Home → Fisher Investments MarketMinder Headlines → 02-2009 Archives

Sensible Stories
By , The Financial Times , 02/27/2009
MarketMinder's View: The wall of global stimulus continues. For more see our 2/2/2009 cover story, “Building the Wall of Worry.”
Market Misperceptions
By , The Telegraph, 02/27/2009
MarketMinder's View:
So we must be on our way to depression right? Wrong.  GDP growth has fallen a lot less than during The Great Depression, and that’s a much more important statistic to look at than the potential default rate of non-investment grade companies.
Market Misperceptions
By , Bloomberg, 02/27/2009
MarketMinder's View: Most of the revisions were due to lower inventory builds than originally reported, which may actually prove to be a positive looking forward.
Market Misperceptions
By , CNN Money, 02/27/2009
MarketMinder's View: It’s wrong to fear a big budget deficit. Historically, we’ve seen above-average stock returns following big budget deficits.
Market Misperceptions
By , The Wall Street Journal, 02/27/2009
MarketMinder's View: And rightly so. However, the budget process is long and drawn out and won’t be finalized until September. This bill will morph considerably before then.
Sensible Stories
By , The Kiplinger Letter, 02/27/2009
MarketMinder's View: Agreed. We see no benefit in the “Buy American” mantra—in our view, the less restriction on trade, the better.
Sensible Stories
By , The Wall Street Journal, 02/27/2009
MarketMinder's View: Our motivation to invest in green energy shouldn’t come from carbon taxes. It’s repackaged protectionism.
Market Misperceptions
By , The Wall Street Journal, 02/27/2009
MarketMinder's View: Another negative economic article plaguing the headlines. Might be hard to swallow, but doesn’t mean stocks won’t rise in light of it.
Sensible Stories
By , The Wall Street Journal, 02/27/2009
MarketMinder's View: Well, this is hardly shocking. Increased government involvement generally isn’t much of a profit generator.
Sensible Stories
By , Seeking Alpha, 02/27/2009
MarketMinder's View: We’d certainly agree investor sentiment is having significant impact on the markets.
Market Misperceptions
By , Investor’s Business Daily, 02/27/2009
MarketMinder's View:
This article makes so many good points . . . until the end. Every recession has eventually ended. And the next recovery spawns new innovation that spurs greater productivity and greater wealth in aggregate. Always been so. To think that can’t happen now is to assume humanity is done innovating, forever. That can’t possibly be.
Market Misperceptions
By , Bloomberg, 02/27/2009
MarketMinder's View: Citi’s woes have been reflected in its extremely depressed stock price for some time. There’s nothing new here portending market doom.
Market Misperceptions
By , The Wall Street Journal, 02/26/2009
MarketMinder's View: If you were really tight on money, would a massage actually be included in your budget? Let’s call this what it is—a good deal—and stop attributing everything to the bad economy.
Market Misperceptions
By , Bloomberg, 02/26/2009
MarketMinder's View: Didn’t Bernanke learn from SEC’s November actions that short selling does nothing to help the markets or economy? See our 9/19/2008 cover story, “A Shot in the Dark,” for more.
Market Misperceptions
By , The Washington Post, 02/26/2009
MarketMinder's View: Unfortunately, threats exist in good times and bad. Staying vigilant despite what’s happening with GDP or employment is probably the best course of action.
Sensible Stories
By , Financial Times, 02/26/2009
MarketMinder's View: This article deals purely with generating income but the same rules of diversification apply in building any portfolio for the long term.
Market Misperceptions
By , The Telegraph, 02/26/2009
MarketMinder's View:
So even when the economy does turn, which it inevitably will, we still won’t have cause for optimism? This is overly dour.
Market Misperceptions
By , Associated Press, 02/26/2009
MarketMinder's View: Expect bad economic news to continue, but remember: Markets recover well before economic data do.
Sensible Stories
By , The New York Times, 02/26/2009
MarketMinder's View: A good, rational look at what a financial adviser should and shouldn’t be.
Sensible Stories
By , The Wall Street Journal, 02/26/2009
MarketMinder's View: Fraudsters commonly come out of the woodwork near the bear bottoms. Don’t be surprised if we see more. See our 12/16/2008 cover story, “To Err Is…” for more.
Market Misperceptions
By , The Wall Street Journal, 02/26/2009
MarketMinder's View:
History shows tax increases don’t help the economy—and this Robin Hood-esque plan is akin to taxing the rich and giving to the poor.
Sensible Stories
By , Telegraph, 02/26/2009
MarketMinder's View: We agree a bad bank can be an appropriate tactic, if done right. See our 1/29/09 cover story “So Bad, It’s Good,” for more.
Sensible Stories
By , The Globe and Mail, 02/26/2009
MarketMinder's View: The IMF bumbles and stumbles just as governments do, but there’s no denying the stimulus aimed at getting the global economy back on its feet is massive.
Sensible Stories
By , The Wall Street Journal, 02/26/2009
MarketMinder's View: A cogent explanation about how Mr. Geithner can possibly make a “bad bank” work, and a great explanation of the deleterious effects of mark-to-market accounting.
Market Misperceptions
By , The Wall Street Journal, 02/26/2009
MarketMinder's View: Global stimulus is more massive than ever before in history, and it’s unlikely Eastern Europe is on an economic reversal trend. See our 02/24/2009 cover story, “Eastern European Finger Trap,” for more.
Market Misperceptions
By , The Wall Street Journal, 02/26/2009
MarketMinder's View: This article is predicated on the belief that people smoke more during recessionary periods—utterly preposterous. Also, history shows dividends prove nothing about a stock’s performance over time.
Market Misperceptions
By , CNBC, 02/25/2009
MarketMinder's View:
So we’re about to experience another ‘crisis’ but we don’t know what it is yet? Sounds to us like scaremongering an already nervous audience.
Sensible Stories
By , International Business Times, 02/25/2009
MarketMinder's View: As the G20 Summit approaches, many hope the preservation of free trade remains directly intertwined with discussions of boosting economic strength.
Market Misperceptions
By , Time, 02/25/2009
MarketMinder's View: “They agreed that nobody should be talking about bankruptcy.” On the contrary! At this juncture, Chapter 11 bankruptcy should definitely be on the table as a potential path to recovery for automakers.
Sensible Stories
By , Café Hayek, 02/25/2009
MarketMinder's View: Exactly—anyone who tells you to fear the trade deficit is telling you more about what they don’t know than what they do.
Sensible Stories
By , The Wall Street Journal, 02/25/2009
MarketMinder's View: Hold the phones, alert the elders—government money isn’t going to be spent wisely?! We’re shocked.
Sensible Stories
By , SmartMoney, 02/25/2009
MarketMinder's View: We generally agree. Whether or not markets have hit their bottoms, now is the time to be invested to take advantage of the coming market recovery.
Market Misperceptions
By , The Wall Street Journal, 02/25/2009
MarketMinder's View: Expect negative economic data to continue to dominate news, but remember—the weak economy can’t hold down a market recovery.
Sensible Stories
By , MarketWatch, 02/25/2009
MarketMinder's View: “Optimism is necessary to identify winners in the new world and find the franchises of tomorrow.” Things are scary now, but companies and the economy will likely be strengthened by this episode.
Sensible Stories
By , The Wall Street Journal, 02/25/2009
MarketMinder's View: An interesting look at flawed aggregate earnings calculations for companies in the S&P 500.
Market Misperceptions
By , The Washington Post, 02/25/2009
MarketMinder's View: A ridiculous look at perceived effects of the market downturn—men and women alike are struggling to date because they can’t afford expensive food and drink? What’s wrong with a good old-fashioned movie?
Sensible Stories
By , CNNMoney, 02/25/2009
MarketMinder's View: Contrary to popular belief, the market hasn’t simply moved sideways over the last 10 years. And a slightly longer-term view shows equities have done considerably better than alternatives.
Market Misperceptions
By , Fortune, 02/25/2009
MarketMinder's View: While we agree with some of the potential market scenarios depicted herein, others paint an unnecessary picture of gloom for the foreseeable future. There’s no reason the market can’t begin its recovery in the face of dire economic news.
Sensible Stories
By , The Wall Street Journal, 02/25/2009
MarketMinder's View: “Those who venture into today's stock market are indeed buying good values.” That’s for sure!
Market Misperceptions
By , Reuters, 02/24/2009
MarketMinder's View: Even if the economic malaise extends into next year, the stock market will move higher well in advance.
Sensible Stories
By , thestreet.com, 02/24/2009
MarketMinder's View: The US today is not the same as Japan’s last 20 years.
Market Misperceptions
By , The Wall Street Journal, 02/24/2009
MarketMinder's View: The fed’s fuzzy antics are undoubtedly contributing to continuing investor uncertainty.
Sensible Stories
By , The Wall Street Journal, 02/24/2009
MarketMinder's View: Simply put, the more folks are incentivized to work, the more productive they will be.
Sensible Stories
By , Bankstocks, 02/24/2009
MarketMinder's View: Dour economic forecasts will undoubtedly persist well past their useful lives.
Market Misperceptions
By , International Business Times, 02/24/2009
MarketMinder's View: The US is nothing like Japan in the ‘90s—or Sweden in the ‘90s, for that matter. While a few banks might be better off nationalized, wholesale nationalization would be a mistake. See our cover story, “Bad News Banks,” (2/20/2009) for more.
Sensible Stories
By , Real Clear Markets, 02/24/2009
MarketMinder's View: “Saving does not mean not spending. It does not mean hoarding. It means not spending for purposes of consumption. Abstaining from spending for consumption makes possible equivalent spending for production.” See our cover story, “Sunk by Saving,” (1/7/2009) for more.
Sensible Stories
By , The Street, 02/24/2009
MarketMinder's View: Perhaps banks need clarity and certainty above all to recover—but it doesn’t look like that’ll happen anytime soon.
Sensible Stories
By , The Wall Street Journal, 02/24/2009
MarketMinder's View: Automakers, like all companies, need the flexibility to adjust to market conditions—not mandates on the types or quantity of vehicles they produce.
Sensible Stories
By , Telegraph, 02/24/2009
MarketMinder's View: Negative news is good news in this case. Don’t get caught up in all the negativity—markets will recover, they always do…and it’s not going to take a lifetime!
Sensible Stories
By , The Wall Street Journal, 02/24/2009
MarketMinder's View: The fed’s fuzzy antics are undoubtedly contributing to continuing investor uncertainty.
Market Misperceptions
By , USA Today, 02/24/2009
MarketMinder's View: “The number of illegal immigrants in the USA fell for the first time in at least four years, as the nation’s tough economy discourages people from sneaking into the USA.” A classic case of mistaking correlation for causation. Ignore.
Market Misperceptions
By , MarketWatch, 02/24/2009
MarketMinder's View: Secular bulls and bears are bogus. Fact is, the stock market rises over time with a continuous cycle of bull and bear markets along the way.
Dueling Headlines
By , The Wall Street Journal, 02/24/2009
MarketMinder's View: Bernanke isn’t prognosticating on exactly when the recession will end. We aren’t either. But we do know the market will recover well before the economy does.
Sensible Stories
By , Kiplinger, 02/24/2009
MarketMinder's View: Recoveries from bear markets often mimic the pace of the decline, which means the bounce following this steep bear could be particularly strong.
Market Misperceptions
By , Real Clear Markets, 02/24/2009
MarketMinder's View:
Fortunately a weakening economy doesn’t mean it’s a bad time to invest. The markets always turns first.
Sensible Stories
By , The Washington Post, 02/24/2009
MarketMinder's View: There are many, many banks whose business practices are perfectly sound.
Market Misperceptions
By , Telegraph, 02/24/2009
MarketMinder's View: These are merely anecdotal indicators combined in a sensationalist picture of the state of the global economy.
Sensible Stories
By , The Wall Street Journal, 02/24/2009
MarketMinder's View: A great argument highlighting why bank nationalization is not in our nation’s best interest.
Market Misperceptions
By , Associated Press, 02/23/2009
MarketMinder's View:
Folks hoping to see unemployment dropping as a signal the recession is over will be disappointed. Unemployment typically rises even after an economic recovery is underway.
Sensible Stories
By , RealClearMarkets, 02/23/2009
MarketMinder's View: Government interference and consumer sentiment can’t keep the economy and the markets down forever.
Market Misperceptions
By , The Washington Post, 02/23/2009
MarketMinder's View:
By definition, government stimulus spending will 1) not be perfect and 2) not do what people expect. Expectations otherwise are silly. But even if the government spends it all on $500 hammers, that eventually helps the economy, and the markets price that in ahead of time. See our 01/14/2009 cover story, “Patience With Punches,” for more. 
Market Misperceptions
By , The Wall Street Journal, 02/23/2009
MarketMinder's View:
Like anything traded in an open market, gold is volatile. But its long-term average lags stocks, bonds—it even lags the average rate of inflation!
Sensible Stories
By , The Wall Street Journal, 02/23/2009
MarketMinder's View: Government can’t run banks as efficiently as the private sector. Why not? Because political agenda will always interfere.
Market Misperceptions
By , Reuters, 02/23/2009
MarketMinder's View:
The banking sector has been a “detriment to society”? Hundreds of millions of Americans who’ve used loans to buy cars, pay for college educations, buy homes, heck, even pay for groceries speedily and conveniently with a credit card beg to differ.
Market Misperceptions
By , Financial Times, 02/23/2009
MarketMinder's View:
Besides the fact that running a fiscal deficit isn’t necessarily a constraint on a successful economy, raising taxes certainly isn’t the way to reduce it, or to get the economy moving again.
Sensible Stories
By , NPR, 02/23/2009
MarketMinder's View: Bear markets don’t create fraudsters, but they are typically uncovered in a bear market’s depths.
Sensible Stories
By , Associated Press, 02/23/2009
MarketMinder's View: And how. At this point, the best way to go about it is through Chapter 11 bankruptcy.
Sensible Stories
By , The Wall Street Journal, 02/23/2009
MarketMinder's View: Looks like Twinkies, Ding Dongs, and Ho Ho’s could teach GM, Ford, and Chrysler some lessons about the benefits of Chapter 11 bankruptcy.
Sensible Stories
By , The Street , 02/23/2009
MarketMinder's View: No kidding. The Dow is a price-weighted index and, therefore, inherently poorly constructed and misleading.
Sensible Stories
By , SmartMoney, 02/20/2009
MarketMinder's View: “In capitalism, man is an end to himself not the means to the ends of a politician’s whim. To that end, what’s morally right is to protect individual property rights and let the free market work…”. Exactly.
Sensible Stories
By , Financial Times, 02/20/2009
MarketMinder's View: Stimulus programs should focus on projects that will provide long term economic benefit, rather than just sending people out to work.
Market Misperceptions
By , The Wall Street Journal, 02/20/2009
MarketMinder's View: One month’s data doesn’t make a trend. However, it’s worth noting severe deflation has yet to materialize, as many touted.
Market Misperceptions
By , MarketWatch, 02/20/2009
MarketMinder's View: As we’ve said before, financial scandals are typical in bear markets and we probably haven’t seen the last of them in this cycle. Expect more. See our 12/16/2008 cover story, “To Err Is…” for more.
Sensible Stories
By , Los Angeles Times, 02/20/2009
MarketMinder's View: Chapter 11 bankruptcy is a much better solution than giving more money to troubled automakers.
Market Misperceptions
By , International Herald Tribune, 02/20/2009
MarketMinder's View: “To appreciate the problem, you need to know that this isn't your father's recession. It's your grandfather's, or maybe even your great-great-grandfather's.” Comparisons to the Great Depression are exaggerated. Ignore.
Sensible Stories
By , The New York Times, 02/20/2009
MarketMinder's View: Despite news of a weak global economy, China is on a shopping spree.
Market Misperceptions
By , The Independent, 02/20/2009
MarketMinder's View:
The notion that gold is a “safe” investment is just wrong. Unless of course a return to parity after 30 years is the yardstick to describe “safe.”
Sensible Stories
By , The Wall Street Journal, 02/20/2009
MarketMinder's View: An important perspective on keeping trade open and dynamic through turbulent economic times.
Sensible Stories
By , 02/19/2009
MarketMinder's View: If 1999 was a bubble—this is the reverse bubble. Everyone is bearish, everyone agrees the market is going down from here and anyone who is the least bit optimistic is a raving loon. We liked being the raving loon and being skeptical of technology stocks in early 2000 and the collective pessimism today is inherently good, not bad, for stocks going forward.
Sensible Stories
By , The New York Times, 02/19/2009
MarketMinder's View: The wall of global monetary stimulus continues.
Market Misperceptions
By , The Raw Story, 02/19/2009
MarketMinder's View:
The joke is economists have predicted 11 of the last 3 recessions. What’s the record for former Fed Heads? Probably even worse.
Market Misperceptions
By , Bloomberg, 02/19/2009
MarketMinder's View: Don’t forget—unemployment will likely continue rising even after market and economic recoveries get underway.
Sensible Stories
By , The Wall Street Journal, 02/19/2009
MarketMinder's View: Let California’s troubles be a lesson to the nation—being anti-employer means being anti-employee. And anti-homeowner. And anti-everyone.
