Home → Fisher Investments MarketMinder Headlines → 02-2007 Archives

Sensible Stories
By , The Financial Times, 02/28/2007
MarketMinder's View: Leave it to politicians to stifle positive economic reforms.
Market Misperceptions
By , TCS Daily, 02/28/2007
MarketMinder's View: Our ridiculous story of the week...making learning about communism fun for kids with legos!
Sensible Stories
By , The Financial Times, 02/28/2007
MarketMinder's View: An example of a worthwhile initiative getting watered down by political pandering.
Market Misperceptions
By , MarketWatch, 02/28/2007
MarketMinder's View: Earnings growth in excess of 7.5% is a good thing. (Especially because projected earnings growth doesn't factor in higher earnings due to stock buy backs & M&A activity.) And for a refresher on sub-prime loans see our previous commentary "Don't Go Blind From Sub-Prime".
Market Misperceptions
By , The New York Times, 02/28/2007
MarketMinder's View: In a word: no.
Sensible Stories
By , Scientific American, 02/28/2007
MarketMinder's View: This is just as true for investors as it is for scientists—the proliferation of faulty data and false beliefs is rampant.
Sensible Stories
By , The Financial Times, 02/28/2007
MarketMinder's View: Despite inane talk of recession, inflation fears and worries over China, likely the biggest risk facing markets today is the prospect of protectionist measures and higher taxes.
Market Misperceptions
By , 02/28/2007
MarketMinder's View: We wonder if much of the financial media bothered to actually read Greenspan's "talk of recession." As a matter of fact, in proper context Uncle Alan put the probability of such an event as very low this year.
Sensible Stories
By , TCS Daily, 02/28/2007
MarketMinder's View: This will stun many, but it's true: "The wealthy are conspicuous for their lack of consumption: ‘What are three words that profile the affluent? FRUGAL FRUGAL FRUGAL'.
Sensible Stories
By , The Wall Street Journal , 02/28/2007
MarketMinder's View: A view you'll not often hear from the financial press: "In 2005 alone, foreigners increased their investment in the US by $1.4 trillion, an amount larger than the entire GDP of all but seven nations. Foreigners like our giant market, its rapid growth and, especially since the 2003 tax cuts, our higher returns on capital investment.
Market Misperceptions
By , The Wall Street Journal , 02/28/2007
MarketMinder's View: Risk aversion and calls for a flight to safety are not the signs of a bull market top.
Sensible Stories
By , The Economist, 02/27/2007
MarketMinder's View: In defense of private equity…
Market Misperceptions
By , The Financial Times, 02/27/2007
MarketMinder's View: It looks like we are headed for the 14th consecutive quarter of double-digit earnings growth. But of course this only elicits asterisks and excuses from the media.
Sensible Stories
By , Bloomberg, 02/27/2007
MarketMinder's View: Economics 101. As prices get lower, demand will grow strong enough to drive prices back up.
Market Misperceptions
By , BusinessWeek, 02/27/2007
MarketMinder's View: How long? Potentially forever. A large current account deficit does not portend disaster, nor does it ever have to be corrected. See our column entitled "The Current Account—One Less Thing to Worry About.
Market Misperceptions
By , CNN Money, 02/27/2007
MarketMinder's View: This is not how bear markets start. For a bear market, you need negative fundamentals combined with euphoric sentiment. Right now, we have neither.
Market Misperceptions
By , The Wall Street Journal , 02/27/2007
MarketMinder's View: Holding less in bad loan provisions is a reflection of consumer strength.
Market Misperceptions
By , CNN Money, 02/27/2007
MarketMinder's View: Politics aside, the evidence shows the tax cuts of 2003 led tax receipts to surge on higher economic growth.
Market Misperceptions
By , USA Today, 02/26/2007
MarketMinder's View: See our February 20th commentary "Don't Go Blind from the Subprime
Sensible Stories
By , BusinessWeek via Yahoo!, 02/26/2007
MarketMinder's View: Already showing signs of improvement, the housing market "bubble" is turning into to a bit of a misnomer to say the least.
Dueling Headlines
By , 02/26/2007
MarketMinder's View: …expectations that the economy will expand at a solid pace.
Market Misperceptions
By , Bloomberg, 02/26/2007
MarketMinder's View: Whether or not specific ETFs are successful is up to the market to decide. But to compare it to the dot-com mania of the late 1990s is just plain silly.
