Home → Fisher Investments MarketMinder Headlines → 09-2010 Archives

Sensible Stories
By , Reuters, 09/30/2010
MarketMinder's View: Protectionist policies are ill-advised. Hopefully, this just turns out to be pre-election saber-rattling. For more, see today’s cover story, “The Threat of Tit for Tat.”
Sensible Stories
By , MSN Money, 09/30/2010
MarketMinder's View: “The good news is that periods of stocks underperforming bonds are historically very rare and don't tend to last long. After all, stocks offer something bonds can't: the opportunity to profit from earnings growth. Plus stock returns offer a measure of inflation protection, which bonds lack.” Enough said and AMEN!
Market Misperceptions
By , Daily Finance, 09/30/2010
MarketMinder's View: We agree it pays to look for investment opportunities overseas, but that doesn’t mean US stocks won’t continue to provide healthy returns. With all due respect, Mr. Gross has proven himself to be a wise bond investor, but his stock market forecasts have often been way off the mark. We’d argue this one is too.
Sensible Stories
By , The New York Times, 09/30/2010
MarketMinder's View: The bailout of financial and auto firms was painted as money going down a black hole. Now those funds are being repaid—and then some!
Sensible Stories
By , Bloomberg, 09/30/2010
MarketMinder's View: “Companies are boosting orders for manufactured goods as they replace outdated equipment and rebuild inventory in line with gains in consumer spending, while demand from overseas is bearing up.” Further evidence the US and global recovery carries on.
Sensible Stories
By , The Street, 09/30/2010
MarketMinder's View: Even this better-than-expected GDP revision doesn’t properly reflect our economic well-being. Imports—which represent demand for goods and indicate economic health—are subtracted from GDP.
Market Misperceptions
By , Reueters, 09/30/2010
MarketMinder's View: Forgive us if we’re skeptical politicians or regulators will be able to “spot and defuse the next financial crisis.” They haven’t in the past, and there’s little in the FinReg bill that even addresses issues that contributed to the last financial crisis.
Market Misperceptions
By , Reason.com, 09/30/2010
MarketMinder's View: Despite the skulls, ravens, and gargoyles, debt and deficit levels aren’t nearly as scary as most folks think. For more, see our 06/10/2010 cover story “Debunking Debt Concerns.”
Market Misperceptions
By , The New York Times, 09/30/2010
MarketMinder's View: No new news here—the downgrade was widely expected. As we’ve said, ratings agencies have dubious track records at best.
Market Misperceptions
By , Seeking Alpha, 09/29/2010
MarketMinder's View:
It’s impossible to predict when housing will recover. But even if the housing market does languish, the overall economy can continue to grow. For more, see our 08/25/2010 cover story, “Distorted Housing’s a Drag.”
Sensible Stories
By , Seeking Alpha, 09/29/2010
MarketMinder's View: “Investors should worry when confidence is high, as it was before every recession in the past.” We couldn’t agree more.
Sensible Stories
By , Dow Jones Newswires, 09/29/2010
MarketMinder's View: Despite the current troubles in Ireland, German Chancellor Merkel rightly concludes “there is at present no reason to name any particular country that might tap this fund.” For more, see our 08/27/2010 cover story, “Troubles on Emerald Isle?”
Sensible Stories
By , Bloomberg, 09/29/2010
MarketMinder's View: A bullish signal—shipping orders are up as retailers replace record low inventories ahead of a possible bright holiday sales season.
Market Misperceptions
By , Reuters, 09/29/2010
MarketMinder's View:
Consumer confidence surveys offer little insight into the future health of capital markets or stocks.
Market Misperceptions
By , Bloomberg, 09/29/2010
MarketMinder's View:
Let’s set the record straight here: This is just a story about a survey on actions Moody’s “might” take. And even if Moody’s does downgrade Spain’s rating to Aa2—who cares? Moody’s (and the other rating agencies) are just analysts with dubious track records—nothing more.
Sensible Stories
By , Fortune, 09/29/2010
MarketMinder's View: “Now is not the time to get carried away and load up on the stuff.” Solid advice.
Market Misperceptions
By , Reuters, 09/29/2010
MarketMinder's View:
Though this is likely just political saber-rattling ahead of the midterm elections, measures adding friction to global trade are almost always bad policy. For more, see our 09/17/2010 cover story, “Show Me the Yuan.”
Sensible Stories
By , MarketWatch, 09/29/2010
MarketMinder's View: Bucking recent headlines to the contrary, Chinese manufacturing remains firmly in expansionary territory. For more, see our 08/03/2010 cover story, “Fuzzy Manufacturing Math.”
Sensible Stories
By , Bloomberg, 09/29/2010
MarketMinder's View: M&A activity surged in Q3 as cash-rich firms completed the most corporate deals in over two years. Cash-based M&As shrink the overall stock supply—a bullish sign for stock prices.
Sensible Stories
By , Bankstocks.com, 09/29/2010
MarketMinder's View: A must-read on the negative impact of inappropriately applied mark-to-market accounting rules. For more, see our 03/11/2009 cover story, “Fahrenheit 157.”
Market Misperceptions
By , Smart Money, 09/28/2010
MarketMinder's View:
Statistical modeling is all well and good, but such programs can’t predict the future and can only guess what happens to stocks in the wake of huge disasters or events. Even then, “at times, the site suffers from gaps in some of its more obscure sources—it had no ideas for stocks that would likely rally if uranium prices fall, for example.” Models can only describe, they can’t predict.
Sensible Stories
By , International Business Times, 09/28/2010
MarketMinder's View: More evidence the global economic recovery continues.
Market Misperceptions
By , The Street, 09/28/2010
MarketMinder's View:
We wouldn’t recommend putting much stock in a consumer survey that just asks people how they feel about the economy. It’s better to look at underlying economic data—and with continued GDP growth, better retail numbers, and increased manufacturing numbers, it looks like the economy’s doing just fine.
