Home → Fisher Investments MarketMinder Headlines → 07-2008 Archives

Sensible Stories
By , The Independent, 07/31/2008
MarketMinder's View: Trade has expanded significantly right through the seven years of the ‘Doha round’ and there is no reason to suspect the barriers will go back up just yet.
Sensible Stories
By , The American, 07/31/2008
MarketMinder's View: Just fine, thanks. Today’s worries, when viewed in the proper context, are likely to end up “mere footnotes in a longer-term march of progress.”
Sensible Stories
By , Briefing.com, 07/31/2008
MarketMinder's View: While today’s GDP figure is nicely positive (and not recessionary), there are signs the economy is even stronger than the number suggests.
Sensible Stories
By , Financial Times, 07/31/2008
MarketMinder's View: Through improved self-discipline rather than excessive and inefficient regulation of their practices—sounds good to us.
Sensible Stories
By , CNNMoney, 07/31/2008
MarketMinder's View: Cash-based M&A activity constrains stock supply—bullish for prices. And while the headlines lament M&A woes, significant deals quietly continue—which is not what we’d see if credit were as tight as people fear.
Market Misperceptions
By , CNBC, 07/31/2008
MarketMinder's View: Reading into short-term fluctuations of volatile energy prices is pointless. Most indications point to strong global demand for energy—keeping prices firm.
Market Misperceptions
By , The Wall Street Journal, 07/31/2008
MarketMinder's View: Anecdotal stories may strike a chord, but the facts—which continue to be better than gloomy sentiment—are what ultimately matter. See today’s cover story, “Long Train Runnin’”, for more.
Market Misperceptions
By , Real Clear Markets, 07/31/2008
MarketMinder's View: Comparisons to the 1970s—when inflation, economic growth, and monetary policy were all much more problematic than today—are ridiculous.
Sensible Stories
By , Bloomberg, 07/31/2008
MarketMinder's View: Housing woes may linger, but it’s increasingly looking like the worst has passed.
Market Misperceptions
By , BBC News, 07/31/2008
MarketMinder's View: Inflation of 4.1% does not even compare with the levels of the late 1970s where Inflation rose above 25%.
Market Misperceptions
By , CNNMoney.com, 07/31/2008
MarketMinder's View: Wait…how is slower-than-thought growth last year a warning sign? Warning for what? Faster growth in 2008? We are duly warned.
Sensible Stories
By , The Washington Times, 07/30/2008
MarketMinder's View: We hope our politicians take note: “Investors were far more attracted to and far more willing to risk their money in the low-tax economies than the high-tax countries.”
Market Misperceptions
By , Telegraph, 07/30/2008
MarketMinder's View: Theories about extreme market movements abound, but they remain just that—theories. Ignore.
Sensible Stories
By , CNNMoney.com, 07/30/2008
MarketMinder's View: At best, consumer confidence is a coincident if not lagging indicator. It tells you nothing about future market direction.
Sensible Stories
By , The Wall Street Journal, 07/30/2008
MarketMinder's View: Even with the demise of the ‘Doha round’ there remains plenty of scope to reduce trade barriers either through trade agreements or bureaucratic reform.
Market Misperceptions
By , The New York Times, 07/30/2008
MarketMinder's View: It's difficult to make the argument that high energy prices hold back the economy when you look at both GDP growth and oil prices over the last 10 years.
Sensible Stories
By , National Review Online, 07/30/2008
MarketMinder's View: This automakers “bailout,” if it goes anywhere, doesn’t amount to much in the grand scheme of things. But the government would do better by letting failing companies fail.
Market Misperceptions
By , The Wall Street Journal, 07/30/2008
MarketMinder's View: The $90 billion of stimulus checks represent only a fraction of the US economy and as such can have only a negligible impact.
Market Misperceptions
By , MarketWatch, 07/30/2008
MarketMinder's View: As predicted, the housing bill lost much of its bite before reaching the White House. In our view, this bill will likely little impact the housing industry—and the less government intrusion the better.
Market Misperceptions
By , The Wall Street Journal, 07/30/2008
MarketMinder's View: The Doha Round may have been derailed, but that doesn’t mean the end of expanding global trade—global trade agreements have and will continue to happen without Doha. Doha was merely a stage for political interests, and its failure merely highlights how clashing interests often lead to inaction.
Market Misperceptions
By , Reuters, 07/30/2008
MarketMinder's View: Nothing to fear here. Firms can go bankrupt even in the best of times. Creative destruction is necessary to pave way for new innovations and increased efficiency.
Sensible Stories
By , Bloomberg, 07/30/2008
MarketMinder's View: Developments in Materials infrastructure is spurred by continued strong global demand from a growing global economy.
Sensible Stories
By , RealClearMarkets, 07/30/2008
MarketMinder's View: Will it happen? Who knows—but it’s nice to fantasize about better maintained roads. In most all practices, private enterprise does a far superior job than the government.
Sensible Stories
By , Briefing.com, 07/30/2008
MarketMinder's View: We’ll know tomorrow for sure, but it’s likely Q2 GDP numbers will pleasantly surprise investors.
Market Misperceptions
By , Bloomberg, 07/30/2008
MarketMinder's View: It’s true Financials profits have been hit hard, but focusing on one troubled area tells you little about overall economic health. Earnings ex-Financials are still growing. Plus, 1998 turned out to be a great year for stocks. See our recent cover story, “Earnings Expectations,” 7/29/2008 for more.
Market Misperceptions
By , Financial Times, 07/30/2008
MarketMinder's View: It’s not surprising some borrowers—rich or poor—may be hurt when lending terms tighten for certain credit risks. But the losses noted here are just a fraction of all prime loans, and remember, US consumer spending continues to grow.
Sensible Stories
By , Bloomberg, 07/30/2008
MarketMinder's View: In our view, the Fed’s actions remain appropriate and don’t indicate further financial weakness. Note: Overall bank borrowing at the Fed’s window has decreased over the last few months.
Sensible Stories
By , Investor’s Business Daily, 07/29/2008
MarketMinder's View: “In short, nothing is so falsely maligned in economics as free trade. It's made all of us wealthier and more secure.” – We couldn’t agree more.
Market Misperceptions
By , Reuters, 07/29/2008
MarketMinder's View: The housing slump has continued unabated for an extended period—yet growth continues. Housing could get worse or better from here, but its power to affect the overall economy appears limited.
Market Misperceptions
By , The Wall Street Journal, 07/29/2008
MarketMinder's View: “Could this be the first U.S. recession without a decline in economic output?” We hate to play Captain Obvious here but we will—it’s not a recession if you continue to see economic growth.
Sensible Stories
By , Briefing.com, 07/29/2008
MarketMinder's View: Will it? We’ll know soon enough, but GDP estimates have been consistently raised as data outstrip expectations.
Sensible Stories
By , Barron’s, 07/29/2008
MarketMinder's View: For all the hype, the SEC’s recent rule changes and rumor investigations are more cosmetic than consequential.
Sensible Stories
By , International Herald Tribune, 07/29/2008
MarketMinder's View: It’s a scary headline, but note the sustained interest of big investors (foreign or other) who believe Financials’ long-term prospects remain worthy.
Market Misperceptions
By , Bloomberg, 07/29/2008
MarketMinder's View: Many would-be prophets search for cracks in the pillars of US supremacy. But correlating the hunks of gold a country earns for speed walking, fencing, or any other Olympic event to economic power is at best a stretch—at worst a groin pull.
Sensible Stories
By , The Wall Street Journal, 07/29/2008
MarketMinder's View: Large, strategic M&A deals continue.
Market Misperceptions
By , The Independent, 07/29/2008
MarketMinder's View: We don’t put too much faith in IMF projections but there is a clear distinction between write-downs and losses. But if you do put a lot of faith in the IMF you’ll be pleased to know they’ve been raising growth forecasts—not lowering them.
