Home → Fisher Investments MarketMinder Headlines → 09-2007 Archives

Sensible Stories
By , Barron’s, 09/28/2007
MarketMinder's View: A rational look at why current popular market fears are overblown.
Market Misperceptions
By , The Wall Street Journal, 09/28/2007
MarketMinder's View: Despite? Why “despite?” Oil’s direction is not meaningful for stocks.
Market Misperceptions
By , CNN Money, 09/28/2007
MarketMinder's View: Since this seems to be an airing of grievances, we’d like to point out that mortgage rates remain very low yet no one seems to notice.
Market Misperceptions
By , Reuters, 09/28/2007
MarketMinder's View: Greenspan (who’s allegedly retired, by the way) sees increased risk of recession tied to weak consumer spending. Didn’t consumer spending just beat expectations?
Market Misperceptions
By , Bigarticle.com, 09/28/2007
MarketMinder's View: This grumpy article blames perceived woes on the recent rate cut. Which is funny, since two weeks ago, the consensus clamored a rate cut to “save” the economy. Either way, it’s just sensational, meaningless fear.
Market Misperceptions
By , newsvine.com, 09/28/2007
MarketMinder's View: A blow to what? US GDP, earnings, and consumer spending beat expectations, unemployment is very low, and interest rates benign. And housing prices were higher in August!
Market Misperceptions
By , Bloomberg., 09/28/2007
MarketMinder's View: This headline is a bit misleading. Goldman is projecting 4.2% global growth—hardly something to be gloomy about.
Market Misperceptions
By , BusinessWeek, 09/28/2007
MarketMinder's View: Because analysts fail to account for shrinking stock supply due to resurging M&A and buybacks, expect earnings to surprise to the upside.
Market Misperceptions
By , The Wall Street Journal, 09/28/2007
MarketMinder's View: First it’s deflation, then inflation, now stagflation!? Is it the foundation for a conflagration? All this worry is making us even more bullish.
Sensible Stories
By , CNNMoney.com, 09/28/2007
MarketMinder's View: Silly consumers! Don’t they know they were all supposed to be imperiled in August because of the credit crunch? Hmm. Maybe the media got that wrong.
Sensible Stories
By , Café Hayek, 09/28/2007
MarketMinder's View: As oil hits new highs, a different take on the concerns over oil supply.
Market Misperceptions
By , Financial Times, 09/28/2007
MarketMinder's View: Here’s a new one – globalization should lead to higher taxes. It’s always puzzling to us that many economic reports focus on maximizing revenue for government, and not maximizing individuals’ wealth.
Sensible Stories
By , Reuters, 09/28/2007
MarketMinder's View: Destroying the supply of securities – just another day at the office.
Sensible Stories
By , The Wall Street Journal, 09/28/2007
MarketMinder's View: Egypt is learning cutting regulation is good for business and helps build societal wealth. Maybe our politicians should take notes.
Sensible Stories
By , The Wall Street Journal, 09/28/2007
MarketMinder's View: Wait a minute – we thought Americans were out buying iPods and Big Macs with their credit cards because they had no more money. Oh right, that wasn’t us. American consumers just keep getting wealthier!
Sensible Stories
By , IBD Editorials, 09/27/2007
MarketMinder's View: Free trade is an essential component of global economic growth.
Sensible Stories
By , The Wall Street Journal, 09/27/2007
MarketMinder's View: We love to see people question conventional wisdom. In this case, an interesting look at the downside of “shareholder democracy."
Market Misperceptions
By , The Wall Street Journal, 09/27/2007
MarketMinder's View: This is bizarre—it claims a disturbing trend of bullish money managers. If a majority of professionals were euphoric, we’d consider that a market risk. But, the article points out only 28% of managers believe stocks are undervalued.
Sensible Stories
By , Bloomberg, 09/27/2007
MarketMinder's View: Unemployment is down, order books are full, and exports are strong—positive news from Europe’s largest economy.
Market Misperceptions
By , The Associated Press, 09/27/2007
MarketMinder's View: Why is this news? There’s no meaningful correlation between home sale volume and stock prices. Why not say “Stocks Up Despite Rainy Weather.” “Stocks Up Despite it Being Thursday.” “Stocks Up Despite Van Halen Reunion Tour.” It’s meaningless!
Market Misperceptions
By , Barron’s, 09/27/2007
MarketMinder's View: Hooray! This sets the stage for investors to be surprised to the upside by earnings.
Market Misperceptions
By , MarketWatch, 09/27/2007
MarketMinder's View: The dollar isn’t predictive for stocks. End of story. Read MarketMinder commentary “Dollar Doldrms Don’t Mean Diddly for Stocks.”
Market Misperceptions
By , CNN Money, 09/27/2007
MarketMinder's View: Subprime: Big Talk, Little Global Impact.
Sensible Stories
By , Bloomberg.com, 09/27/2007
MarketMinder's View: “Chuck Norris gets ALL of his funding from the asset-backed commercial paper market.” Satire can actually prevent investing errors. (See MarketMinder commentary “Ask the Question,” 09/25/2007.)
Sensible Stories
By , The New York Times, 09/27/2007
MarketMinder's View: Boooo – we don’t like government meddling in private markets.
Dueling Headlines
By , BBC News, 09/27/2007
MarketMinder's View: The real story is prices rose in the last month but based on the headlines who would know?
Market Misperceptions
By , The Washington Post, 09/27/2007
MarketMinder's View: Sales volume is down from the record-breaking pace of the last five years. So what? Home prices were actually higher in August—and weren’t home prices what everyone was fretting? This is just another example of fishing for a negative story when not much economically negative is happening.
Market Misperceptions
By , MSNBC.com, 09/27/2007
MarketMinder's View: What – no mention of stocks and oil higher on the same day? No one ever notices when that happens.
Sensible Stories
By , Financial Times, 09/27/2007
MarketMinder's View: The headline seems gloomy but they grew 32% in the first half and 75% in the past year ending in June – not a poor showing. Derivatives have allowed companies “to better manage and transfer credit risk” – growth in this portion of the market should be seen as a positive sign, not a negative one.
Sensible Stories
By , Bloomberg, 09/27/2007
MarketMinder's View: Wait—the economy was strong even through the “housing bubble?” Hmm. Maybe we’ll be surprised to the upside by Q3 growth too.
Sensible Stories
By , MSNBC.com, 09/26/2007
MarketMinder's View: Yikes. Credit ratings don’t guarantee a risk level—they were never intended to do that. The last thing we need is politicians telling credit rating agencies how to do their jobs.
Market Misperceptions
By , The New York Times, 09/26/2007
MarketMinder's View: In our view, long-term rates better indicate the market’s expectation for inflation. Gold makes a lousy inflation hedge and a lousier long-term investment.
Sensible Stories
By , TCS Daily, 09/26/2007
MarketMinder's View: An intriguing look at the benefits of economic bubbles.
Sensible Stories
By , Financial Times, 09/26/2007
MarketMinder's View: Any effort that would allow capital to flow more freely is a good thing.
Market Misperceptions
By , SmartMoney, 09/26/2007
MarketMinder's View: Flip this on its head. When the dollar’s strong, folks fret our exports are “too expensive” and foreigners won’t buy them, hurting our economy. Weak or strong, there’s no meaningful correlation between the dollar’s strength and market or economic health.
Sensible Stories
By , The Wall Street Journal, 09/26/2007
MarketMinder's View: We know our readers don’t want to pay higher taxes to read MarketMinder.
Sensible Stories
By , 09/26/2007
MarketMinder's View: What do you know? The price of oil is expected to remain firm, so firms consider investing in alternate, potentially much cheaper sources of energy. There may be something to this supply/demand thing.
Market Misperceptions
By , MSNBC.com, 09/26/2007
MarketMinder's View: Snore – consumer confidence is a lagging indicator and is not a signal of the future direction of markets.
Market Misperceptions
By , BBC News, 09/26/2007
MarketMinder's View: We’re still wrapping our heads around how the tremendous amount of wealth created by the increase in house prices can be described as “misery.” Needless to say, if house prices had declined, that would’ve caused “misery” as well…
Sensible Stories
By , The Wall Street Journal, 09/26/2007
MarketMinder's View: In praise of “insourcing” and GM’s dominance in China – and yes, you read that right.
