Home → Fisher Investments MarketMinder Headlines → 03-2008 Archives

Market Misperceptions
By , Bloomberg.com Commentary, 03/31/2008
MarketMinder's View: Are Asian markets “decoupling”? Probably not. One quarter’s market action tells you little about long-term trends.
Market Misperceptions
By , The Telegraph, 03/31/2008
MarketMinder's View: We need only look back at previous market corrections to realize that “financial Armageddon” is not just around the corner.
Sensible Stories
By , The Motley Fool, 03/31/2008
MarketMinder's View: Stop-losses seem beguiling, but are costly and never a good strategy for long-term investors.
Market Misperceptions
By , Telegraph, 03/31/2008
MarketMinder's View: Data-mining can produce corroborative evidence for pretty much anything, but doesn’t guarantee the data tells the whole story.
Sensible Stories
By , The Telegraph, 03/31/2008
MarketMinder's View: Excessive regulation is more poison than cure to both markets and the economy.
Sensible Stories
By , National Post, 03/31/2008
MarketMinder's View: O Canada! We’re with you. Free trade is awesome.
Sensible Stories
By , The Economist, 03/31/2008
MarketMinder's View: Political interference in the food system causes market imbalances and higher prices. If politicians were truly interested in plentiful, cheap food for the poor, they’d kill agricultural subsidies and other limitations.
Sensible Stories
By , The Wall Street Journal, 03/31/2008
MarketMinder's View: We couldn’t say whether Italy is about to embark upon economic reform, but it's worth reiterating that less government intervention and lower taxes can only generate prosperity.
Market Misperceptions
By , Barron’s, 03/31/2008
MarketMinder's View: If we are to believe, as argued in this article, analysts “are not born-again Nostradamuses,” then why also mention analysts’ credit loss predictions? Which analyst predictions should we believe? Only the bad ones?
Market Misperceptions
By , The Wall Street Journal, 03/31/2008
MarketMinder's View: The Fed’s backing of JP Morgan’s Bear Stearns acquisition is an innovative act, and we’d categorize it as a loan—not a “bailout.” See our cover story, “Don't Call It a Bailout” (3/25/2008), for more.
Sensible Stories
By , The Motley Fool, 03/31/2008
MarketMinder's View: “It's tremendously difficult to act when everyone's claiming the sky is falling.” Going against the grain is frightening, but can be the right path.
Market Misperceptions
By , The Economist, 03/31/2008
MarketMinder's View: All this insistence governments should “do something” about exchange rates is silly. Currency strength doesn’t dictate market strength for any developing country.
Market Misperceptions
By , Times Online, 03/28/2008
MarketMinder's View: Let’s hope we don’t have those paltry equity returns that followed 1996. Scratch that, we’d love to see those returns!
Sensible Stories
By , Café Hayek, 03/28/2008
MarketMinder's View: “Not only do these politicians have no expertise in economics—their specialty is winning political elections.” Too true.
Market Misperceptions
By , Reuters.com, 03/28/2008
MarketMinder's View: Consumer confidence doesn’t “point” to anything. Sixteen years ago the US was recovering from a recession—not entering one. And stocks were just fine that year.
Sensible Stories
By , Financial Times, 03/28/2008
MarketMinder's View: How did we know unintended consequences of government policies were behind these problems?
Market Misperceptions
By , Financial Times, 03/28/2008
MarketMinder's View: Spending, a major driver of GDP, is tied more closely to income growth than anything else. With inflation remaining benign and incomes growing, consumers will be just fine.
Market Misperceptions
By , CNNMoney.com, 03/28/2008
MarketMinder's View: Searching for a job is tough and never fun when you’re unemployed. But sad anecdotes do not a trend make. Unemployment remains very benign.
Market Misperceptions
By , CNNMoney, 03/28/2008
MarketMinder's View: We couldn’t have said it better ourselves! Surprises move markets, not tired stories that have had people panicked for months. This is bullish!
Sensible Stories
By , The Wall Street Journal, 03/28/2008
MarketMinder's View: Free trade is the best medicine for so many problems.
Sensible Stories
By , BusinessWeek, 03/28/2008
MarketMinder's View: We agree free trade ups the bottom line for countries and the world as a whole—the benefits far outweigh the negatives. But we disagree the government should intervene to prevent dislocations—the risk of unintended, negative consequences is certain.
Sensible Stories
By , Agoraphilia, 03/28/2008
MarketMinder's View: And you thought plain old outsourcing was scary! Next big worry—time traveling workers stealing our jobs! Sounds crazy . . . makes perfect economic sense.
Market Misperceptions
By , 03/28/2008
MarketMinder's View: One company’s troubles do not spell doom for the economy as a whole.
Sensible Stories
By , The Wall Street Journal, 03/28/2008
MarketMinder's View: As the Fed provides another innovative facility, investment banks have another source of liquidity—though it appears they weren’t in as dire need as most feared.
Sensible Stories
By , The Washington Times, 03/27/2008
MarketMinder's View: Terrible tales of tax tyranny!
Sensible Stories
By , Knowledge@Wharton, 03/27/2008
MarketMinder's View: No financial instrument is perfect, but we’d say that the development of ETFs is a good thing overall—they can serve a very useful part of an overall portfolio in some cases
Market Misperceptions
By , MSNBC.com, 03/27/2008
MarketMinder's View: This is a backward looking survey but just think—investing 5 years ago would’ve been a great decision!
Market Misperceptions
By , IBTimes.com (AP), 03/27/2008
MarketMinder's View: For all the complaints about the “Greenspan put,” it’s interesting to see people clamoring for yet more government intervention.
Sensible Stories
By , The Wall Street Journal, 03/27/2008
MarketMinder's View: “Foreign direct investment (FDI) has long been a source of strength for the American economy.” And as the global economy continues to grow, FDI will become even more important.
Sensible Stories
By , The Wall Street Journal, 03/27/2008
MarketMinder's View: It’s important to keep an eye not just on the Fed, but also on the world’s central banks.
Sensible Stories
By , RealClearMarkets, 03/27/2008
MarketMinder's View: “If the federal government tries to protect us from the downside of free markets, it will surely rob us of the economic signals that tell us how to become rich.” Agreed.
Sensible Stories
By , The Telegraph, 03/27/2008
MarketMinder's View: Many good points are made here. Underlying economic fundamentals are nowhere near as dire as most assume.
