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Market Misperceptions
By , Slate, 01/29/2010
MarketMinder's View: Bankers make easy scapegoats these days, but most aren’t the villains they’re portrayed to be.
Market Misperceptions
By , Bloomberg, 01/29/2010
MarketMinder's View: This is exactly backwards. Economic recovery, historically, begets jobs, not the other way around. This time around should be no different. For more, see our 11/9/2009 cover story, “Unemployment’s Jab No Knockout.”
Sensible Stories
By , Bloomberg, 01/29/2010
MarketMinder's View: “Think of {the recent Asian market pullback} as a correction, not a bear market.” Agreed. Corrections are normal during bull markets and should be expected, not feared. For more, see our 1/14/2010 cover story, “Correct Correction Behavior.”
Sensible Stories
By , Bloomberg, 01/29/2010
MarketMinder's View: An increase in business investments and factory output helped boost GDP at its fastest pace in six years—a positive economic sign. Don’t look now, but the global economy is reaccelerating—a fact few could fathom a year ago.
Sensible Stories
By , The Wall Street Journal, 01/29/2010
MarketMinder's View: Amen. Inventories have been slashed during the recession, but as the economy improves, inventories depletion will abate and firms will eventually start restocking shelves as firms prepare for increased demand.
Market Misperceptions
By , Time, 01/29/2010
MarketMinder's View: Government debt is in fact much lower relative to the size of our economy than it’s been in past vibrant periods. Not to mention the fact our debt-to-GDP ratio is smaller than those of many other countries considered healthy. Our debt isn’t as bad as many believe and is still at sustainable levels. For more, see our 10/27/2009 cover story, “Not Just Debt Weight.”
Market Misperceptions
By , Bloomberg, 01/29/2010
MarketMinder's View: The fact corporate bonds bested stocks in a single month is meaningless. Historically, in the long run, stocks produce higher returns than bonds. And don’t forget—bonds can lose value too as corporate and municipal bonds did in 2008 and US Treasuries did in 2009. See our 1/5/2010 cover story, “Bonds in Red,” for more.
Sensible Stories
By , The Wall Street Journal, 01/29/2010
MarketMinder's View: Not much of a surprise here. Though we’ve been critical of the Fed chairman, this move likely tames some uncertainty in the market. For more, see our 1/26/2010 cover story, “Ben There. Done That. Now Let’s Do It Again.”
Sensible Stories
By , Bloomberg, 01/28/2010
MarketMinder's View: Orders are up, and demand is remaining steady. Both of these point to an increase in spending which is another good sign US consumers are doing just fine.
Sensible Stories
By , The New York Times, 01/28/2010
MarketMinder's View: Other members of the Eurozone continue to be committed to maintaining the union. For more see our 12/18/2009 cover story, “Big Fat Greek Deficit.”
Market Misperceptions
By , Bloomberg, 01/28/2010
MarketMinder's View:
Even during periods of very robust global growth, individual trouble spots exist. Don’t expect this expansion to be any different.
Market Misperceptions
By , Minyanville, 01/28/2010
MarketMinder's View:
Comparisons of today to the Great Depression are misguided. There are far, far more differences than similarities.
Sensible Stories
By , The Wall Street Journal, 01/28/2010
MarketMinder's View: Rates are being held steady for now and are likely to remain that way for “an extended period”—showing the Fed’s commitment to remaining accommodative.
Market Misperceptions
By , CNBC, 01/28/2010
MarketMinder's View:
“The current levels of budget deficits in both Europe and the U.S. are not sustainable and Europe's economic recovery will only be modest.” Deficit levels are high, but historically, big deficits—even as a bigger percent of GDP than now—haven’t led to stock market ruin. In fact, they’ve led to great stock returns.
Market Misperceptions
By , The Wall Street Journal, 01/28/2010
MarketMinder's View:
If we achieved low unemployment and low inflation for 15 years before, surely we can do it again. It’s never different this time—just the details are different. For more, see today’s cover story, “One Step at a Time.”
Market Misperceptions
By , The Independent, 01/27/2010
MarketMinder's View: Advocating “extreme measures” to reform banking during a tenuous economic recovery (especially in the UK!) has the potential to provide more headwinds to UK-based Financials. If you ask us, it’s not the best time to “change the face of finance as we know it.” For more on the UK’s situation, see today’s cover story, “Cheerio Ol’ Chap.”
Sensible Stories
By , Fortune, 01/27/2010
MarketMinder's View: Silver lining? Looks like the US government will profit from the bank loan portion of TARP, to the tune of $7 billion. (The much-touted shortfall—to potentially be recouped by President Obama’s recently proposed bank tax—comes from AIG, GM and Chrysler.)
Sensible Stories
By , Bloomberg, 01/27/2010
MarketMinder's View: In a sign of increasing economic stability, central banks are preparing to roll back some current stimulatory policies. Some will inevitably fear exit strategies are coming too soon (or too late), but actions so far have been very gradual.
Market Misperceptions
By , Telegraph, 01/27/2010
MarketMinder's View:
By their nature, corrections are caused by a sudden, unexpected story line that quickly gains traction and then fades almost just as quickly. To posit that “we’re overdue for a correction” simply because markets have been on an upswing for 10 months is shortsighted. Yes, a correction can happen any time—even right now! But short-term timing the market is risky business—there’s no tried and true method for knowing just when, or if, a correction will occur.
Market Misperceptions
By , The Motley Fool, 01/27/2010
MarketMinder's View:
Business spending, not consumer spending, fell dramatically during this recession—and will in turn likely bolster the economy as it rebounds. Consumer spending is notably static, even expanding its share of US GDP during past recessions. For more, see our 8/17/2009 cover story, “The Report of the Consumer’s Death Is an Exaggeration.”
Sensible Stories
By , The Wall Street Journal, 01/27/2010
MarketMinder's View: A boost in exports is a good sign for the Japanese economy—and a continuing boost in global trade levels is a good sign for the global economy.