Market Misperceptions
By , Adbusters, 09/26/2007
MarketMinder's View: Follow this logic (if you dare). Globalization creates lower wages, increasing debt which drives interest rates down and home prices up, increasing corporate prices and creating a financial industry boom. According to the article, all of this is bad, but it will unravel soon—which is worse! Since globalization actually increases global wealth in aggregate, you can dispense with the rest of the insanity.
Sensible Stories
By , BBC News, 09/26/2007
MarketMinder's View: Monsieur Sarkozy has a worrisome protectionist streak, but his budget is delightfully pro-business.
Market Misperceptions
By , The Washington Post, 09/26/2007
MarketMinder's View: Read to the end to discover home prices were higher in August, year over year—not really a “free fall” is it?
Sensible Stories
By , Financial Times, 09/26/2007
MarketMinder's View: The beauty of the free market – without any major government interference, the market is demanding more fuel-efficient vehicles and producers are responding.
Sensible Stories
By , Portfolio.com, 09/25/2007
MarketMinder's View: The PC is 2,000 times more beneficial than heart-healthy Cheerios? This and other interesting economic tidbits.
Sensible Stories
By , The Australian, 09/25/2007
MarketMinder's View: Heck yes it would be! Regulation usually creates far more problems than the regulators think they are solving.
Sensible Stories
By , NPR.org (audio), 09/25/2007
MarketMinder's View: Interesting, because just a few weeks ago, the media was squawking the economy was imperiled over one month’s relatively weaker employment numbers. Guess that wasn’t the case.
Market Misperceptions
By , Globe and Mail, 09/25/2007
MarketMinder's View: Gold has been a lousy long-term investment. For proof, this headline can be adjusted to read, “Gold nearing break-even 28 years later.”
Market Misperceptions
By , CBS News, 09/25/2007
MarketMinder's View: More expensive brie for us, but more demand for relatively cheaper American goods overseas. Unless you’re planning a whirlwind European tour next month, a weak dollar just doesn’t impact you much, particularly since it doesn’t dictate stock direction.
Market Misperceptions
By , MarketWatch, 09/25/2007
MarketMinder's View: Wrong way to look at this. Foreigners invest here because they perceive America to be one of the world’s safest and most profitable investment destinations in the world. USA! USA!
Sensible Stories
By , The New York Times, 09/25/2007
MarketMinder's View: The beauty of globalization illustrated. India, a popular destination for outsourcing, also sends corporate jobs to America.
Sensible Stories
By , TCS Daily, 09/25/2007
MarketMinder's View: Because hindsight bias also causes investing errors, this is a worthwhile article to read.
Market Misperceptions
By , Yahoo! Finance, 09/25/2007
MarketMinder's View: Say it with us—consumer confidence is backward looking and not predictive for stocks.
Market Misperceptions
By , CBS News, 09/25/2007
MarketMinder's View: Wow. Skip this and read “Best Credit Crunch Ever!” 08/23/2007.
Market Misperceptions
By , Bloomberg, 09/25/2007
MarketMinder's View: Because this is based on year-over-year prices, home prices could stay flat or even rise a bit and we’ll continue to see to “home prices fall” headlines. Residential real estate is not predictive for stocks. Ignore.
Sensible Stories
By , Financial Times, 09/25/2007
MarketMinder's View: Remember a few weeks ago when the credit crisis was going to bring down the global economy? It really shouldn’t come as a surprise that those apocalyptic predictions failed to materialize.
Market Misperceptions
By , Financial Times, 09/25/2007
MarketMinder's View: Real bubbles create euphoria, not fear. Remember all that fear about technology in 2000? Neither do we – the headlines were about the new economy, an end to business cycles, and technology stocks doubling every two years – that was a true bubble.
Sensible Stories
By , The Wall Street Journal, 09/25/2007
MarketMinder's View: While not perfect, central banking policy has grown more effective and coordinated over the years resulting in more stable and predictable monetary conditions – a good backdrop for equities.
Sensible Stories
By , BBC News, 09/25/2007
MarketMinder's View: The completion of the second-biggest private equity buyout ever is a bullish sign for the credit and equity markets.
Market Misperceptions
By , The Sydney Morning Herald, 09/24/2007
MarketMinder's View: This dizzying logic is hard to sort out. The article purports the US, in an effort to stave off recession, will print more money, stoking inflation, which will then cause recession, i.e., to combat recession, the US shouldn’t combat recession? We don’t see a high risk of recession at this point anyway, so save yourself the migraine and ignore.
Market Misperceptions
By , The Wall Street Journal, 09/24/2007
MarketMinder's View: Congress’ new strategy for the property market – decrease new supply? Somehow we find it hard to believe they’re thinking about Econ 101.
Sensible Stories
By , Barron’s, 09/24/2007
MarketMinder's View: Three court rulings to watch. Our preference is always toward less regulation and lower taxes. Let’s see if the Supreme Court agrees.
Market Misperceptions
By , Reuters, 09/24/2007
MarketMinder's View: This is bad news if you’re a dollar bull, but it’s irrelevant for most everyone else. There’s no meaningful correlation between the dollar’s relative strength and market direction.
Market Misperceptions
By , The Wall Street Journal, 09/24/2007
MarketMinder's View: The Great Humiliator at work! The market loves to cause investors to play defense after a correction just before it moves higher, only to leave them standing flat-footed.
Sensible Stories
By , The Wall Street Journal, 09/24/2007
MarketMinder's View: Is it too much to ask for politicians to read about the benefits of free trade rather than pander to their base?
Market Misperceptions
By , The Washington Post, 09/24/2007
MarketMinder's View: Alternatively, this headline could read, “Stocks up 18% since last time investor confidence hit these levels!” Confidence numbers are not predictive. Ignore.
Sensible Stories
By , Financial Times, 09/24/2007
MarketMinder's View: We’re not too worried about this supposed “downturn” – the disconnect between sentiment on the economy and actual corporate activity is a bullish one.
Sensible Stories
By , Bloomberg, 09/24/2007
MarketMinder's View: “Housing just doesn't matter for the S&P . . . End of story. The concern about the spillover and what it means for energy companies, tech companies, industrial companies is overblown because they benefit from global growth.” We agree! But we disagree bears are hard to find. There’s still plenty of pessimism out there.
Market Misperceptions
By , Financial Times, 09/24/2007
MarketMinder's View: Real bubbles aren’t called bubbles until years after they burst. For example, most investors only called tech a “bubble” until well after it burst. Fear over credit markets has been so well publicized that the impact has been widely discounted into prices.
Sensible Stories
By , Financial Times, 09/24/2007
MarketMinder's View: A rational argument against a knee-jerk, politically-driven reaction to financial markets turmoil.
Sensible Stories
By , CNNMoney.com, 09/24/2007
MarketMinder's View: One drawback to a do-nothing Congress? They do nothing about our ridiculous, out-moded tax system. Keep an eye on how this develops. (For more of our views on AMT, see MarketMinder commentary “Pass on the Patch,” 03/27/2007.)
Sensible Stories
By , portfolio.com, 09/24/2007
MarketMinder's View: Is the M&A boom over? Not likely. “Buyouts still look sweet, according to a survey of 100 chief financial officers—they don't see a burst, they see buyout interest increasing over the next 12 months.”
Market Misperceptions
By , Bloomberg, 09/24/2007
MarketMinder's View: The key word here is “entitlement.” These programs aren’t legitimate liabilities because they can go away with the stroke of a pen (provided Congress can ever agree on anything).
Market Misperceptions
By , MSN Money, 09/21/2007
MarketMinder's View: We made it through the 2nd largest bear market in 100 years without a bank going bankrupt. We think most banks will weather a fake credit crunch just fine.
Market Misperceptions
By , The New York Times, 09/21/2007
MarketMinder's View: Now that the faux credit crisis is averted, the media is looking for the next big scare story. See yesterday’s commentary: “The Could Headlines” for more.
Sensible Stories
By , The Wall Street Journal, 09/21/2007
MarketMinder's View: Middle Eastern governments are spending booming oil revenues on financial investments around the globe—that’s a great thing.
