Market Commentary
CNBC is always wrong
I just had to share this video. Finally, someone on TV willing to call out the prognosticators and pundits.
read more »How Bad Is Banking? And Who Are The FDIC Four?
This guest blog entry by Tristan Yates is a follow-up to “Are America’s banks really insolvent?” and is part of the important effort to understand and evaluate the depth and breadth of the financial crisis. For The Curious Investor‘s take and to leave your own thoughts check out this post’s comments thread. What kind of [...]
read more »Efficient markets provide opportunities for savvy buyers
Ben Bernanke’s testimony in Congress yesterday got me thinking. The stock values reflect not so much the fundamentals, the long-term profitability of the economy, but they also reflect investor attitudes about risk and uncertainty which right now are at very high levels. The efficient market hypothesis states that market prices are informationally efficient. That means [...]
read more »Is the S&P 500 finally bottoming?
In October of last year, Warren Buffett wrote an op-ed in the New York Times announcing his intention to buy U.S. equities. In the months since, we’ve seen the markets oscillate wildly but ultimately head only further down into its trough, sparing no one in its path. Was he wrong? Is it still not safe [...]
read more »When Diversification Fails
The above chart represents the return for nearly every combination of equity investments you could have made over the last year. No sector, style, world region or market cap escaped devaluing more than 25%. Compare this to the start of our last recession between 2000 and 2001. Just within U.S. equities, proper diversification likely could [...]
read more »Are America’s banks really insolvent?
A lot of well respected economists have gone on record over the last few weeks and discussed the likelihood that our country’s financial institutions are all insolvent. Two particularly heavy hitters - Paul Krugman and Nouriel Roubini - have gone as far as to advocate nationalizations on a wide scale. It seems that just about everyone and their [...]
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