Market Misperceptions
By , CNN Money, 01/27/2010
MarketMinder's View:
“The possibility of a downgrade of Japan also fed into rising concerns about the safety of government debt among the world’s developed economies.” Japan’s debt was downgraded to AA (one step below the best possible rating, i.e., still pretty darn good), and that means the US is next? Not sure we see the correlation here—the US is in a much different situation from Japan.
Market Misperceptions
By , Real Clear Markets, 01/27/2010
MarketMinder's View:
California has made many (many, many) mistakes in managing its budget and practically begged the feds for help. But both California and the federal government still have a number of ways to help California avoid default—California can stop spending so stupidly, for one.
Sensible Stories
By , The Wall Street Journal, 01/27/2010
MarketMinder's View: Global trade was hit hard during the downturn—but as developing economies continue to grow, their rising demand levels will prove a catalyst for trade’s rebound.
Sensible Stories
By , The Wall Street Journal, 01/26/2010
MarketMinder's View: The UK’s emergence from recession wasn’t as robust as some hoped, but renewed economic growth is positive nonetheless. Don’t expect the UK or other developed nations to lead the global economy out of recession—fast-growing emerging countries are likely to be the true engines of economic growth.
Sensible Stories
By , MarketWatch, 01/26/2010
MarketMinder's View: IMF forecasts are rarely on the mark, but they’ve got the trend right. Less than a year after many expected the next Great Depression, the global economy is set to grow at a healthy pace. Even lackluster economic data is likely to exceed still-dour expectations, boding well for stocks.
Market Misperceptions
By , The Wall Street Journal, 01/26/2010
MarketMinder's View:
Yes, debt and deficits are high. But that shouldn’t hold back stocks. In fact, stocks have historically done very well following periods of high deficits, and government debt is much lower relative to the size of our economy than it has been during vibrant times in the past.
Sensible Stories
By , Chicago Tribune, 01/26/2010
MarketMinder's View: Firms cut back tremendously during the financial panic, exacerbating the recession. Now that the economy is improving, shelves need to be restocked, capital improvements need to be made, and employees rehired. This renewed business spending should provide the economy with a significant tailwind.
Market Misperceptions
By , Real Clear Markets, 01/26/2010
MarketMinder's View:
Bernanke has made some significant missteps, but replacing him at this stage would hardly calm markets—throwing a new Fed head in the mix now could ruffle stocks. For more, see today’s cover story, “Ben There. Done That. Now Let’s Do It Again.”
Market Misperceptions
By , The Wall Street Journal, 01/26/2010
MarketMinder's View:
China’s tightening measures so far have received a lot of press but have actually been very minor. Overall, lending by Chinese banks has been tremendous and helped reaccelerate the Chinese economy.
Market Misperceptions
By , The Independent, 01/26/2010
MarketMinder's View:
“All of this means that the end of the recession will not herald a return to the levels of prosperity many families enjoyed before the crisis began.” Bad news is bad and good news is wrong—a perfect case of pessimism of disbelief here. For more, see our 1/25/2010 cover story, “Pessimism of Disbelief.”
Market Misperceptions
By , SmartMoney, 01/26/2010
MarketMinder's View:
We agree compensation decisions should be left to corporate boards, not politicians. But reining in compensation isn’t the key to Wall Street’s revival. Firms should have the freedom to pay top talent whatever they deem appropriate. Like all service businesses, finance depends heavily on human capital. Severely restricting compensation could mean losing firms’ most valuable assets.
Sensible Stories
By , The Wall Street Journal, 01/26/2010
MarketMinder's View: The Fed is inherently a political animal to some degree. After all, the Fed Chairman is appointed by the president and confirmed by Congress. Even so, the Fed should remain as independent as possible. We certainly wouldn’t want a bunch of politicians dictating monetary policy.
Sensible Stories
By , The Wall Street Journal, 01/25/2010
MarketMinder's View: A well-written commentary about the flaws of Obama’s proposed bank reforms. For more, see our 01/22/2010 cover story, “A Limiting Proposal.”
Sensible Stories
By , Bloomberg, 01/25/2010
MarketMinder's View: In Japan and around the world, central bankers remain prepared to keep economic wheels greased with liquidity.
Sensible Stories
By , Time, 01/25/2010
MarketMinder's View: “This profusion of data surely has increased our understanding of the economy and its ebb and flow. It doesn’t seem to have made us any better at predicting the future, though.” Most economic indicators are inherently flawed and don’t tell you much, if anything, about where stocks are headed.
Market Misperceptions
By , Bloomberg, 01/25/2010
MarketMinder's View:
The repercussions of “buckling” to Washington’s pressure will likely show over time as top talent starts looking to other fields that pay top dollar.
Sensible Stories
By , Newsweek, 01/25/2010
MarketMinder's View: A good look at the economics of the US-China currency brouhaha—and reasons why fears about the RMB dethroning the dollar are silly. See our 03/25/2009 cover story, “Short One Alien Invasion,” for more.
Market Misperceptions
By , Reuters, 01/25/2010
MarketMinder's View:
This is financial Darwinism and nothing to worry over—weak banks failing give stronger banks more incentive to become stronger and add more services. Plus, a huge number of banks failed last year, yet stocks continued their march upward.  
Market Misperceptions
By , Fortune, 01/25/2010
MarketMinder's View:
Is there anything the author of this article doesn’t think is a bubble? Not to mention the fact the rationale for the bubble claims are all wrong. Ignore.
Market Misperceptions
By , The Wall Street Journal, 01/25/2010
MarketMinder's View:
Increasing transparency and improving regulation of financial products are worthwhile endeavors. But stifling financial innovation isn’t. As markets evolve, so will investment products, and attempting to stop that evolution will likely hurt more than help. 
Market Misperceptions
By , The Business Insider, 01/25/2010
MarketMinder's View:
Our politicians need to learn about the Laffer Curve: More taxes don’t always equal more revenue. In fact, raising taxes on everything may actually do more harm than good, revenue-wise, but markets likely won’t worry much. For more, see our cover stories, “California Dreamin’” (08/12/2008) and “Don’t Mess With Taxes” (10/14/2009).