Market Misperceptions
By , Reuters, 07/29/2008
MarketMinder's View: Good or bad, avoid relying on consumer confidence as any kind of forward-looking indicator. Folks typically base their subjective opinions on past or current events.
Market Misperceptions
By , Reuters, 07/29/2008
MarketMinder's View: For some reason, investors wanted to blame speculators on the way up, and supply and demand on the way down. Doesn’t work that way. Overall, oil prices will likely remain firm due to constrained supply and growing demand.
Sensible Stories
By , The Economist, 07/28/2008
MarketMinder's View: An interesting article about new efforts to improve the dismal science.
Sensible Stories
By , Times Online, 07/28/2008
MarketMinder's View: Pessimists are repeating the bad news that didn’t break the economy six months ago. Why would it now?
Sensible Stories
By , Carpe Diem, 07/28/2008
MarketMinder's View: While the dollar’s decline coupled with speculation probably play minor roles in high oil prices, “the main contributing factor to high oil prices over the last two years appears to be the supply-demand imbalance that started in mid-2006.”
Sensible Stories
By , The Telegraph, 07/28/2008
MarketMinder's View: The economy has pulled through tougher conditions than we are experiencing now without falling into recession.
Market Misperceptions
By , Associated Press, 07/28/2008
MarketMinder's View: We haven’t seen a budget deficit headline in a while, which is just as well. The deficit isn’t the big bad bogeyman many fear—historically, big deficits have led to fine stock returns. It’s surpluses we should fear!
Market Misperceptions
By , The Wall Street Journal, 07/28/2008
MarketMinder's View: We aren’t surprised by the latest bank failures, and wouldn’t be surprised to see a few more. Lest we forget, in a free market, failure leads to more effective solutions. See our 07/15/2008 cover story, “Don’t Fear Failure” for more.
Market Misperceptions
By , The Motley Fool, 07/28/2008
MarketMinder's View: Don’t get hooked by such gloomy presumptions—they’re an easy sell when the market environment is bumpy. Ignore.
Sensible Stories
By , The Wall Street Journal, 07/28/2008
MarketMinder's View: This is good news and worth keeping an eye on.
Market Misperceptions
By , International Herald Tribune, 07/28/2008
MarketMinder's View: “We are in an exceptionally volatile period.” A turbulent market? Yes. But, we’ve seen this type of volatility before—folks tend to forget past periods of similar volatility. Market volatility is normal.
Market Misperceptions
By , Guradian, 07/28/2008
MarketMinder's View: “Raw capitalism has been allowed to run amok and re-regulation is clearly needed to stabilise financial markets.” Egad! Hopefully the folks actually making decisions don’t feel this way.
Sensible Stories
By , CNNMoney, 07/28/2008
MarketMinder's View: The headline says it all—corporate earnings are better than expected.
Sensible Stories
By , Financial Times, 07/28/2008
MarketMinder's View: Protectionists tend to forget that freer trade brings benefits to countries on both sides of the agreement.
Market Misperceptions
By , Times Online, 07/28/2008
MarketMinder's View: Headlines like this make you fearful of double digit inflation not the current rate of 1.9%.
Sensible Stories
By , The Wall Street Journal, 07/28/2008
MarketMinder's View: The high-end luxury goods industry enjoys success in “broadening its reach beyond the upper crust and into the growing ranks of the affluent.” Growing ranks of affluent…that’s not so bad.
Market Misperceptions
By , The Wall Street Journal, 07/28/2008
MarketMinder's View: It takes some serious linguistic and rhetorical gymnastics to arrive at a recession when the economy continues to grow.
Market Misperceptions
By , CNNMoney, 07/25/2008
MarketMinder's View: Good economic news is boring. So when faced with undeniably positive data like today’s durable orders figure, there’s a perverse need to add gloomy spin.
Sensible Stories
By , BBC, 07/25/2008
MarketMinder's View: Worth keeping an eye on. Let’s hope this talk turns into freer trade.
Sensible Stories
By , Fortune, 07/25/2008
MarketMinder's View: “Driving out speculators and hedgers is not the way to solve the oil problem. And limiting their activity will only make the market less efficient.” Darn right!
Sensible Stories
By , Financial Times, 07/25/2008
MarketMinder's View: When it comes to central banks, “Independence is essential to prevent monetary policy from being used for political ends.” Take note ECB.
Market Misperceptions
By , Bloomberg, 07/25/2008
MarketMinder's View: Brazil’s market has surely been volatile. But remember, it’s quite common for individual emerging market stocks to rocket up or down very quickly.
Market Misperceptions
By , The Wall Street Journal, 07/25/2008
MarketMinder's View: “Markets are groping for guidance…You need government to lay out a policy.” A truly free market guides itself better than any government policy. Let’s hope this talk stays just that—talk.
Sensible Stories
By , Guardian, 07/25/2008
MarketMinder's View: Those thinking green should take a tip from Scandinavia: “There will be no belief in green industries without the belief that you can make money out of it. This, not concern for the environment, is the biggest motivator for change.”
Sensible Stories
By , Carpe Diem, 07/25/2008
MarketMinder's View: This article reminds us that while food and oil prices are high, prices for many other goods have dropped significantly over the last decade.
Dueling Headlines
By , The Independent, 07/25/2008
MarketMinder's View: Well, it looks like Americans aren’t the only ones confused about the direction of their economy.
Market Misperceptions
By , Times Online, 07/25/2008
MarketMinder's View: A repeat of the economic conditions from 2005 onwards wouldn’t be so bad.
Market Misperceptions
By , CNNMoney, 07/25/2008
MarketMinder's View: What looks like political finger-pointing is in reality a regret-shunning festival. Surely there were some shady practices, but overall the mortgage lenders created more prosperity than ills.
Sensible Stories
By , The Wall Street Journal, 07/25/2008
MarketMinder's View: If you read one thing today (in addition to our cover story, of course), this should be it.
Sensible Stories
By , The New York Times, 07/25/2008
MarketMinder's View: Trade would be a lot more efficient and beneficial for everyone with less government interference.
Sensible Stories
By , Financial Times, 07/25/2008
MarketMinder's View: Heck, it’s always a good time to embrace freer trade—not just with China, but with most of the globe.
Market Misperceptions
By , The Wall Street Journal, 07/24/2008
MarketMinder's View: Sure, budget cuts are painful, but this is the Laffer Curve in action: States with high income and corporate tax rates have the largest shortfalls, while states with the lowest rates are doing just fine.
Sensible Stories
By , Financial Times, 07/24/2008
MarketMinder's View: The notion of so-called safe havens, be they currencies or commodities such as gold, is plain wrong.
Sensible Stories
By , Investor’s Business Daily, 07/24/2008
MarketMinder's View: “Each day we're not in a downturn makes it less likely we will enter one. And someday, those who perpetually forecast economic Armageddon in the very next quarter, and who are wrong, will have to admit it. The economy's more resilient than they think.”
Sensible Stories
By , Overcoming Bias, 07/24/2008
MarketMinder's View: Here’s a great reason the SEC’s rumor crackdown is unnecessary: “Those who spread false rumors via gossip are less reliably punished than those who sell short a stock they know to be valuable.” The market usually doles out the best punishment.
Sensible Stories
By , BBC News, 07/24/2008
MarketMinder's View: Quelle bonne surprise! Perhaps now France can be on the road to being competitive again.
Sensible Stories
By , Café Hayek, 07/24/2008
MarketMinder's View: A short and sweet analysis of today’s national minimum wage increase.
Market Misperceptions
By , Asia Times, 07/24/2008
MarketMinder's View: Sure, protectionism is bad—but predictions of the complete unwinding of 100 years of trade liberalization are completely overwrought.
Market Misperceptions
By , Times Online, 07/24/2008
MarketMinder's View: Hurricanes usually have little lasting impact on oil prices—the very reason being that the fear of supply disruption is very much discounted into prices.
Market Misperceptions
By , The Wall Street Journal, 07/24/2008
MarketMinder's View: If you saw your hedge fund manager taking two hours off during the trading day, how would that make you feel?
