Home → Fisher Investments MarketMinder Headlines → 06-2008 Archives

Sensible Stories
By , The Economist, 06/30/2008
MarketMinder's View: High oil prices ultimately bring greater incentives to create alternatives, not the Apocalypse.
Sensible Stories
By , The Washington Post, 06/30/2008
MarketMinder's View: This isn’t theoretical—there’s ample real-world experience saying price controls have dreadful unintended consequences.
Market Misperceptions
By , The Financial Times, 06/30/2008
MarketMinder's View: The US economy may not be gangbusters currently, but a common misperception is it needs a government fix. Intervention usually introduces dislocations and distortions, bad for us all.
Sensible Stories
By , The Wall Street Journal, 06/30/2008
MarketMinder's View: “Lending to microenterprises took off some years ago as economists recognized that the poor, just like the middle class, can make productive use of credit.” What do you know? We agree with this article—naysayers of for-profit lending are likely just grumpy they’re losing market share to a superior business model.
Sensible Stories
By , The New York Times, 06/30/2008
MarketMinder's View: The damaging effects of government intervention.
Sensible Stories
By , The Wall Street Journal, 06/30/2008
MarketMinder's View: Of course not all sectors of the economy perform in tandem—some are always going in opposite directions.
Market Misperceptions
By , The Wall Street Journal, 06/30/2008
MarketMinder's View: Economic growth does not lead to inflation or vice versa. See our recent cover story “Slow Growth, No Inflation” 5/21/08, for more. Regardless, growth around the world continues to exceed too-dour expectations.
Sensible Stories
By , Bloomberg, 06/30/2008
MarketMinder's View: Speculation can move prices on a day to day basis, but over the long term prices are driven by supply and demand. See our recent cover story, “Speculation Accusation” 06/17/08, for more.
Market Misperceptions
By , 06/30/2008
MarketMinder's View: Bubbles surprise markets. If they sent signals announcing their arrival, thereby dampening their impact, they wouldn’t be bubbles.
Market Misperceptions
By , The Wall Street Journal, 06/30/2008
MarketMinder's View: A “growth-recession”? We prefer to call it by its real name—an oxymoron. An economy cannot simultaneously grow and recess.
Market Misperceptions
By , The New York Times, 06/30/2008
MarketMinder's View: We don’t know of any true bear market where so shortly after the peak so many people were calling it a bear market. This is the stuff of corrections. In true bear markets, most observers are still optimistic.
Sensible Stories
By , CNNMoney.com, 06/30/2008
MarketMinder's View: Selling just because of a pullback is an emotional decision—and usually a mistake.
Sensible Stories
By , The Wall Street Journal, 06/30/2008
MarketMinder's View: Relaxing constraints on foreign investment isn’t anything to fear. See our recent cover story, “Who Killed the Zeitgeist?” 06/18/08, for more.
Market Misperceptions
By , Bloomberg, 06/30/2008
MarketMinder's View: All these 1970s fears are overwrought. Long-term bond rates, a better gauge for the market’s expectation of inflation, remain historically benign—as opposed to the 1970s when they were sky-high.
Market Misperceptions
By , The Wall Street Journal, 06/27/2008
MarketMinder's View: Some investors love the VIX. Problem is, its peaks and troughs are all relative! You just never know until substantial time has passed if you’ve seen a peak, or just a midpoint on its journey. It’s a lemon of an indicator. Don’t rely on it.
Sensible Stories
By , The Wall Street Journal, 06/27/2008
MarketMinder's View: Whatever corner of the economy you work in, lower taxes stimulate growth.
Market Misperceptions
By , The Independent, 06/27/2008
MarketMinder's View: Maybe private equity buyouts have tapered off, but overall cash-based M&A remains robust—a sign credit remains cheap and plentiful for solvent companies. See our recent cover story, “What’s the Deal?” (6/25/08), for more.
Market Misperceptions
By , 06/27/2008
MarketMinder's View: Steep drops aren’t fun, but they’re never an indicator of future market moves.
Market Misperceptions
By , CNBC, 06/27/2008
MarketMinder's View: Bad news? No! Great news! Constrained new supply is a bullish factor. Remember Econ 101: If supply of anything rises, prices fall. We prefer to see constrained or even shrinking supply.
Sensible Stories
By , via Forbes.com, 06/27/2008
MarketMinder's View: A good analysis of the short-sightedness and knee-jerk reactions accompanying the quest for greater financial stability. “An uncertain regulatory landscape can damage the market just as much as abusive trading.”
Sensible Stories
By , Fortune, 06/27/2008
MarketMinder's View: “By providing a mechanism for locking in prices, the futures market makes it easier for oil companies to make costly investments in new production - which is the key to lowering prices at the pump.”
Sensible Stories
By , Bloomberg, 06/27/2008
MarketMinder's View: While we still don’t put much stock in monthly numbers, note this increase came despite record-high gas prices. So much for gas tapping out consumers!
Market Misperceptions
By , Bloomberg, 06/27/2008
MarketMinder's View: More talk of the American Contagion, or fear a US housing slowdown tanking the global economy. Don’t buy it—global economic growth continues.
Market Misperceptions
By , Times Online, 06/27/2008
MarketMinder's View: How many times are we going to have to read stories linking the markets and oil prices? Historically there is no correlation.
Market Misperceptions
By , The Washington Post, 06/27/2008
MarketMinder's View: We rather doubt the world’s as dire as this article claims. Inflation remains within historic norms, and we’ve yet to see a quarter of negative US GDP growth in this cycle.
Sensible Stories
By , Briefing.com, 06/27/2008
MarketMinder's View: “Overall economic trends are much stronger than recognized.” When good news is so widely ignored, it’s a sign there’s more wall of worry for the market to climb.
Market Misperceptions
By , The Wall Street Journal, 06/27/2008
MarketMinder's View: So growth is better than expected but this is supposed to make us more fearful?
Market Misperceptions
By , The Telegraph, 06/27/2008
MarketMinder's View: Inflation shock? Bloodbath? Deep global recession for three years? When all the world’s deeply gloomy, it’s a good sign you shouldn’t be.
Sensible Stories
By , The Wall Street Journal, 06/27/2008
MarketMinder's View: We are all for increased transparency but one should beware the unintended consequences of over zealous regulation.
Sensible Stories
By , The Guardian, 06/27/2008
MarketMinder's View: Is algae the new oil? Who knows. But innovation and investment in alternative energy are signs of the substitution effect accelerated by higher energy costs—a natural, market-driven “solution.” We’d rather see microbes than government intervention any day.
Market Misperceptions
By , Bloomberg, 06/26/2008
MarketMinder's View: As in the US, consumer confidence in Europe—and globally—isn’t predictive for stocks.
Sensible Stories
By , The Wall Street Journal, 06/26/2008
MarketMinder's View: The title says it all. “It’s all too tempting for the government to ride in after a colossal collapse that many should have seen coming and look for someone to blame, when clearly there’s plenty of blame to go around.” See our cover story, “Time for the Bloodletting” (6/23/08), for more.
Market Misperceptions
By , The Times, 06/26/2008
MarketMinder's View: You can reject this editorial out of hand since it assumes the US is in recession and experiencing rampant inflation. Neither are true–all one must do is look at the data to prove it. Even headline inflation remains well within historic averages, and US GDP has yet to come in negative in this cycle.
Sensible Stories
By , The Financial Times, 06/26/2008
MarketMinder's View: “Companies acquired or established by foreign multinationals subsequently tend to show faster growth in jobs, wages, investment and productivity.” Limiting foreign investment could stifle wealth globally.