Market Misperceptions
By , 09/21/2007
MarketMinder's View: The Grinch arrives early this year! Look for more such inane stories in the coming months. The facts indicate US consumers are in a position of strength.
Market Misperceptions
By , Bloomberg, 09/21/2007
MarketMinder's View: Who cares? Finding those “better answers” tells you nothing about investing today or the future.
Sensible Stories
By , Wall St. Journal, 09/21/2007
MarketMinder's View: We agree. Florida’s state-sponsored hurricane insurance concentrates risk rather than allowing markets to distribute it more efficiently.
Market Misperceptions
By , 09/21/2007
MarketMinder's View: Our ridiculous item of the week. A good investing rule of thumb is “Never take financial advice from a guy in a sequined robe.” This edict has never let us down.
Sensible Stories
By , Bloomberg, 09/21/2007
MarketMinder's View: While anecdotal, here’s more evidence perceived credit problems are nowhere nearly as bad as feared.
Market Misperceptions
By , Bloomberg, 09/21/2007
MarketMinder's View: Besides making your weekend getaway to Alberta a bit pricier, this means nothing for stocks. Relative currency strength simply isn’t predictive for markets.
Market Misperceptions
By , Reuters, 09/21/2007
MarketMinder's View: Wow! Home prices rose for 74% of homeowners! That’s outstanding! We are confused. Why is this bad news?
Market Misperceptions
By , TheStreet.com, 09/21/2007
MarketMinder's View: Apparently, we’re on the precipice of a 15-year bear market! Ignore anyone who tries to predict investment outcomes more than a year or so into the future—it’s the same as looking into a crystal ball.
Sensible Stories
By , MSNBC, 09/21/2007
MarketMinder's View: The US economy isn’t looking too shabby after all.
Market Misperceptions
By , Bloomberg News, 09/21/2007
MarketMinder's View: We find it comical the so-called “leading indicators” are overwhelmingly based on backward-looking data. (Stock performance is based solely on forward-looking data.)
Sensible Stories
By , The New York Times, 09/21/2007
MarketMinder's View: Keep an eye on this—new legislation aimed at “helping” distressed borrowers will likely cause more damage than good.
Sensible Stories
By , CNNMoney.com, 09/21/2007
MarketMinder's View: Variable annuities are expensive to buy, own, and get out of. The people who benefit most from them are the sales people who collect huge upfront and ongoing commissions.
Sensible Stories
By , Bloomberg, 09/21/2007
MarketMinder's View: As worries over credit and private equity fill investor consciousness, companies are buying back their own stock at a record pace in 2007. That’s mega-bullish for stock prices.
Market Misperceptions
By , 09/21/2007
MarketMinder's View: So much for a scientific, dispassionate, fundamental approach to investing—start panicking now!
Sensible Stories
By , US News, 09/21/2007
MarketMinder's View: A strong critique of the notion wages and standards of living are stagnant.
Market Misperceptions
By , The Boston Globe, 09/20/2007
MarketMinder's View: The blame game continues. Now it’s idiot, reckless borrowers who are to blame! Sure, some people will always be careless with debt, but it’s not pandemic. More baseless, sensational fear-mongering
Market Misperceptions
By , The Financial Times, 09/20/2007
MarketMinder's View: Sensational fear-mongers are missing a key point here—mortgage rates are lower today than earlier this year. Absent a legitimate credit crunch, these fears aren’t likely to pan out.
Sensible Stories
By , PoorandStupid.com, 09/20/2007
MarketMinder's View: Do pirates keep global warming at bay? A humorous warning to investors that there are three kinds of lies, and all data should be examined with a cynical eye.
Sensible Stories
By , Skeptic, 09/20/2007
MarketMinder's View: Doctors, like investors, suffer from a slew of deeply ingrained cognitive biases leading to errors. To invest profitably, investors must learn to understand how and why their brains go haywire.
Sensible Stories
By , CNNMoney.com, 09/20/2007
MarketMinder's View: Agreed! More government regulation will cause far more harm than good.
Sensible Stories
By , Kudlow Money Politics, 09/20/2007
MarketMinder's View: An illustration of how poor a money manager our government is.
Market Misperceptions
By , Bloomberg, 09/20/2007
MarketMinder's View: A recession is always possible. Is it likely in the near future? Not with the global economy galloping as it is.
Market Misperceptions
By , 09/20/2007
MarketMinder's View: This sums up all you should know about this article: “It’s time to teach clueless borrowers and change the laws to rein in greedy lenders.” We can’t fit everything that’s wrong with that in this small space—so just ignore entirely.
Market Misperceptions
By , The Wall Street Journal, 09/20/2007
MarketMinder's View: Wow. Shockingly wrong. Skip this and read MarketMinder commentary “The Bigger the Better,” 09/13/2007.
Sensible Stories
By , newsvine.com, 09/20/2007
MarketMinder's View: Wait a minute. You mean last month’s weaker-than-expected job report doesn’t mean unemployment had to keep rising, forever? Hmm. Maybe one month’s worth of economic data isn’t very illustrative of reality.
Sensible Stories
By , The Wall Street Journal, 09/20/2007
MarketMinder's View: “The President's prescriptions for the ailing French welfare state are hard to argue with. Now if only Mr. Sarkozy will apply them.” Here’s hoping he can and will.
Market Misperceptions
By , ABC News, 09/20/2007
MarketMinder's View: Oh no! The slowest holiday sales since just before a five-year bull market kicked off? How terrible.
Market Misperceptions
By , CNNMoney.com, 09/20/2007
MarketMinder's View: Yawn. Relative currency strength is not predictive for stock returns.
Sensible Stories
By , The Wall Street Journal, 09/20/2007
MarketMinder's View: Mr. Murdoch! Make it free for MarketMinder faithful!
Market Misperceptions
By , International Business Times, 09/19/2007
MarketMinder's View: The so-called consensus is having a rough week so far—we’d advise sticking to the fundamentals and leaving aggregated sentiment to its own devices.
Sensible Stories
By , The Wall Street Journal, 09/19/2007
MarketMinder's View: We don’t care much for Mr. Sarkozy’s protectionist attitude, but his prescription for fixing the ailing French welfare state is difficult to argue with.
Market Misperceptions
By , The Associated Press via Newsvine, 09/19/2007
MarketMinder's View: For as long as a Fed chairman exists, they will face scrutiny. This is nothing new.
Sensible Stories
By , International Business Times, 09/19/2007
MarketMinder's View: Yay! High pension and health care liabilities have put US automakers at a global disadvantage—this would be a welcome change.
Market Misperceptions
By , CNNMoney.com, 09/19/2007
MarketMinder's View: Housing starts and prices aren’t meaningfully correlated to stock returns. But if you really must play that game…1995 was the last time housing starts hit this level and the S&P 500 was up nearly 38%!
Sensible Stories
By , The Associated Press via Newsvine, 09/19/2007
MarketMinder's View: A voice of reason: Don’t try to time small market moves.
Sensible Stories
By , The Wall Street Journal*, 09/19/2007
MarketMinder's View: Inflation concerns remain a non-issue for the time being.
Sensible Stories
By , Kiplinger, 09/19/2007
MarketMinder's View: Three good perspectives on current Fed policy.
Sensible Stories
By , Investors.com, 09/19/2007
MarketMinder's View: We wholeheartedly agree.
Sensible Stories
By , Café Hayek, 09/19/2007
MarketMinder's View: Lower prices are good. It makes our hearts cry that some folks can’t understand why.
Sensible Stories
By , TCS Daily, 09/19/2007
MarketMinder's View: The EU’s decision against Microsoft could signal of the shape things to come for European business. An issue worth keeping an eye on.
Sensible Stories
By , TCS Daily, 09/19/2007
MarketMinder's View: Ok, so we’re probably not going to live forever. But investors commonly miscalculate their time horizon—most folks will live longer than expected, making proper asset allocation (often a holding big chunk of stocks) a vital issue.
Sensible Stories
By , The Financial Times, 09/19/2007
MarketMinder's View: The Lex Editors at FT ask: “Where’s the blood on the Street?” in lieu of Lehman’s better-than-expected earnings. We asked the same question over a month ago in our commentary: “Blood in the Alleys,” 8/9/07.