Market Misperceptions
By , The New York Times, 09/28/2010
MarketMinder's View:
After every recession, some folks always say it’s a new normal—yet that’s never been the case. The US economy will recover—maybe not quickly enough for some, but it will recover. Economies are never in a continuous upward trajectory, there are booms and busts, and that’s normal.
Sensible Stories
By , Daily Finance, 09/28/2010
MarketMinder's View: More confirmation of the ongoing expansion. Not too surprising since Emerging Markets led the world into economic recovery—and will likely continue doing so for some time.
Sensible Stories
By , The Wall Street Journal, 09/28/2010
MarketMinder's View: Despite some folks still squealing about the PIIGS’ imminent demise, investor appetite for European sovereign debt is still healthy. See our 07/15/2010 cover story, “On PIIGS and Needles,” for more.
Sensible Stories
By , BloggingStocks, 09/28/2010
MarketMinder's View: Gold vending machines? We agree, it’s “strong evidence that retail investors and water-cooler chatter have pushed their way into the market.” We’ve said before, gold hasn’t been a good long-term investment. See our 02/12/2010 cover story, “Gold’s Safety Blanket Myth,” for more.
Market Misperceptions
By , Los Angeles Times, 09/27/2010
MarketMinder's View: Nah. The American entrepreneurial spirit has thus far won out over any political nonsense that’s been thrown our way.
Sensible Stories
By , The New York Times, 09/27/2010
MarketMinder's View: Lending in the eurozone regains footing as the global recovery surges on.
Sensible Stories
By , Fox Business, 09/27/2010
MarketMinder's View: It would be nice to see AIG (and all firms that received heavy government involvement) be unfettered once again. Then again, we’ll believe it when we see it.
Market Misperceptions
By , The New York Times, 09/27/2010
MarketMinder's View: No ifs, ands, or buts. Gridlock is great and you can see that in history. For more, see our 08/24/2010 cover story, “Gridlock is Great.”
Market Misperceptions
By , CNN , 09/27/2010
MarketMinder's View:
Survey says…look at the facts. “Feelings” are rarely (if ever) a good economic indicator. For more, see our 09/21/2010 cover story, “And So It Ends.”
Market Misperceptions
By , Real Clear Markets, 09/27/2010
MarketMinder's View: Trade wars are always a negative. And an all-out trade war with China is a risk but likely a distant one. For more, see our 09/17/2010 cover story, “Show Me the Yuan.”
Sensible Stories
By , The Guardian, 09/27/2010
MarketMinder's View: Good news from across the pond! As we’ve said before, the financial sector was hit the hardest and would likely be one of the last to recover. A bit of patience pays off.
Market Misperceptions
By , Daily Finance , 09/27/2010
MarketMinder's View: It’s astounding to us how few people identify FAS/IASB 157 (fair value accounting) as perhaps the most important compounding effect causing the credit crisis. Without it, we wouldn’t have had devastating, non-stop rounds of bank asset write-downs. No one we can find of any seriousness believes “fees” caused credit markets to seize.
Sensible Stories
By , Barron’s, 09/27/2010
MarketMinder's View: “Investors have overstated the problems facing the markets and the economy. The long-term outlook is for gains by stocks.” We agree—and also note it’s quite normal for investors to remain dour on stocks. That’s the wall of worry stocks climb.
Market Misperceptions
By , The Wall Street Journal, 09/27/2010
MarketMinder's View:
True, small banks have continued to fail, but this is to be expected after a major crisis. More importantly, the financial system has grown much healthier over the last two years.
Sensible Stories
By , Daily Finance , 09/27/2010
MarketMinder's View: Positive strides in US capital goods orders are carrying over into Asian markets—more evidence global economies are recovering.
Sensible Stories
By , Bloomberg Businessweek, 09/24/2010
MarketMinder's View: There’s no guarantee a rising yuan would reverse the trade deficit, and a trade war would be far costlier. Luckily, this is likely election season rhetoric—pointing fingers overseas to defuse blame back home. For more, see our 9/17/2010 cover story, “Show Me the Yuan.”
Sensible Stories
By , Bloomberg, 09/24/2010
MarketMinder's View: Business spending has been and continues to be a chief economic driver—and with plenty of corporate cash to spare, we don’t think that’ll change.
Market Misperceptions
By , The Washington Post, 09/24/2010
MarketMinder's View:
Timing the stock market is a very difficult game. Even if you get the exit right, missing reentry can be a costly mistake. Investors just getting back in now have missed a huge bull bounce.
Sensible Stories
By , The Washington Post, 09/24/2010
MarketMinder's View: Though currently unpopular, newly enacted financial regulation is vastly watered down from the original proposal—and the fact bankers aren’t particularly worried is good news.
Market Misperceptions
By , The New York Times, 09/24/2010
MarketMinder's View:
But this is great news! The more gridlock, the better for markets, in our view. For more, see our 08/24/2010 cover story, “Gridlock Is Great.”
Market Misperceptions
By , SmartMoney, 09/24/2010
MarketMinder's View:
GDP isn’t a perfect window into economic health, nor is it the only indicator NBER uses to determine economic cycles. But it is one useful tool helping separate feeling from fact. 
Market Misperceptions
By , Bloomberg, 09/24/2010
MarketMinder's View:
There’s nothing protective about shiny metals—and this story unwittingly illustrates that. Silver is just now up from where it was 30 years ago. Translation: it was down from its peak for the last three decades. For more, see our 02/12/2010 cover story, “Gold’s Safety Blanket Myth.”
Sensible Stories
By , Bloomberg, 09/24/2010
MarketMinder's View: Germany’s economy may ease off Q2’s blistering pace, but it should keep reaping benefits from the global recovery.
Market Misperceptions
By , CNN Money, 09/24/2010
MarketMinder's View:
Investors shouldn’t rely solely on Emerging Markets, but neither should they be ignored—developing countries have provided great opportunities lately and don’t appear out of steam yet.
