Home → Fisher Investments MarketMinder Headlines → 08-2007 Archives

Dueling Headlines
By , Businessweek, 08/31/2007
MarketMinder's View: The irony is that employment is probably an effect—not a cause—of economic conditions. Yet the media insists on telling us otherwise.
Market Misperceptions
By , TheStreet.com, 08/31/2007
MarketMinder's View: Investors will always experience “turmoil” and “anxiety” because all investments involve risk. Therefore, there will always be worries, particularly during bull markets.
Sensible Stories
By , CNNMoney.com, 08/31/2007
MarketMinder's View: “Americans increased expenditures by 0.4 percent in July, double the increase in June, thanks to a four-month high in income growth.” What happened to the expected collapse in consumer spending due to housing woes?
Sensible Stories
By , The Wall street Journal, 08/31/2007
MarketMinder's View: Call it what you want – but lower and simpler tax rates spur business activity and robust economic growth.
Sensible Stories
By , The Washington Post, 08/31/2007
MarketMinder's View: The Fed has many tools at its disposal to help maintain market stability. It won’t necessarily use a rate cut.
Sensible Stories
By , The Australian, 08/31/2007
MarketMinder's View: Two voices of reason stock investors should take note of.
Sensible Stories
By , International Business Times, 08/31/2007
MarketMinder's View: Funny how folks barely pay attention to inflation now that the supposed “credit crunch” is here. Just a couple months ago inflation was the number one worry— my, how quickly sentiment changes!
Sensible Stories
By , MSNBC, 08/31/2007
MarketMinder's View: Average house prices INCREASED 3.2% on a year-over-year basis. Remember housing markets are highly regional—funny how the media usually only reports on the bad areas these days. In sum, things are fine.
Sensible Stories
By , The Wall Street Journal, 08/31/2007
MarketMinder's View: The benefits of cutting taxes (a.k.a. supply side economics) are being pursued widely abroad, while the US seems to be heading the opposite direction.
Market Misperceptions
By , BBC News, 08/31/2007
MarketMinder's View: The nerve! Let’s hope this “addiction” doesn’t spread and fool consumers into paying less for other goods. Really – you can’t make this stuff up.
Sensible Stories
By , The Wall Street Journal, 08/31/2007
MarketMinder's View: A large portion of defaulting loans were real estate speculation rather than primary residences.
Market Misperceptions
By , MarketWatch, 08/31/2007
MarketMinder's View: While government intervention is usually a solution in search of a problem, this is no big deal. The fine print of this plan—should it be implemented—involves a very small segment of the housing market and isn’t likely to meaningfully affect the situation one way or the other.
Sensible Stories
By , Bloomberg, 08/31/2007
MarketMinder's View: Believe it or not, market appetite for debt still exists! We’ll say it again: Today’s credit environment isn’t the stuff of implosions, just minor hiccups.
Sensible Stories
By , NPR, 08/31/2007
MarketMinder's View: While the media speculates on the Fed’s next move, cut through the hype and read the actual text of Bernanke’s speech to form your own opinion.
Market Misperceptions
By , USA Today, 08/31/2007
MarketMinder's View: Folks who can't afford to buy homes are renting? What a novel idea.
Sensible Stories
By , 08/31/2007
MarketMinder's View: Today's energy prices are set predominantly by good old supply and demand: Big demand for energy and relatively constrained supply equals higher prices.
Sensible Stories
By , The Wall Street Journal, 08/31/2007
MarketMinder's View: A cogent summary of debt rating agencies’ role in the marketplace.
Sensible Stories
By , The Wall Street Journal, 08/31/2007
MarketMinder's View: With all the attention these ratings agencies have received recently, it’s good to hear from one. Well worth a read.
Market Misperceptions
By , Times Online, 08/31/2007
MarketMinder's View: Take a deep breath and look around you – this is nothing like the Great Depression.
Sensible Stories
By , National Review, 08/31/2007
MarketMinder's View: Given the inefficiency of government spending, why do people continually propose more of it rather than less?
Sensible Stories
By , Financial Times, 08/30/2007
MarketMinder's View: Fostering an environment where entrepreneurs can come together to share ideas and gain access to expansionary capital is a wonderful thing.
Market Misperceptions
By , Financial Times, 08/30/2007
MarketMinder's View: This might be scary until you realize that $43bn is very small in relation to the world equity markets.
Sensible Stories
By , The Wall Street Journal, 08/30/2007
MarketMinder's View: 4.1%! The US economy is booming.
Sensible Stories
By , MSNBC.com, 08/30/2007
MarketMinder's View: Bernanke suggests politicians should “encourage a wider range of mortgages geared for low income and other borrowers” rather than regulate such people out of potential homeownership. We think this is a grand idea! We hope politicians will opt for free markets over regulation.
Sensible Stories
By , CNNMoney.com, 08/30/2007
MarketMinder's View: Those who engaged in the riskiest behavior are bearing the brunt of the subsequent fallout. Isn’t that how it usually works?
Market Misperceptions
By , 08/30/2007
MarketMinder's View: Why are CEOs and hedge fund managers their only targets? Don’t professional athletes make a ton of money too? What about Tom Cruise? How about Paris Hilton? Doesn’t Paris Hilton “concentrate wealth” and “corrupt democracy” too?
Sensible Stories
By , CNNMoney.com, 08/30/2007
MarketMinder's View: Since inflation is contained and GDP grew 4.1% in Q2, maybe we don’t need much “rescuing.”
Sensible Stories
By , RealClearPolitics, 08/30/2007
MarketMinder's View: A warning to politicians favoring increasing government regulation as means to make American wealth distribution “more fair”—France now faces an uphill battle to unwind centuries of economy-squelching policies and culture.
Sensible Stories
By , The Wall Street Journal, 08/30/2007
MarketMinder's View: A look at why “deregulation” in electricity hasn’t worked but has been a huge success for banking, trucking, and airlines. The answer is easy: “Deregulation of some parts of the system was offset by more ambitious regulations elsewhere.” Government meddling leads to unintended, and usually negative, consequences.
Market Misperceptions
By , Financial Times, 08/30/2007
MarketMinder's View: “Normality” in the markets is volatility and uncertainty – see our Commentary “Who Wants to be Normal?” for more.
Market Misperceptions
By , Bloomberg, 08/30/2007
MarketMinder's View: Jump the shark watch! (See MarketMinder commentary “Jump the Shark,” 08/22/2007.)
Market Misperceptions
By , Yahoo!Finance, 08/30/2007
MarketMinder's View: Meanwhile, unemployment remains a historically low 4.5%.
Market Misperceptions
By , BusinessWeek, 08/30/2007
MarketMinder's View: Wrong. Check history. Periods of flat or declining home prices have actually been followed by positive and above-average stock returns 6, 12, and 24 months later. And, lower home prices are GREAT for home buyers!
Sensible Stories
By , The Wall street Journal, 08/29/2007
MarketMinder's View: That’s not a typo – it says hires, not fires. See, not all mortgage-related news is bad.
Market Misperceptions
By , The New York Times, 08/29/2007
MarketMinder's View: Pretty much the worst idea we ever heard of. You want better, more competitively priced goods and services, you need less regulation, not more.
Market Misperceptions
By , National Post, 08/29/2007
MarketMinder's View: Wonderful – it’s as if the daily barrage of attention given to US housing wasn’t enough.
Sensible Stories
By , Financial Times, 08/29/2007
MarketMinder's View: The expansion of credit is benefiting people around the world.
Sensible Stories
By , The Wall Street Journal, 08/29/2007
MarketMinder's View: A very rational look at the problems in the sub-prime mortgage market and why there is no reason for it to spread to the prime mortgage market and affect the broader economy.
Market Misperceptions
By , CNNMoney.com, 08/29/2007
MarketMinder's View: Articles like these are based on some weird, mercantilist notion there’s a fixed amount of wealth in the world, and money is being diverted from kindergarten teachers to fund the outsized salaries of rich jerks. But that’s not the way the world works. The solution is easy—if you don’t like it, you don’t buy their stock.
Market Misperceptions
By , MSNBC.com, 08/29/2007
MarketMinder's View: Wow. Yet another article comparing the “mortgage crisis” to terrorism. We consider this shark pretty well jumped. (See “Jump the Shark,” 08/22/2007.)
Dueling Headlines
By , ABCNews.com, 08/29/2007
MarketMinder's View: All from the same source! Someone was asleep at the wheel.
Market Misperceptions
By , Financial Times, 08/29/2007
MarketMinder's View: Oh no! Wait – there is no reason to fear this, it really doesn’t tell us much other than the global stock market continues to grow bringing in more and more players.
Market Misperceptions
By , MSNBC, 08/29/2007
MarketMinder's View: Bit of a stretch. Then again, using the same statistical strategy, we can prove the supposed “credit crunch” is contributing to abnormal weather patterns in the Ozarks.