Market Misperceptions
By , The Wall Street Journal, 06/26/2008
MarketMinder's View: The idea of more centralized financial regulation in Europe to ensure financial stability is concerning. See our cover story, “The ‘Stabilitator’ – Rise of the Knee-Jerks” (6/20/08), for more.
Sensible Stories
By , The Wall Street Journal, 06/26/2008
MarketMinder's View: If the Philippines are serious about growing their economy they should take a pointer from some of their neighbours and do more to encourage foreign investment.
Sensible Stories
By , The Guardian, 06/26/2008
MarketMinder's View: There are still folks fighting for free trade out there today; it’s not all protectionism.
Market Misperceptions
By , The Independent, 06/26/2008
MarketMinder's View: Comparisons of today’s financial situation to Japan in the 1990s miss the mark. The fact is, credit is not only cheap, but readily available to solvent individuals and corporations. The recent spate of cash-based mergers is proof.
Sensible Stories
By , The Wall Street Journal, 06/26/2008
MarketMinder's View: The final tally’s in, and the US economy easily surpassed expectations in Q1.
Market Misperceptions
By , MarketWatch, 06/26/2008
MarketMinder's View: Don’t put much stock in volatile short-term numbers like this—overall unemployment remains historically benign
Market Misperceptions
By , The Independent, 06/26/2008
MarketMinder's View: Yikes, more references to the Great Depression. Didn’t we read about this three months ago?
Sensible Stories
By , BBC News, 06/26/2008
MarketMinder's View: Huzzah! With the beef ban over at last, the free trade accord between the US and South Korea can take flight.
Sensible Stories
By , The Washington Post, 06/26/2008
MarketMinder's View: Increased investment in research and development is a much better way of reversing climate change than cap and trade legislation. See our cover story, “Cap and Trade, or Shuck and Jive?” (6/4/08), for more.
Market Misperceptions
By , via CNBC.com, 06/26/2008
MarketMinder's View: The regret shunning and scapegoating continue.
Market Misperceptions
By , via The International Herald Tribune, 06/26/2008
MarketMinder's View: Good news! But remember, monthly numbers are volatile and don't tell you much about the longer-term trend. Maybe housing is starting to recover, or maybe not. It’s too soon to say. In either case, it’s unlikely to help or hinder stocks much in the foreseeable future.
Sensible Stories
By , Financial Times, 06/26/2008
MarketMinder's View: Investors can’t fathom that today the emerging markets together make up a bigger portion of the world economy than the US.
Market Misperceptions
By , Associated Press, 06/25/2008
MarketMinder's View: Amazingly, the government wants to take the same actions it denounced mortgage companies for doing—support borrowers who otherwise would be “considered too financially risky to qualify for government-insured, fixed-rate loans.” Thankfully, this will likely turn out to be typical election year rhetoric that goes nowhere.
Market Misperceptions
By , Bloomberg, 06/25/2008
MarketMinder's View: The smaller the government the better—they hardly ever do things right. But we don’t fear government debt. Historically, budget deficit peaks have led to great stock returns—it’s the surpluses you should fear.
Sensible Stories
By , The Wall Street Journal, 06/25/2008
MarketMinder's View: As if the cap and trade system weren’t bad enough for corporations, now governments are trying to impose it on the individual level. We’d much prefer a market solution rather than one that is centrally planned.
Sensible Stories
By , The New Republic, 06/25/2008
MarketMinder's View: Subsidies and protectionism may sell well politically, but they’re a major economic negative.
Market Misperceptions
By , IBD Editorials, 06/25/2008
MarketMinder's View: Probably not. Remember, a better gauge of global inflation are global long-term rates, which remain historically benign.
Sensible Stories
By , Beijing Review, 06/25/2008
MarketMinder's View: A global economy is the sum of its parts. It doesn’t matter if one part is growing faster than another—in the end, the global economy still benefits.
Sensible Stories
By , Fortune, 06/25/2008
MarketMinder's View: When times seem bleak, remember: “Our system has a genius for producing solutions that no one individually can see… our capital markets are still the world's best at allocating resources, and that our peculiarly American talents for risk taking, problem solving, and imagining are especially valuable in today's global economy.”
Market Misperceptions
By , The Telegraph, 06/25/2008
MarketMinder's View: Just when you thought newspapers had run out of ways to try to scare you.
Market Misperceptions
By , The Wall Street Journal, 06/25/2008
MarketMinder's View: Slice and dice it however you want. Overall, the EU continues to grow.
Sensible Stories
By , IBD Editorials, 06/25/2008
MarketMinder's View: Those fearing the US might end up with second billing to Europe in the global arena should reconsider. America actually has a lot going for it.
Sensible Stories
By , The Economist, 06/25/2008
MarketMinder's View: Fundamental economics at work in the price of oil.
Sensible Stories
By , The Wall Street Journal, 06/24/2008
MarketMinder's View: Speculation is a normal and healthy part of markets, not the cause of $140 oil. See our 06/17/2008 cover story, “Speculation Accusation,” for more.
Market Misperceptions
By , CNBC, 06/24/2008
MarketMinder's View: Sentiment measures like this are at best coincident indicators and not predictive of future stock market moves. Ignore.
Market Misperceptions
By , The New York Times, 06/24/2008
MarketMinder's View: Let’s not get the woes of some financial institutions confused with the end of capitalism as we know it.
Sensible Stories
By , The Telegraph, 06/24/2008
MarketMinder's View: The fact so many poeple are suggesting oil is in a speculative bubble probably tells you it isn’t.
Sensible Stories
By , The New York Times, 06/24/2008
MarketMinder's View: One of many deals announced this month. Merger and acquisition activity reduces stock supply and, all else being equal, increases share prices.
Market Misperceptions
By , Bloomberg.com, 06/24/2008
MarketMinder's View: Home prices continue to fall, but by now this news is very much priced in (See yesterday’s cover story, “Hang Tough…Over and Out!” for more.) Housing’s drop in April was less than expected—only 1.4% from the prior month. Housing may take awhile to recover, but ignore sensationalist headlines based on narrowly measured indexes such as this.
Market Misperceptions
By , The Wall Street Journal, 06/24/2008
MarketMinder's View: Superbubble! Such overly dour calls for Armageddon just aren’t the stuff of bear market beginnings.
Market Misperceptions
By , Bloomberg.com, 06/24/2008
MarketMinder's View: It’s a waste of time to try and game the Fed. Long-term, disciplined stock investors know small rate moves don’t much matter to begin with.
Market Misperceptions
By , CNNMoney.com, 06/24/2008
MarketMinder's View: That $3000-plus TV sales might be slowing down isn’t surprising or instructive about the broader economy. Ignore.
Market Misperceptions
By , The Wall Street Journal, 06/24/2008
MarketMinder's View: “The latest fallout from the housing-market meltdown may be fewer catalogs in consumers’ mailboxes.” Anything else we can blame on housing?
Sensible Stories
By , The New York Post, 06/23/2008
MarketMinder's View: It’s all the rage to hate speculators these days. “But, much as politicians would like to blame speculators, it's just not so.” Well said!
Market Misperceptions
By , Financial Times, 06/23/2008
MarketMinder's View: First, claims of “stagflation” are without merit. Also, don’t forget the four most dangerous words in investing: “It’s different this time.”
Sensible Stories
By , Times Online, 06/23/2008
MarketMinder's View: Implementation of protectionist legislation will only lead to higher prices and greater wastage.
Market Misperceptions
By , Times Online, 06/23/2008
MarketMinder's View: The credit crunch and childcare are intrinsically linked—nonsense. Presumably we can stop worrying about unemployment though.
