Home → Fisher Investments MarketMinder Headlines → 10-2007 Archives

Sensible Stories
By , The Washington Post, 10/31/2007
MarketMinder's View: Just what we’ve been saying! First, the economy isn’t imperiled from subprime (it grew 3.9% in Q3). Second, the Fed dropping the short rate has minimal impact on the availability of low-quality, long-term debt anyway! And that’s what everyone’s fretting!
Market Misperceptions
By , The Telegraph, 10/31/2007
MarketMinder's View: Ahhhhh! Wait – why are we worried? Gold prices do not predict doom for equities.
Sensible Stories
By , The Wall Street Journal, 10/31/2007
MarketMinder's View: Now that we have that taken care of, can we move ahead with the Free Trade Agreements? Please!
Sensible Stories
By , Bloomberg, 10/31/2007
MarketMinder's View: An excellent perspective on sovereign wealth funds and the overreaction of world politicians.
Sensible Stories
By , Financial Times, 10/31/2007
MarketMinder's View: Don’t underestimate the creativity of these managers to get deals done.
Market Misperceptions
By , MSNBC.com, 10/31/2007
MarketMinder's View: And remember when the market rallied in the months following Katrina?
Sensible Stories
By , The Telegraph, 10/31/2007
MarketMinder's View: Plans to allow greater access to investments is bullish for the markets.
Market Misperceptions
By , MSNBC.com, 10/31/2007
MarketMinder's View: Or, a different but equally true headline could be: “Home Prices Off Just 3.5% From All Time Highs.”
Sensible Stories
By , Portfolio.com, 10/31/2007
MarketMinder's View: How governmental meddling turned corporate executives into Mafia Dons.
Market Misperceptions
By , The Guardian, 10/31/2007
MarketMinder's View: Hey! Be our guest, Warren! And, if you think your secretary pays too much in taxes, why not let her use your accountant?
Sensible Stories
By , Financial Times, 10/31/2007
MarketMinder's View: “Is it possible to justify this cornucopia of complex and expensive subsidies, mandates and protectionist measures? No.” Outstanding!
Sensible Stories
By , US News & World Report, 10/31/2007
MarketMinder's View: Among other reasons: “Today's economy is better able to absorb the rise in the relative price of energy, because it is more flexible, it is still relatively strong, and we use energy far more efficiently than we once did.”
Sensible Stories
By , CNNMoney.com, 10/31/2007
MarketMinder's View: No way! Wait a minute . . . where have we heard that before?
Sensible Stories
By , The New York Times, 10/31/2007
MarketMinder's View: Weird. Maybe the “housing crisis” didn’t tank the economy like everyone said it would.
Market Misperceptions
By , NPR.org, 10/31/2007
MarketMinder's View: Really? They haven’t so far.
Sensible Stories
By , The Wall Street Journal, 10/30/2007
MarketMinder's View: We may not agree with all the points made here but it includes some interesting observations, such as this one: “It's ironic that, because economic vitality keeps imports growing, it also fuels protectionist sentiment.”
Sensible Stories
By , TCS Daily, 10/30/2007
MarketMinder's View: An alternate look at the housing market: “A housing slowdown just might give the present economic expansion more powerful legs.”
Market Misperceptions
By , The Telegraph, 10/30/2007
MarketMinder's View: When sensational headlines like this fail to have an impact on the markets, it represents truly "priced in" information.
Sensible Stories
By , The Telegraph, 10/30/2007
MarketMinder's View: Questions to help investors think differently about the markets – what a novel idea!
Market Misperceptions
By , Fortune, 10/30/2007
MarketMinder's View: A few problems here. First, US households have about $69 trillion in assets, so credit card debt is about 1.3% of that. Second, a huge chunk of credit card debt is paid off every month—it’s not revolving. (Note, the article admits “missed payments are at a historical low.”) Said another way: Relax.
Market Misperceptions
By , The Wall Street Journal, 10/30/2007
MarketMinder's View: We’re all for folks saving (investing) for retirement but government mandates make us uncomfortable. How about giving individuals more control over the existing government-mandated contributions? Right, politicians need control over those to save us from our irresponsible selves.
Market Misperceptions
By , The Wall Street Journal, 10/30/2007
MarketMinder's View: We don’t want to seem insensitive, but maybe these homes are moving not so much because of the St. Joe buried in the yard, but because things are nowhere near as dire as folks imagine.
Market Misperceptions
By , The New York Times, 10/30/2007
MarketMinder's View: Hooray! We all know what happened after the previous low—stocks rose for two straight years.
Sensible Stories
By , The Mercury News, 10/30/2007
MarketMinder's View: Congress’ unintended victims of the tax “reform” (increase) proposals – entrepreneurs.
Sensible Stories
By , The Wall Street Journal, 10/30/2007
MarketMinder's View: Exactly! Neither spells doom for stocks.
Sensible Stories
By , Bloomberg, 10/30/2007
MarketMinder's View: Good news out of Europe’s largest economy.
Market Misperceptions
By , MoneyWeek, 10/30/2007
MarketMinder's View: This is just backwards and wrong. Leverage is an important driver for economic growth and shouldn’t be feared. Just because a small number of subprime loans (they’re called “subprime” for a reason, folks) went bad doesn’t mean all borrowers are doomed.
Sensible Stories
By , Bloomberg, 10/30/2007
MarketMinder's View: Before investors start assigning blame, they should understand the role of ratings “agencies.”
Sensible Stories
By , BBC News, 10/30/2007
MarketMinder's View: China – can you please stop offering your super cheap steel to our customers, allowing them to build things so inexpensively? It’s just rude. MarketMinder response: This is competition at its best!
Market Misperceptions
By , Financial Times, 10/29/2007
MarketMinder's View: The current account has little to do with the weakness of the dollar. For proof, just look at Britain’s equally large current account deficit and its strong currency.
Sensible Stories
By , Herald Sun, 10/29/2007
MarketMinder's View: Exactly – the bulk of investor returns are determined by asset allocation decisions, not stock-picking.
Sensible Stories
By , Greg Mankiw’s Blog, 10/29/2007
MarketMinder's View: A good look at how the US economy has become much more energy efficient over the years, decreasing the impact of higher oil prices.
Sensible Stories
By , Café Hayek, 10/29/2007
MarketMinder's View: The best “fix” for the AMT we’ve come across thus far.
Market Misperceptions
By , MSNBC.com, 10/29/2007
MarketMinder's View: We can’t stand when politicians attempt to decide what’s best for their citizens. If individuals want greener cars, the manufacturers will respond. It wasn’t out of some government mandate that hybrid cars became so popular.
Market Misperceptions
By , ABC News, 10/29/2007
MarketMinder's View: Nothing to worry from a market standpoint. Both oil and equity prices have been moving higher throughout this bull market.
Market Misperceptions
By , MSN Money, 10/29/2007
MarketMinder's View: “The entire stock market is at serious risk due to recession.” Huh? We’re confused. How is robust global economic growth “recession?” For a more reasoned look at tech, read MarketMinder commentary “Is Tech for Real,” 10/26/2007.
Market Misperceptions
By , BusinessWeek, 10/29/2007
MarketMinder's View: While rate moves can impact sentiment in the immediate term, small ones don’t do much and aren’t actually felt for some time.
Market Misperceptions
By , The Washington Post, 10/29/2007
MarketMinder's View: A sinking dollar is too bad if you’re making short term currency bets, but otherwise, not instructive for stocks. Dollar strength doesn’t dictate stock market direction.
Sensible Stories
By , Forbes, 10/29/2007
MarketMinder's View: Understanding why our brains function the way they do can help reduce investing errors.
Sensible Stories
By , The Wall Street Journal, 10/29/2007
MarketMinder's View: “The combined result: America's top income-tax rate will skyrocket from the current 35% rate to a top rate of 44%. Let's be clear -- that's a 25% tax hike.” Ugh!
Market Misperceptions
By , Barron’s, 10/29/2007
MarketMinder's View: Bizarre. This article purports you can’t have a “real” bull market if there’s weakness in some area. Wrong wrong wrong. No matter how strong the market, there will always be some area (or areas) that don’t perform as well.
Sensible Stories
By , TCS Daily, 10/29/2007
MarketMinder's View: In historical terms, wealth is a relatively new and glorious development which should be allowed to flourish.
Sensible Stories
By , The Wall Street Journal, 10/26/2007
MarketMinder's View: A provocative commentary arguing Europe is imposing business regulations on the rest of the world for its own benefit—ultimately a form of protectionism.
Market Misperceptions
By , Forbes, 10/26/2007
MarketMinder's View: Ignore those who tell you what stocks will do more than a year or two in advance. Forecasting multiple years into the future is impossible because virtually no one can properly evaluate the supply and demand for stocks a year from now let alone ten years ahead.