Market Misperceptions
By , Kiplinger, 08/29/2007
MarketMinder's View: No! NO NO NO! Variable annuities are never—not ever—appropriate for high net worth investors. And putting a tax-deferred vehicle in a tax-deferred account is the height of insanity! Variable annuities are good for the broker and insurance company selling them and no one else. If you get nothing from MarketMinder besides learning to never buy a variable annuity, we have fulfilled our duty to society.
Sensible Stories
By , ABCNews.com, 08/29/2007
MarketMinder's View: A decent, easy-to-understand primer on central bank tactics.
Sensible Stories
By , BusinessWeek, 08/29/2007
MarketMinder's View: A market-based solution. We’ve seen evidence of it already as banks, voluntarily, have tightened lending standards. Government “rescue” problems cause exponentially more harm than good.
Sensible Stories
By , MarketWatch, 08/29/2007
MarketMinder's View: “Care to guess the highest level to which the Conference Board's consumer confidence index has risen in the last 20 years? That's right: It was in January 2000, just weeks prior to the popping of the Internet bubble.” Consumer confidence is useless in stock predicting.
Sensible Stories
By , Investors.com, 08/29/2007
MarketMinder's View: Good advice. PE ratios and dividend yields don’t tell you anything about future risk or return.
Market Misperceptions
By , CNBC, 08/29/2007
MarketMinder's View: Trying to time short-term market swings is wrong-headed and leads to costly investing errors.
Market Misperceptions
By , Bloomberg.com, 08/28/2007
MarketMinder's View: Yen carry trade PLUS subprime! This is awesome! Kind of like those scary monster combo movies, e.g., “Freddy Vs. Jason” or “Alien Vs. Predator.” Anyway, ignore.
Sensible Stories
By , Las Vegas Review-Journal, 08/28/2007
MarketMinder's View: MarketMinder readers know that the deficit is not negative for stocks by itself, but for those claiming that that the economy is faltering should look no further than the booming tax revenues shrinking the deficit for proof that economic growth remains strong.
Market Misperceptions
By , Investors.com, 08/28/2007
MarketMinder's View: No! Timing short-term market swings is nearly impossible and can be very costly. Corrections don’t hurt long-term market return averages, and they don’t hurt you. Ignore.
Market Misperceptions
By , CNNMoney.com, 08/28/2007
MarketMinder's View: So, consumer confidence hasn’t been this low since right before the stock market shot up for two years straight? Ignore consumer confidence—it’s backward-looking and not predictive.
Sensible Stories
By , The Wall Street Journal, 08/28/2007
MarketMinder's View: A good example of why strong property rights (intellectual and general) are vital to a healthy, thriving economy.
Sensible Stories
By , MSNBC.com, 08/28/2007
MarketMinder's View: How could poverty dip if we’re over-indebted, the economy’s terrible, we’re all doomed, etc. etc., as the media relentlessly reports? Hey. . . maybe the media doesn’t have it quite right. . .
Sensible Stories
By , Financial Times, 08/28/2007
MarketMinder's View: This will not be instantaneous but the gradual loosening of capital controls in China is a positive sign.
Sensible Stories
By , CNNMoney.com, 08/28/2007
MarketMinder's View: We’re a tad confused why this article has a negative tone. Apparently, more people can afford to become homeowners: “43 percent of all homes on the market are affordable to local residents earning median household incomes, up from 40.6 percent a year ago.” Aren’t more affordable homes good news?
Sensible Stories
By , The Wall Street Journal, 08/28/2007
MarketMinder's View: Given how attractive equity valuations are relative to borrowing costs, it's no surprise deals are continuing.
Market Misperceptions
By , The Wall Street Journal, 08/28/2007
MarketMinder's View: Consumer confidence is a lagging indicator and will tell you little about the future direction of the equity markets.
Sensible Stories
By , Forbes, 08/28/2007
MarketMinder's View: A revealing look at a dangerous trend—increasing government regulation in business licensing. Want to read palms? You’ll need a government-issued license to do so.
Market Misperceptions
By , Barron’s, 08/28/2007
MarketMinder's View: What? Define “normalcy!” Markets are volatile—that’s normal. See MarketMinder commentary “Who Wants to Be Normal?” 8/21/2007.
Market Misperceptions
By , CNBC, 08/28/2007
MarketMinder's View: Great news! Pessimism is a good thing – it’s euphoria that should make you fearful.
Market Misperceptions
By , MarketWatch, 08/28/2007
MarketMinder's View: Politicians who claim debt is the “single problem that will destroy America from within” are betraying a basic misunderstanding of Capitalism.
Sensible Stories
By , The Motley Fool, 08/28/2007
MarketMinder's View: Our sentiments exactly.
Market Misperceptions
By , BusinessWeek, 08/27/2007
MarketMinder's View: So, if you hate outsourcing, shouldn’t this be good news? (For the record, we here at MarketMinder think outsourcing and all forms of globalization are grand!)
Market Misperceptions
By , CNNMoney.com, 08/27/2007
MarketMinder's View: A panel of business economists think mortgage defaults now pose a greater risk to the economy than terrorism? Considering we never thought terrorism posed much threat to the economy in the first place, who cares? (Before you think we’re insane, see MarketMinder commentary “Terror’s Toll,” 07/02/2007.)
Sensible Stories
By , Fortune, 08/27/2007
MarketMinder's View: History’s lessons are vital for putting today’s investing landscape into context. Understanding how today is similar or different can put you on the right track to making smarter investment decisions.
Market Misperceptions
By , Kiplinger, 08/27/2007
MarketMinder's View: Let’s see if we understand this. Home sales haven’t been this slow since right before the bull market started?
Market Misperceptions
By , Boston Globe, 08/27/2007
MarketMinder's View: Oh oh. Someone needs to check their history. The last recession ended (according to the National Bureau of Economic Research) just after 9/11. Awkward. Or maybe, they’re trying to threaten us with continuing robust economic growth? Seems odd.
Sensible Stories
By , The Wall Street Journal*, 08/27/2007
MarketMinder's View: We’ve said it before: Smart money sees opportunity in today’s investing environment.
Sensible Stories
By , Opinion Journal, 08/27/2007
MarketMinder's View: Tax hikes take money out of productive hands (like yours) and put it into less efficient hands (the government)—a bad idea in general.
Sensible Stories
By , Investors.com, 08/27/2007
MarketMinder's View: Stronger than expected economic growth? Haven’t they heard about the “credit crisis” across the pond?
Market Misperceptions
By , International Business Times, 08/27/2007
MarketMinder's View: Classic worst-case scenario sensationalism.
Sensible Stories
By , The Wall Street Journal, 08/27/2007
MarketMinder's View: Sure! A good explanation why the “credit crisis” isn’t as widespread as most think and will right itself.
Sensible Stories
By , Forbes, 08/27/2007
MarketMinder's View: A good reminder: “Whenever the stock market climbs, it's up a wall of worry.”
Market Misperceptions
By , 08/27/2007
MarketMinder's View: Given that stock markets are discounters of all widely known information, we love to see stories like this because it means other people are worrying about the issue so you don’t have to.
Sensible Stories
By , Investors.com, 08/27/2007
MarketMinder's View: The worst thing politicians could do is try to “solve” subprime woes with a slew of new regulations.
Market Misperceptions
By , Bloomberg, 08/27/2007
MarketMinder's View: Mr. Bernanke hasn’t made an emergency Fed funds rate cut because he sees no evidence subprime nor the economy requires “bailing out.”
Sensible Stories
By , The Wall Street Journal, 08/24/2007
MarketMinder's View: Cut taxes! Proof of the power of incentives.
Market Misperceptions
By , International Business Times, 08/24/2007
MarketMinder's View: The politics of green regulation will create economic winners and losers. Here’s some insight.
Sensible Stories
By , Forbes, 08/24/2007
MarketMinder's View: Smart speculations about the future of energy.
Market Misperceptions
By , Kudlow’s Money Politics, 08/24/2007
MarketMinder's View: No. A rate cut is not needed for “stability.” Credit markets will be just fine. (See yesterday’s commentary, “Best Credit Crunch Ever!” for more.)
Sensible Stories
By , MSNBC, 08/24/2007
MarketMinder's View: Despite media claptrap, credit markets are functioning just fine.
Sensible Stories
By , Times Online, 08/24/2007
MarketMinder's View: “The only really big danger in the current crisis is that we overreact to it. That in our panicky reaction to an inevitable fear of the inevitable, we insist on new regulatory burdens for our markets.” Very well said.
Market Misperceptions
By , The Wall Street Journal, 08/24/2007
MarketMinder's View: A classic (and faulty) extrapolation of a small subset of the economy to the broader economy. Amid the supposed housing and subprime chaos, unemployment claims actually fell in the most recent period.