Market Misperceptions
By , The New York Times, 09/24/2010
MarketMinder's View:
The banking system is still recovering but is vastly improved from two years ago. And the only recently feared European financial collapse appears ever more unlikely. For more, see our 09/08/2010 cover story, “A Bearish Back-and-Forth.”
Sensible Stories
By , Bloomberg, 09/23/2010
MarketMinder's View: “The index of US leading indicators rose in August more than forecast, signaling the economy will keep expanding through early next year.” The LEI is an imperfect indicator, but this does seem to confirm the fact that expansion continues.
Market Misperceptions
By , Seeking Alpha, 09/23/2010
MarketMinder's View:
Ah, yes. These are the worries bull markets love to climb and are typical after a recession’s end. For more, see our 09/21/2010 cover story, “And So It Ends.”
Sensible Stories
By , International Business Times , 09/23/2010
MarketMinder's View: Not surprising. Firms have record stockpiles of cash and will start deploying them—which is a very bullish factor.
Sensible Stories
By , The New York Times, 09/23/2010
MarketMinder's View: This is fine news, but keep in mind, housing has been weak during the entirety of the recovery thus far. An improving housing market helps some, but isn’t vital to continued expansion.
Market Misperceptions
By , MarketWatch, 09/23/2010
MarketMinder's View:
Yes, eurozone PMI disappointed this past month, but keep in mind, it is still signaling expansion. It’s normal for expansions to speed and decelerate. That isn’t a sign of returning doom.
Market Misperceptions
By , CNBC, 09/23/2010
MarketMinder's View:
Well, yes, if you are a proponent for manipulating your currency, of course you would say this. Further, such a big rise in a short span is hardly likely given China’s tendency to closely manage its currency. For more, see our 09/17/2010 cover story, “Show Me the Yuan.”
Market Misperceptions
By , The Globe and Mail, 09/23/2010
MarketMinder's View:
Well, NBER sure disagrees this is a depression.  For more, see our 09/21/2010 cover story, “And So It Ends.”
Sensible Stories
By , The Guardian, 09/23/2010
MarketMinder's View: Absolutely. All hail free trade!
Market Misperceptions
By , The Street, 09/23/2010
MarketMinder's View:
The fact is, to a global investor, over the long term, currency fluctuation impacts net out close to zero. So weak or strong, the dollar direction doesn’t matter for stocks.
Market Misperceptions
By , Daily Finance, 09/22/2010
MarketMinder's View:
Don’t follow the gold bugs. The precious metal might feel “safe” in the short term, but long-term returns show something else entirely. For more, see our 02/12/2010 cover story, “Gold’s Safety Blanket Myth.”
Market Misperceptions
By , Fox Business, 09/22/2010
MarketMinder's View:
Well, they can do what they want, but taxing bank profits is certainly not “pro-business.”
Sensible Stories
By , Daily Finance, 09/22/2010
MarketMinder's View: The Fed is keeping policy unchanged for now, but stands ready to step in if needed. For more, see today’s cover story, “Skin and Bones.”
Sensible Stories
By , The Wall Street Journal, 09/22/2010
MarketMinder's View: Remember the PIIGS? For more, see our 07/30/2010 cover story, “Silence of the PIIGS.”
Market Misperceptions
By , USA Today, 09/22/2010
MarketMinder's View:
Unemployment remains persistently high, which, though painful, is normal after a recession. Remember, growth creates jobs, not the other way around. We’re already starting to see growth—now patience is required as economic growth begins to create jobs.
Market Misperceptions
By , BBC News, 09/22/2010
MarketMinder's View:
This makes no sense at all! The likelihood of the UK returning to recession is "unlikely," yet recovery is “fragile”? Sounds like folks are just dour—normal in an early recovery.
Sensible Stories
By , Bloomberg, 09/22/2010
MarketMinder's View: Treasury Secretary Geithner rightly concludes the new Basell III standards will likely have little impact on US banks.
Market Misperceptions
By , Time, 09/22/2010
MarketMinder's View:
Simply, no—most likely not, not by a long shot. For more, see our 08/27/2010 cover story, “Troubles on Emerald Isle?”
Sensible Stories
By , The Street, 09/22/2010
MarketMinder's View: Emerging Markets, a bright spot in the global recovery so far, look poised to continue their run.
Sensible Stories
By , Central News Agency, 09/21/2010
MarketMinder's View: Emerging Markets (particularly in Asia) continue to lead the global economic recovery—and will likely continue for some time, especially as multinational firms look to base new offices there.
Market Misperceptions
By , Barron’s, 09/21/2010
MarketMinder's View:
“This cycle is different because it was the result of a plunge in wealth.” Actually, the plunge in wealth was due to the recession and bear market, not the other way around. And that’s normal.
Sensible Stories
By , The Wall Street Journal, 09/21/2010
MarketMinder's View: Ah yes. The law of unintended consequences of government involvement.
Sensible Stories
By , The Wall Street Journal, 09/21/2010
MarketMinder's View: Evidence the recovery continues as Emerging Markets increase the pace of infrastructure build-outs.
Market Misperceptions
By , The Motley Fool, 09/21/2010
MarketMinder's View:
Silver, like gold, is simply a commodity—and both metals’ long-term returns trail that of stocks. Ignore.
Market Misperceptions
By , Daily Finance, 09/21/2010
MarketMinder's View:
Maybe. Maybe not. And the OECD hardly has a pristine record for forecasting employment. More importantly, employment typically recovers well after stocks and the economy—and may recover faster than some expect. For more, see today’s cover story, “And So It Ends.”
Sensible Stories
By , BBC News, 09/21/2010
MarketMinder's View: Investor appetite for European sovereign debt remains healthy—even for PIIGS.