Market Misperceptions
By , The Wall Street Journal*, 09/19/2007
MarketMinder's View: A relatively inconsequential event to quell the market’s faux credit fears—the stuff of classic bull market corrections. For more, MarketMinder analysis on the Fed’s rate cut, see our commentary: “Saving the Day (And Not Much Else)” 9/18/07.
Market Misperceptions
By , CNNMoney.com, 09/19/2007
MarketMinder's View: We hope you can see how crazy this is: Just 48 hours ago pundits were telling us interest rates don’t matter because credit simply isn’t available—hence the so-called “credit crunch.” Now all of the sudden slightly lower rates are going to save everything. Give us a break. There was never a big credit problem to begin with.
Market Misperceptions
By , The Associated Press via Boston.com, 09/19/2007
MarketMinder's View: Um, this would have been interesting 2 years ago. Today, it’s a little late to the game.
Market Misperceptions
By , The Wall Street Journal, 09/19/2007
MarketMinder's View: It goes to show how wild shifts in sentiment can be during corrections: Just a couple days ago most folks would have lamented falling earnings from the big financials. Today, somehow, Wall Street’s lowered earnings are giving stocks “a lift.” Go figure.
Market Misperceptions
By , The Wall Street Journal, 09/18/2007
MarketMinder's View: Will it be 25 bps? Or 50 bps? The biggest surprise will be that small moves don’t have much fundamental impact at all. Read MarketMinder commentary, “Small Cuts Don’t Much Matter,” 09/14/2007.
Sensible Stories
By , CafeHayek, 09/18/2007
MarketMinder's View: A helpful reminder that even though manufacturing is less important relatively to the US and the world, American manufacturing is very healthy.
Market Misperceptions
By , Washington Post, 09/18/2007
MarketMinder's View: Wrong wrong wrong! This article assumes the Fed has some all encompassing power over market direction. Don’t be fooled. The economy doesn’t need “saving” and the Fed can’t save it anyhow. Small rate moves don’t do much of anything.
Sensible Stories
By , Investors.com, 09/18/2007
MarketMinder's View: How can profits remain steady when the “credit crunch” is going to cause a recession? Maybe the relatively tiny subprime market isn’t as problematic for the economy as doomsayers would have you believe.
Sensible Stories
By , U.S. News & World Report, 09/18/2007
MarketMinder's View: Mr. Greenspan was a fine Fed head, but we agree with this article: “We're sitting here with a six-year economic expansion—already the fourth-longest since World War II—with low unemployment and low inflation. Oh, and the deficit is collapsing, and it's now less than 2 percent of GDP despite all that new spending. What's Greenspan's gripe again?”
Market Misperceptions
By , The Motley Fool, 09/18/2007
MarketMinder's View: File this under, “Well, duh.” Of course we’ll see another bear market, but likely not as long as the global economy remains strong, earnings keep surprising to the upside, and interest rates remain benign.
Sensible Stories
By , CNNMoney.com, 09/18/2007
MarketMinder's View: Our flexible labor markets and open capital markets are big competitive advantages in America. Keeping our politicians out of them will ensure their continued effectiveness.
Sensible Stories
By , CNNMoney.com, 09/18/2007
MarketMinder's View: “Less cost, more choice and greater convenience: Investing has never been simpler.” True, but an investor’s worst enemy is still his brain. A quick overview at how the investing world has evolved over 35 years.
Market Misperceptions
By , MarketWatch, 09/18/2007
MarketMinder's View: Beware stories that cite a cartoon dog as supporting evidence.
Market Misperceptions
By , MSN Money, 09/18/2007
MarketMinder's View: This article stops just short of accusing banks of controlling the weather. Ignore.
Sensible Stories
By , newsvine.com, 09/18/2007
MarketMinder's View: Maybe Brits just really enjoy standing in line. We’re fairly certain the UK government wouldn’t guarantee deposits if there were a strong likelihood they’d have to pay up. Read MarketMinder commentary “Britain Rocked,” 09/17/2007.
Sensible Stories
By , The Wall Street Journal, 09/17/2007
MarketMinder's View: An important commentary on China’s future and the destructive, unintended consequences of the “One-Child” policy.
Sensible Stories
By , Bloomberg, 09/17/2007
MarketMinder's View: Precisely!
Market Misperceptions
By , 09/17/2007
MarketMinder's View: If by “infected” it’s meant that global growth and asset prices have surged in recent years due to proliferation of new financial tools putting more capital in more folks’ hands, then yes, we’re infected.
Market Misperceptions
By , Barron’s, 09/17/2007
MarketMinder's View: It’s true investors are often better served by not making hasty decisions in turbulent markets, but resorting to annuities is an awful idea!
Sensible Stories
By , International Business Times, 09/17/2007
MarketMinder's View: It’s a mistake to extrapolate the problems of one company to the broader market.
Sensible Stories
By , Yahoo! Finance, 09/17/2007
MarketMinder's View: Long-term investors should relish today’s opportunity to buy stocks on the cheap!
Sensible Stories
By , The Wall Street Journal, 09/17/2007
MarketMinder's View: Emerging market companies are seeking access to western markets, resources, and skills. In a globalized, interconnected economy, capital can flow in any direction.
Sensible Stories
By , 09/17/2007
MarketMinder's View: See our past commentary, “Small Cuts Don’t Much Matter,” 9/14/07, for MarketMinder analysis on this week’s Fed meeting.
Sensible Stories
By , Fortune via CNNMoney.com, 09/17/2007
MarketMinder's View: While we disagree with much of Mr. Greenspan’s analysis, it’s important to assimilate and consider his experienced perspective.
Sensible Stories
By , US News, 09/17/2007
MarketMinder's View: MarketMinder thinks there are plenty more than four, but this is a good start.
Market Misperceptions
By , Kiplinger, 09/17/2007
MarketMinder's View: Maybe, maybe not. For the globally diversified investor, it’s moot.
Sensible Stories
By , Kiplinger, 09/14/2007
MarketMinder's View: By definition, a credit crunch means borrowing gets more expensive, not less expensive.
Market Misperceptions
By , Adam Smith Institute, 09/14/2007
MarketMinder's View: The terrible unintended consequences of government subsidies and the intervention into the free market.
Market Misperceptions
By , MSNBC.com, 09/14/2007
MarketMinder's View: This will be viewed negatively, but why? A growing global economy is helping keep energy demand high—and growth is good, not bad. Oil prices are likely to remain firm, which is good news for your portfolio’s energy allocation!
Market Misperceptions
By , The Wall Street Journal, 09/14/2007
MarketMinder's View: “CEO pay has risen astronomically over the interval, but so have investor returns.” Exactly! Completely ignore the last sentence about higher marginal tax rates (with which we disagree) and this is a well thought out and rational view on CEO compensation given today’s “super-competitive capitalism.”
Market Misperceptions
By , Financial Times, 09/14/2007
MarketMinder's View: Words like “rescue” and “bailout” sound frightening but need to put in context. This “rescue” is a short-term loan at a penalty rate that is available to basically any financial institution that makes the request which the Bank of England deems secure and well within the parameters that the Bank has set up to deal with overall financial stability. Certainly there are problems in isolated areas like this one but this does not portend some global economic disaster.
Market Misperceptions
By , MSNBC.com, 09/14/2007
MarketMinder's View: People feel good, which is nice, but consumer sentiment has no predictive power for stocks.
Sensible Stories
By , The New York Times, 09/14/2007
MarketMinder's View: “It appears that this credit crunch may not be as bad as some people thought.” Yes. Yes it does.
Sensible Stories
By , Financial Times, 09/14/2007
MarketMinder's View: Stabilization in a portion of the market that was creating fear doesn’t make the front page?! This tells us that there is a massive disconnect between sentiment and fundamentals – a bullish sign!
Market Misperceptions
By , Financial Times, 09/14/2007
MarketMinder's View: Stabilization in a portion of the market that was creating fear doesn’t make the front page?! This tells us that there is a massive disconnect between sentiment and fundamentals – a bullish sign!
Sensible Stories
By , The Wall Street Journal, 09/14/2007
MarketMinder's View: Because investing is a science, not a craft, this is an important story. Investors shouldn’t believe everything they read and must test for themselves before believing what any “expert” says.