Sensible Stories
By , RealClearPolitics, 07/24/2008
MarketMinder's View: While the government may be overly blamed for starting the “credit crunch,” the sentiment over intervention to “fix” it is on the mark. “Like most political solutions, these are likely to make matters worse.”
Sensible Stories
By , The Wall Street Journal, 07/24/2008
MarketMinder's View: “At $4.59 a gallon, motorists don't need to be lectured by politicians . . . Those who want to stretch their dollars can drive 55 mph on their own.” We agree; see our 4/7/08 cover story, “That '70s Show,” for more.
Sensible Stories
By , Reuters, 07/24/2008
MarketMinder's View: Despite the US and EU offering to slash farm subsidies, negotiations at the latest WTO talks appear to be stalling fast. This is worth keeping an eye on—freer trade is good for everyone.
Market Misperceptions
By , Reuters, 07/24/2008
MarketMinder's View: These lawsuits are just another classic case of regret shunning.
Market Misperceptions
By , via The International Herald Tribune, 07/24/2008
MarketMinder's View: Ignore—confidence is, at best, a lagging or coincident indicator.
Market Misperceptions
By , Bloomberg, 07/23/2008
MarketMinder's View: Energy prices have risen with increased demand from a healthy global economy—not speculation. Legislation in this area will likely bring only unintended, negative consequences.
Sensible Stories
By , The Wall Street Journal, 07/23/2008
MarketMinder's View: Prices move relative to expectations, not the absolute results themselves. Much of the gloom for financial stocks may already be priced in.
Market Misperceptions
By , The Financial Times, 07/23/2008
MarketMinder's View: It’s amazing that some people still believe these headlines. There is no correlation between oil prices and the stock market.
Market Misperceptions
By , CNNMoney, 07/23/2008
MarketMinder's View: Actually, “A Treasury Department study released last year, which followed nearly 170,000 taxpayers, found median income of those workers rose 24% between 1996 and 2005.” Not exactly losing ground.
Market Misperceptions
By , Bloomberg, 07/23/2008
MarketMinder's View: Government inflation indicators are notoriously inaccurate (See our 7/17/2008 cover story “CPI: Rotten to the Core” for more.), but this may be a new low.
Sensible Stories
By , The New York Times, 07/23/2008
MarketMinder's View: “The rise in oil prices over the last five years was “largely due” to fundamental factors like rapidly rising consumption” – Exactly.
Sensible Stories
By , Briefing.com, 07/23/2008
MarketMinder's View: We’ll get the initial Q2 GDP number next week—but it looks like growth will exceed expectations….again.
Sensible Stories
By , The Wall Street Journal, 07/23/2008
MarketMinder's View: In our view the Treasury and the Fed have so far acted appropriately and, when necessary, creatively.
Sensible Stories
By , RealClearPolitcs.com, 07/23/2008
MarketMinder's View: A level-headed discussion of absurd comparisons to the 1930s.
Market Misperceptions
By , Reuters, 07/23/2008
MarketMinder's View: Folks tend to think Republicans are better for stocks than Democrats. But historically, stocks overall don’t much care which party is in the White House.
Sensible Stories
By , CNNMoney, 07/23/2008
MarketMinder's View: We can’t say it better than this: “While it is tempting to declare that the American consumer is finally tapped out, it simply doesn’t appear to be true. Despite plunging consumer confidence, people aren’t necessarily acting as skittish as they claim to be.”
Market Misperceptions
By , Bloomberg, 07/23/2008
MarketMinder's View: $5 billion sounds like a big number. But it represents less than 1% of the trillions of dollars of loans on Fannie’s books.
Sensible Stories
By , The New York Times, 07/23/2008
MarketMinder's View: Scrapping these subsidies altogether would be better still, but this is a start.
Market Misperceptions
By , Bloomberg, 07/22/2008
MarketMinder's View: $25 billion sounds huge, but it’s a small amount relative to the entire US economy. The long-term benefits in this case far outweigh any short-term cost. See our 07/14/2008 cover story, “About Fannie and Freddie…” for more.
Market Misperceptions
By , BBC News, 07/22/2008
MarketMinder's View: Growth of 7.6% across Asia is still very strong.
Sensible Stories
By , The Wall Street Journal, 07/22/2008
MarketMinder's View: “The inviolable law of futures markets is that someone has to take the other side of any option.” – Exactly, not everyone can ‘speculate’ that prices go up.
Sensible Stories
By , Fortune, 07/22/2008
MarketMinder's View: We’re all for the debunking of myths. This offers a great explanation of two common Fed misperceptions.
Sensible Stories
By , Bloomberg, 07/22/2008
MarketMinder's View: It’s nice to see the US contingent acknowledging the drawbacks of subsidies. Let’s hope these words are put into action.
Sensible Stories
By , The Wall Street Journal, 07/22/2008
MarketMinder's View: Russian firms aren’t trying to take over the US, they’re simply embracing capitalism to make a buck—“just like the rest of us.” Besides, note the amount of investment: a few billion. That’s chump change compared to a US economy with assets in the tens of trillions.
Market Misperceptions
By , Associated Press, 07/22/2008
MarketMinder's View: The Fed will do what they feel is necessary—and so far they’ve acted appropriately. Inflation expectations, as indicated by long government bond yields and TIPS spreads, remain historically benign.
Market Misperceptions
By , CNNMoney, 07/22/2008
MarketMinder's View: Despite short-term swings, expect oil prices to remain firm overall because of strong global demand and limited near-term supply.
Sensible Stories
By , Times Online, 07/22/2008
MarketMinder's View: Markets have a low hurdle to clear when expectations are so depressed.
Sensible Stories
By , SFGate, 07/22/2008
MarketMinder's View: The US remains an attractive investment opportunity for foreign firms. That’s a good thing.
Market Misperceptions
By , Reuters, 07/22/2008
MarketMinder's View: Oh no! This is a horrible idea and will surely have unintended consequences. Hopefully, it won’t see the light of day. See our 07/16/2008 cover story, “Demand or Speculate” for more.
Sensible Stories
By , VOX, 07/22/2008
MarketMinder's View: Ill-advised policies, not speculation, have much to do with current food prices.
Sensible Stories
By , Bloomberg, 07/22/2008
MarketMinder's View: “In spite of the hand-wringers, the US economy isn't mired in a recession—and that's not just a technical matter of definitions.” Check the facts—the economy is better off than many believe.
Sensible Stories
By , The New York Times, 07/22/2008
MarketMinder's View: Whilst talks don’t necessarily signal action, we do applaud the intention to reduce tariffs.
Sensible Stories
By , Times Online, 07/21/2008
MarketMinder's View: The title says it all.
Market Misperceptions
By , Bloomberg, 07/21/2008
MarketMinder's View: There’s a big difference between what US companies say (via anonymous survey) and what US companies actually do—one’s important, the other sometimes misleading.
Sensible Stories
By , Reuters, 07/21/2008
MarketMinder's View: This massive all-cash deal illustrates M&A activity continues to constrain stock supply and should help bolster aggregate stock prices.
Sensible Stories
By , The Wall Street Journal, 07/21/2008
MarketMinder's View: “A global agreement to free trade further would be the best news markets and consumers have heard in a long time.” We couldn’t agree more.
Sensible Stories
By , Briefing.com, 07/21/2008
MarketMinder's View: When all else fails, do the math. You’ll find economic growth continues to be positive and sentiment remains unduly negative.
Market Misperceptions
By , The Wall Street Journal, 07/21/2008
MarketMinder's View: To say regulation has its flaws seems the understatement of the century. Free markets have their flaws too, but don’t mistake natural, healthy functioning for a flaw. Healthy free markets undergo cycles punishing excess and poor risk management. That’s not necessarily a flaw.
Market Misperceptions
By , The Wall Street Journal, 07/21/2008
MarketMinder's View: So-called leading indicators don’t tell investors much of anything—we’ve seen continued positive economic growth thus far, and all signs seem to point to more of the same in the near future.
