Fisher Investments’ daily commentary with current views on market events and key economic issues.

COVER STORY

Not So Green Acres

5/16/2008

The 2008 farm bill passed the House and Senate. That’s okay, because it amounts to little more than election year pandering.

Brainiacs Unite

5/15/2008

Prediction markets are making use of efficient markets theory to forecast everything from basketball games to political contests.

Links to third-party news stories we believe either: 1. Correctly interpret market issues and current events, or 2. Perpetuate investing myths, basic misunderstandings of capitalism, and other common market misperceptions.

TODAY'S NEWS ROUNDUP

SENSIBLE STORIES

Fed Adds Liquidity and Economy Avoids Recession

By John M. Berry, Bloomberg

“Credit crunch” fears may be here to stay, but that doesn’t mean there was ever a legitimate “crunch.” It seems to us the Fed’s innovative actions were appropriate throughout the peak of the hype.

MARKET MISPERCEPTIONS

Californians Leading the Way to Consumer Bust

By James Saft, The International Herald Tribune

The California Contagion? We don’t buy it. Just as one country doesn’t wag the global economy dog, one state doesn’t lead the US economy.

A review of the day’s global market action.

GLOBAL MARKET UPDATE

Amid speculation the economy is slowing, MarketMinder remains bullish on global equities. Below is a summary of today’s market action (as of market close Thursday, 5/15/2008):

• Global Equities: MSCI World (+1.0 %)
• US Equities: S&P 500 (+1.1%)
• Best Country: Japan (+1.8%)
• Worst Country: France/Germany (+0.2%)
• Best Sector: Tech (+1.7%)
• Worst Sector: Utilities (-0.1 %)
• Bond Yields: 10-year US Treasuries fell 0.10% to 3.84%

Source: Fisher Investments, Bloomberg. Relative returns represent only the major developed markets contained within the MSCI World. All returns use local prices and market hours and are calculated in $USD.

COLUMNS

INTO PERSPECTIVE

Could Einstein Beat the Market?

5/13/2008 | Michael Cannivet

I’m going out on a limb: Albert Einstein could have been one heck of a money manager. That is, if he wasn’t so busy becoming the most renowned scientist of the 20th century.

Printer-Friendly

TOPICS

Alternative Investments
Behavioral Finance
Capitalism
Commodities
Corporate Earnings
Currencies
Deficits
Developed Markets
Emerging Markets
Finance Theory
Forecasting
GDP
Geopolitics
Globalization
Inflation
Interest Rates
Investor Sentiment
Market Cycles
Market Risks
Monetary Policy
Personal Finance
Politics
Taxes
Trade
US Economy

Classic investing vocabulary defined with thought-provoking MarketMinder insights.

WEEKLY FINANCIAL TERM

Correction

A reversal of the prevailing trend in price movement for a security. The term is most often used to describe a decline after a period of rising prices. A correction is often considered beneficial for the long term health of the market, in that the prices had risen too quickly and the drop put them back to more realistic levels.

MarketMinder's expanded definition:

Corrections are short, sharp drops for stocks during a longer bull market. Stock market volatility is a normal part of stock investing, and corrections are common—often occurring once or even twice a calendar year. Corrections are usually characterized by dour investor sentiment and a pervasively bearish outlook for stocks based upon a story later proven to be fallacious or overwrought. For example, stock markets plunged in 1998 on worries over the implosion of Long Term Capital Management and the so-called “Asian Contagion,” but quickly rebounded to new highs after these stories were debunked as legitimate worries for the broader market. Corrections can frighten many investors, but they don’t portend a bear market. Corrections are of lesser magnitude and duration than a bear market—ranging from a few weeks to several months.

QUOTE OF THE DAY

“Prejudice is a great time saver. It enables you to form opinions without bothering to get the facts.”

- George Santayana

A weekly biography featuring an influential individual in the world of investing. Learn about the fascinating life of this capital markets pioneer.

WEEKLY MARKET MIND

Edward Jones
You can't separate Rodgers and Hammerstein

Lively, red-headed and dimple-chinned Eddie Jones was a journalist in every sense of the word. He was a go-getter, a hard drinker at times, a gossip monger, a networker, and nosy. But he was no ordinary reporter, for he and colleague Charles Dow went beyond writing financial news—they created the century-old business bible, The Wall Street Journal (WSJ). And though Dow usually overshadows Jones because of his Dow Theory, there was no way the WSJ would be what it is today—or even exist—had it not been for Jones and his zany personality.

Each week, we profile an important figure in market history, highlighting the fascinating and often irreverent lives of key figures that influenced how capital markets came to be. (Excerpts taken from Ken Fisher's book, "100 Minds That Made The Market.")

Fisher Investments Legal Information

MarketMinder Website

This website reflects news, commentary, opinions, viewpoints, analyses and other information (collectively called “Market Information”) developed by Fisher Investments or unaffiliated third parties, which is subject to change at any time without notice. Fisher Investments provides Market Information for illustrative and informational purposes only.

Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Market Information is impersonal and not tailored to the circumstances or investment needs of any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security.

Market Information represents personal opinions and viewpoints of the commentators and should not be regarded as a description of advisory services provided by Fisher Investments or performance returns of any Fisher Investments client. Fisher Investments manages its clients’ accounts using a variety of investment techniques. Fisher Investments strategies are not necessarily discussed on this website or in any Market Information. Fisher Investments strategies and performance data are available to qualified investors and can be requested by calling 1-800-587-5512.

Fisher Investments does not warrant Market Information to be correct, complete, accurate or timely, and is not responsible for any errors or omissions in the information or for any investment decisions, damages or other losses resulting from, or related to, use of Market Information.

Fisher Investments Performance – Legal Information

Investments in securities involve the risk of loss. Past performance is no guarantee of future results. Not all past predictions were, nor future predictions may be, as accurate as those on this website.

Market Information includes confidential and proprietary information of Fisher Investments and third parties and is subject to copyright laws and other restrictions imposed by the provider of the information.

* Fisher Investments is an investment adviser registered with the Securities and Exchange Commission. As of 12/31/2007, Fisher Investments managed over $45 billion.