Home → Fisher Investments MarketMinder Headlines → 06-2007 Archives

Market Misperceptions
By , The Washington Post, 06/29/2007
MarketMinder's View: If the media agrees a trend is over, it almost certainly is not.
Market Misperceptions
By , MSN Money, 06/29/2007
MarketMinder's View: Good drama—bad facts. There just aren’t that many subprime mortgagees in real trouble as a percent of the total market, they won’t organize to default all at once, and fixed rates are still historically low! Read our commentary “House of Horrors.”
Sensible Stories
By , The Wall Street Journal, 06/29/2007
MarketMinder's View: Inflation remains tame, personal income is up, and consumption is up. All good news!
Sensible Stories
By , Bloomberg, 06/29/2007
MarketMinder's View: We agree—any indicator widely known and broadly used is a powerless predictor. But be careful—should the consensus agree it’s worthless, it may have power again. To beat the market, you must look where few others are looking.
Sensible Stories
By , Café Hayek, 06/29/2007
MarketMinder's View: Which is better? “Free” universal healthcare, or a free market? When in doubt, opt for the free market.
Market Misperceptions
By , Barron’s, 06/29/2007
MarketMinder's View: Stocks are not serially correlated. If price movements form interesting patterns, that’s nice, but don’t use that to predict future moves unless you don’t care about losing money.
Sensible Stories
By , The Washington Post, 06/29/2007
MarketMinder's View: Yes! Political gridlock means legislative risk aversion should ease, driving stocks higher. Bullish!
Sensible Stories
By , Bloomberg, 06/29/2007
MarketMinder's View: Learn to deal with the taxes? No! Private-equity acquisitions have played a large role in driving this bull market. Increasing taxes for these firms could negatively impact stocks, though private equity firms could simply incorporate in tax-friendlier nations. Keep an eye on this development.
Sensible Stories
By , The New York Times, 06/29/2007
MarketMinder's View: Despite media reports to the contrary, merger mania rolls on. Cash-based mergers reduce stock supply, which, all else being equal, drives stock prices higher.
Market Misperceptions
By , MSN Money, 06/29/2007
MarketMinder's View: Strategies like these are long on risk and short on risk-management. None of these folks have a plan for what happens if their bets are wrong. Aiming for big absolute returns means you can end up with huge losses. Always ask, “What if I’m wrong?”
Sensible Stories
By , The Washington Post, 06/29/2007
MarketMinder's View: Bravo to the Brits for averting disaster. From a human standpoint, terrorist attacks are devastating, but from a stock market standpoint, you needn’t fear terrorist attacks. They lack the power to make a lasting impact on stocks. The terrorist lose, the market wins.
Sensible Stories
By , CNNMoney.com, 06/29/2007
MarketMinder's View: If hundreds of folks are camping out for a shot at paying 500 bucks for a phone, things in the US can’t be that bad economically . . .
Market Misperceptions
By , USA Today, 06/28/2007
MarketMinder's View: A single company’s stock falls three days in a row shortly after an IPO, and that’s an indisputable sign of the end of times? Hardly. Stock price movements tell you nothing about future movements—for the company, or the market. Further, long term interest rates are still historically low—money is still very cheap and easy.
Market Misperceptions
By , MSNBC, 06/28/2007
MarketMinder's View: . . . in the US, but global growth is robust. And the market is positive! Nothing to see here, move along.
Sensible Stories
By , The New York Times, 06/28/2007
MarketMinder's View: A wonderful illustration of the many benefits of globalization. Further, here’s proof we needn’t fret our trade deficit. Importing those iPod components creates a trade deficit, but Apple sells iPods at a hefty mark-up, increasing profits and shareholder value. Everyone wins!
Market Misperceptions
By , The Wall Street Journal, 06/28/2007
MarketMinder's View: It’s October of 1987 all over again. The cheap money era is over. Runaway inflation. India and China. Housing bubble. Subprime implosion. Here’s the weirdest one – markets are no longer “placid?” When were markets ever “placid?” So much negativity signals a massive, well-discounted wall of worry for this bull to climb.
Market Misperceptions
By , MarketWatch, 06/28/2007
MarketMinder's View: This economy just can’t win—if GDP gets revised down, then the press squawks, “Growth is slowing, and that’s bad!” If GDP is revised up, then they cry, “Inflation is spiking, and that’s bad!”
Sensible Stories
By , Bloomberg, 06/28/2007
MarketMinder's View: See? Governmental tinkering = riots and violence. Iran’s governmentally set, artificially low prices have increased domestic demand dramatically so they must ration fuel—and they have the world’s 2nd largest energy reserve! Americans may hate high gas prices, but at least we can buy whenever we want.
Sensible Stories
By , Bloomberg, 06/28/2007
MarketMinder's View: More signs of economic strength in Europe’s largest economy.
Sensible Stories
By , TCS Daily, 06/28/2007
MarketMinder's View: Governmental tinkering in free markets nearly always leads to unintended consequences. Mandating cars be more gas efficient will likely lead to 1.) MORE gas consumption and 2.) less safe cars. Good work, poli-tics!
Market Misperceptions
By , Bloomberg, 06/28/2007
MarketMinder's View: Of course billionaire CEOs take lower salaries than their brethren. Why pay income tax if you don’t have to? No meaningful conclusions can be drawn from this study.
Sensible Stories
By , The Wall Street Journal, 06/28/2007
MarketMinder's View: Get to know the new Prime Minister of the world’s second largest economy.
Market Misperceptions
By , The Sydney Morning Herald, 06/28/2007
MarketMinder's View: This is awesome for two reasons (despite the fact reading it made us feel slightly awkward). It reminds us all investments—even bonds—have a risk of loss and thinking otherwise is simply irrational. Also, outrageous comments like these signal the bull market is far from over.
Market Misperceptions
By , Morningstar.com, 06/28/2007
MarketMinder's View: The real risk isn’t a systemic breakdown in the credit markets; it’s overreaction by poli-tics. Just see today’s story of interest “Iran Rations Gasoline, Sparks Protest in Tehran” for more evidence why.
Market Misperceptions
By , The Wall Street Journal, 06/28/2007
MarketMinder's View: The more folks agree the buyout boom is ending, the longer it will run.
Sensible Stories
By , Yahoo! Finance, 06/28/2007
MarketMinder's View: The Fed’s not fretting subprime, and neither should you.
Sensible Stories
By , The Wall Street Journal, 06/27/2007
MarketMinder's View: Further evidence of how easily and quickly energy supply disruptions can happen—such events keep oil prices high.
Market Misperceptions
By , Marketwatch, 06/27/2007
MarketMinder's View: Might we humbly point out credit markets are showing no such sign of danger, and US consumers have kept chugging along for over a year since the subprime story broke.
Market Misperceptions
By , Morningstar, 06/27/2007
MarketMinder's View: MarketMinder faithful know stocks aren’t serially correlated—which means past performance has no bearing whatsoever on future returns. Ignore chart augury.
Sensible Stories
By , Kudlow’s Money Politics, 06/27/2007
MarketMinder's View: A brief commentary putting subprime fears into perspective.
Sensible Stories
By , 06/27/2007
MarketMinder's View: We continue to be impressed by Mr. Paulson’s pro-market agenda.
Market Misperceptions
By , Marketwatch, 06/27/2007
MarketMinder's View: Mixed into this otherwise downbeat story is an interesting quote, “The durable-goods orders are very volatile from month to month. So far in the first five months of 2007, orders are up 0.5% compared with a year ago.” So perhaps things aren’t as bad as some would have you believe. Either way, ignore volatile backward-looking monthly reports.