Market Misperceptions
By , Associated Press, 06/23/2008
MarketMinder's View: Such a dour outlook makes us feel bullish!
Sensible Stories
By , The Wall Street Journal, 06/23/2008
MarketMinder's View: Looks like the government’s trying to fix what’s not broken in Hong Kong. So-called “competition” laws usually end up doing just the opposite.
Sensible Stories
By , The Wall Street Journal, 06/23/2008
MarketMinder's View: We really discourage political intervention in the running of the economy.
Market Misperceptions
By , The Wall Street Journal, 06/23/2008
MarketMinder's View: Free markets and free capital flows always bring risk—this isn’t news. But the long-term benefits of globalization outweigh the short-term risks.
Market Misperceptions
By , MSN Money, 06/23/2008
MarketMinder's View: “Or, consider how all dips in oil inspire spikes in equities generically.” It’s tough to write a more incorrect statement than that. Truth is, there is no meaningful long-term correlation between stocks and oil.
Sensible Stories
By , Investor’s Business Daily, 06/23/2008
MarketMinder's View: “Wall Street already has a regulator: It's called the Securities Exchange Commission.” Agreed. They’re doing the same thing in the UK. See our 6/20/2008 cover story, “The Stabilitator – Rise of the Knee-Jerks” for more.
Sensible Stories
By , The New York Times, 06/23/2008
MarketMinder's View: This is a crucial question to ask yourself when making investment decisions.
Sensible Stories
By , The Wall Street Journal, 06/23/2008
MarketMinder's View: On the surface, pulling IPOs from the market may seem a bad thing. But IPOs increase stock supply, which is not good (all else being equal). So we’ll gladly shelf the IPOs for now.
Sensible Stories
By , The Wall Street Journal, 06/23/2008
MarketMinder's View: Let capital flow freely!
Sensible Stories
By , The Wall Street Journal, 06/23/2008
MarketMinder's View: We should welcome foreign investment in the US, not shun it. See our 6/18/2008 cover story, “Who Killed the Zeitgeist?” for more.
Market Misperceptions
By , Reuters, 06/20/2008
MarketMinder's View: "I know they could kill me or kidnap me, but the cost of filling my tank in the United States is just too much." C’mon.
Dueling Headlines
By , The Wall Street Journal, 06/20/2008
MarketMinder's View: Oil prices should be determined by supply and demand, not government price manipulation.
Market Misperceptions
By , MSNBC, 06/20/2008
MarketMinder's View: Apparently, a limping economy is a still-growing economy. And ignore monthly numbers, which are frequently revised and not predictive. Expectations have been consistently too dour on the economy so far this year.
Sensible Stories
By , Bloomberg, 06/20/2008
MarketMinder's View: No one likes filling up these days, but energy consumption is a relatively small part of consumer spending. High gas prices will likely change some behavior, but they’re not the end of life as we know it.
Sensible Stories
By , The Wall Street Journal, 06/20/2008
MarketMinder's View: Foreign investment in the UK, just like in the US, is nothing to fear; in fact it’s a good thing. See our 06/18/08 cover story “Who Killed the Zeitgeist?” for more.
Market Misperceptions
By , The New York Times, 06/20/2008
MarketMinder's View: Until enough blame is transferred, and punishment meted out, investors will keep looking for scapegoats on investments gone wrong.
Sensible Stories
By , The Wall Street Journal, 06/20/2008
MarketMinder's View: More co-operation between any nations is to be welcomed.
Market Misperceptions
By , CNBC, 06/20/2008
MarketMinder's View: We’re not sure how much it costs to fill up the average lawn mower, but it’s less than a visit to the chiropractor.
Sensible Stories
By , The Washington Post, 06/20/2008
MarketMinder's View: Folks feel the economy is far worse than it is. It’s not gangbusters, but comparisons to the Great Depression are ridiculous.
Market Misperceptions
By , Times Online, 06/20/2008
MarketMinder's View: Whilst central bankers do have to perform some balancing, thus far they’ve done a pretty good job and we have neither a recession nor prohibitively high inflation.
Sensible Stories
By , Briefing.com, 06/20/2008
MarketMinder's View: We’ll know for sure in a few weeks, but there are signs 2nd Quarter GDP will prove the doomsayers wrong…again—just like 1st Quarter.
Market Misperceptions
By , The Wall Street Journal, 06/20/2008
MarketMinder's View: Assumes slow economic growth will turn to contraction on debatable data. Ignore.
Sensible Stories
By , The Wall Street Journal, 06/20/2008
MarketMinder's View: Emerging markets are devouring more than just energy—here’s a fun example. Demand there might keep oil prices firm, but also means more opportunity for US exporters.
Sensible Stories
By , The International Herald Tribune, 06/19/2008
MarketMinder's View: Carbon emissions have actually increased in Europe under the Kyoto Protocol—a sure sign “cap and trade” agreements don’t work.
Market Misperceptions
By , Yahoo! News, 06/19/2008
MarketMinder's View: The “latte effect”? Our last Starbucks visit included a 15-person line and 10-minute wait for our iced caramel macchiatos. Don’t buy into fancy “indicators” like this.
Sensible Stories
By , Bloomberg, 06/19/2008
MarketMinder's View: From widespread fuel protests to the continuing saga of the Lisbon Treaty, all eyes are on Europe. Remember, markets often react to such uncertainty. See our recent cover story, “Orwell’s Words Proved Wise?” (6/13/08), for more.
Sensible Stories
By , Times Online, 06/19/2008
MarketMinder's View: Some historical perspective and the lessons we have learned leave us much better placed to deal with inflation now.
Sensible Stories
By , Reuters, 06/19/2008
MarketMinder's View: “So far the available data doesn’t support the idea that speculators are driving prices up: Quite the contrary.” As always, supply and demand are the true “culprits.” See our recent cover story, “Speculation Accusation” (6/17/08), for more.
Sensible Stories
By , el universal.com, 06/19/2008
MarketMinder's View: Global economics are not a zero sum game.
Sensible Stories
By , The Wall Street Journal, 06/19/2008
MarketMinder's View: A bilateral investment agreement will help remove roadblocks to increased investment in both countries. See our recent cover story, “Who Killed the Zeitgeist?” (6/18/08) for more.
Sensible Stories
By , The Wall Street Journal, 06/19/2008
MarketMinder's View: Investment occurs most where the potential rewards are greatest. When governments learn this we might get less intervention.
Sensible Stories
By , The Independent, 06/19/2008
MarketMinder's View: Growing genetically modified crops could improve food supply, easing the shortages facing the developing world. See our recent cover story, “Hello GMOs” (5/9/08), for more.
Sensible Stories
By , The Wall Street Journal, 06/19/2008
MarketMinder's View: MSCI’s indexes are widely used equity performance benchmarks. Its changing classifications of developed, emerging and frontier markets are worth paying attention to.
Market Misperceptions
By , via CNNMoney.com, 06/19/2008
MarketMinder's View: Creating a scapegoat for investments gone bad is a classic regret-shunning investor tactic.
Market Misperceptions
By , The New York Sun, 06/19/2008
MarketMinder's View: We disagree: Central banks’ decisions to accept mortgage-backed securities as collateral were innovative and a much better alternative to true nationalization. We are hardly seeing “the galloping socialization of the mortgage market.”
Market Misperceptions
By , The New York Times, 06/19/2008
MarketMinder's View: Using this rationale, it would’ve been reasonable to sue other “manipulators” when oil was trading at $20. Oil is high because of the underlying strength of the global economy.
Sensible Stories
By , Times Online, 06/19/2008
MarketMinder's View: Outstanding—note the sarcasm though.