Market Misperceptions
By , CNN, 03/27/2008
MarketMinder's View: Entitlement programs such as Medicare and Social Security won’t end civilization as we know it. These programs can be eliminated by a simple vote and should not be included in the US balance sheet.
Sensible Stories
By , Financial Times, 03/27/2008
MarketMinder's View: Reflection sounds good. Better yet, go to yoga and relax for a while—do anything but over-regulate the banking industry.
Sensible Stories
By , The Wall Street Journal, 03/27/2008
MarketMinder's View: Interestingly, fewer hedge funds closed in 2007 than in 2006, though most believe 2007 was a “worse” year for Financials. A reminder, hedge funds blow up in good times and bad.
Market Misperceptions
By , The Wall Street Journal, 03/27/2008
MarketMinder's View: First, we wouldn’t call the JP Morgan/Bear Stearns merger a “bailout” (see our cover story from 3/25/08, “Don’t Call It a Bailout”). Secondly, it’s a tortured conclusion to say taxpayers are losing because of the Fed’s move—both the Fed and JP Morgan are not charities and could profit from this scenario.
Market Misperceptions
By , Telegraph, 03/27/2008
MarketMinder's View: Oh no. First the Asian Contagion. Then America’s subprime contagion. Now we must fear the “Icelandic Contagion”! We doubt tiny Iceland has the power to topple Europe.
Sensible Stories
By , Real Clear Politics, 03/26/2008
MarketMinder's View: “Economic conditions in the 1930s (average unemployment: 18 percent) were so different from today's that casual references to "depression" amount to fear-mongering.” Sometimes we all need a dose of reality
Market Misperceptions
By , Bloomberg.com, 03/26/2008
MarketMinder's View: The stock market is volatile—always has been. Scapegoating CEOs doesn’t change that.
Market Misperceptions
By , The Wall Street Journal, 03/26/2008
MarketMinder's View: We won’t dispute the returns over that period but why not just say it like it really is? The 2000-2002 bear market was really ugly but since then market returns have really been quite strong.
Sensible Stories
By , IBTimes.com, 03/26/2008
MarketMinder's View: When disaster mongering dominates headlines, it’s usually time to assess whether most folks are more dour than reality warrants.
Market Misperceptions
By , The Washington Times, 03/26/2008
MarketMinder's View: As tax day (everyone’s favorite) approaches, it’s good to remember there’s no evidence a big federal budget deficit causes market weakness. Even so, we’d agree a simpler tax code would be grand.
Market Misperceptions
By , The Wall Street Journal, 03/26/2008
MarketMinder's View: It is not the government’s role to identify a market bubble in the making—much less do anything about it. This has disaster written all over it.
Sensible Stories
By , CNNMoney.com, 03/26/2008
MarketMinder's View: Probably not.
Market Misperceptions
By , Financial Times, 03/26/2008
MarketMinder's View: Global free market capitalism died on March 14th? Who knew? Actually, the Fed simply provided some liquidity—for which it expects to be repaid, with interest. Sounds like capitalism to us.
Market Misperceptions
By , Reuters, 03/26/2008
MarketMinder's View: Stocks are up as often as down when oil surges—there’s no meaningful correlation. Would we see this headline if stocks were up today?
Sensible Stories
By , Businessweek, 03/26/2008
MarketMinder's View: Big, higher-rated companies can still get money cheaply and easily—one reason to favor them today.
Market Misperceptions
By , Financial Times, 03/26/2008
MarketMinder's View: “Public Funds are also not always well directed.” That's the understatement of the year.
Market Misperceptions
By , The Wall Street Journal, 03/26/2008
MarketMinder's View: Is Paulson trying to create another Sarbanes-Oxley?
Market Misperceptions
By , Bloomberg, 03/25/2008
MarketMinder's View: Geez Louise. These people write about growth like it’s a bad thing!
Sensible Stories
By , via CBS News, 03/25/2008
MarketMinder's View: So much for the “American Contagion” poisoning the whole world!
Market Misperceptions
By , Bloomberg, 03/25/2008
MarketMinder's View: Consumer confidence is a lagging indicator for stocks. Ignore.
Sensible Stories
By , via CBS News, 03/25/2008
MarketMinder's View: Continued free global investing bodes well for capital markets’ long-term prospects.
Market Misperceptions
By , BusinessWeek, 03/25/2008
MarketMinder's View: Nationalizing the “credit crunch” is not the answer.
Market Misperceptions
By , MarketWatch, 03/25/2008
MarketMinder's View: We’re happy to see a rare instance of inflation being correctly discussed as a function of money supply. But the truth is long-term inflation expectations remain benign as evidenced by low yields on 10-year Treasuries.
Sensible Stories
By , Real Clear Markets, 03/25/2008
MarketMinder's View: Sometimes a little uncertainty can even lead us to believe things we know aren’t true.
Market Misperceptions
By , The Telegraph, 03/25/2008
MarketMinder's View: This is among the most creative market Armageddon-style headlines we’ve seen yet. See today’s cover story, “Don’t Call It a Bailout,” for more.
Market Misperceptions
By , Forbes, 03/25/2008
MarketMinder's View: We disagree. Volatility indexes tell you nothing about future stock performance and certainly aren’t appropriate tools in determining a bear or bull market.
Sensible Stories
By , MarketWatch, 03/25/2008
MarketMinder's View: Rampant pessimism indicates “there is precisely the kind of wall of worry that strong rallies like to climb.”
Market Misperceptions
By , Financial Times, 03/25/2008
MarketMinder's View: One day movements in any direction are never instructive.
Sensible Stories
By , The Wall Street Journal, 03/25/2008
MarketMinder's View: This is “certainly not the time to overreact and undermine the most fundamental aspects of our free-market system… the only resolution to the crisis is to let the free market repair itself.” Well said!
Market Misperceptions
By , The Independent, 03/25/2008
MarketMinder's View: This kind of hysteric commentary is reminiscent of classic bull market correction sentiment.
Sensible Stories
By , Times Online, 03/25/2008
MarketMinder's View: A little history provides some perspective on economic conditions today.
Sensible Stories
By , The Economist, 03/24/2008
MarketMinder's View: Think Americans have ridiculously high gas prices? Think again. Higher prices are generally tied to higher taxes.
Market Misperceptions
By , Fortune, 03/24/2008
MarketMinder's View: Monsters under the bed and financial guesstimates are best left to the realm of fantasy.