Sensible Stories
By , Bloomberg, 06/27/2007
MarketMinder's View: Sarkozy is a man to watch. He might be pro-capitalism, but there’s a dangerous streak of protectionist blood in his veins too. (See our past commentary, “French Fries Redux” for more.)
Market Misperceptions
By , Kiplinger, 06/27/2007
MarketMinder's View: Be wary of “new products” with “guaranteed income,” the additional insurance often comes at a high price. Risk is always and everywhere associated with potential return.
Market Misperceptions
By , Newsvine, 06/27/2007
MarketMinder's View: As the Fed meets, get set for lots of media stories over-hyping inflation risks, the housing slowdown, consumers, and concerns over the credit market, providing plenty of stories to ignore over the next few days.
Sensible Stories
By , Morningstar, 06/27/2007
MarketMinder's View: A voice of reason…
Market Misperceptions
By , Kiplinger, 06/27/2007
MarketMinder's View: No! PEs have no meaningful relationship with future stock price movements. Furthermore, valuations for the overall market are well within historical norms.
Market Misperceptions
By , CNNMoney, 06/27/2007
MarketMinder's View: This article purports “wealth is becoming ever more concentrated among the richest of the rich worldwide.” Unfair! Oh, but wait, it appears the ranks of millionaires are growing at an unprecedented rate, i.e., the opposite of “more concentrated.”
Market Misperceptions
By , The Financial Times, 06/27/2007
MarketMinder's View: Retailers’ excuses are always entertaining. It was too cold! It was too hot! Easter came early! Easter came late! Gas is higher! Gas is lower! You name it, they have an excuse. The bottom line is consumers worldwide wide are doing just fine and the global economy still remains quite strong.
Sensible Stories
By , Cato@Liberty, 06/27/2007
MarketMinder's View: “We…have a system that is now geared towards rewarding effort and entrepreneurship.” The flat tax contagion lives on! Well, for those who want to attract business, that is…
Market Misperceptions
By , The Wall Street Journal, 06/27/2007
MarketMinder's View: “Amid rising interest rates, slowing economic growth and continued strong stock-market performance, a growing number of money managers believe U.S. stocks are overvalued.” Here is the consensus argument against the US stock market. The consensus can never be right because by definition their opinion is priced in to stocks. Now you know what you can ignore.
Market Misperceptions
By , newsvine.com, 06/26/2007
MarketMinder's View: It’s not surprising poli-tics can’t fathom that less regulation is indeed in the best interest of employees and shareholders. And pretty much everyone else.
Sensible Stories
By , The Financial Times, 06/26/2007
MarketMinder's View: Deregulation is a great thing and should do wonders for South Korea. The downside is in 10 years we may have to put up with articles about how Seoul is “overtaking London as the financial capital of the world.”
Market Misperceptions
By , The Wall Street Journal, 06/26/2007
MarketMinder's View: Just in case sub-prime woes are not already fully reflected in today’s stock prices and have any power to impact the market. . . this should finish the job. Stop fretting sub-prime—as we say at MarketMinder, “It’s priced.”
Sensible Stories
By , The Wall Street Journal, 06/26/2007
MarketMinder's View: Strong gasoline demand + tight refining capacity = continued high energy prices and a good time to be in energy stocks. (And a great time to play “find the poli-tic hectoring about price gouging!” Fun!)
Sensible Stories
By , TCS Daily, 06/26/2007
MarketMinder's View: May we be so bold as to suggest a way to lower gas prices? Fire every senator, and replace them with those who have demonstrated competency in understanding basic supply and demand.
Sensible Stories
By , Kiplinger, 06/26/2007
MarketMinder's View: Sentiment towards housing is bearish. Bad news? No! As we’ve detailed at MarketMinder, the outcome won’t be what most folks expect, providing a positive surprise to goad stock prices higher.
Market Misperceptions
By , MarketWatch, 06/26/2007
MarketMinder's View: What has the market done over the last 10 months? If you were guided by consumer confidence, you’d have missed some great returns. Consumer confidence numbers are backward looking and not predictive for stocks.
Sensible Stories
By , The Baltimore Sun, 06/26/2007
MarketMinder's View: As a wise man said years ago, the nine most terrifying words in the English language are “I’m from the government and I’m here to help.”
Market Misperceptions
By , MarketWatch, 06/26/2007
MarketMinder's View: Scary! But wait, the index “is restricted to 20 cities.” San Francisco, but not San Jose? (San Jose’s a larger city!) Phoenix but not Philadelphia? Cleveland but not Cinci? Makes no sense. Plus, this meaningless index is only down 2.1%. Ignore.
Market Misperceptions
By , Iinvestors.com, 06/26/2007
MarketMinder's View: “As chart formations go, the cup without handle is one of the easiest to recognize,” and therefore, completely useless.
Sensible Stories
By , Globe and Mail, 06/26/2007
MarketMinder's View: A market risk to watch, globally. Greater political oversight of free markets is concerning. Remember the Dubai Ports World fiasco . . .
Market Misperceptions
By , Bloomberg, 06/26/2007
MarketMinder's View: This is based on a number of faulty assumptions. To start, global stocks are far more correlated than most folks fathom—globalization makes no nation, not even an emerging one, an island.
Sensible Stories
By , The Financial Times, 06/26/2007
MarketMinder's View: What has competition done for Europe? That question is “perhaps best answered by the citizens of Estonia or the Czech Republic, new EU member states with painful memories of what an economy without free competition looks like.”
Sensible Stories
By , CNN-Money.com, 06/26/2007
MarketMinder's View: No.
Market Misperceptions
By , The New York Times, 06/26/2007
MarketMinder's View: Until earnings yields fall below bond yields globally, we feel any talk about declining M&A activity is premature.
Sensible Stories
By , The New York Times, 06/26/2007
MarketMinder's View: For those who fear the US is a crumbling economic empire . . . “The world economy may be tough on your industry but look on the bright side: you could be French.”
Sensible Stories
By , Bloomberg, 06/25/2007
MarketMinder's View: There goes the fear China will suddenly stop holding US dollars. China would not be helped by a major sell-off.
Market Misperceptions
By , MarketWatch, 06/25/2007
MarketMinder's View: The idea that a trend must reverse simply because it has done well has been debunked countless times. Stocks are not serially correlated.
Market Misperceptions
By , The New York Times, 06/25/2007
MarketMinder's View: Beware: The contrarian view isn’t much better than the consensus view. Markets won’t do what most expect, but that doesn’t mean they’ll do the opposite. To beat the market, you must fathom what others can’t. The contrarian view is way too fathomable.
Sensible Stories
By , The Independent, 06/25/2007
MarketMinder's View: Here’s a previously unfathomed truth: We don’t have much to fear from knee-jerk, economy-crushing, environmental legislation if this is how its greatest proponents behave.
Sensible Stories
By , Café Hayek, 06/25/2007
MarketMinder's View: A look at a truly dangerous financial product . . .
Market Misperceptions
By , US News & World Report, 06/25/2007
MarketMinder's View: We agree, but we’re simply puzzled by this conclusion—that globalization is the enemy and our current account imbalance and negative saving rate are bad? No! All baseless fears we’ve debunked at MarketMinder. Always question what you know.
Market Misperceptions
By , The Daily Telegraph, 06/25/2007
MarketMinder's View: Yikes! But wait a minute . . . UK employment is near all-time highs. Sensational surveys sell newspapers but don’t necessarily reflect reality. Ignore.
Market Misperceptions
By , MarketWatch, 06/25/2007
MarketMinder's View: And we certainly wouldn’t want the economy or the stock market to do what it did after 1992 or 2003. Wait a minute . . . yes we do . . .
