2010 September

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 .. read more

On September 29th, 2010, posted in: Economy by

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 .. read more

How Screwed Up Is Our Tax System? Very….

So Microsoft has decided to raise its dividend and that is certainly good news. How they intend to pay for it says a lot about US economic policy and it isn’t good (via Bloomberg): Microsoft is planning to sell debt this year to pay for dividends and share repurchases because much of its cash is .. read more

On September 23rd, 2010, posted in: Economy by Tags: , 1 Comment

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 .. read more

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 .. read more

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 .. read more