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Market Misperceptions
By , InternationalBusinessTimes.com, 12/31/2007
MarketMinder's View: There’s a lot to quibble over here. But most importantly, the notion that US consumers are over-indebted and on the brink of collapse is simply wrong.
Market Misperceptions
By , The Telegraph, 12/31/2007
MarketMinder's View: We shrug off the notion that there will be a US recession.
Sensible Stories
By , Bloomberg, 12/31/2007
MarketMinder's View: Exactly! While we don’t agree with every point, it’s very true folks aren’t appreciating what a good year 2007 was.
Market Misperceptions
By , Financial Post, 12/31/2007
MarketMinder's View: Some really bold and “surprising” claims here—the market will finish break-even. Huh? With a strong global economy and even semi-optimistic views like this one being for markets to break-even, there is substantial room for upside surprise.
Sensible Stories
By , 12/31/2007
MarketMinder's View: China continues to ease investing restrictions. Here’s hoping global capital markets extend the trend in 2008 and beyond.
Sensible Stories
By , The Wall Street Journal, 12/31/2007
MarketMinder's View: A worthwhile look at the growth of government influence during the Great Depression.
Market Misperceptions
By , Times Online, 12/31/2007
MarketMinder's View: What will economists think up next?
Market Misperceptions
By , MSNBC.com, 12/31/2007
MarketMinder's View: When was the last time there was certainty to start a year? Never! A healthy dose of uncertainty is natural and doesn’t in itself mean markets are poised for weakness.
Sensible Stories
By , Financial Times, 12/31/2007
MarketMinder's View: “’I’ve never seen an economy like this before, with all the doom and gloom. But it hasn’t let up for us at all…’” Dour sentiment and a strong economy—what a great combination!
Market Misperceptions
By , 12/31/2007
MarketMinder's View: While certainly not good news, it’s unlikely to have the power to sink stocks. We’d posit that continued housing woes in 2008 are widely expected and thus mostly reflected in stock prices already.
Sensible Stories
By , MSNBC.com, 12/31/2007
MarketMinder's View: 2007 was, on balance, another good year to be a global stock investor.
Market Misperceptions
By , Businessweek, 12/31/2007
MarketMinder's View: Once again we must ask: When is any time certain? The investing landscape is always risky, choppy, and ambiguous.
Sensible Stories
By , The Economist, 12/31/2007
MarketMinder's View: Regret-shunning and finger-pointing are classic reactions when assets lose value. Expect more headlines like these tied to the housing market in the months ahead.
Sensible Stories
By , The Independent, 12/31/2007
MarketMinder's View: “The bull market that started four years ago is maturing, but not finished” – We agree, talk of a recession is premature.
Market Misperceptions
By , 12/31/2007
MarketMinder's View: Oil prices were up in ‘07, but allow us to point out that neither the economy nor stocks sank as a result. High energy prices are a symptom of high demand, which implies economic strength, not woe.
Sensible Stories
By , The Independent, 12/31/2007
MarketMinder's View: “Plainly a lot of bad news is already in share prices” – Sentiment as dour as recently is unlikely to prove correct.
Sensible Stories
By , The Wall Street Journal, 12/31/2007
MarketMinder's View: We should hope that trade between the US and China becomes freer still next year, trade barriers invariably do more harm than good.
Market Misperceptions
By , New York Times, 12/28/2007
MarketMinder's View: It’s a bit strange to argue the US has been harmed by free trade when we currently enjoy very low unemployment, steady wage growth, and robust GDP expansion.
Sensible Stories
By , Financial Times, 12/28/2007
MarketMinder's View: We agree—the global economy is not a zero-sum game. The “rise of Asia” is representative of freer markets and strong global economic growth. This is great for everyone!
Sensible Stories
By , The New York Times, 12/28/2007
MarketMinder's View: Free trade—improving lives one motorcycle at a time.
Sensible Stories
By , Forbes, 12/28/2007
MarketMinder's View: We continue to take note of what the smart money is doing: Reinvesting in credit markets, not eschewing them.
Market Misperceptions
By , Financial Times, 12/28/2007
MarketMinder's View: Is there no end to the doomsday predictions for the dollar? What else can be blamed on the greenback? Global warming? Chickenpox? Thankfully, the dollar story of 2007 is that there wasn’t one.
Sensible Stories
By , Seeking Alpha, 12/28/2007
MarketMinder's View: Don’t buy the gloomy headlines proclaiming recession as a foregone conclusion.
Market Misperceptions
By , The Wall Street Journal, 12/28/2007
MarketMinder's View: We enjoy some New Year’s trivia as much as anyone, but betting on one month returns is not going to make you rich. You still need to focus on the other eleven.
Market Misperceptions
By , Businessweek, 12/28/2007
MarketMinder's View: With US unemployment rate near historic lows, it’s pretty darn tough to argue today’s employment situation will sink the economy in 2008.
Market Misperceptions
By , MSN Money, 12/28/2007
MarketMinder's View: The premise that consumer spending will sink along with home values doesn’t add up. Were it true, we wouldn’t have high GDP growth and solid consumer spending numbers like we do today.
Sensible Stories
By , The Wall Street Journal, 12/28/2007
MarketMinder's View: Bureaucratic inefficiency unnecessarily slows the availability of lifesaving drugs by stifling the private sector. What a shame.
Market Misperceptions
By , The Wall Street Journal, 12/28/2007
MarketMinder's View: One of the reasons the presidential election cycle IS effective as a forecasting tool for stocks is because of lessened political risk aversion on the part of investors—a common feature of presidential third and fourth years. 2007 featured no harmful new legislation, and we think the same will be true for 2008.
Market Misperceptions
By , CNNMoney.com, 12/28/2007
MarketMinder's View: It’s true housing markets haven’t rebounded as quickly as expected. But the reality is residential real estate makes up a small % of GDP (less than 5%), has yet to cause a recession, hasn’t squelched consumer spending, and hasn’t sunk stock markets.
Sensible Stories
By , The Independent, 12/28/2007
MarketMinder's View: “…things are never quite as good as they seem when the boom is in full swing, nor as bad as they appear when everyone is down in the dumps.” We agree and see today’s doom and gloom as overblown.
Sensible Stories
By , The Wall Street Journal, 12/28/2007
MarketMinder's View: “Over the past decade nearly 1.5 million more Americans fled California than arrived.” It’s relatively easy for people to vote against higher taxes by simply leaving the state. Politicians might want to start labeling these “progressive” tax policies as a form of population control.
Sensible Stories
By , The Wall Street Journal, 12/28/2007
MarketMinder's View: New legislation in response to corporate malfeasance is most often a terrible idea. We heartily agree.
Sensible Stories
By , Oxford Analytica via Forbes, 12/28/2007
MarketMinder's View: Much like the US, Germany has important political elections upcoming in 2008. It’s well worth understanding what’s at stake for one of the world’s largest economies.
Market Misperceptions
By , The Wall Street Journal, 12/28/2007
MarketMinder's View: While a good rundown of today’s credit markets, the conclusion is too dour and fails to account for the tremendous stability capital markets are showing today in spite of credit problems.
Market Misperceptions
By , Forbes, 12/27/2007
MarketMinder's View: Forecasting based on the length of economic cycles is an unscientific dangerous game. There is no rule saying an economy must recess after a certain number of years.
Market Misperceptions
By , The Wall Street Journal, 12/27/2007
MarketMinder's View: It’s sometimes difficult to see—and painful to endure—but this is an example of capitalism really working its mojo. Folks try new things. Some work, others don’t. The market works it out. It’s a testament to the strength and versatility of our capital markets that stocks are still up for the year and the economy continues to grow even as debt trouble ensues.
Sensible Stories
By , Guardian, 12/27/2007
MarketMinder's View: Maybe the death of the UK consumer is a bit overblown.
Sensible Stories
By , The Wall Street Journal, 12/27/2007
MarketMinder's View: Of the few things that Congress accomplished this year, this is certainly notable.
Market Misperceptions
By , MSNBC.com, 12/27/2007
MarketMinder's View: First, there is little factual evidence to support today’s recession talk. Second, why on earth should we look to the government to fix things anyway?
Market Misperceptions
By , The Wall Street Journal, 12/27/2007
MarketMinder's View: See our commentary “What Dollar Story?” for our take on the dollar.
Market Misperceptions
By , International Business Times, 12/27/2007
MarketMinder's View: Oil prices have yet to derail the economy and bear no correlation with stock prices. Ignore.
Sensible Stories
By , The Wall Street Journal, 12/27/2007
MarketMinder's View: Even huge government subsidies are failing to overcome economic reality in the European biodiesel effort.
Sensible Stories
By , The Wall Street Journal, 12/27/2007
MarketMinder's View: A fun, if a bit caustic, article blaming borrowers and lenders equally for today’s credit problems. Also, the chastising of government solutions to free market problems is an added bonus.
Market Misperceptions
By , International Business Times, 12/27/2007
MarketMinder's View: Not true. Holiday sales actually grew versus a year ago, and January is becoming a bigger piece of the overall holiday pie due to the proliferation of gift cards.
Market Misperceptions
By , The Associated Press via MSNBC, 12/27/2007
MarketMinder's View: Foreign investment is a good thing. Don’t let scary media stories talk you into protectionism. And don’t forget US enterprises are unrivaled in making foreign investments.
Sensible Stories
By , CNN.com, 12/27/2007
MarketMinder's View: This is without question a tragedy and cause for continued political unrest in Pakistan. However, like most heinous acts of terrorism, it’s unlikely to prove a significant stock market event.
Market Misperceptions
By , CNNMoney.com, 12/27/2007
MarketMinder's View: Consumer confidence is a tell-you-nothing, backward-looking metric. It has no predictive power when it comes to forecasting stocks.
Sensible Stories
By , Fortune via CNNMoney.com, 12/27/2007
MarketMinder's View: This is spot on. You can’t make stock market predictions using backward-looking data.
Sensible Stories
By , Globe Asia, 12/26/2007
MarketMinder's View: “A reduction of the trade deficit should not even be a primary objective of federal policy.” Amen.
Sensible Stories
By , The Wall Street Journal *(site subscription required), 12/26/2007
MarketMinder's View: A very smart perspective on sovereign wealth funds.
Sensible Stories
By , Slate, 12/26/2007
MarketMinder's View: A waist-trimming look at how economics can make you a better person.
Sensible Stories
By , Café Hayek, 12/26/2007
MarketMinder's View: An evolving economy is overall a vastly good thing.
Sensible Stories
By , The Wall Street Journal, 12/26/2007
MarketMinder's View: It’s too bad this headline is misleading—the article is actually about maintaining discipline and not getting too jittery when markets are volatile.
Sensible Stories
By , 12/26/2007
MarketMinder's View: This plan isn’t going through, because most banks don’t need the “rescue”—which is a good thing! They still have ample access to liquidity from elsewhere.
Market Misperceptions
By , Sydney Morning Herald, 12/26/2007
MarketMinder's View: We doubt it. Interest rates remain benign for average- and above-average-rated firms.
Sensible Stories
By , 12/26/2007
MarketMinder's View: “It's going to be a blue Christmas for Democrats in Congress--but not for some 20 million taxpayers who narrowly escaped being ensnared by the alternative minimum tax (AMT) this year.”
Sensible Stories
By , The Australian, 12/26/2007
MarketMinder's View: Even China’s getting in on the lower-tax game
Sensible Stories
By , Wall Street Journal, 12/26/2007
MarketMinder's View: Less government intervention is always good.
Market Misperceptions
By , 12/26/2007
MarketMinder's View: While certainly not good news, such an outcome was widely expected. Thus, it has little stock market impact.
Market Misperceptions
By , BusinessWeek, 12/26/2007
MarketMinder's View: This is all you need to get from this article—“Only two of the forecasters expect a recession.”
Sensible Stories
By , CNNMoney.com, 12/26/2007
MarketMinder's View: Yet another Financials firm finding liquidity from overseas.
Sensible Stories
By , International Business Times, 12/26/2007
MarketMinder's View: US assets are being courted by investors throughout the world—a sure sign of a well functioning global economy.
Market Misperceptions
By , 12/26/2007
MarketMinder's View: This is based on the wrong assumption that debt is bad. Debt in appropriate amounts is a great thing and—despite popular beliefs to the contrary—Americans are not abusing it today.
Market Misperceptions
By , Guardian, 12/26/2007
MarketMinder's View: Wait. No it’s not. The author admits none of the people leaving in the “tent city” lost a home in foreclosure. By this standard, what can’t be blamed on the “home crisis?”
Market Misperceptions
By , MSNBC.com, 12/24/2007
MarketMinder's View: This is the type of headline that is meant to frighten you. But don’t worry, all it means is that people see investment opportunities in the US—and that’s a good thing!
Market Misperceptions
By , Financial Times, 12/24/2007
MarketMinder's View: We take our hats off to anyone who can successfully compare a complex financial product to a pork product, although it’s doubtful we’ve seen the end of CDOs.
Sensible Stories
By , CNNMoney, 12/24/2007
MarketMinder's View: Predicting (wrongly) the death of the American consumer may be overtaking baseball as the American pastime.
Sensible Stories
By , Financial Times, 12/24/2007
MarketMinder's View: Deregulation is music to our ears.
Sensible Stories
By , Times Online, 12/24/2007
MarketMinder's View: Need we say more?
Sensible Stories
By , Times Online, 12/24/2007
MarketMinder's View: “Too many people use the excuse of the credit crisis to throw the baby out with the bathwater” – There’s plenty of reasons to be optimistic about 2008.
Market Misperceptions
By , The New York Times, 12/21/2007
MarketMinder's View: It’s so strange to us how folks are acting as if this was a terrible year—stocks are up for 2007!
Market Misperceptions
By , CNNMoney.com, 12/21/2007
MarketMinder's View: Our advice: Don’t buy a house on any street called “Pain.” That just won’t look very good on your holiday card return address stickers.
Market Misperceptions
By , New York Times, 12/21/2007
MarketMinder's View: This is more a political statement than a demonstration of clear thinking on economics.
Dueling Headlines
By , ABC News, 12/21/2007
MarketMinder's View: Overall bonuses this year for Wall Street were good. That’s because, minus the big mortgage lenders, Wall Street results were pretty good too.
Sensible Stories
By , The Wall Street Journal, 12/21/2007
MarketMinder's View: This is awesome. Political gridlock means less potential for harmful government regulation. That’s very bullish for stocks.
Market Misperceptions
By , Market Watch, 12/21/2007
MarketMinder's View: This amounts to recounting the worries du jour, not a meaningful description of what comprises economic health.
Sensible Stories
By , Bloomberg, 12/21/2007
MarketMinder's View: Yup. US consumers seem to be alive and well.
Sensible Stories
By , The Wall Street Journal, 12/21/2007
MarketMinder's View: Look no further than the Celtic Tiger to see the economic impact of tax cuts and deregulation.
Sensible Stories
By , Reuters via the International Tribune, 12/21/2007
MarketMinder's View: 2007 was a banner year for M&A throughout the world.
Sensible Stories
By , 12/21/2007
MarketMinder's View: Meaningful political change in South Korea is worth noting for globally-minded investors.
Sensible Stories
By , Financial Times, 12/21/2007
MarketMinder's View: The benefit of forecasts is they allow you to ascertain what is priced into the market. You can then determine whether the outcome will be better or worse than expected.
Market Misperceptions
By , Financial Times, 12/21/2007
MarketMinder's View: And yet that same deficit has been good for the pound over the last few years? Ignore.
Sensible Stories
By , The Wall Street Journal, 12/21/2007
MarketMinder's View: As you’ll see here (and how we’ve pointed out previously), earnings of non-financial institutions look great.
Market Misperceptions
By , Bloomberg, 12/21/2007
MarketMinder's View: Call us crazy, but what use is a user’s guide for the past?
Market Misperceptions
By , Businessweek, 12/20/2007
MarketMinder's View: See our past commentary, “Strength from Weakness” 12/19/07, for more.
Dueling Headlines
By , 12/20/2007
MarketMinder's View: It’s always a hoot to check in once in awhile and see how the media interprets daily market action.
Sensible Stories
By , The Washington Post, 12/20/2007
MarketMinder's View: As widely expected, Congress finally got around to extending the AMT patch. One of the few things they’ve accomplished all year.
Sensible Stories
By , The Wall Street Journal, 12/20/2007
MarketMinder's View: An excellent perspective on the 2008 presidential campaign.
Market Misperceptions
By , The Telegraph, 12/20/2007
MarketMinder's View: Increasing transparency in the markets is a positive move, but at this stage it remains largely rhetoric.
Market Misperceptions
By , MSNBC.com, 12/20/2007
MarketMinder's View: The ironic thing about so-called leading indicators is that they’re actually comprised of mostly backward-looking statistics (which tell you nothing about future stock performance).
Market Misperceptions
By , The Wall Street Journal, 12/20/2007
MarketMinder's View: The Psychic Friends Network of the finance industry (technical traders) is at it again. Chart reading is a lot like having mystics read tea leaves—both are bogus forecasting methods.
Market Misperceptions
By , International Business Times, 12/20/2007
MarketMinder's View: This headline is a bit misleading. The ECB didn’t raise rates because they believe economic growth is fine and they’d rather focus on inflation.
Market Misperceptions
By , The Washington Post, 12/20/2007
MarketMinder's View: This is political rhetoric and nothing more. Ignore.
Sensible Stories
By , The Wall Street Journal, 12/20/2007
MarketMinder's View: We should hope this free trade agreement can clear any hurdles.
Market Misperceptions
By , Times Online, 12/20/2007
MarketMinder's View: Continued economic growth does not mean recession.
Sensible Stories
By , MSNBC.com, 12/20/2007
MarketMinder's View: Turns out, despite credit market turmoil, the economy grew quite rapidly last summer.
Sensible Stories
By , The Economist, 12/20/2007
MarketMinder's View: An insightful look at M&A culture (or lack thereof) in Japan.
Sensible Stories
By , MarketWatch, 12/20/2007
MarketMinder's View: We agree: “…the credit crisis on Wall Street is really a confidence problem, not a structural one.”
Market Misperceptions
By , The Economist, 12/20/2007
MarketMinder's View: Comparing delinquent borrowers to zombies is fun but wrong. Default rates are still well below historical norms.
Sensible Stories
By , The Wall Street Journal, 12/20/2007
MarketMinder's View: A fun read on how emotions and natural human motivations affect investing behavior.
Market Misperceptions
By , Kiplinger, 12/19/2007
MarketMinder's View: While inflation is rising, wage growth is rising just as fast or faster in the US.
Sensible Stories
By , Forbes, 12/19/2007
MarketMinder's View: No matter what the government does, there is no quick fix to the mortgage problem fair for everyone. Any “solution” will ultimately be a political maneuver and little more. That’s one of many reasons the government should stay out of it.
Market Misperceptions
By , The Wall Street Journal, 12/19/2007
MarketMinder's View: Simply not true. The cost of debt for those with high credit ratings is LOWER today than at the beginning of the year. This means credit risk for those with good credit is lower too. Also, we note that default rates remain near historic lows in the US.
Sensible Stories
By , Bloomberg, 12/19/2007
MarketMinder's View: We’d say Greenspan had exactly the right idea about government: “Its sole ‘contribution’ is to substitute force and fear for incentive as the ‘protector’ of the consumer.” Given the losses lenders have incurred, there’s no doubt they’ll try to avoid similar mistakes in the future. Markets are capable of correcting themselves without government aid.
Dueling Headlines
By , MSNBC.com, 12/19/2007
MarketMinder's View: You’ll likely be inundated with forecasting surveys as 2008 approaches. Be careful with them—many are useless and sometimes misleading. See our past commentary, “Groundhog Day 2008,” 12/18/07, for more.
Market Misperceptions
By , The Telegraph Business Blog, 12/19/2007
MarketMinder's View: Headlines like this appear extreme, even by today’s standards!
Sensible Stories
By , Bloomberg, 12/19/2007
MarketMinder's View: Something doesn’t add up here. We don’t understand how tighter restrictions on lending will lead to a fix for subprime problems. It seems to us tighter restrictions just mean fewer loans.
Sensible Stories
By , RealClearMarkets, 12/19/2007
MarketMinder's View: A fun look at why a big trade deficit isn’t an economic negative.
Sensible Stories
By , Herald Sun, 12/19/2007
MarketMinder's View: No sign of a global recession here.
Market Misperceptions
By , Barron’s, 12/19/2007
MarketMinder's View: Just think for a moment if this attitude was justified for all time. You’d never be bullish! Ever. Uncertainty is a feature of all markets for all time.
Market Misperceptions
By , Reuters, 12/19/2007
MarketMinder's View: Our ridiculous story of the week.
Sensible Stories
By , The Washington Post, 12/19/2007
MarketMinder's View: Politicization of the global warming debate is leading to greater regulation, higher costs to end users, and new market inefficiencies. Not good.
Market Misperceptions
By , Investor’s Business Daily, 12/19/2007
MarketMinder's View: We’d take this seriously if we believed the UN had any way of actually enforcing a tax. This is political banter and little more.
Sensible Stories
By , Financial Times, 12/19/2007
MarketMinder's View: Whilst uncomfortable for some, eliminating subsidies will be of net benefit to free trade and the global economy.
Sensible Stories
By , US News, 12/18/2007
MarketMinder's View: We agree. Inflation remains mostly contained.
Sensible Stories
By , The New York Times, 12/18/2007
MarketMinder's View: Unintended consequences of corn subsidies are causing heinous market dislocations.
Sensible Stories
By , The Economist, 12/18/2007
MarketMinder's View: This is music to our ears. A gridlocked Congress means less economic meddling and lightened investor risk-aversion. Both are good for markets.
Sensible Stories
By , MarketWatch, 12/18/2007
MarketMinder's View: “Recent market gyrations might feel like a roller-coaster ride, but in fact they aren't that unusual.” Precisely! Read our past commentary, “You Call that Volatility?” 12/17/2007, for more.
Market Misperceptions
By , The Australian, 12/18/2007
MarketMinder's View: Foreign investment should be encouraged. The notion that sovereign wealth funds will spur anti-market behavior is probably overwrought at this point.
Market Misperceptions
By , International Business Times, 12/18/2007
MarketMinder's View: Obviously, this isn’t good news. However, this result was widely anticipated by the market and therefore already priced in. In fact, the drop was less than analysts expected.
Market Misperceptions
By , Kiplinger, 12/18/2007
MarketMinder's View: Either way, currency movements don’t much matter for well diversified global stock portfolios.
Sensible Stories
By , The Associated Press via The New York Times, 12/18/2007
MarketMinder's View: Unless there’s illegal activity afoot, what business is it of the Fed’s who lends and who borrows!? Let folks decide for themselves!
Sensible Stories
By , The Wall Street Journal, 12/18/2007
MarketMinder's View: We certainly take issue with some of this, but on balance it’s an informative view on how global economic output is measured.
Market Misperceptions
By , The Wall Street Journal, 12/18/2007
MarketMinder's View: This is sort of like saying, “The economy will be in a recession if it stops growing for two quarters.” They’re both obvious statements. Remember there’s a big difference between “if” and “will.”
Market Misperceptions
By , The Telegraph, 12/18/2007
MarketMinder's View: Trade deficits or surpluses are not necessarily indicative of market performance or economic strength. We need only look at the respective current account balances run by the US and Germany to realise this.
Sensible Stories
By , Financial Times, 12/18/2007
MarketMinder's View: Despite the fog and gloom there’s enough good news to suggest continued economic growth rather than recession.
Sensible Stories
By , 12/18/2007
MarketMinder's View: Amid credit crunch talk, there’s lately been a fair amount of deal talk too.
Market Misperceptions
By , Kiplinger, 12/17/2007
MarketMinder's View: Commercial real estate has remained strong this year and the fundamentals are positive—no reason to fret about it today.
Market Misperceptions
By , Financial Post, 12/17/2007
MarketMinder's View: Neither Canadians nor Americans should fret dollar weakness. The dollar’s relative strength doesn’t dictate market direction.
Market Misperceptions
By , TheStreet.com, 12/17/2007
MarketMinder's View: More inane Armageddon-speak.
Market Misperceptions
By , Reuters via The Sydney Morning Herald, 12/17/2007
MarketMinder's View: Uncle Alan continues to keep the spotlight firmly pointed in his direction with more dystopian rhetoric. Ignore it.
Sensible Stories
By , The Wall Street Journal *(site subscription required), 12/17/2007
MarketMinder's View: Discipline is perhaps the most important trait of successful investors.
Market Misperceptions
By , The Wall Street Journal * (site subscription required), 12/17/2007
MarketMinder's View: The truth is food and energy are an increasingly smaller part of overall consumption. Thus, rising prices in each category have an increasingly smaller effect on consumers.
Sensible Stories
By , Wall Street Journal, 12/17/2007
MarketMinder's View: Certain politicians will to need to rewrite stump speeches. Arguing everyone should “pay their fair share” of taxes is akin to demanding a tax hike on the poor and middle classes.
Sensible Stories
By , ABC News, 12/17/2007
MarketMinder's View: Business is booming out there…
Market Misperceptions
By , Bloomberg, 12/17/2007
MarketMinder's View: Right—and don’t expect another cut to ease “housing woes” either. The Fed funds rate has little impact on long-term, low-quality loans.
Sensible Stories
By , Bloomberg, 12/17/2007
MarketMinder's View: International demand for US financial assets is robust. This is a great thing.
Market Misperceptions
By , The Motley Fool, 12/17/2007
MarketMinder's View: No, this isn’t the title of the next apocalyptic Will Smith movie. Call us realists, but this seems a tad melodramatic.
Sensible Stories
By , Seeking Alpha, 12/17/2007
MarketMinder's View: Agreed.
Sensible Stories
By , 12/17/2007
MarketMinder's View: Long-term forecasts on most anything usually fall apart, because they’re generally based on static assumptions and current market conditions bound to change.
Market Misperceptions
By , Bloomberg, 12/17/2007
MarketMinder's View: It’s confusing to us why folks assume we need the government to solve our problems in the first place.
Sensible Stories
By , 12/14/2007
MarketMinder's View: Citigroup is bringing $49 billion of SIVs onto its balance sheet. Would one of the world’s largest banks do that if it was really in trouble? We think not.
Sensible Stories
By , 12/14/2007
MarketMinder's View: A worthwhile informational summary of central banks’ upcoming bond auctions.
Sensible Stories
By , The Wall Street Journal, 12/14/2007
MarketMinder's View: American politicians have outdone themselves this year with how little meaningful legislation has passed.
Sensible Stories
By , Financial Times, 12/14/2007
MarketMinder's View: This doesn’t just apply to Europe, threatening protectionist measures is dangerous politics.
Market Misperceptions
By , The Wall Street Journal, 12/14/2007
MarketMinder's View: This is a very interesting look at securitization as it relates to liquidity. Unfortunately, its dour conclusion on market consequences is far overwrought.
Sensible Stories
By , Forbes, 12/14/2007
MarketMinder's View: YES! Freedom and free markets are awesome!
Sensible Stories
By , Boston Globe, 12/14/2007
MarketMinder's View: Hooray! This is great advice.
Market Misperceptions
By , US News, 12/14/2007
MarketMinder's View: This piece reflects typical “Fed as Messiah” hokum. On balance, the Fed has been plenty accommodative and responsive to market concerns this year.
Sensible Stories
By , The Wall Street Journal, 12/14/2007
MarketMinder's View: Treasury rates (one of the primo inflation indicators in our view) are not signaling high inflation today.
Market Misperceptions
By , The New York Times, 12/14/2007
MarketMinder's View: This is more than a bit exaggerated, particularly the assertion that in the past the “Fed has been able to wave its magic wand and make market turmoil disappear.” Not even remotely right! Markets are tumultuous—always.
Market Misperceptions
By , Fortune, 12/14/2007
MarketMinder's View: Shame on those designers playing Scrooge and ruining our holiday shopping.
Market Misperceptions
By , 12/14/2007
MarketMinder's View: Few things are stranger to us than the tendency for economists to put “odds” on a recession, as if the economy’s fate is on a roulette wheel.
Market Misperceptions
By , Reuters, 12/14/2007
MarketMinder's View: The “action plan” hasn’t even been implemented, and some are already calling it a failure. Sheesh!
Sensible Stories
By , The New York Times, 12/14/2007
MarketMinder's View: Yup. It sure is.
Sensible Stories
By , International Business Times, 12/14/2007
MarketMinder's View: An eye-opening description of the hazards of central bank intervention.
Sensible Stories
By , The Wall Street Journal, 12/13/2007
MarketMinder's View: Two strong arguments against government-backed bailouts, rate freezes, and tax increases based on history and economic theory.
Sensible Stories
By , The Wall Street Journal, 12/13/2007
MarketMinder's View: “…foreign investment in this country has fueled economic growth and supported a strong standard of living for millions of Americans.” Amen.
Market Misperceptions
By , MSNBC.com, 12/13/2007
MarketMinder's View: We’d all be better off not paying attention to trade balances.
Sensible Stories
By , The Wall Street Journal, 12/13/2007
MarketMinder's View: A seldom mentioned fact: Much of the worry over subprime, asset write-downs, and mortgage securities is based on a dodgy index.
Sensible Stories
By , Businessweek, 12/13/2007
MarketMinder's View: The Fed’s new plan is more of a small gesture than a heavy-duty change to capital markets’ structure.
Sensible Stories
By , Financial Times, 12/13/2007
MarketMinder's View: Just part of the continual evolution of central banking activity around the world. See our commentary “But Wait, There’s More” from yesterday.
