Home → Fisher Investments MarketMinder Headlines → 09-2008 Archives

Sensible Stories
By , The Wall Street Journal, 09/30/2008
MarketMinder's View: The call for a new gold standard might be a bit much, but we agree concentrated economic decision-making often results in unintended negative consequences.
Market Misperceptions
By , New York Times, 09/30/2008
MarketMinder's View:
And less than two weeks ago we had the ‘best day.’ This speaks more of volatility in the markets than where they are heading in the long run.
Market Misperceptions
By , Reuters, 09/30/2008
MarketMinder's View: If consumer confidence didn’t help forecast the last few weeks’ economic or market events, what’s it good for?
Market Misperceptions
By , MSN Money, 09/30/2008
MarketMinder's View: Folks have been forecasting recession for well over a year now. Current events may heighten the risk, but recession is not yet a foregone conclusion and now’s not the time to panic in any case.
Sensible Stories
By , The Wall Street Journal, 09/30/2008
MarketMinder's View: Uncertainty is the name of the game—always will be. But there’s little reason to believe we’re heading toward another Great Depression.
Market Misperceptions
By , CNBC, 09/30/2008
MarketMinder's View: A global crisis calls for a global solution—how “global” suddenly means “US” is beyond us.
Sensible Stories
By , Forbes.com, 09/30/2008
MarketMinder's View: Separating financial market turmoil and the resilience of the economy is important when deducing where markets are likely to head in the future.
Sensible Stories
By , International Herald Tribune, 09/30/2008
MarketMinder's View: Lost in the bailout chatter, central banks continue to support the financial system using more traditional, less invasive methods.
Sensible Stories
By , CNNPolitics, 09/30/2008
MarketMinder's View: It’s important to remember ill-conceived government policy is at least partially culpable for this mess. And solving poor government policy with more and bigger government is rarely the best solution.
Sensible Stories
By , Bloomberg, 09/29/2008
MarketMinder's View: Uncertainty remains in financial markets with the bill’s failure to pass the House. Clearly, more deliberation is required.
Sensible Stories
By , The American Spectator, 09/29/2008
MarketMinder's View: Simple changes to accounting rules could very well have a significant positive impact on the crisis. And you don’t need a bill or $700 billion to accomplish it.
Sensible Stories
By , The Wall Street Journal, 09/29/2008
MarketMinder's View: Developments with foreign banks are worth keeping an eye on --not just the US.
Market Misperceptions
By , CNNMoney, 09/29/2008
MarketMinder's View: Yes, consumer spending is a big part of GDP, but one month doesn’t tell the whole story. Overall, consumers are holding up so far this year.
Sensible Stories
By , Time, 09/29/2008
MarketMinder's View: This article is a bit heated, but it is worth a read.
Market Misperceptions
By , Fortune, 09/29/2008
MarketMinder's View: No surprise that peak oil proponents are comparing today’s gas lines in the South to the environment of the 1970s. Yes, oil prices should remain firm, but that doesn’t mean we’re running out of the stuff.
Sensible Stories
By , Marketwatch.com, 09/29/2008
MarketMinder's View: We’ve made the point before, but it’s important to retain perspective on today’s events.
Sensible Stories
By , MSN Money, 09/29/2008
MarketMinder's View: Clearly, the ban on short sales hasn’t really worked. When will regulators learn the market is better equipped to determine prices than any individual or government?
Market Misperceptions
By , Times Online, 09/29/2008
MarketMinder's View: Egad! It’s come to this: “Now I think it might be time to panic.” When is it ever a good time to panic? (The answer for investors is “never.”)
 
Sensible Stories
By , Bloomberg, 09/29/2008
MarketMinder's View: Lost amid all the hype surrounding the financial bailout plan is the fact that the Fed just injected an amount almost equal to the proposed bill, which fell short of passing the House.
Market Misperceptions
By , Businessweek, 09/26/2008
MarketMinder's View: Waiting for backward-looking indicators to lead the way could be costly for investors. Trust instead the ultimate forward-looking indicator—the stock market!
Market Misperceptions
By , The Wall Street Journal, 09/26/2008
MarketMinder's View: It’s easy to pin oil’s slide to the day’s biggest news item. But volatile commodity price fluctuations are driven by any number of fundamentals—and they don’t historically have much to do with stock prices anyway.
Sensible Stories
By , The Daily Standard, 09/26/2008
MarketMinder's View: Finally a bipartisan agreement—or not? Today’s fast-paced markets require vigilance before action. See today’s cover story, “Merely Bailout Opines, Not Call to Action,” for more.
Market Misperceptions
By , The Wall Street Journal, 09/26/2008
MarketMinder's View: Government numbers are fickle, and we don’t expect that to change anytime soon. That the economy grew near its historic average in the second quarter is more important than the small revision.
Sensible Stories
By , The New York Times, 09/26/2008
MarketMinder's View: No one knows what the plan’s final incarnation will look like, but here’s an interesting glance at the actual language of the bill as it was introduced to Congress—and potential risks therein.
Sensible Stories
By , The Wall Street Journal, 09/26/2008
MarketMinder's View: Here’s a good rundown of the quick government seizure and resale of WaMu to JP Morgan.
Market Misperceptions
By , The Telegraph, 09/26/2008
MarketMinder's View:
Plucking data from select property and financial services firms won’t give you an accurate picture of the economy.
Market Misperceptions
By , The New York Times , 09/26/2008
MarketMinder's View:  “One month does not make a trend.” We wholeheartedly agree.
Sensible Stories
By , Financial Times, 09/26/2008
MarketMinder's View: It seems most folks will have an opinion on the causes of financial turmoil. It doesn’t mean they are right.