Sensible Stories
By , Bloomberg, 01/25/2010
MarketMinder's View: Despite all the political posturing, this was never really in doubt. Bernanke has made some significant missteps, but he has also had some important successes. Investors will likely find solace in the fact he’s staying put since a replacement now would likely result in uncertainty that could weigh on stocks.
Market Misperceptions
By , The Independent, 01/25/2010
MarketMinder's View:
Ignore. Impeding China’s economy doesn’t enhance ours. Fast-growing emerging economies help boost the global economy. Countries—including the US—are more likely to embrace this trend than oppose it. To wit, more free trade agreements are signed every day (even ones between long-time political foes, e.g., China and Taiwan). See our 11/16/2009 cover story, “Back to Business,” for more. 
Sensible Stories
By , The Economist, 01/22/2010
MarketMinder's View: People like to think we’re so much worse off now than we were in some idealized time in the past, but that’s exactly backward. Even following a big recession, we are leaps and bounds better off now.
Sensible Stories
By , The Sydney Morning Herald, 01/22/2010
MarketMinder's View: Aside from the rather bizarre ad hominem attack on an American media outlet wholly unconnected to the crux of this message, this is largely correct. Folks are eager to find fault with China, but the country seems to be remaining accommodative overall, and its economy continues cooking along. For more, see our 1/8/2010 cover story, “Testing the Tiger.”
Market Misperceptions
By , Reuters, 01/22/2010
MarketMinder's View: This sounds nice and all, but it’s meaningless. Investors are optimistic because stocks are up a bunch. It’s not predictive—it’s a coincident indicator, at best. Says nothing good or bad. Just ignore it.
Market Misperceptions
By , Real Clear Markets, 01/22/2010
MarketMinder's View: People will want to apply all kinds of meaning to the Massachusetts Senate seat flip-flop, but it’s impossible to know and even more fruitless to conflate that to 435 House races and 36 (or so) Senate races. We see this more as evidence that, even if it must happen dramatically, politics will find a way to moderate in election years. For more, see our 1/21/2010 cover story, “So Long, Sixty.”
Market Misperceptions
By , The Wall Street Journal, 01/22/2010
MarketMinder's View: This is backwards—higher employment doesn’t lead to economic growth. Economic growth and increasing sales allow firms to gradually begin hiring again. This is how it’s always been historically—the economy recovers first, and jobs eventually follow.
Market Misperceptions
By , CNBC, 01/22/2010
MarketMinder's View: OK, so continued growth is more likely. We agree! Though we’re not really sure what you do with a probability forecast for the economy from one source. Seems like you’d want a few more data points to make a reasoned forecast.
Market Misperceptions
By , MarketWatch, 01/22/2010
MarketMinder's View: We’re a bit hesitant to call a potential limitation on risk and unclear bank restrictions a sane idea—at least not until we hear the details. It’s a bit premature to make any assumptions on this plan, whether good or bad.
Sensible Stories
By , The Wall Street Journal, 01/22/2010
MarketMinder's View: Stocks are quite jumpy on Obama’s “blurry” proposal for further bank restrictions—but until we have more clarity on the plans, speculation on how they’ll look is premature. For more, see today’s cover story, “A Limiting Proposal.”
Market Misperceptions
By , Associated Press, 01/21/2010
MarketMinder's View:
We’ve said it time and again—growth leads to hiring, not the reverse. However, patience is key here as unemployment is historically one of the last things to turn around in a recovery.
Sensible Stories
By , The New York Times, 01/21/2010
MarketMinder's View: China’s recovery kicked into high gear following a positive GDP report on Thursday.
Market Misperceptions
By , US News, 01/21/2010
MarketMinder's View:
These seven nations together are a tiny percentage of global GDP. Even during periods of robust growth, there are individual trouble spots. This is simply another reason to diversify globally.
Sensible Stories
By , CNN Money, 01/21/2010
MarketMinder's View: This article is mostly right. It’s true, the recovery can happen without a big consumer rebound. But that’s because consumer spending is far more resilient than you think, fell much less than other GDP components in the recession, and just doesn’t have that far to bounce back. For more, see our 10/1/2009 cover story, “A Sign of Better Days to Come.”
Market Misperceptions
By , BusinessWeek, 01/21/2010
MarketMinder's View:
Hoots and hollers for the rising dollar (and shouts of distress for the falling dollar) are nothing new and have little impact (if any) on global markets.
Sensible Stories
By , Washington Post, 01/21/2010
MarketMinder's View: Amid worries of devastation within the banking industry, Goldman Sachs’ projected earnings surpassed expectations—a positive sign Financials are healthier than most would have dreamed even a few months ago.
Market Misperceptions
By , MarketWatch, 01/21/2010
MarketMinder's View:
"2010 is the year when the bear market in stocks returns in full force." Folks love to compare today to 1929 or 1930, but there are just far more differences than similarities. For starters, back then, the Fed radically reduced liquidity, which was devastating—exactly the opposite of what has happened recently.
Market Misperceptions
By , The Economist, 01/21/2010
MarketMinder's View:
Yes, China is growing fast, but steep growth is simply not unexpected in an emerging market. Huge swaths of its population are moving into higher income levels, allowing for more consumption—which are positives for China’s society and economy. For more, see our 1/19/2010 cover story, “A Race We All Win.”
Sensible Stories
By , Money Watch, 01/21/2010
MarketMinder's View: “That’s why it’s important to understand that jumping in and out of the market is more likely to do harm than good, especially when you consider that some of the markets’ biggest gains have come when they were least expected.” Amen.
Sensible Stories
By , The Wall Street Journal, 01/21/2010
MarketMinder's View: Folks are reacting strongly to this today, but the proposals were very vague. Also, remember, if this is a return to Glass-Steagall, we survived very well under that Act for over six decades. Too early to know now how this all plays out, but it’s likely a combination of some good and some bad.
