Home → Fisher Investments MarketMinder Headlines → 07-2007 Archives

Sensible Stories
By , Globe and Mail, 07/31/2007
MarketMinder's View: Embracing global competition is a better option than protectionism.
Sensible Stories
By , Washington Post, 07/31/2007
MarketMinder's View: Volatility is common and shouldn’t be much of a concern to the long term investor. We think bulls will be running again.
Market Misperceptions
By , Morningstar.com, 07/31/2007
MarketMinder's View: No matter how you look at it, 10 cities is not a proxy for the entire US.
Market Misperceptions
By , Financial Times, 07/31/2007
MarketMinder's View: When all else fails, blame Greenspan? We don’t feel too bad for him though – he’s probably used to it by now.
Market Misperceptions
By , The Telegraph, 07/31/2007
MarketMinder's View: We’ll go out on a limb and say it might not be the best idea to base your entire investment strategy around the “hemline index.”
Sensible Stories
By , Associated Press, 07/31/2007
MarketMinder's View: How is it that we have a negative savings rate when we’re saving more money in 401(k)’s than ever? Broken government data - that's how.
Sensible Stories
By , The Wall street Journal, 07/31/2007
MarketMinder's View: Happy birthday Milton. Your ideas and policy proposals continue to create prosperity for people around the world.
Market Misperceptions
By , MSNBC.com, 07/31/2007
MarketMinder's View: You can ignore these lagging indicators but a weak housing market, higher gas prices and the dour media don’t seem to be affecting consumers much. Nor should they – the economy, the stock market and the labor market are all strong.
Sensible Stories
By , Sofia News Agency, 07/31/2007
MarketMinder's View: And you thought Harry Potter was the only one capable of magic.
Sensible Stories
By , International Herald Tribune, 07/31/2007
MarketMinder's View: The lowest unemployment rate in Japan since 1998 and six straight months of increased household spending – bullish for the Japanese market.
Sensible Stories
By , The Wall Street Journal, 07/31/2007
MarketMinder's View: Need we say more?
Market Misperceptions
By , The Irish Times, 07/31/2007
MarketMinder's View: Lending large sums of money to individuals and corporations was a risk-free endeavor before? That’s news to us.
Sensible Stories
By , Kudlow’s Money Politic$, 07/30/2007
MarketMinder's View: Recent economic numbers and current equity valuations – both looking good.
Market Misperceptions
By , CNNMoney, 07/30/2007
MarketMinder's View: Up or down – gasoline prices do not impact the stock market.
Sensible Stories
By , Businessweek, 07/30/2007
MarketMinder's View: “First of all, don't panic. The sky isn't about to collapse. For some perspective, let's get something straight: Markets go up and markets go down.” Simplistic advice is sometimes the best advice.
Sensible Stories
By , Kiplinger.com, 07/30/2007
MarketMinder's View: Keeping a cool head during gut-wrenching down days in the market will help you maintain your long-term perspective.
Market Misperceptions
By , MSNBC.com, 07/30/2007
MarketMinder's View: The default rate is still lower than most of the 1990s – a great time to be invested!
Sensible Stories
By , International Business Times, 07/30/2007
MarketMinder's View: Don’t underestimate the power of creativity to do deals.
Sensible Stories
By , The Times, 07/30/2007
MarketMinder's View: A “new kind of bull” or not – this bull market should continue.
Market Misperceptions
By , Globe and Mail, 07/30/2007
MarketMinder's View: Doomsdayers receive attention after one tough week in the market after being wrong for the last four years, go figure! There is a time to be bearish – now is not that time.
Sensible Stories
By , The Wall Street Journal, 07/30/2007
MarketMinder's View: We enjoy hearing strategies that focus on encouraging “risk taking, entrepreneurship, and capital formation” rather than raising more revenue for government.
Sensible Stories
By , Adam Smith Institute, 07/30/2007
MarketMinder's View: “Don’t you just love tax competition?” Yes we do!
Market Misperceptions
By , Briefing.com, 07/30/2007
MarketMinder's View: No kidding! When was the last time anything in the market was a sure thing? We still see plenty of underlying reasons for the bull market to continue.
Market Misperceptions
By , MSNBC News, 07/30/2007
MarketMinder's View: We’re more intrigued as to how high they can go.
Market Misperceptions
By , 07/27/2007
MarketMinder's View: “Suddenly” is the key word here. Market jitters rarely portend a new bear market. Market jitters are sudden and emotional, not fundamental. Stay bullish.
Market Misperceptions
By , Morningstar.com, 07/27/2007
MarketMinder's View: Funny, the last time we had a so-called “credit crisis” was 1998, which featured the collapse of Long Term Capital Management. In that same year, stocks were up big.
Market Misperceptions
By , Morningstar, 07/27/2007
MarketMinder's View: Despite nail-biting over the supposed credit crunch, there have only been a few isolated examples. In reality, corporate balance sheets look very healthy and liquidity is still plentiful. This looks very much like an emotionally-based worry right now and is not rooted in facts.
Sensible Stories
By , Kudlow’s Money Politic$, 07/27/2007
MarketMinder's View: What’s really refreshing is this rational view in sharp contrast with other emotional headlines this morning.
Sensible Stories
By , Financial Times, 07/27/2007
MarketMinder's View: Demand for shipbuilders is a sign of a booming global economy.
Market Misperceptions
By , Financial Times, 07/27/2007
MarketMinder's View: Hold it right there – we’ll accept slightly higher credit spreads, but not this!
Sensible Stories
By , 07/27/2007
MarketMinder's View: For more on this issue, see yesterday’s MarketMinder commentary, “Debt Disambiguation.”
Market Misperceptions
By , Financial Times, 07/27/2007
MarketMinder's View: We’re all for tax reform when it amounts to simplification of the tax code or reduction in rates – not for purposes of placing more money into the pockets of poli-tics.
Market Misperceptions
By , The Wall Street Journal, 07/27/2007
MarketMinder's View: These two companies’ combined quarterly profit was over $18 billion – we hope we age this well.
Sensible Stories
By , Financial Times, 07/27/2007
MarketMinder's View: An upbeat view on M&A. “…I do think we’re continuing to see healthy levels of transaction volume.”
Sensible Stories
By , The Wall Street Journal, 07/27/2007
MarketMinder's View: Strong growth and low inflation – we love it.
Market Misperceptions
By , BusinessWeek, 07/27/2007
MarketMinder's View: Playing the blame game is natural when folks start losing money. Absent true criminal activity, often folks are just trying to fault someone else for the fact their risks went sour.
Sensible Stories
By , Financial Times, 07/27/2007
MarketMinder's View: Little legislative change provides a healthy backdrop for equities.
Market Misperceptions
By , The Washington Post, 07/26/2007
MarketMinder's View: While we don’t disagree there has been weakness in the housing market, moves in real estate prices are not predictive of future stock market returns. (For more, see MarketMinder commentary “House of Horrors” – 06/28/2007)
Market Misperceptions
By , The Daily Telegraph, 07/26/2007
MarketMinder's View: Humans have difficulty scaling. If you’re not Bill Gates or Warren Buffet, $22bn is a lot of money. In comparison to the overall corporate debt market that's well into the trillions-barely a drop in the bucket.
Market Misperceptions
By , The Financial Times, 07/26/2007
MarketMinder's View: “The backlog of unsold homes…is at its highest since 1992.” And what happened after 1992? We experienced one of the biggest bull markets in history! This statistic alone won’t tell you the direction of the stock market.
Sensible Stories
By , NPR.org, 07/26/2007
MarketMinder's View: 3% GDP growth predicted for the US economy – not too shabby.
