Home → Fisher Investments MarketMinder Headlines → 03-2007 Archives

Sensible Stories
By , the Financial Times, 03/30/2007
MarketMinder's View: We're already a third of the way to the total for 2006 only a quarter of the way through the year.
Sensible Stories
By , Bloomberg, 03/30/2007
MarketMinder's View: A bullish sign for Japan as consumers begin to spend.
Market Misperceptions
By , The Wall Street Journal , 03/30/2007
MarketMinder's View: Our ridiculous story of the week. Outsourcing to private parties is precisely the best thing the government can do.
Sensible Stories
By , The Wall Street Journal , 03/30/2007
MarketMinder's View: Potential tax hikes or the failure to maintain previous tax cuts are very concerning and hold the potential to negatively affect markets. This is worth keeping an eye on.
Sensible Stories
By , The Wall Street Journal , 03/30/2007
MarketMinder's View: It is a fact that most will live longer than they expect.
Market Misperceptions
By , Dow Jones Newswire, 03/30/2007
MarketMinder's View: Let's not mix up earnings potential and share price potential—they are not always correlated.
Sensible Stories
By , The New York Times, 03/30/2007
MarketMinder's View: Our point exactly—higher gasoline prices have not translated into less gas consumption, nor a weak consumer.
Dueling Headlines
By , Bloomberg, 03/30/2007
MarketMinder's View:
Sensible Stories
By , The New York Times, 03/30/2007
MarketMinder's View: A classic example of basic supply and demand. Ethanol demand has lead to surging demand for corn, so farmers will plant 15% more corn acres next year, lowering corn prices.
Sensible Stories
By , Bloomberg, 03/30/2007
MarketMinder's View: This is a bad development for stocks.
Sensible Stories
By , The Economist, 03/30/2007
MarketMinder's View: A stellar example of market efficiency and increased financial stability. "Distress, once the preserve of specialists, is now attracting the mainstream.
Market Misperceptions
By , RealClearPolitics, 03/29/2007
MarketMinder's View: If we socialize medicine in America, where will Canadians go to get high quality health care?
Sensible Stories
By , The New York Times, 03/29/2007
MarketMinder's View: A very bullish sign for a culture that has often resisted merger activity.
Market Misperceptions
By , Sydney Morning Herald, 03/29/2007
MarketMinder's View: Yawn.
Market Misperceptions
By , The Independent, 03/29/2007
MarketMinder's View: San Franciscan moonbats launch yet another salvo in their war on Capitalism.
Sensible Stories
By , Forbes, 03/29/2007
MarketMinder's View: It pays to be mindful of financial planners' motives—most are on collecting fees.
Sensible Stories
By , TCS Daily, 03/29/2007
MarketMinder's View: Powerful arguments for free markets and private property featuring light bulbs and Anna Nicole.
Sensible Stories
By , Bloomberg, 03/29/2007
MarketMinder's View: How about a system where we vote off a politician each week from the Beltway until we're down to…oh, say, none. (And afterward Simon Cowell can berate them.)
Sensible Stories
By , Bloomberg, 03/29/2007
MarketMinder's View: Retail sales are up, unemployment is down, growth is better than expected. Europe is looking pretty solid right now.
Sensible Stories
By , Forbes.com, 03/28/2007
MarketMinder's View: A much-needed reminder of how great and powerful the American economy is.
Sensible Stories
By , Wall Street Journal , 03/28/2007
MarketMinder's View: Good news from emerging markets. South Korea is considering opening its high-growth economy to free trade, and Poland is clocking its neighbors.
Sensible Stories
By , TCS Daily, 03/28/2007
MarketMinder's View: Government programs, unlike businesses, don't fold when they fail. Interesting commentary on the importance of an exit strategy in an open marketplace.
Market Misperceptions
By , Morningstar.com, 03/28/2007
MarketMinder's View: Wow! Did you know stocks are overvalued 4%? Must be true, since this fellow said stocks were 14% overvalued in 2004. Hmm, weren't global stocks up 14% that year?
Market Misperceptions
By , Wall Street Journal , 03/28/2007
MarketMinder's View: Another reason to forbid your children from studying economics at Princeton.
Market Misperceptions
By , Bloomberg.com, 03/28/2007
MarketMinder's View: We had high hopes for this article, but it really muddles the point. We aren't heading for recession just because the US yield curve inverts—wrong way to think. A better way to think? Globally.
Sensible Stories
By , Fool.com, 03/28/2007
MarketMinder's View: Stock buyback 101. The stock supply continues to shrink—a bullish driver for the stock market.
Sensible Stories
By , MarketWatch.com, 03/28/2007
MarketMinder's View: Moderate growth and slower inflation . . . what's the problem with that?
Sensible Stories
By , MarketWatch, 03/28/2007
MarketMinder's View: Whaddya know? Consumer confidence is not predictive of future stock returns! This commentary quotes the Fisher-Statman study "Consumer Confidence and Stock Returns.
Sensible Stories
By , Bloomberg.com, 03/28/2007
MarketMinder's View: Legislators seeking a culprit for an alleged economic slowdown are about to deliver one themselves. Let's not forget tax receipts are higher now—even with reduced tax rates—because incomes are higher. Cause and effect? Maybe.
Dueling Headlines
By , Earthtimes.com, 03/28/2007
MarketMinder's View: Wait, I thought durable goods went down. Now big-ticket manufactured goods are up? That doesn't support the doomsday theory, so it must be wrong!
Market Misperceptions
By , New York Times, 03/28/2007
MarketMinder's View: From a political stand-point, there's nothing to be gained from arguing that "global warming" isn't a crisis to tackle.
Market Misperceptions
By , Associated Press, 03/28/2007
MarketMinder's View: It's amazing how "close watching" turns into "uncertainties increased." By the way, isn't the Fed supposed to monitor monetary conditions closely—inflation, credit conditions, etc.? How is this news?
Market Misperceptions
By , CNN-Money, 03/28/2007
MarketMinder's View: ARGH! Oh wait, this irresponsible headline is not a statement of fact. It is a projection published by the Center for Responsible Lending. They have no incentive to be misleading, do they?
Sensible Stories
By , The Wall Street Journal , 03/27/2007
MarketMinder's View: We believe CEOs will increasingly figure out this game. With corporate interest rates at multiyear lows, companies can immediately boost their EPS by buying back their own or a competitor's stock.
Market Misperceptions
By , BusinessWeek, 03/27/2007
MarketMinder's View: Reducing the competitive workforce in America. Another stellar idea from the Senate.
Market Misperceptions
By , Chicago Sun Times, 03/27/2007
MarketMinder's View: All this talk on executive pay is overblown. Professional athletes make a lot of money. Should we go after them next? Let the market decide these people's salary, and keep the government out of it.
Sensible Stories
By , 03/27/2007
MarketMinder's View: These frogs were brought to Australia to kill beetles, but the poisonous frogs actually get as big as small dogs and kill crocodiles. Good news for farmers! Frozen, liquefied killer toads make great fertilizer.
Sensible Stories
By , The Wall Street Journal , 03/27/2007
MarketMinder's View: America's tort system costs each household nearly 10 grand a year. Shakespeare said it best: "First thing we do, let's kill all the lawyers.
Sensible Stories
By , Kiplinger's, 03/27/2007
MarketMinder's View: Yes!