Sensible Stories
By , The Telegraph, 09/26/2008
MarketMinder's View: Coordinated action from the world’s central banks supports global capital markets in ways we’ve not seen in past crises—a fact illustrating the strength of today’s system.
Sensible Stories
By , SmartMoney, 09/26/2008
MarketMinder's View: A bailout package will undoubtedly have some negative consequences, but deliberation and attention to detail—two things often missing in rushed legislation—could make all the difference in attaining a useful result.
Sensible Stories
By , The Los Angeles Times, 09/26/2008
MarketMinder's View: “Given America's record of resiliency, it would be foolish to ‘short’ our prospects based on recent turmoil.” Well put.
Market Misperceptions
By , Los Angeles Times, 09/25/2008
MarketMinder's View: One fear of imposing new regulation on free markets is overreaching government, which has the potential to do more harm than good.
Market Misperceptions
By , CNNMoney.com, 09/25/2008
MarketMinder's View: For a level-headed view of the Treasury’s proposed “price tag” see today’s cover story, “Dollars for Assets,” for more.
Market Misperceptions
By , The Wall Street Journal, 09/25/2008
MarketMinder's View: These folks get it almost exactly wrong. Free markets didn’t wipe out Wall Street—the fault lies with obtrusive governmental practices that deviated from conventional market discipline.
Market Misperceptions
By , The Independent, 09/25/2008
MarketMinder's View:
It’s too early to speculate exactly how damaging the new regulation might be, and far too early to suggest overall economic recovery will be severely impacted.
Market Misperceptions
By , Financial Times, 09/25/2008
MarketMinder's View: Doubtful, but not impossible. It ultimately matters little for globally diversified investors with appropriate exposure to firms around the world.
Market Misperceptions
By , The Wall Street Journal, 09/25/2008
MarketMinder's View: Anyone else find it a bit ridiculous the government is passing a loan to help carmakers meet regulations the government imposed?
Sensible Stories
By , The New York Times, 09/25/2008
MarketMinder's View: Who would have thought? Lower taxes, more business!
Sensible Stories
By , Real Clear Markets, 09/25/2008
MarketMinder's View: Apportioning blame to and reacting against the actions of short sellers is not the answer to the financial turmoil.
Sensible Stories
By , The Wall Street Journal, 09/25/2008
MarketMinder's View: Here’s an excellent take based on history about current risks of wide government intervention.
Market Misperceptions
By , Bloomberg, 09/25/2008
MarketMinder's View: It’s not surprising the unpopular government is looking for scapegoats. But if you take away a legitimate (and sizeable) investing model, unintended consequences and increased risk will arise.
Sensible Stories
By , Fortune, 09/25/2008
MarketMinder's View: We don’t know how today’s world will turn out, but we believe the power of active incentive and creativity will move us not just toward a solution, but to greater and more effective innovations.
Sensible Stories
By , The American, 09/25/2008
MarketMinder's View: An interesting glance at the role of government and markets in the Energy industry.
Sensible Stories
By , Financial Post, 09/24/2008
MarketMinder's View: Labor shortages rarely happen in a truly recessionary global economy.
Sensible Stories
By , Marginal Revolution, 09/24/2008
MarketMinder's View: The key thing to note is total bank credit has not fallen off a cliff—despite today’s financial problems.
Sensible Stories
By , National Review Online, 09/24/2008
MarketMinder's View: High corporate tax rates hurt American global competitiveness and affect individuals as well as businesses.
Market Misperceptions
By , Forbes, 09/24/2008
MarketMinder's View: Supply and demand are the final determinants of commodity prices.
Sensible Stories
By , Forbes.com, 09/24/2008
MarketMinder's View: We don’t yet know what unintended consequences will arrive after this government intervention but we do know that it probably won’t change future human behaviour.
Market Misperceptions
By , The Financial Times, 09/24/2008
MarketMinder's View:
We can’t rule out further intervention in Europe but it’s wholly inaccurate to describe the bailout plan of up to $700bn as an effective nationalization of the US financial system.
Market Misperceptions
By , BusinessWeek, 09/24/2008
MarketMinder's View: This is a strange angle considering the US isn’t currently in a recession (GDP growth has been positive through all of 2008 so far), nor is the global economy.
Sensible Stories
By , CNNMoney.com, 09/24/2008
MarketMinder's View: Today’s markets cause uncertainty and fear in most investors—but the smart ones don’t react based on short-term emotions, but on long-term investing objectives.
Sensible Stories
By , National Review Online, 09/23/2008
MarketMinder's View: Conservative principles aside, this is a measured analysis of the proposed financial rescue plan facing Congress. See today’s cover story, “Certainly Uncertain,” for more.
Market Misperceptions
By , Bloomberg, 09/23/2008
MarketMinder's View: Today’s headlines are awash with opinions, policy prescriptions, and forecasts. Bottom line is no one knows what will happen yet—events are still far too fluid.
Market Misperceptions
By , CNBC, 09/23/2008
MarketMinder's View: Though we agree a major difference between today and the 1930s is federal experience, the headline is misleading. So far, the “shock” has been mostly to the financial system, not the broader economy.
Sensible Stories
By , The Wall Street Journal, 09/23/2008
MarketMinder's View: A good reminder that in free global markets, capital may be reallocated where it can be utilized best, saving the best and ditching the worst—something to applaud, not fear.
Market Misperceptions
By , The Telegraph, 09/23/2008
MarketMinder's View:
The day to day moves in the price of oil, the stock market and the dollar won’t tell you anything about the economy.