Market Misperceptions
By , Market Watch, 12/13/2007
MarketMinder's View: Unless Marlon Brando suddenly appears from the bushes and starts mumbling, “The horror... the horror...” we’re not buying it.
Sensible Stories
By , International Business Times, 12/13/2007
MarketMinder's View: US consumption continues its recent strength.
Sensible Stories
By , The Wall Street Journal, 12/13/2007
MarketMinder's View: A good guide on what not to do.
Market Misperceptions
By , 12/13/2007
MarketMinder's View: Don’t mistake negative market volatility for a new bear market. High fliers often sink the lowest in bull market corrections, only to retake leadership later on.
Sensible Stories
By , The Washington Post, 12/13/2007
MarketMinder's View: Political gridlock is a beautiful thing for stocks!
Sensible Stories
By , Kiplinger’s, 12/13/2007
MarketMinder's View: A good summary of what affects trade between the US and China. Many of these are applicable to global trade in general.
Market Misperceptions
By , Bloomberg, 12/13/2007
MarketMinder's View: While hedge funds represent only a tiny slice of capital markets and aren’t at all indicative of the whole, this article’s still pretty funny.
Market Misperceptions
By , CNNMoney.com, 12/13/2007
MarketMinder's View: The reason he’s making so much is because his company is really, really profitable. That’s a good thing.
Market Misperceptions
By , International Business Times, 12/12/2007
MarketMinder's View: We’re highly skeptical of a study’s ability to predict the status of 17-year-olds’ retirement accounts 40 years into the future.
Sensible Stories
By , Financial Times, 12/12/2007
MarketMinder's View: A good reminder that SWFs are nothing new—and nothing to worry about.
Sensible Stories
By , Bloomberg, 12/12/2007
MarketMinder's View: The Fed’s skeptical, and so are we.
Sensible Stories
By , The Wall Street Journal, 12/12/2007
MarketMinder's View: “Make no mistake: Emotions can hurt your investment results.” Remember that next time you start to panic about the fear du jour.
Sensible Stories
By , Forbes, 12/12/2007
MarketMinder's View: A clear-eyed look at the opportunities and obstacles in one emerging market.
Sensible Stories
By , The Wall Street Journal, 12/12/2007
MarketMinder's View: For all the talk of gas-guzzlers in America, the bigger (and more unnoticed) story is that infrastructure projects in the developing world are increasing demand for energy.
Market Misperceptions
By , CNN Money, 12/12/2007
MarketMinder's View: Nothing much like government picking winners and losers.
Sensible Stories
By , Bloomberg, 12/12/2007
MarketMinder's View: We love a big trade deficit! We hope we get a bigger one for Christmas. (Read “MarketMinder’s Letter to Santa,”12/10/2007.)
Sensible Stories
By , The Wall Street Journal, 12/12/2007
MarketMinder's View: We’d love a good fiscal stimulus right now, but given the political environment we’re probably more likely to get sparkle ponies for Christmas. See “MarketMinder’s Letter to Santa” for our wish list.
Market Misperceptions
By , Washington Post, 12/12/2007
MarketMinder's View: Well, it may seem that way to a nation largely still embroiled in communism, but we’re confident our free market economy can sort it out.
Market Misperceptions
By , The Telegraph, 12/12/2007
MarketMinder's View: And chocoholics of the world unite in protest…
Sensible Stories
By , Bloomberg, 12/12/2007
MarketMinder's View: A good reminder that widespread fear is frequently a sign actual risk is dissipating.
Sensible Stories
By , Bloomberg, 12/12/2007
MarketMinder's View: Much is being made of this, but it merely highlights that central bankers globally have ample ways to deal with banks’ liquidity needs.
Market Misperceptions
By , CNNMoney.com, 12/12/2007
MarketMinder's View: This article actually states restaurant sales growth likely won’t slow. We’re not sure why this is news, nor why the headline is so misleading.
Market Misperceptions
By , Financial Times, 12/11/2007
MarketMinder's View: Let us get this straight: non-US holdings of US dollars have amounted to $20,000bn in a free market and a “substitution account” created by the IMF in 1969 for “unwanted dollars” currently has $34bn, how does creating another one serve any purpose? Hasn’t the market spoken?
Market Misperceptions
By , CNNMoney.com, 12/11/2007
MarketMinder's View: This article predicts a dollar bottom—but even if that’s right, who cares? Weak or strong, the dollar’s strength doesn’t matter much for stocks. Historically, there’s no meaningful correlation.
Sensible Stories
By , The Telegraph, 12/11/2007
MarketMinder's View: Someone must have forgotten to tell these people that consumers are tapped out, or maybe it’s a sign that an economic apocalypse isn’t quite upon us.
Market Misperceptions
By , MSNBC.com, 12/11/2007
MarketMinder's View: This sure isn’t surprising given all the pessimism, but more importantly this is a backward looking statistic and won’t do much good when making forward-looking investment decisions.
Sensible Stories
By , Bloomberg, 12/11/2007
MarketMinder's View: The government “subprime bailout” plan largely amounts to a seal of approval for what lenders are doing anyway—it ultimately involves very little intervention and the less intervention the better.
Market Misperceptions
By , MarketWatch, 12/11/2007
MarketMinder's View: Oops! Lots of factual problems in this article, starting with this: There was no 2000-2002 recession. According to NBER, the 2001 recession was short and shallow—lasting only 8 months. That’s a doozy of an error.
Sensible Stories
By , The Wall Street Journal, 12/11/2007
MarketMinder's View: Great to see free-market thinking spreading so rapidly across Europe.
Sensible Stories
By , Forbes, 12/11/2007
MarketMinder's View: While we don’t agree with all the ideas suggested here, we agree very much that innovation is vital to the mortgage industry.
Sensible Stories
By , Financial Times, 12/11/2007
MarketMinder's View: A year after reforms were passed to cut red tape, guess how much was cut? None, although it should come as no surprise that government isn’t even efficient at getting rid of inefficiency.
Sensible Stories
By , International Herald Tribune, 12/11/2007
MarketMinder's View: The economic perils of high taxes illustrated.
Sensible Stories
By , Financial Times, 12/11/2007
MarketMinder's View: “There is little evidence so far that subprime losses are creating capital constraints for banks. Nor will there be, as long as they can raise as much new money as they want at reasonably attractive prices.” In an otherwise pessimistic article lies buried this little tidbit—you don’t hear that everyday!
Sensible Stories
By , Washington Post, 12/11/2007
MarketMinder's View: “Investing successfully is about looking ahead, while determining whether we're in a recession involves looking behind. Way behind. We won't know that a recession has started until months after it's begun.”
Market Misperceptions
By , Kiplinger, 12/11/2007
MarketMinder's View: Nice to know, but how is this helpful? Picking stocks based on last year’s performance is a poor strategy.
Market Misperceptions
By , MarketWatch, 12/11/2007
MarketMinder's View: Long-term trends in global energy consumption don’t have much to do with a 25 basis point cut in America’s Fed funds rate.
Market Misperceptions
By , New York Times, 12/10/2007
MarketMinder's View: The only good lesson to be gleaned here: Stocks tend to lead the way into recession. Yet, all major global indexes are nicely positive so far this year, so why all the worry?
Market Misperceptions
By , Reuters, 12/10/2007
MarketMinder's View: An alternate title could be: “Private Equity Firms, Awash in Cash, Flexible in Financing Operations.”
Sensible Stories
By , The New York Times, 12/10/2007
MarketMinder's View: While the headline might frighten people, the story speaks of banks restructuring debt on their own and the reduction of total SIV assets—this is an example of free capital markets functioning well.
Market Misperceptions
By , The Telegraph, 12/10/2007
MarketMinder's View: Is turning to socialism to “save Western Democracies” really the right solution? When has that ever worked?
Sensible Stories
By , The Wall Street Journal, 12/10/2007
MarketMinder's View: Americans are voting against high taxes!
Sensible Stories
By , Wall Street Journal *(site registration required), 12/10/2007
MarketMinder's View: We never thought we’d find occasion to say this, but, “Right on, Whoopi!”
Market Misperceptions
By , Barron’s, 12/10/2007
MarketMinder's View: We’re sorry . . . are we supposed to fear an unemployment rate that’s still historically low?
Market Misperceptions
By , Bloomberg, 12/10/2007
MarketMinder's View: But this is good news! Shouldn’t it be a Story of Interest? Nah—housing’s impact on the broader economy and stock market has been overwrought all along. This is nice news, but to understand what will move markets, focus elsewhere.
Sensible Stories
By , Wall Street Journal, 12/10/2007
MarketMinder's View: More congressional threats of action falling by the wayside—very typical for the back half of a president’s term, and very bullish. (Read “Veto Power,” 10/04/2007.)
Market Misperceptions
By , Seeking Alpha, 12/10/2007
MarketMinder's View: An alternate view: Employment growth is slowing because unemployment is historically low!
Sensible Stories
By , The Financial Times, 12/10/2007
MarketMinder's View: Yes. Yes they should.
Sensible Stories
By , The Wall Street Journal, 12/10/2007
MarketMinder's View: A detailed look at the mortgage plan—we’re having trouble figuring out how this is more than a way for government to say it's “doing something.”
Sensible Stories
By , newsvine.com, 12/10/2007
MarketMinder's View: “The United States and China, with increasingly dependent economies, have to work together to fight protectionist sentiment in both countries.” Amen.
Market Misperceptions
By , CNN Money, 12/10/2007
MarketMinder's View: We’re thinking of creating a new section for stories like these, “Stories of interest for people who’ve been asleep for the past few years.”
Sensible Stories
By , Washington Post, 12/10/2007
MarketMinder's View: “Companies created jobs at a moderate pace in November, the government said yesterday, suggesting that the labor market has not suffered excessively from the housing and financial market crises.” Precisely.
Sensible Stories
By , New York Times, 12/10/2007
MarketMinder's View: Foreigners aren’t investing in America’s Financials sector because they think it’s irrevocably doomed.
Sensible Stories
By , The Associated Press via The Washington Post, 12/07/2007
MarketMinder's View: “Employers added a modest 94,000 jobs to their payrolls in November, the unemployment rate held steady at 4.7 percent and wages grew briskly, encouraging signs the nation's employment climate is holding up in the face of turbulence in the housing and credit markets.”
Sensible Stories
By , The Wall Street Journal, 12/07/2007
MarketMinder's View: Those in the know don’t fear a recession anytime soon.
Sensible Stories
By , Financial Times, 12/07/2007
MarketMinder's View: Lack of significant legislative action is a good thing for markets.
Sensible Stories
By , Forbes, 12/07/2007
MarketMinder's View: Luckily, this so-called mortgage bailout plan appears to be relatively tiny and shouldn’t adversely affect the economy much.
Market Misperceptions
By , Financial Times, 12/07/2007
MarketMinder's View: If it’s not inflation, it’s deflation, and if it’s neither—it’s stagflation. We’d prefer to enjoy today’s low inflation, healthy economic growth environment and ignore the doomsayers.
Market Misperceptions
By , ABC News, 12/07/2007
MarketMinder's View: Huh? Finally? So, third quarter GDP growth estimated at a whopping 5% doesn’t count?
Market Misperceptions
By , The New York Times, 12/07/2007
MarketMinder's View: Learn to love headlines like this. Yet another rationalization of good news as somehow bad.
Market Misperceptions
By , Bloomberg, 12/07/2007
MarketMinder's View: “Higher market rates pushed up the cost of lending everywhere, making it costlier for companies and consumers to fund new spending or investment.” Not true. Most borrowing costs are even lower today than at the beginning of the year.
Market Misperceptions
By , MSNC.com, 12/07/2007
MarketMinder's View: Remember when $90 oil caused panic and calls for a recession? Heck—that happened when oil hit $40/barrel. In either case, the price of oil told us little about the future direction of the economy and was (and still is) a reflection of economic strength.
Sensible Stories
By , the Wall Street Journal, 12/07/2007
MarketMinder's View: “When we restrict trade in these goods and services, we stop valuable skills and experience flowing from one part of the global economy to another.” If this is indeed true (which we believe it is), why restrict trade in ANY goods and services?
Sensible Stories
By , High Country News, 12/07/2007
MarketMinder's View: Folks throughout the country continue to battle with government for property rights. Fight on!
Sensible Stories
By , The New York Times, 12/07/2007
MarketMinder's View: Emerging markets hold great opportunities for investors, but recall that high returns also means high risk. Be wary. Political corruption is just one prevalent issue.
Sensible Stories
By , The Wall Street Journal, 12/07/2007
MarketMinder's View: A must read—very thoughtful and realistic view on the state of the economy.
Market Misperceptions
By , Businessweek, 12/07/2007
MarketMinder's View: Um, yes. Instead, we’re asking: “How much damage will this government intervention do to our market-based economy?”
Market Misperceptions
By , The Wall Street Journal, 12/06/2007
MarketMinder's View: This is no revelation. For decades analysts have predicted big Pharma’s demise.
Market Misperceptions
By , The Wall Street Journal, 12/06/2007
MarketMinder's View: If we give it long enough, eventually they’ll blame the credit crunch for lead in children’s toys.
Sensible Stories
By , Bloomberg, 12/06/2007
MarketMinder's View: For all the recession talk, the data suggests continued global economic strength.
Market Misperceptions
By , AFX News Limited via Forbes, 12/06/2007
MarketMinder's View: “What we are witnessing is essentially the breakdown of our modern day banking system, a complex of levered lending so hard to understand that Fed Chairman Ben Bernanke required a face-to-face refresher course from hedge fund managers in mid-August.” With all due respect to Mr. Gross, it’s difficult to take such doomsday talk seriously in light of recent economic strength.
Sensible Stories
By , the Wall Street Journal, 12/06/2007
MarketMinder's View: Negotiations to cut trade barriers are of benefit to everyone—this is a step in the right direction.
Market Misperceptions
By , The Telegraph, 12/06/2007
MarketMinder's View: The last thing markets need is more bureaucratic oversight.
Sensible Stories
By , MSNBC.com, 12/06/2007
MarketMinder's View: Given today’s global investing landscape, it’s worth keeping tabs on other major central banks in addition to the Fed.
Sensible Stories
By , The New York Times, 12/06/2007
MarketMinder's View: “The economy might prove more resilient than a lot of the doomsayers have been saying.” We agree!
Market Misperceptions
By , The Wall Street Journal, 12/06/2007
MarketMinder's View: More and more, folks are simply assuming we’re headed for recession, even as evidence to the contrary piles up.
Sensible Stories
By , The Wall Street Journal, 12/06/2007
MarketMinder's View: The beneficiaries of the so-called super fund aren’t much interested because they didn’t need help in the first place.
Sensible Stories
By , Forbes, 12/06/2007
MarketMinder's View: Residential real estate might be on a decline, but commercial real estate (accounting for nearly half of total real estate) is holding up quite well.
