Home → Fisher Investments MarketMinder Headlines → 08-2010 Archives

Market Misperceptions
By , Daily Finance, 08/31/2010
MarketMinder's View:
Probably not. The PIIGS have nearly all their funding for this year. And their funding needs for the next three years are covered, if necessary, by the EU/ECB/IMF bailout. Our guess is bailout funds won’t get tapped much, though, because bond auctions all over Europe (yes, even in the PIIGS nations) consistently see demand outstrip supply and monetary policy remains exceptionally easy.
Sensible Stories
By , Daily Finance, 08/31/2010
MarketMinder's View: Emerging Markets continue to lead the way in this global economic recovery.
Market Misperceptions
By , The New York Times, 08/31/2010
MarketMinder's View:
Problem banks exist in good and bad times, but more surface during and right after a recession. Other than that, the banking sector is looking healthier than it was in the past two years.
Market Misperceptions
By , Bloomberg, 08/31/2010
MarketMinder's View:
It’s perfectly nice that people feel more confident. And we think they should! But whether up or down, this is a broken, lagging indicator.
Sensible Stories
By , Daily Finance, 08/31/2010
MarketMinder's View: “This indicator has flashed multiple times during the past 20-plus years when there hasn’t been a crash.” That should end that. See our 08/26/2010 cover story, “Un-charted Territory,” for more.
Sensible Stories
By , The Wall Street Journal, 08/31/2010
MarketMinder's View: “Current and former central bankers from around the world said an uneven global economic recovery was likely to stay on track.” Likely true.
Market Misperceptions
By , EUbusiness, 08/31/2010
MarketMinder's View:
High, to be sure. But it’s simply normal for unemployment to stay high in a recovery. Growth will create jobs—jobs won’t create growth.
Market Misperceptions
By , Bloomberg, 08/31/2010
MarketMinder's View:
Sure, gold has been on a tear lately. But gold is prone to short booms and long busts. And over very long periods, its returns badly lag stocks and even bonds. See our 02/12/2010 cover story, “Gold’s Safety Blanket Myth,” for more.
Sensible Stories
By , Investment News, 08/30/2010
MarketMinder's View: The subtitle says it all: “Fear not…chart-based indicators have spotty records.”
Market Misperceptions
By , International Business Times, 08/30/2010
MarketMinder's View:
No one month is inherently more or less risky than another. Any differences in market return averages by month are the product of pure statistical quirks.
Sensible Stories
By , The Independent , 08/30/2010
MarketMinder's View: A quick and dirty rundown of some bright spots that exist around the globe.
Sensible Stories
By , The Wall Street Journal, 08/30/2010
MarketMinder's View: Despite a few bumps in the road, this recovery is still very much headed in the right direction. For more, see today’s cover story, “Wild Wyoming and Washington.”
Sensible Stories
By , The Globe and Mail, 08/30/2010
MarketMinder's View: Globally, monetary policy remains exceptionally easy.
Sensible Stories
By , The Wall Street Journal , 08/30/2010
MarketMinder's View: Despite all the fears “consumers are dead,” consumer spending is in fact growing.
Market Misperceptions
By , CNN Money, 08/30/2010
MarketMinder's View:
This is hardly surprising. Economists divided over the economy’s future is nothing new.
Market Misperceptions
By , CNN Money, 08/30/2010
MarketMinder's View: No one? We find that hard to believe. Easing credit is a great good thing.
Sensible Stories
By , Reuters, 08/27/2010
MarketMinder's View: A good example of how to read GDP. Adjustments are common, happen often, and don’t indicate the global recovery is faltering.
Sensible Stories
By , The Wall Street Journal , 08/27/2010
MarketMinder's View: And we’ll take it. Every bit of positive news matters, especially for the housing market.
Sensible Stories
By , Carpe Diem, 08/27/2010
MarketMinder's View: Friday’s GDP revision beat expectations, but even that belies the strong growth of the components therein.
Market Misperceptions
By , International Business Times, 08/27/2010
MarketMinder's View: It’s possible some government defaults at some point in the future, just as governments have for pretty much all modern history without dooming the global economy.
Market Misperceptions
By , Investor’s Business Daily, 08/27/2010
MarketMinder's View: Bottom line: debt isn’t as detrimental to economic health as most believe. Historically, some of the healthiest, strongest economies had high levels of debt. And today’s government debt is well within manageable levels.
Market Misperceptions
By , USA Today, 08/27/2010
MarketMinder's View:
Nope. Bears aren’t out to play just yet. Sure, investors are gloomy—and that’s a natural reaction to the ebbs and flows of market returns lately. But truth is, widespread pessimism provides some of the greatest buying opportunities.
Sensible Stories
By , The Wall Street Journal , 08/27/2010
MarketMinder's View: Positive news from the UK showing continued global recovery.
Sensible Stories
By , Bloomberg, 08/27/2010
MarketMinder's View: The global economic recovery has been progressing nicely, and central bankers have made it clear they’re going to do what’s necessary to keep the recovery on track.
Market Misperceptions
By , The New York Times, 08/27/2010
MarketMinder's View: It’s not? Last we checked, economic signs were pointed in that direction. Unemployment should hardly be a point of contention over why we’re experiencing the next recession. Jobs recover after the economy—always have, always will.
Market Misperceptions
By , The Wall Street Journal, 08/26/2010
MarketMinder's View: Of course he is! And he’s an interesting guy. But, as the joke goes, the Hindenburg Omen has predicted 14 of the last 3 bear markets. Please pay no attention to this blimp. For more, see today’s cover story, “Un-charted Territory.”
Sensible Stories
By , Seeking Alpha, 08/26/2010
MarketMinder's View: “Another thing this buyout process tells us is that the global economy is not as bad off as some like to think. If companies believed the economy (both US and global) were headed back to recession, they wouldn't be making buyout offers now. They'd wait until prices were lower.” Firms have major stockpiles of cash they are just beginning to deploy in myriad ways, and it’s bullish.
