201009.29
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Contrarian Investing Works

The name of our blog is Contrarian Musings for a reason. It isn’t easy but identifying the consensus and then going against the crowd is the very essence of investing. Here’s proof that being a contrarian is successful when actually practiced, from Brett Arends at the WSJ: Everybody knows the last decade on Wall Street…

201009.26
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Weekly Economic and Market Review

If the goal of Ben Bernanke’s Jackson Hole speech and the recent FOMC statement was to weaken the dollar, well mission accomplished. Since Bernanke laid out the Fed’s options for creating more inflation on August 27th, the US dollar index has dropped 5% and all manner of risky assets have moved higher when measured in…

201009.26
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Weekly Chart Review

201009.19
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Weekly Economic and Market Review

Stock markets rose last week even as the economic data – or at least most of it – continued to deteriorate. The S&P 500 rose roughly 1.5% while the NASDAQ rose over 3%. Foreign markets also generally rose with the hottest markets continuing their winning ways. India rose 4%, Hong Kong 3.3%, Turkey 5.3%, Indonesia…

201009.19
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Anticipation

The S&P 500 rose nearly 1.5% and the NASDAQ rallied over twice that amount all in a week when, if anything, the economic data continued to deteriorate. Of course, the market and the economy are not the same thing especially in the short term so it isn’t that surprising to see them diverge. It is often…

201009.11
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Weekly Economic and Market Review

The emerging consensus on the street is that the November mid term elections will be just the thing to set the bulls to running as newly resurgent Republicans and a chastened President…..what? Work together to pass much needed structural reforms of Social Security and Medicare? Enact sweeping tax reform? Repeal the recently passed health care…

201009.06
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Weekly Economic and Market Review

So maybe the economy isn’t headed over another cliff after all? Last week’s economic data wasn’t great but it was enough to rally the market 3.5% just because it wasn’t as awful as expected. I haven’t been particularly worried about the prospect for a double dip into recession land because I’m an eternal optimist –…