Market Misperceptions
By , Bloomberg, 06/25/2007
MarketMinder's View: Not true. First, the current fundamental drivers of record levels of M&A activity (see MarketMinder commentary “Smart, Smarter, Smartest”) have only been in place since 2002. Second, cash-based mergers are driving stock prices higher. Higher stock prices = richer shareholders.
Sensible Stories
By , The Wall Street Journal, 06/25/2007
MarketMinder's View: Americans are doing so well nowadays, we’re just giving money away! These are not symptoms of an economy in recession.
Market Misperceptions
By , Fairfax Digital, 06/25/2007
MarketMinder's View: China’s had a tremendous run, but market crashes are unexpected, not widely anticipated or discussed in the media.
Sensible Stories
By , The Wall Street Journal, 06/25/2007
MarketMinder's View: This is worthwhile simply for the graphic showing how “wide of the market” economists are when it comes to forecasting. Don’t be swayed by the consensus!
Sensible Stories
By , The Age, 06/22/2007
MarketMinder's View: As much as we at MarketMinder dislike being "rebuked" by other nations—this time they're right. Farming subsidies create congress-flation and snatch wealth-creating opportunities from poorer nations—a shameful crime in our book.
Sensible Stories
By , The Economist, 06/22/2007
MarketMinder's View: A proposal—we call every artificial price increase caused by misguided government subsidies "poli-tic-flation." How about "pork-barrel-flation?" "Congress-flation?" We're still trying to work this one out . . . but we're confident it will catch on.
Sensible Stories
By , The Financial Times, 06/22/2007
MarketMinder's View: We have high hopes for Sarkozy, but we're concerned about his protectionist tendencies. If he wants France to stagnate no longer, he must allow unfettered competition.(See MarketMinder commentary "French Fries Redux.")
Market Misperceptions
By , The Economist, 06/22/2007
MarketMinder's View: Inequality is highest in Anglo-Saxon, entrepreneurial economies." So is the standard of living.
Sensible Stories
By , Telegraph, 06/22/2007
MarketMinder's View: A good overview of Adam Smith's views on taxation: "Taxes should, wherever possible, be simple." You can say that again.
Sensible Stories
By , USA Today, 06/22/2007
MarketMinder's View: We agree—there's not much euphoria out there, signaling a bull market with room to run.
Sensible Stories
By , The New York Times, 06/22/2007
MarketMinder's View: When headlines on Paris Hilton crowd out any negative economic news, know not much is happening to knock stocks.
Sensible Stories
By , BusinessWeek, 06/22/2007
MarketMinder's View: . . . and they're likely to keep going! Cash-based mergers destroy stock supply, which should drive stock prices higher this year.
Market Misperceptions
By , Bloomberg, 06/22/2007
MarketMinder's View: So, was it a big deal, or wasn't it? Fact is, if you have a long time horizon, gains from remaining invested in stocks will dwarf any short-term losses.
Market Misperceptions
By , US News & World Report, 06/22/2007
MarketMinder's View: Wrong wrong wrong. Long rates moves do not dictate stock price direction. Stocks are always volatile, there's nothing unusual about volatility today. And never, ever "rely on your gut" to measure stock market volatility, unless your goal is to never make money in the market.
Market Misperceptions
By , The Wall Street Journal , 06/21/2007
MarketMinder's View: Will the private equity boom end? Sure. Will it be this year? Probably not, and certainly not for the reasons cited here—yen carry trade and China bailing on US debt (fears we've debunked as baseless at MarketMinder). Nowhere is a mention of the still-intact fundamentals truly driving this craze—the earnings yield-bond yield spread.
Market Misperceptions
By , The Financial Times, 06/21/2007
MarketMinder's View: Investors have long been assured that bonds offer a safe haven for their money." Really? News to us. Bonds are susceptible to short-term volatility, just like stocks.
Market Misperceptions
By , The Financial Times, 06/21/2007
MarketMinder's View: This argument hinges on the assertion by "experts" (read: governmental bureaucrats) that supply is "skewed" by the "wrong types of properties." And what exactly is the "right type?" The "experts" can't possibly understand the efficient allocation of resources better than millions of individuals acting in their own self-interest.
Sensible Stories
By , The Australian, 06/21/2007
MarketMinder's View: The private equity boom is having a positive ripple effect. "Senior management and boards are very much focused on matters . . . . to ensure that all of the assets of a company are fully engaged in driving the value for shareholders." CEOs are figuring it out—they must get their stock price up, or someone else will do it for them. Bullish!
Market Misperceptions
By , Bloomberg, 06/21/2007
MarketMinder's View: Yikes. If a billion Chinese desire economic prosperity, we say let ‘em have it! A wealthier China (India, Mexico, Thailand—insert the emerging market of your choice) is good for the Chinese, and us, and the world. We do not foresee the doomsday scenario predicted from an overall wealthier globe.
Sensible Stories
By , BusinessWeek, 06/21/2007
MarketMinder's View: No.
Market Misperceptions
By , Bloomberg, 06/21/2007
MarketMinder's View: We'd argue a single country's yield curve (even when it's the US) is not so predictive of economic health anymore. Globalization has resulted in easy access to cheap financing, reducing the impact of any one country's yield curve.
Market Misperceptions
By , The New York Times, 06/21/2007
MarketMinder's View: The headline could have easily read: "Unemployment is still historically low!" This dour storyline tells us euphoria is nowhere to be found in this market—no need to fear a market peak.
Sensible Stories
By , 06/21/2007
MarketMinder's View: Now here is the type of anti-immigration policy we can get on board with.
Sensible Stories
By , Africa Leader , 06/21/2007
MarketMinder's View: Government subsidies are bad. Period. They create market distortions, eliminating comparative advantage where it exists.
Sensible Stories
By , USA Today, 06/21/2007
MarketMinder's View: Don't fret! Oil and stock prices aren't correlated historically—higher oil prices shouldn't drive stock prices down. But restricted oil supply's a good reason to be bullish on the energy sector!
Market Misperceptions
By , The New York Times, 06/21/2007
MarketMinder's View: By 2030, the rate of coal consumption could be 70 percent higher or 50 percent lower than it is now, the study found." A reminder why forecasting equities much more than 12 months ahead is an impossibility. If you can't forecast supply, you can't forecast.
Sensible Stories
By , Crossing Wall Street, 06/21/2007
MarketMinder's View: Rarely do we see any fact checking on media pundits, but here is a great one. Never let media scare (or hype) stories drive your investment decisions. "Krugman lied, profits died!
Sensible Stories
By , The Washington Post., 06/20/2007
MarketMinder's View: Get your stock price up, or someone else will do it for you! Stock buybacks reduce stock supply, juice earnings, and should boost stock prices
Sensible Stories
By , Forbes, 06/20/2007
MarketMinder's View: Some rational reassurances for those convinced the Chinese will suddenly stop buying our debt and our economy will crumble and the world as we know it end. Among them, "demand for Treasuries is greater than the supply.
Market Misperceptions
By , IBD.com, 06/20/2007
MarketMinder's View: Take profits?" Stop-losses? No! Stock prices are not serially correlated. These strategies do not protect against loss and provably limit upside—generally a poor investing strategy.
Market Misperceptions
By , BusinessWeek, 06/20/2007
MarketMinder's View: Nah. (See our commentary "Yield Mandala" and "Runaway Rates?")
Market Misperceptions
By , MarketWatch, 06/20/2007
MarketMinder's View: Markets have been hitting new highs since markets began. Fear of heights is a cognitive error leading to costly investing mistakes.
Sensible Stories
By , The Wall Street Journal , 06/20/2007
MarketMinder's View: We'd love to comment on this but we're too busy packing our things to move to Tallinn.