Sensible Stories
By , Bloomberg, 01/20/2010
MarketMinder's View: With this, the Democrats lose their supermajority and the health care bill will likely stall out. Though this was an incredibly dramatic road to take, it’s an example of how political will moderates in election years.
Sensible Stories
By , The Wall Street Journal, 01/20/2010
MarketMinder's View: While the IMF is a good source of data, it too, like any government entity, is prone to errors, biases, and political influence. Analyses should be taken with a grain of salt.
Sensible Stories
By , The Wall Street Journal, 01/20/2010
MarketMinder's View: Despite naysayers’ protests that TARP would be a loss for taxpayers, it looks like the government and taxpayers are going to make a huge profit from TARP loans to banks.
Market Misperceptions
By , Kiplinger, 01/20/2010
MarketMinder's View:
When will Congress learn? Protectionism usually hurts exactly those it intends to help—and in an increasingly global world, those who stand to lose the most are those who engage in it. Fortunately, this is likely just toothless saber-rattling. See our 06/24/2009 cover story, “Buy Apple Pie,” for more.
Market Misperceptions
By , The Wall Street Journal, 01/20/2010
MarketMinder's View:
We’re #8! Losing relative standing on the Index of Economic Freedom isn’t as dreadful as some may think. After all, we by far outrank Germany (#23) and France (#64). Oddly, many politicians and pundits opine we should be more like these less-free nations.
Market Misperceptions
By , Los Angeles Times, 01/20/2010
MarketMinder's View:
One bank’s woes don’t necessarily translate to other banks. Example: Wells Fargo posted a profit last quarter.
Market Misperceptions
By , Investor’s Business Daily, 01/20/2010
MarketMinder's View:
There are simply more differences between today and 1930 than there are similarities. First and foremost, the Fed back then reacted by radically reducing money supply—the opposite of what happened in the past 18 months.
Sensible Stories
By , The Wall Street Journal, 01/20/2010
MarketMinder's View: More evidence China’s recovery has stabilized as its government starts to rein in liquidity.
Sensible Stories
By , BBC News, 01/19/2010
MarketMinder's View: Inflation in the UK and globally is important to watch and could become concerning down the road. But anything more than temporary inflation jumps like this one aren’t likely until economies show significant improvement. Until then, central banks are right to remain accommodative.
Sensible Stories
By , Smart Money, 01/19/2010
MarketMinder's View: The road to recovery is usually bumpy. The economy has fits and starts. The stocks market experiences corrections. This is normal and shouldn’t distract from the fact recovery is indeed underway. For more, see our 1/14/2010 cover story, “Correct Correction Behavior.”
Sensible Stories
By , The Wall Street Journal, 01/19/2010
MarketMinder's View: “The market—not government mandates—should decide the value of our work.” Amen.
Sensible Stories
By , Fox Business, 01/19/2010
MarketMinder's View: Cheap stock valuations and near record amounts of cash on corporate balance sheets create an attractive environment for M&A. For more, see our 12/17/2009 cover story, “Cash Rich.”
Market Misperceptions
By , BBC News, 01/19/2010
MarketMinder's View:
Elevated default rates are a feature of every recession. But banks set aside funds for rising defaults—this weighs on earnings but mitigates balance sheet catastrophe. Not to mention the fact steep yield curves globally make lending exceptionally profitable, offsetting the earnings hit from rising defaults.
Market Misperceptions
By , Smart Money, 01/19/2010
MarketMinder's View:
These aren’t really “headwinds” at all. They simply reflect the fact we’ve been through a steep recession. Markets regularly overcome high unemployment, tepid consumer spending, and stalled revenue growth after recessions. As for stimulus—most of it hasn’t been spent yet, so it’s hard to see how it’s fading. None of this should derail recovery.
Sensible Stories
By , The Wall Street Journal, 01/19/2010
MarketMinder's View: A number of emergency liquidity measures are made obsolete by improving credit conditions—a positive sign for the global financial system.
Market Misperceptions
By , The Wall Street Journal, 01/19/2010
MarketMinder's View:
As the economy improves, so does capacity utilization. But the US is still using far less industrial capacity than normal. So, for the foreseeable future, excess capacity should help keep a lid in rising inflation.
Market Misperceptions
By , The Daily Beast, 01/19/2010
MarketMinder's View:
Wall Street executives are rightfully worried about the future. Regulatory risks abound, and it’ll be awhile before anger at financial firms abates. But investors are rightfully optimistic about the future as evidenced by the massive stock market rally since March 2009.
Market Misperceptions
By , Money Watch, 01/15/2010
MarketMinder's View: The VIX is quite simply a faulty forecasting tool. Peaks and troughs are always relative, and only obvious in retrospect.
Sensible Stories
By , The Economist, 01/15/2010
MarketMinder's View: We agree. Currently, China’s growth is underpinned by growing consumption from a population that’s moving up the development curve—happening all over the developing world. While China can certainly run into trouble down the line, for now, it seems set to continue robust growth. For more, see our 1/8/2010 cover story, “Testing the Tiger.”
Market Misperceptions
By , Barron’s, 01/15/2010
MarketMinder's View: Greece threatened to default—and the market’s risen strongly since. And folks who fear the US defaulting don’t understand what the “full faith and credit of the US government” really means.
Sensible Stories
By , The Washington Times, 01/15/2010
MarketMinder's View: In the best of times, unemployment data is based on fuzzy surveys and guesswork. Still, higher unemployment early in a recovery is normal and even to be expected. It shouldn’t derail the bull. For more, see our 1/11/2010 cover story, “Another Brick in the Wall.”
Market Misperceptions
By , The New York Times, 01/15/2010
MarketMinder's View: Bashing bankers is politically expedient, but it doesn’t solve anything and certainly won’t prevent future asset bubbles. For more, see our 01/15/2010 cover story, “Taxing TARP.” 
