2009 August

Investors Flee Cerberus

From the WSJ: Investors in hedge funds run by Cerberus Capital Management LP, whose audacious multi-billion dollar bet on the U.S. auto industry went bust, are bolting for the door, clinching one of the highest-profile falls from grace of a superstar in the investment world. Clients are withdrawing more than $5.5 billion, or nearly 71% .. read more

On August 29th, 2009, posted in: Economy by Tags: , ,

Chinese to Raise Overseas Investments

China’s going out strategy is about to kick into high gear: LOS ANGELES (MarketWatch) – The president of China’s well-financed sovereign wealth fund said his group plans a massive, ten-fold expansion of its overseas investment this year, according to reported comments from an interview Thursday. China Investment Corp. President Gao Xiqing said the fund’s foreign .. read more

Government Investment – An Oxymoron

The biofuels industry that has enjoyed so much political support is having some problems (via WSJ): The biofuels revolution that promised to reduce America’s dependence on foreign oil is fizzling out. Two-thirds of U.S. biodiesel production capacity now sits unused, reports the National Biodiesel Board. Biodiesel, a crucial part of government efforts to develop alternative .. read more

Cash for Clunkers Fallout

The cash for clunkers program wasn’t much help to the two wards of the state known as GM and Chrysler (via FT): General Motors and Chrysler sales under the US “cash-for-clunkers” car scrappage incentives fell well below the two Detroit carmakers’ recent market shares, according to the government’s final summary of the scheme, which ended .. read more

The Rubber Room

If the US is to compete in a global economy, the education system has to be reformed. President Obama has hired Arne Duncan for the job. So far he has put forth only minor reforms in an attempt to appear to be doing something while not pissing off the teachers unions that are a major source of .. read more

Waiting for the Correction

Interesting comment in this article from the FT: “Everyone we speak with is keeping powder dry for the stock market weakening next month and during October and I think bond yields are falling ahead of that move,” says Tom di Galoma, head of Treasury trading at Guggenheim Partners. A correction at this point would be .. read more

Bearish Sentiment Rises in AAII Poll

Bearish sentiment rose in the lates American Association of Individual Investors poll (via Bespoke): According to this week’s survey of the American Association of the Individual Investors (AAII), only 1/3 of investors surveyed are currently bullish, while nearly half (49%) are bearish.  Based on these surveys at least, not everyone is bullish. Bullish sentiment didn’t .. read more

REITs to Benefit From Commercial Real Estate Problems

REITs have been tapping equity markets and are poised to benefit from the turmoil in the commercial real estate market (via WSJ): REITs are poised once again to pick up the pieces from the commercial-property bust. This year, they have tapped the stock market for nearly $15 billion in new equity and, this month have .. read more