Market Misperceptions
By , MarketWatch, 08/26/2010
MarketMinder's View: Wait, so now the double-dippers must resort to calling 2% a recession because people feel like it’s a recession? Sorry, but 2% is still growth. Not a double dip. Not a recession. Call everything a recession by this measure. Heck, let’s say we’re in the deca-quadruple dip of the Great Recession. For more, read our 08/23/2010 cover story, “Dripping Away at the Double Dip.”
Market Misperceptions
By , Bloomberg, 08/26/2010
MarketMinder's View: OK. But he’s been wrong about the last four quarters. A heavy dose of speculation on backward- looking data shouldn’t deter investors from looking to stocks as a good investment opportunity.
Sensible Stories
By , Retuers, 08/26/2010
MarketMinder's View: Mixed, but all positive save Greece, which is hardly shocking. And this against a backdrop of a supposed Greek contagion. Overall, the eurozone is doing much better than anyone would have thought.
Market Misperceptions
By , Daily Finance, 08/26/2010
MarketMinder's View: The Fed, technically, can never, ever run out of bullets. It’s called quantitative easing, and they have been doing some of that.
Market Misperceptions
By , Daily Finance, 08/26/2010
MarketMinder's View: This is good news and a welcome relief. But don’t put too much stock in this. Employment numbers are normally volatile. We may get some improvement, then we may retreat a bit. But no matter how headlines paint this, growth creates jobs, not the other way around. It would be irrational for CEOs to hire in advance of a clear, sustained pickup in sales. Plus, productivity gains make hiring lag recovery even more.
Sensible Stories
By , Seeking Alpha, 08/26/2010
MarketMinder's View: Think a double dip is pre-ordained? Try taking a more measured view. Here are measurable statistics further supporting the case for an ongoing global recovery.
Market Misperceptions
By , The New York Times, 08/25/2010
MarketMinder's View:
Why anyone pays attention to the rating agencies (a.k.a. government mandated oligopolies) is beyond us. Also, note “that Ireland’s debt-raising [is] 99 percent complete for the year, and the Treasury is fully funded into the second quarter of next year.”
Sensible Stories
By , MSNBC, 08/25/2010
MarketMinder's View: Here’s something rare in the headlines of late: positive employment news.
Sensible Stories
By , Reuters, 08/25/2010
MarketMinder's View: The accrued cost of buying insurance against low-probability events usually outweighs the payoff (if there even is one)—that’s precisely what keeps insurers in business! Not a great long-term investing strategy.
Sensible Stories
By , Associated Press, 08/25/2010
MarketMinder's View: EU Monetary Affairs Commissioner Ollie Rehn offers a sensible (and unthinkable for many just months ago) assessment of the European economy: "A robust recovery is under way."
Market Misperceptions
By , CNBC, 08/25/2010
MarketMinder's View:
The current US economic situation is wildly different than the 1930s. For more, see our 07/02/2010 column, “Depression Economics II.”
Market Misperceptions
By , Seeking Alpha, 08/25/2010
MarketMinder's View:
This popular comparison is misguided. The US rapidly unleashed massive monetary and fiscal stimulus—Japan dawdled through the ‘90s. We don’t have deflation, just the fear of it. And there’s no need to wait—we’ve got a “real” recovery now,
Market Misperceptions
By , Associated Press, 08/25/2010
MarketMinder's View:
Japanese exports were up 23.5% in July from a year earlier! Sure, export growth is moderating—but from a record pace. This is fine news, not a sign of impending doom.
Market Misperceptions
By , The Wall Street Journal , 08/25/2010
MarketMinder's View:
July housing data disappointed—but unless the larger fundamental drivers powering growth reverse course, weak housing data likely won’t endanger the recovery. For more, see today’s cover story, “Distorted Housing’s a Drag.”
Sensible Stories
By , Taiwan News, 08/25/2010
MarketMinder's View: Unimaginable a few years ago, Taiwan and China are seeking to expand a recently signed free-trade agreement. In fact, free trade is on the up and up in Asia generally and elsewhere around the globe.
Sensible Stories
By , The Wall Street Journal , 08/25/2010
MarketMinder's View: Burgeoning consumer demand in Emerging Markets, some of it powered by recent government stimulus, should continue to help fuel the global recovery.
Sensible Stories
By , The Wall Street Journal , 08/25/2010
MarketMinder's View: Germany is leading the European recovery, “defying recent indications of a global slowdown.” For more, see our 08/16/2010 cover story, “Prost!”
Sensible Stories
By , The Motley Fool, 08/24/2010
MarketMinder's View: Despite what naysayers say, we still have a lot going for us here in the US—and that looks to continue for some time yet.
Sensible Stories
By , US News, 08/24/2010
MarketMinder's View: Bonds have a place in some investors’ portfolios, but, historically, stocks have consistently been a better bet than bonds for long-term investors. See our 08/19/2010 cover story, “Getting a Grip on Bonds,” for more.
Sensible Stories
By , The New York Times, 08/24/2010
MarketMinder's View: Companies are sitting on high stockpiles of cash—historically a good predictor of business spending. For more, see our 06/14/2010 cover story, “Cashlandia.”
Market Misperceptions
By , NPR, 08/24/2010
MarketMinder's View:
GDP growth falling from 12% y/y to 10.3% in one quarter isn’t much of a slowdown.
Sensible Stories
By , The Australian, 08/24/2010
MarketMinder's View: The global economy should benefit as Chinese and Emerging Markets’ appetites for steel and other building materials continue to grow.
Market Misperceptions
By , Associated Press, 08/24/2010
MarketMinder's View:
Despite what we read in headlines all the time, real estate doesn’t dictate where the economy or stocks are headed. Yes, real estate played a role in the financial panic, but there are a lot of positives happening in the economy outside of real estate.