Market Misperceptions
By , Seeking Alpha, 01/15/2010
MarketMinder's View: “The double dip is coming —data out Wednesday and Thursday showed the climb out was really a crawl that stalled and the descent may even be underway.” This dour talk requires a reminder to think globally. This recovery isn’t US-led and likely won’t be. Growth is being driven heavily outside the US, particularly in emerging markets. Recoveries needn’t be US-led to be robust.
Sensible Stories
By , The Wall Street Journal, 01/15/2010
MarketMinder's View: Big bank pay may make you mad, but it’s evidence banks are healthy enough to pay out substantial compensation. For more, see today’s cover story, “Taxing TARP.”
Sensible Stories
By , The Wall Street Journal, 01/15/2010
MarketMinder's View: Positive news—inflation remains tame and under control as the economic recovery continues.
Market Misperceptions
By , The Wall Street Journal, 01/15/2010
MarketMinder's View: J.P. Morgan announced a $3.3 billion profit in the fourth quarter and this is the headline they chose? This is the pessimism of disbelief—where all good news is seen as bad.
Sensible Stories
By , Washington Post, 01/14/2010
MarketMinder's View: “Conditions ‘have improved modestly further, and those improvements are broader geographically than in the last report.’” The US economy continues improving amid a broader, overall brisker global recovery—which in turn helps the US.
Market Misperceptions
By , Bloomberg, 01/14/2010
MarketMinder's View:
The Davos people have nice meetings with lots of famous people and rock stars, but they’re not necessarily known for rock-solid economic predictions. China indeed has a fast-growing economy, but they are taking steps to rein in excess liquidity—weighing inflation risks against potentially stalling the current recovery. For more, see our 1/8/2010 cover story, “Testing the Tiger.”
Sensible Stories
By , The New York Times, 01/14/2010
MarketMinder's View: Though there’s widespread talk of “exit strategies,” central banks globally overall remain very accommodative.
Market Misperceptions
By , CNN Money, 01/14/2010
MarketMinder's View:
Making a prediction for the next five years—let alone the next decade—is fruitless. Unknown supply pressures will have vastly more impact down the road than anything anyone can predict today.  For more, see our 12/31/2009 cover story, “Predictably Unpredictable.”
Market Misperceptions
By , Business Week, 01/14/2010
MarketMinder's View:
This is an example of the pessimism of disbelief—where bad news is bad, and good news is bad too. For example, some folks think too much debt is bad. But these same people also think taking steps to reverse the debt is bad. These are typical wall of worry fears that appear in all bear markets.
Market Misperceptions
By , Motley Fool, 01/14/2010
MarketMinder's View:
The VIX is inherently faulty as a market indicator. Its peaks and troughs are always relative and only obvious in retrospect. 
Sensible Stories
By , Associated Press, 01/14/2010
MarketMinder's View: Big banker bonuses may make some people mad. And people are free to be mad about whatever they want. But there’s no evidence that price caps on salaries can or will prevent future asset bubbles of any type.
Sensible Stories
By , The Street, 01/14/2010
MarketMinder's View: Banks do face some headwinds, but they can still be profitable.
Market Misperceptions
By , The New York Times, 01/14/2010
MarketMinder's View:
While a good-old battle of Wall Street versus Main Street in the DC swamp is always good theater, there’s nothing here that should move markets. Folks will apologize. They may or may not mean it. Politicians will wag fingers and look affronted. Markets will likely ignore all of it.
Sensible Stories
By , Bloomberg, 01/14/2010
MarketMinder's View: “Emerging-market government bonds have reached an average investment-grade credit rating after Turkey’s ranking was increased last week.” Emerging markets overall continue swiftly up the development curve—very bullish.
Sensible Stories
By , The New York Times, 01/13/2010
MarketMinder's View: A good reminder countries aren’t necessarily all recovering in tandem. Emerging markets have led the way out of the global recession, while large developed economies like Germany’s are still getting their footing. But trouble in individual nations is normal and shouldn’t drag on overall global growth.
Market Misperceptions
By , The Pragmatic Capitalist, 01/13/2010
MarketMinder's View: Sure, no one’s denying the possibility (not probability, mind you) the Fed could struggle with exit strategy—but consumers becoming permanent savers? Never happened. Foreigners losing all confidence in US debt and the subsequent death of the dollar? Folks feared that all last year, while foreigners bought record levels of US debt. Investors should focus on what’s likely—not extreme remote risks.
Market Misperceptions
By , Chicago Tribune, 01/13/2010
MarketMinder's View:
Assuming “it’s different this time” and jobs simply won’t recover is reactionary and short-sighted. History shows unemployment often trends higher after recession ends, prior to recovering. There’s nothing new here.
Sensible Stories
By , The New York Times, 01/13/2010
MarketMinder's View: Google’s Tuesday afternoon announcement it would consider withdrawing from China entirely is a bold statement and likely reflects the sentiment of many other major corporations struggling to do business there. China has made enormous strides to liberalize its markets and economy, but there’s still work to be done to remove self-imposed obstacles.
Sensible Stories
By , MoneyWatch, 01/13/2010
MarketMinder's View: “Having a well-developed plan is only the sufficient condition for success. The necessary condition is to have the discipline to stay the course.”
Market Misperceptions
By , The Money Game, 01/13/2010
MarketMinder's View:
Defaulting to bearish is dangerous because historically, stocks rise more than fall. Suffering a bear market hurts, but long-term stock averages include bear markets. Missing a bull market because you’re too bearish is far more harmful in the long run.
Market Misperceptions
By , Investor’s Business Daily, 01/13/2010
MarketMinder's View:
“One of the worst investments in economic history”? We don’t think so. Agreed, the US stimulus plan hasn’t been perfect—no stimulus is—but it has helped the economy and stocks head toward recovery.
Sensible Stories
By , The Sydney Morning Herald, 01/13/2010
MarketMinder's View: A good explanation of the debt to income ratio and why it bears little significance for the overall economic health of a nation.
Market Misperceptions
By , The New York Times, 01/12/2010
MarketMinder's View:
Global economies aren’t zero sum. One doesn’t grow at the expense of another. And while it’s true China is a large exporter, we are hardly on the brink of a disastrous trade war. For more, see our 1/4/2010 cover story, “Trading in the New Year.”