Market Misperceptions
By , Associated Press via Yahoo!, 03/27/2007
MarketMinder's View: Slowing? Scary! Wait a minute . . . what are the expectations for growth? Asia: 7.7%, China: 10%, India: 8%. In what world is that "bad?
Market Misperceptions
By , SmartMoney, 03/27/2007
MarketMinder's View: As long as sentiment remains dour on small-cap stocks, they'll continue to beat expectations.
Market Misperceptions
By , The Wall Street Journal , 03/27/2007
MarketMinder's View: Yikes! Full of scary words—"crummy," "shoddy," and private-equity executives "chuckling like frat boys." Note the article's caveat: " . . . corporate defaults have dipped to their lowest levels in more than 10 years." Not so sketchy.
Sensible Stories
By , MarketWatch, 03/27/2007
MarketMinder's View: So? Consumer confidence is a lagging indicator. It falling after a small market correction in February is not surprising or important.
Sensible Stories
By , Bloomberg, 03/27/2007
MarketMinder's View: The outlook continues to be bright in Europe's largest economy.
Sensible Stories
By , MarketWatch, 03/27/2007
MarketMinder's View: It's the global yield curve that matters, not just the US. Betting against a country just because its yield curve is inverted can be a humbling experience—just look at the UK in recent years.
Market Misperceptions
By , Boston Globe, 03/26/2007
MarketMinder's View: Great. Money doesn't buy happiness and you get progressively unhappier until you're 45. Happy Monday.
Market Misperceptions
By , Morningstar, 03/26/2007
MarketMinder's View: Wade through the doom and gloom to discover the truth: No recession on the horizon.
Sensible Stories
By , KudlowsMoneyPolitics.Blogspot.com, 03/26/2007
MarketMinder's View: Here are some reminders the economic world is not coming to an end.
Market Misperceptions
By , Morningstar.com, 03/26/2007
MarketMinder's View: Raise your hand if relatively low inflation and interest rates and stronger- than-expected growth sound Goldilocks-ish.
Sensible Stories
By , Bloomberg.com, 03/26/2007
MarketMinder's View: Nor should they. The fact is rates are still relatively low globally and are very accommodative to future economic growth.
Sensible Stories
By , Wall Street Journal , 03/26/2007
MarketMinder's View: As long as earnings yields remain above bond yields globally, small caps will likely continue their outperformance over big.
Dueling Headlines
By , Morningstar.com, 03/26/2007
MarketMinder's View: So, which is it? Stronger or weaker than expected? Call us crazy, but an upwards surprise in the 6.69 MILLION existing-homes sales per year sounds like it has more impact than a downwards surprise in the 848,000 new home sales per year.
Market Misperceptions
By , Wall Street Journal , 03/26/2007
MarketMinder's View: Expect to see more headlines on the nefarious "income gap" throughout the year as a political hot topic. As we've said before, income is not a zero-sum game!
Sensible Stories
By , Kiplinger’s, 03/26/2007
MarketMinder's View: A study concluded more people willing to work and competition for jobs might actually be good for the economy. A competitive marketplace is good? Fancy that.
Sensible Stories
By , SmartMoney.com, 03/26/2007
MarketMinder's View: Neuro-economics and behavioral finance attempt to understand investor decisions—humans react to spending decisions the same way they would to actual physical pain
Market Misperceptions
By , FT via RealClearPolitics, 03/26/2007
MarketMinder's View: A "sky is falling" rant arguing for more government intervention and a smaller current account deficit. Don't bother.
Sensible Stories
By , WashingtonPost.com, 03/26/2007
MarketMinder's View: Loosening regulations would likely be a net positive. Here's hoping it happens.
Market Misperceptions
By , Briefing.com, 03/26/2007
MarketMinder's View: This is a test to see if you've learned anything from MarketMinder. If you have, you won't even click on this link.
Sensible Stories
By , Reuters, 03/23/2007
MarketMinder's View: Another example of entirely new industries coming into their own through technology and innovation. Video games aren't just for kids—they're nearly as big as the movie industry, and the average player is over 25 years old! Even 82 year old retirees are playing!
Sensible Stories
By , Wall Street Journal , 03/23/2007
MarketMinder's View: The president of the European Central Bank gives us a history of the EU and outlines the benefits of free markets.
Market Misperceptions
By , The Wall Street Journal , 03/23/2007
MarketMinder's View: Look, we aren't marketing experts, but this seems like a pretty bad sales pitch to us: "We will charge you 2% of your assets plus 20% of the profits. We have a brilliant track record: we're responsible for one of the biggest blowups in the history of hedge funds, losing $6 billion in about a week…only six months ago. Interested?
Market Misperceptions
By , Morningstar, 03/23/2007
MarketMinder's View: Taking ill-informed, absurd, fear mongering to new heights. Collectively, our ridiculous stories of the week.
Sensible Stories
By , Bloomberg, 03/23/2007
MarketMinder's View: More evidence the so-called housing "implosion" is more like a mild downturn.
Sensible Stories
By , The Wall Street Journal , 03/23/2007
MarketMinder's View: Down with Big Corn! Windfall profits for alternative fuel producers! Tax them!" Unfortunately, it will not be an easy process to replace traditional oil and gas.
Sensible Stories
By , Guardian Unlimited, 03/22/2007
MarketMinder's View: More evidence why we must always question what we know—in investing, but also, in life. Everything evolves, including language.
Sensible Stories
By , RealClearPolitics, 03/22/2007
MarketMinder's View: A reformed media scare-monger comes clean and issues a warning: Don't believe anything we tell you.
Sensible Stories
By , The Wall Street Journal , 03/22/2007
MarketMinder's View: Forecasters sure tend to underestimate the economy and stock market. The Labor Department reported recently that the US created 400,000, or 20%, more jobs in 2006 than estimated! Anyway, this is more evidence government data is faulty.
Sensible Stories
By , Chicago Tribune, 03/22/2007
MarketMinder's View: Technology continues its march toward greater innovation and increases in productivity.
Sensible Stories
By , Marketwatch, 03/22/2007
MarketMinder's View: An interesting look at the interaction of supply and demand on gasoline prices and why we should get used to high oil prices.
Market Misperceptions
By , The Wall Street Journal , 03/22/2007
MarketMinder's View: Investors are still skeptical of the market, with short interest increasing to a record—not the sign of a typical euphoric market top. According to the survey, the last time investors were this bearish on US equities, you have to go all the way back to…August 2006. A great time to be invested.
Market Misperceptions
By , Dow Jones, 03/22/2007
MarketMinder's View: Very few would even have noticed this unless journalists wrote about it. The markets certainly didn't flinch. It's probably because the total assets of all 80 hedge funds come to about $35 billion. This might seem like a lot, but that's less than 3% of total hedge fund assets.
Market Misperceptions
By , The Guardian, 03/22/2007
MarketMinder's View: How dare "big box" retail stores move into a community, offer more jobs, corporate career paths, and higher quality goods at a cheaper price!
Sensible Stories
By , Bloomberg News via The Washington Post, 03/22/2007
MarketMinder's View: Greater openness of markets is a good thing, not something to fear.
Sensible Stories
By , TCS Daily, 03/22/2007
MarketMinder's View: A fascinating theory of government. Do we really need a coronated central system telling us how to live? Nah—humans are usually pretty good at sorting out disputes on their own.
Sensible Stories
By , Marketwatch, 03/22/2007
MarketMinder's View: We agree. Blackstone's public offering is somewhat vexing.
Sensible Stories
By , Forbes, 03/22/2007
MarketMinder's View: Yep.
Sensible Stories
By , Marketwatch, 03/22/2007
MarketMinder's View: Small stocks are not what they seem…and they may do better for longer than you may think!
Sensible Stories
By , Bloomberg, 03/22/2007
MarketMinder's View: Increasing demand for commercial real estate in Japan is a direct reflection of its improving economic conditions.
Market Misperceptions
By , MarketWatch, 03/22/2007
MarketMinder's View: Huh? What does "choppy" mean? Sounds scary! Ignore this. Economic indicators are imprecise and misleading.
Sensible Stories
By , CNN Money, 03/22/2007
MarketMinder's View: It appears investors are ultimately more interested in their bottom line than unproven claims of reversing man-made global warming. Capitalism rocks!
Sensible Stories
By , RealClearPolitics, 03/21/2007
MarketMinder's View: A rational commentary on why Hollywood should make movies, not public policy.
Market Misperceptions
By , The Independent, 03/21/2007
MarketMinder's View: Because of global warming. Duh.
Market Misperceptions
By , Thestreet.com, 03/21/2007
MarketMinder's View: Two great examples of poor investing. First, homemade portfolio designed to return 8% to 10% a year actually returns… 12%! Way above the goal! Wowie-zowie! Sounds great until we realize the S&P 500 returned 15.8% in the same period. Second, "If I take the time to do my research and I believe in the companies, I should beat the indexes." This is exactly wrong. In order to beat the indexes you must know something the market does not.
Sensible Stories
By , Washington Times via RealClearPolitics, 03/21/2007
MarketMinder's View: Hooray! Officially nothing is getting done in Congress. Bullish for stocks.
Sensible Stories
By , AP Business Writer via Yahoo!, 03/21/2007
MarketMinder's View: We're strong believers the recent U.S. income and capital gains tax reductions have helped fuel current economic strength, therefore we'd expect similar positive results for the U.K. should they follow suit.
Sensible Stories
By , CNNMoney , 03/21/2007
MarketMinder's View: With stocks cheap and borrowing costs relatively low, more mega-deals throughout the economy are probably on the way.
Market Misperceptions
By , The New York Times, 03/21/2007
MarketMinder's View: Whatever happened to the new Chinese-led bear market?
Sensible Stories
By , Bloomberg, 03/21/2007
MarketMinder's View: Mo regulation, mo problems…
Sensible Stories
By , Kudlow’s Money Politics, 03/21/2007
MarketMinder's View: See yesterday's commentary, "Retired President's Society" for more.
Market Misperceptions
By , MarketWatch, 03/20/2007
MarketMinder's View: This is backwards—we fail to understand how increased government regulation spurs innovation.
Market Misperceptions
By , The Wall Street Journal , 03/20/2007
MarketMinder's View: Continuing our theme of inane headlines that sound more like a parent scolding a child than news. And by the way, new housing starts were MUCH better than expected today. Now go to your room, mister!
Sensible Stories
By , Smartmoney, 03/20/2007
MarketMinder's View: A fascinating look of where consumer to consumer commerce is heading.
Sensible Stories
By , 03/20/2007
MarketMinder's View: Bullish news about property rights and expanding free markets seems to be coming out of China almost daily.
Sensible Stories
By , Marketwatch, 03/20/2007
MarketMinder's View: To quote, "If you have growth running at nominal terms 14% to 15% and you are being paid a one-year deposit at 2% to 3% and inflation is running at 2% to 3%, then the incentive is clearly to invest rather than to deposit." We couldn't agree more.
Sensible Stories
By , Smartmoney, 03/20/2007
MarketMinder's View: Newsletter writers are in the business of selling newsletters, and not much more.
Sensible Stories
By , Bloomberg, 03/20/2007
MarketMinder's View: An interesting perspective on Japanese culture and spending habits.
Market Misperceptions
By , The Wall Street Journal , 03/20/2007
MarketMinder's View: It was just a matter of time. Could it ever be possible for a company to fail legally?
Sensible Stories
By , Thestreet.com, 03/20/2007
MarketMinder's View: If sub-prime mortgages are really creating a credit crunch crisis, why is lending expanding at even faster rates than last year?
Sensible Stories
By , The Wall Street Journal , 03/20/2007
MarketMinder's View: Investors are worried about subprime credit problems and the Federal Reserve, but this looming tax increase on capital isn't helping confidence. The market fell 200 points on the day Mr. Conrad unveiled his magic act last week.
Market Misperceptions
By , The Guardian , 03/20/2007
MarketMinder's View: Um, yeah it is.
Sensible Stories
By , The Wall Street Journal , 03/20/2007
MarketMinder's View: Cash is officially king in the race for to be a Presidential nominee. See our past commentary, "Political Bracketology.
Sensible Stories
By , TCS Daily, 03/20/2007
MarketMinder's View: Increased regulation equals higher prices and poorer service. The article says it best: "The ban on genetic discrimination, then, is a "fix" to health insurance problems much like amputating your foot is a "fix" to your stubbed toe.
Sensible Stories
By , The Australian, 03/20/2007
MarketMinder's View: Mergermania is on a tear lately.
Market Misperceptions
By , The Independent, 03/20/2007
MarketMinder's View: Brussels sprouts? Broccoli? Brie? What arbitrarily belongs in the inflation basket impacts the inflation reading—which is why all governmentally produced data should be viewed cynically.
Sensible Stories
By , International Business Times, 03/20/2007
MarketMinder's View: Our minds are typically on autopilot, relying on pre-programmed responses to get us through the day, and only thinking about what we're doing a very small percentage of the time. One of the central features of the brain's autopilot is fear and anxiety. No wonder the media is always trying to get our attention with scary headlines!
Market Misperceptions
By , The Wall Street Journal , 03/19/2007
MarketMinder's View: So quick to draw conclusions. Patience, grasshopper. One month's data does not a market make.
Sensible Stories
By , The Wall Street Journal , 03/19/2007
MarketMinder's View: The ‘rich' have helped create thousands of jobs, introduce new technologies, and spilled untold opportunities and economic abundance onto the world. In addition, they pay more taxes than just about anyone else.
Sensible Stories
By , The Wall Street Journal , 03/19/2007
MarketMinder's View: Keeping the housing market worries in perspective.
Sensible Stories
By , Bloomberg, 03/19/2007
MarketMinder's View: On the media's perpetual misrepresentation of economic strength. Why would they do this? Because it sells! Don't buy into it.
Market Misperceptions
By , MSN Money, 03/19/2007
MarketMinder's View: This sounds a lot more like a preview to a horror film than it does investing advice. We're long overdue for a new Friday the 13th movie, aren't we? How about: ‘Freddie Slays Wall Street' as a working title?
Sensible Stories
By , Aviation Week, 03/19/2007
MarketMinder's View: More competition is good for global markets. China announces a plan to build commercial aircraft to compete with the giants of Boeing and Airbus.
Market Misperceptions
By , 03/19/2007
MarketMinder's View: The argument for Pfizer's CEO to redistribute his income. If that's such a wonderful idea, then you first.
Sensible Stories
By , the Economist, 03/19/2007
MarketMinder's View: With all the hubbub about housing and lending, don't forget there's a whole world out there to invest in. An update on emerging markets.
Sensible Stories
By , The Wall Street Journal , 03/19/2007
MarketMinder's View: Oh those evil, faceless corporations and their capability to save citizens billions in financing costs. Good thing we've got unions and the government to stop such recklessness!
Sensible Stories
By , Smartmoney, 03/19/2007
MarketMinder's View: Indeed.
Market Misperceptions
By , Bloomberg, 03/19/2007
MarketMinder's View: The point is moot. This assumes that hedge funds add an excessive amount of risk to the markets that desperately needs to be mitigated. In reality, hedge funds probably reduce overall market volatility.
Sensible Stories
By , OpinionJournal via RealClearPolitics, 03/19/2007
MarketMinder's View: Apparently there are four kinds of lies—lies, damned lies, statistics, and mockumentaries on "global warming." Great commentary illustrating why we must always question passionately held beliefs—in investing and in life.
Market Misperceptions
By , 03/19/2007
MarketMinder's View: Isn't a better question: Did the so-called carry trade ever stop?
Market Misperceptions
By , CNNMoney, 03/19/2007
MarketMinder's View: We always get a kick out of these kinds of stories. When, exactly, is the market ever ‘certain'?
Sensible Stories
By , The Wall Street Journal , 03/16/2007
MarketMinder's View: Sound the alarm! Foreigners continue to find the US an attractive place to invest!
Sensible Stories
By , the Economist, 03/16/2007
MarketMinder's View: Impossible to know the market implications just yet, but a fascinating innovation nonetheless.
Market Misperceptions
By , Wired Magazine, 03/16/2007
MarketMinder's View: Only the government would take a highly sophisticated droid—partially responsible for saving the galaxy from the Evil Empire, mind you—and turn it into a box to hold snail mail. Such cruel irony. (For more on government absurdity, see our past commentary "Whoop Whoop Whoop")
Market Misperceptions
By , MarketWatch, 03/16/2007
MarketMinder's View: You think? Incessant nagging we're going to drown like the Polar bears if we survive the subprime implosion is kind of a downer. Consumer sentiment is in no way predictive of stocks movements anyway.
Sensible Stories
By , The International Herald Tribune, 03/16/2007
MarketMinder's View: A sound banking system is vital to economic progress.
Sensible Stories
By , CNNMoney, 03/16/2007
MarketMinder's View: Mergermania is pervasive among the develop nations of the world because equities of those same nations are highly undervalued relative to the cost of borrowing.
Sensible Stories
By , CNN Money, 03/16/2007
MarketMinder's View: Mergermania is pervasive among the develop nations of the world because equities of those same nations are highly undervalued relative to the cost of borrowing.
Market Misperceptions
By , MarketWatch, 03/16/2007
MarketMinder's View: You think? Incessant nagging we're going to drown like the Polar bears if we survive the subprime implosion is kind of a downer. Consumer sentiment is in no way predictive of stocks movements anyway.
Sensible Stories
By , International Herald Tribune, 03/16/2007
MarketMinder's View: A sound banking system is vital to economic progress.
Sensible Stories
By , the Economist, 03/16/2007
MarketMinder's View: Impossible to know the market implications just yet, but a fascinating innovation nonetheless.
Market Misperceptions
By , Wired Magazine, 03/16/2007
MarketMinder's View: Only the government would take a highly sophisticated droid—partially responsible for saving the galaxy from the Evil Empire, mind you—and turn it into a box to hold snail mail. Such cruel irony. (For more on government absurdity, see our past commentary "Whoop Whoop Whoop")
Market Misperceptions
By , Bloomberg, 03/16/2007
MarketMinder's View: We guess that Europe's recent better than expected economic numbers should just be ignored then, yes?
Market Misperceptions
By , US News, 03/16/2007
MarketMinder's View: My goodness the media is dour today…you'd think it was Monday and not Friday with this kind of despondency.
Market Misperceptions
By , Yahoo! via Digg.com, 03/16/2007
MarketMinder's View: No.
Sensible Stories
By , The Wall Street Journal , 03/16/2007
MarketMinder's View: Sound the alarm! Foreigners continue to find the US an attractive place to invest!
Market Misperceptions
By , The Financial Times, 03/16/2007
MarketMinder's View: Call us greedy capitalists, but since when does the market have a social contract with its economy? Private equity may seem ruthless to some, but that's precisely a reason why it's so effective in increasing efficiency and productivity.
Sensible Stories
By , TCS Daily, 03/16/2007
MarketMinder's View: An interesting idea. Abolish the Senate and establish a British-style House of Lords. They'd conveniently get nothing done—we'd vote for that.
Sensible Stories
By , TCS Daily, 03/16/2007
MarketMinder's View: An interesting idea. Abolish the Senate and establish a British-style House of Lords. They'd conveniently get nothing done—we'd vote for that.
Market Misperceptions
By , Yahoo! via Digg.com, 03/16/2007
MarketMinder's View: No.
Market Misperceptions
By , Bloomberg, 03/16/2007
MarketMinder's View: We guess that Europe's recent better than expected economic numbers should just be ignored then, yes?
Market Misperceptions
By , 03/16/2007
MarketMinder's View: My goodness the media is dour today…you'd think it was Monday and not Friday with this kind of despondency.
Sensible Stories
By , MarketWatch, 03/16/2007
MarketMinder's View: The destruction of equity supply continues…
Sensible Stories
By , Marketwatch, 03/16/2007
MarketMinder's View: The destruction of equity supply continues…
Sensible Stories
By , The Telegraph, 03/16/2007
MarketMinder's View: Commentary on the 300th anniversary of the Treaty of Union between England and Scotland from the Prime Minister himself .
Sensible Stories
By , 03/16/2007
MarketMinder's View: Don't expect to see this being trumpeted in the evening news—doesn't fit with the current Apocalyptic theme. Not only is US net worth hitting new heights, but it's happening in other developed nations too.
Market Misperceptions
By , The Financial Times, 03/16/2007
MarketMinder's View: Call us greedy capitalists, but since when does the market have a social contract with its economy? Private equity may seem ruthless to some, but that's precisely a reason why it's so effective in increasing efficiency and productivity.
Sensible Stories
By , 03/16/2007
MarketMinder's View: Don't expect to see this being trumpeted in the evening news—doesn't fit with the current Apocalyptic theme. Not only is US net worth hitting new heights, but it's happening in other developed nations too.
Sensible Stories
By , The Motley Fool, 03/15/2007
MarketMinder's View: More reasons to remain globally invested.
Sensible Stories
By , Bloomberg, 03/15/2007
MarketMinder's View: It wasn't so long ago the UK housing market went into a correction similar to ours. Although this references luxury homes, the rest of the UK market is still growing at a double digit pace.
Market Misperceptions
By , MarketWatch, 03/15/2007
MarketMinder's View: Yawn. The US long bond is at 4.5%--and lower than it was a year ago. Please, no more stories about inflation fears.
Market Misperceptions
By , Real Clear Politics, 03/15/2007
MarketMinder's View: A classic example of misunderstanding finance and capital markets. Here's the argument: private equity firms and LBOs are bad because they don't pay a high enough price in takeoevers, thereby enriching themselves and depriving public shareholders of higher returns. This of course begs the question of why the price of the public companies are not higher to begin with.