Market Misperceptions
By , The Wall Street Journal, 08/24/2007
MarketMinder's View: Yep, some hedge funds got hurt with too much leverage. Sometimes you get the short end of the stick in games of high risk and return. Now wipe your eyes and take a clear look at the broader, robust economy. You’ll see that defunct hedge fund losses are a miniscule part.
Market Misperceptions
By , Globe and Mail, 08/24/2007
MarketMinder's View: Has everyone forgotten that the US market was up over 28% in 1998? In that case, let’s hope this year turns out like 1998.
Market Misperceptions
By , CNN Money, 08/24/2007
MarketMinder's View: We hate to break the news but the S&P 500 is actually positive in August through yesterday.
Market Misperceptions
By , International Herald Tribune, 08/24/2007
MarketMinder's View: When has government ever run anything more efficiently or effectively than the free market?
Sensible Stories
By , The Independent, 08/24/2007
MarketMinder's View: The Chinese government is slowly opening its capital markets. Chinese citizens can now invest internationally. However, an influx of new Chinese capital into global equity markets won’t destabilize anything—this is a small thing but a good thing nonetheless.
Market Misperceptions
By , 08/24/2007
MarketMinder's View: Strong words from Pimco’s Bill Gross—“The commercial paper market, in terms of the asset-backed commercial paper market, is basically history.” Ho-hum. Outstanding commercial paper levels are still above the beginning of 2007 and near historical highs.
Market Misperceptions
By , US News, 08/24/2007
MarketMinder's View: “The enemy of the efficient functioning of the markets is emotion. When you have fear and panic, markets don't work. A regulator does have a duty to not let panic or emotion hurt the market.” Um, sorry, but fear and panic have always been part of free markets and always will be. The idea that we could (or that we’d even want to!) magically regulate away human nature is patently absurd.
Sensible Stories
By , MSNBC, 08/24/2007
MarketMinder's View: At first blush, you might think these were headlines from 2004 (housing’s go-go days). But no! This is happening today. Housing has fallen on tougher times, but there’s no implosion.
Sensible Stories
By , International Business Times, 08/23/2007
MarketMinder's View: Fundamentals favorable to M&A activity remain intact! We expect to see a resurgence in activity in the not-too-distant future.
Sensible Stories
By , Prague Daily Monitor, 08/23/2007
MarketMinder's View: Flat, simple taxes are a beautiful thing – glad to see the Czech Republic joining the expanding club.
Market Misperceptions
By , Fortune, 08/23/2007
MarketMinder's View: Um…no. Americans work fewer hours than developing nations’ workers because we’re the most productive work force on earth. As for developed nations, check out what business is like during a “siesta” in Spain or a soccer match in Italy or anytime in France and try telling us we’re lazy.
Market Misperceptions
By , Times Online, 08/23/2007
MarketMinder's View: Unknowns always exist in the market – do not let them deter you from investing.
Dueling Headlines
By , ABC News, 08/23/2007
MarketMinder's View: Our heads hurt.
Sensible Stories
By , Reuters, 08/23/2007
MarketMinder's View: We actually don’t view a shrinking deficit, on its own, as a net positive. But we’re OK if it comes at the hands of strong economic growth.
Market Misperceptions
By , Financial Times, 08/23/2007
MarketMinder's View: Isn’t the answer to creating “a climate where excessive risk-taking is more effectively discouraged” less regulation, not more?
Market Misperceptions
By , The Wall Street Journal, 08/23/2007
MarketMinder's View: What? No! Call it what you will—cap and trade, carbon tax—it’s government intervention in business and will reduce efficiency, productivity, and opportunity. Wealthier nations can afford innovating on greener technologies—government intervention takes away incentive to innovate. For evidence, please see Air Pollution, Communist China.
Dueling Headlines
By , newsvine.com, 08/23/2007
MarketMinder's View: You say tomato, I say credit crunch. It’s hard to take any of this seriously when credit spreads are narrowing again from a mini-spike—the magnitude of which we’ve already witnessed this bull run. It didn’t derail the market or economy then, likely won’t now.
Market Misperceptions
By , MarketWatch, 08/23/2007
MarketMinder's View: Weird. Or, you can interpret four banks tapping the Fed for loans this way: The Fed made money cheaper, so why not take advantage? It’s not proof of disaster, it’s evidence that money remains cheap and easy.
Sensible Stories
By , Financial Times, 08/23/2007
MarketMinder's View: “Firms will resume buying back shares and taking over their peers – and we will keep shrinking the supply of equity and the bull market will resume.” Exactly.
Sensible Stories
By , The Wall Street Journal, 08/23/2007
MarketMinder's View: Not much makes us as happy as free trade deals.
Market Misperceptions
By , MSN Money, 08/23/2007
MarketMinder's View: Rate cuts won’t cure the so-called credit crunch, because there is no legitimate, system-wide credit crunch. Corporate borrowing rates (BBB) have been below their ten-year averages during the entirety of this “crisis.” Below-average borrowing rates? How is that a credit crunch?
Sensible Stories
By , AP, 08/23/2007
MarketMinder's View: We’ve been pretty critical of recent US trade moves ourselves. See MarketMinder commentary “Free Trade Imperiled,” 8/8/2007.
Sensible Stories
By , Kiplinger, 08/23/2007
MarketMinder's View: Earnings news has been lost amongst credit crunch derangement. (By the way, earnings walloped expectations this quarter.)
Sensible Stories
By , Pittsburgh-Tribune Review, 08/22/2007
MarketMinder's View: “History is clear that freer trade means more opportunity and greater and more widespread prosperity.” Amen to that.
Sensible Stories
By , The Wall Street Journal, 08/22/2007
MarketMinder's View: The lifting of capital controls in China is a great thing—an open economy is a prosperous one.
Sensible Stories
By , BBC News, 08/22/2007
MarketMinder's View: No! Excellent piece on why the debt levels are not as problematic as some may have you believe.
Sensible Stories
By , US News & World Report, 08/22/2007
MarketMinder's View: More evidence of why investors must ignore media hype, and examine the facts for themselves. Americans are doing just fine, thanks.
Sensible Stories
By , Carpe Diem, 08/22/2007
MarketMinder's View: We’re feeling nostalgia for today already.
Market Misperceptions
By , The Washington Post, 08/22/2007
MarketMinder's View: Yes, they fell, but “the four-week moving average for the overall mortgage applications index rose 1.3% to 645.8.” Either way, it doesn’t matter much for the stock market. Historically, home sales have not been predictive for stock performance.
Sensible Stories
By , The New York Times, 08/22/2007
MarketMinder's View: How is this even possible? We’ve been reading for the past month that takeovers are done, forever, because of the “credit crunch.” Hmm. Maybe those headlines weren’t exactly right.
Sensible Stories
By , Times Online, 08/22/2007
MarketMinder's View: Indeed. “…the scale of the real problems in the US mortgage market, though large in nominal terms, are still only a small fraction of the total housing sector, let alone of the broader US economy.”
Market Misperceptions
By , CNN Money, 08/22/2007
MarketMinder's View: Oh no – now we need to put up with the media blaming everything on the mortgage market. What’s next, sub-prime is the cause of global warming?
Sensible Stories
By , CNNMoney.com, 08/22/2007
MarketMinder's View: A mortgage company focusing exclusively on the prime mortgage market has seen its shares rise 21% in the past month due to strong performance. Considering that prime mortgages are by far the majority of loans, shouldn’t this tell us something?
Sensible Stories
By , Bloomberg, 08/22/2007
MarketMinder's View: “Every market crisis needs a scapegoat.” Well said. No amount of finger-pointing can change the fact that volatility risk is inherent to any freely-traded market, and investors must assess that risk to determine if it’s appropriate given their goals.
Market Misperceptions
By , Times Online, 08/22/2007
MarketMinder's View: And all along everyone thought it would be pork-barrel politics from politicians that impacted Chinese policy…
Market Misperceptions
By , Bloomberg, 08/22/2007
MarketMinder's View: Yeah. We can’t figure out why this should impact the stock market either.
Sensible Stories
By , Globe and Mail, 08/21/2007
MarketMinder's View: Very well said, and it doesn’t just apply to Canada: “…the unprecedented expansion of access - to goods, services, ideas and opportunities - is the primary driver that has created profound and positive change for nations, businesses and individuals around the world…”
Sensible Stories
By , The Wall Street Journal, 08/21/2007
MarketMinder's View: There is still a tremendous amount of accessible capital for Private Equity deals to continue.
Sensible Stories
By , MSNBC.com, 08/21/2007
MarketMinder's View: “The economy remains in good shape.” Yes it does!
Market Misperceptions
By , The Wall Street Journal, 08/21/2007
MarketMinder's View: A “pinch” is now seemingly defined as an increase of 12.8% a year – oh the horror!