Sensible Stories
By , The Wall Street Journal, 09/23/2008
MarketMinder's View: We doubt the proposal will make it through Congress without some significant concessions—many of which may have little to do with the crisis and everything to do with politics.
Market Misperceptions
By , The Wall Street Journal, 09/23/2008
MarketMinder's View: Perhaps so, but we’ve yet to see how it will play out. Just because old school investment houses have been forced into conservative business models doesn’t mean new players won’t emerge.
Sensible Stories
By , The Financial Times, 09/23/2008
MarketMinder's View: Whilst the business model may change, it would be premature to suggest now marks the end of investment banking.
Market Misperceptions
By , The Associated Press, 09/22/2008
MarketMinder's View: Commodities prices can be extremely volatile, and daily moves don't necessarily portend anything either way.
Sensible Stories
By , Bloomberg, 09/22/2008
MarketMinder's View: Stock buybacks tell you two things: 1) Equity supply is shrinking, and 2) executives believe their stock is worth more than today’s levels. Both are bullish.
Sensible Stories
By , Forbes, 09/22/2008
MarketMinder's View: We don’t know whether Paulson’s proposal will pass congressional muster or if it’s a good idea, but here’s a good breakdown of the plan.
Market Misperceptions
By , Times Online, 09/22/2008
MarketMinder's View:
Given the gradually improving economic growth since the end of last year, this seems far too pessimistic.
Sensible Stories
By , Forbes, 09/22/2008
MarketMinder's View: Selling now would only lock in your losses. Historically, stocks’ sharp comebacks more than makes up bear market losses.
Market Misperceptions
By , Reuters, 09/22/2008
MarketMinder's View: Nannies are now an economic indicator? We don’t think so.
Sensible Stories
By , The Wall Street Journal, 09/22/2008
MarketMinder's View: This may be a good move, or it may not. It’s too soon to tell, but we will be watching closely as the events unfold.
Sensible Stories
By , The Wall Street Journal, 09/22/2008
MarketMinder's View: Banning short sellers from markets is not the solution.
Market Misperceptions
By , The New York Times, 09/22/2008
MarketMinder's View: America isn’t declining; rather, the rest of the world is also growing.
Sensible Stories
By , The Washington Post, 09/22/2008
MarketMinder's View: America has survived greater crises than this one and has invariably emerged the stronger for it.
Sensible Stories
By , Forbes, 09/19/2008
MarketMinder's View: Wall Street alone does not a country’s economy make. Here are examples of positive signs in the “rest of the economy.”
Market Misperceptions
By , The Wall Street Journal, 09/19/2008
MarketMinder's View: We believe it’s rarely a good idea to change the rules in the middle of the game—often, severe consequences ensue.
Sensible Stories
By , The Times, 09/19/2008
MarketMinder's View: “The need is not for more regulation but for more relevant regulation.” We couldn’t have said it better.
Sensible Stories
By , The Telegraph, 09/19/2008
MarketMinder's View: For long-term investors, buying when others are fearful is historically an effective way to purchase good assets on the cheap.
Market Misperceptions
By , Investor’s Business Daily, 09/19/2008
MarketMinder's View: When dealing with something as complex as global markets, policies need to be consistent and transparent—otherwise, uncertainty is created along with possible unintended consequences.
Sensible Stories
By , Time, 09/19/2008
MarketMinder's View: It’s tempting to find a scapegoat in difficult times. But there’s little to no evidence supporting the theory short sellers are responsible for the recent market turmoil. See today’s cover story, “A Shot in the Dark,” for more.
Market Misperceptions
By , Times Online, 09/19/2008
MarketMinder's View:
This just days after retail sales had surprised with positive growth. Go figure!
Sensible Stories
By , Real Clear Markets, 09/19/2008
MarketMinder's View: Some perspective on today’s turmoil is useful for the road ahead.
Market Misperceptions
By , The LA Times, 09/19/2008
MarketMinder's View: At 25% of the global economy (and steady GDP growth so far this year), it’s highly unlikely the US will fall into Third World status.
Market Misperceptions
By , Associated Press, 09/19/2008
MarketMinder's View: The short-selling witch hunt intensifies. Blaming short sellers for market woes is not the solution.
Market Misperceptions
By , CNNMoney, 09/18/2008
MarketMinder's View: Pay no attention to so-called “leading indicators.”  Historically, monthly economic data are not predictive for stocks, nor do they accurately predict GDP—as evidenced by positive US GDP growth in the past two quarters.
Market Misperceptions
By , The Wall Street Journal, 09/18/2008
MarketMinder's View:
Whilst some sectors are experiencing a credit crunch, overall lending is still very healthy.
Sensible Stories
By , CNNMoney, 09/18/2008
MarketMinder's View: What are bailouts costing the taxpayer? Impossible to know, but it’s likely to be far less than worst-case scenario numbers currently bandied about.
Market Misperceptions
By , Time, 09/18/2008
MarketMinder's View: Hollywood and films are not economic indicators, regardless of what some say.
Market Misperceptions
By , The Telegraph, 09/18/2008
MarketMinder's View:
When large organisations fail it might be tempting to predict Armageddon, but it’s wholly inaccurate to do so.
Sensible Stories
By , The Telegraph, 09/18/2008
MarketMinder's View: We love dullness!
Sensible Stories
By , Bloomberg, 09/18/2008
MarketMinder's View: Blaming short sellers for this financial mess and increasing restrictions on short selling is not the solution.
Market Misperceptions
By , The New York Times, 09/18/2008
MarketMinder's View: If this isn’t evidence of extreme pessimism and overly dour sentiment, then we don’t know what is.