Market Misperceptions
By , Real Clear Markets, 01/12/2010
MarketMinder's View:
We’d agree our unemployment calculations are screwy. And unemployment can certainly keep climbing. But unemployment is a decidedly lagging economic indicator. We wouldn’t be surprised to see it stay flat or increase even as stocks keep rising. See our 1/11/2010 cover story, “Another Brick in the Wall,” for more.
Market Misperceptions
By , Telegraph, 01/12/2010
MarketMinder's View:
Will the US lose its stellar credit rating? A better question: Why is anyone paying attention to the oligopolistic ratings agencies at this point?
Market Misperceptions
By , The Motley Fool, 01/12/2010
MarketMinder's View:
“A truly free market would have doled out just deserts to many financial companies: failure, no bonuses, and indeed, no jobs at all.” Right. And that’s just what happens. Lehman failed. Merrill is gone. Bear Stearns got bought up. A lot of people lost jobs and saw their savings decimated. Those firms that better managed the crisis survived. Creative destruction.
Sensible Stories
By , The Sydney Morning Herald, 01/12/2010
MarketMinder's View: The Australian economy received a boost in recent years due to a steady and increasing demand from China of Australian commodities imports.
Sensible Stories
By , The Wall Street Journal, 01/12/2010
MarketMinder's View: We agree—global imbalances aren’t to blame for the financial crisis. The market reallocates capital as efficiently and frequently as necessary—but it’s never neat and tidy. That’s the way free markets work.
Sensible Stories
By , The Wall Street Journal, 01/12/2010
MarketMinder's View: The PCOB is set to raise reserves by 0.5%, partly in a move to safe guard bank reserves. Expect more of the same as China’s recovery gains ground. For more, see our 1/8/2010 cover story, “Testing the Tiger.”
Market Misperceptions
By , Financial Times, 01/12/2010
MarketMinder's View:
“If the US keeps running huge deficits, sooner or later the country will start flirting with bankruptcy.” With whom, exactly, does the US file for bankruptcy? US debt levels are elevated somewhat relative to history, but we’ve had periods of higher debt with no long-term ill effects. As have many other developed nations.
Sensible Stories
By , Associated Press, 01/12/2010
MarketMinder's View: Fears the Fed would implode from its bailout efforts were proven extremely wrong. Those “toxic assets” helped the Fed to a record profit of $46.1B.
Market Misperceptions
By , The Wall Street Journal, 01/11/2010
MarketMinder's View:
Trust media to focus on December’s slim job losses and ignore November’s job gains. Fact is, jobs recovery will happen well after stock market and economic recovery. Firms will start hiring after profits start showing, not before. See today’s cover story, “Another Brick in the Wall,” for more.
Sensible Stories
By , The Globe and Mail, 01/11/2010
MarketMinder's View: Looking at GDP alone doesn’t give us the whole picture, recession-wise.
Sensible Stories
By , Kiplinger, 01/11/2010
MarketMinder's View: A great article detailing common emotional investing mistakes.
Market Misperceptions
By , The New York Times, 01/11/2010
MarketMinder's View:
Learn from Europe? Europe, overall, has significantly higher ongoing average unemployment, higher taxes, and slower economic growth. Oh, and banks are talking in earnest about abandoning the UK. Yep. Those are some great lessons to learn—on what not to do. 
Market Misperceptions
By , Bloomberg, 01/11/2010
MarketMinder's View:
Greece continues to battle real issues. Keep in mind though that the overall world is recovering, and there can and will be individual trouble spots—but they won’t derail the rest of the globe. For more, see our 12/18/2009 cover story, “Big Fat Greek Deficit,” for more. 
Sensible Stories
By , SmartMoney, 01/11/2010
MarketMinder's View: Recovery never happens in a straight line—volatility is normal in any bull market.
Sensible Stories
By , Carpe Diem, 01/11/2010
MarketMinder's View: It’s simple—the laws of supply and demand ensure we’ll likely never get to the last drop of oil. Plus, as this article states, current technology only allows us to extract a small percentage of all available reserves.
Market Misperceptions
By , The Motley Fool, 01/11/2010
MarketMinder's View:
Trying to forecast 10 years out is foolish—there are simply too many unknown variables involved to make any predictions with a smidge of accuracy. See our 12/31/2009 cover story, “Predictably Unpredictable,” for more.
Market Misperceptions
By , USA Today, 01/11/2010
MarketMinder's View:
Nope. Articles like this show bearish sentiment is well and alive—folks are worried we’re not worried enough! Add that to the wall of worry bull markets like to climb. 
Market Misperceptions
By , Bloomberg, 01/11/2010
MarketMinder's View:
The dollar slides—while stocks have risen. Historically, dollar and stock market movements have little meaningful correlation.
Sensible Stories
By , The New York Times, 01/11/2010
MarketMinder's View: The UK should take note and tread carefully, lest it places its position as a global financial center in jeopardy. See our 01/07/2010 cover story, “Bonus Brawl: Round Two,” for more.
Sensible Stories
By , Bloomberg, 01/11/2010
MarketMinder's View: China continues to lead the global economic recovery. Thus far, this recovery hasn’t been US-led and likely will continue being led by emerging markets for some time.
Sensible Stories
By , The Associated Press, 01/11/2010
MarketMinder's View: Expect the emerging markets, especially China, to continue leading the global recovery.
Market Misperceptions
By , The Street, 01/08/2010
MarketMinder's View: We agree, sort of. There’s bound to be lots of “goo” (their words, not ours), but that’s just the wall of worry stocks love to climb—present in every bull market. That’s normal, not confirmation the bears are right. Plus, in our view, tiramisu is quite tasty, goo and all. Just like a nicely positive year for stocks.
Market Misperceptions
By , The Wall Street Journal, 01/08/2010
MarketMinder's View: This is backward. As we’ve shown here repeatedly, employment is a lagging indicator. If you look for confirmation of recovery in employment and payroll data, you’ll have missed the turnaround, sometimes by many, many months. For one example, see our 11/9/09 cover story, “Unemployment’s Jab No Knockout.”