Market Misperceptions
By , Bloomberg, 08/24/2010
MarketMinder's View:
European economic growth has been much better than expected recently, likely reducing the severity of austerity measures. See our 08/23/2010 cover story, “Dripping Away at the Double Dip,” for more.
Market Misperceptions
By , The Independent, 08/24/2010
MarketMinder's View:
Outside of housing (a small part of the overall economy) and employment (always a lagging economic indicator), the US economy is looking pretty darn good. Trade is up, manufacturing activity is up, corporate revenues and profits are up. The list of positives goes on and on.
Sensible Stories
By , Kiplinger, 08/24/2010
MarketMinder's View: Biases are bad in investing—period. The more investors can eliminate biases, the better investors they can become.
Sensible Stories
By , Seeking Alpha, 08/23/2010
MarketMinder's View: “It is no surprise that the fastest growing economies are in the Emerging Markets.” And that’s translated into strong returns for emerging markets stocks since this bull market began. The economies and stocks of a particular country or region don’t always move in lockstep, but strong economic strength in emerging markets should bode well for shares there.
Market Misperceptions
By , Guardian , 08/23/2010
MarketMinder's View:
Last time we checked the US economy was, um, recovering. Sure, every nation has its problems, but they’re a very normal part of any economy and not likely to derail the current recovery.
Market Misperceptions
By , The Wall Street Journal , 08/23/2010
MarketMinder's View:
How much credibility do the ratings agencies really have at this point? Not much in our view. Bond prices and the resulting yields are a better indicator of default risk.
Market Misperceptions
By , The New York Times, 08/23/2010
MarketMinder's View:
This isn’t all that surprising. Unfortunately, individual investors have a bad habit of selling stocks when they should be buying and vice versa. See our 02/24/2010 column, “Don’t Go With the (Fund) Flow,” for more.
Sensible Stories
By , The Sydney Morning Herald, 08/23/2010
MarketMinder's View: While Australia hasn’t seen a hung parliament in 70 years, this is a very normal phenomenon around the world and shouldn’t rattle markets. Indeed, markets often cheer the resulting gridlock.
Market Misperceptions
By , Telegraph, 08/23/2010
MarketMinder's View:
“The euro crisis has not gone away. It has merely been masked by other factors. It is still brewing away, ready to re-emerge.” Nonsense. Recent PIIGS debt sales have gone off without much of a hitch at unspectacular rates. And the PIIGS have virtually all their funding needs covered for the rest of the year without tapping the EU/IMF/ECB aid package (except Greece). For more, see our 06/08/2010 cover story, “We’re Okay, Euro Okay.”
Sensible Stories
By , Carpe Diem, 08/23/2010
MarketMinder's View: Turns out a little uncertainty and gridlock just so happens to be positive for returns. This isn’t surprising to us.
Market Misperceptions
By , Daily Finance, 08/23/2010
MarketMinder's View:
“The market has the emergency brake on [until the elections] and the long-term investors have fled the market.” We highly doubt this—long-term investors know the markets ebb and flow and to reap the benefits, it’s best to stay in and weather these minor blips.
Sensible Stories
By , Daily Finance, 08/23/2010
MarketMinder's View: M&A is alive and well. This is a good thing for stocks and the general health of the overall economy. For more, see our 08/20/2010 cover story, “It’s Not Always Sunny in Philadelphia.”
Market Misperceptions
By , Telegraph, 08/20/2010
MarketMinder's View:
Actually, it’s fading away quite steadily. Greece’s austerity measures have had encouraging results, which is why the EU agreed to lend it more money. See our 08/06/2010 cover story, “Hermes Delivers,” for more.
Market Misperceptions
By , Reuters , 08/20/2010
MarketMinder's View:
This CBO forecast is based on backward-looking economic indicators. Ignore.
Sensible Stories
By , The Wall Street Journal , 08/20/2010
MarketMinder's View: Cash- and debt-based buyouts reduce stock supply, which is a bullish force. Plus, that companies are making purchases underscores companies are in strong positions and sitting on large cash hoards waiting to be spent.
Sensible Stories
By , Carpe Diem, 08/20/2010
MarketMinder's View: It’s Warren Buffett’s favorite economic indicator for good reason: Higher rail volume means shipping is up, which means orders are up, which means sales are up, which means manufacturing will be up, and … well, you get the idea.
Market Misperceptions
By , Reuters, 08/20/2010
MarketMinder's View:
Well, yes. But when has economic (and jobs) recovery ever been consistent? Some states recover faster, some slower—what matters is recovery is happening overall.
Sensible Stories
By , The Wall Street Journal, 08/20/2010
MarketMinder's View: Emerging Markets continue to chug upwards, pulling the global economy along.
Sensible Stories
By , Slate, 08/20/2010
MarketMinder's View: Here’s a well-written piece highlighting differences between the US and Japan. Simply, there’s far more differences than similarities, and the US is in far better shape than Japan was at the start of its so-called “Lost Decade.”
Sensible Stories
By , Seeking Alpha, 08/19/2010
MarketMinder's View: Depends on your personal situation. But over the long haul, stocks outperform bonds—consistently. For more, see today’s cover story, “Getting a Grip on Bonds.”
Market Misperceptions
By , MarketWatch, 08/19/2010
MarketMinder's View: The great lagging indicator strikes fear yet again. An improving economy will eventually lead to employment improvement, not the other way around.  For more, see our 08/05/2010 cover story, “A Watched Pot Still Boils.”
Sensible Stories
By , AFP, 08/19/2010
MarketMinder's View: Despite the title, a very sensible view on why US regulatory brouhaha and sentiment stymied the market earlier this year. No matter how you feel about the legislation, what’s likely to pass has passed. That means less uncertainty going forward—a good thing for stocks.