Sensible Stories
By , The Wall Street Journal , 06/20/2007
MarketMinder's View: There are two Americas! The overwhelming majority that enjoy their jobs (89%) and the small minority that don't (11%). Meanwhile, Europeans work less, but are also less happy overall. Maybe they'd be happier if their per-capita income were as high as ours? Just a thought.
Sensible Stories
By , The Motley Fool, 06/20/2007
MarketMinder's View: Au contraire! This is a funny take on why bears are consistently wrong wrong wrong. There's a time and a place for bearishness—but it's very rare, and it isn't now.
Sensible Stories
By , The Wall Street Journal , 06/20/2007
MarketMinder's View: Want to truly make a difference and promote a worthy cause? Try for-profit financing for non-profit organizations . . . capitalism is awesome.
Market Misperceptions
By , Kiplinger, 06/20/2007
MarketMinder's View: Three anecdotal stories about folks who got into trouble do not equal "blood on the streets." We've seen housing bubble articles for close to a year now—yet a positive stock market's telling us it just isn't harmed by housing.
Sensible Stories
By , Bloomberg, 06/20/2007
MarketMinder's View: We are just shocked French economists think Sarkozy's tax-cutting plan won't stimulate growth! OK, no we're not, but we're pleased to see Sarkozy moving forward with his tax-cutting plan, ignoring baseless fears about big budget deficits and trade deficits.
Sensible Stories
By , TCS Daily, 06/20/2007
MarketMinder's View: Only in Washington is playing to your vanity considered a successful long-term investment strategy." Amen. Congressmen make poor venture capitalists.
Market Misperceptions
By , 06/20/2007
MarketMinder's View: Pessimism grows, yet so do stock returns. (Odd—this article doesn't mention the bit about stocks.) This is why we like to call the market "The Great Humiliator."
Sensible Stories
By , The Economist, 06/19/2007
MarketMinder's View: Investment from the Middle East appears to have rebounded after last year's DP World debacle. Good news—because Gulf States can just as easily send their dollars elsewhere. Protectionism is bad policy—particularly since Dubai is at least as friendly to America as France or the state of Massachusetts.
Sensible Stories
By , The Financial Times, 06/19/2007
MarketMinder's View: Heck yes! Capitalism+Globalization=Awesome.
Sensible Stories
By , The Wall Street Journal , 06/19/2007
MarketMinder's View: We're encouraged by this move away from the knee-jerk, regulatory backlash that's been prevalent since the tech bubble fallout. An easing regulatory environment could be an unexpected positive driving stocks still higher this year.
Market Misperceptions
By , The Telegraph, 06/19/2007
MarketMinder's View: This headline could also have read, "Rich foreigners to thank for increasing the value of our real estate assets." Protectionist sentiments are anathema to free markets.
Market Misperceptions
By , The Financial Times, 06/19/2007
MarketMinder's View: We are categorically opposed to further oversight of free markets, but we're confident the IMF will have little success in doing much of anything.
Market Misperceptions
By , USA Today, 06/19/2007
MarketMinder's View: Home builders feeling sad isn't having much impact on stocks. The much anticipated "housing bubble"-induced market implosion has failed to materialize this year.
Market Misperceptions
By , 06/19/2007
MarketMinder's View: Needless to say, "this study did not exactly involve a nationally representative sample of taxpayers." So who did it include? Three presidential hopefuls and George Clooney?
Sensible Stories
By , BusinessWeek, 06/19/2007
MarketMinder's View: Evidence—right here—cheaper goods benefit society! Wal-mart's cheap, imported goods are helping contain inflation. Take that, OECD! (See our Story to Ignore, "Offshoring and Cheap Imports May Hurt Workers.")
Market Misperceptions
By , The Wall Street Journal , 06/19/2007
MarketMinder's View: It's hardly shocking Paris-based OECD is opposed to "offshoring." Any rational person can see low-income workers benefit massively overall from increased access to quality goods at a cheaper price.
Market Misperceptions
By , The Economist, 06/19/2007
MarketMinder's View: Calling bond markets "calm, steady and rational" is a hoot. Bonds are volatile and lose value, just like stocks—there's nothing shocking or unusual about that. Further, there's no relationship between yield rate moves and the direction of stocks. (See MarketMinder commentary "Runaway Rates?")
Sensible Stories
By , ABC News, 06/19/2007
MarketMinder's View: Want to see more "windfall" profits for energy companies? Go green! Green policies greatly restrict gas supply, so anticipate higher prices if the movement gains momentum. Meanwhile, energy stocks should benefit from increasing global energy demand.
Sensible Stories
By , TCS Daily, 06/19/2007
MarketMinder's View: Why can't Communist nations catch up? Is it resistance to change and a failure to adapt? Read this commentary for more interesting perspective.
Sensible Stories
By , The Wall Street Journal , 06/18/2007
MarketMinder's View: Yet more evidence the global economy is booming—there's a dire shortage of construction cranes the world over.
Sensible Stories
By , ABC News, 06/18/2007
MarketMinder's View: In case you're wondering who's really to blame for high gas prices, "A push from Congress and the White House for huge increases in biofuels such as ethanol, is prompting the oil industry to scale back its plans for refinery expansions which could keep gasoline prices high, possibly for years to come.
Sensible Stories
By , Briefing.com, 06/18/2007
MarketMinder's View: Buyback activity reached a record $118 billion in the first quarter, marking the sixth consecutive quarter that buybacks have topped $100 billion. Stock supply destruction is bullish!
Market Misperceptions
By , Morningstar.com, 06/18/2007
MarketMinder's View: This is an easy one. Housing has been "cooling" for over a year now and consumer spending remains strong. We just saved the government millions.
Sensible Stories
By , The Wall Street Journal , 06/18/2007
MarketMinder's View: A win is a win. Sarkozy's parliamentary victory could signal better times for France's long stagnant economy.
Market Misperceptions
By , The Financial Times, 06/18/2007
MarketMinder's View: Today's typical American CEO is more risk averse than 10 years ago for fear of getting thrown in jail or being fired, not because they're "lazy."
Sensible Stories
By , CNN Money, 06/18/2007
MarketMinder's View: Is this the beginning of the end of the powerful regret-shunning hangover from the tech bubble? We're hopeful . . . increased regulation is a market killer.
Sensible Stories
By , Bloomberg, 06/18/2007
MarketMinder's View: Congress "combating" China's devalued currency is simply a form of protectionism. It amazes us that politicians still don't recognize protectionism as a net negative for both sides.
Sensible Stories
By , Strange Maps, 06/18/2007
MarketMinder's View: It's easy to forget how big and vibrant the US economy is—here's a clever way to remind ourselves.
Market Misperceptions
By , MSN Money, 06/18/2007
MarketMinder's View: An unpredictable and counterintuitive market is a sign of a coming bear market? Hardly! The market is always unpredictable in the short term—that shouldn't scare you out of stocks this year. Ignore.
Sensible Stories
By , Bloomberg, 06/18/2007
MarketMinder's View: Don't just take our word for it, but "analysts are generally not right."
Market Misperceptions
By , US News & World Report, 06/18/2007
MarketMinder's View: Why all the fuss? Doesn't anyone remember interest rates hitting the same level this time last year? And the market's nicely positive since!
Market Misperceptions
By , The Wall Street Journal , 06/18/2007
MarketMinder's View: Let's see if we have this right. "Slowing spending"=bad, and "spending not slowing"=worse? This makes us tired.
Sensible Stories
By , Sofia News Agency, 06/18/2007
MarketMinder's View: Go back and read that headline again. Socialists! Discussing a flat tax! Low, simplified taxes are a great way to spur business activity and economic growth. For evidence, please see Ireland, Iceland, Estonia . . .
Sensible Stories
By , Cato@Liberty, 06/18/2007
MarketMinder's View: Say it with us, POLI-TIC. Don't believe the press when they tell you Democrats will be profligate spenders. All politicians are profligate spenders!
