2010 May


A month ago stocks were trading near recent highs on improving corporate earnings and a steadily improving US economic backdrop. Investors were not euphoric but a certain amount of complacency had crept into the market with the volatility index at levels that indicated little in the way of demand for downside protection. Individual investors were not .. read more

Weekly Economic and Market Review

The economic data last week continued to show strength but there were hints of a softening in a few reports which the bears seized on to make their case. For now, I don’t think the data supports the idea of a double dip recession but there are plenty of people who want to believe it so .. read more

Sentiment Turns Bearish

The AAII poll showed a big jump in bears: SAN FRANCISCO (MarketWatch) — Investor pessimism about stocks is at its worst since at least November, according to recent sentiment polls. Nearly 51% of investors surveyed by the American Association of Individual Investors said they feel bearish about the market over the next six months, the .. read more

Pork Spending Counterproductive

A report from Harvard Business School about the effects of bringing home the bacon: For Members of Congress, becoming a committee chairman means more power to spend and thus help for the home district, right? That’s certainly the common wisdom. But according to new research from Harvard Business School, the increased federal spending causes local .. read more

Shelton: Recovery Starts With Sound Money

Judy Shelton in the WSJ: The euro is beset with fiscal calamities that threaten its downfall, and markets in the U.S. are roiled by uncertainty over the government’s financial regulatory legislation. But don’t worry. Treasury Secretary Timothy Geithner meets with European finance officials today to discuss the economic situation. According to a Treasury Department statement, .. read more

Mobius Buying BRIC Stocks

Mark Mobius at Templeton is buying BRIC stocks: May 27 (Bloomberg) — Templeton Asset Management Ltd.’s Mark Mobius said he’s been buying stocks in Brazil, Russia, India and China in the past month and called the slump in emerging-economy shares a “correction” in a bull market. “Despite the fact that a lot of people think .. read more

On May 27th, 2010, posted in: Economy by Tags:

Barton Biggs Says Market to “Pop”

Barton Biggs: May 27 (Bloomberg) — U.S. stock markets are oversold and may rally strongly in the next few days, said investor Barton Biggs, who runs New York-based hedge fund Traxis Partners LP. “I think they’re going to stabilize in this general area, and then we’re going to have a significant move to the upside,” .. read more

On May 27th, 2010, posted in: Economy by Tags: