The Creative Destruction of Anthony Weiner
The correction I’ve been expecting is now in full swing. Stocks have retreated nearly 7% from the recent high, commodity prices have fallen a similar magnitude and the dollar is attempting to stabilize. We have entered a transition phase for the economy and the market that will likely take several months to play out but .. read more
Weekly Economic and Market Review
Why haven’t stock prices fallen more? I’ve been asking myself that question every day for weeks and I don’t have a good answer. The US economic data continues to weaken. Europe is still grappling with its debt problems and a Greek default – at a minimum – seems more likely by the day. It seems .. read more
Weekly Economic and Market Review
Anticipation of the rapture must have gripped Wall Street traders last week. That’s the only explanation I can come up with for the first day trading of LinkedIn. If the world had ended Saturday as expected, surely it wouldn’t matter that Thursday you paid 35 times sales for a company that expects to post a .. read more
Weekly Economic and Market Review
Was that it? Is the great stock market correction of 2011 already over? Libya is in the throes of a revolution that threatens to spread to the more important parts of the oil producing world and the slippery stuff can’t hold above $100? All this geopolitical turmoil and gold can’t even make a new high? .. read more
Optimism For Fiscal Reform Fading
There was a lot of hoopla last week about the stock market doubling since the post financial crisis low but if the rally is to continue, it is critical that the political class stop the posturing and get on with the people’s business. The release of President Obama’s budget last week was the latest indication .. read more
Weekly Economic and Market Review
GM sold shares to the public last week some of which were previously owned by….the public. Anyone lucky or well connected enough to be allocated shares in the IPO was able to book a near 10% profit almost immediately while the less fortunate previous owners – that would be you and me – took a .. read more
The Uncertainty Myth
Barry Ritholz destroys the myth that the market hates uncertainty: A closer look at this uncertainty meme reveals it to be a false-ism — one of those emotionally appealing phrases that ping around trading desks. The lack of evidence supporting their premise seems to matter very little. To recognize how meaningless these statements are, consider .. read more
Weekly Economic and Market Review
The market got exactly what it expected last week and the result was another leg higher in a rally built on two dubious assumptions: gridlock is good and the Fed can fix what ails the economy. The mid term elections delivered control of the House of Representatives to John Boehner and the Republicans while the .. read more