Sensible Stories
By , The Economist, 10/26/2007
MarketMinder's View: Globalization is not only happening between emerging and developed economies. Emerging economies are also fueling growth between each other.
Market Misperceptions
By , BBC News, 10/26/2007
MarketMinder's View: When in doubt – more regulation? Ugh.
Market Misperceptions
By , The Wall Street Journal (*site requires subscription), 10/26/2007
MarketMinder's View: More negative bias on the economy despite a preponderance of positive data.
Market Misperceptions
By , Financial Times, 10/26/2007
MarketMinder's View: Whew – good thing journalists have been scaring us with $90+ oil for years now so it’s been fully priced in. Also, oil is high because the economy is booming!
Market Misperceptions
By , Bloomberg, 10/26/2007
MarketMinder's View: Another Attorney General making headlines and a name for himself, Spitzer style. This is too small an event to affect markets.
Sensible Stories
By , Network World, 10/26/2007
MarketMinder's View: Should this bill be enacted, it would be a good thing for many technology firms.
Sensible Stories
By , The Wall Street Journal, 10/26/2007
MarketMinder's View: China continues to use its capital surplus by investing globally. Here is the latest example. This is a growing trend among many countries.
Market Misperceptions
By , Money Magazine via CNNMoney.com, 10/26/2007
MarketMinder's View: The truth is most folks with a long time horizon over-diversify their portfolios with bonds and cash. Those with long time horizons most often need portfolios with very high allocations of stocks.
Sensible Stories
By , Forbes, 10/26/2007
MarketMinder's View: Fears that retiring baby boomers will be a net negative for the stock market are highly exaggerated. Here’s why.
Market Misperceptions
By , Money Magazine via CNNMoney.com, 10/26/2007
MarketMinder's View: The truth is most folks with a long time horizon over-diversify their portfolios with bonds and cash. Those with long time horizons most often need portfolios with very high allocations of stocks.
Sensible Stories
By , The Telegraph, 10/26/2007
MarketMinder's View: Flat tax and privatization? Music to our ears.
Sensible Stories
By , THe Wall Street Journal, 10/26/2007
MarketMinder's View: Many homeowners don’t need and shouldn’t have to pay for the long-term stability of a 30-year fixed loan. Let individuals decide for themselves what’s best!
Sensible Stories
By , The Wall Street Journal, 10/26/2007
MarketMinder's View: Just what the world needs – competition for who can have the most regulation! Darn poli-tics.
Sensible Stories
By , The Wall Street Journal, 10/26/2007
MarketMinder's View: More on this "reform" (tax increase) that we discussed in our commentary “Rangel Rouser” yesterday.
Market Misperceptions
By , The Wall Street Journal, 10/26/2007
MarketMinder's View: Ignore the new tax proposals altogether—they have virtually zero chance of passing into law.
Market Misperceptions
By , CNNMoney.com, 10/25/2007
MarketMinder's View: Before you get excited, this goofy “reform” shifts an increased tax burden around. Only a politician would call a tax hike a “tax cut.”
Sensible Stories
By , RealClearPolitics, 10/25/2007
MarketMinder's View: Government intervention can cause a landslide of unintended, negative economic consequences which can be difficult if not nearly impossible to unwind.
Market Misperceptions
By , MSNBC.com, 10/25/2007
MarketMinder's View: What next – Don’t let Turkey Debt weigh you down? Is Santa’s sleigh full of credit cards? Ring in the New Year with an adjustable rate kiss?
Dueling Headlines
By , CNN Money, 10/25/2007
MarketMinder's View: Wait – is this good news or bad news? You wouldn’t really know reading these two headlines. The reality is that Chinese economic growth remains robust.
Market Misperceptions
By , Bloomberg.com, 10/25/2007
MarketMinder's View: London, New York, doesn’t matter. But we agree with the following: “Whenever the media pick up on a trend in financial markets, it is usually much too late.”
Sensible Stories
By , Bloomberg, 10/25/2007
MarketMinder's View: “…the gloomiest view since February 2003”. So, Americans haven’t been this dour since the start of a 5 year bull market and a nearly 100% return on US stocks? Bring on the negativity!
Market Misperceptions
By , The Telegraph, 10/25/2007
MarketMinder's View: Stop selling us cheap goods and saving us money, China! Oh wait, that’s not us saying that – we love cheap stuff! And just because China has overtaken Germany, this doesn’t necessarily spell doom for Germany – just more trade for everyone.
Market Misperceptions
By , BusinessWeek, 10/25/2007
MarketMinder's View: Investors are far too dour and fundamentals too strong for a bear market to be very likely in the near future.
Sensible Stories
By , Financial Times, 10/25/2007
MarketMinder's View: A good dose of the free market is best in responding increases in prices, not ill-advised price controls.
Sensible Stories
By , The Wall Street Journal (*site requires registration), 10/25/2007
MarketMinder's View: Why taxes aimed to “soak the rich” never have the outcome politicians intend—they are based on faulty assumptions.
Sensible Stories
By , The Wall Street Journal, 10/25/2007
MarketMinder's View: “Imposing price controls on credit cards may help a few borrowers, but it would raise the cost of having a credit card for everyone else and cut off access to credit for many of the riskiest borrowers.” Exactly.
Market Misperceptions
By , PLOS Medicine, 10/25/2007
MarketMinder's View: Here’s our idea—a major corporation builds a nearby plant and employs the locals, then most could have more than one dollar a day.
Market Misperceptions
By , ABCNews, 10/25/2007
MarketMinder's View: This is nice news, but one month’s data—good or bad—doesn’t mean much.
Market Misperceptions
By , Seeking Alpha, 10/24/2007
MarketMinder's View: Answer: Yes. Next?
Sensible Stories
By , Barron’s, 10/24/2007
MarketMinder's View: Certain Senators believe low-income individuals don’t deserve to be homeowners. We heartily disagree. Read MarketMinder commentary, “Futile Congressional Fixes,” 10/23/2007.
Market Misperceptions
By , ABCNews, 10/24/2007
MarketMinder's View: Our ridiculous item of the week. Even Chinese food? What if Floridians really crave egg rolls! Efforts to penalize one nation will just lead to unintended consequences.
Market Misperceptions
By , Financial Times, 10/24/2007
MarketMinder's View: The amount of capital now dedicated to government-mandated biofuels isn’t helping food prices but let’s not fall into a Malthusian trap here. Don’t underestimate the ability of the free market to respond to price signals with increased production and investment. Price controls distort these crucial market signals and lead to a lack of investment (and supply) when and where it’s needed most.
Market Misperceptions
By , Investors.com, 10/24/2007
MarketMinder's View: Astoundingly misguided. Stocks are not serially correlated, therefore stop losses provide no benefit and lead to poorer performance and higher transaction costs over time.
Sensible Stories
By , The Wall Street Journal, 10/24/2007
MarketMinder's View: A market based solution, such as the one suggested here, is nearly always better than a government rescue (read: fiasco).
Sensible Stories
By , Pittsburgh Tribune-Review, 10/24/2007
MarketMinder's View: The filthiest, dirtiest job in America—politician.
Market Misperceptions
By , The Wall Street Journal, 10/24/2007
MarketMinder's View: Welcome to inefficient world of mutual funds – no control over your own capital gains.
Sensible Stories
By , Financial Times, 10/24/2007
MarketMinder's View: The free flow of capital is a beautiful thing.
Sensible Stories
By , Marginal Revolution, 10/24/2007
MarketMinder's View: Even more than tax-heavy London.
Sensible Stories
By , The Wall Street Journal, 10/24/2007
MarketMinder's View: A good look at the changing dynamics of the work force since 1979.
Market Misperceptions
By , Financial Times, 10/24/2007
MarketMinder's View: “Imbalances” and “toxic financial innovation” are going to bring down China! How did we not see this coming? The “credit squeeze” is the great scare of 2007…that shouldn’t knock the market down.
Sensible Stories
By , TCS Daily, 10/24/2007
MarketMinder's View: Fortunately, it’s on the benefits of freer trade.
Market Misperceptions
By , CNNMoney.com, 10/24/2007
MarketMinder's View: A great example of a common investor cognitive error—failure to scale. The per-year cost is a tiny fraction of GDP. Whether you think the War on Terror is good or bad, economically, it’s a tiny good or a tiny bad.
Sensible Stories
By , The Washington Post, 10/23/2007
MarketMinder's View: Mr. Frank may be aiming to “prevent” foreclosures, but we think restricting mortgages would disallow lower income folks from owning houses. That’s a bad thing.
Market Misperceptions
By , The Telegraph, 10/23/2007
MarketMinder's View: As if the old credit crunch wasn’t bad enough, now it’s the new credit crunch! See our commentary, “The Real Credit Story” from yesterday about the recycling of old news.