Market Misperceptions
By , MSN Money, 02/19/2009
MarketMinder's View: Here’s the truth: Near bear market bottoms, folks like to say “buy and hold” is done, that all CEOs are crooks, the market will never recover, and the economy is done . . . forever. Just because someone says it doesn’t make it true.
Market Misperceptions
By , Newsweek, 02/19/2009
MarketMinder's View: Yet another comparison of current US woes to Japan’s in the 1990s—but unlike Japan, the US took swift and decisive action. See our 12/19/2008 cover story, “America’s Lost Decade,” for more.
Market Misperceptions
By , Fortune, 02/19/2009
MarketMinder's View: Why bring them back at all? Why can’t we allow them to restructure under Chapter 11, and then see if the market finds the firms and their products viable? It worked for the airlines, and it can work here.
Market Misperceptions
By , Los Angeles Times, 02/19/2009
MarketMinder's View:
Can you think of anything worse than having the same people run banks as you have running your local DMV or Post Office?
Sensible Stories
By , Reuters, 02/19/2009
MarketMinder's View: The Fed has many more tools in its arsenal—and will make use of them as needed.
Sensible Stories
By , Forbes.com, 02/18/2009
MarketMinder's View: Since as long as we can remember governments have made bad policy decisions but they’ve never yet put an end to economic growth.
Sensible Stories
By , The Wall Street Journal, 02/18/2009
MarketMinder's View: While we don’t necessarily agree continued deficits are worrisome, this provides interesting context on the history of US debt.
Sensible Stories
By , Bloomberg, 02/18/2009
MarketMinder's View: Amid the bad news yesterday, this Treasury report was widely overlooked—tensions in the credit market continue to ease.
Market Misperceptions
By , International Herald Tribune, 02/18/2009
MarketMinder's View: Some developing nations like China will hold up well and continue to grow (albeit slower than before), while others will be severely impacted amid the weak economy. Either way, stocks will move higher well ahead of economic reports. For more, see our cover story, “Building the Wall of Worry,” (2/2/2009).
Sensible Stories
By , TheStreet.com, 02/18/2009
MarketMinder's View: We certainly don’t agree with everything said here but it’s true that the markets won’t move in line with the economy and remember Warren Buffett’s adage – ‘Be greedy when others are fearful’
Market Misperceptions
By , The Wall Street Journal, 02/18/2009
MarketMinder's View: We maintain Chapter 11 bankruptcy is the best option for embattled US automakers.
Market Misperceptions
By , Times Online, 02/18/2009
MarketMinder's View:
Classic media spin when inflation figures come in “stronger” than expected.
Sensible Stories
By , Seeking Alpha, 02/18/2009
MarketMinder's View: The doom and gloom view is the consensus at the moment but this makes it a great time to buy stocks.
Market Misperceptions
By , The Wall Street Journal, 02/18/2009
MarketMinder's View: Financial scandals are typical features of bear markets and economic downturns, but tell us little about where the markets will head from here.
Market Misperceptions
By , BusinessWeek, 02/18/2009
MarketMinder's View: It’s possible the market will test new lows this week—but this is no reason to assume it will stay low, as stock markets tend to rise in the face of dour economic news. For more, see our cover story, “Pent Up on Pins and Needles,” (2/18/2009).
Market Misperceptions
By , Reuters, 02/18/2009
MarketMinder's View: This news comes as no surprise to investors, or the market for that matter.
Sensible Stories
By , BBC News, 02/18/2009
MarketMinder's View: We continue to see a global wall of monetary and fiscal stimulus.
Market Misperceptions
By , The Wall Street Journal, 02/17/2009
MarketMinder's View: The late stages of bear markets are typically marked by increased volatility. And it’s very typical for bears to double-or even triple-bottom.
Sensible Stories
By , CNNMoney.com, 02/17/2009
MarketMinder's View: The stimulus bill gets signed today. Get ready for people to gripe it’s “not working” and it’s the “wrong stimulus.” Regardless, unemployment will likely to continue to rise in the near-term—historically, unemployment has spiked after both the market and economic recoveries have begun.
Sensible Stories
By , Reuters, 02/17/2009
MarketMinder's View: Change we can believe in! Unfortunately, it looks like the government will still have a heavy hand in directing the Big Three. As if they don’t have enough troubles already . . .
Market Misperceptions
By , Bloomberg, 02/17/2009
MarketMinder's View:
Of course there’s no such thing as perfect stimulus. But it’s wrong to assume deficit spending is inherently bad or puts us into deeper trouble. Read our cover story, “On Borrowed Dime,” 2/5/2009 for more.
Sensible Stories
By , Chicago Tribune, 02/17/2009
MarketMinder's View: Exactly—we’ve seen recessionary times in the past and the market always recovers. All we need is a bit of patience.
Sensible Stories
By , Forbes.com, 02/17/2009
MarketMinder's View: Blaming Bankers is en vogue at the moment, but governments should be looking at the impact of their decisions too.
Market Misperceptions
By , RealClearmarkets, 02/17/2009
MarketMinder's View:
It’s no surprise to see absolute return strategies being touted at the moment but it’s disingenuous to present an argument against relative returns by highlighting the bad years. Equities have good years too remember. Lots of them.
Market Misperceptions
By , Chicago Tribune , 02/17/2009
MarketMinder's View: “It's time for the media—the newspapers, the TV talking heads, the rage-fueled radio pundits—to fully exert their First Amendment rights to terrify.” It would be nice to live in a world where the media is obligated to rationally dispense the truth not fuel heated emotions.
Sensible Stories
By , The Washington Post, 02/17/2009
MarketMinder's View: Lest we forget the perils of protectionism.
Market Misperceptions
By , Kiplinger.com, 02/16/2009
MarketMinder's View:
“Along with the banking crisis, the trade deficit is a primary cause of the U.S. recession" – Nonsense, if trade deficits cause recessions, what excuse is there for Germany and Japan?