Market Misperceptions
By , The Wall Street Journal, 03/24/2008
MarketMinder's View: Up or down, monthly indicators don’t necessarily paint the larger economic picture. Maybe housing sales are set for a recovery, maybe not. It’s far too soon to know.
Sensible Stories
By , TCS Daily, 03/24/2008
MarketMinder's View: An interesting, dramatic proposal for less government regulation.
Sensible Stories
By , Telegraph, 03/24/2008
MarketMinder's View: Headline-grabbing mega deals may have slowed, but middle market deals are holding strong—proof liquidity is still available.
Market Misperceptions
By , Bloomberg.com, 03/24/2008
MarketMinder's View: Pessimism is actually quite good for a bull market—bull markets traditionally climb a wall of worry.
Sensible Stories
By , The Washington Post, 03/24/2008
MarketMinder's View: The recession comparisons are overwrought for our tastes, but there are truisms in this article, not the least timing the market can prove costly. For more, see our cover story, “Making Heads and Tails of Stop-Losses,” 3/20/2008.
Market Misperceptions
By , CNNMoney.com, 03/24/2008
MarketMinder's View: Financial institutions have recovered from past problems without much hand-holding—let’s not start now.
Market Misperceptions
By , New York Times, 03/24/2008
MarketMinder's View: The first mistake is even expecting a politician to “fix” the economy. The last thing we need is a political fix!
Sensible Stories
By , The Wall Street Journal, 03/24/2008
MarketMinder's View: “Unfortunately, investing -- and managing money generally -- is profoundly counterintuitive.” Herd mentality often leads to disastrous investing decisions.
Sensible Stories
By , Bloomberg.com, 03/24/2008
MarketMinder's View: The battered mortgage-backed securities market is getting more short-term liquidity.
Sensible Stories
By , Telegraph, 03/24/2008
MarketMinder's View: Global markets continue to innovate and reach new milestones.
Market Misperceptions
By , Market Watch, 03/20/2008
MarketMinder's View: Last month rising oil prices caused economic weakness—now oil’s drop signals malaise? And what’s with all the fuss about the $100 level? Oil at $100 is no more significant than $99 oil or $101 oil.
Sensible Stories
By , National Post, 03/20/2008
MarketMinder's View: Increased regulatory measures would not be the way to deal with current uncertainty.
Market Misperceptions
By , The Wall Street Journal, 03/20/2008
MarketMinder's View: The article asserts the fate of one stock can predict the downfall of a whole market. Preposterous!
Sensible Stories
By , Telegraph, 03/20/2008
MarketMinder's View: Pertinent words of wisdom from the other side of the pond.
Sensible Stories
By , The Economist, 03/20/2008
MarketMinder's View: We don’t subscribe to all the author’s points, but overall this is a good take on the current economy and worth reading.
Sensible Stories
By , Bloomberg, 03/20/2008
MarketMinder's View: We’re pleased with steps taken by the Fed so far. Innovative action such as this to bolster liquidity is welcome.
Market Misperceptions
By , Barron’s, 03/20/2008
MarketMinder's View: We don’t put too much credence in short-term market movements, but the article highlights the positive aspects of Fed action beyond lowering interest rates.
Market Misperceptions
By , CNBC, 03/20/2008
MarketMinder's View: We knew he was a bit dour on the economy, but you know things are getting weird when Mr. Buffett cameos on daytime TV.
Market Misperceptions
By , BusinessWeek, 03/20/2008
MarketMinder's View: Normal economic ebbs and flows should not be misconstrued as ultimate doom. When prices get too high and supply beats demand—whether it’s houses or oven mitts—prices will drop.
Market Misperceptions
By , Financial Times, 03/20/2008
MarketMinder's View: Does this headline make you think World Trade is shrinking? It isn’t, it's just growing a little slower right now.
Sensible Stories
By , The San Francisco Chronicle, 03/20/2008
MarketMinder's View: Activity like this indicates the operating environment for large, healthy companies remains robust.
Sensible Stories
By , Bloomberg, 03/20/2008
MarketMinder's View: While the search continues for a permanent BOJ chief, the possibility of lowering Japan’s already low interest rates is noteworthy for global markets.
Sensible Stories
By , The Motley Fool, 03/20/2008
MarketMinder's View: Don’t let the headline fool you—this is a must-read. “…in order to take advantage of the greatest long-term, wealth-building machine available to individual investors, you have to be in the market.”
Market Misperceptions
By , CNN Money, 03/20/2008
MarketMinder's View: These leading indicators are made up of lagging numbers.
Sensible Stories
By , The Wall Street Journal, 03/19/2008
MarketMinder's View: Investment banks are warming up to the idea of borrowing from the Fed, signaling the Fed’s recent innovations could provide another liquidity source without the market-roiling stigma.
Market Misperceptions
By , Bloomberg, 03/19/2008
MarketMinder's View: Call us crazy, but we think central bankers probably have better things to do than crack down on schoolyard gossip. We’re in favor of fair play, but we’re wary of increased regulation.
Sensible Stories
By , Briefing.com, 03/19/2008
MarketMinder's View: We prefer less regulation and increased flexibility in credit markets.
Sensible Stories
By , MSNBC, 03/19/2008
MarketMinder's View: Further evidence government intervention in free markets is disruptive: Limited free trade means inferior hot dogs for soccer fans at Euro 2008.
Sensible Stories
By , Forbes, 03/19/2008
MarketMinder's View: Financial sector earnings continue to beat too-dour expectations.
Market Misperceptions
By , The Wall Street Journal, 03/19/2008
MarketMinder's View: A classic example of regret-shunning, but these guys have it backwards. Government regulation is bad; free markets are good—not the other way around!
Sensible Stories
By , The Wall Street Journal, 03/19/2008
MarketMinder's View: Who said volatility was ending? Markets are pretty much always volatile!
Sensible Stories
By , Briefing.com, 03/19/2008
MarketMinder's View: “Ignoring the positives in the economy is a bit like saying the New England Patriots won the Super Bowl 14-0.” We heartily agree.
Market Misperceptions
By , The Telegraph, 03/19/2008
MarketMinder's View: When someone says, “I am older than God, and the outlook has never looked as bleak,” you know expectations are likely a bit more dour than fundamentals warrant.
Market Misperceptions
By , MarketWatch, 03/19/2008
MarketMinder's View: While we appreciate positive sentiment, technical indicators should never be the sole driver of an investment strategy.