Sensible Stories
By , The Wall Street Journal, 12/06/2007
MarketMinder's View: Two cogent pieces suggesting the plan to freeze interest rates is dangerously coercive and government should have stayed out of the whole thing. We agree.
Sensible Stories
By , Bloomberg, 12/06/2007
MarketMinder's View: Signs of irrationality and mania in China’s stock market: “In the current volatile market, investors prefer new share sales as they are seen as less risky” and “Large companies named after ‘China’ are particularly favored.”
Market Misperceptions
By , The New York Times, 12/06/2007
MarketMinder's View: A true sign of the times, illustrating how today’s corporate titans are viewed largely as villains.
Market Misperceptions
By , Bloomberg.com, 12/06/2007
MarketMinder's View: No, uncertainty is another word for risk—an integral part of any investment. Basing your outlook on murky Fed-speak is more akin to gambling than sound investing.
Sensible Stories
By , The Economist, 12/05/2007
MarketMinder's View: High demand for raw materials and industrial equipment is a sign the global economy continues to grow.
Sensible Stories
By , Bloomberg, 12/05/2007
MarketMinder's View: “Inflation is a diminished threat.” Well said.
Market Misperceptions
By , The Telegraph, 12/05/2007
MarketMinder's View: Unless we find a new use for gold, this is of little significance in the long-term.
Sensible Stories
By , Financial Times, 12/05/2007
MarketMinder's View: We can’t blame these EU countries for not wanting more bureaucratic oversight.
Sensible Stories
By , Bloomberg, 12/05/2007
MarketMinder's View: Despite the article’s dour tone, this news contradicts the entire notion of a credit crunch—mortgage lenders are still lending, and borrowers are still borrowing as rates remain low.
Market Misperceptions
By , The Telegraph, 12/05/2007
MarketMinder's View: Hmmm, let us think…NO!
Sensible Stories
By , Kiplinger, 12/05/2007
MarketMinder's View: Wow, that’s great! Now all we need is a bear market. Too bad we won’t have one for a while.
Market Misperceptions
By , The Wall Street Journal *, 12/05/2007
MarketMinder's View: Great plan! Now all we need is a recession. Too bad there isn’t one in sight.
Sensible Stories
By , MarketWatch, 12/05/2007
MarketMinder's View: Playing the blame game is the politico’s modus operandi. Making big banks the scapegoat won’t help stocks.
Market Misperceptions
By , Forbes, 12/05/2007
MarketMinder's View: Just a week ago, pundits were crying about how oil prices would stay high forever. Now they prices are headed for a major fall. Go figure.
Market Misperceptions
By , The Independent, 12/05/2007
MarketMinder's View: You have to love to live in a world where the “perfect storm” equates to 2% economic growth—oh the misery!
Sensible Stories
By , TCS Daily, 12/05/2007
MarketMinder's View: “It's critical to remember that profit helps drive innovation.” Profit motive is a powerful driver in making our world better and more efficient.
Sensible Stories
By , The New York Times, 12/05/2007
MarketMinder's View: It’s about time!
Sensible Stories
By , The Australian, 12/05/2007
MarketMinder's View: A terrific critique of the US government-backed subprime bailout plan.
Market Misperceptions
By , Kiplinger, 12/05/2007
MarketMinder's View: Wow, that’s great! Now all we need is a bear market. Too bad we won’t have one for a while.
Market Misperceptions
By , MSNBC, 12/04/2007
MarketMinder's View: An alternate headline could be: “Consumer Spending Continues Growing, Inflation Remains Low.”
Sensible Stories
By , Financial Times, 12/04/2007
MarketMinder's View: Putting currency concerns into perspective.
Market Misperceptions
By , Reuters.com, 12/04/2007
MarketMinder's View: Maybe you can use the violins to play sad songs as you miss out on returns offered from historically better-performing (and more appropriate) asset classes.
Market Misperceptions
By , International Business Times, 12/04/2007
MarketMinder's View: Um . . . when isn’t the market choppy?
Sensible Stories
By , The Wall Street Journal, 12/04/2007
MarketMinder's View: A reduction in corporate taxation would likely benefit the economy and reduce trade barriers.
Sensible Stories
By , The Wall Street Journal, 12/04/2007
MarketMinder's View: "Corporate taxation reduces the return on capital and thus discourages investment." Well said. Let’s get more competitive globally and cut America’s corporate tax rate.
Market Misperceptions
By , The Wall Street Journal, 12/04/2007
MarketMinder's View: Wait . . . we should hope for economic weakness because it could help strengthen the dollar? Downright silly. A strong dollar shouldn’t be a goal unto itself. And the dollar’s relative strength doesn’t dictate market direction.
Sensible Stories
By , CNNMoney.com, 12/04/2007
MarketMinder's View: “Free trade” shouldn’t just be applied to goods and services. By limiting the import of human capital, we’re only hurting ourselves.
Sensible Stories
By , Kiplinger, 12/04/2007
MarketMinder's View: What’s up is that rising oil prices haven’t crimped the economy like many feared.
Market Misperceptions
By , BBC News, 12/04/2007
MarketMinder's View: No.
Sensible Stories
By , The Boston Globe, 12/04/2007
MarketMinder's View: Looking is fine. But please, don’t meddle. Telling credit card companies they can’t be compensated for their risk doesn’t give them much incentive to lend.
Sensible Stories
By , Bloomberg, 12/03/2007
MarketMinder's View: This would be a “Story to Ignore” except for the following: “In the last expansion, profit margins began contracting in late 1997; there was no recession until March 2001.” Shrinking year-over-year earnings growth doesn’t necessarily portend bad times. Read “Earnings Dilemma,” 11/28/2007.
Market Misperceptions
By , Bloomberg, 12/03/2007
MarketMinder's View: Will the dollar rally in ’08? Better question—does it matter for stocks? Weak or strong, the dollar’s relative strength doesn’t dictate market direction.
Sensible Stories
By , Times Online, 12/03/2007
MarketMinder's View: Investment funding is still available—traditional lenders aren’t the only game in town anymore.
Sensible Stories
By , newsvine.com, 12/03/2007
MarketMinder's View: The folly of government intervention in market pricing illustrated. Congress wants to charge imports a fee to promote domestic dairy products—just plain silly. And since when is Congress in the advertising business?
Sensible Stories
By , Forbes, 12/03/2007
MarketMinder's View: A major win for fans of freedom and capitalism globally.
Sensible Stories
By , The New York Times, 12/03/2007
MarketMinder's View: A reminder: The typical credit crisis doomsday scenario is “a conclusion that is an estimation based upon a guess.” For more rational analysis, read this.
Sensible Stories
By , The Wall Street Journal, 12/03/2007
MarketMinder's View: This is good news! A big chunk of subprime mortgagees actually qualified for higher-rated loans—which means they can more easily refinance and aren’t likely to default—making dour “subprime implosion” predictions still more overblown.
Market Misperceptions
By , MoneyWeek, 12/03/2007
MarketMinder's View: Setting the stage for stronger-than-expected global growth and earnings to continue surprising to the upside.
Market Misperceptions
By , Herald Sun, 12/03/2007
MarketMinder's View: Trade deficits are not indicative of weak economic performance—just look at the US and the UK!
Sensible Stories
By , The Wall Street Journal, 12/03/2007
MarketMinder's View: An international government initiative faces market flaws?! What a shock!
Market Misperceptions
By , International Business Times, 12/03/2007
MarketMinder's View: Government intervention generally makes everything squirrelly. The best solution would be market-based.
Market Misperceptions
By , ABC News, 12/03/2007
MarketMinder's View: The metaphor that you’re going to receive some sort of bill for national debt is ridiculous. National debt is nowhere near worrisome levels. Leverage helps the economy grow—we could use more of it!
Market Misperceptions
By , The Telegraph, 12/03/2007
MarketMinder's View: Using short-term figures to predict long-term shifts isn’t the best way to make a valid point.
Market Misperceptions
By , Bloomberg, 11/30/2007
MarketMinder's View: We’re not sure how they can make this projection since the index in question begins in 1995. But never mind. Even if it’s true, stocks were up huge during World War II, and for nearly the entirety of the following decade!
Sensible Stories
By , Pittsburgh Tribune-Review, 11/30/2007
MarketMinder's View: Required reading for those fearing foreigners dumping the dollar. Foreigners invest with their best interests at heart—just like you do.
Market Misperceptions
By , newsvine.com, 11/30/2007
MarketMinder's View: This headline was either a typo or intentionally misleading. Consumer spending wasn’t down in October—it was up! It was just slower growth than the previous few months.
Sensible Stories
By , New York Times, 11/30/2007
MarketMinder's View: Good news for those who believe in open markets.
Sensible Stories
By , Forbes, 11/30/2007
MarketMinder's View: Hip hop stars don’t make the best market indicators. For more, read “So Goes Jay-Z,” 11/14/2007.
Sensible Stories
By , Reuters, 11/30/2007
MarketMinder's View: Despite all the media gloom and doom, reality is much different.
Market Misperceptions
By , Telegraph, 11/30/2007
MarketMinder's View: Speculation on the demise of the EU is just that – speculation!
Market Misperceptions
By , International Business Times, 11/30/2007
MarketMinder's View: Bad idea. Government price-setting most always leads to unintended negative consequences.
Market Misperceptions
By , 11/30/2007
MarketMinder's View: Whether or not the FOMC cuts rates, the fears cited in this article are well known and already priced in. Investor worries might make markets wiggle in the near term, but that’s purely psychological.
Sensible Stories
By , Wall Street Journal, 11/30/2007
MarketMinder's View: The sooner any such agreement is signed the better. Removing trade barriers are always of net benefit.
Market Misperceptions
By , The Motley Fool, 11/29/2007
MarketMinder's View: Yet another in the cavalcade of flat out dour stories we’ve seen today, despite plenty of good news.
Market Misperceptions
By , The Wall Street Journal *, 11/29/2007
MarketMinder's View: One of many “don’t believe the good news” stories we’ve seen today.
Market Misperceptions
By , Money Week, 11/29/2007
MarketMinder's View: Wrong! Don’t be fooled by this typical bull market correction instead!
Sensible Stories
By , The Wall Street Journal *, 11/29/2007
MarketMinder's View: We agree. Allowing free markets to work their mojo ultimately creates better stability than government intervention can.
Sensible Stories
By , US News, 11/29/2007
MarketMinder's View: The Grinch and the bears can fret all they like, but folks are still doing their shopping.
Sensible Stories
By , The New York Times, 11/29/2007
MarketMinder's View: More good news on the free trade front.
Market Misperceptions
By , Bloomberg, 11/29/2007
MarketMinder's View: Another inane call for the death of US consumers. Meanwhile, unemployment remains low, personal income is on the rise, and the economy surges forward.
Sensible Stories
By , Wall Street Journal *, 11/29/2007
MarketMinder's View: Any protectionist activity would be restrictive of global economic growth.
Sensible Stories
By , MarketWatch, 11/29/2007
MarketMinder's View: Five signs investors are irrationally convincing themselves things are far worse than they actually are. Are you falling prey?
Market Misperceptions
By , Barron’s, 11/29/2007
MarketMinder's View: Bad news makes stocks go up! Well, it’s certainly a unique take, we’ll give it that much.
Market Misperceptions
By , Wall Street Journal *, 11/29/2007
MarketMinder's View: “It’s a sad day for American financial markets when you’ve got to turn to Abu Dhabi to get bailed out.” – One firm in need of capital investment does not constitute the “American financial markets.”
Market Misperceptions
By , TheStreet.com, 11/29/2007
MarketMinder's View: If by “storm” he means “bull market,” then we agree.
Sensible Stories
By , The Associated Press via The Washington Post, 11/29/2007
MarketMinder's View: “The economy barreled ahead in the summer, growing at a 4.9 percent pace.”
Market Misperceptions
By , The Wall Street Journal *, 11/29/2007
MarketMinder's View: Increased foreign investment isn’t something to be feared in a globalizing economy—it’s something to applaud.
Sensible Stories
By , Financial Times, 11/29/2007
MarketMinder's View: Heavy penalties for firms engaging in anti-competitive activities is encouraging.
Market Misperceptions
By , Bloomberg, 11/28/2007
MarketMinder's View: Upon reading this carefully, despite all the anticipation of a recession, we discern little or no actual data pointing to one.
Sensible Stories
By , Times Online, 11/28/2007
MarketMinder's View: “Despite all the bad things that are supposed to be happening, the economy continues to grow.” – Exactly.
Market Misperceptions
By , Financial Times, 11/28/2007
MarketMinder's View: Comparisons between any downturn today and the Depression of the 1930’s seem more than a little premature.
Market Misperceptions
By , The Wall Street Journal, 11/28/2007
MarketMinder's View: Heaven forbid analysts should forecast something upbeat.
Market Misperceptions
By , Fortune via CNNMoney.com, 11/28/2007
MarketMinder's View: Amazingly, we’d look at the exact same data and call it a recipe for a bull market. Stocks are historically cheap today—now’s a great time to buy.
Market Misperceptions
By , Barron’s, 11/28/2007
MarketMinder's View: Market volatility is perfectly normal. Nothing is ever certain with investments; stomaching the wild ride is part of the gig.
Dueling Headlines
By , MSNBC, 11/28/2007
MarketMinder's View: It’s amusing to see the reasons folks come up with to explain daily market moves.
Sensible Stories
By , The New York Times, 11/28/2007
MarketMinder's View: Successful investing isn’t about being right all the time. Mistakes happen. How we deal with our mistakes is a large factor determining future portfolio success.
Market Misperceptions
By , The New York Times, 11/28/2007
MarketMinder's View: Instead of viewing this as reason for worry, we see plenty of capital out there ready to be utilized and investors throughout the world who see big opportunity.
Sensible Stories
By , ABC News, 11/28/2007
MarketMinder's View: Coupled with a big Black Friday, US consumers appear far from tapped out. And anyway, we wouldn’t put much stock in holiday shopping stats as an economic indicator to begin with.
Sensible Stories
By , Wall Street Journal, 11/28/2007
MarketMinder's View: In the same way protectionism restricts global economic growth, so too does corrupt activity. Good news then that action is being taken.
Market Misperceptions
By , Fortune, 11/28/2007
MarketMinder's View: It’s true that Financials firms could better report their lending and borrowing activities. But with all due respect to Mr. Gross—conduits, SIVs, and similar securities markets are nothing new, and are boon to capital markets.
Sensible Stories
By , Forbes, 11/28/2007
MarketMinder's View: Why will Wall Street bonuses be so big this year? Despite media claptrap, lots of firms are having great years and reporting good earnings.
Sensible Stories
By , Bloomberg, 11/28/2007
MarketMinder's View: “France's real problem isn't the unions. It is the bloated state, a cosseted middle class, punitive taxes, and excessive regulation.” We mostly agree, but generally like what we’ve seen from Sarkozy so far.