Market Misperceptions
By , Times Online, 10/23/2007
MarketMinder's View: Debt, debt and more debt. What is missed is that while household debt has increased, household net worth has risen even faster…
Market Misperceptions
By , US News, 10/23/2007
MarketMinder's View: No. Let the currency float in a free market.
Sensible Stories
By , The Wall street Journal, 10/23/2007
MarketMinder's View: Does anyone else smell pork?
Sensible Stories
By , Portfolio.com, 10/23/2007
MarketMinder's View: We normally advise investors to ignore currency fluctuations because they have little bearing on stock price movements. However, this article provides some good insight on how shifting currencies affect corporations in the US and abroad—a topic worth understanding.
Market Misperceptions
By , The Wall Street Journal, 10/23/2007
MarketMinder's View: This all seems very scary for the economy until you see what a small number of people are actually affected.
Sensible Stories
By , Investor’s Business Daily, 10/23/2007
MarketMinder's View: Besides ample liquidity (via cheap borrowing rates), there are all sorts of financing options for public and private firms today. This is a sure sign of a growing, robust economy.
Sensible Stories
By , Financial Times, 10/23/2007
MarketMinder's View: Darn business and capitalism creating billionaires! What most people miss is that wealth in the world is not finite and more billionaires in China is good for everyone.
Market Misperceptions
By , BusinessWeek, 10/23/2007
MarketMinder's View: The unemployment rate is still very low—a little turbulence in Finance sector employment isn’t enough to meaningfully change that.
Market Misperceptions
By , The Wall Street Journal, 10/23/2007
MarketMinder's View: A classic mistake: Interpreting normal, short term market volatility as a harbinger of economic doom. We’d note that stocks around the world are still up quite nicely for the year.
Sensible Stories
By , The Wall Street Journal (*site requires registration), 10/23/2007
MarketMinder's View: Government subsidies most often create more problems than they solve—generating huge economic dislocations and deadweight losses to the economy.
Sensible Stories
By , The New York Times, 10/23/2007
MarketMinder's View: ETFs, used properly, can be a great tool for stock investors and a great example of developing capital markets. Just be careful: Pay attention to fees and note that ETF investors don’t get to own a share of the companies invested in, like stock owners do.
Market Misperceptions
By , The Wall Street Journal, 10/23/2007
MarketMinder's View: This could possibly be true in the short term. But long interest rates on BBB bonds and above are still very cheap—ultimately that will drive lending activity.
Sensible Stories
By , CNNMoney.com, 10/23/2007
MarketMinder's View: An excellent take on why investors need not fear baby boomers’ retirement.
Sensible Stories
By , Kiplinger, 10/23/2007
MarketMinder's View: Globalization is for real and emerging markets are a major beneficiary of the effort. This trend has further to go.
Sensible Stories
By , The Telegraph, 10/23/2007
MarketMinder's View: Maybe, maybe not, but we certainly believe this to be true: “The train always runs out of track but if you get off now you risk missing the most exciting part of the ride.”
Sensible Stories
By , The Wall Street Journal, 10/22/2007
MarketMinder's View: The global economy is booming – enough said.
Sensible Stories
By , Café Hayek, 10/22/2007
MarketMinder's View: Great explanation as to why the current account deficit does not spell disaster for the US economy.
Market Misperceptions
By , BBC News, 10/22/2007
MarketMinder's View: Greenspan doing more to protect his legacy.
Market Misperceptions
By , The New York Times, 10/22/2007
MarketMinder's View: So, poorer nations accuse America of creating financial products allowing lower-income individuals to buy homes—and that’s bad? Instead of tsk-tsking, maybe poorer nations should figure out how to do the same.
Market Misperceptions
By , MarketWatch, 10/22/2007
MarketMinder's View: Could there be another correction? Sure. Is it predictable based on cosmic coincidence? Probably not.
Sensible Stories
By , Café Hayek, 10/22/2007
MarketMinder's View: Additional benefits of global thinking—you can see a big trade deficit doesn’t hurt us, not one bit.
Market Misperceptions
By , Bits of News, 10/22/2007
MarketMinder's View: What a hoot! Argues that because of the poor US savings rate, China could buy every US company. If that’s so, then why haven’t they? Patent nonsense.
Sensible Stories
By , Times Online, 10/22/2007
MarketMinder's View: Not as if it has as much slack as some are claiming, but this sheds light on robust global demand for US goods.
Market Misperceptions
By , The Telegraph, 10/22/2007
MarketMinder's View: The one thing that could take down the UK economy: England failing to qualify for the 2008 European “football” championships. Ok, we didn’t believe it either – ignore.
Sensible Stories
By , MarketWatch, 10/22/2007
MarketMinder's View: Because our society values increasing homeownership, sub-prime lending is here to stay.
Dueling Headlines
By , CNNMoney.com, 10/22/2007
MarketMinder's View: Huh? Oddly, both articles are about continued strength in commercial real estate and construction, often overlooked amidst negative news on the residential market.
Market Misperceptions
By , International Business Times, 10/22/2007
MarketMinder's View: Again? It wasn’t worth worrying about in August; it’s not worth worrying about now.
Sensible Stories
By , Forbes, 10/22/2007
MarketMinder's View: Yep, not much landmark legislation will pass this year. Very typical of the back half of a president’s term, and very bullish.
Market Misperceptions
By , The Sydney Morning, 10/22/2007
MarketMinder's View: So? Weak or strong, the dollar’s strength doesn’t predict stock moves.
Sensible Stories
By , Bloomberg, 10/22/2007
MarketMinder's View: “In all likelihood, the U.S. Treasury will not step in to save the dollar any time soon.” Thank goodness. Let the markets decide.
Sensible Stories
By , Bloomberg, 10/22/2007
MarketMinder's View: A positive sign of future growth from the world’s second largest economy.
Sensible Stories
By , Reuters, 10/19/2007
MarketMinder's View: Exactly. Try to think back to a time when the future wasn’t uncertain.
Market Misperceptions
By , The Wall Street Journal, 10/19/2007
MarketMinder's View: This is a veiled type of “technical” investing, which tries to gauge future market performance based on chart shapes. In reality, nothing about the past tells you about the future, so ignore it altogether.
Market Misperceptions
By , Reuters, 10/19/2007
MarketMinder's View: Utterly ridiculous.
Sensible Stories
By , PoorandStupid.com, 10/19/2007
MarketMinder's View: An honest look at the 1987 crash from someone who had a front seat.
Sensible Stories
By , Businessweek, 10/19/2007
MarketMinder's View: Much of the ‘Green Movement’ is smoke and mirrors—and could be a pitfall for unwitting investors.
Market Misperceptions
By , MarketWatch, 10/19/2007
MarketMinder's View: What? No! Wrong! Watching the rear-view mirror makes you a perilous driver and a lousy money manager.
Sensible Stories
By , CNNMoney.com, 10/19/2007
MarketMinder's View: “For starters, oil plays a smaller role in modern economies than it used to. Today, it takes about one-quarter as much energy for an additional unit of GDP as it took in the 1970s.”
Market Misperceptions
By , The New York Times, 10/19/2007
MarketMinder's View: Despite the headline, India is not trying to ban foreign investment. They simply want to regulate it.
Market Misperceptions
By , CNNMoney.com via Yahoo! finance., 10/19/2007
MarketMinder's View: What they fail to mention is, despite rising housing delinquency rates, they’re still near historic lows.
Sensible Stories
By , Boston Globe, 10/19/2007
MarketMinder's View: Mortgage companies will obviously be against additional regulation, and with good reason in our view.
Sensible Stories
By , Forbes, 10/19/2007
MarketMinder's View: We heartily agree.
Market Misperceptions
By , National Journal, 10/19/2007
MarketMinder's View: “I am not an economic forecaster.” Truer words have never been spoken. Ignore.
Market Misperceptions
By , USA Today, 10/19/2007
MarketMinder's View: What kind of question is this? Sure they could, but that doesn’t mean they definitely will.
Sensible Stories
By , The New York Times, 10/18/2007
MarketMinder's View: What a concept! Allowing an industry to operate more freely!
Sensible Stories
By , The Economist, 10/18/2007
MarketMinder's View: High commodity demand and prices should continue during this period of economic expansion.
Market Misperceptions
By , CNNMoney.com, 10/18/2007
MarketMinder's View: More silly political posturing on who’s allowed to own what means congress isn’t interested in passing anything legislatively meaningful—very typical of the back half of a president’s term and very bullish. Little legislation leads to less risk aversion and happier markets.