Sensible Stories
By , The Wall Street Journal, 02/16/2009
MarketMinder's View: Hauling bankers in front of the house serves no-one’s interest save the politicians seeking a stage on which to perform.
Sensible Stories
By , The New York Times, 02/13/2009
MarketMinder's View: A breakdown of the most recent stimulus plan’s perks for individuals.
Market Misperceptions
By , Associated Press, 02/13/2009
MarketMinder's View:
Credit default swaps aren’t to blame for the turmoil in financial markets. In fact, they’ve become an important part of today’s credit markets. See our 1/30/2009 cover story, “A CDS Witch Hunt,” for more.
Market Misperceptions
By , Financial Times, 02/13/2009
MarketMinder's View:
This idea wouldn’t have prevented the last bubble.
Market Misperceptions
By , The New York Times, 02/13/2009
MarketMinder's View:
There’s no way to know whether this stimulus is too much or too little until later—when we actually see the effects of the plan.
Market Misperceptions
By , The New York Times, 02/13/2009
MarketMinder's View:
Yet another warning about an American “Lost Decade” that simply isn’t true. The US response to the current tumult has been huge, fast, and part of a global effort, unlike Japan in the ‘90s. See our 12/19/2008 cover story, “America’s Lost Decade,” for more.
Sensible Stories
By , CNNMoney, 02/13/2009
MarketMinder's View: Whether banks wanted the cash or not, TARP isn’t (and wasn’t ever) free money. See our 01/22/2009 cover story, “Strings Attached,” for more.
Market Misperceptions
By , Financial Times, 02/13/2009
MarketMinder's View:
We’re not against creating jobs but it simply wouldn’t be achievable through “Buy American” policies.
Sensible Stories
By , RealClearMarkets, 02/13/2009
MarketMinder's View: “Those who predict capitalism’s demise have to contend with one important historical fact: capitalism has an almost unlimited capacity to reinvent itself.” Exactly.
Sensible Stories
By , The Wall Street Journal, 02/13/2009
MarketMinder's View: “Moving the world away from free choice and restoring the power of Big Brother is not the right answer to our current problems.” Amen.
Sensible Stories
By , Bloomberg, 02/13/2009
MarketMinder's View: Today, the G-7 countries account for just over half the world economy. That’s down from almost 70% twenty years ago. Further proof the world is becoming increasingly global.
Market Misperceptions
By , Seeking Alpha, 02/13/2009
MarketMinder's View:
In a word, no.
Market Misperceptions
By , Newsweek, 02/13/2009
MarketMinder's View:
Wrong. Tax cuts get money into the economy much more quickly than long-term infrastructure projects, which can take years to even start. But the proposed stimulus bill isn’t just about tax cuts. It’s massive and includes a ton of mid- and long-term spending as well.
Sensible Stories
By , The Wall Street Journal, 02/12/2009
MarketMinder's View: It’s no surprise to find politicians blurring myth and reality. Lending has been up, not down.
Sensible Stories
By , Bloomberg, 02/12/2009
MarketMinder's View: Fodder for a Saturday Night Live skit indeed. Those fearing permanent nationalization of our banking system may have little reason to worry. Though it’s hard to know how long it will take, bank CEOs are anxious to cut their Washington ties.
Market Misperceptions
By , The Wall Street Journal, 02/12/2009
MarketMinder's View:
Just as the 1929 crisis wasn’t actually solved by encouraging the manufacture of household appliances, building windmills and biofuel sites won’t do so now.
Market Misperceptions
By , Newsweek, 02/12/2009
MarketMinder's View:
You should be. But that doesn’t mean the market can’t recover. Markets have historically led economic recoveries. If you wait for confirmation from the economy that everything is OK again, you’ll likely miss a big bull market surge.
Sensible Stories
By , The Washington Times, 02/12/2009
MarketMinder's View: The US employment data isn’t rosy, but some rational analysis helps put the “official” data into better perspective.
Sensible Stories
By , The Wall Street Journal, 02/12/2009
MarketMinder's View: Generally, stifling free trade only does more harm than good—as the Smoot-Hawley Tariff Act proved.
Market Misperceptions
By , The Wall Street Journal, 02/12/2009
MarketMinder's View:
No need to fear exchange rates. If you think and invest globally, exchange rates matter far less. There’s no need to base monetary value on a finite material that’s in much demand for other purposes!
Market Misperceptions
By , The Financial Times, 02/12/2009
MarketMinder's View:
To suggest that policymakers could offer a more accurate view on the appropriate price of assets than the markets demonstrates a lack of understanding of  the fundamental laws of supply and demand.
Sensible Stories
By , The Wall Street Journal, 02/12/2009
MarketMinder's View: Credit markets appear to be thawing as the wall of global monetary stimulus continues to grow. See our 02/11/2009 cover story, “Strong Currents Stirring,” for more.
Sensible Stories
By , 02/12/2009
MarketMinder's View: A breakdown of the stimulus plan for investors looking to better understand the proposal.
Market Misperceptions
By , The New York Times , 02/12/2009
MarketMinder's View:
Why does it make sense to force Americans to own shares of any company? The market does a pretty good job of telling CEOs what people think about their firms.
Market Misperceptions
By , Reuters, 02/11/2009
MarketMinder's View: There is no doubt behavioral psychology plays a key role in how investors act. However, we’d caution against using this social science as “blame” for the financial crisis. What this article really speaks to is the need for a disciplined investing approach and the recognition we often have biases we can’t recognize easily.
Sensible Stories
By , Financial Times, 02/11/2009
MarketMinder's View: Centuries-old good sense from the venerable Mr. Smith.
Market Misperceptions
By , BusinessWeek, 02/11/2009
MarketMinder's View: There will be no quick results tied to stimulus packages. Don’t expect positive economic data to manifest for a long time. However, do expect markets to rise in anticipation of the recovery before the data does.