Market Misperceptions
By , The Telegraph, 09/14/2007
MarketMinder's View: After reading this, one wouldn’t be surprised to see blood in the streets of London and New York. The more likely scenario is that this is an over-hyped isolated problem and a strong rebound in share prices should occur as the reality that the global economy is pushing ahead at full steam becomes apparent.
Market Misperceptions
By , The Wall Street Journal, 09/14/2007
MarketMinder's View: According to this article, borrowing at the discount window “soared” and “surged” $7.1 billion from $1 billion the previous week. Big whoop. A normal week might see in excess of $1.2 trillion in Fed funds activity—$7.1 billion is an atomic particulate in a drop in a bucket.
Sensible Stories
By , Adam Smith Institute, 09/14/2007
MarketMinder's View: The terrible unintended consequences of government subsidies and the intervention into the free market.
Dueling Headlines
By , MSNBC.com, 09/14/2007
MarketMinder's View: Either way, it doesn’t matter for stocks.
Market Misperceptions
By , The New York Times, 09/14/2007
MarketMinder's View: Given the proliferation of “socially responsible” investing vehicles, this is an amusing look at the so-called vice fund. But be warned: No equity category, however defined, is inherently better, and all categories (big, small, growth, value, responsible, irresponsible) should net similar returns over the long term going forward.
Sensible Stories
By , The Wall Street Journal, 09/14/2007
MarketMinder's View: “CEO pay has risen astronomically over the interval, but so have investor returns.” Exactly! Completely ignore the last sentence about higher marginal tax rates (with which we disagree) and this is a well thought out and rational view on CEO compensation given today’s “super-competitive capitalism.”
Sensible Stories
By , AP, 09/14/2007
MarketMinder's View: We don’t mind big budget deficits one bit—deficit extremes have led to superior stock returns than surplus extremes historically. But the deficit is shrinking largely because supply-siders are right—tax cuts lead to increased productivity and income and higher tax receipts.
Market Misperceptions
By , 09/13/2007
MarketMinder's View: Ha! This is genuinely funny. Please don’t take this study seriously.
Sensible Stories
By , The Australian, 09/13/2007
MarketMinder's View: “This decade has seen the advent of the pan-Asian production process.” It has also seen the emergence of a bigger, more developed and more prosperous global economy better equipped to deal with short-term problems – globalization is a wonderful thing.
Market Misperceptions
By , CNNMoney.com, 09/13/2007
MarketMinder's View: This angers us on many levels. First, treating recession as if it’s inevitable is bizarre. How many head-fakes has the US economy given us in the last 5+ years, yet kept right on growing? Second, the very idea of the Fed acting as economic “savior” is ridiculous.
Sensible Stories
By , CNNMoney.com, 09/13/2007
MarketMinder's View: Rates are actually falling in the midst of this so-called credit crunch. If this is how all credit crunches go, let’s have one every year!
Market Misperceptions
By , The Wall Street Journal, 09/13/2007
MarketMinder's View: Great, but the market is already making the switch—why does Congress need to force change upon us with increased regulation? And…horror of horrors…these bulbs are made in China! We hope they don’t get recalled!
Sensible Stories
By , Briefing.com, 09/13/2007
MarketMinder's View: This is ok, but investors need to think this issue through globally. The global economy shows no signs of recession or sluggishness—it’s booming.
Market Misperceptions
By , Portfolio.com, 09/13/2007
MarketMinder's View: This may well be a sign of the Apocalypse: Blaming innovation and proliferation of capital markets for today’s credit worries.
Market Misperceptions
By , 09/13/2007
MarketMinder's View: Making stock investment decisions using currency analysis is a bad, awful idea. Ignore this media claptrap.
Market Misperceptions
By , Businessweek, 09/13/2007
MarketMinder's View: Commercial Paper and conduits are not a new risk at all—they’ve been around as financial instruments for some time. But if you were previously unaware of these markets, it’s worth understanding how they work.
Market Misperceptions
By , The New York Times, 09/13/2007
MarketMinder's View: The cavalcade of stories about high energy prices makes a triumphant return! This issue didn’t sink the economy or stocks before, and don’t expect it to this time either.
Sensible Stories
By , Forbes, 09/13/2007
MarketMinder's View: We love snarky sarcasm. Particularly when it highlights market absurdities.
Sensible Stories
By , TheStreet.com, 09/13/2007
MarketMinder's View: Investors are showing strength and ample liquidity while the media squawks about credit crunches.
Sensible Stories
By , Kiplinger, 09/13/2007
MarketMinder's View: America still has huge infrastructure spending to do. Now think about this theme applied across all the growing economies of the world: A worldwide boom in infrastructure spending might be just beginning!
Market Misperceptions
By , Bloomberg, 09/13/2007
MarketMinder's View: We recommend investors steer clear of this over-hyped saga. It won’t bolster or sink stocks in the end.
Market Misperceptions
By , National Post, 09/13/2007
MarketMinder's View: And the world market was up yesterday! It surely must be some sort of statistical anomaly. Wrong - oil prices don't move share prices.
Dueling Headlines
By , The Australian, 09/13/2007
MarketMinder's View: Wow! Did Secretary Paulson give two different speeches today? Or has his evil twin been feeding disinformation to the press again? It’s one of the two.
Market Misperceptions
By , CNN Money, 09/13/2007
MarketMinder's View: Only 35 minutes?! It’s a wonder people work most of their lives to get rich! Here is an idea for everyone – invest in the stock market. It has the best track record one can find on building wealth over time.
Sensible Stories
By , The Wall Street Journal, 09/13/2007
MarketMinder's View: A good depiction of the Greenspan era and how Bernanke should chart his own course.
Sensible Stories
By , The Wall Street Journal, 09/12/2007
MarketMinder's View: When investment products sound too good to be true – they usually are.
Sensible Stories
By , BusinessWeek, 09/12/2007
MarketMinder's View: “Just how onerous has the current credit crunch been . . .to summarize, there are no signs of widespread ill effects thus far.” This article contains good evidence why this is a fake credit crunch.
Sensible Stories
By , The Wall Street Journal, 09/12/2007
MarketMinder's View: Because we’re living longer than ever, it’s vital to plan accordingly and have an investment strategy designed to make your assets last at least as long as you do. Having an inappropriately high static allocation of bonds or cash could cause investors to miss their long-term investing goals.
Sensible Stories
By , BusinessWeek, 09/12/2007
MarketMinder's View: A booming global economy requires infrastructure upgrades and development. This could be an opportunity looking forward.
Market Misperceptions
By , CNNMoney.com, 09/12/2007
MarketMinder's View: The subprime story is so played out, even criminals are catching on. Apparently, an acceptable excuse for prostitution is, “My mortgage made me do it.”
Sensible Stories
By , The Wall Street Journal, 09/12/2007
MarketMinder's View: “…the PE revolution isn't merely the product of a ‘tax loophole.’ It's about concentrating management incentives and talent to wring more wealth out of businesses that aren't doing so well in other hands.” Well said.
Market Misperceptions
By , Bloomberg, 09/12/2007
MarketMinder's View: Why is this news? A tiny hedge fund is down just 5.9% after a tough month and is still positive for the year. Big deal. And, hedge funds in general declined an average of just 1.31% in August—during an alleged credit crisis Armageddon! Ignore.
Market Misperceptions
By , The New York Times, 09/12/2007
MarketMinder's View: One weak jobs report suddenly means economic disaster which can only be solved by (surprise!) more government intervention. Is more government oversight not only a means to an end but the end itself for some people? For our take on the recent jobs report, see our commentary “Belaboring Labor.”
Sensible Stories
By , MarketWatch, 09/12/2007
MarketMinder's View: Japanese markets didn’t react much because Japanese Prime Ministers turn over frequently, and Abe was very unpopular lately. Who takes over next and how aggressive their agenda is could impact Japanese markets, so it’s worthwhile keeping an eye on this storyline.
Sensible Stories
By , TCS Daily, 09/12/2007
MarketMinder's View: Subprime mortgages are a great thing, not a bad thing to be regulated and squelched. They allow folks who otherwise wouldn’t qualify for loans to become homeowners. More folks owning their own homes is great! And, the great majority of subprime mortgagees came out way ahead of the game. Hooray!