Market Misperceptions
By , Portfolio.com, 10/18/2007
MarketMinder's View: Our ridiculous story of the week. “More than three-fourths of the 791 board members surveyed by the National Association of Corporate Directors and the Center for Board Leadership said that executive pay was either ‘somewhat high’ or ‘too high’ relative to the job being performed.” THEY’RE THE ONES DECIDING ON EXECUTIVE PAY IN THE FIRST PLACE! Sheesh.
Market Misperceptions
By , portfolio.com, 10/18/2007
MarketMinder's View: There’s nothing quite like a good old fashioned government investigation to keep investor pessimism high…
Market Misperceptions
By , Bloomberg, 10/18/2007
MarketMinder's View: Our ridiculous story of the week. “More than three-fourths of the 791 board members surveyed by the National Association of Corporate Directors and the Center for Board Leadership said that executive pay was either ‘somewhat high’ or ‘too high’ relative to the job being performed.” THEY’RE THE ONES DECIDING ON EXECUTIVE PAY IN THE FIRST PLACE! Sheesh.
Market Misperceptions
By , Fortune, 10/18/2007
MarketMinder's View: Halloween is near, so we guess it makes sense the financial press is attempting to raise dead credit worries.
Market Misperceptions
By , Forbes, 10/18/2007
MarketMinder's View: Huh? Um, yeah. Like 20 years behind us. Magical calendar dates don’t drive stock prices—supply and demand do.
Sensible Stories
By , Globe Staff, 10/18/2007
MarketMinder's View: Increased (and unnecessary) government regulation will make it harder for people to get home loans, pure and simple.
Sensible Stories
By , Reuters, 10/18/2007
MarketMinder's View: Sovereign wealth funds aren’t threats to the global economy. If anything, they probably represent a largely untapped pool of funds that could boost global investment.
Market Misperceptions
By , The Wall Street Journal, 10/18/2007
MarketMinder's View: Another silly story about “risky” financial instruments and government’s plan to “solve” the problem. See yesterday’s commentary, “Don’t Stifle the Prudent!” for more.
Sensible Stories
By , The New York Times, 10/18/2007
MarketMinder's View: More dislocating and inefficient market meddling due to unnecessary government intervention…
Market Misperceptions
By , Forbes, 10/18/2007
MarketMinder's View: If you’re a global investor, the dollar should not be a primary concern—its movement doesn’t predict future stock prices.
Sensible Stories
By , The Wall Street Journal, 10/18/2007
MarketMinder's View: More evidence of a do-nothing Congress during a presidential third year. (See our past commentary, “Veto Power” 10/04/07 for more.)
Market Misperceptions
By , CNNMoney.com, 10/17/2007
MarketMinder's View: And yet, the economy keeps growing, the stock market keeps rising, and earnings keep surprising to the upside. It’s almost like the housing sector is too small to impact the broad economy much.
Market Misperceptions
By , Barron's, 10/17/2007
MarketMinder's View: This totally confuses us. Long-term Treasury and BBB rates are LOWER now than they were in July. How are lower borrowing rates a “crumbling” credit market?
Sensible Stories
By , TCS Daily, 10/17/2007
MarketMinder's View: “Instead of imagining what a wise, omniscient, benevolent government might do, one should pay attention to how government operates in practice.” Amen! Sign us up!
Sensible Stories
By , CNNMoney.com, 10/17/2007
MarketMinder's View: As we’ve been saying, earnings will surprise because analysts fail to account for shrinking stock supply.
Market Misperceptions
By , ABCNews, 10/17/2007
MarketMinder's View: Jeez Louise! We get it! Everyone fears weak housing will tank the market! Wait a minute . . . everyone fears . . . maybe housing weakness is already widely known and therefore already reflected into today’s market prices.
Market Misperceptions
By , The Washington Post, 10/17/2007
MarketMinder's View: What does this mean for stocks? Not much—there’s no meaningful correlation between stocks and oil prices historically.
Sensible Stories
By , ABCNews, 10/17/2007
MarketMinder's View: Interesting, but a better title would be “How Much Should I Be INVESTING?”
Market Misperceptions
By , The Wall Street Journal, 10/17/2007
MarketMinder's View: This article warns higher energy prices will “cause” inflation—but neglects to explain how that works. How do higher energy prices “cause” an increase in money supply? Can anyone explain this? Anyone? Bueller?
Market Misperceptions
By , MSN Money, 10/17/2007
MarketMinder's View: Do some CEOs earn big paychecks? Sure! Do they deserve it? CEOs must take risk to add shareholder value. If their boards approve the compensation and shareholders don’t flee en masse, who are we to judge?
Sensible Stories
By , The Wall Street Journal (*site requires registration), 10/17/2007
MarketMinder's View: More unintended evils from government intervention.
Market Misperceptions
By , The Wall Street Journal, 10/17/2007
MarketMinder's View: This article argues investors are lulled into a “false sense of security” by the availability of more sophisticated financial products. Hogwash. Anyone who’s followed the hoopla over derivatives, hedge funds, etc., knows investors are as nervous as ever.
Market Misperceptions
By , Financial Times, 10/17/2007
MarketMinder's View: Overvalued? Oh no! We’re fairly certain the IMF lacks the authority to say how currencies should be valued. But it doesn’t really matter because the dollar’s strength isn’t predictive for stock market returns.
Sensible Stories
By , Bloomberg, 10/17/2007
MarketMinder's View: Every time an industry becomes successful, governments step up regulation. If investors feel hedge funds lack transparency (we sure think they’re pretty muddy), they don’t have to participate. Easy as that.
Sensible Stories
By , Café Hayek, 10/16/2007
MarketMinder's View: More evidence a free-market solution is preferable to a state-run institution every time.
Market Misperceptions
By , Kiplinger, 10/16/2007
MarketMinder's View: Maybe it will, maybe it won’t. Either way, it’s not predictive for stocks.
Market Misperceptions
By , CNNMoney.com, 10/16/2007
MarketMinder's View: Higher oil prices shouldn’t make you fear for stocks. Historically, there’s no meaningful correlation. If you’re like us, you see higher oil prices as symptomatic of a growing global economy.
Market Misperceptions
By , The Wall Street Journal, 10/16/2007
MarketMinder's View: The more the press agrees China is a bubble, the more we know it’s likely not. Those fears actually remove a lot of market risk.
Sensible Stories
By , US News & World Report, 10/16/2007
MarketMinder's View: Countries with the strongest GDP have the best market returns, right? Not necessarily. First, the market is a leading economic indicator. Second, many factors play into market return—not just economic growth.
Sensible Stories
By , The Wall Street Journal, 10/16/2007
MarketMinder's View: This year’s Nobel Laureates in economics owe a debt of gratitude to history’s free-market revolutionaries.
Market Misperceptions
By , CNNMoney.com, 10/16/2007
MarketMinder's View: Yawn. ZZZZZZZzzz.
Market Misperceptions
By , CNNMoney.com, 10/16/2007
MarketMinder's View: How is this news? When are investors not worried about something?
Market Misperceptions
By , CNNMoney.com, 10/16/2007
MarketMinder's View: “It's been said many times, but now consumers are truly tapped out” Really? This time? The media’s been wrong every other time, but this time . . . no . . . this time we’re supposed to believe they’ll be right. Nonsense. Ignore.
Market Misperceptions
By , Barron’s, 10/16/2007
MarketMinder's View: This article argues a weak dollar is economically good, not bad. While it’s a refreshing take, and a weak dollar certainly has some positives, it doesn’t matter much for the market. Weak or strong, the dollar’s relative strength doesn’t dictate stock market direction.
Sensible Stories
By , CNNMoney.com, 10/16/2007
MarketMinder's View: Forget all the dour implications in this article and read what Mr. Bernanke had to say, “Rather than becoming more crisis-prone, the financial system is likely to emerge from this episode healthier and more stable than before.” All without goofy government intervention.
Market Misperceptions
By , Bloomberg, 10/16/2007
MarketMinder's View: Yet, US stocks were positive in August.
Sensible Stories
By , Forbes, 10/16/2007
MarketMinder's View: A good reminder not to follow the crowd. Rather, to make better market decisions, we should observe collective sentiment to drive unique forecasting.
Sensible Stories
By , The Wall Street Journal, 10/16/2007
MarketMinder's View: What’s this? Increased regulation led to higher costs for investors? Unfathomable. The more regulators try to “protect” us, the more protection we need from the regulators.
Sensible Stories
By , Investor’s Business Daily, 10/15/2007
MarketMinder's View: We doubt a new tax will pass in today’s gridlocked political environment, and another AMT patch is widely expected—but it’s worth keeping an eye on tax code changes.
Sensible Stories
By , The Wall Street Journal, 10/15/2007
MarketMinder's View: A compelling view that the FHA is often the cause of (not the answer to) housing problems, with FHA-insured loans frequently at the root of mortgage market excesses. Once again—a government-backed entity causing more problems than it solves.