Market Misperceptions
By , Los Angeles Times, 02/11/2009
MarketMinder's View: Deficits are not the concern many investors make them out to be.  For more, see our cover story, “On Borrowed Dime,” (2/5/2009).
Market Misperceptions
By , The Wall Street Journal, 02/11/2009
MarketMinder's View: Humans aren’t evolved enough to be trusted with credit cards? That’s a rather bleak view. Some people get into trouble by driving too fast. Should we ban everyone from driving too?
Market Misperceptions
By , TheStreet.com, 02/11/2009
MarketMinder's View:
Huh? That certainly wouldn’t have protected much of anything over the last few years.
Market Misperceptions
By , Reuters, 02/11/2009
MarketMinder's View: It’s not surprising fraud cases are popping up now—bear markets and times of negative public sentiment are typically when crooks are identified. Expect more of this in the months ahead.
Sensible Stories
By , The Wall Street Journal, 02/11/2009
MarketMinder's View: Isn’t it ironic that the government’s plan to fix the banking system is to punish it for excesses?
Sensible Stories
By , The Wall Street Journal, 02/11/2009
MarketMinder's View: “Dropping mark-to-market is no miracle cure, but it would reduce the pressure on banks and regulators to make irrational choices about the disposition of questionable assets.” We agree.
Sensible Stories
By , The New York Times, 02/11/2009
MarketMinder's View: We couldn’t agree more! One of our contributor’s wrote about this exact same thing last March in “How to Awaken a Sleepy US Economy”.
Sensible Stories
By , Pittsburgh Tribune-Review, 02/11/2009
MarketMinder's View: Salary caps on CEOs may seem palatable to most folks. And they sure do earn a lot of money! But government tinkering with prices—yes, even salaries—sets a terrifying precedent and will likely have negative unintended consequences.
Sensible Stories
By , Bloomberg, 02/11/2009
MarketMinder's View: Credit markets continue to thaw—around the world. This is just one of many examples of companies globally tapping credit markets lately. For more, see our cover story, “Strong Currents Stirring,” (2/11/2009).
Sensible Stories
By , Real Clear Markets, 02/10/2009
MarketMinder's View: While we may not say “never”, we do agree that the natural direction of an economy is growth.
Sensible Stories
By , Real Clear Politics, 02/10/2009
MarketMinder's View: “As we found in 1930, after the Smoot-Hawley tariffs were imposed, more protectionism is the last thing the world needs.” Very true. Fortunately, protectionism continues to sound more like political posturing than a legitimate threat.
Market Misperceptions
By , MSNBC, 02/10/2009
MarketMinder's View: What’s next? Bell-bottoms making a resurgence? Indicators like these are good for nothing more than a light chuckle.
Market Misperceptions
By , The Wall Street Journal, 02/10/2009
MarketMinder's View: Sure, spending large amounts of money wisely is difficult, but there’s no such thing as perfect stimulus. This is like bickering whether the government spends $400 or $500 on a hammer. Even if spent stupidly, stimulus money should find its way to the economy and increase velocity, and the economy should benefit.
Market Misperceptions
By , Fortune, 02/10/2009
MarketMinder's View: There’s no evidence closed-end funds perform any better long term than open-ended funds.
Sensible Stories
By , Yahoo Finance, 02/10/2009
MarketMinder's View: It’s on its way. But before the stimulus is finalized, expect it to be bigger, and expect more bickering.
Market Misperceptions
By , Newsweek.com, 02/10/2009
MarketMinder's View:
The problem with nationalization is that it leads companies and entire industries to become politicized—thus allocating resources to favored groups as opposed to their most efficient uses.
Sensible Stories
By , CNBC, 02/10/2009
MarketMinder's View: Inventories are experiencing record lows. Don’t let the dour sentiment surrounding this fool you—it’s a positive sign businesses are well-positioned to weather the current downturn.
Sensible Stories
By , The Wall Street Journal, 02/10/2009
MarketMinder's View: “The challenge for policy makers is to halt the downward spiral in demand rather than acting in protectionist ways which will accelerate it.” – We agree.
Market Misperceptions
By , MarketWatch, 02/10/2009
MarketMinder's View: Will they or won’t they? Either way, the S&L crisis saw a similar number of banks fail in the 1980s and 1990s, yet those were overall fine times for stocks and the economy.
Sensible Stories
By , Bloomberg, 02/09/2009
MarketMinder's View: We generally agree with this—stop harping on deficit increases. Deficits aren’t as toxic as many perceive them to be, and now is the appropriate time to be spending.
Market Misperceptions
By , The New Republic, 02/09/2009
MarketMinder's View: The US today is substantively different from Japan in the late ‘80s and early ‘90s.  For more, see our 12/19/2008 cover story “America’s Lost Decade?”
Market Misperceptions
By , The Wall Street Journal, 02/09/2009
MarketMinder's View: Some investors are looking to feng shui masters and praying temples to predict the future of the economy?  We wouldn’t recommend it.
Sensible Stories
By , New York Post, 02/09/2009
MarketMinder's View: It’s useful to put today’s turmoil in context.
Sensible Stories
By , The Wall Street Journal, 02/09/2009
MarketMinder's View: We don’t agree with the analysis of every policy move, but it’s a sure thing that government intervention exacerbates problems more than alleviating them.
Market Misperceptions
By , CNN , 02/09/2009
MarketMinder's View:
We weren't aware less rapper "bling" is regarded as a legitimate economic indicator these days. Ignore.
Market Misperceptions
By , LA Times, 02/09/2009
MarketMinder's View: True, deflation is a short-term threat tied to frozen credit markets. But the monetary tsunami set to hit capital markets from central banks around the globe is overwhelmingly likely to cause at least moderate inflation in the future.