Market Misperceptions
By , MarketWatch, 09/21/2010
MarketMinder's View:
We’ve said it before: Stimulus takes time to work its way through the economy. Government spending is rarely (if ever) well-spent and effective—it’s subsequent spending by businesses and consumers that make stimulus work. See our 01/14/2009 cover story, “Patience With Punches,” for more.
Sensible Stories
By , Bloomberg, 09/20/2010
MarketMinder's View: “Record-low interest rates are stoking the biggest increase in U.S. share buybacks ever.” Firms are starting to deploy their historically massive cash stockpiles.
Market Misperceptions
By , Bloomberg, 09/20/2010
MarketMinder's View: First we fretted the EU. Then the US. Now the EU is a risk again? Either way, the world continues to grow. And Fed forecasts are typically less than laser accurate.
Market Misperceptions
By , MarketWatch, 09/20/2010
MarketMinder's View: Whether they do or not actually impacts the world less than most think. Manipulating your currency, long term, is less than ideal. But if the Chinese want to keep selling us cheap goods, we should take them up on it. For more, see our 09/17/2010 cover story, “Show Me the Yuan.”
Sensible Stories
By , The New York Times, 09/20/2010
MarketMinder's View: The NBER announced officially the recession ended in June 2009. Yes, you read that correctly—15 months ago. Positive, but highly unsurprising “news.”
Market Misperceptions
By , The Independent, 09/20/2010
MarketMinder's View: It’s actually quite the opposite. In this downturn, the world’s central banks did almost the exact opposite of what Japan did early in its “Lost Decade.”
Market Misperceptions
By , The New York Times , 09/20/2010
MarketMinder's View: Yes, the job market remains tough. And it’s especially tough if you are unemployed. But as the NBER people point out, the economy can and does recover even before employment improves.
Sensible Stories
By , The New York Times , 09/20/2010
MarketMinder's View: They weigh lots of things they don’t act on. With the recession officially over for more than a year, the Fed may decide more stimulus isn’t warranted. But, ultimately, this will likely be a political decision.
Market Misperceptions
By , Los Angeles Times, 09/20/2010
MarketMinder's View: While we won’t disagree land can be a prosperous investment, we will say it’s hardly a better option over stocks long term. And it’s certainly less liquid.
Market Misperceptions
By , The Wall Street Journal, 09/20/2010
MarketMinder's View: Business spending has risen sharply the past two quarters—the fact corporate cash balances didn’t change much in Q2 speaks to huge profits replacing cash spent, not hoarding. Plus, all that cash getting deployed will be an additional bullish driver.
Market Misperceptions
By , The Independent, 09/17/2010
MarketMinder's View: A lot of America is working in fact. And unemployment is recovering just as the economy did (and still does). Historically, this is how it works—first comes the economy, then comes the job market.
Sensible Stories
By , Carpe Diem, 09/17/2010
MarketMinder's View: Our sentiments exactly. For more, see today’s cover story, “Show Me the Yuan.”
Sensible Stories
By , The Wall Street Journal, 09/17/2010
MarketMinder's View: Not long ago, many worried inflation would spiral out of control. Now, deflation is an equal concern. But recent consumer prices show consumer prices are benign—not too hot or too cold.
Sensible Stories
By , CNN Money, 09/17/2010
MarketMinder's View: “The truth is that the European economies are doing better than expected.” Many feared a weakened Europe would bring down the global recovery, but eurozone countries have proven much more resilient than most expected.
Sensible Stories
By , Businessweek, 09/17/2010
MarketMinder's View: Yes! And this article lists a few great reasons why. Bottom line: “Signs of nervousness about stocks are convincing contrarian investors that this is a smart time to put money into the market.”
Market Misperceptions
By , Newsweek, 09/17/2010
MarketMinder's View: Who puts that much stock in what economists have to say anyway? Investment decisions shouldn’t be made solely on the predictions of these people. They’re hardly soothsayers—just educated people making educated guesses at future market conditions.
Market Misperceptions
By , MSNBC, 09/17/2010
MarketMinder's View: Why can’t we all just get along? But really, the truth is our relationship with China is just fine, and a trade war isn’t in either country’s interests. For more, see today’s cover story, “Show Me the Yuan.”
Sensible Stories
By , The Wall Street Journal, 09/17/2010
MarketMinder's View: The SEC tightens rules on banks’ debt limitations—worth keeping an eye on.
Market Misperceptions
By , Yahoo! Finance, 09/17/2010
MarketMinder's View: Dour consumer sentiment doesn’t portend bad stock market returns. In fact, pessimistic times are likely a good sign for investors to stay disciplined in the market.
Sensible Stories
By , Businessweek, 09/16/2010
MarketMinder's View: Despite the grumbling the world thinks the US economy is troubled, there sure is a lot of interest in US financial assets.
Sensible Stories
By , Businessweek, 09/16/2010
MarketMinder's View: “But someone’s exports are another country’s imports so they can’t all win”—no one country can go it alone. For more, see today’s cover story, “Yen-tervention.”
Sensible Stories
By , The Wall Street Journal, 09/16/2010
MarketMinder's View: It’s quite normal for the media to be prone to dourness following a bear market and recession—but here’s a look at what’s right in the world.
Market Misperceptions
By , The Washington Post, 09/16/2010
MarketMinder's View:
First, there are conflicting quotes in this article: “The latest sign of a recovery that is decelerating” and “the modest growth in industrial production was evidence that the economy is not dipping into a new recession, or extended period of contraction.” Second, growth is growth—faster is better, but slow is still positive.
Market Misperceptions
By , Barron’s, 09/16/2010
MarketMinder's View: The VIX is inherently faulty as a forward-looking forecasting tool. For more, see our cover 08/26/2010 cover story, “Uncharted Territory.”
Market Misperceptions
By , Businessweek, 09/16/2010
MarketMinder's View:
Nor are they any riskier. Basel III’s short-term impact may be looser lending and an extended period to raise the reserves required—all good for stocks and the economy. For more, see our 09/14/2010 cover story, “Deconstructing the Wall of Worry.”