Market Misperceptions
By , Herald Sun, 08/21/2007
MarketMinder's View: Who thought it was? Volatility is normal and healthy in any market environment.
Market Misperceptions
By , National Post, 08/21/2007
MarketMinder's View: A more accurate way to view the current environment is: “As the World Grows, So Grows the US.”
Sensible Stories
By , The Times, 08/21/2007
MarketMinder's View: Even aside from their actions recently, central banks have provided a much more stable and predictable system for markets than ever before.
Market Misperceptions
By , CNNMoney.com, 08/21/2007
MarketMinder's View: Would you rather invest in stocks when investors are euphoric about the market or in a “hyper-risk-averse mode?” These are not the signs of a bull market top.
Market Misperceptions
By , CNNMoney.com, 08/21/2007
MarketMinder's View: “Poll of 1,000 consumers finds nearly half are worried about credit, subprime problems but unsure how it affects them.” A classic sign of a correction driven by unwarranted fear of something misunderstood.
Sensible Stories
By , The Australian, 08/21/2007
MarketMinder's View: Great insight into the disconnect between media scare-mongering and the underlying strength of the economy.
Sensible Stories
By , Bloomberg.com, 08/21/2007
MarketMinder's View: “Hence, it seems that a wide range of fundamentally sound assets have suffered out of proportion as markets have been gripped by fear." In other words, this is a psychological sell off with little in the underlying economy to suggest an aggressive rate cut is imminent.
Sensible Stories
By , Bloomberg.com, 08/20/2007
MarketMinder's View: The reduction of capital controls, however slow, is a bullish sign.
Sensible Stories
By , Bloomberg.com, 08/20/2007
MarketMinder's View: Housing supply stores are blowing past expectations! The economy remains strong.
Sensible Stories
By , CNN Money, 08/20/2007
MarketMinder's View: Sometimes, it’s great to be a “stupid” investor.
Market Misperceptions
By , Independent, 08/20/2007
MarketMinder's View: There is never certainty about the direction of the market - get used to it.
Market Misperceptions
By , Investor’s Business Daily, 08/20/2007
MarketMinder's View: New highs or new lows – what a stock price has done in the past tells you nothing about what it will do in the future.
Market Misperceptions
By , CNNMoney.com, 08/20/2007
MarketMinder's View: Risk never left!! Corporations and individuals have been able to borrow at low rates over the past few years because corporate balance sheets and earnings remain strong while unemployment has been low. In fact, this remains true today.
Sensible Stories
By , Econbrowser, 08/20/2007
MarketMinder's View: Yes, credit spreads are higher than the ultra-low levels experienced two months ago but they are still well within historical norms.
Sensible Stories
By , Cato Institute, 08/20/2007
MarketMinder's View: “We succeeded in getting rid of communism, but we erroneously assumed that attempts to suppress freedom were matters of the past.” From someone who knows a thing or two about the lack of freedom.
Market Misperceptions
By , The Wall Street Journal, 08/20/2007
MarketMinder's View: Current-account deficits do not drive currencies. See Britain’s similar deficit as a % of GDP and its strong currency for proof.
Market Misperceptions
By , Fortune, 08/20/2007
MarketMinder's View: So borrowing costs have increased slightly but housing prices have declined. Doesn’t this mean you can deduct more interest from your taxes but on a smaller loan for the same house?
Sensible Stories
By , Washington Post, 08/20/2007
MarketMinder's View: Exactly – the thing we should fear is ill-advised government policies aimed at correcting problems.
Market Misperceptions
By , Barron’s, 08/17/2007
MarketMinder's View: We didn’t bother reading past this subtitle “Bear Market Rallies Are the Most Violent.” What does that even mean? A bear market rally? How is that possible? We’ve been in a bull market for the last five years. How can you have a bear market rally in the middle of a bull market? Ignore.
Market Misperceptions
By , Kiplinger, 08/17/2007
MarketMinder's View: Correction sentiment defined: “Events seem out of control, and volatility appears almost senseless.”
Sensible Stories
By , International Business Times, 08/17/2007
MarketMinder's View: Yes it can!
Sensible Stories
By , Financial Times, 08/17/2007
MarketMinder's View: A straightforward assessment of the current situation and an upbeat outlook for markets.
Market Misperceptions
By , The Washington Post, 08/17/2007
MarketMinder's View: We’re not real estate forecasting experts (interestingly, neither is Fannie Mae), but we know this—historically, real estate price moves don’t dictate stock market direction.
Sensible Stories
By , Bloomberg, 08/17/2007
MarketMinder's View: Heck yes we should! Free trade is a vital driver to a healthy economy.
Market Misperceptions
By , Time, 08/17/2007
MarketMinder's View: Typical regret-shunning finger pointing characteristic of a correction. The media loves a scapegoat! In February, it was yen carry trade. In 2005, bird flu. In 1998, Russian ruble. Today—subprime! All emotional stories, not fundamental.
Sensible Stories
By , The Motley Fool, 08/17/2007
MarketMinder's View: We agree with the sentiments herein. Stocks look darn cheap!
Sensible Stories
By , BusinessWeek, 08/17/2007
MarketMinder's View: Bear in mind, today’s Fed action was largely symbolic. (Why would a bank borrow from the Fed at 5.75% when they can borrow from each other at 5.25%?) Rate moves of this sort are perfectly normal—a central bank managing liquidity through some market jitters. We see nothing alarming here, nor would be much fussed by continuing tweaks.
Dueling Headlines
By , MSN Money, 08/17/2007
MarketMinder's View: Well which one is it - a crash or rising 40%? We're not about to make a 40% forecast but a huge crash in UK property prices seems unlikely.
Sensible Stories
By , Café Hayek, 08/17/2007
MarketMinder's View: The myth of trade imbalances.
Market Misperceptions
By , MSNBC.com, 08/17/2007
MarketMinder's View: Get out! The market corrects, and consumer sentiment drops? Consumer sentiment is backward looking and not predictive of future stock returns.
Market Misperceptions
By , Barron’s, 08/17/2007
MarketMinder's View: Newsflash: Volatility follows everything in the stock market. It’s the stock market! It’s volatile!
Market Misperceptions
By , newsvine.com, 08/17/2007
MarketMinder's View: We seriously doubt it. Corrections cause nervous investors, not recessions.
Sensible Stories
By , Financial Times, 08/17/2007
MarketMinder's View: Great insight into the disconnect between recent turmoil in the credit markets and the strong global economy. Hint – the latter should prevail.
Sensible Stories
By , The Wall Street Journal, 08/17/2007
MarketMinder's View: We can’t say we completely agree, but we respect the practice of questioning conventional wisdom whenever possible. Well worth a read.
Market Misperceptions
By , MSNBC, 08/17/2007
MarketMinder's View: Housing problems? Weak US consumer? We seem to remember hearing this story before. Oh right, it’s been talked about for years! If everyone is talking about something, it’s more than likely either wrong or already discounted into stocks.
Market Misperceptions
By , The Wall Street Journal, 08/17/2007
MarketMinder's View: Don’t worry about one-day moves – equities are not serially correlated. But we have to wonder how many people turned off their televisions mid-day in disgust just before the market rallied back.
Market Misperceptions
By , The Wall Street Journal, 08/16/2007
MarketMinder's View: Oh no – the last thing we need is more complexity in the tax code.
Sensible Stories
By , US News, 08/16/2007
MarketMinder's View: A strong articulation of the Fed’s recent liquidity injections along with good reasons why today’s credit panic is overblown.
Market Misperceptions
By , The New York Times, 08/16/2007
MarketMinder's View: The point is moot no matter how you look at it. PE ratios—high or low—aren’t predictive of future stock market direction.
Market Misperceptions
By , Forbes, 08/16/2007
MarketMinder's View: Talk of the mysterious yen carry trade is back! The carry trade turned out months ago to be a false worry, and the same is true today.
Market Misperceptions
By , ABC News, 08/16/2007
MarketMinder's View: Let’s get something straight: Housing construction is still growing—it’s the rate of growth that’s lagging. This is not the stuff of implosion.
Sensible Stories
By , Bloomberg.com, 08/16/2007
MarketMinder's View: So much for the end of the buyout boom.
Sensible Stories
By , CNNMoney, 08/16/2007
MarketMinder's View: Despite subprime market woes, note that the prime market for lending has yet to be affected. According to the article, 30-year fixed prime rates (the most common type of mortgage loans) are averaging 6.62%, only slightly above last year’s 6.52%.
Market Misperceptions
By , MSNBC.com, 08/16/2007
MarketMinder's View: The outlook of homebuilders is not an indicator of future economic prospects for the entirety of the US economy.
Sensible Stories
By , Reuters via MSNBC, 08/16/2007
MarketMinder's View: “The issue for me is whether it’s going to spread into business fixed investment and the consumer segment more broadly. I don’t see evidence that that’s taking place.”
