Archive for October, 2010

The Federal Reserve (Chair Ben Bernanke, in particular) would like a tad more inflation and thinks its plan to buy bonds could accomplish that goal. Now there are signs that just talking about it has done the trick. Here are three examples: »

About two months ago, we were discussing the benefits of value stock screening. Since then, the market has moved higher, and most of the stocks we found no longer pass the screens. »

China took a positive step yesterday that will benefit not only itself, but also all those countries engaged economically with it, including the US. Here’s why… »

Fed watching is in high gear, looking for signs that the Federal Reserve will initiate “Quantitative Easing 2” (QE2): Buying more bonds to keep interest rates low, foster economic growth and boost employment. Then there is the widespread discussion of how the news – whatever the decision – will affect the bond and stock... »

Macro investing is losing its grip on investment returns as “global” twists and turns (and frights) diminish in importance. In its place is a growing realization that security selection is back – that there is good money to be made by correctly separating the winners from the pack. Therefore, expect macro investing to give... »

Typical of this year’s one-sided analyses, the foreclosure slowdown is being dressed up as a terrible blow to both the real estate market and the banks. Not only are the adverse effects overstated, but also there is little mention of the beneficial effects. Looking at what’s happening without the hype shows a much less... »

Fed Vice Chair states the obvious. Two lessons learned: Easy money can lead to leverage and speculation Markets cannot be counted on to self-correct Wow! That reaction is not for the lessons. It’s for the admission that the Fed had to relearn them. US financial history is filled with examples. Indeed, the Federal Reserve... »

Yesterday’s piece about the shortage of business news in The Wall Street Journal’s front (“A”) section recently (“No News Is Good News for the US Stock Market” – October 11) changed radically today. The paper is filled with business news – and virtually all of it is bullish. Even the “but” statements have reversed... »

WSJ now focusing on politics and foreign affairs The stock market’s rise back to its March/April levels means none of those intervening headlines and articles filled with dire warnings panned out (e.g., Greece/Europe/Euro, Goldman lawsuit/financial industry, BP oil spill/Florida/east cost/oil industry and double dip/deflation). »

Alcoa’s earnings report had better news than expected. »

Today’s stock market is a wonderful time to select and buy stocks. Even with the nice rise since Wall Streeters returned from their summer vacations, the investor activity shows no evidence of speculative fever. In fact, “asleep at the switch” would be a more apt description. The Verizon (VZ) situation is a perfect case... »

I have described this earnings period as an important third hurdle (out of three) to get the stock market back on track. What should we watch for, and what would make this earnings season a successful one? »

Paraphrasing the tag line in the old EF Hutton ad, “When Goldman Sachs speaks, investors listen.” »

Why did the US stock market go up in September? Mainly, because some heavyweight investors decided it was time to buy. That reason may sound obvious, but, in this investing environment, it is significant. More important than their actions are their motives. »

From The Wall Street Journal’s front-page “Business & Finance” column today: »