Market Misperceptions
By , The Associated Press via ABC News, 10/15/2007
MarketMinder's View: Energy prices tell you nothing about future stock prices.
Market Misperceptions
By , Barron’s, 10/15/2007
MarketMinder's View: The idea that “little guy” investors being “tempted” into buying stocks is a bearish indicator is ridiculous. That in itself tells you nothing about speculation or euphoric sentiment.
Sensible Stories
By , The Associated Press via The Washington Post, 10/15/2007
MarketMinder's View: We don’t put much faith in the Nobel (it has a spotty record at best in foreseeing truly important economic innovations). Nonetheless, it’s important for investors to keep up with the latest thinking on how capital markets function.
Market Misperceptions
By , Kiplinger’s Personal Finance, 10/15/2007
MarketMinder's View: Ignore this at all costs! Past performance can’t reveal anything about the future.
Market Misperceptions
By , The Financial Times, 10/15/2007
MarketMinder's View: Investors should ignore such rhetoric. The dollar’s movement is not predictive of future stock prices. And anyway, investors must think globally to be successful, not just about America.
Sensible Stories
By , TCS Daily, 10/15/2007
MarketMinder's View: If there is a problem with today’s credit markets, it’s lack of disclosure on certain kinds of investment instruments. Requiring better disclosure is much more palatable than regulation or prohibition of operations. Let the markets decide if a business model is viable, not the government.
Market Misperceptions
By , The Wall Street Journal, 10/15/2007
MarketMinder's View: Ugh. While we agree a repeat of October 1987 is unlikely—investors would do just as well to ignore such inane comparisons altogether.
Sensible Stories
By , The New York Times, 10/15/2007
MarketMinder's View: Emerging markets fundamentals are very healthy—it’s still a great environment for further expansion.
Sensible Stories
By , Barron’s, 10/15/2007
MarketMinder's View: Rates are still at levels conductive to economic growth and a stabilized or (believe it or not) growing real estate industry.
Sensible Stories
By , The New York Times, 10/15/2007
MarketMinder's View: We prefer a private solution such as this to government intervention any day.
Sensible Stories
By , Barron’s, 10/15/2007
MarketMinder's View: “Everyone thinks China has run too far, too fast, so there is actually pessimism...as it keeps hitting new highs—which is very bullish.”
Market Misperceptions
By , Barron’s, 10/15/2007
MarketMinder's View: Another speculative headline about what “might” happen. Very few facts. Ignore.
Sensible Stories
By , Kudlow’sMoneyPolitics, 10/12/2007
MarketMinder's View: “Your wall of worry is actually driving stocks higher. You have been completely wrong.”
Sensible Stories
By , US News & World Report, 10/12/2007
MarketMinder's View: While we don’t want you to chase heat overseas, it’s very true American investors don’t invest nearly enough globally. America is only about 50% of the world’s capital markets!
Market Misperceptions
By , CNNMoney.com, 10/12/2007
MarketMinder's View: But nothing! Why arbitrarily strip out auto and gasoline sales? US Consumers are still shopping, and core inflation remains low.
Sensible Stories
By , Businessweek, 10/12/2007
MarketMinder's View: Yes, it does.
Sensible Stories
By , Bloomberg, 10/12/2007
MarketMinder's View: Wow. That’s a lot of demand for debt. Hmm. Maybe there really isn’t a “credit crunch.”
Market Misperceptions
By , MSNMoney, 10/12/2007
MarketMinder's View: While we agree investors should invest overseas, a weak dollar shouldn’t scare investors out of US stocks. The dollar’s relative strength doesn’t dictate stock market direction.
Sensible Stories
By , The Wall Street Journal, 10/12/2007
MarketMinder's View: Retail sales beat expectations. Inflation remains tame. Sounds good to us.
Dueling Headlines
By , MSNBC.com, 10/12/2007
MarketMinder's View: Huh? This one is self-explanatory.
Market Misperceptions
By , CBS News, 10/12/2007
MarketMinder's View: Wait a minute. They only started tracking these figures in 1986? Basically, this entire premise is conjecture. Plus, the great majority of Americans are better off today than even 20 years ago. Ignore.
Market Misperceptions
By , Bloomberg, 10/12/2007
MarketMinder's View: We fail to see how Milton Friedman wouldn’t like supply-side tax cuts. Further, the worst form of inequality is to try to make unequal things equal. Just ask Aristotle.
Market Misperceptions
By , BusinessWeek, 10/12/2007
MarketMinder's View: There will be another market crash, sure. But it will be because of a supply-demand imbalance sometime down the road, not because the market is systemically flawed.
Sensible Stories
By , Forbes, 10/12/2007
MarketMinder's View: Great commentary on misconceptions regarding oil prices and their correlation to the broad economy and stock market.
Sensible Stories
By , Bloomberg, 10/12/2007
MarketMinder's View: "The overall impact on the entire economy and markets from housing has been exaggerated.'' Yep. Amen to that.
Market Misperceptions
By , San Francisco Chronicle, 10/12/2007
MarketMinder's View: Of course free trade doesn’t cure all ills. But overall, vastly more people benefit from cheaper goods and improved technology made possible through globalization. “Fair trade” is just a euphemism for “mercantilism”—a form of government intervention that’s proved feckless galvanizing economic prosperity. Just ask France.
Sensible Stories
By , BBC News, 10/11/2007
MarketMinder's View: We wonder if they’ll re-think rules for Canadian companies acquiring foreign firms – we didn’t think so. This is probably just a minor negative but the rise of protectionist rhetoric is never welcome.
Market Misperceptions
By , The Wall Street Journal, 10/11/2007
MarketMinder's View: No matter how badly the media wants you to worry, the fact is markets have already fully priced the subprime and housing issue. Therefore, this is a dead issue and has no power to sink stocks.
Sensible Stories
By , The Wall Street Journal, 10/11/2007
MarketMinder's View: Little by little, China is allowing its citizens access to free markets. Greater freedom leads to greater pursuit of self-interested goals, leading to greater global commerce, leading to a stronger global economy, leading to greater aggregate prosperity, income, and living conditions…one step at a time.
Sensible Stories
By , The Wall street Journal, 10/11/2007
MarketMinder's View: Now Europeans are jumping on the bandwagon – darn China and their cheap stuff. Do politicians really want people in their own countries to pay more for goods?
Market Misperceptions
By , Economist, 10/11/2007
MarketMinder's View: Using backward-looking, semi-scientific surveys is no way to make accurate investment decisions. Ignore.
Market Misperceptions
By , The Wall Street Journal, 10/11/2007
MarketMinder's View: We like looking on the bright side of things but this convoluted way of getting there is questionable.
Market Misperceptions
By , ABC News, 10/11/2007
MarketMinder's View: This is funny, and also kind of sad: An economic approach to marriage.
Market Misperceptions
By , Bloomberg, 10/11/2007
MarketMinder's View: If an expanding trade deficit never impeded stock market gains or economic growth to begin with, then why would a contracting trade deficit make any difference? Ignore it altogether.
Market Misperceptions
By , MSNBC.com, 10/11/2007
MarketMinder's View: Is this surprising to anyone? Was there some speculation that they cut rates for another reason?
Sensible Stories
By , BBC News, 10/11/2007
MarketMinder's View: Music to our ears.
Market Misperceptions
By , The Wall Street Journal, 10/11/2007
MarketMinder's View: A classic example of why investors should ignore short term (particularly daily) market movements. Insofar as we can tell, earnings have been just dandy and stock markets surging—but you could never tell from this headline.
Sensible Stories
By , 10/11/2007
MarketMinder's View: Stellar global economic growth continues to spur high demand for raw materials.
Market Misperceptions
By , CNNMoney.com, 10/11/2007
MarketMinder's View: Rising stocks are a good thing—not something to be afraid of. See yesterday’s commentary, “Happy Anniversary!” for more.
Market Misperceptions
By , Reuters, 10/11/2007
MarketMinder's View: What “resilience” are they talking about exactly? Insofar as we can see, the economy was NEVER weak to begin with—only investors’ perception of it.
Sensible Stories
By , ABC News, 10/11/2007
MarketMinder's View: Yes! And neither should you (unless you’re vacationing in Europe). Currency movements tell us nothing about the direction of stock prices.
Sensible Stories
By , Bloomberg, 10/11/2007
MarketMinder's View: A different way to say this: Now that the faux credit and housing fears are kaput, it’s becoming more obvious by the day that stocks are a great value.
Sensible Stories
By , Money Magazine via CNNMoney.com, 10/11/2007
MarketMinder's View: We agree but would extend this imperative to all investors, not just young ones. Annuities are very bad things.
Sensible Stories
By , The Wall Street Journal, 10/11/2007
MarketMinder's View: A great point of view: Instead of laying blame on foreign countries, Europe should focus on making itself more competitive.