Market Misperceptions
By , The New York Times, 09/18/2008
MarketMinder's View:
While we agree government intervention isn’t always a palatable solution, it’s too early to tell what the ramifications of AIG’s bailout truly will be (and a bit ridiculous to say free market capitalism is finished). Please see today’s cover story, “Concerning AIG,” for more.
Sensible Stories
By , The Wall Street Journal, 09/18/2008
MarketMinder's View: An excellent analysis of regulation’s sometimes unintended, negative consequences.
Market Misperceptions
By , Forbes, 09/18/2008
MarketMinder's View:
Remember a recession is not about how folks are feeling. The fact is, US and global GDP growth have been positive through all of 2008.
Sensible Stories
By , The Press Association, 09/18/2008
MarketMinder's View: Why are we not surprised that good news merits little more than a paragraph?
Sensible Stories
By , The Wall Street Journal, 09/18/2008
MarketMinder's View: Jumps in ratings when negative news abounds is one reason why bad news is given front page status while good news is ignored or buried.
Market Misperceptions
By , Bloomberg, 09/17/2008
MarketMinder's View: Short selling isn’t a conspiracy, but a legitimate investing tool. Handcuffing short selling—or any form of investment—handicaps markets’ inherent depth and broadness.
Sensible Stories
By , MSNBC, 09/17/2008
MarketMinder's View: A balanced view of today’s financial and economic situation.
Sensible Stories
By , The Wall Street Journal, 09/17/2008
MarketMinder's View: See our cover story, “Weekend at Lehman’s” (9/15/2008), for a detailed analysis on the Lehman situation.
Sensible Stories
By , Money Magazine, 09/17/2008
MarketMinder's View: “While you might wish that stocks never suffered any losses, without the risk of major setbacks, equities wouldn't provide you with those higher potential returns.” We wouldn’t agree with everything in this piece, but we heartily concur risk and reward are always attached at the hip when it comes to investing.
Market Misperceptions
By , Times Online, 09/17/2008
MarketMinder's View: We agree markets mitigate risks and more markets would be better, but it’s near completely absurd to pinpoint public ownership as the cause of current financial problems.
Sensible Stories
By , The Wall Street Journal, 09/17/2008
MarketMinder's View: In-depth coverage of AIG’s credit problems and the ensuing government intervention.
Sensible Stories
By , Bloomberg, 09/17/2008
MarketMinder's View: A little historical perspective is always welcome.
Market Misperceptions
By , Los Angeles Times, 09/17/2008
MarketMinder's View: It’s too soon to pass judgment on recent government interventions. We won’t understand the true success or failure of recent buyouts and bailouts until after the dust has settled.
Market Misperceptions
By , The New York Times, 09/17/2008
MarketMinder's View:
Isn’t failure to some extent a tax in itself for the individuals involved?
Sensible Stories
By , Bloomberg, 09/17/2008
MarketMinder's View: Don’t let the title fool you—this is a cogent view of the Fed’s recent moves and future options.
Market Misperceptions
By , Times Online, 09/16/2008
MarketMinder's View:
Remember the four most dangerous words of investing – ‘It’s different this time.’
Sensible Stories
By , The Wall Street Journal, 09/16/2008
MarketMinder's View: We urge vigilance of important market developments, and here’s a good run-down of AIG's troubles. But note, history tells us we might see more failures before things look up.
Market Misperceptions
By , The Wall Street Journal, 09/16/2008
MarketMinder's View: It might still be a bit early to forecast what the financial landscape will look like after the dust settles—today’s investment banking giants may yet be replaced by tomorrow’s upstarts.
Market Misperceptions
By , MailOnline, 09/16/2008
MarketMinder's View:
We’ll add this one to our long list of wonky economic indicators—see our cover story “Passive Manipulation” (5/19/2008), for more.
Sensible Stories
By , The Wall Street Journal, 09/16/2008
MarketMinder's View: In all industries businesses fail when conditions are tough, it’s no different for financial services firms. It doesn’t mean financial services are doomed forever though.
Sensible Stories
By , Investor’s Business Daily, 09/16/2008
MarketMinder's View: We’ve been through worse and usually emerged better.
Market Misperceptions
By , CNNMoney, 09/16/2008
MarketMinder's View: The prices underlying CPI are as fickle as the number itself. Disregard short-term fluctuations in favor of future market expectations, like those offered by still-benign long-term interest rates. 
Sensible Stories
By , The Wall Street Journal, 09/16/2008
MarketMinder's View: “If the financial world really were coming to an end, nobody would know it—least of all the pundits who are currently crying doom.”
Sensible Stories
By , The Wall Street Journal, 09/16/2008
MarketMinder's View: Experienced central banks are key to maintaining stability in today’s global markets.
Sensible Stories
By , The Wall Street Journal, 09/16/2008
MarketMinder's View: Recognizing the limitations of our brain's is amongst the first steps to better investing.
Market Misperceptions
By , CNBC, 09/16/2008
MarketMinder's View:
We’re wary of any forecast claiming such accuracy—especially one with rationale based on volatile commodity prices.
Sensible Stories
By , The Wall Street Journal, 09/15/2008
MarketMinder's View: Another study supporting the theory that supply and demand drive the price of oil, not speculators.
Market Misperceptions
By , Bloomberg, 09/15/2008
MarketMinder's View:
Blaming oil’s price decline on the demise of Lehman is rather farfetched: No historical data exists showing a correlation between the success and failure of a financial firm and oil demand.