Sensible Stories
By , The Wall Street Journal , 02/26/2007
MarketMinder's View: One year after the Central American Free Trade Agreement, the data show that every country is enjoying new benefits, including the US. Here's to free trade!
Sensible Stories
By , 02/26/2007
MarketMinder's View: Indeed. The less governmental intervention, the better.
Sensible Stories
By , Fortune, 02/26/2007
MarketMinder's View: Our friend Meir Statman shows us how investor psychology affects our investment decision, and the subsequent performance of admired versus not admired companies.
Sensible Stories
By , The Washington Post, 02/26/2007
MarketMinder's View: Innovation is the source of U.S. economic leadership and the foundation for our competitiveness in the global economy. Government investment in research, strong intellectual property laws and efficient capital markets are among the reasons that America has for decades been best at transforming new ideas into successful businesses.
Sensible Stories
By , The Financial Times, 02/26/2007
MarketMinder's View: We can't say we're surprised to see the biggest leveraged-buyout in history last week. As long as borrowing costs remain below earnings yields, these deals continue to make sense.
Dueling Headlines
By , 02/26/2007
MarketMinder's View: …the American economy might slip into recession by the end of the year.
Market Misperceptions
By , Bloomberg, 02/26/2007
MarketMinder's View: The author is correct that we should "root for higher oil prices," but for the wrong reasons. High oil prices are good because they imply strong global economic growth.
Sensible Stories
By , The Financial Times, 02/23/2007
MarketMinder's View: Let's keep our fingers crossed that the reverberations from today's subprime market don't lead to new restrictive lending laws by regulators.
Sensible Stories
By , TCS Daily, 02/23/2007
MarketMinder's View: A level-headed view on peak oil.
Sensible Stories
By , The Wall Street Journal , 02/23/2007
MarketMinder's View: The global M&A boom still seems to be lagging in Japan.
Sensible Stories
By , The Washington Post, 02/23/2007
MarketMinder's View: Every now and then, regulators do something good by not doing anything at all. "Hedge funds and private equity are good for the market. They have given greater liquidity, they have added shareholder value and they have helped the rationalisation and innovation of companies…
Market Misperceptions
By , The Boston Globe via The International Herald Tribune, 02/23/2007
MarketMinder's View: It's probably a little premature to suggest American capitalism is fading into oblivion, no?
Sensible Stories
By , The Wall Street Journal , 02/23/2007
MarketMinder's View: New alternatives to oil bear high costs and are unlikely to be feasible in the short term.
Sensible Stories
By , The New York Times, 02/23/2007
MarketMinder's View: No matter your view on global warming, it's imperative to always employ valid and rigorous statistical methods and compile verifiable scientific data before passing judgment. The same is true for investing.
Market Misperceptions
By , Time Magazine, 02/23/2007
MarketMinder's View: Our ridiculous headline of the week. Didn't the media declare the housing "bubble" burst in 2006? We need to get these people some bubble gum, then they can pop bubbles to their heart's content.
Sensible Stories
By , The Wall Street Journal , 02/23/2007
MarketMinder's View: A contrary view on the often absurd public debate on executive compensation.
Market Misperceptions
By , The Wall Street Journal Europe , 02/23/2007
MarketMinder's View: Just for a little fun on a Friday afternoon, have a look at the goings on of Italy's government—it's like Kafka, the entire cast of Monty Python, Nietzsche and Jacques Derrida all met one day and decided to create a towering miasma of nonsense and disinformation in place of a working government. Italy's had 60 "governments" over the last 61 years...what a track record!
Sensible Stories
By , TCS Daily, 02/22/2007
MarketMinder's View: Every taxpayer should take a few minutes to see just what it is they're paying for.
Market Misperceptions
By , The Economist, 02/22/2007
MarketMinder's View: Mergermania goes divine!
Sensible Stories
By , TCS Daily, 02/22/2007
MarketMinder's View: An unconventional, but rational view of corporate taxes.
Market Misperceptions
By , CNN Money, 02/22/2007
MarketMinder's View: Let's make this really simple: Don't invest in annuities. They're archaic and expensive investment traps.
Sensible Stories
By , The Wall Street Journal , 02/22/2007
MarketMinder's View: Big capital expenditure to expand mining capacity for commodities will bring more supply online eventually…but that's still a ways off. In the meantime, demand should remain strong and excess supply relatively scarce.