Sensible Stories
By , The Telegraph, 07/26/2007
MarketMinder's View: As keen observers of investor behavior, we just love this comment. “Because it kept us safe on the savannah, we fear losing more than we enjoy winning.” For more on this topic, search the “Behavioral Finance” topic in our Daily Commentary section.
Sensible Stories
By , The National Post, 07/26/2007
MarketMinder's View: Focusing on one-day moves in the market will drive you crazy. Besides, read past the scary headline and you’ll see that making significant investment decisions based on short-term moves sets yourself up for failure.
Market Misperceptions
By , The Wall Street Journal, 07/26/2007
MarketMinder's View: “Global economic output is growing faster than was expected just a few months ago, fueled by demand in China, India and other developing countries.” Hurray! Ignore comments that strong economic growth may fuel inflation. Inflation is always and everywhere a monetary phenomenon (so says Milton Friedman).
Market Misperceptions
By , CNNMoney.com, 07/26/2007
MarketMinder's View: Based on one day’s negative market move? The markets had a bigger one day drop in February only to recover and reach new highs. One day tells you nothing.
Sensible Stories
By , The Wall Street Journal, 07/26/2007
MarketMinder's View: We can’t help but hope that the sharp reduction of corporate tax rates sweeping across Europe finds its way across the Atlantic.
Sensible Stories
By , Financial Times, 07/26/2007
MarketMinder's View: A good piece on the leaving your emotions at the door when investing.
Sensible Stories
By , The Wall Street Journal, 07/26/2007
MarketMinder's View: “As a capitalist tool of our time, it is proof that capitalism does not just enrich investors but improves social welfare as well.” Indeed.
Sensible Stories
By , The Wall Street Journal, 07/26/2007
MarketMinder's View: A warning to politicians anxious to socialize medicine: Just because you provide health insurance to everyone doesn’t mean doctors will want to treat them. If Congress really wants to give people more access at competitive prices, they should let the free market work.
Market Misperceptions
By , The Financial Times, 07/25/2007
MarketMinder's View: We completely agree. We also have no doubt we’ll see a drop in equities at some point – just no time soon. Credit spreads remain low and earnings yields remain very attractive relative to borrowing costs. See our recent Commentary “Credit Crisis Conundrum” for more reasons not to believe the “credit crisis” hype.
Sensible Stories
By , The Telegraph, 07/25/2007
MarketMinder's View: Sometimes the M&A boom overshadows the buyback bonanza. Both decrease equity supply and pave the way for further market gains.
Sensible Stories
By , The Times, 07/25/2007
MarketMinder's View: So much for the media predictions of slowing M&A. With US$35 billion in M&A activity announced on Monday and now this, it’s shaping up to be a big week!
Sensible Stories
By , The Financial Times, 07/25/2007
MarketMinder's View: “Free trade should be just that.” We can’t hear that enough.
Market Misperceptions
By , The Wall Street Journal, 07/25/2007
MarketMinder's View: Great news! This means there is a healthy amount of skepticism out there and very little euphoria – this market should continue to climb the Wall of Worry.
Market Misperceptions
By , MSNBC, 07/25/2007
MarketMinder's View: Yes, and if you read the article you will see that prices edged up and inventory dropped.
Sensible Stories
By , Bloomberg, 07/25/2007
MarketMinder's View: Global growth remains strong and the credit crisis is overblown – need we say more?
Market Misperceptions
By , Morningstar, 07/25/2007
MarketMinder's View: We won’t dispute Mr. Gross’ track record as a bond manager but his equity market forecasts have been well off the mark, especially his prediction of Dow 5000 in 2002. For those of you not picking up a newspaper recently, the Dow closed yesterday just under 14,000.
Sensible Stories
By , Kudlow’s Money Politics, 07/25/2007
MarketMinder's View: The more we hear from Paulson about keeping America competitive, the more we like him.
Sensible Stories
By , The Wall Street Journal, 07/25/2007
MarketMinder's View: Politicians are the masters of unintended consequences. This is a great overview of the individuals benefiting from Private Equity.
Market Misperceptions
By , ABC News, 07/25/2007
MarketMinder's View: Up, down, or sideways, ignore this meaningless statistic.
Market Misperceptions
By , The National Post, 07/25/2007
MarketMinder's View: Usually media outlets blame higher oil prices for lower stocks, this time it’s the other way around. It doesn’t matter though, oil prices do not impact stock prices.
Market Misperceptions
By , Marketwatch, 07/25/2007
MarketMinder's View: Bull markets climb walls of worry and don’t typically end until optimism reigns supreme. Clearly not there yet.
Sensible Stories
By , TCS Daily, 07/24/2007
MarketMinder's View: A lesson for our ethanol-crazed friends: “Be careful what you wish for (ethanol), because there may be unintended consequences.” Can’t say it any better than that.
Market Misperceptions
By , Morningstar.com, 07/24/2007
MarketMinder's View: “Acting tired?” What does that even mean? Ignore!
Market Misperceptions
By , Bloomberg, 07/24/2007
MarketMinder's View: Not a crisis. The dollar’s relative value is not predictive of future market returns.
Market Misperceptions
By , Morningstar.com, 07/24/2007
MarketMinder's View: This one’s great—hitting on some major, provably false market myths: a weak dollar is bad, we’re dangerously over-indebted, we’re in a sub-prime induced credit crisis, the Iraq War is a big deal economically, budget deficits are the devil, America’s economy is a disaster, on and on and on. All wrong!
Sensible Stories
By , The Wall Street Journal, 07/24/2007
MarketMinder's View: Eastern European countries have widely discovered flat taxes lead to increased tax revenues. Maybe these ex-commies have something to teach us?
Market Misperceptions
By , The Herald Sun, 07/24/2007
MarketMinder's View: The prices of oil and stocks don’t correlate historically. If anything, this means your energy holdings should be treating you very well.
Sensible Stories
By , International Herald Tribune, 07/24/2007
MarketMinder's View: Tax cuts in France? And we thought we’d seen everything. If thinking less leads to lower taxes, we’re committed to . . . um . . . huh? {drools}
Market Misperceptions
By , CNNMoney.com, 07/24/2007
MarketMinder's View: We categorically dislike all governmental meddling in free markets. But the truth is, very few Americans are actually impacted by minimum wage—this is not a big deal, economically. All this means is a few more teenagers will be paid under the table.
Sensible Stories
By , The Wall Street Journal, 07/24/2007
MarketMinder's View: Required reading for anyone who believes the government can do a better job running anything than a free market.
Sensible Stories
By , Investors.com, 07/24/2007
MarketMinder's View: “Those who see the world ‘worse off’ because of globalization must explain why, as global trade has surged over the last 30 years or so, the rate of poverty around the world has plunged.” Amen.
Market Misperceptions
By , Financial Times, 07/24/2007
MarketMinder's View: Don’t let the media scare you out of stocks. Credit spreads remain contained, i.e. no credit crisis. (Read MarketMinder commentary “Credit Crisis Conundrum” for more – 07/12/2007.)
Sensible Stories
By , USA Today, 07/24/2007
MarketMinder's View: “The predictions of a deep freeze in the deal market looked pretty premature Monday when $35 billion in mergers and acquisitions were announced.” The boom continues!
Sensible Stories
By , Financial Times, 07/24/2007
MarketMinder's View: We’re glad Greenspan is enjoying retirement and the market now largely ignores his comments. But why did it take so long? Greenspan was a great Fed head—the best to date—but no capital markets seer. Remember his “Irrational Exuberance” speech in December of 1996? More than three years and 110% shy of the US market peak.