Sensible Stories
By , Associated Press, 09/16/2010
MarketMinder's View: Despite its ambiguous title, this is positive news “that could be viewed as a healing sign for the US economy as Americans slowly regain their appetite to spend.” For more, see our 08/31/2010 cover story, “Retail Therapy.”
Market Misperceptions
By , MarketWatch, 09/16/2010
MarketMinder's View: Political pressures regarding the yuan are definitely a better option than a trade war, but so far have been mildly effective. For more, see our 05/13/2010 cover story, “Little Inflation in Big China.”
Sensible Stories
By , Dow Jones Newswires, 09/15/2010
MarketMinder's View: More positive economic data supporting continued US economic growth.
Sensible Stories
By , Agence France-Presse , 09/15/2010
MarketMinder's View: Australia’s ruling coalition’s majority was so slim, it’s unlikely any material legislation will pass—usually good news for markets. For more, see our 08/24/2010 cover story, “Gridlock Is Great.”
Market Misperceptions
By , The Wall Street Journal, 09/15/2010
MarketMinder's View:
“The cult of the bond” will likely never die—some folks simply prefer the perceived “safety” of bonds. But for long-term investors, stocks are typically a better investment since, over time, stocks’ returns tend to beat bonds’.
Market Misperceptions
By , Daily Finance, 09/15/2010
MarketMinder's View:
Focusing solely on the state of US consumers misses key points. Not only are US consumers in better shape than most perceive (and pulled back only slightly during recession), but other GDP components like exports and business spending should experience the biggest rebound. And investors would do well to look globally where many economies are growing faster than the US.
Sensible Stories
By , SME Times , 09/15/2010
MarketMinder's View: No surprise here. China (and other Emerging Markets) are playing a key role in this economic recovery—and will likely continue doing so for the near term.
Market Misperceptions
By , Daily Finance, 09/15/2010
MarketMinder's View:
The economy isn’t completely out of the woods, but recent data shows recovery continues.
Market Misperceptions
By , Fortune, 09/15/2010
MarketMinder's View:
Raising taxes isn’t an economic panacea. In fact, it could have the opposite intended effect—weighing on the economy and actually producing less in tax receipts.
Sensible Stories
By , The Wall Street Journal, 09/15/2010
MarketMinder's View: Efforts to invigorate the Japanese economy are admirable, but without a coordinated effort among countries, Japan might find its ability to influence exchange rates fleeting.
Sensible Stories
By , The Wall Street Journal , 09/14/2010
MarketMinder's View: Disproving claims of the death of the American consumer—US retail sales posted better-than-expected gains in August, rising for the second consecutive month.
Sensible Stories
By , International Business Times , 09/14/2010
MarketMinder's View: In a bullish sign for stocks, the Basel III reforms aren’t as onerous as many expected. For more, see our 09/14/2010 cover story “Deconstructing a Wall of Worry.”
Sensible Stories
By , USA Today, 09/14/2010
MarketMinder's View: Recent economic data continues to indicate fears of a double-dip are unfounded. For more, see our 09/07/2010 cover story, “Dumb Bears.”
Market Misperceptions
By , The New York Times, 09/14/2010
MarketMinder's View:
Persistently high unemployment continues to weigh on investors’ and policy makers’ minds. However growth creates jobs, not the other way around. Patience will be required as the recovery continues along.
Sensible Stories
By , Investor’s Business Daily, 09/14/2010
MarketMinder's View: US rails are moving raw materials, like metals, chemicals, and lumber at near record levels—a bullish sign that portends a growing economy.
Market Misperceptions
By , MarketWatch, 09/14/2010
MarketMinder's View:
Gold has been on quite a tear. But gold bugs seem to think gold is a hedge against inflation, deflation, a falling dollar, a euro collapse, earthquakes, oil spills, swine flu, and tartar buildup. It’s dangerous to think any investment can’t lose value.
Market Misperceptions
By , International Business Times , 09/14/2010
MarketMinder's View:
Confidence surveys offer little forward-looking insight into the health of capital markets. And the purported economic “experts” whose opinions comprise confidence surveys often have an unconvincing track record.
Sensible Stories
By , Associated Press, 09/14/2010
MarketMinder's View: It’s hard to say it any better than Mr. Buffett, “I am a huge bull on this country. We are not going to have a double-dip recession at all.”
Market Misperceptions
By , Telegraph, 09/14/2010
MarketMinder's View:
The US government deficit is a polarizing political tool and often misunderstood issue. Investors should expect plenty of deficit rhetoric as we near the November elections. For more, see our 06/10/2010 cover story, “Debunking Debt Concerns.”
Sensible Stories
By , Seeking Alpha, 09/14/2010
MarketMinder's View: We agree, it’s way too early to count 2010 as a bust. For more, see our 09/10/2010 cover story, “Recycled Pessimism.”
Sensible Stories
By , Guardian, 09/13/2010
MarketMinder's View: Austerity measures announced throughout Europe might be less severe than originally planned as prospects for economic growth improve.
Sensible Stories
By , Telegraph, 09/13/2010
MarketMinder's View: An expanding global economy can spur growth in every corner of the world.
Market Misperceptions
By , Seeking Alpha, 09/13/2010
MarketMinder's View:
Analyzing history is an important component of market analysis. But history is just a starting point. Simply comparing one chart to another without regard to anything else is a misuse of history.
Market Misperceptions
By , The Wall Street Journal , 09/13/2010
MarketMinder's View: This type of sentiment is common after a big recession and bear market. The rate of economic growth simply can’t continue accelerating forever. After an initial surge, growth in select regions may have slowed a bit. But, fact is, economies are still growing. For more, see our 09/07/2010 cover story, “Dumb Bears.”