Sensible Stories
By , The Guardian, 06/19/2008
MarketMinder's View: The idea of a financial stabilizer might sound good to the folks standing in line at Northern Rock, but in reality, it increases the potential for possibly harmful knee-jerk reactions—a risk worth watching.
Market Misperceptions
By , The Wall Street Journal, 06/19/2008
MarketMinder's View: How about abolishing price controls and subsidies altogether? The market distortions they cause are far more disruptive than “speculators,” the popular villains du jour.
Market Misperceptions
By , Asia Times, 06/19/2008
MarketMinder's View: Capitalism = debt and misery, while communism = wealth and prosperity? That’s just plain ludicrous, and an example of the ridiculous rhetoric that flourishes during market corrections.
Market Misperceptions
By , The Telegraph, 06/19/2008
MarketMinder's View: Don’t panic—global inflation remains benign. See our recent cover story, “Global Inflation Conflagration” (6/16/08), for more.
Market Misperceptions
By , BusinessWeek, 06/18/2008
MarketMinder's View: Like any other industry, businesses that don’t make profits drop out. What’s the worry here?
Sensible Stories
By , Times Online, 06/18/2008
MarketMinder's View: This is what we like to call overzealous regulators.
Market Misperceptions
By , The Washington Post, 06/18/2008
MarketMinder's View: Speculation is not a bad thing. See our cover story, “Speculation Accusation,” 6/17/2008, for more.
Sensible Stories
By , Reuters, 06/18/2008
MarketMinder's View: More evidence liquidity is plentiful and the so-called credit crunch isn’t the Armageddon scenario many predicted.
Market Misperceptions
By , The New York Times, 06/18/2008
MarketMinder's View: This says more for the growing affluence of emerging market nations than any weakness in the US market and serves only to highlight the importance of globalization. Ignore the bearish headline.
Sensible Stories
By , The Wall Street Journal, 06/18/2008
MarketMinder's View: Subsidies decrease efficiency and distort markets. Period.
Market Misperceptions
By , BusinessWeek, 06/18/2008
MarketMinder's View: Commodity prices are nothing to fear. Extracting metals from the earth is expensive, but the long-term benefits of developing human capital and R&D will improve efficiencies and the industry.
Market Misperceptions
By , The Wall Street Journal, 06/18/2008
MarketMinder's View: The housing bill is back, reincarnated in a milder form. Even if it passes through both chambers at all (unlikely), this bill isn’t likely to have a profound impact on the markets.
Sensible Stories
By , RealClearMarkets, 06/18/2008
MarketMinder's View: The US shouldn’t fear foreign investment. A robust global economy promotes investment across borders. (Remember, the US does a ton of foreign investing too.)
Sensible Stories
By , Forbes, 06/18/2008
MarketMinder's View: Capitalism is indeed alive and well on the global scene today—but continued attacks on free trade, private property, and the profit motive threaten the economy and stock markets.
Sensible Stories
By , The Wall Street Journal, 06/18/2008
MarketMinder's View: Innovation continues as financials develop new ways to promote liquidity.
Market Misperceptions
By , USA Today, 06/17/2008
MarketMinder's View: Who knows? Commodities prices are notoriously difficult to predict. But we think oil prices (and thus gas prices) will stay elevated for some time as demand stays strong and supply constrained. See our 6/10/2008 cover story, “Brave New World,” for more.
Market Misperceptions
By , The Wall Street Journal, 06/17/2008
MarketMinder's View: Hedge funds come and hedge funds go—almost by definition. That the latest glut of new high-risk (often highly-leveraged) funds is seeing some attrition shouldn’t surprise and doesn’t indicate systemic doom.
Market Misperceptions
By , CNNMoney, 06/17/2008
MarketMinder's View: Speculation plays an important role in smoothing out prices and delivering vital information to the marketplace. Considering more transparency is one thing, but proposing significant limitations is just ridiculous. See our 6/17/2008 cover story, “Speculation Accusation,” for more.
Sensible Stories
By , National Post, 06/17/2008
MarketMinder's View: If SWFs scare you (they shouldn’t) then California’s own CalPERS should be downright terrifying.
Sensible Stories
By , The Wall Street Journal, 06/17/2008
MarketMinder's View: Protecting the fruits of innovation in China should encourage local entrepreneurs and international firms to do more business there.
Sensible Stories
By , Reuters, 06/17/2008
MarketMinder's View: Cheap equity, benign borrowing rates and healthy balance sheets incent companies to buy back their own shares—reducing aggregate supply and juicing prices.
Market Misperceptions
By , The Wall Street Journal, 06/17/2008
MarketMinder's View: The head UK central banker was asked to write another letter explaining a missed inflation target. Those Brits…so polite (except in the House of Commons of course—now that’s entertainment!). Just as US CPI is flawed, so it is in the UK. Market-based indicators, like the government 10-year bond rate, remain benign there too.
Market Misperceptions
By , The Wall Street Journal, 06/17/2008
MarketMinder's View: Even good news is really bad news through the eyes of the media.
Sensible Stories
By , The Financial Times, 06/17/2008
MarketMinder's View: We should be wary of protectionism interfering with the potential for freer trade.
Sensible Stories
By , The Financial Times, 06/17/2008
MarketMinder's View: The saga continues. The future of the European Union is a key issue with global ramifications. See our 6/13/2008 cover story, “Orwell’s Words Proved Wise” for more.
Market Misperceptions
By , Newsweek, 06/17/2008
MarketMinder's View: Core PPI remains restrained, the US is far less reliant on energy than in years past, and solid productivity gains make it easier for firms to withstand input price increases. (See our 6/5/2008 cover story, “More Cookies for Us All.) Most importantly, this is a monthly government number prone to revision, bias, and errors—ignore.
Sensible Stories
By , The New York Times, 06/17/2008
MarketMinder's View: Emerging markets growth continues apace.
Market Misperceptions
By , BusinessWeek, 06/17/2008
MarketMinder's View: It takes more than high prices to make profits in complex, capital-intensive industries like big oil—let shareholders make the call on management compensation.
Sensible Stories
By , The Wall Street Journal, 06/16/2008
MarketMinder's View: We can only hope overly bureaucratic governments are able to take notice of this.
Sensible Stories
By , Times Online, 06/16/2008
MarketMinder's View: The woes in the finance and housing sectors are certainly headline-grabbing, but they don’t necessarily reflect what happens elsewhere in the economy.
Sensible Stories
By , The Wall Street Journal, 06/16/2008
MarketMinder's View: This is good news and a nice step toward more efficient markets. See MarketMinder’s 5/29/2008 column, “Binary Smoke, Encoded Scotch” for more.
Sensible Stories
By , The Wall Street Journal, 06/16/2008
MarketMinder's View: “We need to remember that uncertainties will always exist in complex financial markets, but also that we'll learn from what we didn't know.” Agreed.
Sensible Stories
By , The Wall Street Journal, 06/16/2008
MarketMinder's View: Less government and lower taxes, not the opposite, help stimulate both economic growth and government revenue.
Market Misperceptions
By , The Washington Post, 06/16/2008
MarketMinder's View: Investment banking business models have generated far more success than failure.
Sensible Stories
By , The Wall Street Journal, 06/16/2008
MarketMinder's View: “It's not easy to accept the notion of uncertainty in markets.” Well said.
Sensible Stories
By , Bloomberg, 06/16/2008
MarketMinder's View: Those clamoring to ban speculation should remember Milton Friedman crushed their argument over fifty years ago.
Market Misperceptions
By , Bloomberg, 06/16/2008
MarketMinder's View: Many recent articles are blaming the dollar for rising oil when it only accounts for a portion of the increase. Lest we forget the dominant factor determining oil prices: A growing global economy and constricted short-term supply.