Sensible Stories
By , Newsvine via The Associated Press, 11/28/2007
MarketMinder's View: Opportunities abound throughout the economy tied to advances in technology, globalization, and capitalism.
Sensible Stories
By , Financial Times, 11/28/2007
MarketMinder's View: Increased M&A activity is a sign that equities are cheap. The fact it’s happening in emerging markets as well as those more developed says much for the globalization of world markets.
Sensible Stories
By , The Wall Street Journal, 11/28/2007
MarketMinder's View: It seems folks are beginning to realize ethanol is not the miracle energy substitute it’s cracked up to be.
Sensible Stories
By , ABC News, 11/28/2007
MarketMinder's View: We agree! Generally, a longer time horizon means bigger compounding interest benefits in higher returning asset classes like stocks.
Market Misperceptions
By , Kiplinger, 11/28/2007
MarketMinder's View: Whatever voters are thinking doesn’t matter for stocks right now—it’s still far too early for markets to price in a result.
Market Misperceptions
By , The New York Times, 11/27/2007
MarketMinder's View: This article is a litmus test for investor rationality. If you find the shrill, unfounded assertions laugh-out-loud funny, you’re going to make it through this year just fine.
Sensible Stories
By , The Wall Street Journal * (subscription required), 11/27/2007
MarketMinder's View: What have Congress members got against low income individuals, and why are they trying to prevent them from owning homes?
Market Misperceptions
By , 11/27/2007
MarketMinder's View: Finger pointing—typical in any perceived financial crisis—continues. Instead of accounting firms, this time around it’s private equity firms shouldering the blame.
Sensible Stories
By , The Wall Street Journal *(subscription required), 11/27/2007
MarketMinder's View: An excellent demonstration of the perils of buying into media hype.
Sensible Stories
By , MarketWatch, 11/27/2007
MarketMinder's View: Ignore hype about banks being doomed. Banks are finding capital they need from willing investors. It’s always better to allow a free market solution than a misguided government intervention.
Market Misperceptions
By , Financial Times, 11/27/2007
MarketMinder's View: Inflation fears are downright silly when the 10-year US Treasury rate is below 4%.
Sensible Stories
By , MSNMoney.com, 11/27/2007
MarketMinder's View: We maintain the higher prices for five gold rings and eight maids a-milking are being driven by increased demand from a growing global economy.
Sensible Stories
By , The New York Times, 11/27/2007
MarketMinder's View: “Despite the ups and downs of the business cycle, the United States still possesses the most potent economy on earth.” Amen!
Market Misperceptions
By , International Business Times, 11/27/2007
MarketMinder's View: Funny, no one mentions the 4.5% drop in home prices is from all-time record highs . . .
Market Misperceptions
By , Bloomberg, 11/27/2007
MarketMinder's View: “U.S. retailers . . . may see profits erode even as customers flock to stores.” May see? As in, may not? Ignore headlines hyping dour projections on narrowly-focused data not even available yet.
Market Misperceptions
By , CNNMoney.com, 11/27/2007
MarketMinder's View: Think carefully . . . what’s happened to stocks since the last time consumer confidence hit these lows? Consumer confidence numbers are backwards looking. They tell you nothing about market direction.
Market Misperceptions
By , CNNMoney.com, 11/27/2007
MarketMinder's View: Let’s see if we can get this straight. Weak holiday spending=bad. Strong holiday spending=also bad. Santa can’t win. Ignore.
Market Misperceptions
By , Portfolio.com, 11/27/2007
MarketMinder's View: Why should hedge fund managers (or anyone who works for a living, for that matter) engage in a public opinion campaign? If you don’t like hedge funds, don’t buy into one.
Sensible Stories
By , Barron’s, 11/26/2007
MarketMinder's View: Philanthropy seeking measurable results and accountability often has the biggest impact.
Dueling Headlines
By , The Wall Street Journal, 11/26/2007
MarketMinder's View: Which is it? Our guess is many are mistaking perfectly normal market volatility for a recession indicator. Global economic fundamentals remain strong.
Sensible Stories
By , Barron’s, 11/26/2007
MarketMinder's View: LBO opportunities are still plentiful. We expect LBO, share buyback and cash merger activity to strengthen in the months ahead.
Market Misperceptions
By , Bloomberg, 11/26/2007
MarketMinder's View: More dollar doldrums hysteria. Evidence that a dollar carry trade is even happening is at this point extremely scant.
Market Misperceptions
By , Fortune via CNNMoney.com, 11/26/2007
MarketMinder's View: Conduits and SIVs are useful securities, not something to be afraid of. For more, see our past commentary, “Credit Crunch II: A Box Office Flop!” (11/06/07) for more.
Market Misperceptions
By , USA Today, 11/26/2007
MarketMinder's View: Thinking about the US economy as a line of dominoes waiting to be toppled is a misleading metaphor. The US economy is versatile, dynamic, and not dependent on any one thing for overall prosperity.
Sensible Stories
By , The Los Angeles Times, 11/26/2007
MarketMinder's View: Australia’s leadership change is worth keeping an eye on—the new administration could influence global trade and raw materials supply.
Sensible Stories
By , Barron’s, 11/26/2007
MarketMinder's View: Philanthropy seeking measurable results and accountability often has the biggest impact.
Market Misperceptions
By , USA Today, 11/26/2007
MarketMinder's View: Thinking about the US economy as a line of dominoes waiting to be toppled is a misleading metaphor. The US economy is versatile, dynamic, and not dependent on any one thing for overall prosperity.
Market Misperceptions
By , Bloomberg, 11/26/2007
MarketMinder's View: More dollar doldrums hysteria. Evidence that a dollar carry trade is even happening is at this point extremely scant.
Sensible Stories
By , The Economist, 11/26/2007
MarketMinder's View: Robust global demand for raw materials is a symptom of strong economic growth.
Sensible Stories
By , CNNMoney.com, 11/26/2007
MarketMinder's View: Record or no record, this ain’t the stuff of imploding consumer spending.
Market Misperceptions
By , Businessweek, 11/26/2007
MarketMinder's View: With folks seriously proposing a return to the gold standard, dollar worries have officially jumped the shark.
Sensible Stories
By , Barron’s, 11/26/2007
MarketMinder's View: LBO opportunities are still plentiful. We expect LBO, share buyback and cash merger activity to strengthen in the months ahead.
Market Misperceptions
By , Associated Press Writer, 11/26/2007
MarketMinder's View: We’ll go out on a limb and say inflation indicators based on Christmas carols probably aren’t all that accurate.
Market Misperceptions
By , Associated Press Writer, 11/26/2007
MarketMinder's View: We’ll go out on a limb and say inflation indicators based on Christmas carols probably aren’t all that accurate.
Market Misperceptions
By , Reuters, 11/23/2007
MarketMinder's View: By “risky” we suppose they mean anything other than federal government bonds. But we certainly agree that Investors won’t put up with measly 4% yields for long. Stocks are very attractively priced today.
Market Misperceptions
By , 11/23/2007
MarketMinder's View: See our past commentary, “Credit Crunch II: A Box Office Flop!” (11/06/07) for more.
Market Misperceptions
By , The Wall Street Journal, 11/23/2007
MarketMinder's View: Technical analysis is to Wall Street what tea leaves are to psychics—both are bogus.
Sensible Stories
By , NPR, 11/23/2007
MarketMinder's View: Average gas prices are 86 cents higher this Thanksgiving from a year ago, but that hasn’t kept more than 31 million Americans from piling into their cars and driving to holiday celebrations in near record numbers.
Sensible Stories
By , Times Online, 11/23/2007
MarketMinder's View: “The dollar is falling for good, sound reasons that do not require a millenarian view of the global economy.” - Exactly, and none of those reasons point to a weak economy.
Sensible Stories
By , The Wall Street Journal, 11/23/2007
MarketMinder's View: There are big possibilities for private equity and M&A in Japan, but the accompanying challenges are sizable too.
Market Misperceptions
By , New York Times, 11/23/2007
MarketMinder's View: On the face of it this number seems huge, taken in context of the overall market size, it’s small.
Sensible Stories
By , Bloomberg, 11/23/2007
MarketMinder's View: An excellent commentary on our increasingly global economy.
Sensible Stories
By , BBC News, 11/23/2007
MarketMinder's View: Sustained growth in one of Europe’s largest economies.
Dueling Headlines
By , CNNMoney.com, 11/23/2007
MarketMinder's View: Either way, it’s clear US consumers aren’t disappearing anytime soon.
Market Misperceptions
By , The Telegraph, 11/22/2007
MarketMinder's View: Properly scaled, recent events constitute little more than hang-over, as opposed to a major coronary event!
Sensible Stories
By , Financial Times, 11/22/2007
MarketMinder's View: Further development of the EU single market should help cut costs and red-tape.
Market Misperceptions
By , The Independent, 11/22/2007
MarketMinder's View: A strong world economy and cheap equities should not provide the backdrop to gamble on leaving the markets.
Sensible Stories
By , Financial Times, 11/22/2007
MarketMinder's View: Any agreements that cut through trade barriers are of interest and net economic benefit.
Market Misperceptions
By , Times Online, 11/22/2007
MarketMinder's View: A one-day drop in prices is probably not a reliable indicator of an economic slowdown.
Market Misperceptions
By , Kiplinger, 11/21/2007
MarketMinder's View: Dawn for the mortgage market might be delayed, but expect sunshine for the broader economy and stock market in the near future.
Sensible Stories
By , The Motley Fool, 11/21/2007
MarketMinder's View: A rare critique of the media’s frequent misinterpretation of housing data.
Market Misperceptions
By , Bits of News, 11/21/2007
MarketMinder's View: We agree government data can be wonky, but these assertions are just as suspect, if not more so.
Market Misperceptions
By , Kiplinger, 11/21/2007
MarketMinder's View: Expect a multitude of gloomy headlines about holiday shopping and US consumers in the coming weeks…and ignore them. US consumers are in good shape and retail sales are set to expand from last year.
Sensible Stories
By , The Wall Street Journal *, 11/21/2007
MarketMinder's View: “Ballerinas can retire as early as 40, thanks to a legacy of perks granted by Louis XIV to members of his Academy of Dance in 1698.” If that’s not a system in need of reform, we’re not sure what is.
Sensible Stories
By , Reuters, 11/21/2007
MarketMinder's View: High demand and crimped supply growth make for higher oil prices.
Market Misperceptions
By , Wall Street Journal, 11/21/2007
MarketMinder's View: High oil prices are not something to fear, they’ve been rising for 3 years during which we’ve seen sustained economic growth.
Sensible Stories
By , The Wall Street Journal *(subscription required), 11/21/2007
MarketMinder's View: The Wall Street Journal’s annual editorial on the Pilgrims’ journey.
Sensible Stories
By , 11/21/2007
MarketMinder's View: Diversifying consumption across energy sources should reduce the economic impact of high oil prices.
Sensible Stories
By , Reuters, 11/21/2007
MarketMinder's View: The WTO’s ruling is a blow against protectionism, and we view it as a good thing for global trade.
Sensible Stories
By , The Wall Street Journal * (subscription required), 11/21/2007
MarketMinder's View: The Wall Street Journal’s annual Thanksgiving holiday editorial.
Market Misperceptions
By , The Telegraph, 11/21/2007
MarketMinder's View: A rush that has driven the yield on a 10-year US Treasury bond below 4 per cent, making equity investment even more attractive.
Sensible Stories
By , Kudlow’s Money Politics, 11/21/2007
MarketMinder's View: A contrary opinion on corporate earnings—things aren’t as bad as they may appear.
Sensible Stories
By , Herald Sun, 11/21/2007
MarketMinder's View: Strong and sustained economic growth – good news.
Market Misperceptions
By , The Wall Street Journal, 11/20/2007
MarketMinder's View: True, M&A activity in 2008 is likely to be strong. But the idea the US will be “LBOed” is about as valid as panic that Japan was on its way to purchasing the US in the 80s.
Sensible Stories
By , The Wall Street Journal, 11/20/2007
MarketMinder's View: CEOs are concerned US regulatory and political policy toward China could ultimately hurt both economies—and investors should be mindful of the issue too.
Market Misperceptions
By , Investor’s Business Daily, 11/20/2007
MarketMinder's View: Chinese inflation, higher oil prices, and a weak dollar are all cited as inflationary pressures here in the US. Fortunately, someone forgot to tell inflation, which has been consistently benign.
Market Misperceptions
By , The Telegraph, 11/20/2007
MarketMinder's View: A two-month high hardly constitutes a ‘soar’ in rates. Short-term movements shouldn’t distract investors from the underlying fundamentals.
Sensible Stories
By , The New York Times, 11/20/2007
MarketMinder's View: It’s vital for investors to stop thinking of the US as an island and understand just how global today’s economy is.
Sensible Stories
By , The Wall Street Journal, 11/20/2007
MarketMinder's View: The U.N.’s so-called “Law of the Sea Treaty” would surrender resources to a global collective—a potentially hazardous outcome for free market economies.
Sensible Stories
By , The Wall Street Journal, 11/20/2007
MarketMinder's View: The fact that Germany’s Angela Merkel is getting little done is probably a good thing for stock markets. A do-nothing government allows economies to function freely without adjusting for constant regulatory changes.
Market Misperceptions
By , The Motley Fool, 11/20/2007
MarketMinder's View: We don’t think Sinatra would be pleased. No doubt the housing market is soft, but that doesn’t mean the aggregate economy is de facto soft too.
Sensible Stories
By , The Telegraph, 11/20/2007
MarketMinder's View: An example of the complications that can arise when political bodies interfere in free markets.
Market Misperceptions
By , TheStreet.com, 11/20/2007
MarketMinder's View: We say, party like it’s 2008! The global economy will be fine.
Market Misperceptions
By , International Business Times, 11/20/2007
MarketMinder's View: So, if 35% are planning to spend less this year, doesn’t that mean 65% are spending as much or more for the holidays? That seems fine to us.
Sensible Stories
By , Times Online, 11/20/2007
MarketMinder's View: “The credit crunch seems to be having as yet only limited impact on spending” – Not surprising, with access to money still relatively easy and rising incomes on the back of a strong economy.
Sensible Stories
By , Times Online, 11/20/2007
MarketMinder's View: Growing global markets and a reduction in trade barriers are great news and further indication of an expanding global economy.
Sensible Stories
By , Times Online, 11/19/2007
MarketMinder's View: Whilst the housing market slows, the broader economy is still growing strongly.
Market Misperceptions
By , Times Online, 11/19/2007
MarketMinder's View: A growing economy is good news.
Market Misperceptions
By , Bloomberg.com, 11/19/2007
MarketMinder's View: Why on earth would bonuses be that high? “Bankers’ record fees help explain why 2007 will prove to be the industry's second-most profitable.” Oh, that’s why.
