EVENING READING
17 September 2009 by Cullen Roche
5 Comments
Dow 10,000 Could Be Cause For Concern - Market Watch
The Stimulus Didn’t Work - WSJ
The Unsinkable Market - Barrons
Is The Ivy League Investment Model Broken? - Morningstar
The Dollar Is The New Yen, Part 1 & Part 2 - WSJ
Decoding The Nat Gas Rally – WSJ
The Free Lunch In Credit Is Over - FT
Ken Fish says we need MORE debt. Of course, he also remained WILDLY bullish throughout the downturn last year:
Ken Fisher is a fish. He didn’t get any of his clients out of the market (not even a reduction in allocation to equities), before the crash in September-October last year. He called the end to the bear market in August and he was bullish right through the crash. Then in February he told his clients he was very, very, very sorry that he (and supposedly no one else) didn’t see it coming.
The free lunch in credit may be over, but municipals still look like they have a long run ahead to get to normalized spreads with treasuries, especially considering the probability of rising tax rates on those earning $250K or more. Taxes will need to be increased much more than anyone is willing to admit.
The current level of the unsinkable stock market is not so suprising. The bounce puts the S&P500 almost back on track to meet a regression of the downward trend from October 2007 to the collapse of Lehman and AIG (pre-crash). That line extended out 34 months (about the length of the 2000-2002 bear market or the 1929-1932) takes the market to about 750. The market is almost back on its previous recessionary track. The question is whether it will jump back on the track or blow right over it.
Well, I had hoped to find good new blog. Instead, I found a bunch of links to the WSJ. PLONK. The WSJ has an astonishing set of crank articles and christ the commentary is filled with pseudo-factual mush. You all read the WSJ? Do you all fly a tea-bagger flags too?
Mike, this is a great site. Read the other stuff.