2009 October

Investors Still Pessimistic

Although we’re in a bit of a correction right now, I remain basically bullish on stocks. I tend to favor the ones outside the US but even in the US, I think there are good reasons to remain bullish for now. Earnings are surprisingly good; productivity is rising as companies lay off workers and expand margins. And .. read more

Commodity Correction

Commodities, like stocks, are correcting right now. Unlike stocks though, the commodity indices are still above their 50 day MAs and I think should be bought on the pullback.

On October 28th, 2009, posted in: Markets by Tags:

Stocks Break 50 Day Moving Averages

All the major US stock market averages broke below their 50 Day Moving averages today. I use the 50 day MA as my correction indicator, so as far as I’m concerned, we are officially in a correction. That doesn’t mean the market has to fall off a cliff; many corrections are nothing more than sideways .. read more

Tarped and Stimulated

The Commerce Department will release the preliminary estimate of third quarter GDP on Thursday and the consensus expectation is for a positive growth rate of 3%. Considering what has been spent on behalf of economic recovery I would sure hope that we get something north of 3%. TARP took roughly 5% of GDP from the private .. read more

Feinberg Cuts Pay

The Obama administration’s pay czar will order companies with significant government ownership to cut pay: WASHINGTON — Responding to the growing furor over the paychecks of executives at companies that received billions of dollars in federal bailouts, the Obama administration will order the companies that received the most aid to deeply slash the compensation to .. read more

Tit for Tat

BEIJING – China took steps to impose antidumping duties on certain nylon imports from the U.S., European Union, Russia and Taiwan, hitting companies in the U.S. with duties of as much as 36%. This is why it is so dangerous for the US to start down this path with tire tariffs. The US has been .. read more

On October 21st, 2009, posted in: Economy by Tags: ,

Brazil Taxes Foreign Investment

Brazil will impose a tax on foreign investment in an attempt to stem the rise of the Real (via Bloomberg): The government announced yesterday it will impose a 2 percent tax on foreign purchases of fixed-income securities and stocks starting today. The levy is higher than a previous 1.5 percent tax scrapped a year ago .. read more

Down the Rabbit Hole

“If I had a world of my own, everything would be nonsense. Nothing would be what it is because everything would be what it isn’t. And contrary-wise; what it is it wouldn’t be, and what it wouldn’t be, it would. You see?” From Alice in Wonderland I’m quite sure that Charles Dodgson – better known as Lewis .. read more