Sensible Stories
By , The Economist, 02/22/2007
MarketMinder's View: On the forward-looking BOJ and the beginning of rate hikes in Japan.
Sensible Stories
By , 02/22/2007
MarketMinder's View: It should be clear by now the slowdown in housing had less effect on the US economy than many anticipated.
Market Misperceptions
By , Bloomberg, 02/22/2007
MarketMinder's View: The current-account deficit numbers didn't receive more attention because there's no need for it to reverse. The US can operate under its current structure indefinitely, inclusive of the various deficits commonly fretted over today.
Market Misperceptions
By , Reuters, 02/22/2007
MarketMinder's View: It should be no surprise that sub-prime loans are risky. But seeing these as a proxy for the entire housing industry is folly. See our past commentary "Don't Go Blind from the Subprime.
Sensible Stories
By , The Wall Street Journal , 02/22/2007
MarketMinder's View: Global economic growth continues to surge ahead of expectations, and it's bullish that investors are remaining skeptical to boot.
Market Misperceptions
By , NPR, 02/21/2007
MarketMinder's View: Before you succumb to the euphoria of all things ethanol, consider the following: ethanol accounted for only 5 billion gallons of vehicle consumption versus 140 billion for gasoline last year. Transportation, distribution and production of ethanol remain large obstacles to it becoming a mainstream energy source.
Market Misperceptions
By , The Financial Times, 02/21/2007
MarketMinder's View: Keep things in perspective. Japanese rates are still only 0.5%—a miniscule level compared to the rest of the developed world.
Market Misperceptions
By , MarketWatch, 02/21/2007
MarketMinder's View: For euphoric sentiment, think 1999 rather than 2007 where the average professional forecast is only for single digit market gains.
Sensible Stories
By , Morningstar, 02/21/2007
MarketMinder's View: See our February 8 commentary entitled "With a Little Bit of Time…
Sensible Stories
By , Reuters via International Herald Tribune, 02/21/2007
MarketMinder's View: While refusing to set targets is disappointing, the general initiative to ease regulatory burdens is a positive.
Sensible Stories
By , The Financial Times, 02/20/2007
MarketMinder's View: A minimum wage is no more than a tax on providing work: it increases the price employers have to pay to buy an hour's work…Employers will eventually pass on the cost of a higher minimum wage to consumers.
Sensible Stories
By , The Wall Street Journal , 02/20/2007
MarketMinder's View: As emerging markets grow, their demand for energy will only increase. This is another reason oil prices will likely remain high.
Sensible Stories
By , USA Today, 02/20/2007
MarketMinder's View: They got one thing right. The third year of a president's term is historically the sweetest for stocks of the four year election cycle. But the author too casually dismisses the phenomenon as a "statistical quirk."
Sensible Stories
By , Bloomberg, 02/20/2007
MarketMinder's View: Indeed. As the late Milton Friedman once said, "Inflation is always and everywhere a monetary phenomenon.
Market Misperceptions
By , Forbes, 02/20/2007
MarketMinder's View: The worrywarts continue to search for something—anything, really—to prove the economy is on the decline.
Sensible Stories
By , Time, 02/20/2007
MarketMinder's View: Despite all the scary stories that US markets are losing their competitiveness, the evidence shows otherwise. In any case, the recent trend of overseas listings can be viewed as a good thing—strong economic growth abroad is fueling increasingly transparent and sophisticated markets.
Market Misperceptions
By , Bloomberg, 02/20/2007
MarketMinder's View: Since when does the absence of bad news mean bad things are coming?
Market Misperceptions
By , The Wall Street Journal , 02/16/2007
MarketMinder's View: The return of Y2K! (All of the sudden, we're regretting using that bomb shelter we built a few years back as extra storage space…)
Sensible Stories
By , MarketWatch, 02/16/2007
MarketMinder's View: Why do people think it's a good idea to replace one scarce resource with another even more scarce resource? Corn is a product used in many goods and takes a large input cost to produce.
Sensible Stories
By , TheStreet.com, 02/16/2007
MarketMinder's View: Equity supply destruction continues on a seemingly daily basis.
Market Misperceptions
By , USA Today, 02/16/2007
MarketMinder's View: There's a joke here about reality versus theory, but we'll refrain. We don't want to hurt the economist's feelings but…they've been wrong about the strength of the US Consumer for about four years now.