Sensible Stories
By , BBC News, 10/10/2007
MarketMinder's View: France = Hotbed of Capitalism. Sorry, we couldn’t even keep a straight face writing that but at least the rhetoric is moving in the right direction.
Market Misperceptions
By , Times Online, 10/10/2007
MarketMinder's View: Has anyone heard this before? Exactly – if everyone is talking about one topic, it’s already priced into the market.
Sensible Stories
By , International Herald Tribune, 10/10/2007
MarketMinder's View: Yes! The party isn’t over! Expect the M&A boom to resume.
Market Misperceptions
By , MSNBC.com, 10/10/2007
MarketMinder's View: Wait a minute . . . they had to revise their forecast 8 times this year? Meanwhile, home prices were higher in August, not lower. Maybe we shouldn’t necessarily take these forecasts as bible truth.
Sensible Stories
By , Kiplinger, 10/10/2007
MarketMinder's View: Five years old! And counting . . .
Sensible Stories
By , Bloomberg, 10/10/2007
MarketMinder's View: The international community seems to get the picture. Why can’t we?
Market Misperceptions
By , The Motley Fool, 10/10/2007
MarketMinder's View: The article purports the Fed rate cut is fueling rising stocks. Incorrect. The Fed cut helped people over their correction gloom, but a growing global economy, strong corporate earnings, and a shrinking stock supply have far more impact on stock prices.
Sensible Stories
By , The Los Angeles Times, 10/10/2007
MarketMinder's View: More feckless follies from Congress—very typical of the back half of a president’s term and very bullish. (For more, see MarketMinder commentary “Veto Power,” 10/04/2007.)
Market Misperceptions
By , The Wall Street Journal, 10/10/2007
MarketMinder's View: Wow. It’s patently insane to think the world isn’t, overall, much better off for technological innovation and globalization. For evidence, please Google “Starving oppressed population North Korea.”
Dueling Headlines
By , Reuters, 10/10/2007
MarketMinder's View: We contend the credit crunch won’t have much economic impact, since there never was a credit crunch in the first place.
Sensible Stories
By , Bloomberg, 10/10/2007
MarketMinder's View: “The economic data have not made much of a case for any additional easing.” We’d argue there wasn’t much of case to lower rates in the first place, but no harm done. Small moves don’t do much.
Sensible Stories
By , The Wall Street Journal, 10/10/2007
MarketMinder's View: We can’t even comment we’re so excited – just read it.
Sensible Stories
By , BusinessWeek, 10/10/2007
MarketMinder's View: “S&P finds no correlation between movement in the greenback and the performance of the S&P 500 since 1990.” Exactly.
Sensible Stories
By , Financial Times, 10/10/2007
MarketMinder's View: Remember a month ago when M&A was supposedly dead in the water? Never believe such doomsday stories.
Market Misperceptions
By , The Telegraph, 10/10/2007
MarketMinder's View: Anything but technical analysis!
Sensible Stories
By , Reuters, 10/10/2007
MarketMinder's View: We hope the push for freer trade won’t be stalled. Certainly there will be those affected by reduced subsidies and import tariffs, but cheaper goods and a higher standard of living in aggregate far offset any negatives.
Market Misperceptions
By , 10/09/2007
MarketMinder's View: Even the rich need a sympathetic ear every now and then…
Sensible Stories
By , Bloomberg, 10/09/2007
MarketMinder's View: For all the whining about a strong euro, it appears solid economic growth will continue in Europe.
Market Misperceptions
By , Forbes, 10/09/2007
MarketMinder's View: This is exactly wrong. Volatility measures tell you nothing at all about future stock prices in either direction.
Sensible Stories
By , The Wall Street Journal, 10/09/2007
MarketMinder's View: We don’t see one either.
Market Misperceptions
By , BBC News, 10/09/2007
MarketMinder's View: As these existing bureaucratic organizations worldwide become increasingly irrelevant, it’s too bad to see another one popping up – especially one so overtly anti-capitalism.
Sensible Stories
By , portfolio.com, 10/09/2007
MarketMinder's View: Despite the scary headline, the article correctly points out subprime makes up only 10% of the total mortgage market, and therefore isn’t worth fretting over.
Market Misperceptions
By , Bloomberg, 10/09/2007
MarketMinder's View: This is a non-issue for global stock investors. Currency movements aren’t predictors of stock returns.
Market Misperceptions
By , Kiplinger, 10/09/2007
MarketMinder's View: “Income Replacement Funds” are simply a new twist on an old idea. Watch out for higher fees usually attached to such products.
Sensible Stories
By , The Washington Post, 10/09/2007
MarketMinder's View: The do-nothing Congress keeps doing nothing—very bullish for stocks. See our past commentary, “Veto Power” 8/5/07, for more.
Market Misperceptions
By , The Wall Street Journal, 10/09/2007
MarketMinder's View: This is a joke, right? Just a couple weeks ago all we heard about was a new bear market…now it’s back to bubble-watch?
Sensible Stories
By , CNNMoney.com, 10/09/2007
MarketMinder's View: Ugh. Another bad idea propagated by a government agency. What is so bad about letting the free market decide rates? Let’s hope the mortgage lenders resist.
Market Misperceptions
By , Reuters, 10/09/2007
MarketMinder's View: Two big problems with this one: First, what “new” bull market? It’s almost five years old! Second, that investors are still skittish is evidence in itself stocks have further to climb.
Sensible Stories
By , The Wall Street Journal, 10/09/2007
MarketMinder's View: Deficits are actually a good thing for equities so we don’t see this as necessarily a huge positive but it should serve to allay some fears. With a very cautious investment climate already, the least bit of optimism can be a good thing.
Market Misperceptions
By , Financial Times, 10/09/2007
MarketMinder's View: We hate to break the news but stock markets don’t wait for investors to relax. If you need proof, most major equity indexes are up around 10% since mid-August.
Market Misperceptions
By , NPR.org, 10/09/2007
MarketMinder's View: “We are absolutely going to see a recession.” That’s right! We will see a recession one day. But it’s not anytime soon. Turning bearish too early is one of the worst mistakes an investor can make. Today’s global economy is chugging along just fine.
Market Misperceptions
By , The New York Times, 10/09/2007
MarketMinder's View: This is just the beginning. Brace yourself for a slew of worried stories about holiday season retail sales.
Sensible Stories
By , The Wall Street Journal, 10/09/2007
MarketMinder's View: This is one to keep an eye on. In similar cases the Supreme Court historically sided with business. Either way, the decision will affect business practice and litigation looking ahead. For more, see yesterday’s commentary, “Global Politics Update.”
Sensible Stories
By , Financial Times, 10/08/2007
MarketMinder's View: This is great news! No, not that banks lost money but the market now has certainty as to the extent of the losses – this should be a good thing for equities.
Market Misperceptions
By , TheStreet.com, 10/08/2007
MarketMinder's View: Should you be concerned? Nah—the author admits he’s suffering from confirmation bias—a common cognitive bias leading to investing errors, such as getting bearish during a bull market.
Market Misperceptions
By , Bloomberg, 10/08/2007
MarketMinder's View: After all the doom and gloom, it’s refreshing to read a positive take on the weak dollar. But beware—weak or strong, the dollar’s strength doesn’t dictate stock market direction.
Sensible Stories
By , BBC News, 10/08/2007
MarketMinder's View: Free trade is a wonderful thing.
Market Misperceptions
By , Bloomberg, 10/08/2007
MarketMinder's View: Probably, schmobably. How many times have we seen this headline and how many times has it proved meaningless? US consumers are alive and well.
Sensible Stories
By , CNNMoney.com, 10/08/2007
MarketMinder's View: Investors frequently forget bonds carry risks too, even muni bonds.
Market Misperceptions
By , National Post, 10/08/2007
MarketMinder's View: Is anyone else tired of Greenspan’s book tour?
Market Misperceptions
By , The Wall Street Journal, 10/08/2007
MarketMinder's View: The market loves climbing the wall of worry.
Market Misperceptions
By , National Post, 10/08/2007
MarketMinder's View: As if this is something new.
Sensible Stories
By , newsvine.com, 10/08/2007
MarketMinder's View: Very true! But a small move either direction won’t impact stocks much.
Sensible Stories
By , The Wall Street Journal, 10/08/2007
MarketMinder's View: Pessimism about the world going down the tubes is nothing new, but the world keeps getting better thanks to capitalism.
Sensible Stories
By , The Wall Street Journal, 10/08/2007
MarketMinder's View: While the headline is a total hoot (are they not even trying anymore?) this makes a good point. Yes—prices for oil, commodities, stocks, anything at all, could go either way. Prices don’t keep going in one direction forever. The challenge is finding out what’s likeliest to happen, and preparing in case your assumptions are wrong.