Market Misperceptions
By , The Motley Fool, 03/19/2008
MarketMinder's View: When are markets ever certain? Stocks have a better historic return than bonds because of their inherent risk.
Market Misperceptions
By , Barrons, 03/19/2008
MarketMinder's View: Sorry to burst this guy’s bubble, but there actually IS a huge “wall of worry” for markets to climb.
Market Misperceptions
By , International Business Times, 03/18/2008
MarketMinder's View: Supply and demand determine oil prices, not Fed rate cuts. And while we’re at it, ignore current peak oil prophecies. Hubbert was wrong about oil peaking in the 1970s, and we don’t see why the current crop of Cassandras should be correct now.
Market Misperceptions
By , Bloomberg, 03/18/2008
MarketMinder's View: We disagree the Fed is encouraging risky behavior. We see the Fed acting appropriately to cover short-term liquidity needs in ways not previously possible. See our cover story, “Whoa-oh Domino?” 3/18/08, for more.
Market Misperceptions
By , Kiplinger, 03/18/2008
MarketMinder's View: We disagree—fundamentals, not technical indicators, are a better indicator of long-term returns.
Market Misperceptions
By , BBC News, 03/18/2008
MarketMinder's View: Nationalizing financial institutions is never the answer.
Sensible Stories
By , The Economist, 03/18/2008
MarketMinder's View: Timely commentary on how replacing government intervention with freer trade can enhance economic growth. This is true in Taiwan and everywhere.
Sensible Stories
By , The Wall Street Journal, 03/18/2008
MarketMinder's View: Some reassuring words for investors with assets held at Bear Stearns: “Any securities that a customer holds at a brokerage firm are legally the investor’s property—and aren’t exposed to the claims of the firm’s creditors.”
Market Misperceptions
By , Forbes, 03/18/2008
MarketMinder's View: The thought of Uncle Sam riding to the rescue with public money gives us nightmares. Even in times of “crisis,” free markets are the best solution.
Sensible Stories
By , The Motley Fool, 03/18/2008
MarketMinder's View: Stop-losses are a costly strategy and historically haven’t improved returns. Remember, a stock’s past performance has no bearing on future returns.
Sensible Stories
By , Bloomberg, 03/18/2008
MarketMinder's View: It’s important to keep an eye on central banks around the world. Remember, think globally!
Market Misperceptions
By , The Wall Street Journal, 03/18/2008
MarketMinder's View: And today Japan and Hong Kong rebounded; one day price moves are not reliable indicators.
Market Misperceptions
By , CNNMoney, 03/18/2008
MarketMinder's View: We agree the sky isn’t falling, but not because of one day’s market move. One day’s market move, no matter how big up or down, just isn’t predictive for overall market direction.
Sensible Stories
By , CNNMoney, 03/18/2008
MarketMinder's View: A good reminder to diversify. Though the Fed acted to keep Bear customers and vendors whole, investing always involves risk of loss.
Sensible Stories
By , CNNMoney, 03/18/2008
MarketMinder's View: Despite the panic, earnings—even from embattled Financials—continue to beat too-dour expectations.
Market Misperceptions
By , The Wall Street Journal, 03/18/2008
MarketMinder's View: Do we really think anchoring currencies to gold is a forward step?
Sensible Stories
By , Financial Times, 03/18/2008
MarketMinder's View: We can’t know for certain that the market is reaching its bottom, but history can teach us that things are not always as bad as they seem.
Market Misperceptions
By , The Telegraph, 03/18/2008
MarketMinder's View: “One by one, Ben Bernanke fires his silver bullets and one by one they bounce off the advancing credit Terminator.” While we applaud references to 80s sci-fi/action classics, this analysis misses the mark. Fed rate moves typically take some time to be felt. And no Fed move should ever be regarded as a “silver bullet.”
Market Misperceptions
By , The Wall Street Journal, 03/17/2008
MarketMinder's View: Inflation remains historically benign despite the weakening of the US dollar. The dollar’s strength just isn’t a reliable inflation indicator.
Market Misperceptions
By , Times Online, 03/17/2008
MarketMinder's View: You could arrive at a similarly doomsday scenario if the Fed doesn’t cut rates. The movement in the US dollar over the last 5 years tells us currency fluctuations won’t drive the economy in the long run.
Sensible Stories
By , Bloomberg.com, 03/17/2008
MarketMinder's View: “The evidence is clear. Regulations that inhibit the supply response to higher prices are the primary culprit in this mess.” Government actions typically have harmful unintended consequences.
Market Misperceptions
By , Bloomberg.com, 03/17/2008
MarketMinder's View: Weren’t rising oil prices the bane of our existence just last week? Now falling prices spell doom? Short-term swings in oil prices are a function of demand, not of fundamentals, and aren’t predictive for stocks.
Market Misperceptions
By , The Telegraph, 03/17/2008
MarketMinder's View: When you see that the economy is still growing you can be sure that the US economy is not “falling apart.”
Market Misperceptions
By , Barron’s, 03/17/2008
MarketMinder's View: Be wary of data interpretations—especially when stretched to prove a certain point. Unemployment is at historic lows.
Market Misperceptions
By , The Wall Street Journal, 03/17/2008
MarketMinder's View: While Bear’s collapse dominates headlines, the Fed’s quick actions to provide liquidity and assurance should be noted.
Sensible Stories
By , MarketWatch, 03/17/2008
MarketMinder's View: Some portray the Fed’s actions as desperate, but we see the actions as innovative and appropriate.
Sensible Stories
By , Times Online, 03/17/2008
MarketMinder's View: Don’t underestimate the power of globalization. Rather than escaping a downturn that does not yet exist, the booming Asian economies can provide stimuli to drive global growth. Good news at home and abroad
Market Misperceptions
By , Washington Post, 03/17/2008
MarketMinder's View: Ignore conjecture this is anything more good business practice.
Sensible Stories
By , The Wall Street Journal, 03/14/2008
MarketMinder's View: Politicians saying no to more money and allowing it to be used in a more efficient capacity by the private sector—we never thought we’d see the day.
Sensible Stories
By , The Wall Street Journal, 03/14/2008
MarketMinder's View: Sound advice. Always remember markets are driven by human behavior in addition to fundamentals, and uncertainty and risk will always be a part of investing.