Sensible Stories
By , The Wall Street Journal , 02/16/2007
MarketMinder's View: A provocative report on today's US Healthcare system.
Sensible Stories
By , SmartMoney, 02/16/2007
MarketMinder's View: While we don't necessarily agree that interest rates will rise by the end of the year, but we do believe that stocks are cheap by historical levels.
Sensible Stories
By , The Wall Street Journal , 02/16/2007
MarketMinder's View: Markets abhor wealth redistribution legislation of any kind. And the fine print shows this potentially isn't a tax decrease so much as a tax increase for "the rich" as the government defines it.
Dueling Headlines
By , The Wall Street Journal , 02/16/2007
MarketMinder's View:
Market Misperceptions
By , The Wall Street Journal , 02/16/2007
MarketMinder's View: Actually, it's still true that the biggest gainers are seeing prices rise much higher than the biggest losers are seeing declines.
Sensible Stories
By , The New York Times, 02/15/2007
MarketMinder's View: Globalization extends beyond simple outsourcing and trade…global competition is changing the corporate world and forcing new innovation and increased efficiency.
Sensible Stories
By , The Wall Street Journal , 02/15/2007
MarketMinder's View: As the OECD study shows, countries with low jobless rates not only have the most open labor markets but also the freest product markets." Hooray for Capitalism!
Sensible Stories
By , The Financial Times, 02/15/2007
MarketMinder's View: A cogent view on today's currency markets and how to interpret them.
Market Misperceptions
By , USA Today, 02/15/2007
MarketMinder's View: Arbitrary index levels and points of "recovery" say nothing about where stocks are headed.
Sensible Stories
By , 02/15/2007
MarketMinder's View: Japan's economy continues to outstrip expectations.
Sensible Stories
By , TCS Daily, 02/15/2007
MarketMinder's View: As impossible as this may sound, France could actually move further down the socialist spectrum in its upcoming election.
Sensible Stories
By , TheStreet.com, 02/15/2007
MarketMinder's View: More supply destruction leads to higher stock prices. (See our past commentary: "When Destruction is Good.") At current prices this $7.5 billion dollar buy back would reduce Caterpillar's shares outstanding by more than 15%.
Sensible Stories
By , The Wall Street Journal , 02/15/2007
MarketMinder's View: Some of the world's best educators are making their lessons available to everyone…for free. And they aren't doing it out of the kindness of their hearts—they've got an economic incentive to do so. Such things can only happen in a free, market-based society.
Market Misperceptions
By , 02/15/2007
MarketMinder's View: Someone needs to tell the Treasury Department this isn't Rome circa 100 AD. Is it really necessary for us to carry around MORE coins?
Sensible Stories
By , The Wall Street Journal , 02/15/2007
MarketMinder's View: Protectionist US tariffs against Chinese exports would be very bad for free markets. This is one to keep an eye on.
Market Misperceptions
By , The Wall Street Journal , 02/15/2007
MarketMinder's View: It's nothing short of spectacular that the media has found another way to make 10% earnings growth seem bad.
Sensible Stories
By , The Wall Street Journal , 02/15/2007
MarketMinder's View: More on our continuing theme of Globalization (See our past commentary: "It's Catching On").
Sensible Stories
By , Motley Fool via MSNBC, 02/15/2007
MarketMinder's View: Spot on! Somebody give this man a medal!
Sensible Stories
By , The Wall Street Journal , 02/15/2007
MarketMinder's View: We can't say we're surprised. The Hugo Chavez agenda is driving out foreign companies, capital and now its own talent.
Sensible Stories
By , MarketWatch, 02/14/2007
MarketMinder's View: A look at supply constraints facing the oil industry. With supply crimped and demand surging…it's a recipe for continued high energy prices.
Market Misperceptions
By , Bloomberg, 02/14/2007
MarketMinder's View: What ever happened to the good old days of frozen concentrated orange juice and pork bellies?
Market Misperceptions
By , Bloomberg, 02/14/2007
MarketMinder's View: More examples of the media snatching defeat from the jaws of victory. Apparently continued economic expansion and diminishing inflation are bad things because they "devalue" the dollar. We'd note that the markets did not agree with this dour assessment today.