Market Misperceptions
By , NPR, 07/24/2007
MarketMinder's View: No matter how tear-jerking the anecdotes, they don’t signal systemic failure. Subprime is a small part of the overall market. Moreover, if facing trouble, many adjustable-rate mortgagees can refinance to still-historically-low fixed mortgage rates.
Sensible Stories
By , The Financial Times, 07/24/2007
MarketMinder's View: Ignore the article’s grumpy tone. Personal wealth grew to record levels in 2006 in the UK, and the British are wealthier than ever! This should be front page news!
Market Misperceptions
By , Morningstar, 07/23/2007
MarketMinder's View: Trying to game the market on a day to day or even week to week basis is not good for the health of your portfolio.
Sensible Stories
By , Kiplinger, 07/23/2007
MarketMinder's View: Understanding life expectancy is a key for creating a sound investment strategy.
Sensible Stories
By , 07/23/2007
MarketMinder's View: Wait a minute, what happened to the supposed credit crunch set to put an end to the M&A boom? There is no credit crunch, and Mergermania will continue, pushing stocks up along with it.
Sensible Stories
By , NPR.org and the Associated Press, 07/23/2007
MarketMinder's View: Explaining why the DJIA is not a good index, and that the new “record highs” are not really records at all.
Sensible Stories
By , The Associated Press via The Washington Post, 07/23/2007
MarketMinder's View: You’re probably asking yourself why on earth would we count the Beckham’s LA soiree as meaningful? So long as trite headlines like these make the front pages, truly important, earth-shattering market-sinking news is nowhere to be found.
Market Misperceptions
By , Bloomberg, 07/23/2007
MarketMinder's View: We’re not saying oil will necessarily hit $100 per barrel in a matter of months, but we’re hard-pressed to see how a significant decline in prices is near. Demand is simply too strong—and that’s a good thing. Either way, high energy prices don’t necessarily portend lower stocks or a sinking economy.
Market Misperceptions
By , Associated Press, 07/23/2007
MarketMinder's View: With only 1.7 million Americans making less than $5.15 per hour, the rate increase ultimately affects only 0.6% of the population.
Sensible Stories
By , Kudlow’s Money Politics, 07/23/2007
MarketMinder's View: Debunking some current fears on the dollar.
Market Misperceptions
By , Investors.com, 07/23/2007
MarketMinder's View: No.
Sensible Stories
By , Bloomberg, 07/23/2007
MarketMinder's View: Wall Street execs see no clear signs of a subprime contagion because there isn’t one! They realize, just as we do, subprime makes up a very small percentage of the overall credit market.
Market Misperceptions
By , BusinessWeek, 07/20/2007
MarketMinder's View: Bearish articles like this confirm it’s a good time to buy, buy, buy.
Sensible Stories
By , Globe & Mail, 07/20/2007
MarketMinder's View: The terrible unintended consequences of ill-advised government subsidies.
Sensible Stories
By , USA Today, 07/20/2007
MarketMinder's View: More evidence of why you should never trade on popular hype, and should instead rely on a rational, scientific method. (Though we eagerly anticipate arrival of our own book today.)
Market Misperceptions
By , The Wall Street Journal (*site requires registration), 07/20/2007
MarketMinder's View: See MarketMinder commentary “Height Fright” for more on how meaningless this is.
Market Misperceptions
By , FoxNews.com, 07/20/2007
MarketMinder's View: When don’t inflation concerns dominate Fed meetings? Isn’t that precisely the Fed’s job? To concern itself with inflation? Ignore.
Market Misperceptions
By , Morningstar.com, 07/20/2007
MarketMinder's View: Subprime is a “gateway” to exploitation? There will always be some marginal borrowers who default, but by and large, record numbers of Americans no longer pay rent and own an appreciating asset with major tax benefits. How is that exploitation?
Market Misperceptions
By , BusinessWeek, 07/20/2007
MarketMinder's View: Housing has been headline fodder all year long, yet the global economy is galloping and the market is roaring. If the market’s not fretting, you shouldn’t either.
Sensible Stories
By , The Wall Street Journal (*site requires registration), 07/20/2007
MarketMinder's View: Due to surging earnings over the last few years, Energy sector valuations remain below their historical averages. As investors figure out energy prices will likely stay higher for longer, expect to see these companies outperform.
Sensible Stories
By , The Wall Street Journal (*site requires registration), 07/20/2007
MarketMinder's View: That the market believes a merger this size is possible shows the power of the current stock-supply-reducing, cash-based M&A boom.
Sensible Stories
By , Financial Times, 07/20/2007
MarketMinder's View: America’s corporate tax rates are among the highest in the developed world, while other nations are in a competition for who can lower corporate taxes most. If America is going to maintain her global stature, we’d best start playing the tax cut game.
Sensible Stories
By , Global & Mail, 07/20/2007
MarketMinder's View: It’s funny that the only way socialist nations can have a modicum of success is by adopting non-socialist policies. Score another one for Adam Smith.
Market Misperceptions
By , The Financial Times, 07/20/2007
MarketMinder's View: So . . . everyone remembers the S&P was up 29% in 1998, right?
Sensible Stories
By , TCS Daily, 07/20/2007
MarketMinder's View: We’ll be taking a field trip to see this movie, wherever, whenever it’s showing. We recommend you do the same, and take your kids, friends, colleagues, pets, and even your enemies. Just see it . . . please.
Market Misperceptions
By , USA Today, 07/20/2007
MarketMinder's View: Ignore any and all articles focusing on one day’s market moves. Always.
Sensible Stories
By , The Wall Street Journal (*site requires registration), 07/20/2007
MarketMinder's View: As Milton Friedman said, “Inflation is always and everywhere a monetary phenomenon.” It’s not caused by economic growth.
Market Misperceptions
By , Los Angeles Times, 07/20/2007
MarketMinder's View: This is actually quite humorous, hitting on all the major conspiracy theories favored by grouchy perma-bears. (Note: Perma-bears are usually grouchy because being wrong that much is hard on the old portfolio.)
Market Misperceptions
By , Businessweek, 07/19/2007
MarketMinder's View: No. Of course one day it will end, but that’s not likely to be a 2007 event.
Market Misperceptions
By , The Financial Times, 07/19/2007
MarketMinder's View: Liquidity is not dwindling; the market looks great. We note that long-term rates in the US are at or BELOW levels seen a year ago. No credit crunches here!
Market Misperceptions
By , The Financial Times, 07/19/2007
MarketMinder's View: This would be scary if MarketMinder readers didn’t already know oil prices don’t impact stocks. Whew! Strong energy demand usually means high economic activity.
Market Misperceptions
By , Fortune, 07/19/2007
MarketMinder's View: Whatever the reason for today’s cautious sentiment, the combination of positive fundamentals and dour sentiment are the perfect backdrop for a bull market.
Sensible Stories
By , The Wall Street Journal, 07/19/2007
MarketMinder's View: MarketMinder remains politically agnostic, but we can’t help but agree: “An accurate and constructive vision of America sees a land of both inequality and opportunity, in which hard work and perseverance are the keys to jumping from the ranks of the have-nots to those of the haves. This vision promotes policies focused not on wiping out economic inequality, but rather on enhancing economic mobility.”
Sensible Stories
By , The Financial Times, 07/19/2007
MarketMinder's View: Ports are bursting at the seams due to strong economic growth worldwide.
Sensible Stories
By , Morningstar, 07/19/2007
MarketMinder's View: We can see it, Bernanke can see it…why can’t congress?
Sensible Stories
By , The New York Times, 07/19/2007
MarketMinder's View: Even municipalities are seeking better investments and higher yields through private equity!