Sensible Stories
By , The Wall Street Journal , 09/13/2010
MarketMinder's View: Just months ago, investors feared a global debt contagion emanating from Europe would sink the global economy. Now, even European economic growth estimates are ratcheting higher—a strong indication the global economy is on solid ground.
Market Misperceptions
By , The Wall Street Journal, 09/13/2010
MarketMinder's View: The argument gridlock will continue policy uncertainty while preventing more stimulus, thus stalling stocks, misconstrues the benefits of gridlock and what drives markets in the first place. It’s quite the opposite, gridlock is beneficial! For more, see our 08/24/2010 cover story, “Gridlock is Great.”
Sensible Stories
By , Bloomberg, 09/13/2010
MarketMinder's View: Yes, consumers are saving (which isn’t necessarily a bad thing), but they are also spending—retail sales were up in August. For more, see our 08/31/2010 cover story, “Retail Therapy.”
Sensible Stories
By , Associated Press, 09/13/2010
MarketMinder's View: Sunday brought about new global banking regulations and hopes “their contribution to long-term financial stability and growth will be substantial.” For more, see our 09/09/2010 cover story, “Basel-ed on Rumors.”
Market Misperceptions
By , Fortune, 09/13/2010
MarketMinder's View:
Just because consumer spending is the biggest part of our economy doesn’t mean other components don’t matter. Strong export growth can indeed help drive GDP growth and has an outsized benefit for corporate earnings growth—about half the revenues of S&P 500 firms come from outside the US!
Sensible Stories
By , Business Insider, 09/10/2010
MarketMinder's View: “Despite talk about how the US economy will soon lose the support of economic stimulus, or that stimulus 'hasn't worked', US fiscal stimulus for the economy is far from finished.” Exactly. Folks are too quick to claim stimulus has had little to no effect on the economy when a large portion of it has yet to be disbursed. Patience, please.
Sensible Stories
By , USA Today, 09/10/2010
MarketMinder's View: Positive data abound as the economic recovery continues.
Market Misperceptions
By , Investor’s Business Daily, 09/10/2010
MarketMinder's View: In some areas maybe, but our competitive edge is growing in others. That’s good for us and the global economy—countries do well focusing on what they do best. For more, see our 02/08/2010 column, “We’re Number Eight!”
Market Misperceptions
By , Barron’s, 09/10/2010
MarketMinder's View: “Without broad participation from the masses, the stock market will have a tough time breaking through the upper end of its range.” Wrong. Unfortunately, individual investors are notoriously late to participate in bull markets because they wait until owning stocks feels “comfortable,” which is usually well after stocks have rebounded.
Sensible Stories
By , Bloomberg, 09/10/2010
MarketMinder's View: Good news for the manufacturing industry as inventories rose much higher than expected.
Market Misperceptions
By , Smart Money, 09/10/2010
MarketMinder's View: Claiming “it’s different this time” is never beneficial for any investor. Unemployment trends are proving in line with historical patterns. That is, first comes an economic recovery then increased employment will follow.
Sensible Stories
By , Real Clear Markets, 09/10/2010
MarketMinder's View: Japan’s economy continues to grow (albeit at a slower pace), and new stimulus efforts are underway.
Sensible Stories
By , The Wall Street Journal, 09/10/2010
MarketMinder's View: Greece is trying to rebuild its economic reputation by turning to European investors in hopes of increasing their appetite for debt.
Market Misperceptions
By , Daily Finance, 09/10/2010
MarketMinder's View: Free-market capitalism is alive and well. This is just another one of many pessimistic headlines to invoke fear. For more, see today’s cover story, “Recycled Pessimism.”
Market Misperceptions
By , Slate, 09/09/2010
MarketMinder's View:
Capitalism requires an income gap—the prospect of earning more creates incentive. Some may benefit from a growing economy more than others, but we’re all better off in the long run thanks to capitalism.
Sensible Stories
By , Associated Press, 09/09/2010
MarketMinder's View: Unemployment remains persistently high—as it always does after recession—but signs of improvement are becoming evident.
Sensible Stories
By , Daily Finance, 09/09/2010
MarketMinder's View: “Exports remain a bright spot in the US economic recovery, and provided that the uptrend is maintained, they'll continue to add to US GDP.” International demand for US goods sparks the US economy and reflects the continuing global recovery.
Sensible Stories
By , International Business Times , 09/09/2010
MarketMinder's View: Thought rates are rising slightly in a handful of countries, central banks in most major regions have been clear they rightly intend to keep monetary policy accommodative for a long time.
Sensible Stories
By , MarketWatch, 09/09/2010
MarketMinder's View: Some folks see the VIX as a great hedge against market downturn because it seems to spike when stocks drop. But the VIX is just a number, not an asset. Investors trying to capitalize on VIX moves will find is difficult and costly.
Market Misperceptions
By , CNN Money , 09/09/2010
MarketMinder's View:
The financial system today is on far firmer ground than it was in the period before the 2008 financial crisis. Banks are now exceptionally well-capitalized, evidenced by near-record excess reserves on deposit at the Fed. Bank stocks might face headwinds, but that doesn’t reflect a fragile financial system.
Market Misperceptions
By , Blogging Stocks, 09/09/2010
MarketMinder's View:
Are folks fearing inflation or deflation today? It’s hard to keep it straight. While it’s true excessively easy money could lead to inflation at some point down the road if it’s not withdrawn appropriately, there’s no sign of inflation currently, and loose money is the right policy now to lubricate the global economy.
Market Misperceptions
By , Blogging Stocks, 09/09/2010
MarketMinder's View:
Not likely. Consumers didn’t pull back nearly as much as most folks think, and they’re already spending again—nominal private consumption is back at an all-time high.
Market Misperceptions
By , MarketWatch, 09/09/2010
MarketMinder's View:
OECD countries aren’t necessarily the drivers of the global economy as they used to be. Today, Emerging Markets are leading the global economy forward.