Sensible Stories
By , The Wall Street Journal , 03/15/2007
MarketMinder's View: More damning evidence against the protectionists.
Market Misperceptions
By , The Financial Times, 03/15/2007
MarketMinder's View: Compared with other episodes – the Asian crisis in 1997-98, for example – recent falls look like mere blips. And rightly so. Asian and Latin American economies have reduced their dependence on the US over the past decade and unusually robust external balances should allow them to resist global financial turmoil.
Sensible Stories
By , The Wall Street Journal , 03/15/2007
MarketMinder's View: The outcome of the annual federal budget process could have serious effects on the economy and stock market. By not extending existing tax policies, Americans will effectively be faced with a tax hike.
Market Misperceptions
By , MarketWatch, 03/15/2007
MarketMinder's View: This is a Pulitzer caliber idea! Showing the parallels between the "subprime bubble" and the internet bubble as a scare tactic! What an interesting, never-before-used angle!
Market Misperceptions
By , The Financial Times, 03/15/2007
MarketMinder's View: When a valuation indicator has shown equities to be overvalued for the last 17 years, what usefulness does it have? None.
Market Misperceptions
By , The Wall Street Journal , 03/15/2007
MarketMinder's View: Our ridiculous story of the week. Break out the holy water, garlic, silver bullets, wooden spears, and whatever else you've got. The two biggest risks in the market today have combined into one, unholy, Frankenstein-ish, subprime carry-trading demon!
Sensible Stories
By , Chicago Sun Times, 03/15/2007
MarketMinder's View: We like the idea—"free market Kyoto".
Sensible Stories
By , The Wall Street Journal , 03/15/2007
MarketMinder's View: Question: "Is it wise to let capital slosh around the global economy without much restriction?" Answer: yes.
Market Misperceptions
By , Kiplinger, 03/15/2007
MarketMinder's View: Three strategies for choosing a mutual fund in your IRA: 1) buy a fund with high turnover that you would rule out for your taxable account. 2) choose a fund that invests in index futures, but has a fixed income component, then hope it does better than its 1.03% expense ratio. 3) find a fund with very little correlation to market returns and hope to capitalize on market inefficiencies. With such great advice, remind us again why most investors don't beat the market?
Sensible Stories
By , The Wall Street Journal , 03/14/2007
MarketMinder's View: The importance of property rights, and more evidence of incompetence from the Thai government (See our past commentary: "Baht were they thinking?")
Sensible Stories
By , The Wall Street Journal , 03/14/2007
MarketMinder's View: Stock buybacks are all the rage!
Sensible Stories
By , The New York Times, 03/14/2007
MarketMinder's View: Though most find it unfathomable, the worldwide productivity boom may be just beginning…
Sensible Stories
By , The Wall Street Journal Europe , 03/14/2007
MarketMinder's View: Hooray! This story is getting very little press coverage, but it's a great reason to remain bullish on European stocks.
Sensible Stories
By , Kudlow’s Money Politics, 03/14/2007
MarketMinder's View: A brief but interesting interview with Treasury Secretary Henry Paulson regarding the economy and real estate market.
Sensible Stories
By , Guardian Unlimited, 03/14/2007
MarketMinder's View: Some good evidence that regret shunning is still alive and well in the markets. Not only is the media paying a lot of attention to this new negative story, but also helping Americans remember to seek litigious retribution every time something bad happens.
Sensible Stories
By , The Financial Times, 03/14/2007
MarketMinder's View: An interesting look at the differences between private and public sector development of infrastructure, specifically at US ports. We wonder if members of Congress read the reference to the efficiency in the Mumbai port that is operated by Dubai Ports World…we doubt it.
Sensible Stories
By , Bloomberg, 03/14/2007
MarketMinder's View: We're on the Bernanke bandwagon too. Overall, an excellent first year for the Chairman.
Sensible Stories
By , Associated Press Writer via Yahoo! News, 03/14/2007
MarketMinder's View: Despite the belief we're destroying the world with industry, the US and Europe are actually reforesting, not deforesting.
Market Misperceptions
By , GuardianUnlimited, 03/14/2007
MarketMinder's View: Right. Hollywood's to blame for the West being leery of Iran's peaceful nuclear ambitions. Because Hollywood and George Bush are in cahoots. Everyone knows that.
Sensible Stories
By , The Motley Fool, 03/14/2007
MarketMinder's View: A funny take on the absurdity of the perpetually bearish. We quote: "...here's my promise to all you perma-bears out there: If at any time in the next 20 years, all three major indices should ever hit all-time lows, I'll admit I was wrong.
Sensible Stories
By , Time Magazine, 03/14/2007
MarketMinder's View: We are not seeing delinquency and foreclosure rates at historic highs like some of the media would have you believe. We are seeing these rates at levels similar to 2002 and 2003. 2003, 2004 and 2005 were a great time to be invested in either stocks or real estate. Though 2006 was a lackluster year for real estate, it was another great year for stocks. If a repeat of the last 4 years is on the horizon, count me in!
Sensible Stories
By , Thestreet.com, 03/14/2007
MarketMinder's View: Remember the bull market correction in 1998? Everyone was freaking out but stocks ended up having a great year. An insightful comparison of then and now.
Sensible Stories
By , MarketWatch, 03/14/2007
MarketMinder's View: This story is not as interesting as oppressed sub-prime borrowers being frog-marched into delinquency, capsizing the entire global equity markets. Mortgage rates are still very low, driving demand for homes. Home prices can't drop much if there's a wave of buyers with cheap money.
Market Misperceptions
By , 03/14/2007
MarketMinder's View: The national debt accounts for 6.5% of GDP—extremely low. Can we please stop talking about this?
Market Misperceptions
By , The Wall Street Journal , 03/14/2007
MarketMinder's View: The Skyscraper of worry is back! (See our past commentary, "Skyscraper of Worry")
Sensible Stories
By , 03/14/2007
MarketMinder's View: A classic governmental overreaction to market movements. The real risk here is the government stepping in and over regulating the industry.
Market Misperceptions
By , 03/14/2007
MarketMinder's View: Beyond absurd. The government is subsidizing our TV watching. Our tax dollars at work.
Sensible Stories
By , TCS Daily, 03/14/2007
MarketMinder's View: An outstanding commentary on why profits increasing faster than wages in the EU is not a political problem for the government to solve. It's an opportunity to increase personal wealth by reducing regulation. If European governments are truly worried about civilian purchasing power, they can lower taxes. Also, screw wings onto pigs.
Sensible Stories
By , The Wall Street Journal , 03/14/2007
MarketMinder's View: The implications of the House Democrats' paygo budget rule. "Paygo is a twisted crutch for a crippled budget process. It is no substitute for a budget ethic of spending restraint. It is bad government and bad economics.
Market Misperceptions
By , The New York Times, 03/14/2007
MarketMinder's View: How many US alliances does it take to screw in a lightbulb? Hopefully none. Have we lost our way so badly that we look to the government to decide on lightbulbs for us?
Market Misperceptions
By , Guardian Unlimited, 03/14/2007
MarketMinder's View: Total headscratcher. Unemployment is down, BUT wages are higher. Correct us if we're wrong, but you connect two like things with an "and" not a "but." Unemployment is good. Higher wages are good. Not according to this article.
