly surveys of housing prices throughout the United States. The FMHPI provides a measure of typical price inflation for houses within the U.S. Values are calculated monthly but are released at the end of the following quarter. The FMHPI is based on an ever expanding database of loans purchased by either Freddie Mac or Fannie Mae.With the addition of the 23 new MSAs, the Freddie Mac survey now covers 383 MSAs throughout the United States. The 23 new MSAs are:
  • Albany, OR Alb ...

GFD Complete Histories – Dr. Pepper

Since I grew up in Dallas where the old Dr. Pepper plant was located on Mockingbird Avenue (now demolished), I have always been a Dr. Pepper fan, and though not everyone refers to it as the elixir of life as I do, it is still popular among those with discriminating taste like me, especially if you grew up in Texas.Dr. Pepper has gone through several corporate transitions. The Circle “A” Corp. which had the exclusive right to bottle Dr. Pepper went bankrupt in 1923 and reemerged as Dr. Pepper Co. after incorporating in Dallas in 1923. The Dr. Pepper Co. was acquired by Forstmann and Little, a ...

Preferred Stocks in a rising interest rate environment

Even though the Fed is not due to raise interest rates for a few years (2016 per the latest numbers that I’ve seen lately). People are still looking and preparing for this to happen. What asset classes will be affected positively and negatively? In the graph attached, I wanted to show the inverse correlation between preferred stocks and interests rates. with the recent move in rates, the price performance of preferred stocks has been negative. Please look at this long-term graph and see for your self

Break on through to the other side

In the above chart which shows the Dow Jones Industrial Average from 1885-present adjusted for inflation, you’ll see that the composite has yet to reach all-time highs in terms of real money. Even with the rally still in full-effect, it is tough to imagine a peak breaking though the triple-top resistance we are seeing (market technicians may argue anyway).When recessionary periods are introduced into the chart, the picture painted looks even bleaker. Will the fallout from this rally mirror the bear markets of yesteryear? Note the peaks of 1929, 1937, 2000 and 2007 and more importantly, what fo ...

The Greatest Stock Market Loser of All Time

The stock for China Logistics Group, Inc. (CHLO on the OTCQB) can lay claim to being the greatest destroy of equity of all time as a result of the multiple reverse splits its stock has suffered and the decline in the value of the stock that followed these splits. The stock for China Logistics Group, Inc. itself has never had a reverse split, but the companies that preceded it had multiple reverse splits which, if added together, created a cumulative one-to-two hundred quadrillion (million billion) split (in numbers, that is 1:200,000,000,000,000,000)!

In the OTC markets where penny sto ...