Market Misperceptions
By , The Globe and Mail, 01/08/2010
MarketMinder's View: Forecasting a decade in advance is a dangerous thing.  There are just too many unknown variables unaccounted for. Supply and demand determine stock prices, and there’s no way to know what factors impact them 10, 5, or even 3 years from now. For more, see our 12/31/2009 cover story, “Predictably Unpredictable.”
Market Misperceptions
By , The New York Times, 01/08/2010
MarketMinder's View: Before we get all excited about the magical panacea of financial reform, let’s remember that new reforms on credit card companies are already spiking borrowing rates—for everyone. For more, see our 12/21/09 cover story, “Charge It, Please!”
Sensible Stories
By , The Motley Fool, 01/08/2010
MarketMinder's View: Even during the worst of economic times, market timing never benefits an investor because “the market does not follow or walk in lockstep with the economy.” And we agree the worst possible news is that “individual investors missed the massive rally.”
Market Misperceptions
By , Los Angeles Times, 01/08/2010
MarketMinder's View: “Capping executive pay is impractical. A new 'excessive compensation' tax bracket—with the highest rate around 90% —is the best solution.” That’s what the UK thought too. They’re finding out that wasn’t such a grand plan. For more, see our 01/07/10 cover story, “Bonus Brawl: Round Two.”
Sensible Stories
By , Time, 01/08/2010
MarketMinder's View: As this article states, bank lending is down, but “the weak borrowing market just doesn't seem to be stopping the economic turnaround." Plus, corporations seem to have plenty of ways to raise funds through both debt and capital markets.
Market Misperceptions
By , The Washington Post, 01/08/2010
MarketMinder's View: Folks who believe this remember gas prices rising in the early part of the last bear. They forget when gas and oil prices fell huge in the last part, right along with stocks. Long term, there’s no meaningful correlation between the two.
Market Misperceptions
By , The Wall Street Journal, 01/08/2010
MarketMinder's View: We agree higher taxes are unpleasant. But just because some tax cuts are expiring at this point doesn’t make it a done deal. We’ll likely see some wrangling as politicians face off over the AMT-patch, as they do every year, begrudgingly passing it for another year so as not to annoy already annoyed constituents. And making the estate tax retroactive? That’s just silly. But politicians are silly
Sensible Stories
By , The New York Times, 01/08/2010
MarketMinder's View: On the path to recovery, China is now adding tools like margin and short selling to their capital market system—that can help in price discovery and lending stability overall to capital markets. Very positive.
Market Misperceptions
By , USA Today, 01/07/2010
MarketMinder's View:
What’s amazing is folks believe this after every recession, but after every recession comes recovery. The bigger the recovery, the stronger the conviction “it’s different this time.” But it’s never different this time—just the details change. Yes, some industries may never recover, but that’s part of the creative destruction inherent in capitalism. Why do we want to cling to old, outmoded industries anyway?
Sensible Stories
By , The New York Times, 01/07/2010
MarketMinder's View: The BOE has decided to keep rates unchanged as Britain’s recovery gains some footing.
Market Misperceptions
By , Bloomberg, 01/07/2010
MarketMinder's View:
Sure they can. There’s no historical evidence our current level of debt is problematic for either the economy or capital markets.
Sensible Stories
By , Bloomberg, 01/07/2010
MarketMinder's View: As many parts of the economy stabilize, job growth is likely not far behind. As we’ve said in the past, a healthy economy begets job growth, not the other way around.
Market Misperceptions
By , The Economist, 01/07/2010
MarketMinder's View:
Bubble might be the most overused word in the investing lexicon. Most times, when people say “bubble,” they mean prices have risen a lot, and that scares them. Prices are up a lot now because they were greatly depressed in a big bear market. Bull markets last longer than you think. Set aside bubble fear for now.
Sensible Stories
By , The Sydney Morning Herald, 01/07/2010
MarketMinder's View: This recovery has been and likely will continue to be led by Emerging Markets for some time.
Sensible Stories
By , The Wall Street Journal, 01/07/2010
MarketMinder's View: China raises a key interest rate—but just four basis points. The move is more symbolic than anything else—Chinese monetary policy remains very accommodative.
Sensible Stories
By , The Wall Street Journal, 01/07/2010
MarketMinder's View: We’d agree, it’s important not to neglect larger businesses—these companies spur employment opportunities and promote innovation, resulting in a much-needed economic boost.
Market Misperceptions
By , Bloomberg, 01/07/2010
MarketMinder's View:
The current recovery wasn’t US-led, and the world seems to be doing fine. The US needn’t be the best growing economy for the world overall to be fine—or even for the US to be fine.
Market Misperceptions
By , The Wall Street Journal, 01/06/2010
MarketMinder's View: Currencies will fluctuate—strong euro, weak dollar, and vice versa—and that will inevitably affect different countries’ businesses at different periods. No surprise here. But global stocks have never been correlated to the moves of a single currency for long.
Sensible Stories
By , Bloomberg, 01/06/2010
MarketMinder's View: “The evidence is building that the world is headed for a substantial recovery from the worst financial crisis since the Great Depression.” Sounds about right.
Sensible Stories
By , Investor’s Business Daily, 01/06/2010
MarketMinder's View: A move toward freer trade is a positive for the global economy.
Market Misperceptions
By , Bloomberg, 01/06/2010
MarketMinder's View:
This is an offshoot of “new normal” thinking. In fact, the details differ through each cycle but ultimately it’s never “different this time.” The world economy is poised to move forward and there will be turbulence, but the trend is up.
Sensible Stories
By , The New York Times, 01/06/2010
MarketMinder's View: Another change in a period of governmental upheaval in Japan—the government will bring in its sixth finance minister since August 2008.
Market Misperceptions
By , American Banker, 01/06/2010
MarketMinder's View:
True, interest rates probably won’t stay near current lows forever—but even a move back to more “normalized” rates won’t necessarily derail the economy or capital markets.