Sensible Stories
By , Wall Street Journal, 07/19/2007
MarketMinder's View: The Treasury Secretary pulls no punches when talking about the need for a corporate tax overhaul.
Market Misperceptions
By , The Wall Street Journal, 07/19/2007
MarketMinder's View: This is not news. The Fed’s job is to worry about inflation and employment. Inflation is low and economic growth is strong – a great combination. If you read the Fed’s comments closely, you’ll see they agree.
Market Misperceptions
By , Morningstar, 07/19/2007
MarketMinder's View: As the article says, over the last 6 months the index fell at a 1.3% rate. In that same time the S&P 500 provided a total return in excess of 9%. If this is any sign of things to come, let’s hope leading indicators keep falling! Leading indicators don’t say much about future stock returns.
Sensible Stories
By , Kudlow’s Money Politics, 07/18/2007
MarketMinder's View: Call it goldilocks, call it whatever you want. There’s no doubt the spread of capitalism and free markets is a driver of this bull market and thriving global economy.
Sensible Stories
By , the Economist, 07/18/2007
MarketMinder's View: Evidence of M&A activity in Japan is emerging. See our past commentary, “Triangulation Reformation,” for more.
Sensible Stories
By , The New York Times, 07/18/2007
MarketMinder's View: We’re keeping an eye on protectionist sentiment—harmful tariffs could pose a threat to the global economy.
Market Misperceptions
By , 07/18/2007
MarketMinder's View: With the involvement of the Fed, the Office of Thrift Supervision, the FTC, the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators…it’s highly unlikely anything will be done. The nice feature about investigations and committees in the beltway is that they rarely result in meaningful regulation.
Market Misperceptions
By , Morningstar, 07/18/2007
MarketMinder's View: A big credit crunch would be a terrible thing for markets…the only problem is we’re not having one right now! Worries and threats don’t mean much until they actually materialize. Credit and liquidity markets today are robust and healthy.
Sensible Stories
By , The Financial Times, 07/18/2007
MarketMinder's View: There’s certainly heightened risk associated with emerging market debt, but this is a step in the right direction and a sign of continued capital markets expansion.
Sensible Stories
By , The Wall Street Journal, 07/18/2007
MarketMinder's View: We agree wholeheartedly! But must point out that rising share buybacks are not a risk to the stock market or evidence of questionable business practice…they’re simply the result of historically cheap stock valuations.
Sensible Stories
By , The Financial Times, 07/18/2007
MarketMinder's View: “Fact is, subprime is a relatively small part of the overall debt market and the talk is much ado about little.”
Sensible Stories
By , The Wall Street Journal, 07/18/2007
MarketMinder's View: An excellent perspective on mercantilism, trade, and the European economy.
Sensible Stories
By , 07/18/2007
MarketMinder's View: Private equity players continue to innovate and invest.
Sensible Stories
By , USA TODAY, 07/18/2007
MarketMinder's View: It’s always great to see innovation at work within free markets.
Market Misperceptions
By , The Wall Street Journal, 07/18/2007
MarketMinder's View: More anecdotal stories of real estate woe designed to scare us. Ignore.
Market Misperceptions
By , The Financial Times, 07/18/2007
MarketMinder's View: Ugh. The broken record on deficits continues. Meanwhile, the global economy (including the US) is chugging along nicely.
Sensible Stories
By , The Wall Street Journal, 07/18/2007
MarketMinder's View: It’s worth taking the time to read the Fed Chairman’s views, unfiltered by media analysis.
Market Misperceptions
By , The Australian, 07/17/2007
MarketMinder's View: No it’s not, says MarketMinder. As long as the fundamentals driving the boom remain in place (the historically unique earnings yield-bond yield positive spread) the M&A boom will continue.
Market Misperceptions
By , NPR.org, 07/17/2007
MarketMinder's View: Sure, big oil companies are making more money—but they’re not causing higher oil prices. Oil prices, like everything traded on a free market, are driven by supply and demand.
Sensible Stories
By , TampaBay.com, 07/17/2007
MarketMinder's View: “I'm not sure in the history of man, since our forefathers founded the country in 1776, that there's ever been a tax increase of 20,000." How does Congress expect to collect taxes on something people stop buying (legally)? This is how this works—jack up taxes, watch tax revenues dry up.
Sensible Stories
By , ABC News, 07/17/2007
MarketMinder's View: And, because most analysts are not accounting for stock supply shrinkage, they’ll continue to be surprised by stronger-than-expected earnings—very bullish.
Market Misperceptions
By , BusinessWeek, 07/17/2007
MarketMinder's View: Ah yes . . . ensuring this issue has absolutely zero power left to move the market. Markets move on what’s unexpected and economically fundamental, not on what’s been headline news for six months.
Market Misperceptions
By , The Financials Times, 07/17/2007
MarketMinder's View: Says who? Some broken, misleading government indicator? America’s and Britain’s official “saving rate” has declined because it doesn’t capture the new way the Brits and Americans save—through more efficient and productive investing! British and American household net worth is at or near record highs—ignore negative saving rate nonsense.
Market Misperceptions
By , Briefing.com, 07/17/2007
MarketMinder's View: MarketMinder faithful know that arbitrary and incorrectly built indices aren’t affected by unimportant, sentimental price points.
Sensible Stories
By , The Financial Times, 07/17/2007
MarketMinder's View: Happy?!? Personally, we cry ourselves to sleep at night if we think about the “state” too much.
Market Misperceptions
By , Kiplinger, 07/17/2007
MarketMinder's View: We think a cool movie would be about how each dollar Americans borrow changes hands an additional five times each year, contributing to economic growth and America’s record-large household net worth. It would be more accurate and less self-righteously preachy than this snoozer. We’re practicing our Oscar speech now!
Sensible Stories
By , The Wall Street Journal, 07/17/2007
MarketMinder's View: The greatest threat to consumers is not higher gas prices, but Congress’s ill-conceived legislation.
Sensible Stories
By , The Wall Street Journal, 07/17/2007
MarketMinder's View: The incredible benefits of increased access to capital, summed up by one new homeowner, “The key is the financing.”
Sensible Stories
By , The Wall Street Journal, 07/17/2007
MarketMinder's View: A true shining example of the benefits derived from free trade. The ITA eliminated tariffs on various IT products in multiple countries around the world. As such, companies expanded on a global scale and we saw significant productivity gains. You can now jump online and purchase a desktop computer for $350, while corporations are reducing costs and boosting profits! Trade deficits are awesome.
Sensible Stories
By , Bloomberg, 07/17/2007
MarketMinder's View: No matter what politicians or the media say, “international investors haven't lost confidence in the U.S. economic growth story.”
Sensible Stories
By , International Business Times, 07/16/2007
MarketMinder's View: Precisely! This is an exceptionally bullish feature of today’s environment. Stock buybacks, mergers, LBOs…they’re all good for stocks.
Market Misperceptions
By , The Wall Street Journal, 07/16/2007
MarketMinder's View: Volatility is a natural feature of markets, not something acting as a harbinger of demise. Interest rates are still very low by historical standards and the global money supply is still growing, yet inflation is benign. Stay bullish.
Sensible Stories
By , The New York Times, 07/16/2007
MarketMinder's View: An insightful look at the economics (and philosophy) of tax policy. One glance at the chart included shows just how “progressive” America’s tax policy already is.
Market Misperceptions
By , MSN-Money, 07/16/2007
MarketMinder's View: Pundits have squawked about this same old fear for close to a year now. (See our previous MarketMinder commentary, “Credit Crisis Conundrum” for a full refutation.)