Sensible Stories
By , KudlowsMoneyPolitics.Blogspot.com, 03/13/2007
MarketMinder's View: Forget politics, this article details the many benefits this economy has accrued through lower taxes and supply-side economics.
Sensible Stories
By , SmartMoney, 03/13/2007
MarketMinder's View: Brokers are craftsmen, generally intent on their clients making trades in order to get bigger commissions. Caveat emptor!
Market Misperceptions
By , via Digg.com, 03/13/2007
MarketMinder's View: The Bueller . . .Bueller . . . Bueller guy claims poor mommies have to give blood to buy toys for their children because there are too many high paying jobs. Doesn't make sense to us either, but never mind. For the good of the state, turn in your white collar and pick up your cordless drill, comrades.
Sensible Stories
By , 03/13/2007
MarketMinder's View: 2006's Mergermania has continued into 2007 so far.
Sensible Stories
By , The New York Times, 03/13/2007
MarketMinder's View: First Michael Moore is castigated as a manipulator of information…now the inventor of the internet is being accused of hyperbole!? How can this be?
Sensible Stories
By , The Wall Street Journal , 03/13/2007
MarketMinder's View: Demand for oil continues to grow and new supply is scarce. Meanwhile, many are waking up to the fact that ethanol isn't a great fuel alternative—it makes food prices go up. All this points to higher oil prices for the foreseeable future.
Market Misperceptions
By , Yahoo!, 03/13/2007
MarketMinder's View: What does Halliburton do that doesn't spark political ire? Their move makes good economic sense. Plus, it's fun to annoy politicians.
Market Misperceptions
By , The Wall Street Journal , 03/13/2007
MarketMinder's View: This is an absurd conclusion based on anecdotal evidence. Growth stocks are basically in line with value stocks throughout the world year to date. A handful of tech IPOs is not a good proxy for global markets.
Sensible Stories
By , Bloomberg, 03/13/2007
MarketMinder's View: The tides of protectionism being beaten back by EU regulators themselves! It's almost too good to be true.
Market Misperceptions
By , Bloomberg, 03/13/2007
MarketMinder's View: More lying with statistics. Looking at the S&P 500's performance from 1999 to 2007 tells you precisely nothing. Why not just look at the current expansion from 2003 to the beginning of 2007? The S&P has averaged a 15.1% return in that time, well above historical averages. Why isn't that just as valid?
Sensible Stories
By , Bloomberg, 03/13/2007
MarketMinder's View: Some great points on why the economy continues to push forward. "Analysts have generally underestimated profit growth during the current expansion." Enough said.
Sensible Stories
By , The Wall Street Journal , 03/13/2007
MarketMinder's View: The headline says it all.
Sensible Stories
By , Guardian.com, 03/13/2007
MarketMinder's View: Someone forgot to tell the Brits the housing bubble is imploding. Countrywide had a great 2006 and expects a better 2007. That can't be. Must be all those pints at lunch. Contrast this to yesterday' commentary: "New Century, Old Worries".
Sensible Stories
By , The Wall Street Journal , 03/13/2007
MarketMinder's View: An excellent special section of the WSJ on housing as investment…and its many drawbacks.
Sensible Stories
By , The Wall Street Journal , 03/13/2007
MarketMinder's View: Superheroes often perish in times of dour sentiment and worry—the stuff of bull markets. (See our past commentary "Idle Thoughts".)
Sensible Stories
By , Time Magazine, 03/12/2007
MarketMinder's View: Guess who pays all the taxes! (See our past commentary "Death & Taxes…and Economic Growth)
Sensible Stories
By , Bloomberg, 03/12/2007
MarketMinder's View: His name alone attracts a lot of listeners, but uncle Alan simply isn't in the loop like he used to be.
Market Misperceptions
By , International Herald Tribune , 03/12/2007
MarketMinder's View: Don't buy into these "who's at fault" theories. The decline in global markets was purely psychological, and in all likelihood hedge funds, along with the plethora of financial instruments out there, actually help to stabilize markets.
Sensible Stories
By , The Wall Street Journal , 03/12/2007
MarketMinder's View: Despite all the headline grabbing stories about rising delinquency on subprime loans, they remain a very small portion of the overall mortgage market and the broader economy. A classic case of media-driven overblown worry.
Market Misperceptions
By , USA Today, 03/12/2007
MarketMinder's View: A fantastic idea. While we're at it, we're inquiring as to whether Brittney Spears is available to give us some relationship advice.
Sensible Stories
By , The New York Times, 03/12/2007
MarketMinder's View: As with any prosperous boom, the government is never far behind, demanding its pound of flesh.
Sensible Stories
By , Associated Press via Yahoo! Finance, 03/12/2007
MarketMinder's View: Japan continues its economic recovery, with signs of strength coming from both businesses and consumers.
Sensible Stories
By , USA Today, 03/12/2007
MarketMinder's View: Oh how quickly we forget. Just a week ago people were screaming that this was the catalyst for a new bear market…what gives?
Sensible Stories
By , Washington post.com, 03/12/2007
MarketMinder's View: It's war! Let's hope it turns out better for the freedom-loving businessmen than it did for the valiant Spartans at Thermopylae.
Sensible Stories
By , The Wall Street Journal , 03/12/2007
MarketMinder's View: Fear mongering about globalization and free trade is nothing more than a political tactic designed to give the government more power and the world's free citizens less.
Sensible Stories
By , SmartMoney, 03/12/2007
MarketMinder's View: As the "green" mania continues at fever pitch, has anyone stopped to consider the economics of the most "viable alternatives"?
Market Misperceptions
By , The Wall Street Journal , 03/09/2007
MarketMinder's View: We're just speechless about this one. The US unemployment rate came in at 4.5%, lower than expected. This is one of the lowest unemployment rates in the history of the United States!!! Not to mention that employment numbers are lagging indicators anyway, and stocks only look forward.
Sensible Stories
By , The Wall Street Journal , 03/09/2007
MarketMinder's View: A great example of lying with numbers. Economists and the media do the same everyday.
Market Misperceptions
By , Bloomberg, 03/09/2007
MarketMinder's View: Even the most credulous would surely turn incredulous (perhaps even nonplussed!) at the strategy of being perennially bearish. It's been a rough 4 years for the bears; for that matter, it's been a rough 100 years for the bears.
Sensible Stories
By , The Wall Street Journal , 03/09/2007
MarketMinder's View: An excellent summary of US trade with Latin America, the perils of protectionism, and Mr. Bush's trip there next week.
Market Misperceptions
By , The Wall Street Journal , 03/09/2007
MarketMinder's View: Politics is an important factor in market behavior. But it's still way too soon to be paying attention to the 2008 Presidential race. It's just as likely new contenders will emerge that we haven't even yet considered.
Sensible Stories
03/09/2007
MarketMinder's View: There is simply more to gain from globalization than there is to lose, and the sooner people realize this, the sooner we'll all be better off.
Sensible Stories
By , The Economist, 03/09/2007
MarketMinder's View: Wrap your head around this: property rights in communist China. How much longer are they going to explicitly call themselves communists anyway? These new policies are suspiciously capitalist and pro-free markets…
Market Misperceptions
By , The Slate, 03/09/2007
MarketMinder's View: This is absolutely frightening and could trigger socialist-induced nightmares or acute cases of entitlement insomnia upon reading. Either way, socialism is a neurotic complex persistent in ill minds.