Sensible Stories
By , Forbes.com, 03/14/2008
MarketMinder's View: Governments working together to solve anything makes us sick to our stomachs. We’re hard pressed to think of one thing governments do efficiently...well, other than being inefficient.
Market Misperceptions
By , The Wall street Journal, 03/14/2008
MarketMinder's View: “The economists, on average, forecast meager economic growth -- just 0.1% at an annual rate in the current quarter, and 0.4% in the second.” When people now have to re-define recession definitions to fit into people’s world view, we’ve entered a period where pessimism reigns and everything else is out the window. Additionally, the US is only ¼ of the world’s GDP; shouldn’t we be focused more on the other 75% that is still quite strong?
Market Misperceptions
By , The Associated Press, 03/14/2008
MarketMinder's View: While this issue deserves investor attention, so far market reaction has been disproportionately negative. We’d advise putting this into proper perspective and context before coming to hasty conclusions.
Market Misperceptions
By , Bloomberg.com, 03/14/2008
MarketMinder's View: The depths they won’t plumb for an attention-grabbing headline. We don’t even know where to start with what’s wrong with this comparison.
Sensible Stories
By , U.S. News and World Report, 03/14/2008
MarketMinder's View: We don’t agree with all his points, but without question sentiment doesn’t currently match reality.
Market Misperceptions
By , Financial Times, 03/14/2008
MarketMinder's View: This is sort of like saying stamps reach a record high of $0.41!!! After inflation though, gold is well off the highs reached years ago.
Market Misperceptions
By , 03/14/2008
MarketMinder's View: Currencies do not meaningfully correlate with global stock performance—and for global investors one currency’s relative weakness is another’s strength. (See our recent Cover Story, “Mint Dollar Chip,” 3/11/2008 for more.)
Market Misperceptions
By , CNNMoney.com, 03/14/2008
MarketMinder's View: And cue the Jaws theme music. Up, down, sideways, slantways, deasil, widdershins—prices are volatile month to month, the indexes measuring them make many assumptions, and the numbers are usually subject to revision. In sum, inflation remains benign. Ignore.
Market Misperceptions
By , CNNMoney.com, 03/13/2008
MarketMinder's View: Monthly retail numbers are backwards-looking, miss the big picture and are subject to revisions. Be wary.
Sensible Stories
By , The Wall Street Journal, 03/13/2008
MarketMinder's View: Not all places see a decline in home values. The old adage, “location, location, location,” couldn’t be more true.
Market Misperceptions
By , Bloomberg.com, 03/13/2008
MarketMinder's View: “More than 223,000 properties were in some stage of default, or 1 in every 557 U.S. households.” Some perspective—1 in every 557 translates to a mere 0.2%.
Market Misperceptions
By , CNNMoney.com, 03/13/2008
MarketMinder's View: We have to applaud this one on the fear scale, 60% sounds scary, doesn’t it? What they don’t tell you is that the budget deficit as a % of GDP is about average over the past 25 years and that deficits don’t even mean bad things for future equity returns. Quit worrying about this!
Market Misperceptions
By , CNNMoney.com, 03/13/2008
MarketMinder's View: We find this hard to believe, since mortgage rates are near historic lows.
Sensible Stories
By , National Review Online, 03/13/2008
MarketMinder's View: “The less a government does, the fewer reasons there are for individuals, businesses, universities, and state and local governments to petition their government for special favors.” Exactly. Politicians who denounce special interest lobbying have no one to blame but themselves.
Dueling Headlines
By , MarketWatch, 03/13/2008
MarketMinder's View: We’re confused too.
Sensible Stories
By , The Wall Street Journal, 03/13/2008
MarketMinder's View: We’re far from the 1970s but if politicians out there want to believe that and it helps in passing a massive capital gains tax cut, who are we stand in their way?
Sensible Stories
By , Globe and Mail, 03/13/2008
MarketMinder's View: Finally, someone who points out that they matter very little—especially as they relate to equity markets.
Market Misperceptions
By , Associated Press via My Fox, 03/13/2008
MarketMinder's View: Holy cow, the Apocalypse is here! We’re ignoring the ‘Girl Scout Cookie Economic Indicator,’ and you should too.
Sensible Stories
By , Café Hayek, 03/13/2008
MarketMinder's View: “My view of the world is that when we widen the ability of our fellow citizens and ourselves to trade with people other than just our own kind or nationality or religion or color, that that in turn allows trade to take place more productively. That in turn creates wealth, a higher standard of living.” Amen.
Market Misperceptions
By , The Washington Post, 03/13/2008
MarketMinder's View: Is Paulson trying to create the next Sarbanes-Oxley?
Market Misperceptions
By , Financial Times, 03/13/2008
MarketMinder's View: High gold or oil prices needn’t cause panic. See our cover story, “It’s a Materials World” 3/13/2008, for why.
Market Misperceptions
By , Financial Times, 03/13/2008
MarketMinder's View: Carlyle’s collapse isn’t symptomatic of widespread credit crisis. It’s the result of one fund’s risky bet that didn’t pan out. For more, see our cover story, “The Trouble with Carlyle,” 3/7/2008.
Sensible Stories
By , The Wall Street Journal WSJ Editorial Staff, 03/13/2008
MarketMinder's View: What a mess subsidies make! They distort markets globally (and prices of goods) and are exceedingly expensive for Joe Taxpayer!
Sensible Stories
By , The New York Times, 03/13/2008
MarketMinder's View: Ignore the silliness about “fair trade.” Globalization can be a powerful tool to alleviate poverty and reduce violence.
Sensible Stories
By , The Wall Street Journal, 03/13/2008
MarketMinder's View: “A tax on capital gains is a tax on the hard work and risk-taking people undertake to build their own wealth.” Exactly.
Sensible Stories
By , Businessweek, 03/12/2008
MarketMinder's View: Innovation, increased stability, and more liquidity—this is a great tactical move from the Fed.
Market Misperceptions
By , BBC News, 03/12/2008
MarketMinder's View: As always, the trade deficit is a meaningless statistic.
Sensible Stories
By , The Wall Street Journal, 03/12/2008
MarketMinder's View: A good review of the Fed’s recent liquidity injection and its expected impact.
Sensible Stories
By , The Economist, 03/12/2008
MarketMinder's View: Interesting article about Japan and the hierarchy of corporate power.
Sensible Stories
By , CNNMoney, 03/12/2008
MarketMinder's View: A weak dollar isn’t a significant negative for stocks and is even a positive for US exporters.