Market Misperceptions
By , Times Online, 09/15/2008
MarketMinder's View:
Even if Chinese growth does slow, 8 or 9% is still very healthy.
Sensible Stories
By , 09/15/2008
MarketMinder's View: New data show lowering taxes benefits nearly everyone, poor and rich alike, while raising taxes has the opposite effect.
Market Misperceptions
By , The Wall Street Journal, 09/15/2008
MarketMinder's View: First, August industrial output was revised to show a 0.1% climb. Now, it shows a decline. Monthly numbers are not predictive for stocks and are frequently revised—as last month’s example shows.
Sensible Stories
By , Bloomberg, 09/15/2008
MarketMinder's View: The fact is developing nations are growing at a healthy clip in aggregate today, and developing nation companies are increasing profitability.
Sensible Stories
By , Times Online, 09/15/2008
MarketMinder's View: The finance sector is certainly embattled but financials don’t make up the majority of the world. Elsewhere, the economy is doing fine.
Sensible Stories
By , The Wall Street Journal, 09/15/2008
MarketMinder's View: “The people who stay at the table and don’t make stupid moves here are going to be the ones who make the money in the years ahead.” In other words, now is not the time to get scared out of stocks.
Market Misperceptions
By , Forbes, 09/15/2008
MarketMinder's View: The fact is US Financials began recapitalizing much faster than their Japanese counterparts a decade earlier.
Sensible Stories
By , Newsweek, 09/15/2008
MarketMinder's View: How free markets work, explained using pencils.
Market Misperceptions
By , The Wall Street Journal, 09/12/2008
MarketMinder's View: Monthly numbers are highly erratic, are not predictive for stocks, and are frequently revised. Short-term numbers are no indication of long-term performance.
Sensible Stories
By , CNNMoney, 09/12/2008
MarketMinder's View: Lehman’s options aren’t out, despite the worries. In the long run, the purchasing firm could benefit.
Market Misperceptions
By , Fortune, 09/12/2008
MarketMinder's View: Currency movements have no long-term correlation with stock movements. 
Sensible Stories
By , Carpe Diem, 09/12/2008
MarketMinder's View: “Despite the troubles in the banking industry, we're still a long way from anything close [to] a real banking crisis like the S&L crisis.” Agreed.
Market Misperceptions
By , Times Online, 09/12/2008
MarketMinder's View:
Three days ago the bailout was going to bring about the end of the financial turmoil and now this!
Sensible Stories
By , Investor’s Business Daily, 09/12/2008
MarketMinder's View: We said all along that speculators were wrongly blamed for high oil prices.
Sensible Stories
By , The Wall Street Journal, 09/12/2008
MarketMinder's View: The reforms suggested have had a positive impact elsewhere in the world so there is no reason they couldn’t have the same effect in Japan.
Sensible Stories
By , The Wall Street Journal, 09/12/2008
MarketMinder's View: While we see the federal takeover of Fannie and Freddie as necessary to avoid a systemic collapse, this highlights the pitfalls of government involvement.
Market Misperceptions
By , The Times, 09/12/2008
MarketMinder's View:
While we heartily agree the Fannie/Freddie takeover will have some negative unintended consequences, it’s too much to say this marks the end of capitalism as we know it.
Sensible Stories
By , The Wall Street Journal, 09/12/2008
MarketMinder's View: A great look at why studies are rather unreliable when looking at numbers.
Sensible Stories
By , CNNMoney, 09/11/2008
MarketMinder's View: While we don’t necessarily agree Financials are primed for a quick comeback relative to the broader market, we agree today’s sentiment is far too pessimistic.
Sensible Stories
By , The Wall Street Journal, 09/11/2008
MarketMinder's View: We also favor a smaller government. But it’s worth noting stock investors needn’t worry much about budget deficits: Historically, peaks in the deficit precede good times for equity markets.
Sensible Stories
By , The Wall Street Journal, 09/11/2008
MarketMinder's View: “The IFC notes that countries with liberalized business regulations frequently grow faster than their peers and are more resilient when tough times hit.” – Great, now lets see even more reform!
Market Misperceptions
By , The Wall Street Journal, 09/11/2008
MarketMinder's View: Historically, trade deficits are not predictive of stocks nor correlated with stock market movements.
Market Misperceptions
By , The New York Times, 09/11/2008
MarketMinder's View: One of the most common investor mistakes is going to cash at the bottom of a downturn, locking in losses, and missing the inevitable bounce back. If you’ve got a long time horizon, stick to stocks now!
Sensible Stories
By , Fortune , 09/11/2008
MarketMinder's View: The laws of supply and demand drive the price of oil far more than speculation. Ultimately, prices are determined by those who take physical delivery of the good from suppliers, not those who place speculative bets in between.
Market Misperceptions
By , Slate, 09/11/2008
MarketMinder's View:
The notion the US—making up roughly 25% of world GDP—will drag down the world is probably misguided. It’s more likely the the other 75% will pull the US along, not vice versa.
Market Misperceptions
By , Investor’s Business Daily, 09/11/2008
MarketMinder's View: Yes, there is risk associated with bailouts and moral hazard is a concern, but in our view the Fannie/Freddie takeover should add stability to the US mortgage market. Please see our 9/9/2008 cover story, “Fate Accompli,” for more.
Market Misperceptions
By , Times Online, 09/11/2008
MarketMinder's View:
We’re not sure we should be relying on the EC for economic forecasting.
Sensible Stories
By , Financial Times, 09/10/2008
MarketMinder's View: National governments have less room for error in today’s global and mobile world. Citizens, companies, and even industries can relocate from one country to another.
