201209.30
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A Closer Look: Market Cap

The S&P 500 Cap-Weighted Index has performed markedly through three quarters, despite a recession-esque economic environment. The index stands close to 52-week highs and currently sits atop support at the 1430 level. It sits above both moving averages with both trending higher. While the mood is somber, the charts look good, but proceed with caution….

201209.30
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Tactical Update

The Fed has indicated the willingness to buy securities from savers and investors until we get job growth.  But what does this really mean?  Can the Fed induce hiring from further quantitative easing? Bernanke to investors of capital: “take risks today, lend money to entrepreneurs so they can hire.  Act now, because we are buying…

201209.24
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Einstein, Bernanke and Shampoo

Mandates are tricky enough when it comes to interpretation of how to best and most efficiently achieve them. This is especially true when the act of fostering a mandate or moving a system toward the desired outcome is disruptive. The evaluation process of the mandate and the policies meant to push toward it inevitably descends…

201209.23
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The Joyless Street

By Brian Cronin In striking a blow for democracy, it looks like the preliminary decision of the German Constitutional Court has had an effect on other nations signing on for the permanent bailout fund, the European Stability Mechanism. You will recall the court said that any change to the upper limit of Germany’s commitment (€190…

201209.23 0

Fear vs Greed: Greed Is Winning

Here in South Florida we have a saying. If you don’t like the weather, just wait ten minutes – it will change. During rainy season when the weather person says there is a 50% chance of rain, that means it will rain on half the city for half the day. Like the weather in South…

201209.17
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Secular Trends: Monetary and Fiscal Policy

We are often very vocal about our concerns regarding the poor policies in this country.  Here is a tidy little opinion piece from the Fellows at Stanford University’s Hoover Institution. It is a good summary of the existing headwinds coming out of our political class. WSJ.com – Opinion: The Magnitude of the Mess We’re In…

201209.17
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Secular Trends: Trade Wars

When times get tough, there is a tendency to get territorial and nationalistic.  This finger pointing and these attempts to stir up emotion in one’s constituency are mostly detrimental to everyone.  More politics in the form of economic warfare  is a trend we don’t want to see emerge. WSJ.com – Opinion: Importing Jobs From China…

201209.16
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Black Wednesday

By Brian Cronin This week sees the 20th anniversary of a traumatic event for the British government. Wednesday, September 16th 1992 was the day that Britain exited the Exchange Rate Mechanism in rather ignominious fashion. It would forever after be known as Black Wednesday. It is also a good lesson for today’s investors in that…