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Rally getting long in the tooth?
Andy Kessler, veteran tech writer for the Wall Street Journal, is getting that same queasy feeling he remembers from 1987 and 1999… His commentary from earlier this month is worth reading: For Whom the Bell Tolls, Sell…
Detroit not immune from subprime illness
Bloomberg writer Gabrielle Coppola has a fabulous new piece about the subprime auto loan crisis… It will affect not only the originators and ABS pools, but also the automakers and their suppliers who have been artificially pulling demand forward… The title says it all: New U.S. Subprime Boom, Same Old Sins: Auto Defaults Are Soaring.
JP Morgan chief feeling like the ugly American …
Jamie Dimon, one of the most disciplined (and respected) CEOs in Americas, has a sudden tirade on JPM’s quarterly analyst conference call… Bloomberg has the story: Dimon Says Being an American Abroad Is ‘Almost an Embarrassment’… The most interesting question: Was this an outburst of candor, or premeditated?
… El-Erian agrees
Mohamed El-Erian seconds Jamie Dimon… Bloomberg has the story: Jamie Dimon Is Right to Raise the Alarm…
What does Chinese saver shift mean for market?
Bloomberg notes that the high savings rate of the Chinese public has moved into the Chinese insurance sector, which offers higher yields than state-run banks… Giant fund flows of this type inevitably create distortions in asset valuations…
US equity overbought?
DoubleLine CIO Jeff Gundlach points out an interesting price anomaly: 26 P/E of S&P 500 is too far above 15 P/E of MSCI Emerging Markets Index… Investors are paying too much for the perceived safety and liquidity of the largest U.S. companies…
Sears Canada a model?
Sears Canada to Cut Jobs, Stores as It Enters Bankruptcy Protection… A trial run for the inevitable U.S. filing…
What is Equilibrium?
Equilibrium refers to a balance in supply and demand, resulting in stability in prices. In classical economics, free markets naturally tend toward a state of equilibrium: lowered supply creates higher prices, which in turn sparks reduced demand. This principle also works in reverse: excessive supply leads to cheaper prices, increasing demand. In the long term, […]
Posted in Finance Glossary
Even Bridgewater guessing on recession timing
Bridgewater hedge fund founder Ray Dalio on the next downturn: No major risks “for the next year or two” but then “longer term looks scary”… Ray Dalio and Bridgewater have access to whatever economic information is commercially available on a global basis… The piece shows how difficult it is, even for them, to call the […]
Hamptons homebuyers on a diet
Bloomberg on houses in the Hamptons, Long Island: High end sales lowest in three years… One of many bellwthers of high net worth liquidity and sentiment…
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