Market Misperceptions
By , The Nation, 03/12/2008
MarketMinder's View: Make no mistake—US consumers on the whole are just fine.
Market Misperceptions
By , Financial Times, 03/12/2008
MarketMinder's View: Geez! These are some scary figures. But these are doomsday “what ifs,” not realities.
Sensible Stories
By , The Wall Street Journal, 03/12/2008
MarketMinder's View: A rational and informative view on today’s TIPS market.
Market Misperceptions
By , CNNMoney.com, 03/12/2008
MarketMinder's View: “There is the hope that the credit crunch is over but it's not founded in reality.” We would argue the credit crunch itself is not a reality—it’s a credit reallocation, not a crunch. Overall lending remains strong.
Sensible Stories
By , Money Magazine, 03/12/2008
MarketMinder's View: These are great reasons to remain rational during turbulent markets. Note: We recommend you ignore the age-based allocation pie charts.
Sensible Stories
By , Forbes, 03/12/2008
MarketMinder's View: “It is hard to imagine why it could be best to shift hundreds of millions of dollars in wealth from the broad base of a corporation's public shareholders toward government coffers.”
Sensible Stories
By , Financial Times, 03/12/2008
MarketMinder's View: The perils of too much regulation—sort of like a cat chasing its tail.
Sensible Stories
By , MarketWatch, 03/12/2008
MarketMinder's View: Maybe, maybe not—it’s impossible to time it exactly right, but we do see equities as attractive at the moment. For a discussion on yesterday’s developments, please see our commentary “Pawning Stocks.”
Market Misperceptions
By , The New York Times, 03/12/2008
MarketMinder's View: Remember, though private equity guys might be weak, they’re a small part of total M&A.
Sensible Stories
By , Barron’s, 03/11/2008
MarketMinder's View: Insight into why popular inflation indicators may be misleading.
Sensible Stories
By , via CNNMoney.com, 03/11/2008
MarketMinder's View: Another example of Fed innovation! Though this latest action is relatively small compared with daily interbank activity, it shows the Fed’s ability to act quickly and creatively.
Sensible Stories
By , The Telegraph, 03/11/2008
MarketMinder's View: Sometimes you just need some perspective.
Sensible Stories
By , The Times, 03/11/2008
MarketMinder's View: Global consumers are alive and healthy, thanks to a growing global economy.
Sensible Stories
By , via MSNBC.com, 03/11/2008
MarketMinder's View: While we have no opinion on the House’s latest battle, we like Congress’s continued distraction from interfering with free markets.
Sensible Stories
By , Forbes, 03/11/2008
MarketMinder's View: “We’re in neither a recession nor an across-the-board bear market.” We agree.
Market Misperceptions
By , International Business Times, 03/11/2008
MarketMinder's View: Or maybe pork bellies? How about cheetah futures? Avoid heat chasing in all its guises.
Market Misperceptions
By , The Wall Street Journal, 03/11/2008
MarketMinder's View: But does a “weak” dollar really hurt us? For more, see our cover story “Mint Dollar Chip,” 03/11/2008.
Market Misperceptions
By , The Wall Street Journal, 03/11/2008
MarketMinder's View: And? This is a meaningless statistic, on par with calculating your own personal trade “deficit” with a local pizza place.
Market Misperceptions
By , International Business Times, 03/11/2008
MarketMinder's View: And Ohio’s is higher and Texas’s is way lower. Overall, US unemployment is 4.8%—still historically benign.
Market Misperceptions
By , The Washington Post, 03/11/2008
MarketMinder's View: Sure, gas prices are up. But per capita disposable income is up vastly more.
Sensible Stories
By , Times Online, 03/11/2008
MarketMinder's View: As opposed to claims that gold prices signal inflationary pressures, much of the rise in price is as a result of good old fashioned demand for the commodity.
Market Misperceptions
By , The Economist, 03/11/2008
MarketMinder's View: We’re not sure we buy the Champagne indicator as a sign of decoupling. Maybe people just prefer California bubbly! Don’t be swayed by narrow, trendy indicators.
Market Misperceptions
By , The New York Times, 03/10/2008
MarketMinder's View: “The high growth rate means hundreds of millions of people are, for the first time, getting access to the basics of life, including a better diet.” The demand for grain should be welcomed, not feared.
Market Misperceptions
By , Barron’s, 03/10/2008
MarketMinder's View: Like Humpty Dumpty, this article’s argument is full of cracks.
Market Misperceptions
By , MSNBC.com, 03/10/2008
MarketMinder's View: Snooze—this news is very well priced into markets.
Market Misperceptions
By , via The Wall Street Journal, 03/10/2008
MarketMinder's View: The state of China’s trade balance doesn’t really matter—it’s just a function of global supply and demand.
Sensible Stories
By , Barron’s, 03/10/2008
MarketMinder's View: We like it when quotes are used from The Godfather, especially one so apt: “These things gotta happen every five to 10 years. It helps get rid of the bad blood.” Regret-shunning and moving on are aspects of a well-functioning market.
Market Misperceptions
By , Times Online, 03/10/2008
MarketMinder's View: Who knew the US had two consecutive quarters of GDP contraction already? Last time we checked Q4 growth was positive, not negative.
Market Misperceptions
By , CNNMoney.com, 03/10/2008
MarketMinder's View: We’ve seen headlines like this every time oil hits another “high” mark, but consumer spending continues to grow in spite of it.
Market Misperceptions
By , Los Angeles Times, 03/10/2008
MarketMinder's View: A classic doomsday scenario and further evidence of today’s overly gloomy sentiment.
Sensible Stories
By , Financial Times, 03/10/2008
MarketMinder's View: Politicians of all stripes and colors are eager to pander to the base, especially during election season. At the moment, we’re hoping all the anti-trade talk is just that—talk.
Sensible Stories
By , Reuters, 03/10/2008
MarketMinder's View: With global and domestic demand for Chinese goods high and a workforce constrained, China may have economic problems to deal with down the road.
Sensible Stories
By , via International Business Times, 03/10/2008
MarketMinder's View: Global demand for goods and services remains strong.
Sensible Stories
By , The Wall street Journal, 03/10/2008
MarketMinder's View: “The average American household is doing pretty well.” We’d agree.
Sensible Stories
By , Barron’s, 03/10/2008
MarketMinder's View: America needn’t worry over foreign competition as much as political hand-cuffing.