Sensible Stories
By , US News & World Report, 09/12/2007
MarketMinder's View: AMEN! Government regulation pretty much always has unintended negative consequences.
Sensible Stories
By , CNNMoney.com, 09/12/2007
MarketMinder's View: The current so-called credit crunch has been blamed, in part, by rising ARM rates. But with Treasury yields falling (has anyone noticed?), many ARM mortgagees may find their new rates are lower when they reset—not higher. Yep—this is the “Best Credit Crunch Ever!” (Read MarketMinder commentary from 8/23/2007.)
Market Misperceptions
By , Portfolio.com, 09/12/2007
MarketMinder's View: Now Greenspan’s being blamed for the alleged “credit crisis” because he applauded the proliferation of new mortgage products allowing greater access to credit. If wanting more people to own their own homes is bad, then lump us in with Mr. Greenspan and call us naughty.
Market Misperceptions
By , The Wall Street Journal, 09/12/2007
MarketMinder's View: With the media tiring of the “credit crunch” story we guess it’s time to fall back on high gas prices hurting consumers – yawn.
Market Misperceptions
By , Bloomberg, 09/12/2007
MarketMinder's View: This is hardly a surprise to the supply-side faithful. Lower tax rates are a net economic positive, leading to increased tax receipts.
Sensible Stories
By , International Business Times, 09/12/2007
MarketMinder's View: This is the way the world works. When loans are cheaper, folks want more of them. Right now, despite the media hype, loans are cheaper than this summer.
Sensible Stories
By , BBC News, 09/12/2007
MarketMinder's View: We’re not disputing that problems have surfaced in specific portions of the credit market, but these problems should not impair the global economy.
Market Misperceptions
By , Bloomberg, 09/12/2007
MarketMinder's View: This is bad if your subsistence depends on making successful short-term dollar bets, but the rest of us may ignore this news. The dollar’s relative strength tells you nothing about the stock market’s direction. Historically, there’s no meaningful correlation.
Sensible Stories
By , ABCNews.com, 09/11/2007
MarketMinder's View: Six years later, the economy has boomed and markets soared. The American people, and therefore our markets and economy, are dynamic and resilient.
Market Misperceptions
By , The Telegraph, 09/11/2007
MarketMinder's View: It’s interesting that the media is focusing on weak Japanese GDP numbers but has basically ignored the better-than-expected US GDP numbers during the same period – it seems to be a little cherry picking to us. Either way, they’re both lagging indicators.
Sensible Stories
By , The Telegraph, 09/11/2007
MarketMinder's View: “The human brain is not good at processing large amounts of contradictory information. It needs a ‘story’, a conceptual framework in which to place the torrent of confusing data to which it is constantly exposed.” Wonderfully articulated article looking at the emotional side of investing and why there may be more upside to come.
Market Misperceptions
By , Bloomberg, 09/11/2007
MarketMinder's View: Let’s not get carried away. Unemployment overall is still very low, and we’ve seen single month drops before during a bull market—most recently in May 1995, January 1996, and August 1997—all followed by fine economic growth and great stock returns.
Market Misperceptions
By , BusinessWeek, 09/11/2007
MarketMinder's View: “…citing the recent credit crisis has increased the chances the global economy will slow.” Setting the stage for a nice, upside surprise on EU economic growth!
Market Misperceptions
By , Barron’s Online, 09/11/2007
MarketMinder's View: Wow. This is one example of regret shunning we haven’t seen yet—9/11 caused the so-called credit crunch. (For more on why it’s a fake credit crunch, see MarketMinder commentary “Best Credit Crunch Ever,” 8/23/2007)
Market Misperceptions
By , Times Online, 09/11/2007
MarketMinder's View: So nine years ago was 1998 – does anyone remember what happened in 1998 and 1999? The markets were up huge! This statistic alone will tell you little about the direction of the markets.
Market Misperceptions
By , The Washington Post, 09/11/2007
MarketMinder's View: Classic regret shunning. Investors “accumulate pride” as a hot sector takes off (think tech in 1999, real estate over the past few years, etc.) and “shun regret” when over-exposure to that narrow category hurts them. They were geniuses when they garnered big gains, but now its everyone else’s fault the tide has turned.
Sensible Stories
By , The Wall Street Journal, 09/11/2007
MarketMinder's View: Passage would send a clear message that America is open for business.
Sensible Stories
By , MarketWatch, 09/11/2007
MarketMinder's View: China’s capital markets are a relatively tiny portion of the world stock market, but higher inflation and an overly aggressive reaction by their central bank is a risk worth watching for their economy.
Sensible Stories
By , Reuters, 09/11/2007
MarketMinder's View: Payrolls declined unexpectedly in August, but forward-looking employment expectations are very strong.
Sensible Stories
By , The Wall Street Journal, 09/11/2007
MarketMinder's View: A good look at managing fear—the cause of many investing errors.
Sensible Stories
By , Financial Times, 09/11/2007
MarketMinder's View: Here’s an idea – why not scrap all subsidies and allow the free market to function efficiently?
Market Misperceptions
By , CNN-Money.com, 09/11/2007
MarketMinder's View: Nowhere does this article delineate what ill a trade deficit causes, besides our dislike of the word “deficit.” History proves trade deficits in developed nations are not problematic—in fact, they can be symptomatic of a healthy economy. What is problematic are ill-considered government attempts to “solve” a non-issue.
Sensible Stories
By , CNN-Money.com, 09/11/2007
MarketMinder's View: A bit of levity to help keep things in perspective. The main point: “Don’t believe everything you read in the papers.”
Market Misperceptions
By , The Associated Press, 09/10/2007
MarketMinder's View: We find it strange and perverse folks truly believe it’s the fault of ratings agencies some debt investments are going bad. A classic case of regret-shunning.
Market Misperceptions
By , Times Online, 09/10/2007
MarketMinder's View: This is a bit premature (and sensationalist), but surely there will be some uncomfortable rumblings by governments wary of these state-owned funds, but the advantage of having more money demanding equities should create upward pressure on prices – and who doesn’t like that?
Sensible Stories
By , The Financial Times, 09/10/2007
MarketMinder's View: The worst part about being a perma-bear has to be being wrong most of the time. Maybe that’s what makes them so dour.
Market Misperceptions
By , The Telegraph, 09/10/2007
MarketMinder's View: And this is something new? Investors always face questions!
Sensible Stories
By , Tax-News.com, 09/10/2007
MarketMinder's View: It’s ironic that politicians cut corporate taxes to attract business, but when they raise taxes on business they’re always surprised when it results in a loss of business.
Sensible Stories
By , The Wall Street Journal, 09/10/2007
MarketMinder's View: A smart commentary on how politicians and other interested parties can skew data toward their point of view.
Sensible Stories
By , The Wall Street Journal, 09/10/2007
MarketMinder's View: A recent study found more than 20% of the workforce is now required to obtain a government permit to do their jobs—up from 4.5% in the 1950s. The proliferation of extra fees and red tape needlessly limits competition and efficiency.
Market Misperceptions
By , International Business Times, 09/10/2007
MarketMinder's View: Among the most absurd market predictors we’ve seen.
Sensible Stories
By , Barron’s, 09/10/2007
MarketMinder's View: Share repurchases can be a great means of delivering value to investors…and we think the trend of record share buybacks will continue.
Sensible Stories
By , The Motley Fool, 09/10/2007
MarketMinder's View: Emerging Markets’ middle class is nascent—expect continued strong growth bolstering global demand for goods and services.
Sensible Stories
By , The Wall Street Journal, 09/10/2007
MarketMinder's View: Yes! And the really nice feature is most folks have a much longer time horizon than they think. However, that doesn’t negate the benefits of dynamic asset allocation where appropriate. It just means trying to navigate a bull market correction (like we have today) is ludicrous.
Market Misperceptions
By , MarketWatch, 09/10/2007
MarketMinder's View: Celebrating a perma-bear since 2003. Oh, sweet vindication! (Too bad that also meant missing out on the bull market of ’03,’04, ’05, ’06, and likely ’07 as well…)
Sensible Stories
By , CNNMoney, 09/10/2007
MarketMinder's View: Sure, it sounds absurd. But honestly, can you really argue with this advice? “Work hard, don't abuse credit and balance the bling against your future needs.”