Market Misperceptions
By , The New York Times, 02/09/2009
MarketMinder's View:
Knowing the last 10 years were not great for stocks won’t help anyone make decisions going forward.
Sensible Stories
By , CNN Money, 02/09/2009
MarketMinder's View: Investors will have to wait another day for news on renewed bank bailout efforts. This is definitely worth keeping an eye on and will have meaningful implications looking ahead. But we’d caution not to become overly focused on ultra short-term events.
Sensible Stories
By , Bloomberg, 02/09/2009
MarketMinder's View: Chapter 11 is likely the most appropriate thing for the big autos right now. It’s no small irony in our view that after all the fighting to stay alive, the autos may finally go under to protect US bailout loans!
Sensible Stories
By , Bloomberg, 02/09/2009
MarketMinder's View: “So if we are not in a depression, we are probably in the midst of a major buying opportunity.” Amen.
Sensible Stories
By , Real Clear Markets, 02/09/2009
MarketMinder's View: The movement of markets is the perception of where the economy will go and not where it is right now.
Market Misperceptions
By , MSNBC, 02/06/2009
MarketMinder's View: Will unemployment go higher from here? Yes. Will it prevent the market from recovering? No. Will the job market be bleak forever? Highly unlikely.
Market Misperceptions
By , The Wall Street Journal, 02/06/2009
MarketMinder's View: Honestly, the “car czar” was a silly idea anyway and, named or not, won’t stave off the inevitable for the Big Three. For more, see our 12/10/08 cover story, “All Hail the Car Czar.”
Market Misperceptions
By , The Washington Times, 02/06/2009
MarketMinder's View: We agree our regulatory bodies could use an overhaul. But there’s no such thing as perfect stimulus. There will always be silliness and waste inherent in government spending, but that doesn’t mean it can’t help.
Market Misperceptions
By , Time, 02/06/2009
MarketMinder's View: Just because it always does during a recession—doesn’t mean it will happen.
Sensible Stories
By , CNNMoney.com, 02/06/2009
MarketMinder's View: A wise move. Protectionism generally hurts far more than it helps. The fewer trade barriers, the better.
Sensible Stories
By , The American, 02/06/2009
MarketMinder's View: “There is no surer route to misunderstanding the recent financial crisis, and to prescribing the wrong solution, than to blame capitalism.” – Exactly.
Market Misperceptions
By , The New York Times, 02/06/2009
MarketMinder's View:
We don’t believe the economy is “on the edge” although the more people think this way, the more likely it is that the fiscal response is quite large.
Market Misperceptions
By , The Wall Street Journal, 02/06/2009
MarketMinder's View: Of course inflation is a risk, considering the giant wall of monetary stimulus being unleashed. But it won’t become a risk until we see a high-level of capacity utilization, which may not be for a few years.
Market Misperceptions
By , Times Online, 02/05/2009
MarketMinder's View:
As humans, we naturally shun regret.  This shunning of regret manifests itself as a seemingly endless blame game that we’re seeing right now. Don’t let it bother you (or cloud your decision-making process), it’s just human nature.
Sensible Stories
By , Bloomberg, 02/05/2009
MarketMinder's View: The wave of monetary stimulus continues.
Sensible Stories
By , National Post, 02/05/2009
MarketMinder's View: Why would top talent work in an industry with compensation caps when they can get more elsewhere? Said another way: Would you act that way?
Sensible Stories
By , The Wall Street Journal, 02/05/2009
MarketMinder's View: Hopefully they’ll stop it before it begins.
Sensible Stories
By , telegraph.co.uk, 02/05/2009
MarketMinder's View: “…an upsurge in protectionism would make the world a less efficient, more expensive, lower growth and more dangerous place than one built on the principles of free trade and open markets.” Very true.
Sensible Stories
By , International Herald Tribune, 02/05/2009
MarketMinder's View: We thought this was likely. Calls for protectionism have seemed, thankfully, largely like empty political rhetoric than actual threats. See our 10/8/2008 cover story, “The Benefit of Bad Memories,” for more.
Sensible Stories
By , Real Clear Markets, 02/05/2009
MarketMinder's View: The economy functions better when unfettered by government intervention.
Sensible Stories
By , Bloomberg, 02/05/2009
MarketMinder's View: There’s no way to know what the final stimulus will look like. The only thing that’s likely is it will continue to grow in size—and that’s fine. See today’s cover story, “On Borrowed Dime.”
Market Misperceptions
By , MSN Money, 02/05/2009
MarketMinder's View: Sure! The differences between now and the US in the 1930s and Japan and the 1990s are far greater than similarities. Nor are we doomed if the stimulus isn’t “perfect”—there’s no such thing as perfect stimulus, so we shouldn’t expect it.
Sensible Stories
By , The Wall Street Journal, 02/05/2009
MarketMinder's View: Losing your job is never fun, but don’t be alarmed rising unemployment must lead to poor stock returns. Historically, unemployment spikes even after stock markets begin an initial bull market surge.
Sensible Stories
By , The Guardian, 02/04/2009
MarketMinder's View: Agreed! Fewer trade barriers would be a huge, global net positive.
Sensible Stories
By , The Wall Street Journal, 02/04/2009
MarketMinder's View: The notion that government will spend money more efficiently than private enterprise isn’t reflected in history.
Sensible Stories
By , The Financial Times, 02/04/2009
MarketMinder's View: Whilst any protectionist ideas should be discouraged, it’s instructive to note that governments are a very long way from being able to bring re-enact the policy errors of the Great Depression.
Market Misperceptions
By , Times Online, 02/04/2009
MarketMinder's View:
It’s notoriously difficult to accurately predict even one quarter of consumer spending or GDP growth, let alone a full year.
Sensible Stories
By , BBC News, 02/04/2009
MarketMinder's View: In the end, probably not—protectionist talk seems more like empty political rhetoric these days. Let’s hope it stays that way. For more, see our cover story, “Made in ___” (1/13/2009).