Market Misperceptions
By , MarketWatch, 08/19/2010
MarketMinder's View: Gold buzz is heating up again, but we prefer stocks for the long haul. For more, see our 02/12/2010 cover story, “Gold’s Safety Blanket Myth.”
Market Misperceptions
By , Bloomberg, 08/19/2010
MarketMinder's View: The budget deficit is admittedly huge, but that’s the result of  lower tax receipts coming out of recession and stimulus spending. An improving economy will increase tax receipts and stimulus spending won’t go on forever, so don’t expect this level of deficit to persist in perpetuity. For more, see our 06/10/2010 cover story, “Debunking Debt Concerns.” 
Sensible Stories
By , USA Today, 08/19/2010
MarketMinder's View: Yes, yes, yes! Historically, capital spending is a solid predictor of employment growth. For more, see our 08/13/2010 cover story, “Employment on Capital Spending’s Heels.”
Sensible Stories
By , Associated Press, 08/19/2010
MarketMinder's View: “The Office for National Statistics reported that retail sales volumes rose 1.1 percent in July, the strongest gain since February and well above the average 0.4 percent forecast by economists.” Good news from across the pond.
Market Misperceptions
By , Telegraph, 08/18/2010
MarketMinder's View:
More meaningless pessimism from the rating agencies.  According to Moody’s, sovereign nations like the US, UK, Germany, France, and Spain that "fail to demonstrate the level of social cohesion required to stabilize debt" will lose their AAA rating. Luckily, the ratings doled out by Moody’s and their ilk are mostly meaningless!
Sensible Stories
By , The Motley Fool, 08/18/2010
MarketMinder's View: US “large caps are cheap not only by stand-alone metrics like P/E ratios, but relative to bonds.” We couldn’t have said it better ourselves.
Market Misperceptions
By , The Wall Street Journal , 08/18/2010
MarketMinder's View:
Be wary of dour headlines. Malaysian GDP grew 8.9% in the second quarter—slightly less than the 10.1% blistering pace of expansion in Q1—hardly a sign for concern. For more, see our 08/11/2010 cover story, “Hungry Bears.”
Market Misperceptions
By , Associated Press, 08/18/2010
MarketMinder's View:
Economic activity—like increased manufacturing—leads job creation. As cash-rich US firms increase capital spending, job creation typically follows. For more, see our 08/13/2010 cover story, “Employment on Capital Spending’s Heels.” 
Sensible Stories
By , The Wall Street Journal , 08/18/2010
MarketMinder's View: Important US manufacturing sectors, including aircraft, appliances, and chemicals, posted gains in July—signaling worries about slowing growth and lack of demand are likely overblown.
Sensible Stories
By , Bloomberg, 08/18/2010
MarketMinder's View: Global trade is booming. In Emerging Markets (like India) demand is so strong automakers are running out of parts—very bullish for global stocks. For more, see our 08/10/2010 cover story, “Got It Made With Global Trade.”
Sensible Stories
By , The Wall Street Journal , 08/18/2010
MarketMinder's View: We agree wholeheartedly—stocks have a greater ability to outperform bonds. However, investors should seek out a well-diversified global portfolio, not just “stocks paying high dividends.”
Sensible Stories
By , The Wall Street Journal , 08/18/2010
MarketMinder's View: Germany, and the German consumer, continue to be a bright spot in the eurozone recovery.
Market Misperceptions
By , The Street , 08/18/2010
MarketMinder's View:
Kaput? Maybe, but not quite yet. Tuesday’s conference on Fannie and Freddie hardly produced anything of substance. For more, see today’s cover story, “Fruitlessly Fearful.”
Sensible Stories
By , BusinessWeek, 08/18/2010
MarketMinder's View: The Brazilian central bank is, not surprisingly, predicting accelerating GDP growth for this global economic hotspot.
Market Misperceptions
By , Bloomberg, 08/18/2010
MarketMinder's View:
China may be diversifying its debt holdings, but fear not. Despite diversifying its debt holdings and loosening the Yuan peg to the dollar, China isn’t abandoning US debt anytime soon. For more, see our 07/08/2010 cover story, “Still a Yuan for US Debt.”
Sensible Stories
By , CNN Money, 08/17/2010
MarketMinder's View: As the credit market eases, small business bank lending is starting to improve.
Sensible Stories
By , Bloomberg via Investment News, 08/17/2010
MarketMinder's View: We have thought so all along. But certainly, dour sentiment extremes are typically a great time to get in if you’ve been on the sidelines.
Sensible Stories
By , The Wall Street Journal, 08/17/2010
MarketMinder's View: Honestly, where is all this deflation people keep talking about? In the UK, consumer prices were positive. What’s more, dreaded hyperinflation is nowhere to be seen.
Market Misperceptions
By , Bloomberg, 08/17/2010
MarketMinder's View:
The recovery is doomed because the euro is weak? Nonsense. Since when did stocks require a strong euro to rise? Plus, the EMU overall is doing just fine, thanks. Greece’s woes have failed to pull its neighbors down. For more, see our 08/16/2010 cover story, “Prost!”
Sensible Stories
By , Bloomberg, 08/17/2010
MarketMinder's View: US production increases—still more evidence the ongoing recovery is on fine footing.
Sensible Stories
By , MarketWatch, 08/17/2010
MarketMinder's View: Once again, fears the world will “abandon” US debt securities are unfounded.
Market Misperceptions
By , Daily Finance, 08/17/2010
MarketMinder's View:
Yep, the growth rate slowed a bit in Q2 (but was still positive). But why is everyone suddenly thinking the past is predictive of the future? For more, see our 08/11/2010 cover story, “Hungry Bears.”
Market Misperceptions
By , CNN Money, 08/17/2010
MarketMinder's View:
“Bonds just don't have the same ‘ugly’ downside as stocks.” Au contraire. Bonds can and do lose value—like in 2009 when Treasuries fell 9% while stocks soared! True, bonds have less near-term volatility, but long term, their returns pale in comparison with stocks.
