The Wall Street Journal – GM’s Sticker: $50 Billion The U.S. will cut its ownership stake in General Motors Co. below the symbolically important 50% to about 35% when the car maker relists its stock later this month, according to new figures the company plans to disclose Tuesday, but it will be tough for the… Continue reading TARP Profitability
<Click on picture for larger image>
None Today
The Wall Street Journal – Growth in Profit, But Concerns Over Sales So far, more than 60% of the companies in the Standard & Poor’s 500-stock index have posted earnings for the quarter. About four-fifths of those have logged higher profit and sales than a year earlier, S&P says. It forecasts margins of the 500… Continue reading Quarterly Earnings – Gamed And Useless Statistics
Comment Note the Senate chart below. Democrats are now trading under 50 for the first time in weeks. Bettors now place the odds of Republicans winning 50 seats at 39.7% (green line). The odds of Republicans winning 51 or more seats stand at 14% (red line). What this suggest is the Senate is literally up… Continue reading Mid-Term Elections
The Wall Street Journal – Stocks Face Dark Side of Gridlock in Capital For weeks, Wall Street has eagerly anticipated two events: Tuesday’s election and Wednesday’s expected Federal Reserve announcement that it will support financial markets by buying bonds. Now the much-awaited moment is upon us. But instead of being overjoyed, Wall Street is worried… Continue reading Is Gridlock Good?
The Wall Street Journal – Mystery ‘Other’ Traders Become a Growing Force in Oil Futures . A little-understood class of investors known only as “other” in government data is expanding its influence in the oil market. Traders classified as “other reportables” by regulators have increased their position in crude futures traded on the New York… Continue reading Speculating In Oil Futures
The Financial Times – Aline van Duyn, Michael Mackenzie and Richard Milne: Credit markets: Paper weight Indeed, it is the historical reference points that many investors think need to be adjusted – especially those who believe growth will be very slow and inflation will be low. Paul Colonna, chief investment officer for fixed income at… Continue reading Are Bonds A Bubble?
The Wall Street Journal – Jason Zweig – Have You Herd? Your Adviser Is Scared to Set You Straight On a weekend that is all about dressing up as somebody else, consider whether your financial adviser has been masquerading all along. Investment professionals are supposed to exercise independent judgment; in Warren Buffett’s words, they should… Continue reading Investment Advice
<Click on graphic for larger image> Barron’s – Cover: Bears,Beware! America’s money managers say stocks are cheap and the economy will keep growing. Why they’re bullish on tech, bearish on Congress. Sixty percent of the professional investors participating in our fall Big Money poll say they are upbeat about the stock market’s prospects through next… Continue reading Does This Mean The Equity Bull Market Is Over?
The Financial Times – Lex: Lessons from Hungary In spite of Friday’s gross domestic product data showing no signs of spiralling prices – the US’s core personal consumption deflator was just 0.8 per cent – there are now so many pundits warning of the hyperinflationary consequences of quantitative easing and fiscal profligacy that even the… Continue reading Europe Is Still A Mess
Reuters – Was France at fault for The Great Depression? As if France didn’t have enough problems at the moment with mass protests against pension reforms, now it stands accused of causing The Great Depression. An academic paper published by the National Bureau of Economic Research suggests it may have been gold hoarding by France… Continue reading Blame The French!