Market Misperceptions
By , MyFoxCleveland.com, 06/18/2007
MarketMinder's View: A good reminder that bears are dangerous. We're not predicting a bear attack on the market in the near future due to global growth and a favorable M&A environment.
Market Misperceptions
By , MSNBC, 06/15/2007
MarketMinder's View: Some history puts investor fears into perspective—rates are higher, but still below the historic average.
Sensible Stories
By , The Washington Post, 06/15/2007
MarketMinder's View: The acquisition wave has hit another industry with full force, as recent casino acquisitions have pushed gaming stocks higher.
Market Misperceptions
By , Institutional Economics, 06/15/2007
MarketMinder's View: If only Americans had more kids, then maybe the dollar wouldn't be so weak? There are meaningless correlations between many things—no need to pay attention to this one.
Sensible Stories
By , MarketWatch, 06/15/2007
MarketMinder's View: Inflation appears benign while the economy grows, quite a nice overall picture. We're certain inflation-hysteria headlines will return, but we remain convinced inflation's not a concern right now.
Sensible Stories
By , Bloomberg, 06/15/2007
MarketMinder's View: The short answer is no." This puts rising interest rates into perspective.
Market Misperceptions
By , The New York Times , 06/15/2007
MarketMinder's View: Wow . . . wow . . . well . . . um . . . wow . . . so . . . all we can say is . . . wow . . .so, Princeton is a fine institution, but if your children choose to study economics, may we suggest someplace else? George Mason University perhaps?
Sensible Stories
By , The New York Times, 06/15/2007
MarketMinder's View: The rush to stifle innovation in financial markets with more regulation and taxes is a potential sector negative to watch for.
Sensible Stories
By , MSNBC, 06/15/2007
MarketMinder's View: Famous attempts to fathom what others couldn't. "I am not discouraged, because every wrong attempt discarded is another step forward." – Thomas Edison
Sensible Stories
By , US News & World Report, 06/15/2007
MarketMinder's View: When investing, keep an eye on all fees—not just those in your 401(k).
Market Misperceptions
By , MSN Money, 06/15/2007
MarketMinder's View: Yikes. No. We think Canada's just fine, but nothing's ever a "safe money bet." Canada's been hot, so the heat-chasers are on the hunt—expect to see more headlines like this. Don't be swayed by emotion—always consider the fundamentals.
Market Misperceptions
By , BusinessWeek, 06/15/2007
MarketMinder's View: It's just not the end of the world if the Fed doesn't cut rates. Fed rate moves, in any direction, don't dictate the direction of stocks.
Sensible Stories
By , The Wall Street Journal , 06/15/2007
MarketMinder's View: Americans bought about 8,400 ‘ultra-luxury' sports cars last year—more than three times the number from 2003." Are we sure our economy is doing so poorly?
Sensible Stories
By , The Wall Street Journal , 06/15/2007
MarketMinder's View: [The ECB] added that globalization of goods and services still seems to be keeping import prices down, but fast growth and rising wages in developing countries might eventually boost costs." Strong growth, low import prices, and rising wages . . . good problems to have!
Market Misperceptions
By , Bloomberg, 06/15/2007
MarketMinder's View: You should be accustomed to ignoring developed nation's trade deficits by now, but just in case . . .
Sensible Stories
By , The Wall Street Journal , 06/15/2007
MarketMinder's View: Exactly. Variable annuities are in the best interest of one group: The group selling them.
Sensible Stories
By , The Wall Street Journal , 06/14/2007
MarketMinder's View: Economists saw the retail numbers as a sign that rising wages are keeping consumers in a spending mood, offsetting the negative effects of high gasoline prices and falling house prices." Exactly. As we've said before at MarketMinder, the housing "crisis" and high gas prices can't much impact the resilient US consumer.
Sensible Stories
By , The Herald Sun, 06/14/2007
MarketMinder's View: Wade through this to find the beauty of market pressures at work: "The storage process, known as geo-sequestration would also have the dual benefit of repressurising the dwindling Moomba gas fields making extraction of remaining natural gas easier and more economic."
Market Misperceptions
By , MSNBC, 06/14/2007
MarketMinder's View: Great news! The delinquency rate for ALL mortgages dropped!
Sensible Stories
By , Washington Post, 06/14/2007
MarketMinder's View: Yes. It would be nice if politicians felt the same way.
Market Misperceptions
By , Forbes, 06/14/2007
MarketMinder's View: When you see headlines like this, ask, when did you first hear about the fear and how often has it been repeated? If you've heard about it incessantly for months, know it doesn't have much power to move the market.
Sensible Stories
By , International Business Times, 06/14/2007
MarketMinder's View: Odd. We thought homebuyers were only witlessly forced into adjustable rate mortgages. Apparently, there's this thing called "a choice" in financing options. That seems nice.
Sensible Stories
By , Bloomberg, 06/14/2007
MarketMinder's View: A reminder of the benefits of much maligned "outsourcing." Political rhetoric gets it wrong—outsourcing makes our economy stronger.
Sensible Stories
By , BusinessWeek, 06/14/2007
MarketMinder's View: Well said!
Market Misperceptions
By , The Wall Street Journal , 06/14/2007
MarketMinder's View: We've struggled in vain to craft a witty comment about why this one should be ignored, but our response is best summarized with one word: Mystified.
Market Misperceptions
By , International Business Times, 06/14/2007
MarketMinder's View: We've not seen many oil headlines lately—more evidence consumers aren't much impacted by higher gas prices and aren't changing their driving habits.
Sensible Stories
By , Kudlows Money Politics, 06/14/2007
MarketMinder's View: The greatest story never told." More reasons to be bullish.
Market Misperceptions
By , MarketWatch, 06/14/2007
MarketMinder's View: Despite endless headlines attributing daily rate fluctuations to market moves, we've found no meaningful correlation between the two. Ignore!
Sensible Stories
By , The Wall Street Journal , 06/14/2007
MarketMinder's View: Isn't "paying" for one tax decrease by increasing taxes elsewhere robbing Peter to punch Paul in the face? The market's not fooled—this is wealth redistribution, plain and simple, and could ratchet risk aversion. This is a risk to watch.
Market Misperceptions
By , Bloomberg, 06/14/2007
MarketMinder's View: When the word "bubble" is bandied about as much as it is in this article, you don't have much to fear.
Sensible Stories
By , MSNBC, 06/13/2007
MarketMinder's View: Imitation is the sincerest form of flattery—has this guy been reading MarketMinder? "Private equity guys are putting pressure on public companies to become more efficient and boost their share price," says John Altorelli . . . "If those companies don't do it, somebody will do it for them." (See our commentary "If CEOs Don't, Investors Will Do It For Them.")
Market Misperceptions
By , The Motley Fool, 06/13/2007
MarketMinder's View: Ignore doomsday scenarios. Emerging markets represent less than 10% of the world's market cap. By ignoring foreign stocks, investors miss risk management and performance opportunities.
Sensible Stories
By , Café Hayek, 06/13/2007
MarketMinder's View: A simple reminder of globalization's benefits (and a two-fer from today's honorary MarketMinder member—Don Boudreaux).
Sensible Stories
By , Pittsburgh Tribune-Review, 06/13/2007
MarketMinder's View: In the dance between protecting the environment and economic progress, some destitute Romanian peasants face a bleak future.
Sensible Stories
By , Financial Times, 06/13/2007
MarketMinder's View: Financial innovation and increased access to credit is changing the economic landscape for the better. But don't just take it from us.
Sensible Stories
By , Financial Times, 06/13/2007
MarketMinder's View: It is too early to call the end of this bull market in equities." We heartily agree!