Market Misperceptions
By , The Wall Street Journal, 08/17/2010
MarketMinder's View:
This is just the same old “consumers are dead” story heard after every recession. And after every recession, the story is just plain wrong. For more, see our 06/29/2010 cover story, “The Consumer Lives!”
Sensible Stories
By , USA Today, 08/16/2010
MarketMinder's View: Volatility is a fact of life. You can’t avoid it in investing. That said, Emerging Markets still look poised to continue their strong growth, which should translate to higher stock prices overall. A well-diversified global portfolio would do well to include some EM stocks.
Market Misperceptions
By , International Business Times , 08/16/2010
MarketMinder's View:
Sure, there may be disparity among countries within a continent, but this doesn’t discount the fact eurozone Q2 GDP came in significantly higher than expected. For more, read our 08/16/2010 cover story, “Prost!”
Sensible Stories
By , BBC News, 08/16/2010
MarketMinder's View: More evidence deflation isn’t taking hold. Moreover, inflation remains quite tame—very positive.
Market Misperceptions
By , The Sydney Morning Herald, 08/16/2010
MarketMinder's View:
They’ve been buying a lot of European bonds, but they still buy a whole lot of US bonds. There’s nothing alarming about a nation diversifying its reserves a bit.
Market Misperceptions
By , The Wall Street Journal, 08/16/2010
MarketMinder's View:
This is mostly bemoaning unemployment, which frequent MarketMinder readers will know is a classic lagging indicator. Unemployment should and will remain high even after an economic recovery is well underway. That’s normal and not a precursor to doom.
Sensible Stories
By , Bloomberg via BusinessWeek, 08/16/2010
MarketMinder's View: Once again, fears of the world dumping US debt are unfounded.
Sensible Stories
By , USA Today, 08/16/2010
MarketMinder's View: Due to Japan’s weaker economic figures of late, China is set to overtake Japan and stake its claim as the world’s second largest economy.
Market Misperceptions
By , The New York Times, 08/13/2010
MarketMinder's View: Jeez, Louise. We’d hardly call what has happened at the Fed over the last 18 months “paralysis.” They met the slowing economy and credit freeze with a historically massive wall of stimulus. This was the opposite of what was done in Japan. A little fact-checking, please. For more, see our 08/11/2010 cover story, “Hungry Bears.”
Sensible Stories
By , The Washington Post, 08/13/2010
MarketMinder's View: “As economic growth has broadened and quickened in recent decades, world-class manufacturing companies have emerged from many countries.” Manufacturing continues to shine during this recovery. For more, see our 08/03/2010 cover story, “Fuzzy Manufacturing Math.”
Market Misperceptions
By , Daily Finance, 08/13/2010
MarketMinder's View: Shouldn’t we wait for all the current stimulus to be fully disbursed before we go pumping more into the economy? A multi-billion dollar stimulus takes time to trickle down and takes even longer to feel the effects. Be patient.
Sensible Stories
By , The Wall Street Journal, 08/13/2010
MarketMinder's View: While we’re not getting down on the recovery, we do agree less is more when it comes to unnecessary government intervention.
Market Misperceptions
By , The Wall Street Journal, 08/13/2010
MarketMinder's View: People are too bullish? Who are these people? And the Fed is nervous? How can the Fed be nervous? It’s an institution, not a person. Institutions aren’t nervous. And why is Labor Day inherently problematic? And gridlock is a great good terrific fabulous bullish thing. Just disregard all this.
Sensible Stories
By , The New York Times, 08/13/2010
MarketMinder's View: An excellent anecdote reminding us that 1) derivatives in and of themselves aren’t evil, and 2) even the best intentioned legislation typically results in unintended consequences.
Market Misperceptions
By , 24/7 Wall St, 08/13/2010
MarketMinder's View: To be clear, a recession isn’t when people report in a poll that it feels like a recession. A recession is, generally, when the economy shrinks. The economy is not and has not been shrinking. People are just gloomy, which is natural following a recession, but doesn’t portend a future recession. 
Market Misperceptions
By , The Street, 08/13/2010
MarketMinder's View: Another problem with definitions. Prices broadly rose in July. Rose! Rising prices aren’t deflation. Deflation is broadly falling prices, and that seems unlikely thanks to the massive monetary stimulus the world’s central banks unleashed over the last 18 months.
Sensible Stories
By , Bloomberg, 08/13/2010
MarketMinder's View: A stabilizing sign for the economy—one of the largest factors in the US economy is gaining confidence, nothing to scoff at.
Sensible Stories
By , The Wall Street Journal, 08/13/2010
MarketMinder's View: Full steam ahead. The eurozone is growing at a pace unseen in four years, with Germany leading the way.
Market Misperceptions
By , Fortune, 08/12/2010
MarketMinder's View: Answer:  Nope.  The economy is not contracting—it’s still expanding, albeit at a slower rate than the quick bounce off the bottom. For more, see our 08/11/2010 cover story, “Hungry Bears.”
Market Misperceptions
By , Associated Press, 08/12/2010
MarketMinder's View: Folks wrongly focus on the trade deficit when they should focus on the total amount of global trade—which is increasing! For more, see today’s cover story, “Trading Up.”
Sensible Stories
By , MSN Money, 08/12/2010
MarketMinder's View: Not likely. “Executives are starting to realize that pinching pennies won't work anymore. Increased investment is required to grow revenue and maintain profitability” Yep. Firms are sitting on historically massive stockpiles of cash, and the deployment of that cash should be very bullish. For more, see our 06/14/2010 cover story, “Cashlandia.”
Market Misperceptions
By , The New York Times, 08/12/2010
MarketMinder's View: We see no reason why strong earnings in Asia (and elsewhere) can’t continue. Further, this article doesn’t provide any evidence to the contrary.