Sensible Stories
By , The Boston Globe, 10/08/2007
MarketMinder's View: A look at how our genes influence investing decisions.
Market Misperceptions
By , CNNMoney.com, 10/08/2007
MarketMinder's View: European officials fret America’s weak dollar and big current account deficit—but don’t give a good explanation why either is bad. MarketMinder faithful know a current account deficit isn’t a negative. In fact, it’s almost perfectly offset by our massive capital account surplus! And the dollar’s strength tells you nothing about global economic growth.
Sensible Stories
By , The Wall Street Journal, 10/08/2007
MarketMinder's View: Tax cuts to compete – you have to love it.
Sensible Stories
By , US News & World Report, 10/08/2007
MarketMinder's View: A look at our “Rocky Balboa Economy.”
Sensible Stories
By , MarketWatch, 10/05/2007
MarketMinder's View: This is one to keep an eye on. If Hong Kong’s transparent regulatory culture prevails, that would be great for Chinese stocks. But if Shanghai’s opaque system stifles Hong Kong’s already open and free markets, it could be a detriment to both
Market Misperceptions
By , CNNMoney.com, 10/05/2007
MarketMinder's View: Another classic “Things are fine now, but the future could be bad!” headline. See our past commentary, “The Could Headlines” 9/20/07, for more.
Market Misperceptions
By , National Post, 10/05/2007
MarketMinder's View: No euphoria here! This is a great time to be in stocks – they’re cheap and no one thinks they are.
Sensible Stories
By , Bloomberg, 10/05/2007
MarketMinder's View: The global infrastructure boom is likely just beginning as developing economies build new cities and developed economies replace old bridges, pipes, roads, utility grids, and more—a great catalyst for continued economic growth.
Market Misperceptions
By , The Telegraph, 10/05/2007
MarketMinder's View: At this point we’re not sure what doesn’t spark fears of a global shockwave but why should funds diversifying their holdings to seek higher expected returns (in equities) cause a "shockwave?"
Sensible Stories
By , Financial Times, 10/05/2007
MarketMinder's View: 63% higher than last year! This should continue given the low borrowing cost and high earnings yield environment that exists today.
Market Misperceptions
By , Bloomberg, 10/05/2007
MarketMinder's View: We agree more transparency is a good thing, but to suggest banning swaps is absurd. Let the market decide if swaps are a valid investment, not regulators.
Sensible Stories
By , Kudlow’s Money Politics, 10/05/2007
MarketMinder's View: Investors should always remember Bernanke’s post is a politically appointed position. That means to get reappointed he has to play a bit of politics himself. This is sort of a wonky conspiracy theory, but we like the idea of analyzing the Fed’s real intentions—they aren’t always altruistic for markets or the economy.
Sensible Stories
By , The Wall Street Journal, 10/05/2007
MarketMinder's View: Some emerging market countries are stalling progress of trade talks. Such protectionist politicking threatens to weaken global trade—a very bad thing.
Sensible Stories
By , Briefing.com, 10/05/2007
MarketMinder's View: MarketMinder has said on many occasions employment is a lagging economic indicator and therefore should be ignored when forecasting future stock prices. But just in case you’re still concerned, employment growth was super last month in the US.
Sensible Stories
By , Bloomberg.com, 10/05/2007
MarketMinder's View: Yes! This is precisely right! One of the best articles we’re seen in explaining gold as an investment.
Sensible Stories
By , The Wall Street Journal, 10/05/2007
MarketMinder's View: Standard operating procedure for a 3rd year in the presidential cycle. See yesterday’s “Veto Power” commentary for more about how the lack of legislation is bullish for equities.
Sensible Stories
By , Financial Times, 10/05/2007
MarketMinder's View: We don’t blame the media, per se. They’re competing for your attention (business) and subsequently are required to write sensationalist articles – readers just need to understand that and not make emotional investment decisions. But don’t let that stop you from lambasting the media from time to time.
Market Misperceptions
By , The Economist, 10/04/2007
MarketMinder's View: Fears of a “China bubble” actually take a lot of risk out of the market. The more folks fret emerging market bubbles, the more we know there’s room for stocks to rise.
Sensible Stories
By , Financial Times, 10/04/2007
MarketMinder's View: Indeed they have.
Sensible Stories
By , The Wall Street Journal, 10/04/2007
MarketMinder's View: No – Britney, K-Fed and the kids will not help the market move higher but as long as they keep making headlines we know there is no real news that should negatively affect markets.
Sensible Stories
By , Bloomberg, 10/04/2007
MarketMinder's View: “The best thing undeniably that a government can do with the money market is to let it take care of itself.” Amen.
Sensible Stories
By , Forbes, 10/04/2007
MarketMinder's View: MarketMinder often disagrees with the financial media. But Forbes’ Mr. Michaels was a class-act. He influence shall be missed.
Sensible Stories
By , NPR, 10/04/2007
MarketMinder's View: Increased M&A activity isn’t bad news—if the deals are transacted in cash, they reduce stock supply, and that’s exceedingly bullish! Hooray!
Sensible Stories
By , ABC News, 10/04/2007
MarketMinder's View: If America wants to remain competitive, we should emulate our European friends (like Ireland and Estonia) by simplifying the corporate tax code and dropping rates.
Sensible Stories
By , Globe and Mail, 10/04/2007
MarketMinder's View: So much for that worry (not that we were all that worried though).
Market Misperceptions
By , Reuters, 10/04/2007
MarketMinder's View: Not really. The “American Dream” means owning your own home—not speculating on residential real estate. “Speculating” implies “increased risk”—no matter the asset class.
Market Misperceptions
By , The Wall Street Journal, 10/04/2007
MarketMinder's View: Let’s see if we understand this. They didn’t do much research on an investment, got excited about some big (possible) returns, ignored the risk, and it backfired? How is this news?
Market Misperceptions
By , CNN Money, 10/04/2007
MarketMinder's View: The beauty of a do-nothing Congress - no legislation to spook markets!
Market Misperceptions
By , International Business Times, 10/04/2007
MarketMinder's View: Technically, there never was a credit crisis. Sorry. Treasury and investment grade corporate bond rates are dropping—making borrowing cheaper today than July. Cheaper borrowing rates are the opposite of a credit crunch.
Sensible Stories
By , The Wall Street Journal, 10/04/2007
MarketMinder's View: BOO! HISS! Free trade is a vital driver for a healthy global economy. Increasing protectionism is a risk to watch.
Sensible Stories
By , Business Week, 10/04/2007
MarketMinder's View: We don’t agree with the dour pronouncements on the health of corporate earnings, but we certainly agree resurging M&A activity is in the cards—very bullish.
Market Misperceptions
By , MSNBC.com, 10/04/2007
MarketMinder's View: Wait just a minute – if this means no pumpkin pie this fall while we watch the markets hit new highs, we’re not going to be happy campers.
Market Misperceptions
By , Bloomberg, 10/04/2007
MarketMinder's View: An alternate headline could be “Unemployment Still Near Historic Lows.”
Market Misperceptions
By , TheTrumpet.com, 10/04/2007
MarketMinder's View: If the world is so “suspicious” of America, why is foreign investment here increasing? Ignore.
Sensible Stories
By , BusinessWeek, 10/03/2007
MarketMinder's View: No. Read MarketMinder commentary “October Horrors,” 10/01/2007.
Sensible Stories
By , Forbes, 10/03/2007
MarketMinder's View: Successful top-down investors should consider a country’s regulatory environment when making investing decisions.
Market Misperceptions
By , The Telegraph, 10/03/2007
MarketMinder's View: Sensational warnings of impending doom in global economies and the market are the signs the market has farther to climb. When sentiment turns euphoric, then it’s time to worry.
Sensible Stories
By , Bloomberg, 10/03/2007
MarketMinder's View: More positive news on the employment front.
Sensible Stories
By , MSNBC.com, 10/03/2007
MarketMinder's View: Political naptime! With senators busy condemning newspaper ads and radio entertainers and a President getting the hang of the veto pen, not much will pass this year or next. Legislative risk aversion should dissipate—a very bullish feature for stocks!
Sensible Stories
By , The Wall Street Journal, 10/03/2007
MarketMinder's View: Darn innovation and globalization making everything cheaper!
Sensible Stories
By , Financial Times, 10/03/2007
MarketMinder's View: Exactly! But asking politicians to avoid the temptation of going too far is like giving a small child a bag of candy and then asking them to eat just one.
Market Misperceptions
By , CNNMoney.com, 10/03/2007
MarketMinder's View: Classic. Politicians are demanding an investigation into who evilly provided credit access to lower-income individuals so they could buy their own homes and begin increasing their net worth. Oh the horror! The good news: This will distract politicians from passing any material legislation for months.