Sensible Stories
By , The Financial Times, 09/10/2008
MarketMinder's View: Economic growth is not being constrained by the availability of resources on this planet.
Sensible Stories
By , The Wall Street Journal, 09/10/2008
MarketMinder's View: Developing countries are learning that creating benign tax environments attracts investments.
Sensible Stories
By , SmartMoney, 09/10/2008
MarketMinder's View: “The purpose of our federal tax system should be to raise revenue in a reasonably predictable, efficient, and fair manner. The current system doesn't do any of these things—mainly because it's too complicated to work right.” A convoluted tax system does no one favors. See our cover story, “Some Taxing Facts,” (4/16/2008) for more.
Sensible Stories
By , National Review Online, 09/10/2008
MarketMinder's View: The failings of government intervention in free markets come down to a simple fact: “The government is simply no good at picking winners and losers in the energy market (or any market, for that matter).”
Sensible Stories
By , The Wall Street Journal, 09/10/2008
MarketMinder's View: A fine example of the unintended consequences of government intervention.
Sensible Stories
By , Asia Times Online, 09/10/2008
MarketMinder's View: “If Congress wants to materially reduce the potential for price manipulation in the oil markets, or address consumer price pain, it would do better to focus on the integrity and reliability of oil data, supply side policies, international standardization, inflammatory geopolitics, tariffs and subsidies - and fiscal responsibility generally - than on ‘banning speculation.’” Well said!
Market Misperceptions
By , The Telegraph, 09/10/2008
MarketMinder's View:
Recent movements in the price of gold won’t tell you much about where it’s going next.
Market Misperceptions
By , Bloomberg, 09/10/2008
MarketMinder's View: It is wrong to single out speculation—a natural part of all markets—as cause of recent price volatility. Ultimately, those who take delivery and use the commodities determine prices.
Market Misperceptions
By , Bloomberg, 09/10/2008
MarketMinder's View:
Surveys are not necessarily predictive of the future. Heck, surveys have been predicting a consumer spending stall every month for years!
Market Misperceptions
By , CNBC, 09/10/2008
MarketMinder's View:
A nine-month old recession? That’s news to us. The US economy has been growing steadily for the last nine months—posting a healthy 3.3% GDP gain last quarter.
Sensible Stories
By , The Washington Times, 09/10/2008
MarketMinder's View: Headlines may decry the US trade deficit, but it simply isn’t worth your worry. The US has carried a trade deficit for decades without disaster.
Market Misperceptions
By , Barron’s, 09/10/2008
MarketMinder's View: Large Wall Street financial firms may be struggling, but the important question is whether those ills will sink the broader economy. So far the answer has been a resounding no.
Market Misperceptions
By , Barrons, 09/09/2008
MarketMinder's View: Right or wrong, the Fannie and Freddie bailout isn’t very big in context ($200 billion at most), and it could help calm an important capital markets segment. See today’s cover story, “Fate Accompli,” for more.
 
Sensible Stories
By , Real Clear Markets, 09/09/2008
MarketMinder's View: The world economy is not some sort of zero-sum game—a growing China means good things for all of us, and vice versa.
Market Misperceptions
By , CNNMoney, 09/09/2008
MarketMinder's View: Scary as this seems, 3% of GDP isn’t unheard of for deficits. And history shows high deficits can result in good stock returns. The last time it happened was 2003—a great time to be in stocks.
Market Misperceptions
By , Bloomberg, 09/09/2008
MarketMinder's View: We agree GDP has its flaws, but then again so must GDI. And just because we “feel” it’s a recession (via consumer confidence surveys) doesn’t mean we should favor one flawed economic indicator supporting our “feeling” over another refuting it.
Market Misperceptions
By , MarketWatch, 09/09/2008
MarketMinder's View:
The fact more stocks did not rise in value over one day is not bearish.
Market Misperceptions
By , USA Today, 09/09/2008
MarketMinder's View:
Unemployment isn’t as bad as many believe—it’s just a bit above its long-term average, including a couple decades of historically low unemployment. Further, it shouldn’t surprise anyone that California is having trouble paying its bills.
Sensible Stories
By , Time, 09/09/2008
MarketMinder's View: We agree that so far government reaction to these difficult times has been mostly measured and appropriate.
Market Misperceptions
By , The New York Times, 09/08/2008
MarketMinder's View:
P/E ratios don’t tell us anything meaningful about the stock market’s direction. Just take a look at the last twenty years.
Market Misperceptions
By , Bloomberg, 09/08/2008
MarketMinder's View:
Yes, some companies take on more debt than they should. But on balance, corporations use leverage wisely and prosper because of it.
Market Misperceptions
By , The Wall Street Journal, 09/08/2008
MarketMinder's View: Maybe the pound will continue to fall, maybe it won’t. Nobody knows for sure. Regardless, currency movement doesn’t affect stocks.
Sensible Stories
By , Bloomberg, 09/08/2008
MarketMinder's View: The economy continues to fare better than many believe—but don’t just take our word for it. Check this out.
Sensible Stories
By , The Economist, 09/08/2008
MarketMinder's View: Free markets provide the arena for innovators to compete and ultimately achieve great things. Monetary rewards provide the incentive.
Market Misperceptions
By , MSN Money, 09/08/2008
MarketMinder's View:
People can always find a reason to be bearish, no matter how much good news you throw at them.
Market Misperceptions
By , Reuters, 09/08/2008
MarketMinder's View: An OPEC meeting that accomplishes little to nothing isn’t new. Ignore.
Sensible Stories
By , The Wall Street Journal, 09/08/2008
MarketMinder's View: “The only reason we should bail out any private company is the risk that its demise would wreak havoc on the entire economy.” We agree. The US auto industry is bloated, inefficient, and in need of massive restructuring.