Market Misperceptions
By , Bloomberg, 06/16/2008
MarketMinder's View: Gadzooks! At $250 per barrel, we’re pretty sure dogs and cats will start living together too! Fearing high oil prices spell doom is nothing new. As long as the global economy keeps growing, oil will remain firm, and we shouldn’t fear it.
Market Misperceptions
By , The Telegraph, 06/16/2008
MarketMinder's View: Some people just need something to worry about.
Market Misperceptions
By , Times Online, 06/16/2008
MarketMinder's View: We might be more concerned if this wasn’t news we’d heard about nine months ago.
Market Misperceptions
By , International Herald Tribune, 06/13/2008
MarketMinder's View: "Concern about manipulation is not misplaced. But speculation doesn't equal manipulation, and I am concerned that there's been a confusion between the two concepts." Speculation stigma is as old as Socrates, but speculators play an important role in properly functioning capital markets.
Market Misperceptions
By , Bloomberg, 06/13/2008
MarketMinder's View: This is a flawed comparison. Oil, a valuable resource whose rise is attributable to growing demand and constrained supply, is nothing like the worthless IPOs rolled out during the dot-com craze.
Sensible Stories
By , The Economist, 06/13/2008
MarketMinder's View: Unfavorable tax laws make countries less competitive on the global stage.
Sensible Stories
By , The Wall Street Journal, 06/13/2008
MarketMinder's View: Sentiment and reality are two very different things.
Sensible Stories
By , CNNMoney.com, 06/13/2008
MarketMinder's View: The recent credit shift favors large, strategic mergers which should continue apace—a good thing for stock prices, as aggregate net share supply is reduced in most sectors.
Market Misperceptions
By , CNNMoney, 06/13/2008
MarketMinder's View: If broad-based inflation was truly a threat, the long-bond market would be telling us as much. Hint: it’s not.
Market Misperceptions
By , The Wall Street Journal, 06/13/2008
MarketMinder's View: So what? The beauty of global free trade is companies may relocate wherever cost efficiencies allow them to produce the best goods and services for the lowest prices—whether that’s abroad or at home makes no difference. Also, note the lack of empirical evidence in support—this piece is almost entirely anecdotal.
Market Misperceptions
By , Bloomberg, 06/13/2008
MarketMinder's View: Depending on ratings alone is a losing proposition. Instead of regret shunning and increased regulation, we think these firms should be free to fix their services or face failure.
Market Misperceptions
By , The Wall Street Journal, 06/13/2008
MarketMinder's View: Though housing weakness continues, don’t forget to scale the problem. This article even admits only “one in every 483 U.S. households [or 0.2%] received a foreclosure filing in May.” That’s hardly a true foreclosure crisis.
Market Misperceptions
By , CNNMoney.com, 06/13/2008
MarketMinder's View: Certain prices are higher, but don’t depend on a limited basket of goods to judge inflation. We prefer market-based indicators, like the currently benign rate on government 10-year bonds.
Sensible Stories
By , The Wall Street Journal, 06/13/2008
MarketMinder's View: The future of one of the world’s biggest economic entities is of great importance to markets. See our 6/13/2008 cover story, “Orwell’s Words Proved Wise?” for more.
Market Misperceptions
By , Bloomberg, 06/13/2008
MarketMinder's View: Painful as this is now, it’s a great example of creative destruction. Hard times yield increased business innovation—airlines and consumers will be better for it in the long run (if the government stays out of it, that is).
Market Misperceptions
By , Bloomberg, 06/13/2008
MarketMinder's View: We think it’s vital to be wary of protectionist sentiment. But this is more melodramatic conjecture than fact.
Market Misperceptions
By , The Wall Street Journal, 06/12/2008
MarketMinder's View: The notion a slowing economy quells inflation is wrong. See our 5/21/2008 cover story, “Slow Road, No Inflation?”
Market Misperceptions
By , The Independent, 06/12/2008
MarketMinder's View: We agree that slow growth is not ideal, but it certainly doesn’t portend a recession. Growth is growth.
Sensible Stories
By , BusinessWeek, 06/12/2008
MarketMinder's View: A good perspective on the inevitability of economic ups and downs, and the net positives of both in the long term.
Market Misperceptions
By , Barron’s, 06/12/2008
MarketMinder's View: We say today is not the best of all financial worlds, but good enough—and certainly better than most believe. Brush off such doom and gloom—it’s not the reality.
Market Misperceptions
By , The Times, 06/12/2008
MarketMinder's View: “With the outlook for the global economy deteriorating almost daily, the time to let market forces solve the energy crisis is running out.” Abandoning faith in free markets to embrace regulation would deliver the exact results we seek to avoid.
Market Misperceptions
By , Reuters, 06/12/2008
MarketMinder's View: It’s nice to see retail sales beating expectations—again. But it’s presumptuous to say the rebate checks were the only reason for it.
Sensible Stories
By , Times Online, 06/12/2008
MarketMinder's View: The unintended consequences of raising taxes.
Sensible Stories
By , Investor’s Business Daily, 06/12/2008
MarketMinder's View: “All those trade dollars don't disappear overseas; they come back to America, either as purchases of goods and services, or investments in our assets.” Foreign investors see opportunity, not Armageddon.
Market Misperceptions
By , Newsweek, 06/12/2008
MarketMinder's View: Apparently, Asia can’t save the world because Vietnam’s lower credit rating will topple the continent. Ignore such drivel.
Sensible Stories
By , Chicago Tribune, 06/12/2008
MarketMinder's View: Folks panicky about inflation should read this article.
Sensible Stories
By , BBC, 06/12/2008
MarketMinder's View: Now that’s what we’re talkin’ about! Good move, Cuba! Sure, there’s a long way to go, but this is an encouraging step towards a better future for Cubans.
Sensible Stories
By , Briefing.com, 06/12/2008
MarketMinder's View: “If anything, the data the past week suggest stronger than recognized economic conditions.” We agree, but caution against being too focused on short-term data.
Sensible Stories
By , The Wall Street Journal, 06/12/2008
MarketMinder's View: Misguided regulation certainly plays a role in today’s gas prices.
Sensible Stories
By , The Wall Street Journal, 06/11/2008
MarketMinder's View: File this one in the “growth exceeding expectations” category.
Sensible Stories
By , Reuters, 06/11/2008
MarketMinder's View: Substitutions for gasoline won’t materialize overnight, but high oil prices ultimately bring greater incentives to create alternatives, not the Apocalypse.
Sensible Stories
By , Reuters, 06/11/2008
MarketMinder's View: High gas prices are a pain. But when they get high enough, folks shift their behavior accordingly.
Sensible Stories
By , Money Magazine, 06/11/2008
MarketMinder's View: As the saying goes, it’s time in the market—not timing the market—that counts.
Market Misperceptions
By , CNNMoney.com, 06/11/2008
MarketMinder's View: The future of oil should be decided by supply and demand, not Congress.
Market Misperceptions
By , The Wall Street Journal, 06/11/2008
MarketMinder's View: Inflation is back in the headlines. But the best leading indicator for inflation is government bond yields—which suggest inflation concerns remain benign. See our cover story, “Inflation—It’s Prices, Not Price” (01/17/08), for more.
Market Misperceptions
By , The Wall Street Journal, 06/11/2008
MarketMinder's View: Big Al’s Cheesesteaks might have to lay off a few bus boys if this legislation gets anywhere.
Market Misperceptions
By , Times Online, 06/11/2008
MarketMinder's View: International trade has grown significantly over recent years along with the price of oil. Maybe high oil prices are more a symptom of higher demand that increased trade requires rather than a cause of looming weakness.