Sensible Stories
By , The Wall Street Journal, 01/06/2010
MarketMinder's View: Such a thing is potentially punitive to average investors and will have unintended consequences.
Market Misperceptions
By , The Washington Post, 01/06/2010
MarketMinder's View:
It’s optimistic to hope “the economy will neither shrink nor grow but bounce along the bottom”? We don’t think so. For more, see our 10/30/2009 cover story, “Treats Please.”
Sensible Stories
By , The Wall Street Journal, 01/05/2010
MarketMinder's View: Maybe peak oil is here, maybe not. But somehow we seem to keep finding more oil as technology improves.
Market Misperceptions
By , The Wall Street Journal, 01/05/2010
MarketMinder's View: Actually, if history is a guide, the US has survived quite well during periods with debt as high or higher than we’ve had now. And many other developed nations routinely have higher debt and do just fine. Keep in mind, though our debt load is somewhat elevated, the cost of servicing that debt is historically low. See our 10/27/2009 cover story, “Not Just Debt Weight,” for more.
Market Misperceptions
By , Seeking Alpha, 01/05/2010
MarketMinder's View: It’s quite normal at the end of recessions for people to believe the past problems are too big and insurmountable to overcome. The bigger the recession, the stronger this conviction. However, note, stocks don’t need a sharp economic recovery to rise. Witness 2009: Stocks began rising sharply well before economic growth was felt or showed up on an official date.
Market Misperceptions
By , Smart Money, 01/05/2010
MarketMinder's View: “I hate to say, ‘This time is different,’ but I think it may be.” Beware the idea, “this time is different.” Those are the four most dangerous words for any investor.
Market Misperceptions
By , Bloomberg, 01/05/2010
MarketMinder's View: Actually, over the last 30 years, as a whole, economic growth globally has become less variable, not more so, thanks to increasing globalization.
Sensible Stories
By , Daily Finance, 01/05/2010
MarketMinder's View: The so-called “January Effect” is just another seasonal investing myth—utterly meaningless to future stock direction. The fact that January 2009 was weak and the overall year fantastic for stocks should end this nonsense forever. But it won’t. January says no more about total year direction than March, June, or any other month.
Sensible Stories
By , BusinessWeek, 01/05/2010
MarketMinder's View: “Never have Treasuries underperformed stocks as much as in 2009, and the world's biggest bond dealers say this year may offer more of the same as the US economy recovers and unemployment abates.” Never forget: Bonds can and do lose value too, just like stocks. For more, read today’s cover story, “Bonds in the Red.”
Sensible Stories
By , Bloomberg, 01/04/2010
MarketMinder's View: Generally, the more investment options available, the better for global investors. See our 10/02/2009 column, “Cracks in the Fortune Cookie,” for more.
Market Misperceptions
By , The New York Times, 01/04/2010
MarketMinder's View:
This once again takes comparisons to the Depression too far. Nothing wrong with reining in stimulus once recovery is well underway—but both monetary and fiscal stimulus still have far to go in the meantime. See our 08/11/2009 column, “Freaky Like the Long Island Express…” for more.
Sensible Stories
By , The Wall Street Journal, 01/04/2010
MarketMinder's View: We wouldn’t necessarily say these are the best economic indicators, but to see them gaining is a signal of increasing demand—indeed a good thing for the global economy.
Market Misperceptions
By , CNN Money, 01/04/2010
MarketMinder's View:
With economic indicators, what matters are the general trends—weekly, monthly, and even quarterly numbers will often jump around. See our 10/23/2009 cover story, “Picture This,” for more.
Market Misperceptions
By , Telegraph, 01/04/2010
MarketMinder's View:
Likely not. See our 12/11/2009 cover story, “Pacific Politics,” for more.
Market Misperceptions
By , The Wall Street Journal, 01/04/2010
MarketMinder's View:
Precipice of what, exactly? Debt costs are near historic lows today, and the US has seen even higher levels of debt as a percentage of GDP.
Market Misperceptions
By , Associated Press, 01/04/2010
MarketMinder's View:
Capitalism is sometimes painful—it produces booms and busts. Over time, the booms eclipse the busts big time. The fact is, regulating capitalism’s occasional excesses will also strangulate many of its positives—innovation, incentive, and so on. See our 01/05/2009 column, “Deregulation…Regulation…What’s the Difference?” for more.
Market Misperceptions
By , The Wall Street Journal, 01/04/2010
MarketMinder's View:
Predicting stock market or economic health 10 or more years out makes little sense—there are simply too many unknown variables. See our 12/31/2009 cover story, “Predictably Unpredictable,” for more.
Market Misperceptions
By , Bloomberg, 01/04/2010
MarketMinder's View:
This is the paradox of today’s public policy toward Financials. It’s simply not possible to simultaneously punish and help banks. The government’s aimed to stabilize capital markets’ biggest US players—and that’s precisely what happened.
Market Misperceptions
By , Associated Press, 01/04/2010
MarketMinder's View:
Will these investing adages ever go away? “Sell in May and go away” didn’t help last year, and goodness knows January 2009 didn’t predict how the year would turn out either. Ignore and see our 08/28/2009 cover story, “Stay in September,” for more.
Sensible Stories
By , The Wall Street Journal, 01/04/2010
MarketMinder's View: An intriguing take on the notion of unintended consequences via overregulation.
Sensible Stories
By , Associated Press, 01/04/2010
MarketMinder's View: More evidence China is leading the world in recovery.
Sensible Stories
By , Bloomberg, 01/04/2010
MarketMinder's View: It’s true that bonds are less volatile than stocks—which creates the perception of greater safety. In reality, the long-term return on stocks is hugely better than bonds, and, yes, even bonds can have negative years.
Sensible Stories
By , The Washington Post, 01/04/2010
MarketMinder's View: Protectionism hurts more than helps—and can quickly escalate. For now, disputes remain minor. See today’s cover story, “Trading in the New Year,” for more.