Global Market Commentary, Analysis and Investments
Many people missed the market’s enormous appreciation during the latest equity bull market because they were late to the game or chose to sit on the sidelines. The sideline is a crowded place these days as investors have been reluctant to fully embrace equities.
With the Fed’s self-fulfilling “wealth effect” taking hold…
…both the NASDAQ and Russell 2000 indexes reaching heights above April 2008…and talk of QE2 ending before the June 30 deadline, we begin today with a question: What is the most likely pin to prick this 24-month bull?
[Read more...]During the last 24 hours, fear evaporated from the global financial markets as completely as water from a Fukushima reactor. The Nikkei recovered from a 5% plunge to end the day down about 1.4%. Most European markets have rebounded about 2% and the Dow Jones Industrial Average is busy attempting a similar feat.
[Read more...]“We need to slash debt,? declared our friend Nassim Taleb this week on CNBC. Government debt, that is. “Unfortunately, that's the only solution.? And the most unlikely.
The Federal Reserve's quarterly Flow of Funds report shows households trimmed their debt 2.4% during the first quarter. Business debt was flat. But local and state government debt grew 4.3%. And federal government debt ballooned another 18.5%.
[Read more...]Yesterdays big move in the Dow throws us back to our customary position uncertainty, bordering on da-daism. The Dow rose 169 points yesterday. Gold shot up $29 to $1119.
I think, therefore I am, said Rene Descartes. How did he know he thought? And what if he thought he wasnt? Would he not be? He should have tried following the stock market! It would have improved his philosophy. I think I think, he would have emended his famous quotation. But maybe I dont…
[Read more...]
How the EU Has Secured the Greek Default it Sought to Avoid
“Germany Backs Rescue Fund,” the front page of today’s Financial Times declares. “Victory for Merkel on Euro Zone Aid,” adds the front page of today’s International Herald Tribune.
Good times, apparently, are here again…if the stories that followed these headlines are to be believed.
[Read more...]