Sensible Stories
By , Financial Times, 06/11/2008
MarketMinder's View: Opening world markets, not regulation, is the best way to ease shortages and allow for efficient allocation of resources.
Market Misperceptions
By , CNBC, 06/11/2008
MarketMinder's View: Consumer sentiment, in Australia or anywhere else, is at best a coincident indicator and isn’t predictive for stocks. Ignore.
Market Misperceptions
By , CNBC.com, 06/11/2008
MarketMinder's View: There is no meaningful historical correlation between oil prices and the stock market. Ignore.
Sensible Stories
By , The Wall Street Journal, 06/11/2008
MarketMinder's View: “The last thing the U.S. economy needs is more government involvement, whether it's called change or not.” Absolutely.
Sensible Stories
By , The Wall Street Journal, 06/11/2008
MarketMinder's View: A super majority for either party likely means higher likelihood for new legislation—and unintended negative consequences. This is something worth keeping an eye on.
Sensible Stories
By , Slate.com, 06/11/2008
MarketMinder's View: Spending is more closely tied to personal income (which has been chugging along just fine) than housing prices. See our cover story, “What Wealth Effect.” (06/06/2008) for more.
Sensible Stories
By , The Independent, 06/11/2008
MarketMinder's View: Whatever happens with oil prices, and we certainly don’t believe we are on the edge of recession, the world’s economy has consistently proved itself to be very resilient and adaptive.
Market Misperceptions
By , CNNMoney.com, 06/10/2008
MarketMinder's View: High gas prices aren’t fun. But current sentiment is likely too dour. See our past commentaries, “Oil!” (6/2/08) and “Brave New World” (6/10/08), for more.
Market Misperceptions
By , The Wall Street Journal, 06/10/2008
MarketMinder's View: The dollar has been ‘weak’ for years yet the concern over food prices has been caused by a much more recent surge.
Sensible Stories
By , The Wall Street Journal, 06/10/2008
MarketMinder's View: Ireland’s upcoming referendum on the EU’s Lisbon Treaty could determine whether the treaty is ratified, directly affecting things like continent-wide corporate taxes. Certainly a geopolitical development worth monitoring.
Sensible Stories
By , Bloomberg, 06/10/2008
MarketMinder's View: Libor is among the most widely used benchmark interest rates. Changes to its calculation methods are worth paying attention to.
Market Misperceptions
By , MarketWatch, 06/10/2008
MarketMinder's View: Wait, wages are lagging inflation because workers are too meek to ask for pay raises? And stagflation would be an improvement? This article doesn’t even remotely resemble reality.
Sensible Stories
By , Financial Times, 06/10/2008
MarketMinder's View: Or another way of looking at this is that high oil prices reflect a booming economy.
Sensible Stories
By , Bloomberg, 06/10/2008
MarketMinder's View: The UK’s more flexible labor rules will help its companies stay competitive and the country remain an attractive place to set up shop—a good sign for its productivity.
Market Misperceptions
By , CNNMoney.com, 06/10/2008
MarketMinder's View: Beware anecdotal “evidence” like this—it tells us as much about the real world as the namesake TV show.
Sensible Stories
By , Bloomberg, 06/10/2008
MarketMinder's View: Despite fears to the contrary, credit remains plentiful for solvent individuals.
Market Misperceptions
By , The Wall Street Journal, 06/10/2008
MarketMinder's View: “While some of her income was going to pay down debt, including $14,500 in student loans, Ms. Greene realized she was also spending too much on extras, like her $400 Cole Haan boots and her hungry boyfriend.” That’s not a credit crunch—that’s just plain dumb!
Sensible Stories
By , The International Herald Tribune, 06/10/2008
MarketMinder's View: Popular opposition to the US / South Korea free trade deal continues to interrupt economic reforms in South Korea. We don’t like it when people block free trade and economic liberalization.
Sensible Stories
By , BBC News, 06/10/2008
MarketMinder's View: Phew—that was close. So I guess all that worrying was for nothing!
Market Misperceptions
By , The Wall Street Journal, 06/10/2008
MarketMinder's View: No, higher food prices are not simply due to a weak dollar. Higher prices are also a product of supply, demand and misguided government regulation.
Market Misperceptions
By , RealClearMarkets, 06/10/2008
MarketMinder's View: Yes, the US dollar is prone to price gyrations from global political uncertainty (as are all currencies), but government intervention and readopting the gold standard are not “solutions.”
Sensible Stories
By , The Independent, 06/10/2008
MarketMinder's View: Whaddya know? Looks like regular folks are the winners in this so-called “credit crunch”! Banks want more customers, and retail depositors will reap the benefits.
Market Misperceptions
By , MSNBC.com, 06/10/2008
MarketMinder's View: This reminds us of 2000 when we read articles about preparing your kids for investing in tech stocks.
Sensible Stories
By , Bloomberg, 06/09/2008
MarketMinder's View: Strong demand—despite higher raw materials prices—is bolstering economic activity in Japan.
Sensible Stories
By , Times Online, 06/09/2008
MarketMinder's View: Higher prices promote greater research into viable alternatives and make the extraction of existing but hard to reach oil deposits more attractive.
Market Misperceptions
By , Barron’s, 06/09/2008
MarketMinder's View: While some economic data (e.g. employment report) can move investor sentiment in the short term, such data is typically backwards looking and highly erratic—and by themselves are not predictive of future market moves.
Sensible Stories
By , Financial Times, 06/09/2008
MarketMinder's View: Some sound thoughts about the complex financial system. We especially applaud the recognition that “regulation has the potential to make things worse. Regulation can distort incentives in ways that may make the system less safe.”
Sensible Stories
By , Times Online, 06/09/2008
MarketMinder's View: Rather than a shifting of economic prosperity from one group to another, the emergence of “Generation A” means more people that can trade between one another.
Market Misperceptions
By , The Wall Street Journal, 06/09/2008
MarketMinder's View: We’re not digging our ‘70s-era bellbottoms out of the closet just yet.
Market Misperceptions
By , The Wall Street Journal, 06/09/2008
MarketMinder's View: Banks aren’t “begging.” Investors don’t invest in them out of a sense of charity—they rationally consider the long-term return they’ll get for their risk.
Market Misperceptions
By , CNNMoney.com, 06/09/2008
MarketMinder's View: No, not summer camp! But before you start discounting a recession, read the story to discover camp enrollment hasn’t dropped at all. Ignore.
Market Misperceptions
By , The Wall Street Journal, 06/09/2008
MarketMinder's View: Currencies are a zero-sum game. Think globally! The dollar’s weak because the euro’s strong, nothing more. Weak or strong, currency strength doesn’t dictate economic growth or market direction.
Sensible Stories
By , The Wall Street Journal, 06/09/2008
MarketMinder's View: Politicians were unlikely to pass such a costly bill during an election year—despite all the grandstanding. Very typical of a presidential term’s fourth year and positive for stocks.
Sensible Stories
By , Bloomberg, 06/09/2008
MarketMinder's View: Political conspiracy theory aside, some relief from the overly dour media interpretations of mixed economic data.
Market Misperceptions
By , Newsweek, 06/09/2008
MarketMinder's View: We beg to differ. Almost everyone has been expecting fire and brimstone, yet the economy continues to beat too-dour expectations.
Sensible Stories
By , Bloomberg, 06/09/2008
MarketMinder's View: Wise words of caution against extrapolating too much from the Fed Chairman’s dollar comments.
Market Misperceptions
By , CNBC, 06/06/2008
MarketMinder's View: In our view, this isn’t a symptom of a pandemic; rather, it is a symptom of a rather chaotic personal financial situation. Stay strong, Evander.