Sensible Stories
By , Kudlow’sMoneyPolitic$, 10/03/2007
MarketMinder's View: Yep. It’s a beautiful world.
Sensible Stories
By , US News & World Report, 10/03/2007
MarketMinder's View: The stock market, a leading economic indicator, has been telling us all year it doesn’t think a recession is in the cards in the near future.
Sensible Stories
By , The Sydney Morning Herald, 10/03/2007
MarketMinder's View: A great look at how most people misinterpret debt as a bad thing.
Market Misperceptions
By , Wall Street Journal, 10/03/2007
MarketMinder's View: The opposite of right. A weak dollar doesn’t cause a trade deficit, nor vice versa. America’s current account deficit is nearly perfectly offset by the capital account surplus (oddly, not mentioned in this article). And the dollar doesn’t dictate stock market direction or impact economic growth much at all!
Market Misperceptions
By , The New York Times, 10/03/2007
MarketMinder's View: Sure. A fake credit crisis might dash hopes for a make-believe Fall rally. But over here in reality-land, stocks seem set to deliver a nicely positive 2007.
Market Misperceptions
By , The Wall Street Journal, 10/03/2007
MarketMinder's View: This article assumes there’s some mean profits must revert to. Wrong way to think. Profits (and the economy too) will keep growing until some force knocks them off course. Read “Vector Investing,” 09/27/2007.
Sensible Stories
By , Houston Chronicle, 10/03/2007
MarketMinder's View: Probably very true! And it was never that big a deal economically anyway.
Sensible Stories
By , Forbes, 10/03/2007
MarketMinder's View: Unions will have only themselves to blame when their members are all unemployed after they drive Detroit’s automakers out of business. Read MarketMinder commentaries “Laboring Through Summer, Parts 1 & 2,” 8/30 and 8/31/2007.
Market Misperceptions
By , Herald Sun, 10/03/2007
MarketMinder's View: Don’t duck for cover and let the market leave you in its dust.
Sensible Stories
By , Financial Times, 10/02/2007
MarketMinder's View: Americans consistently fret over the weakness of the US dollar, but it’s interesting to note that just as many fret over the strength of their currency.
Market Misperceptions
By , CNNMoney.com, 10/02/2007
MarketMinder's View: Home sales aren’t predictive for stocks and aren’t predictive for home prices either, apparently, since home prices rose in August.
Sensible Stories
By , MarketWatch, 10/02/2007
MarketMinder's View: Nope—your brain is your worst enemy, which is why understanding how and why your brain goes haywire can help reduce investing errors.
Market Misperceptions
By , Investors.com, 10/02/2007
MarketMinder's View: Stock splits are purely cosmetic. They don’t change the value of a company or tell you anything about where stocks are going in the future.
Sensible Stories
By , Times Online, 10/02/2007
MarketMinder's View: Dire headlines are diverting individuals from the real news – the stock market is fine and the economy strong.
Market Misperceptions
By , Financial Times, 10/02/2007
MarketMinder's View: And you know what – this “damage” had been discounted into the market and most of these banks, and the broad market, moved higher yesterday.
Sensible Stories
By , The Washington Post, 10/02/2007
MarketMinder's View: “Subprime mortgages were and are risky, but they are worth it.” We agree! More people owning homes is good, not bad.
Sensible Stories
By , Forbes, 10/02/2007
MarketMinder's View: Because fundamentals remain ripe for M&A and stock buybacks, expect to see the boom resume. (Read “Mind the Gap,” 09/28/2007)
Market Misperceptions
By , Bloomberg, 10/02/2007
MarketMinder's View: “The rate cuts by the Fed are unlikely to save housing.'” Right, because the recent Fed cut lowered the rate on short-term money a little bit, which didn’t impact what everyone was fretting much at all! No matter, the economy doesn’t need “saving” anyway.
Sensible Stories
By , The Wall Street Journal, 10/02/2007
MarketMinder's View: Michigan seems to be running for “Least Business-Friendly State in the Union.” May we suggest a little supply-side economics for the Wolverines?
Sensible Stories
By , The Telegraph, 10/02/2007
MarketMinder's View: As one official said, “It’s cheap, why not.” Isn’t the easy flow of global capital wonderful?
Market Misperceptions
By , International Business Times, 10/02/2007
MarketMinder's View: Is he right or is he wrong? Doesn’t really matter—housing is too small relatively to impact our massive economy much.
Market Misperceptions
By , Financial Times, 10/02/2007
MarketMinder's View: Credit markets are clearly not as robust as they were in June (yet), but the equity markets are the best indicator we have of future economic strength and they are clearly telling us that conditions look better, not worse going forward. The summer freak-out for credit markets seems to be receding.
Sensible Stories
By , The Washington Post, 10/02/2007
MarketMinder's View: Market indexes are hitting new highs while sentiment remains dour. Bullish!
Market Misperceptions
By , Reuters, 10/02/2007
MarketMinder's View: The fact so many people are referring to Emerging Markets as a bubble means they probably have more room to run.
Sensible Stories
By , MSNBC.com, 10/02/2007
MarketMinder's View: This article over-dramatizes the alleged “credit crunch,” but the message is right: The market doesn’t care about housing weakness—it’s too small relatively to matter much.
Sensible Stories
By , The Wall Street Journal, 10/02/2007
MarketMinder's View: 40 years ago when developing nations had no access to expansionary capital, these development agencies were beneficial. But globalization and financial innovation has exponentially increased access to private capital, thus diminishing the role of these international development agencies – this is a great sign!
Market Misperceptions
By , Wall Street Journal, 10/02/2007
MarketMinder's View: Fair enough! We tried a dose of realism. Reality says: Time to be bullish!
Market Misperceptions
By , BBC News, 10/02/2007
MarketMinder's View: No.
Sensible Stories
By , The Wall Street Journal, 10/01/2007
MarketMinder's View: Surprisingly well. Read why.
Sensible Stories
By , Sydney Morning Herald, 10/01/2007
MarketMinder's View: It’s true for Aussies, Brits, and Yanks. No matter what the grumpy media says, the facts don’t lie.
Market Misperceptions
By , Financial Times, 10/01/2007
MarketMinder's View: Maybe the era for these global bodies is over?
Sensible Stories
By , Financial Times, 10/01/2007
MarketMinder's View: Deals are continuing in portions of the market.
Market Misperceptions
By , International Business Times, 10/01/2007
MarketMinder's View: Cloudy? What’s cloudy about historically low unemployment in pretty much every developed economy?
Sensible Stories
By , US News & World Report, 10/01/2007
MarketMinder's View: Six great reasons to be bullish!
Sensible Stories
By , The Wall Street Journal, 10/01/2007
MarketMinder's View: Why is it not surprising that a government-created market is having problems?
Sensible Stories
By , BBC News, 10/01/2007
MarketMinder's View: "Whilst much has been said about the rise in debt, it is important to note that the value of households' assets has risen at a faster pace." Exactly.
Sensible Stories
By , MSNBC.com, 10/01/2007
MarketMinder's View: When business headlines are about pumpkin yields, you know there’s not much economically negative to report.
Market Misperceptions
By , The New York Times, 10/01/2007
MarketMinder's View: While perceptions about Fed cuts (or hikes) can impact sentiment in the very near term, Fed rate moves don’t dictate stock direction.
Market Misperceptions
By , The Boston Globe, 10/01/2007
MarketMinder's View: Foreign firms are interested in buying US assets because they perceive the opportunity for profit and growth. This is good, not bad.
Sensible Stories
By , The Wall Street Journal, 10/01/2007
MarketMinder's View: Surprisingly well. Read why.
Market Misperceptions
By , Wall Street Journal, 10/01/2007
MarketMinder's View: “The stock market is often seen as a leading indicator of economic growth. But there seems to be a disconnect here, because the economic outlook sure doesn't seem bright.” Huh? Remind us again—what does “leading indicator” mean?
Sensible Stories
By , newsvine.com, 10/01/2007
MarketMinder's View: Because it remains profitable for CEOs to borrow and buy back stock or acquire competitors, the M&A and buyback boom will resume!
Market Misperceptions
By , MarketWatch, 10/01/2007
MarketMinder's View: Ignore any article implying market weakness because Gordon Gecko (a fake person from a make-believe movie) is “in the news.”
Market Misperceptions
By , Kiplinger, 10/01/2007
MarketMinder's View: Setting the stage for a nice surprise to the upside.
Sensible Stories
By , The Washington Post, 10/01/2007
MarketMinder's View: Yes—thank you. All these fears flat (or slightly down) home prices will slow the economy or hamper the market are misguided.
Market Misperceptions
By , MSNBC.com, 10/01/2007
MarketMinder's View: The future is always uncertain – this is nothing new.