Sensible Stories
By , Telegraph, 08/12/2010
MarketMinder's View: Well, yes. Greece isn’t in terrific economic shape, and austerity in the near term likely will have some negative impacts. However, particularly for nations in the fiscal state Greece is in, austerity can have longer-term structural benefits stemming from increased privatization and a reduction in the size of government—it’s a marathon, not a sprint. See our 08/06/2010 cover story, “Hermes Delivers,” for more.
Market Misperceptions
By , CNN Money, 08/12/2010
MarketMinder's View: Companies are cash-rich and investing in new equipment and making other capital expenditures, so increasing staffing should be just around the corner. For more, see our 08/09/2010 cover story, “Titus Maccius Plautus on US Unemployment.”
Sensible Stories
By , Carpe Diem, 08/12/2010
MarketMinder's View: Yes! The correct way to think about global trade! Focusing on net exports is simply wonky. We benefit in myriad ways from importing goods others make more cheaply and efficiently. Plus, increased imports is a sign of economic vibrance!
Market Misperceptions
By , The New York Times, 08/11/2010
MarketMinder's View:
When it comes to Chinese economic data, the pundits seem to think it’s either too hot or too cold. For now, we think the Chinese economy is doing just fine. For more, see our 07/12/2010 cover story, “The Long March.”
Market Misperceptions
By , The Wall Street Journal , 08/11/2010
MarketMinder's View:
The buzz words du jour from the Fed on the state of the recovery are "more modest." While some economic indicators might be “more modest” than expected, the recovery is simply easing off the initial surge—not contracting. For more, see today’s cover story, “Hungry Bears.”
Market Misperceptions
By , Bloomberg, 08/11/2010
MarketMinder's View: We agree the tax, health care, retirement, and financial systems could benefit from some simplification, but saying the US is “worse off than Greece” is utterly-wrongheaded.
Sensible Stories
By , Fortune, 08/11/2010
MarketMinder's View: While bank regulators may be “at the top of the list of people struggling to figure out how to downgrade the credit rating agencies”—we’re struggling to figure out why anyone pays attention to ratings agencies in the first place.
Sensible Stories
By , MarketWatch, 08/11/2010
MarketMinder's View: Despite slightly missing expectations, the Russian economy participated in the global recovery by expanding 5.2% in the second quarter. Pozdravlyayu comrades!
Market Misperceptions
By , Reuters, 08/11/2010
MarketMinder's View:
Well, fine. China is free to buy anyone’s debt, and they do! They just happen to buy lots more of America’s debt because no nation can match our credit markets for depth and security. Japanese debt safer than US debt? Simply not true. US debt is the global gold standard, and will be for the foreseeable future. For more, see our 07/08/2010 cover story, “Still a Yuan for US Debt.”
Market Misperceptions
By , The Wall Street Journal, 08/11/2010
MarketMinder's View:
Our recommendation is to ignore any economic analysis that includes a berating of anyone who likes cupcakes. What is so wrong with cupcakes? They’re tasty.
Sensible Stories
By , RTT News, 08/11/2010
MarketMinder's View: More encouraging economic news from Brazil. For more, see our 06/11/2010 cover story, “Improvements for the Average Joao.”
Sensible Stories
By , EU Business, 08/11/2010
MarketMinder's View: Austerity measures appear on track in Greece. Financial housekeeping isn’t fun, but the overall benefits of the austerity measures will outweigh any short-term discomfort. For more, see our 07/21/2010 cover story, “Dear Prudence.”
Market Misperceptions
By , Reuters, 08/10/2010
MarketMinder's View:
As the article itself admits, a lot can change between now and two years from now. Long-term economic forecasts are a dime a dozen—and often prove to be worth far less.
Market Misperceptions
By , The Street, 08/10/2010
MarketMinder's View:
Tax dollars simply cannot sustainably support the economy—you need private businesses for that. Firms are lean and mean, profitable, and cash-rich once again. Next, they’ll start hiring.
Sensible Stories
By , The Wall Street Journal, 08/10/2010
MarketMinder's View: One of the best articles we’ve seen in awhile explaining why bullishness makes more sense than bearishness now.
Market Misperceptions
By , Daily Finance, 08/10/2010
MarketMinder's View:
Booming trade is a key pillar to economic growth, but don’t forget imports. It’s total global trade that counts. See today’s cover story, “Got It Made With Global Trade,” for more.
Sensible Stories
By , The Australian, 08/10/2010
MarketMinder's View: Long-term performance is all about fundamentals—the market’s short-term vagaries, which technical analysis attempts to capitalize on, are mostly random and unpredictable.
Market Misperceptions
By , The Australian, 08/10/2010
MarketMinder's View:
July imports were up 22.7% y/y versus a huge 34.1% increase in June. Slower? Sure. Grinding to a halt? Hardly. Plus, China’s 38.1% y/y export growth shows healthy global demand. 
Sensible Stories
By , Time, 08/10/2010
MarketMinder's View: As we thought might happen, recent European debt fears now appear overblown. See our 07/15/2010 cover story, “On PIIGS and Needles,” for more.
Sensible Stories
By , The Wall Street Journal, 08/10/2010
MarketMinder's View: The Fed will keep the system liquid by reinvesting proceeds from expired mortgage-backed securities into longer-term US Treasuries. And just how lethal were all those “toxic assets”? Rather than blow up the Fed’s balance sheet, they matured.
Market Misperceptions
By , CNN Money, 08/09/2010
MarketMinder's View: “It's time to put to bed this silly notion that the still weak labor market is nothing to worry about because jobs are a lagging economic indicator.” Nothing is silly about the facts. Historically, the economy recovers, then the job market. If that weren’t the case, every increase in unemployment would result in a never-ending downward economic spiral. For more, see today’s cover story, “Titus Maccius Plautus on US Unemployment.”