Sensible Stories
By , The Financial Times, 06/06/2008
MarketMinder's View: This seems bad right? Actually, fewer IPOs means slower share supply growth. All else being equal, if supply shrinks or remains constrained, stock prices should benefit.
Market Misperceptions
By , AFP, 06/06/2008
MarketMinder's View: Fear-based volatility in commodities prices is most often short-lived and says little about longer-term trends. See our most recent cover story for more.
Market Misperceptions
By , The Wall Street Journal, 06/06/2008
MarketMinder's View: “US junk bond defaults are expected to rise to 4.7 percent in the next 12 months from a 25-year low of 0.97 percent at the end of 2007, according to S&P.” Defaults rising from a 25-year low isn’t much of a story. And remember, they’re called “junk” because they’re likelier to default.
Sensible Stories
By , The Wall Street Journal, 06/06/2008
MarketMinder's View: We are all in favor of greater transparency, but we shouldn’t enforce rules that other investment vehicles are not subject to just because of unfounded suspicions.
Market Misperceptions
By , Times Online, 06/06/2008
MarketMinder's View: Yet Eastern Europe has enjoyed some of the fastest growth in economic activity over the last 10 years.
Sensible Stories
By , Investor’s Business Daily, 06/06/2008
MarketMinder's View: Embracing free trade is imperative to staying competitive in today’s global market.
Dueling Headlines
By , Fortune, 06/06/2008
MarketMinder's View: Well? Which is it? Past performance is no indication of future results (our finance mantra!), and volatile commodities prices are notoriously hard to predict, particularly in the very short-term—so don’t try. Oil and stock prices don’t correlate meaningfully.
Sensible Stories
By , The Wall Street Journal, 06/06/2008
MarketMinder's View: Hardly a surprise—this is typical for the fourth year of a president’s term. Election year political wrangling brings more talk than action—a good thing for stocks.
Sensible Stories
By , The New York Times, 06/06/2008
MarketMinder's View: Very low expectations are great news for stock market investors.
Market Misperceptions
By , The Wall Street Journal, 06/06/2008
MarketMinder's View: Monthly government employment numbers make problematically complex assumptions, often miss difficult-to- predict seasonal trends, and are frequently revised and re-revised less visibly.
Market Misperceptions
By , CNBC, 06/06/2008
MarketMinder's View: Don’t fret monthly indicators—what matters is the bigger picture. The US economy is still growing, consumers are still spending and the global economy continues strong.
Market Misperceptions
By , The Telegraph, 06/05/2008
MarketMinder's View: The doom-mongers have moved on to water now.
Market Misperceptions
By , CNNMoney, 06/05/2008
MarketMinder's View: Hardly shocking, given the recent market correction and housing woes. However, a 3% short-term drop from record highs is hardly something to get excited about, particularly since wages continue to grow.
Market Misperceptions
By , Bloomberg, 06/05/2008
MarketMinder's View: Oh goodness! Spooky anecdotes like this appear aplenty these days. But don’t worry—the collapse of Pee Wee’s Grill, though very sad for Pee Wee, won’t cause widespread economic meltdowns.
Sensible Stories
By , The Wall Street Journal, 06/05/2008
MarketMinder's View: Nice going UK! Good things come to those who embrace global markets.
Sensible Stories
By , The Wall Street Journal, 06/05/2008
MarketMinder's View: Attracting skilled professionals to work in a strengthening economy is a nice problem to have. Freer markets have made this possible.
Sensible Stories
By , The Wall Street Journal, 06/05/2008
MarketMinder's View: To date, major central banking activity seems appropriate and inflation expectations via global long-term rates remain benign.
Sensible Stories
By , The New York Times, 06/05/2008
MarketMinder's View: “Everyone complained about other people’s protectionism — and defended their own.” Yep, sounds about right to us. Freer trade, not government grandstanding, is a smarter road to competitive prices.
Sensible Stories
By , The Wall Street Journal, 06/05/2008
MarketMinder's View: Consumers continue to show resilience, and US firms are benefiting from foreign sales.
Sensible Stories
By , The New York Times, 06/05/2008
MarketMinder's View: Farming corn ethanol in Iowa makes no sense when cheaper and more efficient alternatives exist abroad. Protectionism hurts Brazilians and Americans alike here.
Dueling Headlines
By , Bloomberg, 06/05/2008
MarketMinder's View: It’s rather odd to call for the death of investment banking when huge M&A deals like these are still being transacted.
Market Misperceptions
By , The Wall Street Journal, 06/05/2008
MarketMinder's View: The dollar has been weakening for years during both global bull and bear markets.
Market Misperceptions
By , Reuters, 06/05/2008
MarketMinder's View: The dollar’s impact on oil prices is only one piece of the puzzle, and a small one at that. Supply and demand ultimately determine oil prices.
Sensible Stories
By , Café Hayek, 06/05/2008
MarketMinder's View: “The freer our trade and international capital flows, the less meaningful it is to speak of national rates of savings.” Good point—and a great read altogether.
Market Misperceptions
By , Real Clear Markets, 06/05/2008
MarketMinder's View: A Fed Chair commenting on the dollar is a bit unusual. But remember, Mr. Bernanke vowed to be more communicative, and there’s nothing shockingly revelatory in his comments.
Sensible Stories
By , Real Clear Markets, 06/04/2008
MarketMinder's View: A fine example of how politicians run on reform-oriented platforms, but once elected, manage little actual change.
Market Misperceptions
By , Los Angeles Times, 06/04/2008
MarketMinder's View: Foreign investment isn’t new—foreigners have been pouring money into US Treasuries for decades (and a lot more of it than they’ve put into SWFs).
Sensible Stories
By , Times Online, 06/04/2008
MarketMinder's View: It’s true there’s always something to worry about, but as the indicators show, the Fed have done a decent job thus far.
Sensible Stories
By , MSNBC.com, 06/04/2008
MarketMinder's View: Productivity increases outpaced rising wages in the first quarter—meaning workers benefited from higher wages without leading to higher costs for goods—both good things, and generally unexpected.
Market Misperceptions
By , The Wall Street Journal, 06/04/2008
MarketMinder's View: Forecasts calling for continued growth, even slower growth, should not presuppose a recession, as this one does.
Market Misperceptions
By , BusinessWeek, 06/04/2008
MarketMinder's View: If markets get off to a rough start in June, get ready for a spate of “sell in May and go away” stories like this. Ignore them—seasonal indicators are nothing more than myth.
Sensible Stories
By , Financial Times, 06/04/2008
MarketMinder's View: Probably not who you’d guess—but those are the best kind!
Sensible Stories
By , The Motley Fool, 06/04/2008
MarketMinder's View: "The majority of a bull market's gains come in its first few days and weeks. If you wait until you see the market turn, you've already missed a golden opportunity." We agree—don’t try to time short-term market gyrations.
Sensible Stories
By , The Wall Street Journal, 06/04/2008
MarketMinder's View: Increased competition is a step in the right direction, but less government intervention is the real key here.
Market Misperceptions
By , Times Online, 06/04/2008
MarketMinder's View: So July 2005 was the last time manufacturing growth was this low. Was that the start of a recession? One month of zero growth does not form the basis for sound analysis of the economy.
Market Misperceptions
By , Bloomberg, 06/04/2008
MarketMinder's View: This is good news, and the preponderance of data continues to point to growth, not recession. But monthly numbers like this aren’t predictive and don’t mean much.
Sensible Stories
By , The Wall Street Journal, 06/04/2008
MarketMinder's View: Higher oil prices mean more investment in both alternative energy sources and in the extraction of hard-to-reach deposits.