Market Misperceptions
By , International Business Times , 09/08/2010
MarketMinder's View:
Don’t read too much into the GDP revisions. Adjustments to backward-looking data say nothing about the health of a country or capital markets going forward.
Market Misperceptions
By , Associated Press, 09/08/2010
MarketMinder's View:
This is just more recycled pessimism. The flash crash was disconcerting but had little if any long-term impact.
Market Misperceptions
By , Newsweek, 09/08/2010
MarketMinder's View:
Let’s hope for their sake 18- to 34-year-olds are not shying away from equities when saving for retirement. For investors with long time horizons, equities have historically offered the most potential for growth (albeit with a sometimes bumpier ride compared to other asset classes).
Sensible Stories
By , Reuters, 09/08/2010
MarketMinder's View: With financial regulation reform in the US passed and details of Basel III coming to light, the cloud of uncertainty looming over Financials is beginning to clear a bit.
Sensible Stories
By , USA Today, 09/08/2010
MarketMinder's View: Despite “a steady flow of not-entirely-terrible economic news,” pundits and “experts” remain overly pessimistic about an impending “double dip”—an extremely bullish sign for stocks. For more, see our 09/07/2010 cover story, “Dumb Bears.”
Market Misperceptions
By , CNN Money, 09/08/2010
MarketMinder's View:
Is this a joke? Blindly following the crowd is seldom a good idea. Tech stocks in 2001…house flipping in 2006…you get the idea. And please, please, please ignore the absurd idea you can find reliable investing information using “the predictive value of the opinion of the masses” on Twitter and Facebook.
Sensible Stories
By , Bloomberg, 09/08/2010
MarketMinder's View: This forecast not only implies Emerging Markets should continue growing at a healthy pace, but stocks there should perform well too. We agree. And this is great news in an increasingly globalized economy—prosperity in emerging markets should benefit all.
Market Misperceptions
By , The Wall Street Journal, 09/08/2010
MarketMinder's View:
It’s as certain as beer at Oktoberfest—recoveries never move in a straight line upward. One month of pedestrian economic data does not signal the end of the recovery in Germany (or anywhere). As the German economics minister rightly concludes, “After the extraordinary strength of the recovery early this year, it was to be expected that production would be driven back to a quieter pace.”
Sensible Stories
By , Guardian, 09/08/2010
MarketMinder's View: Manufacturing, a bright spot in the global recovery, continues to shine. British factories notched their strongest rate of growth since December 1994.
Market Misperceptions
By , Blogging Stocks, 09/08/2010
MarketMinder's View:
It seems a day can’t go by without someone writing about gold and its purported safety. As we’ve said before, many, many times, gold is just a commodity—not an investing panacea.
Sensible Stories
By , MarketWatch, 09/08/2010
MarketMinder's View: In what’s becoming less and less of a newsworthy event, Portugal completed another successful bond auction. For more, see our 07/30/2010 cover story, “Silence of the PIIGS.”
Market Misperceptions
By , Telegraph, 09/07/2010
MarketMinder's View:
The economy never recovers in a straight line, but most signs point to continuing growth ahead. And if you look outside the US, rapid growth is already taking place in many emerging economies. For more, see our 08/23/2010 cover story, “Dripping Away at the Double Dip.”
Market Misperceptions
By , Bloomberg, 09/07/2010
MarketMinder's View:
For some reason, some folks see gold as protection against inflation, deflation, government spending, a double-dip recession, locusts, and measles. Its track record shows it’s none of those things. See our 02/12/2010 cover story, “Gold’s Safety Blanket Myth,” for more.
Sensible Stories
By , Fortune, 09/07/2010
MarketMinder's View: Amid the economic doom-and-gloom headlines exist ever-brighter glimmers of good economic news. This article highlights a few.
Market Misperceptions
By , Fortune, 09/07/2010
MarketMinder's View:
Investor demand for sovereign debt (even in the PIIGS!) outpaced supply time and again. And with the EU/IMF/ECB backstop in place, fiscally troubled countries’ funding needs are mostly covered for the next several years.
Market Misperceptions
By , The Nation, 09/07/2010
MarketMinder's View:
More stimulus doesn’t necessarily equate to more jobs. Past stimulus efforts are still making their way through the system, and employment will recover gradually as the economy continues to improve.
Sensible Stories
By , The Wall Street Journal, 09/07/2010
MarketMinder's View: We’re all for tax breaks, but whether this proposal will pass remains to be seen. We’ll keep an eye on developments.
Sensible Stories
By , Daily Finance, 09/07/2010
MarketMinder's View: The bull market’s “sustaining strength will come from one unexpected factor: A recovery that very few are counting on.” The fact investors remain pessimistic despite improving fundamentals is bullish. Remember, bull markets climb a wall of worry.
Sensible Stories
By , The Wall Street Journal, 09/07/2010
MarketMinder's View: The regulatory landscape for Financials has cleared a bit recently with the passage of financial regulation in the US and guidelines on Basel III. But Financials still face challenges globally.
Sensible Stories
By , CNN Money, 09/07/2010
MarketMinder's View: “The biggest risk for this generation is that they’ll live too long. With medical breakthroughs, the reality is that many … will live beyond 100. The only way they have enough assets to last them is to invest in stocks.” Most long-term investors would do well to heed this advice.
Sensible Stories
By , Slate, 09/03/2010
MarketMinder's View: “The US auto industry is smaller but healthier.” After much-needed restructuring, the auto industry is leaner and more efficient.
Market Misperceptions
By , MarketWatch, 09/03/2010
MarketMinder's View: “The Land of Opportunity is in danger of becoming barren.” The US hasn’t lost its title and shouldn’t anytime soon. Ignore.
Sensible Stories
By , The Street, 09/03/2010
MarketMinder's View: Title aside, this article lists a few good reasons why double-dip fears aren’t justified and why increased dour sentiment usually means success for stocks.