Market Misperceptions
By , The Wall Street Journal, 08/09/2010
MarketMinder's View:
Let’s not forget the economy is expanding. Nominal US GDP reached an all-time high in Q2. We’re in no need of a “Hail Mary” yet.
Sensible Stories
By , Investment News, 08/09/2010
MarketMinder's View: As more companies continue to report strong profits, the market recovery proves it has the legs to stand on. For more, see our 07/23/2010 cover story, “Earnings to Fly.”
Sensible Stories
By , Telegraph, 08/09/2010
MarketMinder's View: This is an important lesson to remember. Investors shouldn’t be so quick to pull the trigger over typical stock market volatility—focus on the long term.
Sensible Stories
By , Daily Finance, 08/09/2010
MarketMinder's View: “Investors are afflicted in these uncertain times with a common malady: Obsessive impatience.” The world is never perfectly pristine. Investors awaiting a flawless investing environment will be waiting forever. Literally.
Market Misperceptions
By , CNN Money, 08/09/2010
MarketMinder's View: Not officially, according to NBER. But the official end is never declared until well after recovery is evident. Virtually all US economic measures have shown significant improvement over the past year. Unemployment is the big exception—about flat from a year ago—but it’s consistently a lagging indicator.
Sensible Stories
By , Telegraph, 08/09/2010
MarketMinder's View: Global trade thrives—a positive sign for the overall economy.
Market Misperceptions
By , Seeking Alpha, 08/09/2010
MarketMinder's View: Maybe. Maybe not. Currencies fluctuate constantly. But exchange rate changes matter little for stocks.
Sensible Stories
By , RTT News, 08/06/2010
MarketMinder's View: Spain, one of the troubled PIIGS in headlines lately, looks to be on the road to recovery.
Sensible Stories
By , The Wall Street Journal, 08/06/2010
MarketMinder's View: Despite doubts, Greece has successfully implemented its austerity plan so far and passed IMF/EU reviews, who determined the country is eligible to receive further aid. See today’s cover story, “Hermes Delivers,” for more.
Sensible Stories
By , The New York Times, 08/06/2010
MarketMinder's View: More evidence an investor’s worst enemy is himself (or herself, to be fair). “The reality is investing successfully is hard.”
Sensible Stories
By , The Motley Fool, 08/06/2010
MarketMinder's View: “Many second-quarter reports are showing strong signs that companies are willing to spend again.” And once they do, expect to see a huge boost in the pace of global economic recovery. See our 08/04/2010 cover story, “Cash Is Cheap,” for more.
Market Misperceptions
By , Daily Finance, 08/06/2010
MarketMinder's View: Simple fact: Unemployment recovers well after stocks and the economy do. The good news is private sector jobs were added—albeit slowly, but that’s still a positive, not a negative. Employers will start hiring in earnest once the economic recovery is on firmer ground.
Market Misperceptions
By , The Wall Street Journal, 08/06/2010
MarketMinder's View:
Since when is an overall positive GDP reading been considered a slowdown?
Market Misperceptions
By , Slate, 08/06/2010
MarketMinder's View: We find this whole premise to be a bit puzzling. Of course central banks have the tools to battle deflation. We just witnessed it! A global wall of monetary stimulus aimed at counteracting slowing velocity.
Market Misperceptions
By , The Washington Times, 08/06/2010
MarketMinder's View: We’d be the last to ever defend the actions of Congress, but as a nation, we’re nowhere near default. Plus, this is utterly the wrong way to consider debt. The proper way is “net debt”—debt held by the public. And that amount is much lower.
Sensible Stories
By , International Business Times, 08/06/2010
MarketMinder's View: More proof economic recovery is underway in the UK.
Market Misperceptions
By , Slate, 08/05/2010
MarketMinder's View: Businesses are going to make business decisions that are in their best interests. That’s how capitalism works and is ultimately good for the economy. Wage increases or other employee benefits that don’t make good business sense might provide a short-term boost for some, but end up as long-term problems.
Market Misperceptions
By , USA Today, 08/05/2010
MarketMinder's View: Despite the tone of this title, gains are positive. Of course everyone prefers “robust” vs. “modest”—but we’ll take gains any day of the week. 
Sensible Stories
By , Bloomberg, 08/05/2010
MarketMinder's View: “Greece has shown ‘great progress’ in implementing austerity measures to cut the European Union’s second-biggest budget gap and should qualify for a 9 billion-euro ($11.8 billion) installment of emergency loans.” Greek austerity measures are proceeding as planned, greatly reducing any chance (already very slim in our view) of default.
Market Misperceptions
By , Bloomberg, 08/05/2010
MarketMinder's View: Employment (or unemployment) is a hot-button topic and conflicting figures—today’s increase in initial claims vs. yesterday’s increase in payroll enrollment, for example—tend to churn sentiment. No matter how you slice it, backward-looking employment data don’t tell much about where the economy or stocks are headed. For more, see today’s cover story, “A Watched Pot Still Boils.”
Market Misperceptions
By , Daily Finance, 08/05/2010
MarketMinder's View: The author should check his own data. Despite supposedly falling savings in Japan, Japanese government bonds have near-record low yields. Japan’s savers aren’t the only source of demand for Japanese government debt.
Sensible Stories
By , Bloomberg, 08/05/2010
MarketMinder's View: It wasn’t long ago Argentina—South America’s second largest economy—was restructuring its debt. Now, a booming economy has greatly improved this Emerging Market’s prospects. For more, see our 01/19/2010 cover story, “A Race We All Win.”
Market Misperceptions
By , Telegraph, 08/05/2010
MarketMinder's View: Now, how exactly do they calculate the 25% chance alluded to? Is that high? What are the chances usually? Surely they’re never zero. There are always risks facing the economy and stock market, but there are also forces driving both higher. We believe the positive forces currently have a distinct upper hand.
Sensible Stories
By , Reuters, 08/05/2010
MarketMinder's View: The housing market still faces challenges, but record low mortgage rates undoubtedly help.