Sensible Stories
By , Financial Times, 08/16/2007
MarketMinder's View: This not only applies to companies but for investment portfolios as well. At MarketMinder we are firm believers in the benefits of global diversification.
Sensible Stories
By , 08/16/2007
MarketMinder's View: More voices of reason from credible sources.
Sensible Stories
By , 08/16/2007
MarketMinder's View: Emerging markets are a great place to invest, but remain cognizant of the big risks that go along with them.
Sensible Stories
By , Businessweek, 08/16/2007
MarketMinder's View: More evidence of an emerging theme: While the broader market panics, those in the know are seizing what they believe is a tremendous opportunity.
Sensible Stories
By , National Review, 08/16/2007
MarketMinder's View: A great piece on the difficulties of scaling and the impact of the current problems with subprime. On a side note, it’s good to see the reference to Ferris in our Commentary “Free Markets...Anyone? Anyone?” is gaining traction.
Market Misperceptions
By , Bloomberg, 08/16/2007
MarketMinder's View: Although fleeing to Treasuries is the wrong decision during a bull market correction, this demonstrates the value and stability investors worldwide see in the United States. You’ll notice few feel it wise to purchase Chinese debt in quest of greater assurance.
Market Misperceptions
By , MSNBC, 08/16/2007
MarketMinder's View: Supposedly, this is the big financial news story of the day—an $11 billion loan in an economy comprising trillions of dollars. Ho hum.
Market Misperceptions
By , The Wall Street Journal, 08/16/2007
MarketMinder's View: Two farcical, but funny, takes on today’s hedge fund woes.
Sensible Stories
By , The Wall Street Journal, 08/16/2007
MarketMinder's View: On the politics of fiscal policy and the unlikelihood of a new private equity tax.
Sensible Stories
By , The Wall Street Journal, 08/16/2007
MarketMinder's View: Municipal Wi-Fi networks are experiencing cost overruns while falling short of performance expectations. Again, we must ask: Who thought it was the government’s business to provide internet service in the first place?
Market Misperceptions
By , TheStreet.com, 08/16/2007
MarketMinder's View: Whether a stock is trading at its 52-week high or its 52-week low is useless information. Stock prices are not serially correlated. Period. A stock’s historical performance gives you no indication of future price.
Sensible Stories
By , Wall Street Journal, 08/15/2007
MarketMinder's View: Despite all the talk of a slowing residential property market, demand for commercial space remains strong.
Sensible Stories
By , BBC News, 08/15/2007
MarketMinder's View: The UK job market remains robust.
Market Misperceptions
By , Financial Times, 08/15/2007
MarketMinder's View: “Confidence among some of the world’s business leaders has slumped to its lowest level since the third quarter of 2002…” Heaven forbid we see more of the five year bull market that began right around the 3rd quarter of 2002! As we mentioned in yesterday’s commentary “Bearing with Bulls”, there is little euphoria today.
Market Misperceptions
By , Bloomberg, 08/15/2007
MarketMinder's View: Oh oh . . . Investors haven’t been this risk averse since just before a 14% positive move in US stocks?
Sensible Stories
By , Wall Street Journal, 08/15/2007
MarketMinder's View: Buybacks continue to fuel a rapid reduction in outstanding shares – bullish for equities.
Sensible Stories
By , Chicago Tribune, 08/15/2007
MarketMinder's View: Don’t look now . . . these strong positive fundamentals are receiving little notice. Very bullish.
Sensible Stories
By , Financial Times, 08/15/2007
MarketMinder's View: Attention bargain shoppers – we have a sale in the equities aisle.
Sensible Stories
By , Kiplinger, 08/15/2007
MarketMinder's View: Yes, we certainly think so. “Should the drop be taken as a signal to abandon stocks? No.”
Market Misperceptions
By , CNNMoney.com, 08/15/2007
MarketMinder's View: Housing “crisis?” Median US home prices are down 1.7% from their peak while 65% of surveyed metro areas showed year-over-year price increases. How is that a crisis?
Sensible Stories
By , The Wall Street Journal, 08/15/2007
MarketMinder's View: A free market is the best way to get high quality goods at a competitive price—including health care.
Sensible Stories
By , ABC News, 08/15/2007
MarketMinder's View: Yes, stocks are still positive despite the pullback, but you shouldn’t focus on past performance. Fundamentals are strong, the global economy growing, earnings surprising to the upside, and stock supply still being reduced. It’s a fine time to remain bullish.
Sensible Stories
By , Bloomberg, 08/15/2007
MarketMinder's View: A good explanation why market corrections are normal and healthy, and we needn’t fear a systemic fallout from current credit market worries.
Market Misperceptions
By , The Washington Post, 08/15/2007
MarketMinder's View: Let’s see, what else have folks fretted would sap spending? Bird flu. Yen carry trades unwinding. The budget deficit. The trade deficit. The weak dollar. Inflation. And now, the credit crunch! Yet, mysteriously, consumer spending remains strong . . .
Sensible Stories
By , CNNMoney.com, 08/15/2007
MarketMinder's View: Despite all the scary headlines, long-term investors still see buyout opportunities.
Market Misperceptions
By , CNNMoney, 08/15/2007
MarketMinder's View: We’ll go out on limb and say that no one will remember yesterday as “Terrible Tuesday.” Heck, the market experienced a bigger drop on Tuesday, February 27th of this year and it neither derailed the market nor received a gimmicky nickname.
Market Misperceptions
By , Financial Times, 08/15/2007
MarketMinder's View: What has been missed by much of the press is that problems with subprime are a very small portion of the overall mortgage market and an even smaller portion of the total credit market.
Dueling Headlines
By , ABC News, 08/15/2007
MarketMinder's View: People continue to underestimate the strength of the global economy—a bullish driver for equity markets.
Market Misperceptions
By , The New York Times, 08/14/2007
MarketMinder's View: It might be big political news, but doesn’t matter in the least to stocks.
Sensible Stories
By , Forbes, 08/14/2007
MarketMinder's View: The imbalance between individual stock fundamentals and recent market action is rather large—this article shows us just how large.
Sensible Stories
By , Bloomberg, 08/14/2007
MarketMinder's View: Upon closer inspection, central banks’ recent “enormous” cash infusions weren’t so big after all.
Market Misperceptions
By , AP Business Writer, 08/14/2007
MarketMinder's View: There’s a fine line between a “bail out” and an “investment.” We doubt anyone invested in Goldman’s fund for altruistic reasons—someone saw an opportunity. Don’t be surprised if this “bail out” pays off once markets stabilize.
Sensible Stories
By , The Washington Post, 08/14/2007
MarketMinder's View: The NASDAQ is proving how innovative a financial services firm can be by keeping operations free of excess red tape.
Market Misperceptions
By , Newsweek, 08/14/2007
MarketMinder's View: It’s ironic that the title of the column is “Contrary Indicator” and yet spells out exactly what everyone else is saying - this is all showing signs of a normal well-publicized correction.
Sensible Stories
By , The Sydney Morning Herald, 08/14/2007
MarketMinder's View: Two excellent perspectives on bull market corrections amid a strong economy and bullish fundamentals.
Sensible Stories
By , Bloomberg, 08/14/2007
MarketMinder's View: Strong voices of reason are telling us today’s credit panic is far overwrought…perhaps we should listen.
Sensible Stories
By , The New York Times, 08/14/2007
MarketMinder's View: This is how innovation happens—you don’t have to be in the healthcare business to improve healthcare…all you need is an incentive based, free market environment, and the rest takes care of itself.
Sensible Stories
By , The Wall Street Journal, 08/14/2007
MarketMinder's View: Get this: taxes could well be a bigger burden on households than mortgages or health care!
Sensible Stories
By , Bloomberg, 08/14/2007
MarketMinder's View: Inflation remains a non-concern.
Market Misperceptions
By , International Business Times, 08/14/2007
MarketMinder's View: Silliness. If anything, jobs data is traditionally a lagging, not leading, indicator. And anyway, unemployment is at near historical lows.
Sensible Stories
By , The Financial Times, 08/14/2007
MarketMinder's View: Lots of good stuff in this one: “Heck, we're under-leveraged as a country right now and should probably take on more debt…Housing prices are down 1 per cent year-over-year, after almost doubling in the past five. So, please, before you jump out the window and hit the quant traders on the sidewalk, note that this ‘crisis’ in the stock market has little to do with housing.”
Market Misperceptions
By , Marketwatch, 08/14/2007
MarketMinder's View: Ignore trade deficits. The US has had one for a long time and the economy has done just fine…and so have stocks.
Sensible Stories
By , The Washington Post, 08/14/2007
MarketMinder's View: Look no farther than Cuba and North Korea to see how far protectionism will get you.