Sensible Stories
By , The American, 07/21/2008
MarketMinder's View: Though unlikely at present, we’re always vigilant of extreme regulatory backlashes. See today’s cover story, “Your Mother Was a Hamster,” for more.
Market Misperceptions
By , The Wall Street Journal, 07/21/2008
MarketMinder's View: Much as folks push Newtonian investing models, the root drivers will always be human. Trying to time markets on patterns alone will suck your account dry and tie your brain in knots.
Market Misperceptions
By , The Independent, 07/21/2008
MarketMinder's View: Economists correctly called 12 out of the last 2 recessions.
Sensible Stories
By , The American, 07/21/2008
MarketMinder's View: An excellent (and interesting!) history of money.
Sensible Stories
By , Times Online, 07/21/2008
MarketMinder's View: This is good to see—raising taxes on business just leads to businesses going elsewhere.
Market Misperceptions
By , The Telegraph, 07/21/2008
MarketMinder's View: Wow! This reads like some sort of 200mph treasure hunt in search of bad data.
Sensible Stories
By , The Economist, 07/21/2008
MarketMinder's View: A new Chinese trust-busting law will likely have both positive and negative consequences—but that government-owned monopolies are not exempt from this law is a step in the right direction.
Sensible Stories
By , Times Online, 07/18/2008
MarketMinder's View: “The fund now expects global growth of 4.1 per cent this year, against its 3.7 per cent forecast in April.” Go back and read that again. Growth forecasts are now being revised upwards—bullish!
Sensible Stories
By , The Wall Street Journal, 07/18/2008
MarketMinder's View: Raising taxes on “the rich” encourages them to, well, leave—taking their tax revenue with them.
Sensible Stories
By , Bloomberg, 07/18/2008
MarketMinder's View: Breaking news: Nationalizing oil companies leads to decreased private sector investment! Also, even Venezuela understands foreign investment is good, not bad.
Sensible Stories
By , Briefing.com, 07/18/2008
MarketMinder's View: Hoarded cash is a good thing. When it eventually gets back in the game, whether through stock investment or M&A, stocks should benefit.
Sensible Stories
By , The Wall Street Journal, 07/18/2008
MarketMinder's View: While we don’t think the innovation culture in America is about to disappear, this is a great example of the unintended consequences of government intervention.
Market Misperceptions
By , The Telegraph, 07/18/2008
MarketMinder's View: Isn’t it funny that speculation or “market abuse” only applies when prices move in a direction that politicians don’t like.
Market Misperceptions
By , Bloomberg, 07/18/2008
MarketMinder's View: Mon Dieu! Even this kind of protectionism reduces our quality of life.
Market Misperceptions
By , CNBC.com, 07/18/2008
MarketMinder's View: Beware extrapolations of short-term trends: A two day rally reveals nothing either way.
Market Misperceptions
By , Reuters, 07/18/2008
MarketMinder's View: Giving up the right to name your child for a gas card? C’mon.
Sensible Stories
By , Bloomberg, 07/18/2008
MarketMinder's View: M&A activity continues to pick up, constraining stock supply—a positive force for stocks.
Sensible Stories
By , The Wall Street Journal, 07/18/2008
MarketMinder's View: Mortgage securitization, like most innovations, isn’t perfect. But it’s helped many homeowners—the vast majority of whom are in no danger of foreclosure—realize the American dream.
Market Misperceptions
By , The New York Times, 07/18/2008
MarketMinder's View: This L-ish article presumes a recession despite continued economic growth. Growth, even modest growth, isn’t recession. Ignore.
Sensible Stories
By , The New York Times, 07/18/2008
MarketMinder's View: High gas prices don’t mean the end to the American love affair with the automobile. And a dollar spent, whether for a gun rack in your pickup or a sunroof for your Mini, contributes to the still-growing global economy.
Sensible Stories
By , New York Post, 07/18/2008
MarketMinder's View: Monthly statistics are erratic and not predictive. This is doubly true for a flawed indicator like CPI. See our 7/17/2008 cover story, “CPI: Rotten to the Core” for more.
Market Misperceptions
By , Reuters, 07/18/2008
MarketMinder's View: Sentiment indicators, especially from anecdotal polls like this one, aren’t predictive of anything. In fact, consumer spending continues to exceed expectations.
Sensible Stories
By , Forbes, 07/17/2008
MarketMinder's View: Corporate earnings continue to beat expectations.
Sensible Stories
By , Marginal Revolution, 07/17/2008
MarketMinder's View: A fascinating take on how the market’s expectation of future supply and demand moves prices.
Sensible Stories
By , MarketWatch, 07/17/2008
MarketMinder's View: A good rundown of the potential unintended negative consequences the SEC’s new rules on short selling could bring.
Market Misperceptions
By , The Wall Street Journal, 07/17/2008
MarketMinder's View: This search for a scapegoat is a classic regret shunning tactic, and something we typically see when sentiment is dour.
Sensible Stories
By , The Wall Street Journal, 07/17/2008
MarketMinder's View: Some of the best ways to stimulate economic growth are to cut taxes and government bureaucracy.
Market Misperceptions
By , The Wall Street Journal, 07/17/2008
MarketMinder's View: While it’s nice to see sovereign wealth funds get a break, fears over central banks and state-run companies manipulating the global economy for political gain are likely overwrought.
Market Misperceptions
By , Bloomberg, 07/17/2008
MarketMinder's View: Folks are upset the government and regulators didn’t stop the bleeding, but as one fund manager says, “investors have to learn to bear losses as they do gains.” Riots are never the answer.
Market Misperceptions
By , The New York Times, 07/17/2008
MarketMinder's View: Didn’t oil prices rise throughout the first half of the year amidst supposed economic weakness?
Sensible Stories
By , Café Hayek, 07/17/2008
MarketMinder's View: “One big difference unquestionably—and happily—distinguishes today from the dismal days of disco: no wage and price controls.” We agree!
Sensible Stories
By , BBC News, 07/17/2008
MarketMinder's View: Freer trade is good, and derailing the Doha round because of protectionist interests in tropical fruit would be just plain bananas. See our 7/2/2008 cover story, “Trade Liberalization Grudge Match, 2008” for more.
Sensible Stories
By , Bloomberg, 07/17/2008
MarketMinder's View: Phew. Barriers to trade aren’t good for anyone.
Sensible Stories
By , The Times, 07/17/2008
MarketMinder's View: “Looking at the perverse responses to economic news recently in the world's most important financial markets, it seems quite plausible that investors today are as blind to economic realities as they were in the dot-com bubble, the Enron panic and the sub-prime mortgage boom.” We agree: Sentiment is detached from reality.
Market Misperceptions
By , The Independent, 07/17/2008
MarketMinder's View: The SEC’s gossip witch hunt produced its first suspect. However, in our view this exercise should end up being all talk and no action.
Market Misperceptions
By , The Telegraph, 07/17/2008
MarketMinder's View: Sure, things aren’t great in Spain, but the global economy is what matters—and it’s still growing nicely.
Market Misperceptions
By , Times Online, 07/17/2008
MarketMinder's View: Double digit growth is still very healthy.
Market Misperceptions
By , The Guardian, 07/17/2008
MarketMinder's View: Governments simply can’t be held liable for “all cash investors lose” when life insurance companies collapse.
Market Misperceptions
By , Telegraph, 07/16/2008
MarketMinder's View: The US is unlikely to be in danger of losing its foreign funding. US government-backed investments remain in great demand globally—despite what some may have you think.
Market Misperceptions
By , CNNMoney.com, 07/16/2008
MarketMinder's View: Excluding notoriously volatile food and energy prices, core inflation rose just 0.3% in June.
Market Misperceptions
By , Investor’s Business Daily, 07/16/2008
MarketMinder's View: We prefer not to read too much into the Fed’s moves—current or future. History shows incremental rate moves don’t have the impact many investors anticipate—there’s no material pattern showing tightening or loosening is inherently better for stocks.