Sensible Stories
By , The Wall Street Journal , 02/14/2007
MarketMinder's View: Yup. Chavez admirers in Latin America will find it mighty difficult to support their economies without free markets and vast oil wealth.
Sensible Stories
By , The Wall Street Journal , 02/14/2007
MarketMinder's View: Read this once, twice, three times…heck, print it out and pin it to your refrigerator. "Free-market capitalism is not perfect. But it remains the single most efficient and powerful system for creating wealth, reducing poverty and developing less wasteful ways of organizing output and consuming resources.
Sensible Stories
By , The Harvard Business Review, 02/14/2007
MarketMinder's View: A look at some interesting possibilities for 2007…
Sensible Stories
By , The Slate, 02/14/2007
MarketMinder's View: An interesting study in financial manias.
Sensible Stories
By , The Wall Street Journal , 02/14/2007
MarketMinder's View: It's only February and global economic growth is surprising on the upside…
Sensible Stories
By , TCS Daily, 02/14/2007
MarketMinder's View: Exposing the dangers of overregulation.
Sensible Stories
By , 02/13/2007
MarketMinder's View: This is a good sign: whether free trade increases or not, a reduction in protectionist sentiment is a positive.
Market Misperceptions
By , CNN Money, 02/13/2007
MarketMinder's View: $24,000 a second!!! Calculating the 2006 US trade deficit on a per second basis is a scare tactic. Why don't we ever see US GDP calculated per second? As we've written several times before, the trade deficit is nothing to worry about economically, and has no impact on stock performance. And then we read: "China has been trying to boost imports and cut its reliance on exports for growth." Why would they want to do that? Then they would be like America!
Market Misperceptions
By , The Wall Street Journal , 02/13/2007
MarketMinder's View: Volatility isn't a good stock market forecaster. Ignore it altogether.
Sensible Stories
By , The International Herald Tribune, 02/13/2007
MarketMinder's View: It's pleasing to note the current Nobel Prize winning idea of Micro-lending fosters both innovation and entrepreneurship within a free market system.
Sensible Stories
By , 02/13/2007
MarketMinder's View: Sending U.S. service jobs offshore will affect the country only modestly." We'd go a step further and say on balance globalization is a major long term positive for all. (See yesterday's commentary "It's Catching On.")
Sensible Stories
By , TCS Daily, 02/13/2007
MarketMinder's View: A contrary view on healthcare drug policy and the negative effects an overly risk-averse FDA can have on prices and medicine development.
Sensible Stories
By , The Wall Street Journal , 02/13/2007
MarketMinder's View: You won't see this headline plastered on many front pages. The media is more likely to tout the record outlays in January and forget to mention the record receipts as well.
Market Misperceptions
By , Bloomberg, 02/13/2007
MarketMinder's View: Although we might agree with a couple of these "lessons," they represent everything you're told in a basic finance course. We don't see any new insights that can help you know things others don't. (The only way to achieve returns in excess of the market.)
Market Misperceptions
By , BBC News, 02/12/2007
MarketMinder's View: Nothing exemplifies dour sentiment more than a doomsday vault.
Sensible Stories
By , The Economist, 02/12/2007
MarketMinder's View: In honor of the annual celebration of Eros and Agape (Valentines Day), a view on the economics of flowers…
Sensible Stories
By , The New York Times, 02/12/2007
MarketMinder's View: It's an age of accelerating change. (See our commentary: "Exponential Possibilities" for more.) Productivity growth from 2000-2005 grew even faster than it did in the late 90s!
Sensible Stories
By , 02/12/2007
MarketMinder's View: The Treasury Secretary believes market forces should determine exchange rates, and hedge funds are actually good for the economy through the diversification of risk. We would say he is right on the money.
Sensible Stories
By , The Wall Street Journal , 02/12/2007
MarketMinder's View: Innovation fuels economic prosperity. But we wonder why the author has trouble seeing that innovation requires a free economy and not an overly socialized one. He attributes it to culture, we to incentive.
Sensible Stories
By , The Financial Times, 02/12/2007
MarketMinder's View: While we don't agree with every conclusion in this article, we wholeheartedly endorse this: "To be non-average requires an investor to think and behave differently from most investors.
Market Misperceptions
By , 02/12/2007
MarketMinder's View: Jumping in and out of stocks for corrections or "downturns" isn't the answer. The only justifiable time to not be invested is during a true bear market. Otherwise, diversification is the key to managing risk for a stock portfolio.