Sensible Stories
By , The Associated Press via Newsvine, 07/16/2007
MarketMinder's View: With most Q2 earnings growth expectations for the S&P 500 between 4% and 5%, there’s plenty of potential for a surge if results come in better than expected. Stay tuned.
Sensible Stories
By , MarketWatch, 07/16/2007
MarketMinder's View: “This stupid law has to go.” Agreed.
Sensible Stories
By , The Herald Sun, 07/16/2007
MarketMinder's View: The M&A boom continues.
Market Misperceptions
By , CNBC, 07/16/2007
MarketMinder's View: As long as we’re discussing absurdities, we propose a next step: All CEOs should be required by SEC regulators to golf with a marker, not a pencil. At the end of the round, all scorecards must be audited by an impartial third party and verified by the board of directors. Any reported scores that are greater than two standard deviations lower than the CEO’s average score will be followed by mandatory drug tests and a formal inquiry into equipment usage immediately after the round.
Sensible Stories
By , The Wall Street Journal, 07/16/2007
MarketMinder's View: Great! Better to allow free markets to determine what’s important for global trade than to have senators propose new tariffs.
Sensible Stories
By , The Wall Street Journal, 07/16/2007
MarketMinder's View: The positive effects of capitalism at work in today’s developing countries…
Market Misperceptions
By , CNNMoney, 07/16/2007
MarketMinder's View: Ignore the headlines highlighting meaningless absolute price levels, especially from flawed indexes such as the Dow.
Market Misperceptions
By , US News, 07/16/2007
MarketMinder's View: Markets don’t “pray” for things to happen, they reflect all well-known information. Right now, markets are telling us there is no widespread credit problem due to subprime.
Sensible Stories
By , The Financial Times, 07/16/2007
MarketMinder's View: Metals prices should remain high as a result of strong economic growth and constrained supply. And look for the M&A boom to continue in this sector as well.
Market Misperceptions
By , The Economst, 07/16/2007
MarketMinder's View: Lack of liquidity would certainly cause distress…but the thing is, there is no sign of a liquidity crunch today.
Dueling Headlines
By , Time.com, 07/13/2007
MarketMinder's View: Huh? Who cares—consumer confidence numbers are lagging and in no way predictive.
Sensible Stories
By , The Financial Times, 07/13/2007
MarketMinder's View: “…there is still no clear evidence of economic weakness, as the most recent data underscore, or of a significant return by inflationary pressures.” You can say that again.
Sensible Stories
By , Café Hayek, 07/13/2007
MarketMinder's View: Unfortunately, it’s not much of a stretch to imagine some congressperson supporting intra-national protectionism. Those who can’t see trade between nations is as beneficial as trade between states are simply irrational (or politicians).
Market Misperceptions
By , The Economist, 07/13/2007
MarketMinder's View: Oil prices are rising! So? High oil prices currently are a symptom of increasing energy demand from a strong global economy when supply is restrained. Further, there’s no meaningful correlation between the prices of oil and stocks.
Market Misperceptions
By , BusinessWeek, 07/13/2007
MarketMinder's View: ZZZzzzzzzzzzzzzzzzz . . . Oh! Pardon us. Ahem. Please see MarketMinder commentary “Credit Crunch Conundrum” (07/12/07), “House of Horrors” (06/28/07), or go all the way back to February for “Don’t Go Blind from the Subprime” (02/20/07).
Sensible Stories
By , MarketWatch, 07/13/2007
MarketMinder's View: We agree!
Sensible Stories
By , BusinessWeek, 07/13/2007
MarketMinder's View: They usually do.
Market Misperceptions
By , CNNMoney.com, 07/13/2007
MarketMinder's View: “Sales drop 0.9 percent, much weaker than forecasts—a signal consumers are tired after years of heavy spending.” Except, consumer spending doesn’t regress to some colossal mean, and a big portion of that drop is tied to lower gas prices. Everyone likes lower gas prices, right?
Market Misperceptions
By , newsvine.com, 07/13/2007
MarketMinder's View: Nearly a one-year low? Oh no! We all know what disaster followed last year’s consumer confidence low. Oh, wait, the market’s been strongly positive since then. Nevermind.
Market Misperceptions
By , newsvine.com, 07/13/2007
MarketMinder's View: Good! The time to worry is when nobody can foresee any obstacles at all.
Sensible Stories
By , The Wall Street Journal, 07/13/2007
MarketMinder's View: Ireland’s corporate tax rate is less than one-third of America’s, yet their corporate tax receipts are nearly double ours. Hmm . . . maybe there’s something to this Laffer Curve thing.
Market Misperceptions
By , The Wall Street Journal, 07/13/2007
MarketMinder's View: Despite unease? No . . . because of it! Markets climb a wall of worry. An absence of worry is more troubling.
Sensible Stories
By , Forbes.com, 07/13/2007
MarketMinder's View: High fees can have a real impact on returns. Just say no to high mutual fund fees.
Market Misperceptions
By , The Financial Times, 07/12/2007
MarketMinder's View: We do agree with one thing, “The Bears felt queasy.” They’ll continue to feel queasy as this bull market powers through 2007.
Market Misperceptions
By , The Associated Press Business, 07/12/2007
MarketMinder's View: Really? The market seems to think otherwise—most retailers are rallying today.
Market Misperceptions
By , The Wall Street Journal, 07/12/2007
MarketMinder's View: This just about says it all, doesn’t it? There’s an almost palpable disbelief out there that the economy is thriving.
Sensible Stories
By , MarketWatch, 07/12/2007
MarketMinder's View: The M&A boom continues with another blockbuster deal!
Market Misperceptions
By , USA Today, 07/12/2007
MarketMinder's View: More inane fear of heights jabber. Stocks make a lot of new highs in a bull market. Get used to it.
Sensible Stories
By , Bloomberg, 07/12/2007
MarketMinder's View: Growth abroad once again exceeds expectations.
Market Misperceptions
By , The Associated Press via The Washington Post, 07/12/2007
MarketMinder's View: Yawn.
Sensible Stories
By , Fortune, 07/12/2007
MarketMinder's View: Huzzah! Hurrah! Yeehaw!
Sensible Stories
By , The Financial Times, 07/12/2007
MarketMinder's View: The US economy is likely to surprise many with its strength in the second half of this year.
Sensible Stories
By , The Wall Street Journal, 07/12/2007
MarketMinder's View: The deficit doesn’t matter for stocks. In fact, higher deficits might actually be good for them. Either way, one thing is very clear by now: Lower taxes and economic growth have reduced it.
Sensible Stories
By , George Mason University, 07/12/2007
MarketMinder's View: Unfettered capitalism might just mean (gasp!) less pollution.
Market Misperceptions
By , USA Today, 07/12/2007
MarketMinder's View: The latest example of data mining. Ignore.
Market Misperceptions
By , Dow Jones Newswires via Morningstar, 07/12/2007
MarketMinder's View: Neither of these issues is correlated to stock returns.
Sensible Stories
By , The Wall Street Journal, 07/12/2007
MarketMinder's View: While it is yet to be decided what kind of CO2 reduction legislation may be passed, it is clear reducing emissions will be technologically challenging and very costly.
Sensible Stories
By , The New York Times, 07/12/2007
MarketMinder's View: A fascinating look at cost-cutting and innovation in the airfreight and logistics businesses.
Sensible Stories
By , Kudlow’s Money Politics, 07/12/2007
MarketMinder's View: A brief but excellent commentary on inflation.
Sensible Stories
By , RealClearPolitics, 07/11/2007
MarketMinder's View: Some talking points in case you know any socialists.