Market Misperceptions
By , The Wall Street Journal, 02/04/2009
MarketMinder's View: More bailouts for autos probably only delay the inevitable—Chapter 11 bankruptcy may turn out to be the most effective solution for the Big Three. For more, see our cover story, “A Motor City Mess” (11/11/2008).
Sensible Stories
By , Bloomberg, 02/04/2009
MarketMinder's View: Hopefully, the US takes this opportunity to do what other developed economies have done—streamline its regulatory bodies and processes. For more, see our cover story, “Simplify, Simplify” (12/12/2008).
Sensible Stories
By , Financial Times, 02/04/2009
MarketMinder's View: Not if it’s done right! For more, see our cover story, “So Bad, It’s Good?” (1/29/2009).
Market Misperceptions
By , Reuters, 02/04/2009
MarketMinder's View: On the contrary. Historically, the categories that fall most near the end of a bear market tend to bounce most as the market begins its recovery.
Market Misperceptions
By , The Wall Street Journal, 02/04/2009
MarketMinder's View: There are more differences than similarities between America’s current economic situation and Japan’s in the 1990s. For more, see our cover story, “America’s Lost Decade?” (12/19/2008).
Market Misperceptions
By , Fortune, 02/03/2009
MarketMinder's View: Almost exactly wrong. The “official” savings rate data is inherently broken. A negative savings rate, the way it’s calculated, indicates more saving in assets with historically superior returns. A positive savings rate today is less desirable.
Sensible Stories
By , The Wall Street Journal, 02/03/2009
MarketMinder's View: A good reminder of the inherent disasters in nationalizing industries
Sensible Stories
By , The Financial Times, 02/03/2009
MarketMinder's View: As we see rising social unrest we hope that governments don’t give up on the sound economic principles of free trade and replace it with politically expedient protectionist policies.
Sensible Stories
By , MSN Money, 02/03/2009
MarketMinder's View: “The stock market is a leading economic indicator. Normally its ups and downs precede the general economy as a whole by three months to a year.” That’s the truth.
Market Misperceptions
By , The Wall Street Journal, 02/03/2009
MarketMinder's View: What do other financial crises really tell us? Markets tend to recover before the economy does and while unemployment is still rising. Waiting to see and feel a recovery can mean missing huge, positive market moves.
Sensible Stories
By , BBC News, 02/03/2009
MarketMinder's View: Hardly surprising that Davos is big on rhetoric, short on actionable insight.
Market Misperceptions
By , Timesonline, 02/03/2009
MarketMinder's View:
So rates aren’t high enough for savers and low enough for borrowers, per the Government. Do politicians understands how banks make money?
Market Misperceptions
By , San Francisco Chronicle, 02/03/2009
MarketMinder's View: Historically, January’s market direction has said no more about the year’s overall direction than April’s or the third Tuesday’s in June.
Market Misperceptions
By , 02/02/2009
MarketMinder's View:
Hold on, so inflation was terrible 6 months ago, then deflation, and now inflation again? Our heads are spinning. Some folks always find something to worry about.
Market Misperceptions
By , Bloomberg, 02/02/2009
MarketMinder's View: Concerns abound over the fiscal stimulus plan and its effect on deficits. Bottom line: Deficits aren’t toxic for the economy. See our 08/18/2008 cover story, “Don’t Demonize the Deficit,” for more.
Sensible Stories
By , The Wall Street Journal, 02/02/2009
MarketMinder's View: Interesting. Some states understand reducing corporate taxes helps increase employment. It would be nice if the federal government could catch on.
Sensible Stories
By , The Wall Street Journal, 02/02/2009
MarketMinder's View: If bad loans supposedly got us into this mess, it makes no sense for that same practice to get us out.
Market Misperceptions
By , MSNBC, 02/02/2009
MarketMinder's View: “Analysts say the recovery—when it comes—will likely be weak and slow.” We think it will be quite the opposite. Ignore. 
Sensible Stories
By , The Becker-Posner Blog, 02/02/2009
MarketMinder's View: Implementing a trade restriction to bolster the US economy is a bad idea—the Smoot-Hawley Tariff Act is a perfect example of unintended consequences. See our 10/08/2008 cover story, “The Benefit of Bad Memories,” for more.
Market Misperceptions
By , Los Angeles Times, 02/02/2009
MarketMinder's View:
The stock market is never a short term investment. if you are looking to make returns over one year, you probably should never have bought stocks at all.
Sensible Stories
By , The Wall Street Journal, 02/02/2009
MarketMinder's View: It’d be nice if the government let banks decide how to profitably run their businesses and best manage risk, since arbitrary government mandates have done little but exacerbate imbalances. See our 01/06/2009 cover story, “Layer Cake Regulation,” for more.
Market Misperceptions
By , Time, 02/02/2009
MarketMinder's View: We’re now tracing the entire recession back to one man’s actions? We’d hate to be that guy!
Market Misperceptions
By , The New York Times, 02/02/2009
MarketMinder's View: All this bickering about which is better—tax cuts or spending—misses the important point. Tax cuts provide nearly instantaneous stimulus, whereas government spending takes more time to be felt. Also, those expecting some “perfect” stimulus will be disappointed—there’s no such thing.
Sensible Stories
By , The Wall Street Journal, 02/02/2009
MarketMinder's View: What’s “stimulating” about state-run newspapers?
Sensible Stories
By , Associated Press, 02/02/2009
MarketMinder's View: Expect poor economic news and official data to continue—but remember markets generally lead economies and bottom first. Don’t wait for the economy to seem like it’s improving to become bullish.
Market Misperceptions
By , Barron’s, 02/02/2009
MarketMinder's View: “This year’s Super Bowl is an apt reflection of the economy and the stock market.” Since when did we make professional football an economic indicator? Ignore.