Sensible Stories
By , The Wall Street Journal, 09/10/2007
MarketMinder's View: Sometimes when you’re nervous about the market you need a visit from Captain Obvious.
Market Misperceptions
By , The Nation via CBS News, 09/10/2007
MarketMinder's View: We disagree. Yes, higher education is expensive, but only because the received benefit is also very high. Debt is a wonderful thing: It allows us to buy homes, cars, education and a number of other useful things we couldn’t otherwise get. Societies have lived with debt for hundreds of years and the world is a better place for it.
Market Misperceptions
By , Boston Globe, 09/10/2007
MarketMinder's View: Who cares? In fact, less new equity supply is a good thing for stocks.
Dueling Headlines
By , International Business Times, 09/10/2007
MarketMinder's View: We don’t quite follow the logic of tech as a “safe haven” against a slowing economy. Our sense is recent increased global chip demand is more symptomatic of economic strength anyway.
Sensible Stories
By , The Wall Street Journal, 09/10/2007
MarketMinder's View: Those two words together are enough to make us lose our lunch – we miss the congressional recess (vacation) already.
Sensible Stories
By , The New York Times, 09/10/2007
MarketMinder's View: Wonderfully written overview of central bank decisions and how morality does not, and should not, affect those decisions.
Sensible Stories
By , 09/10/2007
MarketMinder's View: It’s vital to keep an eye on property rights of all kinds in a market economy. The stability of property rights directly affects capitalism’s potency.
Market Misperceptions
By , Kudlow’s Money Politics, 09/10/2007
MarketMinder's View: We believe the economy is stronger than most think, and no drastic Fed action is needed to “save” the economy. That’s not the Fed’s job anyway.
Market Misperceptions
By , Money Week, 09/07/2007
MarketMinder's View: Fun! We’ve been wondering what happened to all the shrill “high gas prices will kill us all” headlines. (MarketMinder faithful don’t fear higher gas prices because gas prices and stock prices have no meaningful correlation historically. And anyway, higher energy prices are often symptomatic of a strong economy, not a weak one.)
Market Misperceptions
By , Bloomberg, 09/07/2007
MarketMinder's View: We suspect the tax revenue politicians expect to collect by increasing taxes on hedge funds will never materialize. Why? The currently gridlocked Congress means political passivity.
Market Misperceptions
By , The Wall Street Journal, 09/07/2007
MarketMinder's View: A great example of typical regret-shunning and finger pointing characteristic of a fear-based story. Pretty much everyone comes under fire here. Ratings agencies. Banks. Regulators. And even you, the consumer. Shame on you.
Market Misperceptions
By , National Post, 09/07/2007
MarketMinder's View: Yes. Now that that's settled, we can now move on to more important issues like how cheap stocks look right now.
Sensible Stories
By , Forbes, 09/07/2007
MarketMinder's View: If not for speculation-heavy California, Nevada, Arizona, and Florida, nationwide foreclosure rates would be down, not up. Subprime issues are not as universal as the media make them seem.
Market Misperceptions
By , MarketWatch, 09/07/2007
MarketMinder's View: Someone must be hiring these people elsewhere because unemployment overall remains a very low 4.6%.
Sensible Stories
By , Bloomberg, 09/07/2007
MarketMinder's View: Healthy, growing economies (like we have today) always have trouble in one area or another. It’s not unusual, and it’s not enough to derail global growth.
Sensible Stories
By , MSNBC.com, 09/07/2007
MarketMinder's View: We don’t agree with that headline, but we do agree with Greenspan here: “Former Fed chairman sees current sell-off driven by fear.” Bull markets have rolling tops accompanied by euphoria. What we’re seeing right now is hardly euphoria. Rather, current market activity is very typical of a bull market correction—a short, sharp shock driven by fear.
Market Misperceptions
By , The Telegraph, 09/07/2007
MarketMinder's View: If you need a re-cap of all the doomsday stories of the past month that have been priced into the market – here is your source. And oddly, the article makes only one passing reference to British house buyers.
Sensible Stories
By , The Wall Street Journal, 09/07/2007
MarketMinder's View: As we explained in yesterday’s commentary “The Callous Economy,” the US economy is obviously ignoring all the predictions of its imminent demise – talk about rude!
Sensible Stories
By , Financial Times, 09/07/2007
MarketMinder's View: The reason for this is…wait for it – the global economy continues to expand despite claims to the contrary!
Sensible Stories
By , The Wall Street Journal, 09/07/2007
MarketMinder's View: So much for that worry…
Sensible Stories
By , The Wall Street Journal, 09/07/2007
MarketMinder's View: Supply side economics, beautifully illustrated.
Sensible Stories
By , Forbes, 09/06/2007
MarketMinder's View: We couldn’t agree more. When you think globally and see today’s interconnected world, all sorts of great investing opportunities reveal themselves.
Market Misperceptions
By , The Associated Press, 09/06/2007
MarketMinder's View: Congressional hearings and grandstanding won’t amount to much in the end—we foresee very slim prospects of any major legislation passing this year or next.
Sensible Stories
By , The Motley Fool, 09/06/2007
MarketMinder's View: On the myriad benefits of global investing.
Sensible Stories
By , Investor’s Business Daily, 09/06/2007
MarketMinder's View: The Fed seems to recognize today’s strong economy and the limited impact of today’s credit situation. We view their tactics of late as very level-headed and appropriate.
Sensible Stories
By , The Wall Street Journal, 09/06/2007
MarketMinder's View: Developing economies are no longer just places to manufacture goods to sell to the developed world. Rising incomes and standards of living have created major markets for products – the beauty of globalization and free trade!
Sensible Stories
By , CNNMoney, 09/06/2007
MarketMinder's View: Despite all the fretting over US consumers, August showed solid retail sales.
Sensible Stories
By , Times Online, 09/06/2007
MarketMinder's View: “From a longer-term perspective, however, this crisis will probably turn out to be another storm in a teacup.” Indeed.
Sensible Stories
By , The Heritage Foundation, 09/06/2007
MarketMinder's View: Being “poor” in America sure seems pretty good to us: “Forty-three percent of all poor households actually own their own homes. The average home owned by persons classified as poor by the Census Bureau is a three-bedroom house with one-and-a-half baths, a garage, and a porch or patio.”
Market Misperceptions
By , The Associated Press, 09/06/2007
MarketMinder's View: Outside a few regions like California and Florida, overall foreclosures actually declined. It’s imperative to remember real estate market turbulence is often geographically isolated, not nationwide.
Market Misperceptions
By , Barron’s Online, 09/06/2007
MarketMinder's View: Another inane call for the Fed to “rescue” the credit world. That’s not the Fed’s job nor should it be. Free markets are darn good at correcting and regulating themselves.
Dueling Headlines
By , Fortune, 09/06/2007
MarketMinder's View: With such clear direction from journalists – it’s really a wonder why many people find investing confusing!
Market Misperceptions
By , MarketWatch, 09/06/2007
MarketMinder's View: This would be sort of funny were it not so dangerous an idea. Suggesting investors should be allowed to “return” their defunct investments is insane. It’s sort of like the guy who buys a losing lottery ticket and demands his money back because he didn’t win. Investment involves risk of loss and always will.
Market Misperceptions
By , Globe and Mail, 09/06/2007
MarketMinder's View: So close to being a great story until it ended with exactly the doomsday press coverage it was trying to expose!
Sensible Stories
By , The Washington Post, 09/06/2007
MarketMinder's View: “Worker productivity rebounded, growing at the fastest pace in nearly two years.” This is a great thing. Productivity is a key to keeping inflation low and the economy healthy.
Sensible Stories
By , Boston Globe, 09/06/2007
MarketMinder's View: We love it! Banks are taking advantage of the credit scare to drum up business.
Market Misperceptions
By , The Telegraph, 09/06/2007
MarketMinder's View: China has no vested interest in seeing the dollar or US Treasuries fall considering the bulk of their reserves is invested in US debt. But if the drop-in-the-bucket sale is true, there must be someone equally as interested in buying US Treasuries, right? Look no further than rising bond prices over the past month to see just how attractive they remain.
