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January 5, 2011
Market Talk
What Does The First Week Of Trading Tell Us?
January 4, 2011
As is the case every January, the financial media try to draw conclusions for the remainder of the year based upon the first few trading days. Many publications and talking heads repeat the phrases, “as goes the week, so goes the year” and, “as goes the month, so goes the year.” Do these adages have… Continue reading What Does The First Week Of Trading Tell Us?
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Are U.S. Investors Finally Returning To Domestic Stocks?
January 4, 2011
<Click on chart for larger image> MarketBeat (WSJ Blog) – U.S. Stocks: But Will You Love Me Tomorrow? Will 2011 be the year that investors return to the stock markets? One little number from over the quiet holiday weeks is grabbing a little more attention this morning: the Investment Company Institute’s weekly fund flow data… Continue reading Are U.S. Investors Finally Returning To Domestic Stocks?
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The Carry Trade
January 4, 2011
Bloomberg.com – Currency Carry Trade Losses May Bolster U.S. Dollar Currency traders that seek profits by borrowing in nations with low interest rates to fund purchases in countries with higher yields are losing more money than at any time in at least a decade. The strategy lost 2.5 percent in 2010 as the dollar —… Continue reading The Carry Trade
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European Contagion
January 4, 2011
<Click on chart for larger image> The Financial Times – Battles loom between creditors and borrowers A few weeks ago, a large US investment bank asked a discreet question of its biggest institutional investor clients. How long would it be before the debt crisis that has struck Europe reached the US? One, two or three… Continue reading European Contagion
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What Can 1841 Teach Us About Today’s Struggling State Budgets?
January 4, 2011
The Wall Street Journal – When States Default: 2011, Meet 1841 Land values soared. States splurged on new programs. Then it all went bust, bringing down banks and state governments with them. This wasn’t America in 2011, it was America in 1841, when a now-forgotten depression pushed eight states and a desolate territory called Florida… Continue reading What Can 1841 Teach Us About Today’s Struggling State Budgets?
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Dark Pools
January 4, 2011
The Wall Street Journal – ‘Dark Pools’ Pick Up Stock-Trading Share Private markets accounted for a record 1 in 3 U.S. stock trades last month as the country’s four largest stock-exchange groups continued to lose market share, according to data released Monday. The rise of so-called dark pools and other off-exchange strategies aimed at large… Continue reading Dark Pools
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Bankruptcy
January 4, 2011
The Wall Street Journal – Bankruptcy Filings Leapt 9% Last Year The number of Americans filing for personal bankruptcy topped 1.5 million last year, as high long-term jobless rates and depressed home prices drove more households to seek court protection. Personal bankruptcies rose to 1.53 million, up 9% from 2009, the highest level since a… Continue reading Bankruptcy
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Cartoons
January 4, 2011
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What Next For The Markets?
January 3, 2011
The Wall Street Journal – Meet the Supporting Cast Markets Continued to Benefit From Intervention in 2010; Now, the Question Is, Can the Fed and Others Exit Neatly? As was the case in 2009, investors can thank continued, unprecedented efforts by governments and central banks around the globe to keep their economies and financial markets… Continue reading What Next For The Markets?
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What Next For Bonds?
January 3, 2011
USA Today – Bonds’ dramatic year sets stage for higher interest rates It was a dramatic ride for bonds and the mortgage market in 2010 as an economic crisis in Europe and wonky concepts like “quantitative easing” helped push down yields to levels not seen since the 1950s. The new year may be just as… Continue reading What Next For Bonds?