Market Misperceptions
By , Realclearpolitics.com, 07/16/2008
MarketMinder's View: Financial crises, interruptions of crucial supplies, trade wars, violent business cycles—these are not events unique to our time. The world has lived through a number of these and continued to grow.
Market Misperceptions
By , The Wall Street Journal, 07/16/2008
MarketMinder's View: The SEC is treading in tricky territory. Short selling is a legitimate practice, and adding an additional layer of bureaucracy in markets can cause negative unintended consequences.
Sensible Stories
By , Financial Times, 07/16/2008
MarketMinder's View: A rapidly expanding middle class is evidence of the benefits of globalization and an expanding global economy.
Market Misperceptions
By , Times Online, 07/16/2008
MarketMinder's View: This article could have been written at almost anytime in the last 9 months, there is no new worry here.
Sensible Stories
By , The Wall Street Journal, 07/16/2008
MarketMinder's View: A brief overview of the current banking environment. But remember: Failure needn’t be feared—it can weed out the weak and make room for new innovations. See our recent cover story, “Don’t Fear Failure” (07/15/2008) for more.
Sensible Stories
By , The Wall Street Journal, 07/16/2008
MarketMinder's View: It doesn’t matter if the money comes from China, India, Sovereign Wealth Funds, or Mars – global investment is good.
Sensible Stories
By , Fortune, 07/16/2008
MarketMinder's View: A reminder: Growing demand coupled with constrained supply are behind today’s higher oil prices, not speculators.
Sensible Stories
By , The American Spectator, 07/16/2008
MarketMinder's View: How does the total cost of government impact you? It’s more than just taxes.
Sensible Stories
By , Barron’s, 07/16/2008
MarketMinder's View: In the short term, swings in sentiment can cause otherwise rational “homo economicuses” to act irrationally.
Market Misperceptions
By , The Independent, 07/16/2008
MarketMinder's View: We agree that confidence is in short supply, but postulating that conditions now are worse than at anytime in the last 40 years is, in our minds, stretching it.
Sensible Stories
By , New York Post, 07/16/2008
MarketMinder's View: “It seems that whenever things go bad and government is largely to blame, politicians look for villains other than themselves.” Exactly.
Market Misperceptions
By , Bloomberg, 07/16/2008
MarketMinder's View: “‘Unskilled workers coming from countries outside the European Union who are not needed by our economy will not be welcome,’ [Gordon] Brown told a panel of lawmakers.” Why not let businesses decide who is not needed? Protectionist policies like this stifle and hurt economies while benefiting a small group of interests.
Sensible Stories
By , International Herald Tribune, 07/15/2008
MarketMinder's View: An excellent perspective on why behavioral finance is a useful tool, but not a panacea.
Market Misperceptions
By , RealClearMarkets, 07/15/2008
MarketMinder's View: While we agree CPI is a generally faulty indicator, comparing a commodity increasingly used for industrial purposes to the dollar is just as faulty. For a market valuation of money, check currently benign 10-year government bond yields.
Sensible Stories
By , Board of Governors of the Federal Reserve, 07/15/2008
MarketMinder's View: In place of the endless semantic hashing and re-hashing, go here and read Mr. Bernanke’s comments for yourself.
Market Misperceptions
By , The Daily Standard, 07/15/2008
MarketMinder's View: This article tidily sums up just about every market misperception we’ve seen this year.
Market Misperceptions
By , Times Online, 07/15/2008
MarketMinder's View: We should celebrate the opportunities that microfinancing has delivered rather than focus on problems that do not yet exist.
Market Misperceptions
By , The New York Times, 07/15/2008
MarketMinder's View: Though bank failures can be frightening, don’t forget the failure of bad companies is an essential step toward greater development and stability. See today’s cover story, “Don’t Fear Failure,” for more.
Sensible Stories
By , Forbes, 07/15/2008
MarketMinder's View: This is true of any resource, energy included. Attempts to subsidize consumption will warp supply and demand and likely result in outcomes far worse than market-guided solutions.
Sensible Stories
By , The Wall Street Journal, 07/15/2008
MarketMinder's View: While it would likely take a very long time to achieve, a marketplace involving less government intervention and greater competition should be encouraged.
Market Misperceptions
By , Financial Times, 07/15/2008
MarketMinder's View: If this were the case, we’d be happily out of a job.
Market Misperceptions
By , The Wall Street Journal, 07/15/2008
MarketMinder's View: Many may spin this as negative, but it’s a good example of self-regulation in markets—despite pain, businesses will take the necessary steps to stay in business. And they know what those steps are better than Washington.
Market Misperceptions
By , Financial Times, 07/15/2008
MarketMinder's View: Tracking each monthly economic data point yields nothing but myopia. Despite some ups and downs, the economy isn’t nearly as bad off as most folks believe.
Sensible Stories
By , Financial Times, 07/15/2008
MarketMinder's View: While it isn’t necessarily a bad thing the Feds are insuring stability for the biggest Financials, note that Fannie and Freddie probably wouldn’t face current problems if they weren’t quasi-governmental institutions to begin with.
Market Misperceptions
By , The Wall Street Journal, 07/14/2008
MarketMinder's View: Don’t fall for these types of stories. Comparisons to Japan’s economy of the ‘90s aren’t accurate.
Market Misperceptions
By , The Times, 07/14/2008
MarketMinder's View: But wait: For this to happen, wouldn’t we need an actual recession first? This is highly indicative of today’s overly-dour doomsday talk.
Market Misperceptions
By , Associated Press, 07/14/2008
MarketMinder's View: The term “credit crunch” assumes credit isn’t available to anyone. But credit is still widely available to healthy borrowers.
Sensible Stories
By , The Wall Street Journal, 07/14/2008
MarketMinder's View: We agree there’s no reason to panic regarding Freddie and Fannie.
Sensible Stories
By , Times Online, 07/14/2008
MarketMinder's View: Sentiment is frequently disconnected from reality.
Sensible Stories
By , The Wall Street Journal, 07/14/2008
MarketMinder's View: You can always rely on government to come up with ways to “do something” about perceived issues –most times they do more harm than good.
Sensible Stories
By , Slate, 07/14/2008
MarketMinder's View: Amen! Blaming speculators for market turmoil is a classic form of regret shunning--don’t fall for it.
Sensible Stories
By , Associated Press, 07/14/2008
MarketMinder's View: Fine with us. A few more collapses in the financial industry may sting, but part of a well-functioning market includes letting the businesses that don’t work fail.
Market Misperceptions
By , CNNMoney, 07/14/2008
MarketMinder's View: Let the finger pointing begin! IndyMac’s failure is a noteworthy but small event in the scheme of things.
Sensible Stories
By , The New York Times, 07/14/2008
MarketMinder's View: Big M&A deals are still taking place and keeping new share supply restrained. Such action is ultimately good for stock prices.
Sensible Stories
By , The Telegraph, 07/14/2008
MarketMinder's View: We couldn’t agree more!
Market Misperceptions
By , Times Online, 07/14/2008
MarketMinder's View: With all due respect to the Irish, their market is tiny in comparison to the global market—if you’re invested globally you shouldn’t worry about this.
Market Misperceptions
By , RealClearMarkets.com, 07/11/2008
MarketMinder's View: One of the more breathtakingly wrong-headed anti-capitalist rants we’ve heard in a long time.
Sensible Stories
By , Associated Press, 07/11/2008
MarketMinder's View: Artificial pricing mechanisms are never a good idea.
Sensible Stories
By , The Wall Street Journal, 07/11/2008
MarketMinder's View: If politicians are so keen to find someone to blame for high oil prices they should look elsewhere. Dare we suggest the mirror?
Sensible Stories
By , Bloomberg, 07/11/2008
MarketMinder's View: There have been more M&A deals so far this year than last year at this time—and big ones are picking up again. This wouldn’t be happening if we were in the broad credit crunch many presume. For more, see our 06/25/08 cover story, “What’s the Deal?”