Sensible Stories
By , TCS Daily, 07/11/2007
MarketMinder's View: Why congress’s love affair with ethanol is “a prime example of the government's throwing good money after a bad idea, of ignoring science and economics in favor of politics, and of disdain for free markets.” For more, see MarketMinder commentary “Subsidy Soapbox.”
Sensible Stories
By , The Boston Globe, 07/11/2007
MarketMinder's View: Today’s Fed has done a good job keeping inflation in check. Benign interest rates, low inflation, and strong employment create a backdrop for further economic growth.
Market Misperceptions
By , BusinessWeek, 07/11/2007
MarketMinder's View: Not by a long shot. As long as earnings yields remain above bond yields, CEOs can borrow cheaply and transact buybacks or take-overs accretive to earnings. Any CEO who can’t or won’t do so risks becoming a takeover target.
Sensible Stories
By , The Telegraph, 07/11/2007
MarketMinder's View: Greater access to capital for investment—such as from home equity —is a great thing. Investors have more sources for capital than even 10 or 20 years ago.
Sensible Stories
By , Pittsburgh Tribune-Review, 07/11/2007
MarketMinder's View: A fresh take on how globalization improves productivity and increases overall wealth.
Sensible Stories
By , The Herald Sun, 07/11/2007
MarketMinder's View: We don’t put too much stock in consumer confidence because it’s a lagging indicator. But it’s interesting that though the media seems to want to paint a weak economy, consumers don’t agree.
Market Misperceptions
By , Bloomberg, 07/11/2007
MarketMinder's View: Oh no! Investors are more pessimistic than right before the stock market rose for three years straight! What’s going to happen now? Will the stock market rise for FOUR years straight?
Market Misperceptions
By , The Wall Street Journal, 07/11/2007
MarketMinder's View: So, out of the $2.3 trillion in subprime loans issued between 2002 and 2006, ratings were cut on a total of $17.2 billion—otherwise known as 0.07%. How is that a meltdown? Maybe the fault is with us and we misunderstand “meltdown.” Does “meltdown” now mean “irrational to fret?”
Market Misperceptions
By , The Wall Street Journal, 07/11/2007
MarketMinder's View: Snooze. Currency moves don’t dictate stock market direction.
Sensible Stories
By , Briefing.com, 07/11/2007
MarketMinder's View: Yes it is! Articles like this help set the stage for too-low expectations. When earnings surprise to the upside, as we believe likely, they’ll drive stocks still higher.
Market Misperceptions
By , The Motley Fool, 07/11/2007
MarketMinder's View: Of course it is! But not this year. Earnings are strong, the global economy is growing, and this bull has room to run.
Market Misperceptions
By , Reuters, 07/11/2007
MarketMinder's View: If this news makes you happy, you’re not thinking about debt correctly. The US has a very high return on assets and needs more debt, not less, to makes its citizens wealthier.
Sensible Stories
By , The Wall Street Journal, 07/11/2007
MarketMinder's View: Yet another reason not to get caught up in Chinese stock market hype. Companies are increasingly sinking profits into the stock market, reaping investment gains and thus increasing earnings—but are they managing risk?
Market Misperceptions
By , BusinessWeek, 07/11/2007
MarketMinder's View: We can picture this editorial meeting: “If we keep parroting the same fear, one day . . . one day we’ll be right.” One day . . . but not today.
Market Misperceptions
By , The New York Times, 07/11/2007
MarketMinder's View: Bottom story of the day: A Berkeley economist doesn’t believe in free trade.
Market Misperceptions
By , The Motley Fool, 07/10/2007
MarketMinder's View: There is a great point here on the resiliency of the U.S. through many different economic scenarios. But we challenge you to find one worry in this piece that isn’t already widely known, and therefore already priced in to stocks.
Sensible Stories
By , The Wall Street Journal, 07/10/2007
MarketMinder's View: The next time you hear someone say they wish America would reduce its dependence on foreign oil, ask them if they mean Canada or Mexico (America’s two biggest sources of oil).
Market Misperceptions
By , The New York Times, 07/10/2007
MarketMinder's View: Oh no – a meaningless indicator has gotten even bigger! The only harm from a trade deficit is congressional efforts to reverse it…thereby squelching capitalism in the process.
Market Misperceptions
By , Kiplinger, 07/10/2007
MarketMinder's View: It’s almost axiomatic in finance that today’s best performers probably won’t be in the period ahead. Why on earth would anyone rely on yesterday’s results to generate returns in the future?
Sensible Stories
By , The Financial Times, 07/10/2007
MarketMinder's View: Capital Markets activity is surging around the world. There are more participants and more financial instruments to be used to continue global growth.
Market Misperceptions
By , USA Today, 07/10/2007
MarketMinder's View: We’ve seen this headline many times over the last few years—and it’s been wrong every time. Expect that trend to continue at least through this year.
Dueling Headlines
By , The Washington Post, 07/10/2007
MarketMinder's View: Hmm. Seems Carlyle didn’t get the message about the party being over. Fears about the private equity boom ending are misplaced—fundamentals driving M&A are still fully intact.
Market Misperceptions
By , Wall Street Journal, 07/10/2007
MarketMinder's View: Our ridiculous headline of the week. We thought we’d seen it all until we saw this. Hiring as a mode of cutting jobs? Try and wrap your head around that.
Sensible Stories
By , International Business Times, 07/10/2007
MarketMinder's View: A global view is the good and righteous thing for today’s stock investor. It’s important to broaden your scope beyond just your domicile country, or company’s you’ve heard of.
Sensible Stories
By , MarketWatch, 07/10/2007
MarketMinder's View: To quote Mr. Hulbert, “It's bullish when companies buy back their shares.” Agreed! This is a core concept of economics 101. If demand stays flat and supply is reduced, what happens…? Stock prices go up!
Market Misperceptions
By , 07/10/2007
MarketMinder's View: Quite simply, in aggregate, companies today are far cheaper than the cost of debt. The “rationale” for big private equity activity is just that…very rational.
Sensible Stories
By , The Economist, 07/09/2007
MarketMinder's View: An illustration of why all investors (and particularly men) need a benchmark to keep them from making costly cognitive investing errors.
Market Misperceptions
By , Money Week, 07/09/2007
MarketMinder's View: The Brits fret rising interest rates and a credit crisis, just as we Yanks do—and they’ll have the same impact on British stock prices, i.e., none.
Sensible Stories
By , Yahoo! Finance, 07/09/2007
MarketMinder's View: Sarkozy continues to talk as though he’s pro-free markets, but his actions will speak louder. He has a worrisome history of protectionism that bears vigilance.
Sensible Stories
By , Investors.com, 07/09/2007
MarketMinder's View: Strong jobs growth, solid wage growth and benign inflation. Nothing to complain about here.
Market Misperceptions
By , BusinessWeek, 07/09/2007
MarketMinder's View: No.
Sensible Stories
By , Café Hayek, 07/09/2007
MarketMinder's View: “How in the name of free-range chicken” does the Federal Trade Commission get capitalism so backwards?
Sensible Stories
By , The Wall Street Journal, 07/09/2007
MarketMinder's View: Forget any nonsense you read about the so-called “income gap” and finish that college degree: “The wage premium associated with a college degree has jumped to around 70% in recent years from around 30% in 1980.”
Sensible Stories
By , The Washington Post, 07/09/2007
MarketMinder's View: Virtually all companies are takeover targets!
Sensible Stories
By , Smart Money, 07/09/2007
MarketMinder's View: “There's a smaller group of television experts who seem to be permanently bearish. They are making a serious conceptual error by taking this stance.” Read more insight on the quirky world of TV market commentary here . . .