Market Misperceptions
By , The New York Sun, 09/08/2008
MarketMinder's View: We understand the free market argument here. But with all its whining, the article ignores the fact that Fannie and Freddie were government sanctioned entities to begin with. The magnitude of the bailout isn’t very big and, in our view, doesn’t present the moral hazard many believe.
Sensible Stories
By , The Wall Street Journal, 09/08/2008
MarketMinder's View: The move was expected, but the timing was uncertain. Regardless, the takeover will go a long way towards soothing concerns in many areas of the housing market.
Sensible Stories
By , Times Online, 09/08/2008
MarketMinder's View: Whether you agree with government intervention or not, there is further evidence today that markets do not like uncertainty.
Sensible Stories
By , The Wall Street Journal , 09/05/2008
MarketMinder's View: With companies flush with cash—and credit more widely available to big corporations with high ratings than generally believed—expect high M&A to continue.
Market Misperceptions
By , Bloomberg, 09/05/2008
MarketMinder's View: Foreclosures have reached new highs, but they are still only 1.2%. Said differently: Years now into the housing downturn, 98.8% of mortgages aren’t foreclosing.
Market Misperceptions
By , Bloomberg, 09/05/2008
MarketMinder's View: Well, it might. Then it might go back up. Then it might go sideways for awhile. Reporting what might happen isn’t instructive. For more, see our 9/4/08 cover story, “It Could Happen to You.”
Market Misperceptions
By , Bloomberg, 09/05/2008
MarketMinder's View: This feels scary, but note the current rate is only slightly above the historical average, and importantly, employment figures have never been a reliable leading indicator for stocks or the economy.
Market Misperceptions
By , Times Online, 09/05/2008
MarketMinder's View:
We wish the UN would focus more on what they do well—if only we could figure out what that is.
Market Misperceptions
By , The Wall Street Journal, 09/05/2008
MarketMinder's View:
The Doha round has dragged on for seven years, it makes sense to seek more feasible alternatives to reducing trade barriers.
Sensible Stories
By , Forbes, 09/05/2008
MarketMinder's View: When it comes to legislation, less is more. Thankfully, gridlock in the US Congress seems set to continue—along with the drought of new legislation.
Market Misperceptions
By , Bloomberg, 09/05/2008
MarketMinder's View: Holy anecdotal evidence, Batman! Ignore stories like this—they may grab your attention, but aren’t predictive of much. For more, see our 7/31/08 cover story “Long Train Runnin’.”
Sensible Stories
By , Motley Fool , 09/05/2008
MarketMinder's View: Trying to time short-term market moves is counterproductive for a number of reasons. You can add tax implications to the list.
Sensible Stories
By , Financial Times, 09/05/2008
MarketMinder's View: “First, there has been no sharp jump in interest rates, unlike in the run-up to the previous recessions; second, the link between the housing market and consumer spending is overstated; and, third, the declines in reported consumer (and producer) sentiment do not tell one much about likely behavior.” We agree—things aren’t great, but the sky isn’t falling.
Sensible Stories
By , The New York Times, 09/05/2008
MarketMinder's View: As the world becomes more open it will become easier for companies to move to more benign tax regimes. Ultimately we hope this creates downward pressure on tax levels.
Market Misperceptions
By , CNNMoney, 09/05/2008
MarketMinder's View: Artificial wage controls, like all free-market meddling, have unintended, negative consequences.
Sensible Stories
By , The Wall Street Journal, 09/04/2008
MarketMinder's View: We’re wary of the wage-price spiral inflation argument, but the fact remains higher productivity is a net positive for the US economy.
Market Misperceptions
By , The New York Times, 09/04/2008
MarketMinder's View:
Hold on, everyone was bearish about the 2nd Quarter too, we know what happenend there.
Market Misperceptions
By , The Times, 09/04/2008
MarketMinder's View: Weekly numbers are highly volatile and certainly not worthy of drawing snap conclusions. The longer-term average of initial unemployment claims remains benign and well within historical averages.
Sensible Stories
By , The Wall Street Journal, 09/04/2008
MarketMinder's View: It’s always important to keep an eye on the world’s central banks. So far, their actions seem, in our view, largely appropriate.
Sensible Stories
By , The Wall Street Journal, 09/04/2008
MarketMinder's View: While monthly manufacturing data isn’t predictive for stocks, it’s a good sign it’s been consistently growing, and an indication the US economy is healthier than many believe.
Market Misperceptions
By , Slate, 09/04/2008
MarketMinder's View: Vigilance is key, but we aren’t panicking—long-term treasury yields, a much better gauge of inflation expectations than surveys, remain benign.

 

Sensible Stories
By , Briefing.com, 09/04/2008
MarketMinder's View: A solid rundown of still-strong economic fundamentals. While we disagree with the view on seasonality (at least, as it pertains to stock returns), we wholeheartedly agree a recovery lies ahead.
Sensible Stories
By , Times Online, 09/04/2008
MarketMinder's View: It’s no surprise that governments often make the wrong choices but it’s heartening to know the economy is more resilient and flexible than the OECD would have you believe.
Sensible Stories
By , The Times, 09/04/2008
MarketMinder's View: “There is no evidence that City gurus are able to predict the stock market, and some widely used techniques—such as extrapolating from past price changes—are no more scientific than alchemy.” Exactly—no one has a crystal ball.
Sensible Stories
By , Financial Times, 09/04/2008
MarketMinder's View: Wouldn't it be nice to live in a world with less barriers to trade?