Sensible Stories
By , Reuters, 08/05/2010
MarketMinder's View: “The fact that hiring is more robust than a year ago points to a general improvement in the nation's hiring conditions as the economy continues its slow but steady recovery." Enough said.
Market Misperceptions
By , MarketWatch , 08/04/2010
MarketMinder's View:
Does American companies “out in the bond market borrowing as fast as they can” sound odd to us? Not at all. Borrowing rates are exceptionally low for highly rated companies, and opportunities to use profitably borrowed funds abound. For more, see today’s cover story, “Cash Is Cheap.”
Sensible Stories
By , The Motley Fool, 08/04/2010
MarketMinder's View: Yes, they can! For more, see our 07/23/2010 cover story, “Earnings to Fly.”
Market Misperceptions
By , The Independent , 08/04/2010
MarketMinder's View:
The UK Markit/CIPS services PMI expanded in July—EXPANDED—just not as much as in June. How does expansion portend a double dip?
Market Misperceptions
By , Telegraph , 08/04/2010
MarketMinder's View:
We don’t agree with all the conclusions here or the liberal use of the overused term “bubble.” But there is certainly one thing we can agree upon: “The political elites cannot seem to understand what has happened.”
Sensible Stories
By , International Business Times, 08/04/2010
MarketMinder's View: You wouldn’t know it from the recent dour headlines, but the ISM’s services PMI logged its seventh consecutive month of expansion.
Sensible Stories
By , The Wall Street Journal , 08/04/2010
MarketMinder's View: While the labor market is by no means recovered, small businesses hired more workers than expected in July.
Sensible Stories
By , Daily Finance, 08/04/2010
MarketMinder's View: “The market hates uncertainty.” We couldn’t have said it better ourselves.
Sensible Stories
By , CNN Money, 08/04/2010
MarketMinder's View: The economically sensitive travel industry is posting strong earnings—looks like consumers are spending after all. For more, see our 06/29/2010 cover story, “The Consumer Lives!”
Market Misperceptions
By , The Street , 08/04/2010
MarketMinder's View:
A clever ways to report positive employment news as bad. The “layoff gallery” is particularly creative. It’s no secret employment is lagging improvement in the overall economy—it always does.
Market Misperceptions
By , CNN Money, 08/03/2010
MarketMinder's View:
Nope, it sure isn’t. And you know what happens when it ends? Businesses will spend hoarded cash with positive economic effects. For more, see our 06/14/2010 cover story, “Cashlandia.”
Market Misperceptions
By , Associated Press , 08/03/2010
MarketMinder's View:
Consumer spending is a large component of the total economy, but it’s important to remember it fluctuates less than commonly thought, didn’t drive the recession, and isn’t leading the recovery. Look to business spending for that.
Market Misperceptions
By , The Wall Street Journal, 08/03/2010
MarketMinder's View:
Europe’s underlying long-term issues aren’t solved, but the ship’s not sinking yet—the bailout bought them time to address problems. And even worst-case scenarios are better than expected for European banks. For more, see our 07/27/2010 cover story, “European Stress Management.”
Market Misperceptions
By , The American, 08/03/2010
MarketMinder's View:
Since when were US states and municipalities the same as sovereign countries? It’s true some states are saddled with debt currently, but comparing California to Greece is misguided.  
Sensible Stories
By , Forbes, 08/03/2010
MarketMinder's View: We agree. Imports knocked the headline number back a good notch. But imports represent domestic demand and resurgent trade, both great signs. Otherwise, every other component grew.
Sensible Stories
By , Investor’s Business Daily, 08/03/2010
MarketMinder's View: Manufacturing appears a little less vigorous at the moment, but it continues to shine brighter than previously forecasted. For more, see today’s cover story, “Fuzzy Manufacturing Math.”
Sensible Stories
By , RTT News, 08/03/2010
MarketMinder's View: Inflation remains benign in the world’s biggest economies.
Sensible Stories
By , Reuters, 08/02/2010
MarketMinder's View: Manufacturing has been a particularly bright spot during the economic recovery.
Market Misperceptions
By , The New York Times, 08/02/2010
MarketMinder's View:
Jobs are one of the last things to turn around. This certainly doesn’t mean a high unemployment rate is just being accepted these days and will turn into a permanent economic situation.
Market Misperceptions
By , Guardian, 08/02/2010
MarketMinder's View:
A one-month slowdown in UK manufacturing exports doesn’t indicate significant slowdown overall. Even if it did, global trade is still booming. The UK’s loss might be another country’s gain. Remember to think globally first.
Sensible Stories
By , Bloomberg, 08/02/2010
MarketMinder's View: “Construction spending in the US unexpectedly increased in June, boosted by gains in government programs that made up for declines in private residential and commercial projects.”
Sensible Stories
By , The Wall Street Journal , 08/02/2010
MarketMinder's View: Firms hoarded massive amounts of cash in recent years and are now starting to deploy those funds on things like long-overdue technology upgrades.
Sensible Stories
By , Bloomberg, 08/02/2010
MarketMinder's View: Consumer spending, the largest component of the US economy, is expected to make strides in the near future.
Market Misperceptions
By , The Wall Street Journal, 08/02/2010
MarketMinder's View:
Deflation could be a risk, but it’s likely a far-off, low-probability risk. The Fed and other central banks have been extremely accommodative and have many new monetary tools at their disposal to stave off deflation.
Market Misperceptions
By , Reuters, 08/02/2010
MarketMinder's View:
Simply, no. Employment lags the economy. If you’re looking for a leading economic indicator, look to the stock market.
Market Misperceptions
By , Financial Times, 08/02/2010
MarketMinder's View: Economic recovery isn’t a perfectly straight path, but US and global economies have made amazing strides. Risks remain as always, but there are currently many positive forces driving economic growth.