Sensible Stories
By , Bloomberg.com, 07/09/2007
MarketMinder's View: A historical look at what motivated Fed policy. But bear in mind, today’s Fed has access to vastly more real-time data, 24-7, and isn’t as likely to make as many gross policy errors as we’ve seen from past Feds.
Market Misperceptions
By , MarketWatch, 07/09/2007
MarketMinder's View: Yes! Earnings will likely be stronger than anyone fathoms. Articles like these set the stage for a positive surprise to drive stock prices higher!
Market Misperceptions
By , The Financial Times, 07/09/2007
MarketMinder's View: Can you pick up a newspaper these days and NOT read about companies being too leveraged, or the private equity boom being over? We didn’t think so. That tells us that those concerns are already priced into the market and there’s nothing to fear.
Sensible Stories
By , The Wall Street Journal, 07/09/2007
MarketMinder's View: Unfortunately, Congress shot itself in its free-market foot (see MarketMinder commentary “Free Trade Follies”). But demand for free trade is heating up in Asia—overall a very bullish sign.
Sensible Stories
By , The Wall Street Journal, 07/09/2007
MarketMinder's View: Why investing “rules of thumb” are potentially hazardous and costly.
Market Misperceptions
By , Bloomberg, 07/06/2007
MarketMinder's View: Markets correct all the time. Forecasting a correction over the next 12-months is rather like forecasting LA will see a bunch of sunny days this year. And what do you do, even if you think they’re right? Timing corrections—which are very short-lived—is a losing proposition.
Market Misperceptions
By , Morningstar.com, 07/06/2007
MarketMinder's View: Yippee! Journalists and newsletter writers still can’t see the historically unique earnings yield-bond yield spread makes stocks near-record cheap compared with bonds! This bull has room to run.
Sensible Stories
By , Time, 07/06/2007
MarketMinder's View: Ah yes, the lovely affects of government intervention. Pools and pools of unsold wine.
Sensible Stories
By , The Wall Street Journal, 07/06/2007
MarketMinder's View: Amazing what can be done without government intervention!
Sensible Stories
By , The Wall Street Journal, 07/06/2007
MarketMinder's View: Protectionism is one of the greatest threats to the sustainability of global economic growth. Keep markets free and trade barriers low! (See MarketMinder commentary “Free Trade Follies.”)
Sensible Stories
By , The Wall Street Journal, 07/06/2007
MarketMinder's View: Fortunately, this goofy bill allowing lawsuits against OPEC under US antitrust laws is unlikely to pass. And because of a growing global economy, our limited refining capacity, and our unwillingness to drill new areas, energy stocks are a good way to capitalize on oil prices likely to remain firm.
Sensible Stories
By , PoorAndStupid.com, 07/06/2007
MarketMinder's View: An excellent illustration of why investors must always question what they know and not be swayed by hype. Will you support the ban on Dihydrogen Monoxide? Join the fight!
Market Misperceptions
By , MSN Money, 07/06/2007
MarketMinder's View: Typical media fear flip-flop. Before, we were supposed to fear defaulting subprime mortgagees. Now, we’re supposed to fear cruelly tighter lending standards. Ignore—fixed mortgage rates are actually lower than a year ago. Money is still cheap and easy.
Sensible Stories
By , The Financial Times, 07/06/2007
MarketMinder's View: We love the competition worldwide to become the “financial center of ______ (fill in the blank with your region).” Businesses worldwide now have access to capital previously reserved for only the most developed of markets—this is bullish for the global economy and stock market.
Sensible Stories
By , The Economist, 07/06/2007
MarketMinder's View: Private equity deals are helping drive this bull market while making companies more efficient: “Corporate profits have risen to a 50-year high as a proportion of America's GDP. Companies have used the cashflow from those profits to buy back shares and pay down debt.”
Sensible Stories
By , Briefing.com, 07/06/2007
MarketMinder's View: Hmm . . . this is not what the media has been predicting. Odd. In reality, there just isn’t much to complain about economically right now.
Market Misperceptions
By , The Wall Street Journal, 07/06/2007
MarketMinder's View: Here’s a backward, Phillips curve argument: We should fret low unemployment because it can be “a signal of labor shortages that create wage and price pressures.” Hogwash! Low unemployment should be viewed with glee and national jubilation. Inflation is, always and everywhere, a monetary phenomenon.
Market Misperceptions
By , Telegraph, 07/06/2007
MarketMinder's View: Brits fret their debt too! How silly. British household net worth has risen sharply over the last few years and Britain’s total debt-to-equity ratio has remained very healthy. No need to worry.
Sensible Stories
By , Chicago Sun-Times, 07/06/2007
MarketMinder's View: More evidence of our healthy, growing economy.
Market Misperceptions
By , CanWest News Service, 07/05/2007
MarketMinder's View: This just in: “Experts” are confounded. Don’t listen to so-called experts. Look at the fundamentals and draw your own conclusions. Canada’s real estate market remains firm because, among other reasons, money is still historically cheap.
Market Misperceptions
By , CNNMoney.com, 07/05/2007
MarketMinder's View: Which is better? Congressionally-mandated higher minimum wage, or more entry-level retail jobs? No one’s going to pay a teenager $8.50 an hour to do a job worth $5.50 an hour. (By the way, unemployment remains near historic lows.)
Sensible Stories
By , The Washington Times, 07/05/2007
MarketMinder's View: Yes! A great read with this spot-on conclusion: “If we want to make America more secure, decrease gasoline prices, have cleaner fuels, and increase the reliability of supplies, we need to get the government out of the way of the entrepreneurs who can deliver those things.”
Market Misperceptions
By , The Wall Street Journal, 07/05/2007
MarketMinder's View: Rising rents are a testament to the strength of the US economy. This should be viewed as a positive.
Market Misperceptions
By , Bloomberg, 07/05/2007
MarketMinder's View: Let’s see if we understand this—“fair” means the “level playing field” should be equal to Germany’s corporate tax rate of 30%? Wouldn’t the playing field be just as “level” at Ireland’s 12.5% rate? How about a 0% corporate income tax in the EU—wouldn’t that be “fair?”
Market Misperceptions
By , BusinessWeek, 07/05/2007
MarketMinder's View: Yikes! No! One month’s market activity tells you nothing. Stocks are not serially correlated. Don’t be swayed by backward looking analysis.
Market Misperceptions
By , TheStreet.com, 07/05/2007
MarketMinder's View: The more the media trumpets the end of the M&A boom—the longer it has to run. Cash-based M&A reduces stock supply which, all else being equal, should drive stock prices higher
Sensible Stories
By , Telegraph, 07/05/2007
MarketMinder's View: Britain’s new chancellor says, “I think we should be very, very wary indeed of a knee-jerk reaction or a reaction to a day's headlines into making a tax change that could result in unintended consequences and undesirable consequences.” We won’t be surprised if US private equity firms flee to the UK.
Sensible Stories
By , The Wall Street Journal, 07/05/2007
MarketMinder's View: This is a potential market risk to monitor and a cause of great frustration for us. What does Congress have against Peruvians and Colombians? See MarketMinder commentary “Free Trade Follies” for more.
Sensible Stories
By , Time, 07/05/2007
MarketMinder's View: Who else “makes too much money?” Should we increase taxes on professional athletes or Hollywood movie stars? What about lawyers or doctors? How about accountants—they make more than Wal-Mart greeters. What about you? Do you make too much money?
Sensible Stories
By , Adam Smith Institute, 07/05/2007
MarketMinder's View: "The survey suggests that the public aren't as gullible as we'd hoped. Curses!" Always question what you believe—particularly if the belief’s supported by politicians.