Sensible Stories
By , Forbes, 08/14/2007
MarketMinder's View: One of the private equity big boys is smelling opportunity amidst all this credit panic…investors should take note.
Market Misperceptions
By , Barron’s Online, 08/14/2007
MarketMinder's View: Here’s the thing: we need Lamborghinis (hedge funds) in financial markets—they’re the speedsters that innovate and help develop capital markets. Just because the high risk-takers sometimes crash and burn doesn’t mean the economy will go with it.
Market Misperceptions
By , NPR, 08/14/2007
MarketMinder's View: It might be painful sometimes, but if you foolishly try to eliminate risk, you also eliminate return—risk and return are correlated, always.
Sensible Stories
By , The Wall Street Journal, 08/14/2007
MarketMinder's View: Protectionism is a true risk to markets because it impedes free trade and curtails economic activity with all sorts of inefficiencies and negative repercussions.
Sensible Stories
By , The Wall Street Journal, 08/14/2007
MarketMinder's View: What a revolutionary way to help people – cut taxes!
Sensible Stories
By , Breifing.com, 08/14/2007
MarketMinder's View: A cut in interest rates designed to stop temporary market losses is foolish, plain and simple.
Market Misperceptions
By , MSNBC.com, 08/14/2007
MarketMinder's View: What, no national holiday? Consumers have adjusted to higher gas prices – small moves like this one are meaningless.
Sensible Stories
By , Chicago Tribune, 08/14/2007
MarketMinder's View: Never underestimate the power of the market to react quickly and certainly more efficiently than politicians.
Sensible Stories
By , Financial Times, 08/13/2007
MarketMinder's View: The dollar remains China’s reserve currency of choice.
Market Misperceptions
By , National Post, 08/13/2007
MarketMinder's View: You didn’t expect the financial media to let a sensationalist story like subprime go that easily, did you?
Market Misperceptions
By , Economist’s View, 08/13/2007
MarketMinder's View: The “meltdown” in 1998 was a correction, just like what we’re likely witnessing today. Here’s hoping this year is exactly like 1998—a year US stocks finished a net positive 29%! (For more, read MarketMinder commentary, “Pray for Panic,” 8/10/07)
Market Misperceptions
By , Investor’s Business Daily, 08/13/2007
MarketMinder's View: Yikes! Stop-losses are always a bad idea. They don’t protect you from loss and only guarantee higher transaction fees. Why? Stock prices are not serially correlated.
Sensible Stories
By , The Washington Post, 08/13/2007
MarketMinder's View: A rational look at the subprime meltdown. “When the dust settles, the market for subprime mortgages will revive and thrive in dull obscurity. With financial innovation, it was ever so.”
Market Misperceptions
By , MSN Money, 08/13/2007
MarketMinder's View: Any article using the word “barf” to describe something financial you may safely ignore.
Sensible Stories
By , Forbes, 08/13/2007
MarketMinder's View: Foreigners don’t hold US Treasuries out of the kindness of their hearts. They invest in America because they perceive opportunity here. Dumping US Treasuries would hurt China as much or more than it would hurt the US.
Market Misperceptions
By , MSNBC.com, 08/13/2007
MarketMinder's View: By most measures, global inflation remains very much contained.
Sensible Stories
By , Kudlow’s Money Politic$, 08/13/2007
MarketMinder's View: "Nobody likes stiff stock market corrections. But if folks step back a bit they’ll see the many positives -- the jobs, the incomes, and the profits -- that will carry us through this difficult period.” Well said.
Sensible Stories
By , ABC News, 08/13/2007
MarketMinder's View: The best way to maximize the likelihood of a comfortable retirement: If you have a long time horizon (most of you probably do) invest in equities.
Sensible Stories
By , The New York Times, 08/13/2007
MarketMinder's View: Now that the deficit is no longer a worry, financial journalists will surely attach themselves to another equally meaningless statistic as a sign of the coming apocalypse.
Market Misperceptions
By , Barrons, 08/13/2007
MarketMinder's View: Central banks injecting cash into the system is not proof of systemic problems. Newsflash: Managing liquidity is what central banks do, and they frequently use a variety of methods to inject liquidity—it just normally doesn’t make the headlines. (See MarketMinder commentary “Bloody in the Alleys,” 08/09/07.)
Market Misperceptions
By , The Telegraph, 08/13/2007
MarketMinder's View: We think "slaughter" might be just a bit of an exaggeration.
Market Misperceptions
By , Forbes, 08/13/2007
MarketMinder's View: “Bearish economic analysts have variously predicted a recession in the United States for several years”—and they’ve been wrong the whole time.
Sensible Stories
By , CBS News, 08/13/2007
MarketMinder's View: Remember the economically crushing Smoot-Hawley Tariffs? Apparently, our politicians don’t. Forget the alleged “credit crunch,” protectionism is the greatest threat facing the global economy.
Market Misperceptions
By , The Wall Street Journal, 08/13/2007
MarketMinder's View: Good for Lithuania for putting economic vitality and richer citizenry ahead of adhering to arbitrary meddling by the EU.
Sensible Stories
By , Bloomberg, 08/13/2007
MarketMinder's View: Weird. Who is doing all this shopping if US consumers are tapped-out and dead?
Sensible Stories
By , The Washington Post, 08/10/2007
MarketMinder's View: An update on the political scene as it pertains to the SEC and markets.
Market Misperceptions
By , MSN Money, 08/10/2007
MarketMinder's View: Wrong wrong wrong. Backward-looking finger-pointing is very typical of a correction. Our economy is healthy and the aggregate credit market is just fine. When this shakes out, “credit crisis” fears will seem as silly as February’s yen carry-trade fears seem now.
Market Misperceptions
By , Kiplinger, 08/10/2007
MarketMinder's View: Huh? The sporting equivalent of this question might be “Should the Yankees let other teams win more often?” No! How about letting each institution decide for itself the most appropriate means of maximizing risk and return within a free market?
Market Misperceptions
By , The Sydney Morning Herald, 08/10/2007
MarketMinder's View: Here’s a new one – praying for a market downturn so housing becomes more affordable. Where do they come up with this stuff?
Sensible Stories
By , Financial Times, 08/10/2007
MarketMinder's View: Don't look now, but deal activity continues.
Sensible Stories
By , Boston Globe, 08/10/2007
MarketMinder's View: While fuel efficiency standards haven’t changed in decades, fuel efficiency in autos has dramatically improved of its own accord, and without increased regulation. Amazing what free markets can do, isn’t it?
Market Misperceptions
By , The New York Times, 08/10/2007
MarketMinder's View: Failures are natural in any market environment and the losses, while seemingly large in absolute numbers, are relatively small in comparison to the overall credit market. See our commentary “Blood in the Alleys” for more.
Sensible Stories
By , The New York Times, 08/10/2007
MarketMinder's View: How could this possibly have made it into our stories of interest, you ask? Because it’s a wonderful illustration of the fear and emotion dominating sentiment today. Misplaced fear and worry are very bullish.
Sensible Stories
By , MarketWatch, 08/10/2007
MarketMinder's View: Precisely! Fundamentals remain healthy.
Sensible Stories
By , The Wall Street Journal, 08/10/2007
MarketMinder's View: Tax something less and get more of it – this shouldn’t be a difficult concept. Unfortunately politicians just don't understand – well articulated here.
Market Misperceptions
By , Newsweek, 08/10/2007
MarketMinder's View: We don’t think so.
Sensible Stories
By , The Economist, 08/10/2007
MarketMinder's View: Innovations have helped stabilize market risk and uncertainty for investment banks and the entire economy.
Market Misperceptions
By , 08/10/2007
MarketMinder's View: These are classic bull market correction headlines. Suddenly, credit has become the root of all evil!
Sensible Stories
By , Globe and Mail, 08/10/2007
MarketMinder's View: The headline is misleading because the article is optimistic. Panic and hysteria are usually bullish signs, not bearish ones.
Sensible Stories
By , International Business Times, 08/10/2007
MarketMinder's View: A good synopsis and explanation of standard central banking practice. Once you understand it, the headlines probably won’t scare you so much.
Market Misperceptions
By , The New York Times, 08/10/2007
MarketMinder's View: Our ridiculous headline of the week. Banks, by their very definition, are designed to deal in debt—that’s why they exist!
Market Misperceptions
By , CurrencyTrading.net, 08/09/2007
MarketMinder's View: Unusually hot summers? Are they kidding? Trade balances and federal debt absolutely do not determine relative strength of a nation’s currency. The US has run a big trade deficit for 25 years, but we’ve had periods of both a strong and weak dollar. Ignore all this.
Sensible Stories
By , The Wall Street Journal, 08/09/2007
MarketMinder's View: The MarketMinder article of the month. Rarely is the financial press and its impact on investor sentiment so well illuminated. Must read.