Sensible Stories
By , Kiplinger, 09/06/2007
MarketMinder's View: A global perspective is key in today’s investing world—here’s a great example why.
Sensible Stories
By , via Barron’s Online, 09/06/2007
MarketMinder's View: A close analysis reveals that nonresidential construction is far more important to S&P 500 companies than new home construction. And it just so happens that nonresidential construction is currently booming.
Sensible Stories
By , The Wall Street Journal, 09/06/2007
MarketMinder's View: Wait – government initiatives won’t have the desired effects!? This has to be the first time this has ever happened.
Market Misperceptions
By , MoneyWeek, 09/05/2007
MarketMinder's View: Not much, since this article purports a “credit crunch” will be the death of the economy and the end of the bull. Kind of hard to argue there’s a credit crunch when 10-year Treasury, BBB, and high yield rates are all dropping and long-term interest rates are benign globally. (Read “Best Credit Crunch Ever,” 08/23/2007.)
Market Misperceptions
By , CNNMoney.com, 09/05/2007
MarketMinder's View: Uh oh . . . job growth hasn’t been this slow since the start of a hugely positive year for US and global stocks!
Sensible Stories
By , WSJ Online, 09/05/2007
MarketMinder's View: Probably. But that doesn’t mean our government won’t rush in and make things worse with ill-considered regulations.
Market Misperceptions
By , TheStreet.com, 09/05/2007
MarketMinder's View: The Fed’s job isn’t to “save” stocks, it’s to set and enact monetary policy. Inflation has been contained and unemployment remains low under the Bernanke Fed, so from where we sit, he’s done a fine job thus far. This article just reiterates well-known fears that are already priced and haven’t much market-moving power left. Ignore.
Sensible Stories
By , Washington Post, 09/05/2007
MarketMinder's View: A great look at the changing face of manufacturing in the US.
Sensible Stories
By , The Washington Times, 09/05/2007
MarketMinder's View: Great insight into the “permeability of the boundaries of all markets.”
Sensible Stories
By , International Herald Tribune, 09/05/2007
MarketMinder's View: IPOs add to stock supply, and should demand not keep pace, stock prices will fall. An IPO boom is a potential negative for Chinese stocks and a risk to keep en eye on.
Market Misperceptions
By , The Telegraph, 09/05/2007
MarketMinder's View: Nothing to worry about here – house price growth has little impact on future equity market returns.
Sensible Stories
By , TCS Daily, 09/05/2007
MarketMinder's View: We find the solution described herein fascinating, because it’s market-based, “keeps government involvement proportionate to the size of the problem,” and allows subprime mortgagees to maintain much of their equity. Not bad.
Market Misperceptions
By , Guardian Unlimited, 09/05/2007
MarketMinder's View: The OECD is all fine and good if you favor international socialist policy (we don’t), but we wouldn’t put much store in their economic forecasting.
Sensible Stories
By , The Wall Street Journal, 09/05/2007
MarketMinder's View: Showtime is back – Magic Johnson and others standing up for those who would be inadvertently affected by tax increases on “carried interest.”
Market Misperceptions
By , CNN Money, 09/05/2007
MarketMinder's View: The beauty of the supposed “credit crunch” is how highly publicized it has all been – effectively discounting in the worst case scenario. This is great news!
Market Misperceptions
By , BusinessWeek, 09/05/2007
MarketMinder's View: Wrong wrong wrong. It’s insane to make short-term market bets based on arithmetic averages for a single month’s return. There’s no fundamental reason why any one month is superior to another.
Sensible Stories
By , Investors.com, 09/05/2007
MarketMinder's View: Always good advice.
Market Misperceptions
By , Businessweek, 09/05/2007
MarketMinder's View: We agree stocks are likely to rise, but not because the Fed is likely to cut. Fed funds don’t dictate stocks’ direction. Stocks can rise perfectly fine on rate raises (example, the last five years). Don’t fall prey to this market myth.
Market Misperceptions
By , Kiplinger, 09/05/2007
MarketMinder's View: We hate to be a spoil-sport, but US automakers were struggling long before the so-called credit crunch.
Sensible Stories
By , Financial Times, 09/04/2007
MarketMinder's View: Tariffs negatively impact domestic firms too and the low prices for consumers generated by free trade are almost always ignored by governments.
Market Misperceptions
By , The Wall Street Journal, 09/04/2007
MarketMinder's View: Now that Congress is back from its nice vacation the blame game should start shortly. Hopefully they continue to live up to their “do nothing” credentials.
Market Misperceptions
By , The New York Times, 09/04/2007
MarketMinder's View: Mortgage crisis hype has taken on Leviathan status—a sure sign the news is priced in to stocks.
Sensible Stories
By , The New York Times, 09/04/2007
MarketMinder's View: A slew of new debt will be brought to market in September—we predict most all of it will find a happy investment home without difficulty.
Market Misperceptions
By , Financial Times, 09/04/2007
MarketMinder's View: Can you fathom the unfathomable – that the US consumer will weather the sub-prime problems and the US economy will be stronger than most expect?
Sensible Stories
By , The New York Times, 09/04/2007
MarketMinder's View: Asia’s M&A boom may just be getting started…
Sensible Stories
By , Bloomberg, 09/04/2007
MarketMinder's View: On the perils of government meddling…
Sensible Stories
By , The Wall Street Journal, 09/04/2007
MarketMinder's View: Emerging markets such as India continue to demonstrate strong growth – so much for a global slowdown.
Sensible Stories
By , Financial Times, 09/04/2007
MarketMinder's View: A great look at the under-reported boom in foreign direct investment in the US.
Sensible Stories
By , 09/04/2007
MarketMinder's View: Not only do Americans work longer, they’re also more productive than just about anywhere else in the world.
Sensible Stories
By , The Economist, 09/04/2007
MarketMinder's View: Emerging Markets companies are improving their financial health as they increasingly participate in global markets.
Sensible Stories
By , Bloomberg, 09/04/2007
MarketMinder's View: Bull market corrections make excellent buying opportunities when sentiment turns sour and positive fundamentals remain intact… like we have today.
Sensible Stories
By , Times Online, 09/04/2007
MarketMinder's View: Despite all the talk of slowing M&A activity, private equity firms continue to raise considerable cash for future buyouts.
Market Misperceptions
By , US News, 09/04/2007
MarketMinder's View: With election season just around the corner, a Congress with slim majorities in both chambers, and a president with veto pen in hand, political gridlock is the forecast looking ahead—which we view as very bullish for stocks.
Sensible Stories
By , The Wall Street Journal, 09/04/2007
MarketMinder's View: Despite media claptrap, capital markets chugged along just fine in August.
Market Misperceptions
By , The Washington Post, 09/04/2007
MarketMinder's View: Ignore this. Bush’s mortgage plan is minute in dollar terms and won’t significantly affect markets, and the Fed is still unlikely to move rates much in either direction in the near term. Anyway, the market doesn’t need them.
Market Misperceptions
By , Barron’s Online, 09/04/2007
MarketMinder's View: Such endeavors always fail in the long run because no sector, industry, or valuation metric ever outperforms for all time.
Sensible Stories
By , Bloomberg, 09/04/2007
MarketMinder's View: When companies are cheap and lending costs remain below historical averages, it’s a good bet high merger and acquisition activity will continue.
Sensible Stories
By , TCS Daily, 09/04/2007
MarketMinder's View: “It is the division of labor that creates specialization and improves efficiency and productivity, which therefore leads to greater prosperity for all.” See our commentary, “Laboring Through Summer,” Part One and Part Two for more.
Market Misperceptions
By , Financial Times, 09/03/2007
MarketMinder's View: No – but it does have all the hallmarks of a classic correction.
Sensible Stories
By , BBC News, 09/03/2007
MarketMinder's View: This was long-awaited but maybe this is a sign of merger activity re-accelerating given low borrowing costs and attractive valuations.
Market Misperceptions
By , Times Online, 09/03/2007
MarketMinder's View: Ignore the data mining here – the more interesting part is the discussion of August as a terrible month when the UK market was down less than 1%.
Sensible Stories
By , Financial Times, 09/03/2007
MarketMinder's View: The global economy remains very strong.