Sensible Stories
By , The Wall Street Journal, 09/03/2010
MarketMinder's View: Double-dip fears are proving unfounded at home and abroad as the ECB expels rumors of a faltering European economy. For more, see today’s cover story, “A Nice Thought.”
Market Misperceptions
By , Guardian, 09/03/2010
MarketMinder's View: Hardly. A slight hiccup in the service sector doesn’t spell doom for the UK economy at large.
Market Misperceptions
By , The New Republic, 09/03/2010
MarketMinder's View: The differences between the economic environment today and past depressions far outweigh any similarities. The global economy is growing nicely, trade is booming, corporations have healthy balance sheets and are growing earnings at a tremendous clip, consumers are spending, and inflation is tame. This doesn’t sound depression-like to us.
Sensible Stories
By , Daily Finance, 09/03/2010
MarketMinder's View: Positive news on the job front. The job market will continue to improve as the economy picks up.
Market Misperceptions
By , Daily Finance, 09/03/2010
MarketMinder's View: Gold is often misconstrued as a “safe haven” but historically, stocks have outperformed gold in the long term. Don’t fall into this golden trap. For more, see our 02/12/2010 cover story, “Gold’s Safety Blanket Myth.”
Sensible Stories
By , Telegraph, 09/02/2010
MarketMinder's View: “Widespread uncertainty and pessimism about the future among usually bullish financial advisers may indicate that the stock market is near the bottom of its cycle and the time has come for brave income-seekers to buy.” We couldn’t agree more! For more, see today’s cover story, “Goring the Global Growth Slowdown.”
Market Misperceptions
By , The Wall Street Journal , 09/02/2010
MarketMinder's View: Measuring last year’s cash-for-clunkers sales bonanza to this year’s sales isn’t a fair comparison and illustrates the distortions government involvement can cause.
Sensible Stories
By , TheStreet, 09/02/2010
MarketMinder's View: Housing data has been somewhat of a mixed bag recently, but prices have been slowly rising—a positive sign the worst might be behind the housing market. For more, see our 08/25/2010 cover story, “Distorted Housing’s a Drag.”
Sensible Stories
By , The Wall Street Journal, 09/02/2010
MarketMinder's View: Same store sales are up despite hot weather and dour sentiment. It’s encouraging news consumer spending continues to grow. For more, see our 08/31/2010 cover story, “Retail Therapy.”
Sensible Stories
By , Leveraged Finance News, 09/02/2010
MarketMinder's View: Credit markets are open again, even to lower rated firms. Many folks decry the fact banks are lending as freely as they should, but banks aren’t the only source of credit.
Sensible Stories
By , RTT News, 09/02/2010
MarketMinder's View: Central bankers worldwide stand ready to provide the liquidity necessary to keep economic wheels greased. For more, see our 08/06/2010 cover story, “Hermes Delivers.”
Market Misperceptions
By , BusinessWeek, 09/02/2010
MarketMinder's View: What does this even mean? Wouldn’t another recession be worse? But economic data hasn’t been nearly as bad as the title suggests. Indeed, global growth has been accelerating, not decelerating.
Sensible Stories
By , The Washington Post, 09/02/2010
MarketMinder's View: “Savings. Credit. Manufacturing. Housing. Trade.” Although the media is awash in dour sentiment right now, these five reasons hold a lot of promise for the economy going forward.
Sensible Stories
By , Associated Press, 09/01/2010
MarketMinder's View: More positive economic news from around the world: Demand from emerging markets helped the Australian economy grow at the fastest pace in three years.
Market Misperceptions
By , EU Business, 09/01/2010
MarketMinder's View:
Governments intervening in markets is seldom a good idea and often leads to unintended and negative consequences.
Sensible Stories
By , BusinessWeek, 09/01/2010
MarketMinder's View: “German unemployment declined for a 14th month in August after surging exports and investment fueled record economic growth in the second quarter.” Recent economic news coming from Germany has been overwhelmingly positive. For more, see our 08/16/2010 cover story, “Prost!”
Market Misperceptions
By , CNNMoney, 09/01/2010
MarketMinder's View:
Employment statistics are often volatile and offer little insight into where the economy is headed. Remember, growth always creates jobs—never the other way around.
Sensible Stories
By , International Business Times, 09/01/2010
MarketMinder's View: US manufacturing remains firmly in expansionary territory and increased month-over-month in July—a bullish sign for stocks.
Market Misperceptions
By , Associated Press, 09/01/2010
MarketMinder's View:
Despite the dour headlines, the American consumer isn’t dead! Compared with last August, US consumers spent slightly more. For more, see our 08/31/2010 cover story, “Retail Therapy.”
Sensible Stories
By , RTTNews, 09/01/2010
MarketMinder's View: In the latest FOMC minutes, the Fed reiterated it will provide additional economic stimulus if needed. Seems like smart policy to us, but it likely won’t be necessary.
Sensible Stories
By , Daily Finance , 09/01/2010
MarketMinder's View: M&A activity is bouncing back in a sign corporations are beginning to spend the record amounts of cash stored in their war chests. Cash-based M&As decrease the overall supply of equities and help boost stock prices.
Market Misperceptions
By , Reuters, 09/01/2010
MarketMinder's View:
Regulators shouldn’t start patting themselves on the back quite yet. The Dodd-Frank act is so new (and enormous), the final implications and usefulness of the bill won’t be known for many years.
Market Misperceptions
By , The Wall Street Journal , 09/01/2010
MarketMinder's View:
The Dow (a flawed index, in our opinion) logging a poor month doesn’t portend doom for the global economy. Over short periods, sentiment can drive stock prices. Recently, dour sentiment has become detached from a more positive reality. Positive fundamentals should move stocks higher before long.
Sensible Stories
By , Reuters, 09/01/2010
MarketMinder's View: Political gridlock? Bring it on! For more, see our 08/24/2010 cover story, “Gridlock Is Great.”