Sensible Stories
By , ABC News, 06/13/2007
MarketMinder's View: Always question what you know. Turns out, banana Twinkies taste better.
Market Misperceptions
By , The Wall Street Journal , 06/13/2007
MarketMinder's View: Now that rising bond yields have hit the front pages, we know this story is fully discounted into stock prices and thus shouldn't be a concern looking forward. Phew!
Market Misperceptions
By , The New York Times, 06/13/2007
MarketMinder's View: Governmental meddling in people's pay is generally a bad idea.
Sensible Stories
By , The Wall Street Journal , 06/13/2007
MarketMinder's View: Coming soon to a movie theater near you—$700 buckets of popcorn! (See "Global Food Abundance no Longer Guaranteed"—also in Stories of Interest.)
Sensible Stories
By , Morningstar.com, 06/13/2007
MarketMinder's View: A bit awkward for the doomsayers who've been squawking about the demise of the American consumer.
Market Misperceptions
By , Washington Post, 06/13/2007
MarketMinder's View: This reminds us of that song "It's the End of the World as We Know It." Sure, at some point things will go bust, just not now. We feel fine.
Sensible Stories
By , Telegraph, 06/13/2007
MarketMinder's View: File this under "Unintended consequences of government interference in free markets.
Sensible Stories
By , MSNBC, 06/13/2007
MarketMinder's View: If there were an impending implosion, would major players be expanding in this area?
Sensible Stories
By , Bloomberg, 06/13/2007
MarketMinder's View: Good work Mr. Treasury Secretary! Labeling nations "currency manipulators" is likely a precursor to harmful protectionist measures.
Market Misperceptions
By , The Boston Globe, 06/13/2007
MarketMinder's View: Two things: First, big budget deficits are not bad for the economy or the market—there's no evidence supporting that concern. Second, if you fear the deficit, it's actually shrinking because folks are working and earning more, so tax receipts are up.
Market Misperceptions
By , CNNMoney.com , 06/12/2007
MarketMinder's View: When is the stock market not "rocky?" Such negative sentiment is one of the reasons this bull market has much further to run.
Market Misperceptions
By , The New York Times, 06/12/2007
MarketMinder's View: Ideologically-motivated class warfare tactics could lead to market-hampering governmental meddling. Ignore silliness like this.
Sensible Stories
By , Time, 06/12/2007
MarketMinder's View: Boomers are healthier, making more money, and working longer. A popular investing concern about an impending Social Security "crisis" seems baseless.
Sensible Stories
By , Forbes, 06/12/2007
MarketMinder's View: We agree! At MarketMinder, we've been saying subprime's not a worry all along.
Market Misperceptions
By , The Wall Street Journal , 06/12/2007
MarketMinder's View: China is running a trade surplus because its goods are bargains, benefiting all consumers. Punitive trade restrictions would harm both China and the US far more than help.
Sensible Stories
By , US News & World Report, 06/12/2007
MarketMinder's View: Reagan's handlers were none too pleased about his prophetic demand at the Berlin Wall. Read about it here.
Sensible Stories
By , TCS Daily, 06/12/2007
MarketMinder's View: If you confiscated the income of all the Fortune 500 CEOs, say $7 billion, and distributed it to America's 150 million workers, each would get a check for about $50." And be unemployed to boot. No thanks. We prefer CEOs stay motivated.
Market Misperceptions
By , Kiplinger, 06/12/2007
MarketMinder's View: Yikes! No! Bottom-up stock picking won't help if you're picking from sectors or styles likely to underperform going forward. Focus on the big decisions first!
Market Misperceptions
By , Morningstar.com, 06/12/2007
MarketMinder's View: Oh, people can come up with statistics to prove anything, Kent—14% of people know that." – Homer Simpson.
Market Misperceptions
By , Bloomberg, 06/12/2007
MarketMinder's View: While the U.S. has the second-highest corporate tax rate of the 30 countries in the Organization for Economic Cooperation and Development, it has the fourth-lowest revenue from the levies as a share of the economy." Hmmm . . . ever heard of supply-side economics?
Sensible Stories
By , Guardian Unlimited, 06/12/2007
MarketMinder's View: If someone wants to underwrite a 50-year loan, and there's demand for it, who are we to judge? Greater access to credit is an overall positive.
Market Misperceptions
By , MarketWatch, 06/12/2007
MarketMinder's View: The article starts off so well . . . but then regresses into common fears powerless to move the market—derivatives, global liquidity, private equity, hedge funds, trade deficits. None of these will have the negative outcomes widely expected. Ignore.
Sensible Stories
By , Bloomberg, 06/12/2007
MarketMinder's View: Why politicians ignore economic analysis when creating policy is beyond us.
Sensible Stories
By , The Economist, 06/12/2007
MarketMinder's View: Yep—nothing happening in Congress this year. Very typical for do-nothing third years of presidential terms, and bullish for a stock market which dislikes legislative change.
Sensible Stories
By , The Washington Post, 06/12/2007
MarketMinder's View: Great points from Mr. Blair underscoring the need to always question what you know if you want to beat the market—particularly if the media supports your beliefs.
Market Misperceptions
By , The Motley Fool, 06/12/2007
MarketMinder's View: We fully agree asset and sub-asset allocation are the most important decisions investors make. But having only 10% in foreign stocks is considered aggressive? That hardly constitutes diversification. The US is only about 50% of the world market!
Sensible Stories
By , Chicago Journal, 06/12/2007
MarketMinder's View: A tale of two Commies. Guess whose bookstore stays afloat?
Market Misperceptions
By , The New York Times, 06/11/2007
MarketMinder's View: Insidious! It would be much better if Americans had less access to credit, as Italian homebuyers do. Who doesn't want to live with their in-laws until they are 35?
Sensible Stories
By , Money Magazine, 06/11/2007
MarketMinder's View: We couldn't agree more. This market has much further to run with a growing global economy, record M&A activity, strong corporate profits, and cheap relative valuations.
Sensible Stories
By , MSNBC, 06/11/2007
MarketMinder's View: Ants in the pistachios? The food safety war between China and the US is escalating. Increased barriers to trade would be a negative for both countries.
Market Misperceptions
By , newsvine.com, 06/11/2007
MarketMinder's View: We now pay the leaders of the biggest companies in the world's largest economy as much as professional athletes? Unfair! We should definitely raise salaries for athletes.
Sensible Stories
By , Bloomberg, 06/11/2007
MarketMinder's View: More positive surprises from the world's second largest economy.
Sensible Stories
By , The New York Times, 06/11/2007
MarketMinder's View: Mysteriously, many states are finding themselves with a budget surplus due to higher-than-expected tax receipts. What could have caused this increase in tax receipts? It wasn't higher tax rates . . . what could it have been?
Market Misperceptions
By , Washington Post, 06/11/2007
MarketMinder's View: Since 2005, the three- to five-year moving average of U.S. inflation has hovered around 3 percent. This is above where I would like to see the trend settle in the longer run," Hasn't the trend over the past 100 years hovered around 3%?
Market Misperceptions
By , MSN Money, 06/11/2007
MarketMinder's View: Skip this one, and read "A Brief History of Economic Time" from today's Stories of Interest. Why shouldn't kids expect to earn more? And what is the harm in aspiring to a high-paying job?
Market Misperceptions
By , The Wall Street Journal , 06/11/2007
MarketMinder's View: Rising interest rates causing the stock market to fall is provably myth. Interest rates remain historically low while the earnings yield-bond yield spread means stocks are cheap relatively.
Sensible Stories
By , MSNBC, 06/11/2007
MarketMinder's View: Good! The biggest danger was the introduction of market-hampering reform. Without political meddling, the market takes care of itself.