Market Misperceptions
By , Bloomberg, 07/11/2008
MarketMinder's View: There’s a lot going on today—but there always is. Regardless, fluctuations in oil prices aren’t predictive of stock prices.
Sensible Stories
By , MarketWatch, 07/11/2008
MarketMinder's View: Many fretting a weak dollar miss that it continues to benefit exports, a much bigger piece of the economy than housing.
Market Misperceptions
By , The Telegraph, 07/11/2008
MarketMinder's View: Just when we were getting bored of reading about inflation, a new threat comes along – deflation.
Sensible Stories
By , Briefing.com, 07/11/2008
MarketMinder's View: Despite the gloom, the economy is much stronger than appreciated—and with the exception of the financial sector, so are corporate earnings.
Market Misperceptions
By , The Wall Street Journal, 07/11/2008
MarketMinder's View: Consumer spending, by far the largest driver of the US economy, continues to grow. And whether it’s at Wal-Mart or Williams-Sonoma, a dollar spent is a dollar spent.
Sensible Stories
By , Bloomberg, 07/11/2008
MarketMinder's View: Fears of a major government “bailout” on the way are overstated. Further, should Fannie or Freddie require a capital infusion, the amount of capital needed is nowhere near as much as folks fear.
Market Misperceptions
By , CNBC, 07/11/2008
MarketMinder's View: Consumer sentiment, whether up or down, is at best a coincident indicator and not predictive for stocks. Ignore.
Market Misperceptions
By , Bloomberg, 07/10/2008
MarketMinder's View: A 53% year-over-year rise sounds huge, but the overall foreclosure rate is only one in 501—or 0.2%.
Market Misperceptions
By , Bloomberg.com, 07/10/2008
MarketMinder's View: Only a cave for protection? Surely they should have built a Y2K bunker!
Market Misperceptions
By , Briefing.com, 07/10/2008
MarketMinder's View: Stronger-than-expected GDP is great! But we think the credit given to the stimulus checks is overblown.
Sensible Stories
By , The Times, 07/10/2008
MarketMinder's View: Once again, protectionism rears its ugly head.
Sensible Stories
By , The Wall Street Journal, 07/10/2008
MarketMinder's View: Since the economy has become more efficient, jobless claims have not scaled up over time with the workforce. Hence the “recessionary” 400,000 level isn’t as dire today as in the past.
Sensible Stories
By , The Wall Street Journal, 07/10/2008
MarketMinder's View: While we wouldn’t necessarily agree with the conclusions, this is an excellent rundown of how credit markets work.
Sensible Stories
By , The Wall Street Journal, 07/10/2008
MarketMinder's View: Supply and demand dictate the price of oil more than anything else.
Market Misperceptions
By , SFGate.com, 07/10/2008
MarketMinder's View: Unless you’re referring to the UC Berkeley campus, “bear territory” is a faulty notion. A bear market requires magnitude and duration. And bear markets generally start amid euphoria. We’ve seen no euphoria—only dour and deteriorating sentiment.
Market Misperceptions
By , Fortune, 07/10/2008
MarketMinder's View: More talk of doom for Fannie and Freddie is much ado about nothing—and fundamentally unwarranted. See our cover story, “Of Whipsaws and Rumors” (7/9/08), for more.
Market Misperceptions
By , Asia Times, 07/10/2008
MarketMinder's View: Stagflation may have more sightings than Bigfoot and Elvis combined, but it’s still not a problem today. The global economy is still growing, and global inflation remains benign.
Sensible Stories
By , Clusterstock, 07/10/2008
MarketMinder's View: “As US gas prices blow through $5, it’s also nice to observe that Europe hasn’t reverted to a Road Warrior-like wasteland.” If you like cheap gas and don’t mind abandoning the principles of freedom and capitalism, perhaps you could give Caracas a shot.
Sensible Stories
By , Forbes.com, 07/10/2008
MarketMinder's View: Now there’s something Congress should spend its time on.
Market Misperceptions
By , The Independent, 07/10/2008
MarketMinder's View: Consumer sentiment does not always reflect economic fundamentals.
Market Misperceptions
By , The Wall Street Journal, 07/10/2008
MarketMinder's View: Here’s a better idea: Throw this article away. It’s another example of the too-dour sentiment plaguing markets.
Sensible Stories
By , The Washington Times, 07/10/2008
MarketMinder's View: “One of very valuable functions performed by the speculator is the allocation of resources over time. It makes sense to take the future into account when making consumption decisions today.” Someone should remind Congress.
Sensible Stories
By , The Wall Street Journal, 07/10/2008
MarketMinder's View: More foreign investment is excellent for the global economy.
Market Misperceptions
By , Financial Times, 07/09/2008
MarketMinder's View: We’re on board with scrapping subsidies for biofuels, but why do away with one government-engineered project with another (carbon-pricing)?
Sensible Stories
By , RealClearMarkets, 07/09/2008
MarketMinder's View: “If the intent is to ‘help,’ true help would involve letting the antiquated symbols of an overrated economic past fail or be sold.” Amen. Our economy is much better served when politicians let free markets decide who survives and who dies.
Sensible Stories
By , Financial Times, 07/09/2008
MarketMinder's View: “Headline indicators of activity can be misleading. Volatile data such as industrial output are often revised. Sampling errors make it risky to read much into one month’s figures. The temptation to seize on such statistics should be resisted.” It’s true for the UK and everywhere else in the world.
Market Misperceptions
By , Fortune, 07/09/2008
MarketMinder's View: Don’t fret Fannie and Freddie. Investor concerns regarding their possible failures are fundamentally unwarranted. See today’s cover story “Of Whipsaws and Rumors” (7/9/2008) for more.
Market Misperceptions
By , Bloomberg, 07/09/2008
MarketMinder's View: A recession isn’t determined on employment alone. In fact, growth is most important, and we’ve continued to see global growth.
Sensible Stories
By , The Motley Fool, 07/09/2008
MarketMinder's View: We celebrate Sir John Templeton by remembering two timeless pieces of advice: 1) “The best time to invest is when you have money. This is because history suggests it is not timing the markets that matters, it is time." 2) "To buy when others are despondently selling and to sell when others are avidly buying requires the greatest fortitude and pays the greatest ultimate rewards."
Sensible Stories
By , Financial Times, 07/09/2008
MarketMinder's View: Is this backlash against inefficient biofuels gaining strength in political circles? That would be good news, leave solutions to markets!
Market Misperceptions
By , The New York Sun, 07/09/2008
MarketMinder's View: There are always concerns when rules change. But when financial environments evolve, innovation is at times necessary. We believe the Fed’s approach thus far has been appropriate and is exercising caution in its proposals.
Sensible Stories
By , Bloomberg, 07/09/2008
MarketMinder's View: A humorous look at our need to point fingers when markets are volatile.
Sensible Stories
By , US News, 07/09/2008
MarketMinder's View: We’re not sure why folks think government intervention is the solution to a government-caused problem. But it also amazes us that Homer Simpson continues to be one of the wisest market sages around.
Market Misperceptions
By , Telegraph, 07/09/2008
MarketMinder's View: A budget deficit is not an economic negative. Historically, deficits in developed nations have led to more superior stock returns vs. surpluses.
Market Misperceptions
By , MarketWatch, 07/08/2008
MarketMinder's View: By this logic the Fed would be raising rates to bolster the dollar. Instead they’ve pursued an aggressive rate-cutting policy over the last year. Ignore.
Sensible Stories
By , The Wall Street Journal, 07/08/2008
MarketMinder's View: This is right on. Price speculation via futures contracts helps smooth naturally volatile commodities markets—end of story.
Market Misperceptions
By , Times Online, 07/08/2008
MarketMinder's View: For an economy that is still expanding, it seems odd that a survey can confirm we’re on the brink of a recession!
Market Misperceptions
By , Reuters, 07/08/2008
MarketMinder's View: Though the housing market continues its slide, remember it alone cannot take down the whole economy.