Sensible Stories
By , BBC News, 11/19/2007
MarketMinder's View: Talk of improving access to the markets is always of interest.
Market Misperceptions
By , Forbes, 11/19/2007
MarketMinder's View: One of our favorite fear-inducing headlines to date. Credit markets today aren’t just bad, they’re not just toxic…they’re radioactive!
Sensible Stories
By , The New York Times, 11/19/2007
MarketMinder's View: Two examples of global politics affecting higher energy prices. It’s unlikely this trend will abate anytime soon.
Sensible Stories
By , Financial Times, 11/19/2007
MarketMinder's View: The headline grabbing subprime sector actually represents a tiny part of the overall financial system.
Market Misperceptions
By , The Independent, 11/19/2007
MarketMinder's View: Currency fluctuations can be highly volatile. Predicting a down-and-out dollar for all time is misguided.
Sensible Stories
By , The Wall Street Journal, 11/19/2007
MarketMinder's View: A look into the limits of energy production tied to increasing restrictions on oil fields, increasing costs, and complex geography. These factors help keep oil prices high.
Sensible Stories
By , Reuters via Yahoo! Finance, 11/19/2007
MarketMinder's View: Very well put. And remember, volatility is often a good thing (when stocks surge upward).
Market Misperceptions
By , The Telegraph, 11/19/2007
MarketMinder's View: If the global economies were so vulnerable to the cost of oil, how have they continued to grow alongside these prices?
Sensible Stories
By , US News, 11/19/2007
MarketMinder's View: Some solid myth debunking about high gasoline prices.
Sensible Stories
By , Barron’s, 11/19/2007
MarketMinder's View: Japanese stocks are very attractive today.
Sensible Stories
By , Wall Street Journal, 11/19/2007
MarketMinder's View: A reduction in costly cross-border regulation is of benefit to everyone.
Sensible Stories
By , The Wall Street Journal (*subscription required), 11/19/2007
MarketMinder's View: This is a great comparison. Most realistic estimates of subprime losses are not nearly big enough to materially damage the economy, making subprime fears more hype than reality.
Market Misperceptions
By , The Telegraph, 11/19/2007
MarketMinder's View: Sensational headlines like this are usually a good indicator to remain in the markets.
Sensible Stories
By , Forbes, 11/19/2007
MarketMinder's View: Chinese officials are denying this report. The confusion about what’s really going on underscores valid concerns about capital controls and regulation risks in Chinese markets today.
Market Misperceptions
By , MSNBC.com, 11/19/2007
MarketMinder's View: Another strange calculation almost certainly designed to terrify rather than inform.
Sensible Stories
By , Sofia News Agency, 11/16/2007
MarketMinder's View: It’s no “Down goes Frazier!” but wouldn’t you love to hear Howard Cosell yell, “Down go tax rates! Down go tax rates!”? Ok, maybe that’s just us.
Market Misperceptions
By , The Telegraph, 11/16/2007
MarketMinder's View: Good news for Scrooge, but it’s unlikely that recent events will have a major impact on spending this Christmas.
Market Misperceptions
By , 11/16/2007
MarketMinder's View: Another piece stuffed with nearly improbable worst case scenario scare tactics.
Sensible Stories
By , The Wall Street Journal, 11/16/2007
MarketMinder's View: Energy politics are a nasty game and very unfortunate. Both US and Venezuelan citizens will be long-term losers resulting from political power grabs like these.
Sensible Stories
By , The New York Times, 11/16/2007
MarketMinder's View: A worthwhile read on the path of Japanese economic development.
Market Misperceptions
By , The Economist, 11/16/2007
MarketMinder's View: One of our favorite “America is doomed” articles to date. Evoking Jaws is pure genius. (Check out the article’s accompanying graphic to see what we mean.)
Sensible Stories
By , New York Times, 11/16/2007
MarketMinder's View: Protectionism is a path to poverty – just ask North Korea.
Sensible Stories
By , 11/16/2007
MarketMinder's View: High prices at the pump haven’t deterred consumers from much of anything throughout the current economic expansion.
Sensible Stories
By , US News, 11/16/2007
MarketMinder's View: A profile of market masochists desirous of a recession and their twisted reasoning. We agree with the author: Let’s skip the recession and just keep growing.
Market Misperceptions
By , 11/16/2007
MarketMinder's View: What this headline doesn’t say is gridlock in the Senate makes this bill’s passage a fantasy until at least next year, if ever.
Market Misperceptions
By , Wall Street Journal, 11/16/2007
MarketMinder's View: Pessimistic forecasts are popular, leaving more room for economic growth to exceed expectations – this is bullish.
Sensible Stories
By , 11/16/2007
MarketMinder's View: See our past commentary, “So Goes Jay-Z” for more.
Market Misperceptions
By , The Telegraph, 11/16/2007
MarketMinder's View: “The era of 'peak gold' has arrived”. They said the same thing 28 years ago, when gold was at similar heights. We wouldn’t go smelting the family jewelry just yet.
Market Misperceptions
By , The Wall Street Journal, 11/16/2007
MarketMinder's View: Of course they are! But that doesn’t mean it’s a good reason.
Sensible Stories
By , The Wall Street Journal, 11/16/2007
MarketMinder's View: It’s a step in the direction towards slashing red tape.
Market Misperceptions
By , Money Week, 11/16/2007
MarketMinder's View: We take our hats off to the author’s attempt to sell his new book to readers—presumably the very same consumers set to “collapse.” Oh, sweet Irony!
Sensible Stories
By , The Wall Street Journal, 11/15/2007
MarketMinder's View: There are two sides to every currency story.
Market Misperceptions
By , Financial Times, 11/15/2007
MarketMinder's View: Economists have predicted twelve out of the last two slowdowns!
Market Misperceptions
By , The Telegraph, 11/15/2007
MarketMinder's View: Even central bankers suffer from fear of heights! The article also makes reference to Greenspan’s infamous “Irrational Exuberance” comment at the end of 1996, more than three years before the peak of the market. We expect this prediction to be as prescient as that one.
Sensible Stories
By , Barron’s, 11/15/2007
MarketMinder's View: The Fed’s intention to provide additional transparency on its forecasts is of minimal value.
Market Misperceptions
By , USA Today, 11/15/2007
MarketMinder's View: Classic credit crunch hype. Money Market Funds—by definition—are vastly composed of extremely short-term, highly liquid instruments.
Sensible Stories
By , Investor’s Business Daily, 11/15/2007
MarketMinder's View: Portfolio Diversification 101.
Sensible Stories
By , Financial Times, 11/15/2007
MarketMinder's View: Guess what that lifeline is? Debt!
Sensible Stories
By , Herald Sun, 11/15/2007
MarketMinder's View: Exactly – housing and credit fears are overstated and global equities look very attractive.
Market Misperceptions
By , 11/15/2007
MarketMinder's View: See yesterday’s commentary, “So Goes Jay-Z,” for more.
Sensible Stories
By , Financial Times, 11/15/2007
MarketMinder's View: Expect big infrastructure projects around the world to continue – money is cheap and the global economy continues to expand.
Sensible Stories
By , BBC News, 11/15/2007
MarketMinder's View: It’s good to put recent currency events into historical perspective.
Sensible Stories
By , CNNMoney.com, 11/15/2007
MarketMinder's View: Inflation remains benign.
Sensible Stories
By , The Wall Street Journal, 11/14/2007
MarketMinder's View: “Capitalism is about risk-taking, and risk-taking implies unhappy endings as well as happy endings.” Exactly.
Sensible Stories
By , Investor’s Business Daily, 11/14/2007
MarketMinder's View: What happened to the credit crunch we’re all supposed to be panicking over?
Market Misperceptions
By , Forbes, 11/14/2007
MarketMinder's View: Highly unlikely. Headlines like these reveal just how overblown the financial scare is right now.
Market Misperceptions
By , Herald Sun, 11/14/2007
MarketMinder's View: “Low unemployment is in danger of producing its dangerous economic twin, high wages.” Oh no – more people working and getting paid more! The horror! Aren’t these the types of “problems” that everyone wants?
Market Misperceptions
By , The Wall Street Journal, 11/14/2007
MarketMinder's View: Here’s a novel idea, why not solve the problem by extricating politicians from the energy market altogether!?
Sensible Stories
By , The Associated Press via ABC News, 11/14/2007
MarketMinder's View: We don’t think Fed action is nearly as vital to the market as many, but it’s still important to understand what they’re up to.
Market Misperceptions
By , International Business Times, 11/14/2007
MarketMinder's View: Really? You mean folks don’t actually want to pay more for a lesser value?
Sensible Stories
By , CNNMoney.com, 11/14/2007
MarketMinder's View: Hmmm….this doesn’t seem consistent with a housing market supposedly imploding.
Market Misperceptions
By , Fortune via CNNMoney.com, 11/14/2007
MarketMinder's View: This is not even close to an apt comparison, but it is a great indication of how dour folks are today.
Sensible Stories
By , The New York Times, 11/14/2007
MarketMinder's View: More than ever, it’s a gridlocked federal government accomplishing little—very bullish for stocks.
Market Misperceptions
By , CNNMoney.com, 11/14/2007
MarketMinder's View: This is a really strange headline considering the data show consumer spending growth in line with expectations.
Sensible Stories
By , Kiplinger, 11/14/2007
MarketMinder's View: What a great problem for the economy to have! This ain’t the stuff of recessions.
Market Misperceptions
By , The Associated Press via ABC News, 11/14/2007
MarketMinder's View: These are misleading statistics. It’s worth understanding “foreclosure filings” are not the same as foreclosures. A single property can receive multiple foreclosure filings and never actually be foreclosed on—that happens fairly frequently as a matter of fact.
Market Misperceptions
By , The Telegraph, 11/14/2007
MarketMinder's View: See the above story of interest “Losing Money is a Crime” for how this is a part of capitalism and not something to fear.
Sensible Stories
By , Financial Times, 11/14/2007
MarketMinder's View: We’re always wary of calling anything "the new world,” especially since energy demand has been high over the past few years. But in this booming global economy, energy demand should remain strong.
Sensible Stories
By , The Wall Street Journal, 11/14/2007
MarketMinder's View: Maybe it is voluntary – at least some taxes?
Market Misperceptions
By , BBC News, 11/14/2007
MarketMinder's View: Central planning is a market’s worst nightmare and tends to exacerbate problems.
Market Misperceptions
By , Globe and Mail, 11/13/2007
MarketMinder's View: Headlines like this one are written to grab your attention and scare you, but focusing on one-day moves, whether in currencies or the broad equity markets, is a recipe for disaster.
Sensible Stories
By , Forbes, 11/13/2007
MarketMinder's View: Fear is a beautiful thing for savvy stock investors.
Market Misperceptions
By , MSNBC.com, 11/13/2007
MarketMinder's View: At this rate, it’s just a matter of time before someone blames the credit crunch for global warming, Ebola, and killer bee migration.
Sensible Stories
By , The Wall Street Journal *, 11/13/2007
MarketMinder's View: A contrary—and smart—view of the factors driving today’s healthcare industry.
Market Misperceptions
By , BBC News, 11/13/2007
MarketMinder's View: This “carnage” may seem large in absolute terms but it is only a small percentage of an otherwise strong US economy.
Sensible Stories
By , The Wall Street Journal, 11/13/2007
MarketMinder's View: The global economy just keeps going and going and going...
Sensible Stories
By , National Post, 11/13/2007
MarketMinder's View: Most people only associate private equity with large buyouts (that make headlines) and forget about the small and mid-market takeovers, which remain quite strong despite the dire headlines.
Sensible Stories
By , The Wall Street Journal, 11/13/2007
MarketMinder's View: A tremendous example of capital markets development and evidence of a dynamic US financial infrastructure.
Market Misperceptions
By , MSNBC.com, 11/13/2007
MarketMinder's View: Extrapolating today’s credit worries to the entire economy simply doesn’t add up. Third quarter earnings outside financials were a boondoggle, and GDP surged.
Sensible Stories
By , CNNMoney.com via Yahoo! Finance, 11/13/2007
MarketMinder's View: Disproving the myth that older investors should put more money into bonds.
Sensible Stories
By , The Wall Street Journal, 11/13/2007
MarketMinder's View: “We should worry about the people who use inequality as a political club to promote policies that reduce opportunity.” Well said.
Market Misperceptions
By , Barron’s, 11/13/2007
MarketMinder's View: Ignore technical analysis—it tells you nothing about future performance.
Market Misperceptions
By , Marketwatch, 11/13/2007
MarketMinder's View: More unfounded recession talk. Today’s economic data indicates strength and stability.
Sensible Stories
By , MSNBC.com, 11/13/2007
MarketMinder's View: People are living longer, more active lives and need to plan their investments around a long time horizon. See the recent opinion piece, “New (Time) Horizons” for more on this topic.
Sensible Stories
By , BBC News, 11/13/2007
MarketMinder's View: Everyone.
Sensible Stories
By , Foreign Policy, 11/13/2007
MarketMinder's View: Outstanding! Print it out, memorize it, and sleep with it under your pillow!
Market Misperceptions
By , The Wall Street Journal, 11/13/2007
MarketMinder's View: Instead of the government “watching” the banks, we’d rather see more folks “watching” the government.
Sensible Stories
By , Financial Times, 11/12/2007
MarketMinder's View: “A protectionist response that seeks to restrict investments by these new actors in the global economy, or subject their activities to cumbersome vetting processes, is clearly not the right response.” It certainly is not.
Market Misperceptions
By , Times Online, 11/12/2007
MarketMinder's View: We’ve heard this since oil was $40 per barrel – ignore.
Sensible Stories
By , The Telegraph, 11/12/2007
MarketMinder's View: They’re probably thinking to themselves, what crisis?
Market Misperceptions
By , Financial Times, 11/12/2007
MarketMinder's View: The downfall of the US consumer has been incorrectly forecast too many times to count.
Market Misperceptions
By , NPR.org, 11/12/2007
MarketMinder's View: See our past commentary, “Dour as it Gets” (11/7/07) for more.
Market Misperceptions
By , International Business Times, 11/12/2007
MarketMinder's View: We will not be happy if season 4 of “Lost” is delayed by these strikes. Not happy at all.
Market Misperceptions
By , Barron’s, 11/12/2007
MarketMinder's View: At first we thought he was joking; but this is all too serious.
Sensible Stories
By , Briefing.com, 11/12/2007
MarketMinder's View: A balanced account of today’s market action—though we believe an even more optimistic view is warranted.
Sensible Stories
By , MSNBC.com, 11/12/2007
MarketMinder's View: From the perspective of a globally diversified investor, this makes perfect sense—today’s economy is more a global thing than a country thing. Capitalism doesn’t care about borders.
Market Misperceptions
By , The New York Times, 11/12/2007
MarketMinder's View: More undue pessimism. The US economy has been just fine the last hundred years without Superman’s help anyway.