Market Misperceptions
By , MSN Money, 08/09/2007
MarketMinder's View: Don’t let scary stories like these influence your investing decisions—a handful of troubled hedge funds doesn’t mean there’s a systemic problem. Hedge funds notoriously invest in speculative or illiquid vehicles. Their failure is nothing remarkable.
Sensible Stories
By , The New Zealand Herald, 08/09/2007
MarketMinder's View: It’s great to see governments “opening doors” to new ways for companies to access expansionary capital.
Market Misperceptions
By , LA Times, 08/09/2007
MarketMinder's View: Worries over US housing have been around for years now - this is nothing new. Aside from housing, the US economy looks very strong.
Sensible Stories
By , TCS Daily, 08/09/2007
MarketMinder's View: “We'll never run out of anything that trades in the marketplace.” Scarcity leads to higher prices which leads to substitution and innovation. Problem solved.
Sensible Stories
By , BusinessWeek, 08/09/2007
MarketMinder's View: That the Fed remains focused on managing inflation rather than bailing out a relatively small portion of the mortgage market is encouraging. Just because a few rattled souls are screaming that this is “Armageddon” doesn’t make it so.
Market Misperceptions
By , The New York Times, 08/09/2007
MarketMinder's View: Er . . . not really. President Bush said recent market turbulence was normal and the economy is still strong. And as much as we normally disdain all politicians, we agree.
Sensible Stories
By , The Wall Street Journal, 08/09/2007
MarketMinder's View: A $99 desktop computer! Whatever the problems with it, it is surely light years ahead of computers we used 10 years ago. See the column “Let Free Trade Take Its Course” for more on free trade’s contribution to technology innovation.
Sensible Stories
By , 08/09/2007
MarketMinder's View: Not much chance Mr. Popularity will get this done, but we’d be all for it. Corporate tax rates are dropping the world over, and the US is lagging embarrassingly behind.
Market Misperceptions
By , The Washington Post, 08/09/2007
MarketMinder's View: A China already worried about the appreciation of the yuan isn’t going to broadly divest from US Treasuries.
Market Misperceptions
By , MSNBC.com, 08/09/2007
MarketMinder's View: News flash - equity markets are volatile. Recent market gyrations are fairly normal and don’t portend economic disaster.
Market Misperceptions
By , RH Asset Management Limited, 08/08/2007
MarketMinder's View: Subprime is a good thing. That’s right, we said it. It may be a more volatile and risky part of the mortgage market than others (and thus susceptible to downturns like we’re seeing today), but it’s also an invaluable tool for lending to folks who otherwise couldn’t own a house and a profitable component of some investment portfolios with large debt allocations.
Sensible Stories
By , National Post, 08/08/2007
MarketMinder's View: The current sub-prime problems are only affecting a relatively small slice of the overall mortgage market – the overall economy remains quite strong.
Market Misperceptions
By , Morningstar, 08/08/2007
MarketMinder's View: Hmm…what happened to the last four years? Those were all pretty good years to be invested in stocks. It’s just now a good time to invest? Give us a break.
Sensible Stories
By , CNNMoney, 08/08/2007
MarketMinder's View: Reports of private equity’s demise have been greatly exaggerated.
Sensible Stories
By , Morningstar, 08/08/2007
MarketMinder's View: More evidence the credit market is functioning just fine. Armageddon is nowhere in sight.
Market Misperceptions
By , The Telegraph, 08/08/2007
MarketMinder's View: The same bearish predictions that didn’t hold back the markets over the past 15 months? Come on – at least come up with one new one.
Market Misperceptions
By , Businessweek, 08/08/2007
MarketMinder's View: “Federal Reserve Chairman Ben Bernanke refused to give a jittery Wall Street what it was looking for on Aug. 7—a promise of easier money.” Really? Judging by the market’s reaction yesterday and today—seems like the market is just fine with the Fed’s decision.
Sensible Stories
By , TCS Daily, 08/08/2007
MarketMinder's View: First, government mandates on ethanol spikes corn prices leading to higher prices on a wide spectrum of food prices. Now, “organic” foods cause global warming! Instead of forcing “healthy” foods and allegedly environmentally safe alternatives, why not let a free market sort out what we eat and how we power our world?
Sensible Stories
By , Bloomberg, 08/08/2007
MarketMinder's View: The Fed did not come to the market’s “rescue” yesterday because the market didn’t need rescuing in the first place. See our commentary, “No Credit Messiah Necessary” 8/6/07 for more.
Market Misperceptions
By , USA Today, 08/08/2007
MarketMinder's View: Has there ever been a period in history with no uncertainty? If you’re waiting around for a period of “certainty” before you invest—it’s going to be awhile. As in, never.
Sensible Stories
By , Times Online, 08/08/2007
MarketMinder's View: “Both global growth and corporate profitability remain in very robust form. The majority of companies have buoyant cashflow and have built up ample capital on their balance sheets to fund continuing investment.” We agree!
Sensible Stories
By , Financial Times, 08/08/2007
MarketMinder's View: A look at the innovative world of credit derivatives – see our past commentary “Spread the Risk, Spread the Love” for more.
Sensible Stories
By , Pittsburgh-Tribune Review, 08/08/2007
MarketMinder's View: Sticking with the “Opposite” game – thankfully we have government to protect us from our irresponsible selves.
Market Misperceptions
By , The New York Times, 08/08/2007
MarketMinder's View: This one has so many common worries that have no impact on the direction of the US stock market – weak dollar, savings rates, and “imbalances.” No new concerns here – ignore.
Sensible Stories
By , Reuters, 08/08/2007
MarketMinder's View: This is not the stuff of an imploding credit or housing market.
Sensible Stories
By , The Wall Street Journal, 08/08/2007
MarketMinder's View: Caveat Emptor – annuities don’t make sense for most investors, period.
Market Misperceptions
By , The New York Times, 08/08/2007
MarketMinder's View: Oh, the perils of state-sponsored investment! Why not put the money in the hands of private citizens and let them invest instead?
Market Misperceptions
By , Financial Times, 08/08/2007
MarketMinder's View: They’re not.
Market Misperceptions
By , Kiplinger, 08/07/2007
MarketMinder's View: MarketMinder faithful know not to let short-term volatility derail long-term goals. “Smooth sailing” is abnormal; volatility is normal.
Market Misperceptions
By , CNNMoney.com, 08/07/2007
MarketMinder's View: Hooray! Does this mean we’re officially done with nonsense “housing bubble” stories?
Sensible Stories
By , Financial Times, 08/07/2007
MarketMinder's View: We don’t call the market The Great Humiliator (TGH) for nothing – just when some thought all hope was lost after Friday’s big drop, the market rebounds.
Sensible Stories
By , The Wall Street Journal, 08/07/2007
MarketMinder's View: Free trade is necessary and vital to our healthy economy. Politicians intent on killing our FTA with South Korea will do exponentially more harm than good.
Sensible Stories
By , The Wall Street Journal, 08/07/2007
MarketMinder's View: Credit isn’t the only game in town – the global economy is still thriving.
Market Misperceptions
By , Time, 08/07/2007
MarketMinder's View: Believe it or not, market volatility is normal, forever and ever, world without end, amen.
Market Misperceptions
By , Financial Times, 08/07/2007
MarketMinder's View: The market should pass this test.
Market Misperceptions
By , The Telegraph, 08/07/2007
MarketMinder's View: Bull markets die with a whimper, not with a bang. This “bang” to the downside should prove short-lived.
Sensible Stories
By , The Wall Street Journal, 08/07/2007
MarketMinder's View: Tax competition continuing to heat up.
Sensible Stories
By , The Club for Growth., 08/07/2007
MarketMinder's View: A lesson in statistics for protectionist-minded politicians: Government tinkering nearly always leads to unintended consequences. Long live free trade!
Market Misperceptions
By , International Business Times, 08/07/2007
MarketMinder's View: “Few?” If our powers of deduction are correct here, almost three times as many homeowners think their home value will appreciate rather than fall next year. Homeownership does not qualify one to be a real estate market analyst anyway. Ignore.
Market Misperceptions
By , Investors.com, 08/07/2007
MarketMinder's View: The notion that higher trading volume dictates the direction of the market is provably and statistically false.
Market Misperceptions
By , Globe and Mail, 08/07/2007
MarketMinder's View: A healthy amount of nerves is a good thing for market. Euphoria makes us nervous.
Market Misperceptions
By , ABC News, 08/07/2007
MarketMinder's View: Typical sensationalist scare story—long on emotion and short on economic fundamentals.
Sensible Stories
By , ABC News, 08/07/2007
MarketMinder's View: We agree. Nothing to fret here.
Sensible Stories
By , The Economist, 08/06/2007
MarketMinder's View: Defense spending around the world should remain elevated for some time to come.
Sensible Stories
By , The Wall Street Journal, 08/06/2007
MarketMinder's View: Profile of the successes and challenges of America’s manufacturing industry.