Market Misperceptions
By , Morningstar.com, 06/11/2007
MarketMinder's View: Here's how to manufacture fear out of a non-story: Aliens haven't invaded and sucked out our brains . . . YET. Nevertheless, such an alien invasion remains a risk.
Sensible Stories
By , The Wall Street Journal , 06/11/2007
MarketMinder's View: A quick look at our species' awesome economic evolution.
Market Misperceptions
By , USA Today, 06/08/2007
MarketMinder's View: A little perspective here—rates are still historically low.
Market Misperceptions
By , The Independent, 06/08/2007
MarketMinder's View: We have a better suggestion than "say on pay." If you don't like the job the CEO is doing and don't think he deserves his compensation—it's real easy—don't buy the stock.
Market Misperceptions
By , Financial Times, 06/08/2007
MarketMinder's View: Even when news on the trade deficit is positive, it's best to ignore. Big or small—a trade deficit is not a market negative for a developed economy.
Sensible Stories
By , Kiplinger, 06/08/2007
MarketMinder's View: Some good advice, but the author forgets the most important retirement mistake to avoid: Not choosing the right investment strategy.
Sensible Stories
By , Investors.com, 06/08/2007
MarketMinder's View: The real estate market is intensely regionalized—one reason talk of a ‘real estate bubble' is misleading.
Market Misperceptions
By , newsvine.com, 06/08/2007
MarketMinder's View: We've heard stories about falling consumer confidence all year long—yet the stock market continues to be strong. Consumer confidence tells you nothing about the direction of the stock market.
Sensible Stories
By , MarketWatch , 06/08/2007
MarketMinder's View: Can't say we're surprised. Major legislation generally doesn't pass in presidential term third years—which is good for stocks. Why? See our commentary, "A Political Punch.
Market Misperceptions
By , The Wall Street Journal , 06/08/2007
MarketMinder's View: Ignore any one-off, anecdotal stories about a few LBOs going south—it's not symptomatic of a broader problem. Fundamentals continue to support this activity—which reduces stock supply and should drive stock prices higher.
Market Misperceptions
By , The Wall Street Journal , 06/08/2007
MarketMinder's View: Just because investors worry doesn't mean it's a valid concern. Global inflation remains benign!
Market Misperceptions
By , BusinessWeek, 06/08/2007
MarketMinder's View: Maybe, maybe not, but who cares? Corrections are NOT bear markets and no reason to abandon stocks. Corrections are normal and healthy and near impossible to time. Don't bother.
Market Misperceptions
By , Chicago Tribune, 06/08/2007
MarketMinder's View: Wait, we thought our profligate ways were a sign of the apocalypse. Now, declining credit card use is bad? Fact is, neither has the effect that the media assigns. Ignore!
Sensible Stories
By , Kiplinger, 06/08/2007
MarketMinder's View: You can turn your progeny into low-cost labor through an effective performance-based allowance system!
Sensible Stories
By , MSN Money, 06/08/2007
MarketMinder's View: What happens when the government monkeys with free markets.
Sensible Stories
By , TCS Daily, 06/08/2007
MarketMinder's View: The battle between the Capitalists and the Anti-Capitalists will likely never end.
Market Misperceptions
By , Bloomberg, 06/07/2007
MarketMinder's View: Always keep things in perspective. A 5% yield on 10-year Treasuries is still historically low.
Sensible Stories
By , The Wall Street Journal , 06/07/2007
MarketMinder's View: According to a recent AAII poll, 45% of individual investors are bearish! YES! Not until these folks turn overwhelmingly bullish should we worry about a market peak.
Sensible Stories
By , US News & World Report , 06/07/2007
MarketMinder's View: This was "breaking news." If this is the most the media can muster, times must be good—no economic news is almost always good news.
Market Misperceptions
By , The Economist, 06/07/2007
MarketMinder's View: We agree with Tony Blair on the value and broad benefits of globalization.
Sensible Stories
By , The Wall Street Journal , 06/07/2007
MarketMinder's View: Lowering income tax rates and loosening labor laws would be major positives for our French friends.
Sensible Stories
By , myway, 06/07/2007
MarketMinder's View: We figured nothing much material would pass here—very typical for the third year of a president's term. Little legislation should lessen risk aversion and drive great stock returns!
Sensible Stories
By , The New York Times, 06/07/2007
MarketMinder's View: A great example of new truths discovered by questioning what you know—and the dumb blonde myth gets debunked.
Market Misperceptions
By , MSNBC, 06/07/2007
MarketMinder's View: Setting the stage for a positive surprise to drive stocks higher.
Market Misperceptions
By , MSNBC, 06/07/2007
MarketMinder's View: Let's see—a group without a verifiable forecasting track record predicts a 1.3% drop in prices over the course of a year? Goodness! And here we are, still unable to locate the keys to our panic room.
Sensible Stories
By , Café Hayek, 06/07/2007
MarketMinder's View: Facts are fun! How do we join this church of global free trade?
Sensible Stories
By , BBC News, 06/07/2007
MarketMinder's View: Currently, in Britain's socialized healthcare system, 1 in 8 patients wait one year to see a doctor. Their target is a waiting time of a mere 18 weeks. And we want to socialize the US system . . . why?
Market Misperceptions
By , USA Today, 06/07/2007
MarketMinder's View: We're having a hard time keeping track. One day we're supposed to fear a rate cut, the next we're supposed to fear a rate hike? Forget it—we choose not to fret it either way—Fed rate moves do not dictate the direction of stocks.
Sensible Stories
By , Morningstar, 06/07/2007
MarketMinder's View: Scary title, positive message. European growth is stronger than expected.
Market Misperceptions
By , Kiplinger, 06/07/2007
MarketMinder's View: But there's really no comparison." Really? Before rushing off to start a hybrid, hamster-powered, waste-water biofuel rocket building company, be very wary of any "it's different this time" sentiment.
Market Misperceptions
By , The Wall Street Journal , 06/06/2007
MarketMinder's View: Worrying doesn't change facts—global inflation remains incredibly low. Even if Chinese manufacturing wages rise, several hundred million Chinese seeking higher paying jobs would likely send wages down again.
Market Misperceptions
By , ABC News, 06/06/2007
MarketMinder's View: Just a thought, why don't we let consumer demand and market pressures dictate auto production?
Market Misperceptions
By , Washington Post, 06/06/2007
MarketMinder's View: Really? Stocks fall two whole days in a row? Where oh where did we leave the keys to our panic room? Joking aside—ignore this.
Sensible Stories
By , The Economist, 06/06/2007
MarketMinder's View: What happens when market pressures—not governmental mandates—drive innovation.
Market Misperceptions
By , The Wall Street Journal , 06/06/2007
MarketMinder's View: Dangerous advice! It's not timing the market that's important, it's time in the market. And now's a great time to be in the market!
Sensible Stories
By , Bloomberg, 06/06/2007
MarketMinder's View: Of course it is. Global interest rates are still historically low!
Sensible Stories
By , TCS Daily, 06/06/2007
MarketMinder's View: Though lately the media is fond of demonizing private equity firms—they perform a valuable market service by providing incentive for public firms to run efficiently.
Market Misperceptions
By , MSN Money, 06/06/2007
MarketMinder's View: Comparing a CEO—any CEO—to a college student working part-time is just silly. The facts are these: If CEOs today don't get their stock prices up, someone else will do it for them, and they'll be out of a job.
Market Misperceptions
By , Reuters, 06/06/2007
MarketMinder's View: Don't let these headlines scare you. One thing is clear: Globally, growth is accelerating.
Sensible Stories
By , The New York Times, 06/06/2007
MarketMinder's View: The article describes our sentiments on alternative energy sources perfectly—"As a matter of public policy, it stinks. The problem is that it's using a resource in an inefficient way, and required huge subsidies to create a more inferior product than what was already being sold on the market.