Sensible Stories
By , AP Economics Writer via Yahoo! News, 03/09/2007
MarketMinder's View: How can this possibly be true if the government keeps telling us our national savings rate is negative!? Oh, right…because the "savings rate" is a bogus number (see our parody of the government and tribute to the Three Stooges, "Whoop Whoop Whoop" for more).
Sensible Stories
By , The Slate, 03/09/2007
MarketMinder's View: Some wise advice.
Sensible Stories
By , The Wall Street Journal , 03/08/2007
MarketMinder's View: This is a beautiful thing: "The rags-to-riches story of how Iceland's 300,000 citizens became some of the world's wealthiest people is a testament to capitalism's animal spirits. Only after it opened up the economy, privatized state companies and slashed marginal taxes did this once famine-plagued island become a Nordic Tiger.
Sensible Stories
By , Bloomberg, 03/08/2007
MarketMinder's View: A good commentary on why declines in the Chinese stock markets are no reason for concern in the U.S. First off, China's markets are not a direct reflection of its economic conditions. More importantly, a downturn in the U.S. economy would be more disastrous for China than the other way around.
Market Misperceptions
By , Wall Street Journal , 03/08/2007
MarketMinder's View: A disturbance in the Force, we feel. But turn to the dark side, we will not. Strength for stocks in 2007, positive economic fundamentals will bring. Remain bullish, we will.
Dueling Headlines
By , The Washington Post, 03/08/2007
MarketMinder's View:
Sensible Stories
By , TCS Daily, 03/08/2007
MarketMinder's View: A worthwhile point of view on productivity, worker compensation, and business cycles.
Market Misperceptions
By , Forbes , 03/08/2007
MarketMinder's View: Our ridiculous story of the week. I mean, you kill yourself all day at work…only to find an already dead person makes more than you! What a world.
Sensible Stories
By , Wall Street Journal , 03/08/2007
MarketMinder's View: Paulson is proving to be a very competent Treasury Secretary. "This week, Treasury Secretary Henry Paulson is in China dispensing advice that the key to secure financial-system foundations is more openness and less regulation of capital markets.
Market Misperceptions
By , 03/08/2007
MarketMinder's View: A great example of how political risk can affect stocks. The government needs to learn when to leave things alone. The market will figure things out. Recent headlines about excessive credit card fees are overblown. The government says the public doesn't understand how its debt works, but it's really the government not understanding the basics of finance. If you are late on a payment, you are charged a fee. This sounds reasonable to us.
Market Misperceptions
By , CNNMoney, 03/08/2007
MarketMinder's View: The "No. 1 U.S. homebuilder sees further write-offs due to unsold homes, lower value lands; expects '08 to be better." Nothing like a CEO using the macro environment as a scapegoat for poor performance and lowered expectations. The housing market will be just fine in 2007.
Market Misperceptions
By , Wall Street Journal , 03/07/2007
MarketMinder's View: This interpretation is a little perverse. We'd hardly consider stock investors "upbeat" given that only 46% expect the market to go higher over the next year, with 31% expecting the economy to get worse and the rest expecting things to be unchanged. That's not exactly euphoria. These are excellent sentiment conditions for stocks to continue their bull market run.
Sensible Stories
By , The Economist, 03/07/2007
MarketMinder's View: …a conservative estimate on the [yen carry] trade is between $80 and $160 billion." That's a very small number in relation to the global scene. The supposed unwinding of the yen carry trade is nothing to worry about.
Sensible Stories
By , Financial Times via MSNBC.com, 03/07/2007
MarketMinder's View: This could lead to more investment options and healthy competition amongst brokers, a net benefit for investors.
Sensible Stories
By , The International Herald Tribune, 03/07/2007
MarketMinder's View: An insider's look at the hedge fund industry. This one was just too funny to pass up.
Sensible Stories
By , Bloomberg, 03/07/2007
MarketMinder's View: It's reassuring to see the EU cracking down on protectionism.
Sensible Stories
By , The Wall Street Journal , 03/07/2007
MarketMinder's View: Two signs of a bull market correction: prices fall on no significant economic news and the regions or sectors that led on the way up also led on the way down.
Sensible Stories
By , Bloomberg, 03/07/2007
MarketMinder's View: Politics aside, this article offers some excellent points on free trade.
Sensible Stories
By , CNNMoney, 03/07/2007
MarketMinder's View: That popping sound you hear is not a housing bubble "implosion", rather, it's the dire predictions of many economists that are deflating. As long as borrowing costs for a 30-year fixed rate mortgage hover just over 6%, the real estate market should hold up quite nicely.
Market Misperceptions
By , The Financial Times, 03/07/2007
MarketMinder's View: Don't bother looking at P/E ratios to determine if equities are overvalued, including the variation proposed here. P/Es have no predictive power on future stock returns.
Sensible Stories
By , The Financial Times, 03/06/2007
MarketMinder's View: Lots of great tidbits in this one: "Almost everyone keeps an eye on the price of shares they have just sold, even though this information is no more relevant to your investment strategy than the price of a share you have never owned... For those who follow events too closely, the pain of regret can far outweigh the joys of success. Life, and markets, contain so many missed opportunities…Do not suppress regret – that will make you a worse decision-maker as well as a nasty person. But learn to control regret: know when this emotion is useful and when not. Accept that most market movements are statistical noise that convey no information about the past and provide no guidance about the future. Judging your fund manager on monthly or quarterly performance will give you a lot to talk about, but nothing useful to say.
Market Misperceptions
By , Time Magazine, 03/06/2007
MarketMinder's View: Funny how "risk" only enters the collective mind when things are going down. Always remember that volatility can be good, too.
Sensible Stories
By , The Financial Times, 03/06/2007
MarketMinder's View: Read the title again. And again. People commonly attach far too much importance to Vix futures.
Sensible Stories
By , 03/06/2007
MarketMinder's View: This bears watching. Although the impact remains to be seen, the bill could make it that much easier to engage in nationalistic, protectionist measures.
Sensible Stories
By , Bloomberg, 03/06/2007
MarketMinder's View: With over 90% of homes financed with fixed rates mortgages and owned outright, we'd agree with Mr. Paulson that defaults on subprime loans will have very little impact on the overall economy.
Sensible Stories
By , Marketwatch, 03/06/2007
MarketMinder's View: Bull markets don't end so long as fear rules. According to the article the average newsletter now recommends only a 23% exposure to stocks, down from 62% a week ago when the correction started.
Market Misperceptions
By , Barron’s Online, 03/06/2007
MarketMinder's View: In order to outperform the market, you must know something others don't or be lucky. Shifting to defensive sectors after a big market sell-off is like driving while looking in the rear view mirror.
Market Misperceptions
By , The Motley Fool, 03/06/2007
MarketMinder's View: Well, there you have it. Pattern recognition is the key to investing successfully. Now, about recognizing the proper pattern for socks…was it argyle, plaid, or paisley that makes you a better investor?
Sensible Stories
By , TCS Daily, 03/06/2007
MarketMinder's View: Subsidizing ‘good' energy in order to justify using ‘bad' energy is like eating salad in order to justify eating dessert. It is an exercise in self-deception." Harmful regulation to justify such practice is a potential major negative for stocks.