Sensible Stories
By , The Times, 09/04/2008
MarketMinder's View: Investing according to what folks say could or might happen often leads to downfall. See today’s cover story, “It Could Happen to You,” for more.
Market Misperceptions
By , Fortune, 09/04/2008
MarketMinder's View:
Fears of a recession-led slowdown in demand for oil are unfounded. Most developing countries—the largest contributors to oil demand growth—are still growing robustly.
Market Misperceptions
By , The Motley Fool, 09/04/2008
MarketMinder's View: Lay off of Diddy! And don’t scapegoat imports for the “credit crunch.” Fact is increased international trade is good for all parties—protectionist sentiment is what’s dangerous.
Market Misperceptions
By , Asia Times, 09/04/2008
MarketMinder's View:
Accusing the masses of being too optimistic today is, in our opinion, amazingly over pessimistic. Ignore these predictions categorically.
Market Misperceptions
By , Associated Press, 09/03/2008
MarketMinder's View:
First rising oil is the problem, then falling oil is the problem—which is it? Truth is, investors shouldn’t fear oil price movements—there is no historical correlation between oil and stock prices.
Sensible Stories
By , The Wall Street Journal, 09/03/2008
MarketMinder's View: We’re not sure if there’s a linear relationship between Russian government action and its market returns, but government interference in business certainly causes investor uncertainty.
Sensible Stories
By , International Herald Tribune, 09/03/2008
MarketMinder's View: Japan’s next prime minister could portend meaningful changes in Japan—or not. Either way, the political turnover is worth paying attention to. See today’s cover story, “The Silliest Season,” for more.
Market Misperceptions
By , Reuters, 09/03/2008
MarketMinder's View: Forecasters are always hedging their bets—nothing new here. Forecasts by nature are guesstimates at best and don’t necessarily translate to reality.
Market Misperceptions
By , Reuters, 09/03/2008
MarketMinder's View: Japan didn’t become the second-largest economy by being isolationist—global trade is ultimately a positive for all economies.
Market Misperceptions
By , The Wall Street Journal, 09/03/2008
MarketMinder's View: As noted, Chinese holdings of Fannie and Freddie debt are just a “small fraction of the trillions of dollars outstanding.” Plus, Chinese banks are unlikely to let their cash-rich coffers idle—these funds will likely be reinvested domestically and globally.
Sensible Stories
By , VoxEU, 09/03/2008
MarketMinder's View: It’s amazing how profit incentives boost productivity and encourage innovation.
Sensible Stories
By , The Wall Street Journal, 09/03/2008
MarketMinder's View: It’s always heartening when Governments’ introduce tax cuts. Might we suggest more countries should follow suit if they really want to encourage growth.
Market Misperceptions
By , The New Republic, 09/03/2008
MarketMinder's View:
Making comparisons of any sort between the 1930’s and today should only lead you to conclude that things are not that bad right now.
Sensible Stories
By , The Wall Street Journal, 09/03/2008
MarketMinder's View: Benchmarking is important when investing—and choosing a proper benchmark can be critical.
Sensible Stories
By , International Herald Tribune, 09/02/2008
MarketMinder's View: Connoisseurs are easily tricked—especially when they think they can’t possibly be wrong. Such cognitive biases commonly lead investors astray too.
Sensible Stories
By , National Post, 09/02/2008
MarketMinder's View: A lucid take on why we’ll never run out of oil.
Sensible Stories
By , CNNMoney, 09/02/2008
MarketMinder's View: Capital markets are functioning fine—here we find beleaguered Freddie Mac selling debt at yields just a bit more than risk-free government treasuries.
Market Misperceptions
By , The Wall Street Journal, 09/02/2008
MarketMinder's View: Despite insistent coverage of revision-prone monthly index and government data, these so-called indicators are of little forecasting use to long-term, global investors.
Sensible Stories
By , Reuters, 09/02/2008
MarketMinder's View: Political uncertainty in the world’s second-largest economy warrants investor attention.
Market Misperceptions
By , MSNBC, 09/02/2008
MarketMinder's View: This is preposterous. Consumer spending and disposable income have grown consistently over the last years with or without rebate checks.
Sensible Stories
By , The Wall Street Journal, 09/02/2008
MarketMinder's View: Free global capital markets allow investment capital to flow where it’s needed most and opportunities are perceived.
Market Misperceptions
By , The Times, 09/02/2008
MarketMinder's View: Seasonality is an ancient investing myth—there is no rational market theory based reason (especially in a massive, complex global economy like ours) why one month or set of months is better or worse than any another. Even if there was, it would be priced in quickly by investors and thus lose its efficacy.
Sensible Stories
By , 09/02/2008
MarketMinder's View: If completed this could be a sizeable global merger. Strategic M&A continues to restrain stock supply.
Market Misperceptions
By , The New York Times, 09/02/2008
MarketMinder's View:
Markets always demonstrate a degree of anxiety, this is nothing new—there is anxiety in both good and bad markets.
Sensible Stories
By , National Review, 09/02/2008
MarketMinder's View: Indeed they were—this is bullish!
Market Misperceptions
By , Bloomberg, 09/02/2008
MarketMinder's View: Are we sure it’s not 25.9 or 25.7? Beware basing investment decisions on arbitrary thresholds.
Sensible Stories
By , Times Online, 09/01/2008
MarketMinder's View: We’re glad that’s been cleared up then. Politicians are generally not adept at reporting what’s actually happening.
Market Misperceptions
By , The Telegraph, 09/01/2008
MarketMinder's View:
We haven’t even seen one quarter of contraction in the UK!