Sensible Stories
By , The Economist, 03/10/2008
MarketMinder's View: Even the oracles of the dismal science see nothing like an economic Armageddon this year.
Market Misperceptions
By , The New York Sun, 03/07/2008
MarketMinder's View: Wild doomsday predictions such as these should be avoided at all costs.
Sensible Stories
By , The Wall Street Journal, 03/07/2008
MarketMinder's View: A 1972 presidential candidate argues nicely against paternalistic regulation in areas from mortgages to healthcare to pay-day loans.
Sensible Stories
By , Financial Times, 03/07/2008
MarketMinder's View: Maybe British politicians should look to America for inspiration here—American politicians have almost perfected the art of doing nothing.
Sensible Stories
By , Financial Times, 03/07/2008
MarketMinder's View: We knew the French were behind this somehow!
Sensible Stories
By , The Wall Street Journal, 03/07/2008
MarketMinder's View: An interesting take on sovereign wealth funds. Surprise! America has them too.
Market Misperceptions
By , The AP, 03/07/2008
MarketMinder's View: Oh, thank heavens! We were breathing into a paper bag at the prospect we’d be unable to redeem our cards for one of those neato “Wowwee Robopanda Interactive Robots.”
Market Misperceptions
By , MSNBC.com, 03/07/2008
MarketMinder's View: After this morning’s employment report, expect to see more stories peddling fear and hysteria.
Sensible Stories
By , Bloomberg.com, 03/07/2008
MarketMinder's View: Major non-US central banks, like the European Central Bank (ECB) and the Bank of Japan (BOJ) have elected to hold firm on interest rates—a sign they expect continued solid growth outside the US. And if the world grows, the US is likely to get dragged along for the ride.
Market Misperceptions
By , The Wall Street Journal, 03/07/2008
MarketMinder's View: Home equity has been declining for years—the recent downturn simply broadcasts the decline more widely. We’ve thus far escaped major government intervention, which ultimately makes any situation far worse. Fingers crossed the trend continues.
Market Misperceptions
By , Reuters, 03/07/2008
MarketMinder's View: Does anyone remember the last time we had falling house prices? Right around the mid-1990s. What followed was not economic peril, but a booming economy and stock market.
Market Misperceptions
By , ABC News, 03/07/2008
MarketMinder's View: Expect plenty more regret shunning and finger pointing.
Sensible Stories
By , Briefing.com, 03/07/2008
MarketMinder's View: The Fed’s term auction facility is a new innovation for injecting liquidity into credit markets. And it’s a good example of modern central banks’ flexibility and strength.
Market Misperceptions
By , Bloomberg.com, 03/07/2008
MarketMinder's View: Note that though jobs were lost, the unemployment rate declined to 4.8%. Monthly job reports are subjective, inexact, and undergo short-term swings and revisions. For more, see today’s rerun of January’s cover story, “Employment Drizzle.”
Sensible Stories
By , Investor’s Business Daily, 03/06/2008
MarketMinder's View: “If the U.S. managed its economy as poorly as OPEC's member nations have managed theirs, OPEC would have no market to sell to.” Amen!
Sensible Stories
By , The New York Times, 03/06/2008
MarketMinder's View: The US and European economies are different. But make no mistake, the global economy as a whole remains strong, and the US is not likely to veer away from the rest of the world—we’re too integrated.
Sensible Stories
By , The Wall Street Journal, 03/06/2008
MarketMinder's View: “…recent margin prices aren't representative of the underlying recoverable value of these securities.” Good point. This is the case with many mortgage-backed securities. Still, if you take the risks, you should be ready to suffer the consequences as well as reap the rewards—this is capitalism, folks.
Market Misperceptions
By , Thomson Financial News, 03/06/2008
MarketMinder's View: The ISM news headlines seemed to portend ultimate economic destruction a week ago. Today’s upward revision is getting the lack of attention the survey deserves.
Sensible Stories
By , Investor’s Business Daily, 03/06/2008
MarketMinder's View: Why shouldn’t we all?
Market Misperceptions
By , National Post, 03/06/2008
MarketMinder's View: “There's no denying the economic turmoil brought on by rapidly changing currency values.” Yes there is. The “turmoil” is mostly perceived, not real. Plus, currency moves are zero sum—and not predictive of stock market returns.
Sensible Stories
By , Investor’s Business Daily, 03/06/2008
MarketMinder's View: So much for that worry!
Market Misperceptions
By , The New York Times, 03/06/2008
MarketMinder's View: Whiner, Whiner, Data-Miner! A ridiculous attempt to spook folks by reviving methods from the 1870s. No matter how you slice it, unemployment numbers remain benign.
Market Misperceptions
By , Times Online, 03/06/2008
MarketMinder's View: Every once in a while, Malthusians emerge. Luckily, they’re sure to be as right this time as they were then.
Sensible Stories
By , The Wall Street Journal, 03/06/2008
MarketMinder's View: As opposed to government tinkering, let’s just let the market work.
Sensible Stories
By , Associated Press, 03/06/2008
MarketMinder's View: Looks like a once bitten, twice shy plan. A market-driven solution is a good one, in our view.
Sensible Stories
By , The Washington Times, 03/06/2008
MarketMinder's View: “One difference between politicians and businessmen is what they want. Politicians want votes. Businessmen want profits.” We prefer the profit motive.
Market Misperceptions
By , The Wall Street Journal, 03/06/2008
MarketMinder's View: Poppycock! By and large, borrowers with healthy credit can access capital—and they are! Ignore this overhyped gobbledygook.
Sensible Stories
By , The Wass Street Journal, 03/06/2008
MarketMinder's View: In a free-thinking, free-market society, there will be failure. Not only is it okay, it’s better for the economy over the long haul.
Sensible Stories
By , The Wall Street Journal, 03/05/2008
MarketMinder's View: Raising taxes to create more government patronage jobs is never a good thing.
Sensible Stories
By , Reuters, 03/05/2008
MarketMinder's View: The selection of the Democratic nominee may drag on, creating greater short-term political uncertainty—and markets hate increased uncertainty.
Sensible Stories
By , Financial Times, 03/05/2008
MarketMinder's View: We don't agree with the "crunch" part, but supply is relatively constrained and demand remains high because the global economy is still strong—not surprising to see high prices.
Market Misperceptions
By , Associated Press, 03/05/2008
MarketMinder's View: When headlines like this start to appear, it’s possible the real worries are already reflected in stock prices.