Sensible Stories
By , The Wall Street Journal , 03/06/2007
MarketMinder's View: ‘Nuff said.
Market Misperceptions
By , Morningstar, 03/06/2007
MarketMinder's View: This is not news. Productivity is directly affected by changes in GDP. As GDP was adjusted down last week, expectations for productivity had already gone down as well.
Sensible Stories
By , The New York Times, 03/05/2007
MarketMinder's View: A good story about the dismal success rates of most market and economic forecasters.
Sensible Stories
By , The Wall Street Journal , 03/05/2007
MarketMinder's View: Most funds underperform over time because they adhere rigidly to one type of stock investment. That doesn't work because leadership in size, region, sector, and style varies over time.
Sensible Stories
By , The Wall Street Journal , 03/05/2007
MarketMinder's View: Money will not be flowing out of the equity markets and into bonds yielding around 4.5%. Stocks were already cheap relative to bonds before the correction, and are even more so now!
Market Misperceptions
By , Marketwatch, 03/05/2007
MarketMinder's View: It's funny how someone will always say "it's different this time". Simple supply and demand for equities will continue to reign as it always has.
Sensible Stories
By , The Financial Times, 03/05/2007
MarketMinder's View: P/E ratios hold no predictive power for stocks and never have.
Market Misperceptions
By , The Wall Street Journal , 03/05/2007
MarketMinder's View: Charles Kindleberger's book "Manias, Panics, and Crashes" is indeed a classic and often very accurate in describing human behavior, but calling today's housing market a "bubble" just doesn't hold. We observed no bouts of "pure speculation" in housing. True, there has been speculation on the margin, but the vast majority of mortgage activity has been the result of rational economic behavior.
Sensible Stories
By , The Financial Times, 03/05/2007
MarketMinder's View: To quote ‘Mr Yen': "A two percent change in the [foreign exchange] market is nothing. When I was vice-finance minister that kind of adjustment took place every week.
Sensible Stories
By , The Wall Street Journal , 03/05/2007
MarketMinder's View: Valuations are too attractive and capital is too cheap…it's probably only a matter of time before Japan dives into the M&A game with the rest of the world.
Market Misperceptions
By , The Wall Street Journal , 03/05/2007
MarketMinder's View: We don't think so. The number of cash M&A deals announced last year hit a record. Companies are now cheaper than ever!
Market Misperceptions
By , USA Today, 03/05/2007
MarketMinder's View: It's a shame people continue making forward-looking decisions on backwards-looking data. There is no correlation.
Sensible Stories
By , The Financial Times, 03/05/2007
MarketMinder's View: A smart editorial on the recent market correction.
Market Misperceptions
By , Marketwatch, 03/02/2007
MarketMinder's View: Historically gold has moved in the same direction as the market more often than in the opposite direction and provided a lower return than the market. So if in the long-term gold doesn't provide a hedge against downturns and acts like a poor performing stock, why would you want to own it? Unless you can time its short-term bursts, it's problematic to recommend gold as a long-term strategy.
Sensible Stories
By , The Financial Times, 03/02/2007
MarketMinder's View: Markets abhor changes that create winners and losers. Wealth redistribution is among the worst culprits.
Market Misperceptions
By , The Financial Times, 03/02/2007
MarketMinder's View: Despite the clever epithets as an "Avenging Goddess," volatility indexes have zero predictive power as to the market's future direction.
Sensible Stories
By , TCS Daily, 03/02/2007
MarketMinder's View: Let's make a short story shorter—globalization affects the world during both good and bad times.
Sensible Stories
By , The Wall Street Journal , 03/02/2007
MarketMinder's View: Trying to time a market bottom is nearly impossible. After this week's drop the earnings yield-bond yield spread widened dramatically. Stocks remain cheap!
Sensible Stories
By , Smartmoney, 03/02/2007
MarketMinder's View: More insight on how flawed the government's measure of the "savings rate" truly is.
Sensible Stories
By , The Financial Times, 03/02/2007
MarketMinder's View: How about that!? China's set to allow a little private property! But note: a strong economy does not necessarily translate into a surging stock market. The risks to investing in China remain high, especially once investors gain the right to sell their shares.
Market Misperceptions
By , Bloomberg, 03/02/2007
MarketMinder's View: Uh-oh. The ‘top-ranked' strategy team in the world says it's time to sell your stocks! What's interesting is that the bank recommends cutting your equity allocation to 35% of total holdings from 45%. We wonder how that strategy worked out as stocks soared in 2003, 2004, 2005 and 2006.
Market Misperceptions
By , Morningstar, 03/02/2007
MarketMinder's View: Even if new guidelines are adopted, this should not have much impact. Many lenders are already following the guidelines that are rumored to be purposed.
Sensible Stories
By , Berkshire Hathaway, 03/02/2007
MarketMinder's View: Mr. Buffet is one of the great businessmen of his time. However, his track record as an economist and market prognosticator has been suspect. Nonetheless, his perspective and insight on the machinations of business are worth the read.
Sensible Stories
By , 03/02/2007
MarketMinder's View: We quote: "…the key to shrinking the U.S. trade deficit with China and other countries ‘does not involve more barriers; the answer involves more trade - with open markets here at home and more open markets abroad for our exports'." Absolutely correct, except for the part stating we need to shrink the trade deficit.
Sensible Stories
By , CNN Money, 03/01/2007
MarketMinder's View: We have mixed feelings on this one. On the one hand, it's absolutely correct CEOs are risk averse these days. On the other, we find it unlikely CEOs will be risk averse to the point of sabotaging the economy.
Sensible Stories
By , TCS Daily, 03/01/2007
MarketMinder's View: An excellent point: Markets do a great job on their own of sorting out problems resulting from labor shortages.
Sensible Stories
By , CNN Money, 03/01/2007
MarketMinder's View: Aggregate home prices actually increased over 2006, just at a slower pace than the last several years. We quote: "House price appreciation is, for now, more in line with historical norms." No bubbles here.
Market Misperceptions
By , Fortune, 03/01/2007
MarketMinder's View: The equity risk premium argument relies on a number of unknowns that require big assumptions…it's never really worked before and it won't now.
Market Misperceptions
By , The Wall Street Journal , 03/01/2007
MarketMinder's View: This is one of those funny stories where a problem is implicated but there's no real evidence or facts to back it up. What isn't as humorous is how often such speculative stories find their way into the "objective" press.
Sensible Stories
By , The Financial Times, 03/01/2007
MarketMinder's View: The correct way to look at the subprime market.
Market Misperceptions
By , Forbes, 03/01/2007
MarketMinder's View: Three words: Wall of Worry.
Sensible Stories
By , The Financial Times, 03/01/2007
MarketMinder's View: The very success of the US in exporting capitalism was bound to spawn competition as liquidity deepened in other markets.
Market Misperceptions
By , The Wall Street Journal , 03/01/2007
MarketMinder's View: More absurdity as the climate change debate reaches mania status: "The gym chain has rigged up 13 machines at one of its clubs here. When all of them are in use, the power generated amounts to about 300 watts, roughly enough to run three 27-inch television sets, five 60-watt light bulbs or several hundred video iPods. If all the exercise machines were in use 10 hours a day for a year, the gym could generate roughly $183 worth of electricity. At that rate, it would take about 82 years to pay off the initial $15,000 investment.