Market Misperceptions
By , Bloomberg, 02/12/2007
MarketMinder's View: Huh? We didn't realize it was a debatable topic. Is reality matching perception?…now that's a debate worth having.
Market Misperceptions
By , Time Magazine, 02/12/2007
MarketMinder's View: True, increased regulation can be a deterrent, but that's not the whole story. IPOs haven't been as plentiful in recent years primarily because it's cheaper for firms to borrow than to sell equity. Besides, that other regions are developing and becoming more stable is a great thing—it doesn't mean the US is "losing it's edge," it means the world as a whole is becoming a more attractive and stable place to invest.
Market Misperceptions
By , The New York Times, 02/09/2007
MarketMinder's View: So long as information is publicly available, the markets will figure out what's important…not a regulatory body.
Sensible Stories
By , SmartMoney, 02/09/2007
MarketMinder's View: A solid analysis by the Chief US equities strategist at Deutsche Bank.
Market Misperceptions
By , The Financial Times, 02/09/2007
MarketMinder's View: Strengthening fiscal positions and increasing economic stability in emerging markets decreases the potential for the severity and duration of the downturns seen in the past.
Sensible Stories
By , Kudlow’s Money Politic$, 02/09/2007
MarketMinder's View: We certainly agree.
Sensible Stories
By , The International Herald Tribune, 02/09/2007
MarketMinder's View: For those who proclaimed the US is losing its ability to innovate...
Market Misperceptions
By , Fortune Magazine via CNN Money, 02/09/2007
MarketMinder's View: What many fail to appreciate is that in a free society economic prosperity and standards of living across all spectrums are correlated, not mutually exclusive.
Sensible Stories
By , Time Magazine, 02/09/2007
MarketMinder's View: Golly, you mean hedge funds weren't going to produce huge excess returns forever!?
Market Misperceptions
By , Bloomberg, 02/09/2007
MarketMinder's View: Is it really time to ease off of international investing? Equities abroad still have more attractive valuations than domestic stocks, suggesting they have much more room to grow.
Sensible Stories
By , The Wall Street Journal , 02/09/2007
MarketMinder's View: US consumer spending remains robust as retail sales exceed expectations.
Market Misperceptions
By , Fortune Magazine via CNN Money, 02/09/2007
MarketMinder's View: We're in a period reminiscent of the bubble? Really? Bubbles are characterized by extraordinary euphoric sentiment and wild valuations. Currently, valuations of stocks relative to alternatives like bonds and cash still look very attractive, and companies have some of the healthiest balance sheets in history.
Sensible Stories
By , Bloomberg, 02/09/2007
MarketMinder's View: And we finish things off with a little humor for the weekend…
Market Misperceptions
By , SmartMoney, 02/09/2007
MarketMinder's View: Corrections are normal and healthy for a bull market. It's best not to try and navigate through them. By definition, corrections are short in duration and trying to time them can cost you.
Sensible Stories
By , The Wall Street Journal , 02/09/2007
MarketMinder's View: Bubbles and booms are never actually forecast beforehand—this is vital for the investor to remember.
Sensible Stories
By , The Wall Street Journal , 02/09/2007
MarketMinder's View: The specter of increased regulation and trade prohibitions are dangerous for stocks and the economy.
Market Misperceptions
By , The Financial Times, 02/09/2007
MarketMinder's View: Our ridiculous headline of the week. Excuse us if our belief that capital markets are best left to themselves is "smug." We had no idea we were being so intolerable. The financial system works just fine without the heavy hand of increased regulation.
Sensible Stories
By , The Washington Post, 02/09/2007
MarketMinder's View: This piece sheds some light on the alternative minimum tax debate.
Sensible Stories
By , TCS Daily, 02/09/2007
MarketMinder's View: Whatever your opinion on global warming, there's an important lesson here. One must check ideology at the door—ideology only creates biases and cognitive errors when trying to make sound investment decisions. Long live the spirit of scientific skepticism.
Market Misperceptions
By , The Wall Street Journal , 02/08/2007
MarketMinder's View: There's nothing magical about earnings above 10% as it relates to stock market performance. Just about any way you slice it, corporate earnings continue to be strong.
Market Misperceptions
By , MarketWatch, 02/08/2007
MarketMinder's View: Why is it that everyone seems to believe we're heading for the apocalypse and it's just a matter of when and where? Isn't it even remotely possible that the future could be pretty good? Just asking.