Market Misperceptions
By , MarketWatch, 07/05/2007
MarketMinder's View: No, they’re not. Check out our data center piece “The US Consumer is Healthier and Wealthier than Ever.”
Market Misperceptions
By , The Motley Fool, 07/05/2007
MarketMinder's View: Be careful of claims that one particular asset class or style is inherently superior. Research shows all asset classes cycle in and out of favor and over long periods should have relatively similar returns.
Sensible Stories
By , USA Today, 07/05/2007
MarketMinder's View: More evidence fears the American economy is in trouble are just silly.
Sensible Stories
By , The Wall Street Journal, 07/05/2007
MarketMinder's View: Expect the market to continue looking past the headline “worries.”
Sensible Stories
By , Telegraph, 07/05/2007
MarketMinder's View: France is really a funny little place. They love Jerry Lewis, embrace socialism, and disdain jogging? It’s none-too-soon for someone like Sarkozy to get that ship back on course.
Market Misperceptions
By , Bloomberg, 07/05/2007
MarketMinder's View: When news stories have to stretch to point to Iceland’s bank rates as cause for alarm about inflation, we say, “Ignore!”
Sensible Stories
By , Tiraspol Times, 07/05/2007
MarketMinder's View: Even countries not recognized by the rest of the world have flat taxes—and revenues are booming! Find out more about this booming, free-market loving, impossible-to-pronounce, quasi-state.
Sensible Stories
By , MarketWatch, 07/05/2007
MarketMinder's View: Surprise, surprise! Amid all the mortgage-default fear mongering, mortgage rates are actually lower than they were a year ago.
Market Misperceptions
By , CNNMoney.com, 07/03/2007
MarketMinder's View: Yawn. See MarketMinder commentary “House of Horrors” for why this isn’t the nightmare scenario the media insists.
Market Misperceptions
By , Guardian Unlimited, 07/03/2007
MarketMinder's View: Here’s the way to make sure folks won’t be able to afford fuel—keep the price artificially high by subsidizing the cost.
Market Misperceptions
By , The Independent, 07/03/2007
MarketMinder's View: Big whoop. Currency value is not predictive of economic health or market returns.
Sensible Stories
By , Café Hayek, 07/03/2007
MarketMinder's View: The irrationality of raising taxes to influence behavior illustrated: “The only tax that we should raise is one that increases the cost of using government.”
Market Misperceptions
By , Briefing.com, 07/03/2007
MarketMinder's View: “Second quarter earnings aren't expected to be very strong.” Get ready for earnings to surprise to the upside, giving stocks a big boost.
Sensible Stories
By , Bloomberg, 07/03/2007
MarketMinder's View: Agreed! Europe is also benefiting from strong global growth and benign inflation. A strong Euro will not derail its momentum.
Market Misperceptions
By , Briefing.com, 07/03/2007
MarketMinder's View: Yes! Yet more dour, mean-reverting nonsense! Grumpy prognosticators make way for the bull parade to continue.
Sensible Stories
By , MarketWatch, 07/03/2007
MarketMinder's View: A good example of terrorism’s limited impact on the market. See MarketMinder commentary “Terror’s Toll.”
Sensible Stories
By , The Wall Street Journal, 07/03/2007
MarketMinder's View: Heck yes it does!
Sensible Stories
By , Bloomberg, 07/03/2007
MarketMinder's View: More positive news from around the globe.
Sensible Stories
By , The Everyday Economist, 07/03/2007
MarketMinder's View: A rational look at how market pressures impact the prices and production of oil, corn, and machetes.
Sensible Stories
By , The Washington Post, 07/03/2007
MarketMinder's View: This is a market risk to watch. Only poli-tics could view freer markets as a negative. Ratcheting protectionism is not healthy for a free-market economy. Thinking otherwise is simply irrational.
Sensible Stories
By , Kiplinger, 07/03/2007
MarketMinder's View: Hiring the right portfolio manager is one of the most important decisions you can make. Be very wary of product-wielding commission seekers who may not have your best interests in mind.
Market Misperceptions
By , Bloomberg, 07/03/2007
MarketMinder's View: We agree euphoria would be a good signal of a market peak, but articles like these inject yet more fear. And euphoria isn’t enough—there must also be a big, bad, little-noticed negative fundamental to really take the market down. We don’t see that right now . . .
Market Misperceptions
By , The Financial Times, 07/02/2007
MarketMinder's View: “This is an odd time to be setting records in leveraged buyouts.” No it’s not! Debt is cheap and earnings are high. We bet this record is broken soon.
Sensible Stories
By , Economist.com, 07/02/2007
MarketMinder's View: Mysterious indeed! This article nicely demonstrates why you cannot take gloom and doom reporting at face value. The US economy is more robust than the media reports.
Sensible Stories
By , Bloomberg, 07/02/2007
MarketMinder's View: The dangers of ratcheting government regulation and higher taxes illustrated: “The problem with such policies is that companies begin to expect inconsistency from government, and that can have a chilling effect on investment and risk taking.”
Sensible Stories
By , The Motley Fool, 07/02/2007
MarketMinder's View: An excellent point: The news media isn’t in the business of making better investors. They are in the business of having captive audiences to sell more advertising space. Be very skeptical of what you read.
Market Misperceptions
By , The Financial Times, 07/02/2007
MarketMinder's View: What sort of wrath will this be? Some UN-style wrath? Will Sarkozy get a strongly worded letter or be forced to sit at the kids table at next week’s Brussels meeting? Sarkozy is wise to not fret France’s budget deficit—let the rest of the EU stew.
Sensible Stories
By , Café Hayek, 07/02/2007
MarketMinder's View: Money is pouring into the United States. No, that’s not a typo. We said INTO the United States.
Sensible Stories
By , newsvine.com, 07/02/2007
MarketMinder's View: Japanese markets have begun to gather some steam as sentiment improves in the country.
Market Misperceptions
By , The Financial Times, 07/02/2007
MarketMinder's View: This article somehow manages to paint higher wages as a bad thing. Capitalism has increased wages in the developing world—good for Bangalore!
Market Misperceptions
By , The Financial Times, 07/02/2007
MarketMinder's View: Huh? We though London had overtaken New York as the “financial capital of the world.” Now there’s “a lively debate about the quality of the UK equity markets.” Which one is it? The fact is: There’s no single financial capital anymore nor do we need one. Businesses can access capital in myriad ways and places.
Sensible Stories
By , The Wall Street Journal, 07/02/2007
MarketMinder's View: After another tremendous quarter of M&A deals, expect further calls for the end of the boom. As long as earnings yields remain above bond yields globally, these deals should continue.
Sensible Stories
By , the Boston Globe, 07/02/2007
MarketMinder's View: Life expectancy is getting longer, which should increase demand for equities—your assets must grow to last as long as you do. Investors tend to vastly underestimate their time horizons and make the critical error of getting too “conservative” by investing too heavily in a static allocation of cash and bonds.
Market Misperceptions
By , The Wall Street Journal, 07/02/2007
MarketMinder's View: This is how this works: Weak growth = bad. Strong growth = inflation = bad. We’re confused, what doesn’t = bad? TIPS spreads and still historically-low long interest rates tell us inflation isn’t a worry right now.
Sensible Stories
By , MSN Money, 07/02/2007
MarketMinder's View: Stock returns are strong, and analysts are skeptical? Super bullish!
Sensible Stories
By , The New York Times, 07/02/2007
MarketMinder's View: We’re hardly surprised both South Korean and American poli-tics are skeptical of free trade. But we hope their goofy political posturing won’t hamper the deal—which will be a huge net positive for both the US and South Korea.