Corey Ribotsky Update

Businessweek.com has an interesting piece today by Michael J. Moore entitled, “The Financial Sector Keeps Shrinking.”  Certainly, this type of article is important for those in the financial sector, like Corey Ribotsky.

The article states that, “In an effort to boost revenue, banks are shifting their focus back to bread-and-butter businesses, such as retail banking, brokerage services, and asset management. They are dusting off a once-favored strategy, cross-selling—persuading existing customers to buy additional products. Morgan Stanley has hired more than 170 private bankers to make loans and offer deposit products to its retail brokerage clients. Bank of America is looking to win banking business from the two-thirds of its Merrill Lynch customers who have bank accounts with other lenders. Wells Fargo is building its retail brokerage so that it can capture business from 5.2 million clients who hold $1.7 trillion in investment assets at other firms.”

Read more.

For coffee lovers, coffee traders and professional fund managers like Corey Ribotsky, the latest news on coffee futures is certainly of interest.  At the moment, coffee futures remain close to a 13 year high.

These rising prices have actually forced U.S. roasters J.M. Smucker Co and Kraft Foods Inc. to raise prices by 9% and 10%.  Starbucks Corp has reported, for now, that they will absorb the four cents a share increase.

As the article explains, “Coffee stocks in ICE-approved warehouses have shrunk 35% since the beginning of the year, and global exports were down 14% in June to 7.8 million of 132-pound bags. A year earlier, exports totaled 18.5 million, according to the London-based International Coffee Organization.”

Here’s an interesting blog post explaining that investors may be rethinking their lofty expectations for 2011.  As the author explains, “The equity strategy crew at Goldman Sachs chopped their estimates for 2011 calendar year earnings per share to $89 from $93 Monday, citing the decision of Goldman’s research shop to cut its GDP growth estimate for 2011.”

This is certainly news that’s worth keeping track of if you’re a Managing Member of an investment firm like Corey Ribotsky, or just someone who is diligent about investing.

This article from the Wall Street Journal examines why, when stock-market volatility fell recently, the overall market’s implied correlation didn’t fall as one would expect it would.  It’s an interesting analysis and a worthwhile read for investors like Corey Ribotsky, hedge managers and others.