Sensible Stories
By , Bloomberg, 02/08/2007
MarketMinder's View: Globalization has muted the effects of an inverted yield curve in a single country. Banks and financiers now have easier access to lower rates across the globe.
Market Misperceptions
By , The Wall Street Journal , 02/08/2007
MarketMinder's View: The absolute definition of dour sentiment. Today, people are living longer than ever, healthcare and medicine are bounding forward at expanding rates, capital is cheap, stocks are cheap, and the economy is robust. Apparently this is called "the downside of a longer life." Sheesh.
Sensible Stories
By , The Wall Street Journal , 02/08/2007
MarketMinder's View: Instead of relying on government regulations and rules, why not listen to market demand?
Sensible Stories
By , MarketWatch, 02/08/2007
MarketMinder's View: As long as earnings yields remain above bond yields, robust M&A activity should continue.
Dueling Headlines
By , SmartMoney, 02/08/2007
MarketMinder's View:
Sensible Stories
By , The Wall Street Journal , 02/08/2007
MarketMinder's View: Reason # 316 why commodity prices will remain high in the near to medium term. (Alright, we made that up. We don't really have 316 of them. But there are a lot of reasons to believe commodity prices will remain high.)
Sensible Stories
By , Bloomberg, 02/08/2007
MarketMinder's View: The article is actually about the economic perils of enacting trade and labor laws to achieve "equality." A different way to say that is: capitalism is better than mercantilism.
Sensible Stories
By , 02/08/2007
MarketMinder's View: This is one of the most underappreciated features of today's strong economy: technological advances are fueling huge leaps forward in efficiency and productivity. Among other things, this is a boon for higher earnings, standards of living, and low inflation.
Sensible Stories
By , The Wall Street Journal , 02/08/2007
MarketMinder's View: Reminder: commercial real estate is almost half of total real estate in the US…and it's booming.
Sensible Stories
By , The Wall Street Journal , 02/07/2007
MarketMinder's View: Making up 80% of the US economy, a strong service sector is confirmatory of a thriving economy and stock prices.
Sensible Stories
By , The Financial Times, 02/07/2007
MarketMinder's View: Property rights are fundamental to capitalism and a healthy economy. Their absence is a risk factor in emerging markets rarely mentioned in the press.
Market Misperceptions
By , Bloomberg, 02/07/2007
MarketMinder's View: Some of larger companies may have more attractive valuations, but that doesn't necessarily mean they will outperform. And, it's not just the "big guys" who've diversified revenue streams globally. The dramatic rise in globalization has given many small companies the same access to foreign income.
Market Misperceptions
By , CNN Money, 02/07/2007
MarketMinder's View: The conclusion that higher PEs as a result of slower earnings growth will be bad for stocks is a common misconception. PEs tell you nothing about where stocks are heading.
Sensible Stories
By , The Motley Fool, 02/07/2007
MarketMinder's View: Some excellent points not only on purchasing power, but on how to ignore media scare tactics altogether.
Market Misperceptions
By , The Economist, 02/07/2007
MarketMinder's View: Let burger-nomics be your inflation guide!
Sensible Stories
By , NPR, 02/07/2007
MarketMinder's View: First, a look at the commonly cited fear of rising income inequality. Second, a cogent editorial to debunk it.
Sensible Stories
By , The Washington Post, 02/07/2007
MarketMinder's View: Fearing a "weak" dollar and free trade will crumble the US economy, no one noticed we are in the midst of a trade boom. Let's hope politicians don't ruin a good thing.
Sensible Stories
By , The Wall Street Journal , 02/06/2007
MarketMinder's View: With stocks cheap and borrowing costs low, stocks are undervalued relative to bonds and cash. Couple that will low inflation and increasing globalization and you've got a recipe for higher stock prices.
Market Misperceptions
By , The Wall Street Journal , 02/06/2007
MarketMinder's View: Worrying over rising stock prices? Simply absurd.
Sensible Stories
By , The Financial Times, 02/06/2007
MarketMinder's View: Less government regulation and control is good for the global markets.
Sensible Stories
By , The Wall Street Journal , 02/06/2007
MarketMinder's View: Four years after the bear market's end, many are still searching high and low for scapegoats.