Sensible Stories
By , The Wall Street Journal, 11/12/2007
MarketMinder's View: Market distortions created by ethanol mandates are finally being recognized in Congress, but apparently not in California. Two smart pieces on the dangers of undue market regulation by the editorial staff of the Wall Street Journal.
Market Misperceptions
By , The Sydney Morning Herald, 11/12/2007
MarketMinder's View: How dare they. The 80s were fun.
Market Misperceptions
By , Bloomberg, 11/12/2007
MarketMinder's View: And while we’re on the topic of 80s nostalgia, we think this headline would be better if it said the economy is on the “Highway to the Danger Zone.” But that’s just us. In truth, we’re not worried. As a percentage of personal income or the US economy, oil costs are not at historic highs.
Sensible Stories
By , Chicago Sun Times, 11/12/2007
MarketMinder's View: Timing the market for short-term moves is too difficult and fraught with peril—stick to a disciplined strategy that captures the big moves (true bull and bear markets), and leave the small moves to the gamblers.
Sensible Stories
By , Bloomberg.com, 11/12/2007
MarketMinder's View: This fact will eventually smack the bears in the face: 2007 is set to be the second best year EVER for Wall Street earnings. And 2008 ain’t looking too shabby either.
Sensible Stories
By , Newsweek, 11/12/2007
MarketMinder's View: “Everyone should remember the witticism that the stock market has predicted nine of the last three recessions.”
Sensible Stories
By , The Wall Street Journal, 11/12/2007
MarketMinder's View: Hold the phones – a government program might be a bit too expensive? This must be the first time in history!
Sensible Stories
By , The Associated Press via Newsvine, 11/09/2007
MarketMinder's View: China has implied it will not sacrifice economic growth in favor of legislation to protect the environment. This will significantly impact competitiveness between developed nations should they enact such laws.
Market Misperceptions
By , The Australian, 11/09/2007
MarketMinder's View: This is almost exactly wrong. See yesterday’s commentary, “The Secret Testimony of Big Ben,” for more.
Sensible Stories
By , The Wall Street Journal, 11/09/2007
MarketMinder's View: Great reading – lower taxes are a beautiful thing.
Sensible Stories
By , BBC News, 11/09/2007
MarketMinder's View: Nothing like high oil prices to increase exploration.
Market Misperceptions
By , Financial Times, 11/09/2007
MarketMinder's View: Fortunately, total wealth for a society is not some fixed amount. Simply because people move between income quartiles doesn’t mean their absolute standard of living hasn’t improved.
Market Misperceptions
By , Marketwatch, 11/09/2007
MarketMinder's View: The last time sentiment was this low (near the start of the Iraq war in early 2003) the current bull market began.
Sensible Stories
By , Kudlow’s Money Politic$, 11/09/2007
MarketMinder's View: Agreed.
Market Misperceptions
By , Investor’s Business Daily, 11/09/2007
MarketMinder's View: Capping the upside on the stocks you own? That’s a passable investment strategy? Who comes up with this stuff?
Sensible Stories
By , Herald Sun, 11/09/2007
MarketMinder's View: Which one are you? Either way, our brains haven’t evolved to a level where interpreting capital markets information is easy.
Sensible Stories
By , The Wall Street Journal, 11/09/2007
MarketMinder's View: Wonderful to see the EU catching on to the Laffer Curve.
Market Misperceptions
By , MSNBC, 11/09/2007
MarketMinder's View: Ho-hum. We’ve seen this same old worry for years now—all during a bull market.
Sensible Stories
By , Kiplinger’s, 11/09/2007
MarketMinder's View: This just makes too much sense.
Sensible Stories
By , US News, 11/09/2007
MarketMinder's View: This is spot on.
Sensible Stories
By , Forbes, 11/09/2007
MarketMinder's View: Yes, but we’d say undue pessimism pervades the entire stock market, not just European banks today.
Market Misperceptions
By , Bloomberg, 11/09/2007
MarketMinder's View: While we advise ignoring the dollar altogether when considering stock investments, this is a well-reasoned and level-headed perspective worth reading.
Market Misperceptions
By , MSN Moneyblog, 11/09/2007
MarketMinder's View: Great! (But why is this being published now? The US economy is chugging along just fine.)
Sensible Stories
By , CNN Money, 11/09/2007
MarketMinder's View: If it sounds too good to be true, it probably is.
Market Misperceptions
By , The Wall Street Journal, 11/09/2007
MarketMinder's View: This is a poor perspective—in truth, “risky” debt is still around normal historical averages.
Sensible Stories
By , MSNBC, 11/09/2007
MarketMinder's View: The US trade deficit makes no difference for stocks, but it’s worth highlighting the benefits of a weak dollar.
Sensible Stories
By , The Motley Fool, 11/09/2007
MarketMinder's View: This piece pokes fun at today’s Chicken Little sentiment. Now’s a great time to own stocks.
Market Misperceptions
By , BBC News, 11/08/2007
MarketMinder's View: And 65% of that is made up of taxes! Think of your local government official next time you’re at the pump.
Sensible Stories
By , The New York Times, 11/08/2007
MarketMinder's View: Precisely! The data show a growing, healthy economy despite today’s renewed credit fears.
Sensible Stories
By , National Post, 11/08/2007
MarketMinder's View: Here is an article that doesn’t fit with the seemingly endless stream of negativity surrounding the US economy.
Sensible Stories
By , Kiplinger, 11/08/2007
MarketMinder's View: A reminder that Emerging Markets—while they’re a great place to be invested today—are extremely volatile and investors must should always properly diversify.
Sensible Stories
By , The New York Times, 11/08/2007
MarketMinder's View: We expect merger-mania to return to big levels in the coming months. Clearly, corporations are still willing to make big deals and access plentiful liquidity.
Sensible Stories
By , Herald Sun, 11/08/2007
MarketMinder's View: Why interest rate increases are a result of a booming economy down under.
Market Misperceptions
By , 11/08/2007
MarketMinder's View: Considering personal income and net worth are up nicely this year, this perspective is downright perverse.
Market Misperceptions
By , Reuters, 11/08/2007
MarketMinder's View: We are completely mystified by those who believe a US recession is completely inevitable in the near future.
Market Misperceptions
By , Fortune via CNNMoney.com, 11/08/2007
MarketMinder's View: See our past commentary, “Credit Crunch II: A Box Office Flop!” for more.
Market Misperceptions
By , The Wall Street Journal, 11/08/2007
MarketMinder's View: Actually, this is right on the money: “Anxiety” says it all. (Note: Anxiety doesn’t necessarily mean reality).
Market Misperceptions
By , The Telegraph, 11/08/2007
MarketMinder's View: Investors in gold from the 1970s rejoice as they’re just now breaking even!
Market Misperceptions
By , US News, 11/08/2007
MarketMinder's View: California has an uphill economic battle ahead of it because: A) The state’s massive tax burden it places on corporations B) The heavy tax burden placed on individuals C) Legislators run wild with economically corrosive social agendas D) All of the above. (D is the correct answer.)
Market Misperceptions
By , Boston Globe, 11/08/2007
MarketMinder's View: Yawn. What else is new? This was a provocative story in 2004, but doesn’t hold much surprise power for markets today.
Dueling Headlines
By , International Business Times, 11/08/2007
MarketMinder's View: The media pretty much hears what it wants to when big Ben speaks.
Sensible Stories
By , The Wall Street Journal, 11/08/2007
MarketMinder's View: One clear takeaway from Tuesday’s elections (yes, elections were actually held this week!) is voters remain broadly skeptical of new government initiatives and higher taxes—a very good thing for markets.
Market Misperceptions
By , The New York Times, 11/08/2007
MarketMinder's View: Never mind that US personal income and net worth continue to grow, we absolutely MUST be headed for recession if housing prices aren’t rising, right!? (Wrong!)
Sensible Stories
By , Times Online, 11/08/2007
MarketMinder's View: Cutting back on expensive bureaucracy is good news for businesses and the markets.
Sensible Stories
By , New York Post, 11/08/2007
MarketMinder's View: Free trade is great – read on.
Market Misperceptions
By , Reuters, 11/07/2007
MarketMinder's View: Goodness gracious folks are dour today. It’s a good thing pessimism is a boon for bull markets!
Sensible Stories
By , Herald Sun, 11/07/2007
MarketMinder's View: Why the big infrastructure projects? A booming global economy.
Market Misperceptions
By , The Wall Street Journal, 11/07/2007
MarketMinder's View: What an insight! Rising oil prices will lead to higher gas prices! Our response: So what?
Market Misperceptions
By , Reuters, 11/07/2007
MarketMinder's View: “Grim” implies death, right? Is anyone really expecting the death of Financials firms or the US economy? Of course not. This is more absurd sensationalism.
Sensible Stories
By , Bloomberg.com, 11/07/2007
MarketMinder's View: See yesterday’s MarketMinder commentary, “Credit Crunch II: A Box Office Flop!” for more on investor irrationality.
Market Misperceptions
By , Washington Post, 11/07/2007
MarketMinder's View: With all due respect, Mr. Samuelson is talking about the virtues of something that doesn’t currently exist.
Market Misperceptions
By , The New Zealand Herald, 11/07/2007
MarketMinder's View: In other words, gold as an investment is reaching break even after 28 years. Regardless of gold being a poor long term investment, it has tended to correlate with the stock market in recent years – see our “Gold Digging” commentary from April, not much has changed
Market Misperceptions
By , The Wall Street Journal, 11/07/2007
MarketMinder's View: “Now it might be time to start worrying about a more-remote threat: shaky corporate debt.” You can’t make this stuff up. Sentiment is far from euphoric levels and the economy remains strong – very bullish.
Market Misperceptions
By , NPR, 11/07/2007
MarketMinder's View: Forgive us if we don’t shed a tear—Wall Street is a boom/bust game, and if you want to play with the big boys you’ve got to take your lumps sometimes.
Market Misperceptions
By , The Wall Street Journal, 11/07/2007
MarketMinder's View: This is ponderous. Corporate balance sheets are in aggregate cash rich and in historically tremendous shape—where exactly are the defaults going to come from?
Market Misperceptions
By , The Associated Press via The Washington Post, 11/07/2007
MarketMinder's View: Say it with us: Stocks and currency movements are NOT meaningfully correlated. Period.
Sensible Stories
By , MSNBC.com, 11/07/2007
MarketMinder's View: Consolidation in the market exchange arena continues.
Sensible Stories
By , Reuters, 11/07/2007
MarketMinder's View: Yes, exactly! Except, we don’t think anything is “implied” at all—it’s a fact that productivity has been high and inflation low through the duration of the bull market.
Market Misperceptions
By , Bloomberg, 11/07/2007
MarketMinder's View: Our ridiculous story of the week. We wouldn’t have bet on it ourselves, but apparently you actually CAN make money from pig waste.
Market Misperceptions
By , Times Online, 11/07/2007
MarketMinder's View: Deteriorating economy? No – the economy looks quite strong.
Market Misperceptions
By , The Associated Press via Newsvine, 11/07/2007
MarketMinder's View: Other obvious headlines today included, “The sun rose in the east,” and “Coffee: A great way to kick-start your day!”
Sensible Stories
By , The Wall Street Journal, 11/07/2007
MarketMinder's View: Freer markets will benefit Chinese investors – and everyone else.
Market Misperceptions
By , the Wall Street Journal, 11/07/2007
MarketMinder's View: This is downright chilling. New anti-arbitration legislation (read: pro-lawyer/pro-class action) is making progress in Congress. One bill would prohibit voluntary agreement to arbitration, and RETROACTIVELY rewrite existing private contracts. There is slim chance this will pass, but that it’s even being entertained is bad.
Market Misperceptions
By , The New York Times, 11/06/2007
MarketMinder's View: Lenders are quickly replacing the tax man as the most despised profession of all!
Sensible Stories
By , The Wall Street Journal, 11/06/2007
MarketMinder's View: Leave it to politicians to make a tough situation even worse by decreasing access to credit.
Sensible Stories
By , The Economist, 11/06/2007
MarketMinder's View: A good overview of emerging markets today.
Sensible Stories
By , The New York times, 11/06/2007
MarketMinder's View: Understanding how folks rationalize their often irrational behavior provides important clues to market behavior as well.
Sensible Stories
By , Financial Times, 11/06/2007
MarketMinder's View: A different take on sovereign wealth funds.
Market Misperceptions
By , CNNMoney.com, 11/06/2007
MarketMinder's View: With all due respect to the Maestro, his opinions simply don’t bear much market relevance any longer.
Sensible Stories
By , The Wall Street Journal, 11/06/2007
MarketMinder's View: A hasty Congressional regulatory response to subprime could materially reduce the availability of credit to lower-income families—not good.
Market Misperceptions
By , Reuters via Yahoo News, 11/06/2007
MarketMinder's View: The vast majority of economists and pundits see pain ahead for the US economy. But what about all the other times they predicted the same during this five year bull market? (The lesson? Don’t put too much credence in these guys.)
Market Misperceptions
By , Times Online, 11/06/2007
MarketMinder's View: Isn’t it ironic that the developing world sees access to credit as a way to end poverty and the US Congress seems determined to cut off access to credit for the poor?
Market Misperceptions
By , the New York Times, 11/06/2007
MarketMinder's View: Don’t expect this practice to proliferate. It’s silly. We’re all for contingency planning, but why would a company pigeon-hole themselves by announcing a back-up CEO? Wouldn’t you rather have the flexibility to hire the most qualified person when the need arises?
Sensible Stories
By , US News, 11/06/2007
MarketMinder's View: Neither. 2008 will be like 2008. Understanding market history can provide important insights to investors, but don’t let it strong-arm you into portfolio decisions.
Sensible Stories
By , The Wall Street Journal, 11/06/2007
MarketMinder's View: Exactly! See yesterday’s commentary, “China’s Fabulous Moolah,” for more.
Sensible Stories
By , Reuters, 11/06/2007
MarketMinder's View: This is great news! High demand for energy means a thriving economy!
Market Misperceptions
By , Barron’s, 11/06/2007
MarketMinder's View: Huh? This piece—which loosely blames the Fed for today’s tight credit conditions—doesn’t make a lot of sense. Lending rates are still below historical averages today!
Sensible Stories
By , The Wall Street Journal, 11/06/2007
MarketMinder's View: The major central banks of the world are highly sophisticated, developed and able to react quickly to market problems. Good times!
Market Misperceptions
By , The Telegraph, 11/06/2007
MarketMinder's View: A failure to scale the size of the sub-prime market is fanning the bearish flames.
Sensible Stories
By , Times Online, 11/06/2007
MarketMinder's View: Despite the pessimism and financial losses, the economy remains buoyant.
Sensible Stories
By , Bloomberg, 11/05/2007
MarketMinder's View: Good economic news continues to pour in despite investor jitters.