Market Misperceptions
By , Times Online, 03/05/2008
MarketMinder's View: Wasn’t the strength (or weakness) in services what everyone was most worried about?
Sensible Stories
By , Briefing.com, 03/05/2008
MarketMinder's View: More evidence long-term investors should not try to time short-term trends.
Sensible Stories
By , The Wall Street Journal, 03/05/2008
MarketMinder's View: Overly conservative estimates that lead to mark-ups down the line? That wouldn’t surprise us.
Market Misperceptions
By , Bloomberg, 03/05/2008
MarketMinder's View: Gridlock after a rise of 0.01%? C’mon.
Sensible Stories
By , Bloomberg, 03/05/2008
MarketMinder's View: A prime example of oil companies making record profits and reinvesting them to find more oil. Big profits and big reinvestment is good for them and good for the economy—capitalism at its finest. Proposed taxes on windfall profits would only hinder this process.
Market Misperceptions
By , CNBC, 03/05/2008
MarketMinder's View: Starbucks? Guinness? Didn’t we used to be a nation of Folgers and Budweiser drinkers? Maybe one reason food prices are rising is because folks are willing and able to pay for premium goods.
Market Misperceptions
By , CNBC, 03/05/2008
MarketMinder's View: We don’t put much stock in monthly, much less weekly, numbers. But it’s hard to argue for a true credit crunch with mortgage rates moving lower.
Sensible Stories
By , The New York Times, 03/04/2008
MarketMinder's View: Reason #434,985 why government intervention in free markets is woefully misguided: It can divert crop production away from important things like, say, food.
Market Misperceptions
By , The Times, 03/04/2008
MarketMinder's View: When pundits argue whether the economy will have a hard or soft landing, it’s likely there won’t be a landing at all—especially when the hard landing camp says, “It’s different this time.”
Sensible Stories
By , Financial Times, 03/04/2008
MarketMinder's View: We love do-nothing legislative agendas—and so do markets!
Sensible Stories
By , Financial Times, 03/04/2008
MarketMinder's View: Why current issues surrounding banks might not be as bad for employment as many predict.
Market Misperceptions
By , The Daily Telegraph, 03/04/2008
MarketMinder's View: Put your nunchakus away—using Oakland, CA as a barometer for the entire US subprime fallout is like assuming the Oakland A’s will win the World Series based on their spring training performance. Small sample size!
Sensible Stories
By , The Wall Street Journal, 03/04/2008
MarketMinder's View: Don’t lie—we know a few of you were worried.
Market Misperceptions
By , Yahoo!Finance, 03/04/2008
MarketMinder's View: Buy silver coins? What’s next, baseball cards?
Market Misperceptions
By , CNNMoney, 03/04/2008
MarketMinder's View: How is this new? We’ve been hearing about this for 6 months now.
Market Misperceptions
By , BusinessWeek, 03/04/2008
MarketMinder's View: Trying to time short-term swings—like a single month—can be fraught with peril. Ignore near-term volatility—it’s not predictive.
Sensible Stories
By , The New York Times, 03/04/2008
MarketMinder's View: We’re not crazy about that headline, because American consumers are doing just fine, but strong corporate balance sheets are the opposite of a liquidity crisis.
Sensible Stories
By , Bloomberg, 03/04/2008
MarketMinder's View: Despite writedowns, most banks are still solvent and flush with cash.
Market Misperceptions
By , BBC, 03/04/2008
MarketMinder's View: Government intervention in capital markets is typically disastrous, so we don’t see how regulating pig markets could be successful. However, we are amused the MP supporting the pig industry has the surname, Bacon.
Sensible Stories
By , The Wall Street Journal, 03/04/2008
MarketMinder's View: Sing it loud, sing it clear: “The decline in the dollar is part of a normal market process, it really should not worry us.”
Market Misperceptions
By , Associated Press, 03/03/2008
MarketMinder's View: The key take-away from this mixed-bag of survey results? Nothing is conclusive. Ignore.
Market Misperceptions
By , The New York Times, 03/03/2008
MarketMinder's View: Sure, some home values have fallen. But given aggregate borrowing costs are lower today—not higher—it’s hard to imagine a true bubble scenario emerging. Fear of a bubble and an actual bubble are two very distinct things.
Sensible Stories
By , Briefing.com, 03/03/2008
MarketMinder's View: Despite fears otherwise, banks are still willing to lend.
Sensible Stories
By , City Journal, 03/03/2008
MarketMinder's View: It should come as no surprise that a move toward freer markets led to increased prosperity.
Sensible Stories
By , Barron’s, 03/03/2008
MarketMinder's View: From housing to spending, the consumer is doing just fine! The measures of consumer health are often distorted.
Market Misperceptions
By , MarketWatch, 03/03/2008
MarketMinder's View: We don’t find this report alarming. Don’t put too much stock in monthly indicators—they’re typically backward-looking.
Market Misperceptions
By , The Telegraph, 03/03/2008
MarketMinder's View: This must mean that journalists have fine-tuned their arguments to scare as many people out of stocks as possible, don’t be one of them.
Sensible Stories
By , Bloomberg.com, 03/03/2008
MarketMinder's View: Never forget—bonds suffer price volatility too! But just like with stocks, fear and volatility aren’t predictive.
Sensible Stories
By , The Wall Street Journal, 03/03/2008
MarketMinder's View: Free trade doesn’t cause job loss or company relocation—high state taxes and strict work regulations do.
Market Misperceptions
By , Barron’s, 03/03/2008
MarketMinder's View: Beware the latest in heat chasing: Wheat chasing. The commodities market, like all freely traded markets, can be extremely fickle and volatile. It’s best always to make decisions based on fundamentals, not herd mentality.
Market Misperceptions
By , Fortune, 03/03/2008
MarketMinder's View: The very fact that this story will surely be well-received is bullish, stocks are cheap but no one thinks so!
Market Misperceptions
By , Daily Telegraph, 03/03/2008
MarketMinder's View: Such impatience! The effects from Fed rate cuts normally take months to feel.
Market Misperceptions
By , MarketWatch, 03/03/2008
MarketMinder's View: Despite all the fears tied to bond insurers, states are still issuing municipal bonds sans insurance and finding buyers.
Sensible Stories
By , Financial Times, 03/03/2008
MarketMinder's View: Let’s hope some don’t move too far away from those “Chicago Boys.”