Market Misperceptions
By , The Washington Post, 02/06/2007
MarketMinder's View: The real danger is not seeking equity exposure properly through global diversification.
Market Misperceptions
By , The Wall Street Journal , 02/06/2007
MarketMinder's View: Even a broken clock is right twice a day. You can be certain a 100-year old investment theory is priced into the market.
Market Misperceptions
By , USA Today, 02/06/2007
MarketMinder's View: Wrong. As of today, earnings for the S&P 500 appear set to grow above 10%. But regardless of how you slice it the majority of all companies have beat expectations… reflective of a very healthy corporate earnings environment.
Sensible Stories
By , Bloomberg, 02/06/2007
MarketMinder's View: With services now representing majority of the U.S. economy, this is a positive growth signal.
Market Misperceptions
By , NPR, 02/03/2007
MarketMinder's View: Even this supposed "easy victory" was tough for Democrats. The idea that large, meaningful legislation will be passed in the next two years is absurd.
Sensible Stories
By , The Wall Street Journal , 02/03/2007
MarketMinder's View: A "gas OPEC" would probably mean higher natural gas prices are likely here to stay.
Sensible Stories
By , 02/03/2007
MarketMinder's View: A great example of emerging market growth fueling profits for U.S companies.
Market Misperceptions
By , 02/03/2007
MarketMinder's View: Why are we still talking about this?
Sensible Stories
By , The Wall Street Journal , 02/03/2007
MarketMinder's View: Lower returns and higher risk? Yet another reason why stocks are almost always a better place for your money given a long time horizon.
Sensible Stories
By , The Financial Times, 02/03/2007
MarketMinder's View: Most investors don't appreciate that the pace of innovation within the global economy is accelerating—there will be MORE opportunities for investment in the future, not fewer. You can find examples of tremendous innovation like this almost everyday.
Dueling Headlines
By , MarketWatch, 02/03/2007
MarketMinder's View:
Sensible Stories
By , NPR, 02/03/2007
MarketMinder's View: CEO pay should be determined by the market, not government.
Sensible Stories
By , The Washington Post , 02/03/2007
MarketMinder's View: Limiting globalization is a bad thing.
Market Misperceptions
By , The New York Times, 02/03/2007
MarketMinder's View: Rules for reporting don't matter. So long as the information is made publicly available the markets will figure out what matters, not the SEC.
Sensible Stories
By , The Wall Street Journal , 02/02/2007
MarketMinder's View: Fulfilling the President's mission to increase ethanol use in gasoline will pose many new challenges.
Sensible Stories
By , The Wall Street Journal , 02/02/2007
MarketMinder's View: We couldn't say it better ourselves. See yesterday's commentary, "Still in Flight" for more.
Sensible Stories
By , CNN Money, 02/02/2007
MarketMinder's View: Positive data keeps rolling in…Americans continue to make more and spend more, both signs of a robust economy.
Market Misperceptions
By , Associated Press via The Washington Post , 02/02/2007
MarketMinder's View: See our commentary "Reality Check: The Profligate Consumer" for reasons why this should ignored.
Market Misperceptions
By , USA Today, 02/02/2007
MarketMinder's View: We've also heard the third Thursday in February of years ending in 7 tells you were the market is headed.
Market Misperceptions
By , The New York Times, 02/02/2007
MarketMinder's View: There's nothing in here that you haven't heard of already. Remember, surprises move markets.
Sensible Stories
By , The New York Times, 02/01/2007
MarketMinder's View: Capitalism and innovation go hand-in-hand.
Sensible Stories
By , TheStreet.com, 02/01/2007
MarketMinder's View: GDP comes in ahead of expectations again as fears of an economic slowdown continue to be overblown. This is what bull markets are made of—negative sentiment with positive fundamentals.
Sensible Stories
By , The New Yorker, 02/01/2007
MarketMinder's View: Two articles debunking the talk of declining US market competitiveness.
Sensible Stories
By , The Wall Street Journal , 02/01/2007
MarketMinder's View: Who the backlash on CEO pay really ends up hurting.
Sensible Stories
By , The Economist, 02/01/2007
MarketMinder's View: For all the worry a year ago, Big Ben is doing just fine.
Market Misperceptions
By , Bloomberg, 02/01/2007
MarketMinder's View: Given that he only was elected 5 months ago, we'd say it's a little early to declare the failure of Japan's new prime minister.