Sensible Stories
By , Bloomberg, 08/06/2007
MarketMinder's View: Proposals utilizing free markets instead of government subsidies deserve to be voiced.
Sensible Stories
By , The Economist, 08/06/2007
MarketMinder's View: Corporate tax structure has become a bane to US competitiveness. Europe and Asia have lowered and simplified taxes consistently in recent years. Overhauling US tax rates has become a priority for the Treasury Department. Let’s hope they succeed.
Market Misperceptions
By , MSNBC.com, 08/06/2007
MarketMinder's View: If only it were so easy.
Market Misperceptions
By , The Wall Street Journal, 08/06/2007
MarketMinder's View: Folks who have been predicting declines for years feel vindicated during pullbacks. Don’t let this worry you – pullbacks and full-blown corrections are very normal and healthy for markets.
Market Misperceptions
By , Bloomberg, 08/06/2007
MarketMinder's View: We agree with the premise: employment is generally a lagging indicator of economic health. But we’re not buying the idea US consumers are tapped out—they’re cash-rich, liquid, and likely to continue spending for some time to come.
Sensible Stories
By , Financial Times, 08/06/2007
MarketMinder's View: The buyback boom continues.
Sensible Stories
By , The Wall Street Journal, 08/06/2007
MarketMinder's View: Into the fifth year of a bull market, news of Wall Street corruption is still a front page headline. Skepticism of executives and analysts is bullish. With no euphoria in sight, markets have further to climb.
Sensible Stories
By , The Wall Street Journal, 08/06/2007
MarketMinder's View: Recess or no recess, Congress won’t get anything of substance done in 2007, and likely 2008 too. A do-nothing Congress is bullish for stocks.
Sensible Stories
By , The Wall Street Journal, 08/06/2007
MarketMinder's View: Self-managed ETF portfolios and Target Funds are fraught with peril, often damaging portfolios more than they help.
Market Misperceptions
By , The Wall Street Journal, 08/06/2007
MarketMinder's View: Today’s expectation for an elongated period of bond turbulence could last all the way to… the fall! That’s just a couple months away, isn’t it? Why all the panic?
Market Misperceptions
By , Businessweek, 08/06/2007
MarketMinder's View: “Until a trend is clear, expect the market to continue to swing wildly as investors place bets on their fears, real or imagined, of a US recession.” OK, but we really have to ask… when, ever, has a trend been clear to investors? There’s always uncertainty in stock investing—especially in bull markets.
Sensible Stories
By , The Economist, 08/06/2007
MarketMinder's View: Access to credit is a wonderful thing.
Market Misperceptions
By , The Wall Street Journal, 08/06/2007
MarketMinder's View: Mind you, mortgage rates are still under historical norms. When the dust finally clears, this is more likely to be revealed as a period of softening in housing rather than a collapse.
Market Misperceptions
By , USA Today, 08/06/2007
MarketMinder's View: Move over bio-diesel and ethanol, presenting the newest energy craze…hot rocks!
Market Misperceptions
By , Financial Times, 08/03/2007
MarketMinder's View: Monthly data like this can be volatile so don’t look too much into one reading – growth remains strong.
Sensible Stories
By , The Wall Street Journal, 08/03/2007
MarketMinder's View: The distinction between those defaulting on sub-prime variable-rate and fixed-rate is an important one. The fixed-rate and prime mortgages are holding steady. This is a reason why it’s unlikely this will spill over into the prime mortgage market.
Market Misperceptions
By , Kiplinger, 08/03/2007
MarketMinder's View: Volatility is normal folks.
Sensible Stories
By , Bloomberg.com, 08/03/2007
MarketMinder's View: This serves as a good example of how to look at traditional economic measures in a new way. Times continually change and what was once sound data can easily become irrelevant. There’s only one flaw: trade deficits aren’t inherently bad….
Market Misperceptions
By , CNNMoney.com, 08/03/2007
MarketMinder's View: Talk about a headline to scare you. Aside from one overly pessimistic forecast, much of the data included in the article is fairly upbeat.
Market Misperceptions
By , Economist.com, 08/03/2007
MarketMinder's View: Default rates still remain relatively benign for the mortgage industry in aggregate and the American consumer remains strong despite the current housing woes.
Sensible Stories
By , Financial Times, 08/03/2007
MarketMinder's View: The 5.2% global economic growth forecast has not changed – not that we expected it to.
Sensible Stories
By , The Wall Street Journal, 08/03/2007
MarketMinder's View: The US economy continues to look very strong.
Market Misperceptions
By , Reuters, 08/03/2007
MarketMinder's View: Don’t get angry when you read this… or do get angry… wait, just ignore this ridiculous story.
Sensible Stories
By , Forbes.com, 08/03/2007
MarketMinder's View: A month ago people were frightened when yields hit 5.25%. Now no one is mentioning it is at 4.72%.
Sensible Stories
By , poorandstupid.com, 08/03/2007
MarketMinder's View: What, no legislation against all these other “manipulators”?
Sensible Stories
By , The New York Times, 08/02/2007
MarketMinder's View: A booming farm industry without government handouts! Decreased regulation leads to more efficiency.
Sensible Stories
By , CNNMoney.com, 08/02/2007
MarketMinder's View: Despite all the concerns about housing, 30-year mortgage rates remain extremely low.
Sensible Stories
By , Bloomberg.com, 08/02/2007
MarketMinder's View: It’s pretty simple really. “When the capital- gains rate is low, America feels like doing business. When the rate is high, the country turns its attention elsewhere.”
Sensible Stories
By , Wall Street Journal, 08/02/2007
MarketMinder's View: A history of the US capital gains tax – we yearn for the days without it.
Sensible Stories
By , Financial Times, 08/02/2007
MarketMinder's View: The global economy surges ahead.
Sensible Stories
By , The Wall Street Journal, 08/02/2007
MarketMinder's View: Government meddling in currency and trade markets is bad for the world economy. For more, see our Daily Commentary “Free Markets…Anyone? Anyone?”
Sensible Stories
By , Financial Times, 08/02/2007
MarketMinder's View: The list of inefficient government-run businesses keeps getting longer.
Market Misperceptions
By , Financial Times, 08/02/2007
MarketMinder's View: This may have been a big story thirty years ago but these automakers have very little impact on the direction of the stock market now.
Market Misperceptions
By , The Wall Street Journal, 08/02/2007
MarketMinder's View: Great! Euphoria is a bad thing for the market – a healthy dose of pessimism is positive.
Market Misperceptions
By , Morningstar.com, 08/02/2007
MarketMinder's View: What will they come up with next? Ignore.
Market Misperceptions
By , Fortune, 08/02/2007
MarketMinder's View: And only on pay-per-view this Saturday night! On a more serious note – competition to be more business friendly is a bullish sign.
Market Misperceptions
By , National Post, 08/02/2007
MarketMinder's View: You thought the flu analogy was bad. Read on for more about the sniffles, a full-blown cold and pneumonia – give us a break.
Sensible Stories
By , Financial Times, 08/01/2007
MarketMinder's View: Interesting view as to how global wealth absorbs financial stress better than ever before.
Sensible Stories
By , National Post, 08/01/2007
MarketMinder's View: Look outside the US and many housing markets continue to be very strong.
Market Misperceptions
By , Wall Street Journal (*site requires registration), 08/01/2007
MarketMinder's View: Because of one bad week in the market the “boom” is over? If you made this argument every time the market pulled back you’d miss out on every major bull market surge in history.
Market Misperceptions
By , Associated Press, 08/01/2007
MarketMinder's View: Maybe using only a short period of time – a disciplined long-term investment strategy focused on time in the market is most prudent.
Sensible Stories
By , Financial Times, 08/01/2007
MarketMinder's View: Despite the problems with a few hedge funds as a result of taking on too much risk, some see them as a bargain.
Market Misperceptions
By , The Wall Street Journal, 08/01/2007
MarketMinder's View: We saw similar oil prices a year ago and the market has been quite strong since – no need to worry about higher oil prices derailing the stock market.
Market Misperceptions
By , Wall Street Journal, 08/01/2007
MarketMinder's View: Trying to make sense of the market “from home” based on short-term moves is a fool’s game – market movement alone tells you little. Media headlines tell you less.
Sensible Stories
By , Fortune, 08/01/2007
MarketMinder's View: If one good thing comes out of high oil prices and worries about CO2 emissions, hopefully it will be the revival of America’s nuclear power – the most efficient and clean form of energy ever created.
Sensible Stories
By , The Wall Street Journal, 08/01/2007
MarketMinder's View: Let’s hope Congress heeds the advice unlike last time.
Sensible Stories
By , Financial Times, 08/01/2007
MarketMinder's View: “The world economy is strong – unusually so – and the US is not in bad shape.” Indeed.