Sensible Stories
By , RealClearPolitics, 06/06/2007
MarketMinder's View: We have no idea. Profits = awesome!
Market Misperceptions
By , The Boston Globe, 06/05/2007
MarketMinder's View: Yikes! We are generally not for increasing government regulation, but perhaps we'd support a mandate that all high school students learn how Capitalism works.
Sensible Stories
By , Washington Post, 06/05/2007
MarketMinder's View: We're apolitical—but this is good news. It means even less will be accomplished legislatively this year, which should lessen risk aversion and drive great stock returns.
Sensible Stories
By , SmartMoney.com, 06/05/2007
MarketMinder's View: We couldn't agree more—stocks are not as risky as most think, especially relative to competing asset classes.
Sensible Stories
By , Bloomberg, 06/05/2007
MarketMinder's View: Two take-aways: 1. Interest rate moves do not dictate stock direction. 2. Times are good.
Sensible Stories
By , The Wall Street Journal , 06/05/2007
MarketMinder's View: Remember last February: China corrected and the whole world stumbled. Now developed markets are ignoring China's most recent slide. What gives? Market corrections are purely psychological and aren't based on fundamentals.
Market Misperceptions
By , Morningstar.com, 06/05/2007
MarketMinder's View: Hot dog! This article nicely demonstrates data mining, fear of heights, anchoring, confirmation bias . . . and more!
Sensible Stories
By , TCS Daily, 06/05/2007
MarketMinder's View: New Deal? Or raw deal? In today's environment, with better access to more reliable data, economic and monetary missteps like these are harder (but not impossible) to replicate.
Sensible Stories
By , New York Times, 06/05/2007
MarketMinder's View: Another nice by-product of private equity activity—large corporations can sell off unprofitable units much more easily.
Sensible Stories
By , Yahoo! Finance, 06/05/2007
MarketMinder's View: Unlike the manufacturing sector, this news actually means something. Services represent a huge, meaningful chunk of the overall U.S. economy.
Sensible Stories
By , The Wall Street Journal , 06/05/2007
MarketMinder's View: As much as everyone gripes about the higher price of gas, Americans can afford it.
Market Misperceptions
By , The Wall Street Journal , 06/05/2007
MarketMinder's View: Probably too early to sound death knells for cheap debt. In the short to medium term, the strength of the global economy and low inflation will likely keep debt cheap.
Sensible Stories
By , Bloomberg, 06/05/2007
MarketMinder's View: Businesses evolve—those that can't adapt may soon find themselves obsolete.
Market Misperceptions
By , Forbes, 06/05/2007
MarketMinder's View: No it doesn't. But this tells us there's still a wall of worry for stocks to climb!
Market Misperceptions
By , MarketWatch, 06/05/2007
MarketMinder's View: We cannot state enough that headlines like these are hazardous to your health. One day's stock movements mean nothing—no matter what terrifying causation the media assigns.
Sensible Stories
By , BusinessWeek, 06/04/2007
MarketMinder's View: Because of supply and demand. And that's about it.
Market Misperceptions
By , MSN-Money, 06/04/2007
MarketMinder's View: Huh? Inflation spiral? What inflation spiral? Are we not watching the same channel?
Sensible Stories
By , Forbes, 06/04/2007
MarketMinder's View: Everyone these days may feel the need to be ‘more green', but that doesn't mean we have to do foolish things." Amen—let the market decide. Also, read Mr. Forbes commentary on the World Bank.
Sensible Stories
By , Bloomberg, 06/04/2007
MarketMinder's View: The picture is clear: Global growth is robust and there is little to make us think otherwise.
Sensible Stories
By , NewsVOA.com, 06/04/2007
MarketMinder's View: Climate change will likely remain a hot topic, but don't expect emerging economies to rank much ahead of economic growth.
Market Misperceptions
By , MarketWatch, 06/04/2007
MarketMinder's View: How to play stocks in June? No no no! In general, avoid all stories like these—they are far too short-term focused. If you try to capitalize on one month's stock swings, you can do yourself a world of hurt.
Sensible Stories
By , The Wall Street Journal , 06/04/2007
MarketMinder's View: Despite the increase in unprofitable IPOs this year, the amount is trivial compared with how many more deals are being done with cash and debt.
Sensible Stories
By , The Wall Street Journal , 06/04/2007
MarketMinder's View: Stifling free expression is an unreliable road to economic prosperity.
Market Misperceptions
By , MSNBC, 06/04/2007
MarketMinder's View: No. It never even came close.
Market Misperceptions
By , The Telegraph, 06/04/2007
MarketMinder's View: Translation: Markets already anticipate further rate hikes, so there's nothing to fear
Sensible Stories
By , The Herald Sun, 06/04/2007
MarketMinder's View: So much for a hard or soft landing—the global economy continues to be stronger than anticipated.
Sensible Stories
By , Bloomberg, 06/04/2007
MarketMinder's View: Despite this fear's popularity in the media, foreign ownership of U.S. Treasuries simply is not a major threat to the U.S.
Sensible Stories
By , Yahoo! Finance, 06/04/2007
MarketMinder's View: Further positive developments from the world's second-largest economy.
Sensible Stories
By , the San Diego Union-Tribune, 06/04/2007
MarketMinder's View: Three years, 30 years . . . what's the difference? More evidence why we must question what we believe, and not take anything at face value.
Sensible Stories
By , SeekingAlpha, 06/01/2007
MarketMinder's View: Odds are . . . higher.
Sensible Stories
By , The Motley Fool, 06/01/2007
MarketMinder's View: Good commentary on Congress's perverse perspective on oil. Prices are driven by the market—punishing oil companies by increasing regulation or breaking them up will do little to improve the situation. (That is, if the situation even needs improving . . . )
Sensible Stories
By , Wall Street Journal , 06/01/2007
MarketMinder's View: Whatever happened to "sell in May, go away?" For more on why this market aphorism is baseless and costly, see our commentary "Stay in May.
Market Misperceptions
By , MSNBC, 06/01/2007
MarketMinder's View: Ho hum. Snooze.
Dueling Headlines
By , ABC News, 06/01/2007
MarketMinder's View: No matter your opinion is on global warming, there remains plenty of healthy skepticism—regardless of how the media spins it. Before our government enacts economically crushing regulation, we hope someone asks, "Is what we believe true?
Sensible Stories
By , TCS Daily, 06/01/2007
MarketMinder's View: An unromanticized look at how Americans experienced the Great Depression—and how we misremember it today.
Sensible Stories
By , MarketWatch, 06/01/2007
MarketMinder's View: As we've been saying all year . . . Inflation is nothing to fret right now.
Sensible Stories
By , Morningstar, 06/01/2007
MarketMinder's View: Don't focus solely on the US. Global economic growth is strong.
Sensible Stories
By , CNNMoney.com, 06/01/2007
MarketMinder's View: More evidence of economic health—and a positive surprise to drive stocks!
Sensible Stories
By , The Wall Street Journal , 06/01/2007
MarketMinder's View: In case you're wondering about the health of the US economy: "Butlering has become one of the fastest-growing occupations in the United States after more than a half-century of decline, driven by the greatest surge in American wealth in nearly a century." That's right. Butlering.
Market Misperceptions
By , MSNBC, 06/01/2007
MarketMinder's View: This is nice and a positive surprise, but the manufacturing sector just isn't as important as it once was—in the US and around the globe.
Market Misperceptions
By , Bloomberg, 06/01/2007
MarketMinder's View: In an environment of increasing leveraged buyouts, building distressed debt groups is just good business—a prudent way to reduce risk, not a harbinger of doom.