Sensible Stories
By , The Wall Street Journal, 07/08/2008
MarketMinder's View: Ultimately, consumers decide the price they are prepared to pay for any commodity. Above that price, alternatives become more viable.
Sensible Stories
By , The Wall Street Journal, 07/08/2008
MarketMinder's View: There’s a thin line between strengthening markets and impeding them. So far, we think the Fed has acted innovatively and appropriately—we hope the good judgment continues.
Market Misperceptions
By , The Financial Times, 07/08/2008
MarketMinder's View: It’s no surprise mortgage industry firms remain distressed. But be wary of extrapolating the ills of one industry to the economy as a whole.
Sensible Stories
By , The Times, 07/08/2008
MarketMinder's View: The Doha round failing doesn’t necessarily portend doom. But free trade, as ever, remains essential to continued development the world over.
Sensible Stories
By , The New York Times, 07/08/2008
MarketMinder's View: Not only is it not the most efficient way to use agricultural land but the unintended consequences may just be worsening the supposed problem biofuels are trying to solve.
Sensible Stories
By , Reuters, 07/08/2008
MarketMinder's View: We’re always a tad skeptical anytime groups with economic interests gather to create a “code of ethics.” But luckily, the bottom line here is the free allocation of capital where it’s most needed will be maintained. That’s an “ethic” we can agree with.
Market Misperceptions
By , Times Online, 07/08/2008
MarketMinder's View: Might folks not just be buying more DVD’s?
Market Misperceptions
By , The New York Times, 07/08/2008
MarketMinder's View: The power of rumor in the absence of transparency may be harmful—but the idea that something must be done about it is misguided. Let the buyer beware and always check his sources!
Sensible Stories
By , The Wall Street Journal, 07/08/2008
MarketMinder's View: Higher food prices are, more than anything else, a sign of growing affluence in the developing world. It may bring about adjustment discomfort, but in the long run, this should be celebrated.
Market Misperceptions
By , The Wall Street Journal, 07/08/2008
MarketMinder's View: What exactly does the G-8’s “official endorsement” of “meaningful cuts” mean anyway? The G-8’s member countries are notorious for big talk and little action. See today’s cover story, “A Midsummer Night’s Dream,” for more.
Market Misperceptions
By , The Telegraph, 07/08/2008
MarketMinder's View: Should we not take notice of the business leaders who say their companies have yet to be hit, or should we listen to the UK’s “iconic retailer”? Incidentally, this iconic retailer has been in trouble before when other retailers were doing just fine.
Market Misperceptions
By , The Wall Street Journal, 07/07/2008
MarketMinder's View: While it’s nice to see an initial stock offering do well, we wouldn’t want to see a flood of IPOs, as it increases stock supply. Large quantities of new supply usually means lower prices.
Sensible Stories
By , Times Online, 07/07/2008
MarketMinder's View: The benefits we have felt from globalisation and increased free trade should not be forgotten now.
Sensible Stories
By , The American, 07/07/2008
MarketMinder's View: Archaic, overly dour views on the US economy abound these days. This article provides some much-needed perspective.
Market Misperceptions
By , CNNMoney, 07/07/2008
MarketMinder's View: Americans as a whole have been notoriously poor at identifying recessions—this time is no different. Economic growth has slowed from its highs, but the raw data shows clearly there’s no recession to be had.
Sensible Stories
By , Bloomberg, 07/07/2008
MarketMinder's View: Global M&A activity keeps on keepin’ on—and this is a sterling example. Despite dour sentiment, foreign firms see plenty of opportunity in the US, and some are willing to pay a premium. Expect this trend to continue.
Market Misperceptions
By , BusinessWeek, 07/07/2008
MarketMinder's View: The time to buy stocks is when the majority is fearful—it’s safe to say the majority is fearful.
Market Misperceptions
By , The Wall Street Journal, 07/07/2008
MarketMinder's View: Be ever wary of perspectives choosing arbitrary historical periods in an attempt to predict future doom. Past performance does not indicate future performance. See our 3/27/2008 cover story “Not Quite to the Nines,” for more.
Sensible Stories
By , Investor’s Business Daily, 07/07/2008
MarketMinder's View: Freer trade with Colombia should be a no-brainer.
Sensible Stories
By , Bloomberg, 07/07/2008
MarketMinder's View: LBOs, handled prudently, offer opportunity, better efficiency and prosperity. While LBO lending slowed in recent months, it won’t die—which is a good thing.
Market Misperceptions
By , Bloomberg, 07/07/2008
MarketMinder's View: Strange—the manager of a bearish hedge fund predicting a bear market. Folks forget how strong stocks finished in 1998—a year similar in many ways to 2008.
Market Misperceptions
By , The Wall Street Journal, 07/07/2008
MarketMinder's View: Regret shunning is usually accompanied by a “regulate first, ask questions later” mentality. See our 6/23/2008 cover story “Time for the Bloodletting!” for more.
Sensible Stories
By , Clusterstock, 07/07/2008
MarketMinder's View: We wouldn’t agree with every single reason listed, but certainly concur “It's an election year, so it's a good bet we won't hear about anything other than speculators, OPEC, and greedy oil companies.” Sad, but true.
Sensible Stories
By , The Guardian, 07/07/2008
MarketMinder's View: Wonky government biofuel policies undoubtedly play a role in higher food prices. Someone needs to let politicians in on the “secret.”
Sensible Stories
By , Times Online, 07/07/2008
MarketMinder's View: We’re a long way from the economic mire of the 1970’s.
Market Misperceptions
By , The Telegraph, 07/07/2008
MarketMinder's View: The cost of freighting goods has gone up because of demand for the goods. As China becomes more prosperous it will also become more efficient in its use of energy.
Market Misperceptions
By , The Wall Street Journal, 07/07/2008
MarketMinder's View: Folks continue to assume a direct relationship between stock and oil prices. Yet oil and stock prices have almost no historical correlation.
Sensible Stories
By , Times Online, 07/04/2008
MarketMinder's View: Relax, this figure is for April 1975. It sure puts current inflationary fears in perspective though, doesn’t it?
Sensible Stories
By , The Telegraph, 07/04/2008
MarketMinder's View: In the words of Warren Buffett – “Our favourite holding period is forever”
Market Misperceptions
By , Financial Times, 07/04/2008
MarketMinder's View: Let us get this straight, the way to help the poor is to raise taxes on everyone and allow politicians to dole out the money? We’d much prefer that money in the pockets of individuals as opposed to a government body.
Market Misperceptions
By , The Wall Street Journal, 07/03/2008
MarketMinder's View: No, the US economy doesn’t have cancer. We’ve yet to see a single quarter of negative GDP growth—and we don’t need more “stimulus” for growth to continue.
Sensible Stories
By , Financial Times, 07/03/2008
MarketMinder's View: “For all the dynamism in China today, it is still a country where the dead hand of the party state is always in the background…” Very true.
Market Misperceptions
By , The New York Times, 07/03/2008
MarketMinder's View: Oil up, markets down, and vice versa. This is our brains playing tricks on us. Statistically, there is no correlation between daily movements of oil and the stock market.
Market Misperceptions
By , CNNMoney, 07/03/2008
MarketMinder's View: Sure, job losses aren’t fun, but overall unemployment remains historically benign.
Market Misperceptions
By , The Financial Times, 07/03/2008
MarketMinder's View: Ordinarily it would be concerning that Parliament is joining the US Congress in talks of increased regulation. Speculators just don’t have the market impact many think. (See our 6/17/08 cover story, “Speculation Accusation,” for more.) But the good news is, this is likely to be mostly rhetoric, little action.
Market Misperceptions
By , Businessweek, 07/03/2008
MarketMinder's View: Actually, the fact investors are “tossing around adjectives like ‘tired,’ ‘nervous,’ and ‘depressed’ to describe the mood” tells us sentiment is far more dour than fundamentals warrant—a bullish sign.