Sensible Stories
By , Forbes, 11/05/2007
MarketMinder's View: The ability to consistently innovate is a pivotal strategic attribute for any company; it’s particularly important for good investing.
Market Misperceptions
By , The Observer, 11/05/2007
MarketMinder's View: See our past commentary, “Metaxic Imbalance” (10/31/07) for more.
Sensible Stories
By , The Business, 11/05/2007
MarketMinder's View: “The way they [tax havens] lead the global wealth rankings is testament to the power of lower taxes to raise overall living standards.” Indeed.
Sensible Stories
By , National Post, 11/05/2007
MarketMinder's View: By lowering the level of taxation on business, you create the incentive to have more of it. No wonder high-tax nations tend to have lower employment.
Market Misperceptions
By , TheStreet.com, 11/05/2007
MarketMinder's View: Put subprime and asset write-downs into context: Billions of dollars relative to annual US economy of over $13 trillion—small potatoes. Meanwhile, unemployment is low, GDP is surging past expectations, and stocks are still up nicely this year.
Market Misperceptions
By , The Telegraph, 11/05/2007
MarketMinder's View: We’ll go out on a limb and say that higher caviar prices aren’t a sign of economic weakness or coming peril.
Sensible Stories
By , The New York Times, 11/05/2007
MarketMinder's View: Precisely! Government regulation often causes more harm than good. Sarbanes Oxley is just one of countless examples.
Market Misperceptions
By , Bloomberg.com, 11/05/2007
MarketMinder's View: Currency performance and stock market performance are not correlated—continue to ignore such stories.
Market Misperceptions
By , Bloomberg, 11/05/2007
MarketMinder's View: Impressive, but doesn’t tell us much of anything about where the broader stock market is headed.
Sensible Stories
By , CNNMoney.com, 11/05/2007
MarketMinder's View: The “squeaky wheel gets the grease” approach to capital markets regulation is a bad idea. Those who took on greater risk must face greater consequences should their investments go awry.
Sensible Stories
By , Bloomberg, 11/05/2007
MarketMinder's View: A great example of an industry streamlining itself by market forces, not government intervention.
Sensible Stories
By , The Wall Street Journal, 11/05/2007
MarketMinder's View: Folks often ask why CEOs make so much…here’s why.
Market Misperceptions
By , Times Online, 11/05/2007
MarketMinder's View: While everyone else is waiting, we’ll just enjoy a very attractive equity market.
Market Misperceptions
By , 11/05/2007
MarketMinder's View: See our past commentary, “The Exorcist” (10/29/07) for more.
Sensible Stories
By , The New York Times, 11/05/2007
MarketMinder's View: An insightful look at the US healthcare system and its problems.
Market Misperceptions
By , Bloomberg, 11/05/2007
MarketMinder's View: Look, we can’t tell you what to do…but if it were us, we wouldn’t take investing advice from a supermodel. But that’s just us.
Sensible Stories
By , BBC News, 11/02/2007
MarketMinder's View: The efficient way of “saving” – investing!
Market Misperceptions
By , The Wall Street Journal, 11/02/2007
MarketMinder's View: If by fresh they mean stale, then yes, it’s fresh. This is the same old credit worry we’ve heard about since 2006.
Market Misperceptions
By , The Wall Street Journal, 11/02/2007
MarketMinder's View: This is breathtaking in its sensational pessimism. See yesterday’s commentary, “Lumpy, Bumpy Bulls,” for more.
Market Misperceptions
By , CNNMoney.com, 11/02/2007
MarketMinder's View: How silly—pundits have said this for years now. See our past commentary, “Metaxic Imablance,” for more.
Market Misperceptions
By , Times Online, 11/02/2007
MarketMinder's View: Levels not seen since the mid-1990s – and remember the huge bear market that ensued? Did we say bear – we meant bull.
Sensible Stories
By , The Wall Street Journal *, 11/02/2007
MarketMinder's View: Congress could more than double fees on worker visas, likely forcing more jobs overseas rather than bringing workers here. Closed borders and undue protectionism are very bad things for an economy.
Market Misperceptions
By , Times Online, 11/02/2007
MarketMinder's View: More like a perfect storm of fear that is great for markets.
Market Misperceptions
By , TCS Daily, 11/02/2007
MarketMinder's View: Here’s a fun one illustrating how government intervention often makes things worse than before—including denying schoolchildren a birthday cupcake.
Market Misperceptions
By , The Telegraph, 11/02/2007
MarketMinder's View: Don’t focus on one-day price movements when making investment decisions.
Market Misperceptions
By , CNNMoney.com, 11/02/2007
MarketMinder's View: Folks should be jumping for joy reading this. $10 billion!? That’s it? The US is a $13 trillion dollar economy! $10 billion is peanuts.
Sensible Stories
By , Bloomberg.com, 11/02/2007
MarketMinder's View: Strong economic data continues to flow in despite unrelenting investor worries.
Market Misperceptions
By , Bloomberg, 11/02/2007
MarketMinder's View: Our ridiculous story of the week. This might just be the most creative reasoning to be dour on the global economy we’ve seen.
Sensible Stories
By , the Associated Press via Newsvine, 11/02/2007
MarketMinder's View: The damaging result of price caps. Why not let a free market decide prices and quantities?
Sensible Stories
By , US News, 11/02/2007
MarketMinder's View: It’s a beautiful world out there and a great time to own stocks—all you need is the right perspective.
Sensible Stories
By , BBC News, 11/02/2007
MarketMinder's View: Amidst the doom and gloom of the financial press, there is still some economic sunshine to be found.
Sensible Stories
By , Financial Times, 11/02/2007
MarketMinder's View: Indeed – Asian, as well as global, economic growth should continue to be quite strong.
Sensible Stories
By , Kudlow’s Money Politic$, 11/01/2007
MarketMinder's View: “Don’t look now, but we’re in the middle of an economic boom.” Yes we are.
Market Misperceptions
By , 11/01/2007
MarketMinder's View: Oil prices and stock market movements are not correlated. It’s bullish folks still fret over this false fear.
Sensible Stories
By , NPR, 11/01/2007
MarketMinder's View: High energy demand is a sign the economy is strong: “In the past, the oil shocks were caused by a lack of supply — the OPEC embargo in 1973, the Iranian revolution in 1979, the Iran-Iraq war in 1980. Today, prices are soaring because of increased demand.”
Sensible Stories
By , US News, 11/01/2007
MarketMinder's View: Brings a tear to our eyes.
Sensible Stories
By , Reuters, 11/01/2007
MarketMinder's View: Positive economic news continues to roll in despite today’s overly dour sentiment.
Sensible Stories
By , Bloomberg.com, 11/01/2007
MarketMinder's View: With all the negative press these funds have received, it’s refreshing to read something like this.
Sensible Stories
By , The Wall Street Journal *, 11/01/2007
MarketMinder's View: Efforts to curb global warming come at a high human and economic cost, and often fail to provide significant benefit to the environment.
Market Misperceptions
By , The New York Times, 11/01/2007
MarketMinder's View: Let us try and follow this thinking – too much growth leads to higher oil prices which leads to slower growth. But wouldn’t that mean lower oil prices and then higher growth? All this is making us dizzy. The reality is that high oil prices are a symptom of economic growth, not a hurdle to economic growth.
Market Misperceptions
By , International Business Times, 11/01/2007
MarketMinder's View: Auto sales have been weak going on about five years now. Clearly, they haven’t sunk the stock market or economy.
Sensible Stories
By , The Telegraph, 11/01/2007
MarketMinder's View: In praise of supermarkets!
Market Misperceptions
By , Reuters, 11/01/2007
MarketMinder's View: If the US economy tanks? Huh? We’d say a 3.9% increase in third quarter GDP more than confirms the US economy is healthy. In fact, much of the growth is due to surging US exports throughout the globe—we’re not a China-centric economy.
Market Misperceptions
By , CNNMoney.com, 11/01/2007
MarketMinder's View: Look for more finger-pointing in the wake of the credit “meltdown.” See our past commentary, “The Exorcist,” for more.
Market Misperceptions
By , 11/01/2007
MarketMinder's View: First, one month of data tells us next to nothing. Second, note economic growth was robust during the period in spite of it.
Market Misperceptions
By , Kiplinger, 11/01/2007
MarketMinder's View: Unless Bernanke begins an aggressive new policy one way or the other, it’s generally best to generally ignore small Fed policy moves like yesterday’s.
Market Misperceptions
By , The Wall Street Journal, 11/01/2007
MarketMinder's View: We’re going to start blaming everything on the credit crunch. It’s getting colder in November – must be that darn credit crunch
Sensible Stories
By , The Wall Street Journal * (site requires registration), 11/01/2007
MarketMinder's View: Precisely! High interest credit is better for the poor than no credit at all.
Market Misperceptions
By , Financial Times, 11/01/2007
MarketMinder's View: Don’t count on us popping the champagne for more inefficient use of capital.
Market Misperceptions
By , Barron’s, 11/01/2007
MarketMinder's View: Further Fed cuts are needed to cushion the economy? Really? The economy that just grew 3.9% during the so-called “credit crunch?” We don’t get it.
Sensible Stories
By , The Wall Street Journal, 11/01/2007
MarketMinder's View: Decreasing the free flow of capital is a negative thing.
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.
Sensible Stories
By , Barron’s, 09/28/2007
MarketMinder's View: A rational look at why current popular market fears are overblown.
Market Misperceptions
By , The Wall Street Journal, 09/28/2007
MarketMinder's View: Despite? Why “despite?” Oil’s direction is not meaningful for stocks.
Market Misperceptions
By , CNN Money, 09/28/2007
MarketMinder's View: Since this seems to be an airing of grievances, we’d like to point out that mortgage rates remain very low yet no one seems to notice.
Market Misperceptions
By , Reuters, 09/28/2007
MarketMinder's View: Greenspan (who’s allegedly retired, by the way) sees increased risk of recession tied to weak consumer spending. Didn’t consumer spending just beat expectations?
Market Misperceptions
By , Bigarticle.com, 09/28/2007
MarketMinder's View: This grumpy article blames perceived woes on the recent rate cut. Which is funny, since two weeks ago, the consensus clamored a rate cut to “save” the economy. Either way, it’s just sensational, meaningless fear.
Market Misperceptions
By , newsvine.com, 09/28/2007
MarketMinder's View: A blow to what? US GDP, earnings, and consumer spending beat expectations, unemployment is very low, and interest rates benign. And housing prices were higher in August!
Market Misperceptions
By , Bloomberg., 09/28/2007
MarketMinder's View: This headline is a bit misleading. Goldman is projecting 4.2% global growth—hardly something to be gloomy about.
Market Misperceptions
By , BusinessWeek, 09/28/2007
MarketMinder's View: Because analysts fail to account for shrinking stock supply due to resurging M&A and buybacks, expect earnings to surprise to the upside.
Market Misperceptions
By , The Wall Street Journal, 09/28/2007
MarketMinder's View: First it’s deflation, then inflation, now stagflation!? Is it the foundation for a conflagration? All this worry is making us even more bullish.
Sensible Stories
By , CNNMoney.com, 09/28/2007
MarketMinder's View: Silly consumers! Don’t they know they were all supposed to be imperiled in August because of the credit crunch? Hmm. Maybe the media got that wrong.
Sensible Stories
By , Café Hayek, 09/28/2007
MarketMinder's View: As oil hits new highs, a different take on the concerns over oil supply.
Market Misperceptions
By , Financial Times, 09/28/2007
MarketMinder's View: Here’s a new one – globalization should lead to higher taxes. It’s always puzzling to us that many economic reports focus on maximizing revenue for government, and not maximizing individuals’ wealth.
Sensible Stories
By , Reuters, 09/28/2007
MarketMinder's View: Destroying the supply of securities – just another day at the office.
Sensible Stories
By , The Wall Street Journal, 09/28/2007
MarketMinder's View: Egypt is learning cutting regulation is good for business and helps build societal wealth. Maybe our politicians should take notes.
Sensible Stories
By , The Wall Street Journal, 09/28/2007
MarketMinder's View: Wait a minute – we thought Americans were out buying iPods and Big Macs with their credit cards because they had no more money. Oh right, that wasn’t us. American consumers just keep getting wealthier!
Sensible Stories
By , IBD Editorials, 09/27/2007
MarketMinder's View: Free trade is an essential component of global economic growth.
Sensible Stories
By , The Wall Street Journal, 09/27/2007
MarketMinder's View: We love to see people question conventional wisdom. In this case, an interesting look at the downside of “shareholder democracy."
Market Misperceptions
By , The Wall Street Journal, 09/27/2007
MarketMinder's View: This is bizarre—it claims a disturbing trend of bullish money managers. If a majority of professionals were euphoric, we’d consider that a market risk. But, the article points out only 28% of managers believe stocks are undervalued.
Sensible Stories
By , Bloomberg, 09/27/2007
MarketMinder's View: Unemployment is down, order books are full, and exports are strong—positive news from Europe’s largest economy.
Market Misperceptions
By , The Associated Press, 09/27/2007
MarketMinder's View: Why is this news? There’s no meaningful correlation between home sale volume and stock prices. Why not say “Stocks Up Despite Rainy Weather.” “Stocks Up Despite it Being Thursday.” “Stocks Up Despite Van Halen Reunion Tour.” It’s meaningless!
Market Misperceptions
By , Barron’s, 09/27/2007
MarketMinder's View: Hooray! This sets the stage for investors to be surprised to the upside by earnings.
Market Misperceptions
By , MarketWatch, 09/27/2007
MarketMinder's View: The dollar isn’t predictive for stocks. End of story. Read MarketMinder commentary “Dollar Doldrms Don’t Mean Diddly for Stocks.”
Market Misperceptions
By , CNN Money, 09/27/2007
MarketMinder's View: Subprime: Big Talk, Little Global Impact.
Sensible Stories
By , Bloomberg.com, 09/27/2007
MarketMinder's View: “Chuck Norris gets ALL of his funding from the asset-backed commercial paper market.” Satire can actually prevent investing errors. (See MarketMinder commentary “Ask the Question,” 09/25/2007.)
Sensible Stories
By , The New York Times, 09/27/2007
MarketMinder's View: Boooo – we don’t like government meddling in private markets.
Dueling Headlines
By , BBC News, 09/27/2007
MarketMinder's View: The real story is prices rose in the last month but based on the headlines who would know?
Market Misperceptions
By , The Washington Post, 09/27/2007
MarketMinder's View: Sales volume is down from the record-breaking pace of the last five years. So what? Home prices were actually higher in August—and weren’t home prices what everyone was fretting? This is just another example of fishing for a negative story when not much economically negative is happening.
Market Misperceptions
By , MSNBC.com, 09/27/2007
MarketMinder's View: What – no mention of stocks and oil higher on the same day? No one ever notices when that happens.
Sensible Stories
By , Financial Times, 09/27/2007
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