Market Misperceptions
By , Washington Post, 06/04/2008
MarketMinder's View: Interest rates in the late '70s were over 10% for US Treasuries. Today they’re under 4%. Ignore.
Sensible Stories
By , Times of London, 06/04/2008
MarketMinder's View: Housing prices historically haven’t had a material impact on spending or the general economy.
Sensible Stories
By , Richmond Quarterly, 06/04/2008
MarketMinder's View: A must-read, level-headed discussion of the scale of housing woes and the implications of government intervention.
Market Misperceptions
By , CNBC.com, 06/04/2008
MarketMinder's View: Credit card debt is always portrayed as an evil that someday will come home to roost. But default rates remain low on a relative basis because (surprise!) most consumers use debt responsibly. A world with no debt isn’t a world you want to live in.
Market Misperceptions
By , The Wall street Journal, 06/04/2008
MarketMinder's View: How about no cap-and-trade system at all? See our commentary from yesterday, “Cap and Trade, or Shuck and Jive?”
Sensible Stories
By , via The International Herald Tribune, 06/03/2008
MarketMinder's View: Clearing further hurdles for euro membership shows the “rapid economic progress with pro-market reforms such as a flat income tax.” See our cover story, “Gooooooooooooal!” (5/12/2008), for more.
Market Misperceptions
By , The Wall Street Journal, 06/03/2008
MarketMinder's View: “While political protests are common in South Korea, the backlash over US beef has been surprising for its scale and relative lack of rationale.” We agree, and it’s disheartening that this could get in the way of important liberalizing measures like privatization.
Market Misperceptions
By , Reuters, 06/03/2008
MarketMinder's View: But “the average analyst sales estimate calls for an increase of 1.2 percent this May.” Last we checked, that’s still a positive number and indicative of growth. Once again, expectations seem too dour.
Market Misperceptions
By , The New York Times, 06/03/2008
MarketMinder's View: The headline is bearish, but we tend to agree with the person who states, “The reality was, there was no news.” How many days has the S&P risen or fallen more than 1% in one day this year? Quite a few.
Market Misperceptions
By , The Guardian, 06/03/2008
MarketMinder's View: Sorry, George, oil and stocks aren’t meaningfully correlated historically. If they were, we wouldn’t be experiencing a five-year (and counting) bull market as oil prices rise.
Market Misperceptions
By , Asia Times, 06/03/2008
MarketMinder's View: The Fed isn’t a regulator; it’s a lender of last resort. And extending lending facilities to broker/dealers has, so far, been innovative, and in our view, appropriate.
Sensible Stories
By , The Wall Street Journal, 06/03/2008
MarketMinder's View: We hope that France follows the UK’s lead, and that the UK does not retreat from the free movement stance it took four years ago.
Sensible Stories
By , The Wall Street Journal, 06/03/2008
MarketMinder's View: Index funds, passive investment vehicles, are now in the firing line of politicians—what next? Actually, we don’t want to know.
Sensible Stories
By , Bloomberg, 06/03/2008
MarketMinder's View: The global economy has grown ahead of expectations for some time. From here, continued growth, though somewhat slow, doesn’t look like recession.
Market Misperceptions
By , The International Herald Tribune, 06/03/2008
MarketMinder's View: We’re always wary of election year grandstanding giving way to actual “reform.” Regulation often has unintended, harmful consequences.
Sensible Stories
By , BBC News, 06/03/2008
MarketMinder's View: The OECD head says it would be “disastrous” if nations subsidized fuel to keep prices artificially low, because free markets are the best at signaling energy technology changes are necessary. We agree!
Market Misperceptions
By , The Wall Street Journal, 06/03/2008
MarketMinder's View: The view here on Chinese inflation is altogether too dour. Inflation is no longer a single-nation issue—one nation can export inflation and import deflation, and it’s the global view that matters. (Also, it’s worth noting the view on interest rate increases is off—China has raised rates eight times since 2006.)
Sensible Stories
By , The American, 06/03/2008
MarketMinder's View: Why are oil prices so high? Simple: increased demand and constricted supply. See our recent cover story, “Oil!” (6/2/2008), for more.
Sensible Stories
By , The Independent, 06/03/2008
MarketMinder's View: “Free market lobby groups” are behind a campaign to kill the cap-and-trade proposal Congress is debating. Is it any wonder? Free market acolytes understand cap-and-trade will likely have unintended negative economic consequences.
Market Misperceptions
By , Bloomberg, 06/03/2008
MarketMinder's View: We feel reasonably confident saying the Iranian president doesn’t seem to understand capitalism or free markets at all, and we can safely ignore his views on oil.
Sensible Stories
By , The Wall Street Journal, 06/03/2008
MarketMinder's View: And while they’re at it, countries need to “minimize export restrictions and import tariffs…and quickly resolve world trade talks.” Like the secretary general says, price controls “only distort markets and force prices even higher.”
Market Misperceptions
By , BusinessWeek, 06/02/2008
MarketMinder's View: We disagree. Lack of antitrust regulation isn’t a sign of decreased competition or anything else ominous! We know politicians will be back at it soon, but we prefer to see less regulation and more free markets policing themselves.
Sensible Stories
By , The Wall Street Journal, 06/02/2008
MarketMinder's View: An efficient market is one that is not interfered with, least of all by the government.
Sensible Stories
By , Chicago Sun Times, 06/02/2008
MarketMinder's View: We wouldn’t be having rail capacity issues if the economy were in a recession.
Market Misperceptions
By , CNNMoney.com, 06/02/2008
MarketMinder's View: Take monthly indicators with a grain of salt. This is unexpected positive news, but the numbers don’t mean much by themselves.
Sensible Stories
By , The Wall Street Journal, 06/02/2008
MarketMinder's View: It’s always nice to see expectations exceeded, particularly when everywhere you look you can’t escape the dreaded R – word.
Sensible Stories
By , Investor’s Business Daily, 06/02/2008
MarketMinder's View: Troubled by today’s US economy? The facts show things aren’t nearly as dire as most presume.
Market Misperceptions
By , CNNMoney.com, 06/02/2008
MarketMinder's View: The dollar and oil have a hazy relationship at best. Ultimately, commodity prices (e.g., dollar, oil) are driven by supply and demand.
Sensible Stories
By , Forbes, 06/02/2008
MarketMinder's View: Applying mathematics can help put life’s details into perspective.
Sensible Stories
By , BBC.com, 06/02/2008
MarketMinder's View: A reminder: Consumers have plenty of options when it comes to food.
Market Misperceptions
By , The Wall Street Journal, 06/02/2008
MarketMinder's View: You can argue any glass is half empty, but that doesn’t change reality—economic data is nowhere near as dour as most headlines purport.
Market Misperceptions
By , Associated Press, 06/02/2008
MarketMinder's View: Last we checked, high gas prices do not render your gas gauge inoperable. Energy expenditures are but a fraction of consumer spending—and growth in per capita personal income simply blows away growth in per capita energy spending.
Sensible Stories
By , Bloomberg, 06/02/2008
MarketMinder's View: Government action can affect a company’s willingness to do business. Companies thrive in environments with less regulation and more transparency.
Market Misperceptions
By , The Telegraph, 06/02/2008
MarketMinder's View: Using words and phrases such as Double Dip Recession, Stagflation and Great Depression are all designed to scare us, but it’s worth noting that in spite of all this doom the economy is still growing and the “wondering” markets have been moving higher.
Sensible Stories
By , MSNBC.com, 06/02/2008
MarketMinder's View: The residential real estate market is getting a boost—from abroad. Globalization can help cushion weak markets around the world.