Market Misperceptions
By , The International Herald Tribune, 07/03/2008
MarketMinder's View: Increased regulation, even in the name of financial stability, can have unintended negative consequences. See our recent cover story, “The Stabilitator – Rise of the Knee-Jerks” (6/20/08), for more.
Sensible Stories
By , The Wall Street Journal, 07/03/2008
MarketMinder's View: This is what we like to call dipping your toe the ugly water of price controls—never nice to see.
Market Misperceptions
By , via CNBC, 07/03/2008
MarketMinder's View: Ignore these monthly volatility surveys—they’re meaningless for stocks and tell us little about the total economy.
Market Misperceptions
By , CNNMoney, 07/03/2008
MarketMinder's View: No it’s not. Diversified global indexes are down less than the Dow, which is a broken indicator anyway. Besides, the magnitude of the drop isn’t the only factor—length plays a big role, and this drop is still relatively short.
Sensible Stories
By , Forbes, 07/03/2008
MarketMinder's View: If our economy were in trouble, would charitable giving really be on the rise?
Sensible Stories
By , The Independent, 07/03/2008
MarketMinder's View: Overall, today’s global economy is a far cry from the 1970s. Oil prices aside, there are few similarities between then and now.
Sensible Stories
By , Reuters, 07/03/2008
MarketMinder's View: And the global M&A boom continues! Ongoing constraint of equity supply should positively support share prices this year.
Market Misperceptions
By , Asia Times, 07/03/2008
MarketMinder's View: This sounds bad, but recent political threats to block foreign investment by SWFs have proved largely feckless. As long as the process remains transparent, the US should remain a destination for foreign funds—a good thing!
Sensible Stories
By , Bloomberg, 07/02/2008
MarketMinder's View: “Availability of capital is more differentiating in the current market than it was 12 months ago.” Yes, precisely! “Differentiating” is vastly differently from “vanishing,” as many predicted. Fact is, robust M&A and general lending activity continue among the big boys.
Market Misperceptions
By , Financial Times, 07/02/2008
MarketMinder's View: Wow, we’re not sure what kind of magic ball the OECD has to see two years into the future, but we want one too! Ignore such predictions—anything can happen in two years.
Market Misperceptions
By , The Atlantic, 07/02/2008
MarketMinder's View: There are plenty of resources available in the world to support growing populations for decades to come, if not centuries. The real worry is how governments decide to allocate or utilize them.
Sensible Stories
By , The Wall Street Journal, 07/02/2008
MarketMinder's View: Interventionist government policies have only exacerbated price pressures for commodities and food in developing countries. Keep a close eye on upcoming trade negotiations to see if they do the smart thing (promote free trade), or the dumb thing (create more restrictions, tariffs, and price controls).
Sensible Stories
By , Weekly Standard, 07/02/2008
MarketMinder's View: When in doubt, don’t blame speculators!
Sensible Stories
By , International Herald Tribune, 07/02/2008
MarketMinder's View: Can we just first say, “neat-o?” New technology is transforming business services—and creating new opportunities and helping consumers.
Market Misperceptions
By , International Herald Tribune, 07/02/2008
MarketMinder's View: Sentiment remains gloomy, but economic data continues to surprise to the upside. This article cites recession as a foregone conclusion, but the fact is, we’ve yet to see any actual negative growth! Such overly dour appraisals are bullish!
Sensible Stories
By , The New York Times, 07/02/2008
MarketMinder's View: These are good problems to have. Brazil just happens to be one of the many emerging economies of the world experiencing robust economic growth.
Market Misperceptions
By , The Wall Street Journal, 07/02/2008
MarketMinder's View: “With the second half of the year beginning today, many stock investors are looking ahead with dread.” Such dour sentiment makes it a great time to buy stocks.
Market Misperceptions
By , The Independent, 07/02/2008
MarketMinder's View: Are any of these fears new or are they the same scenarios we’ve been fretting over for months?
Sensible Stories
By , Financial Times, 07/02/2008
MarketMinder's View: The gloves are off, and punches, or rather words are flying. This fight is worth monitoring—attacks on international trade in the EU will likely have global consequences. For more, see today’s cover story, “Trade Liberalization Grudge Match, 2008” (07/02/08).
Sensible Stories
By , Forbes, 07/02/2008
MarketMinder's View: Wait, we’re not worse off now? Interesting what a little poking into “conventional” data can reveal.
Market Misperceptions
By , Bloomberg, 07/02/2008
MarketMinder's View: This is a great step in lowering the barriers to global commerce. While risks are involved (when are risks not involved in investing?), we’re hoping anyone who invests $25 million does their homework before jumping into the fray.
Market Misperceptions
By , MarketWatch, 07/02/2008
MarketMinder's View: We view this as a lot of political hot air—the odds any sweeping new regulations become reality are very remote. But we are encouraged to hear Paulson at least say “failure has to be an option.” He’s right: bad businesses must be allowed to fail. It’s as important to capitalism as anything.
Market Misperceptions
By , CNNMoney.com, 07/01/2008
MarketMinder's View: We don’t put much stock in monthly indexes. But this is a good example of a relatively stronger reality beating continued too-dour expectations.
Sensible Stories
By , The American Spectator, 07/01/2008
MarketMinder's View: Hayek said, “…society is greater than the individual only in so far as it is free. In so far as it is controlled or directed, it is limited to the powers of the individual minds which control or direct it.” India demonstrates giving up government control is an essential step on the path to prosperity.
Sensible Stories
By , The Financial Times, 07/01/2008
MarketMinder's View: When the rest of the world accounts for more economic activity than the US isn’t it obvious that the rest of the world will exert more influence on the US than vice versa?
Sensible Stories
By , The New York Times, 07/01/2008
MarketMinder's View: Politicians are wont to flip-flop for the same reasons we all are; we want to look good without having to incur the consequences of acting good. So, don’t fear the worst or expect the best from politicians—you likely won’t get either!
Market Misperceptions
By , Bloomberg, 07/01/2008
MarketMinder's View: Another example of sentiment being far-detached from reality. There is just no evidence this is anywhere near the “worst slump since World War II.”
Market Misperceptions
By , Financial Times, 07/01/2008
MarketMinder's View: We’re seeing fewer buyout deals, but M&A volume YTD has been massive—current credit conditions favor big strategic corporate “mega-deals” over private equity deals.
Market Misperceptions
By , Times Online, 07/01/2008
MarketMinder's View: It’s easy to pick points in time to showcase a story.
Sensible Stories
By , The Wall Street Journal, 07/01/2008
MarketMinder's View: Cutting taxes would not only increase capital flows into America but also increase corporate productivity.
Sensible Stories
By , The American, 07/01/2008
MarketMinder's View: “Effective aid not only has to make the world safe for small business and intermittent labor; it must also create the sort of capital markets that help larger businesses flourish.” We agree!
Market Misperceptions
By , The Wall Street Journal, 07/01/2008
MarketMinder's View: If you agree domestic CPI is a broken indicator, just imagine trying to paint a global picture. We think it’s better to use market-based tools like 10-year government bond rates—these currently remain historically benign throughout the developed world.
Market Misperceptions
By , MSNBC, 07/01/2008
MarketMinder's View: The price of oil will continue to respond to current supply and demand pressures as well as expectations for future supply and demand. But globally diversified long-term investors needn’t worry—oil prices don’t correlate meaningfully with stock prices, and at times can signal economic strength.
Sensible Stories
By , Washington Post, 07/01/2008
MarketMinder's View: This article correctly argues that whatever the role of speculators (and it’s likely minor), the basic laws of constrained supply and increased demand from rapidly growing developing nations accounts for the recent rise in commodities prices.
Market Misperceptions
By , Bloomberg, 07/01/2008
MarketMinder's View: There’s no way to prove a drop in IPOs is linked to the economy slowing (and no reason to try). But this is sold as bad news. In our view, fewer net shares coming online keeps a lid on supply and supports prices.