Investment Observations

Some pertinent investment observations from reader EBW: The most interesting feature of the market is that investors are getting hurt by their negative alpha; they are getting whipsawed. While the averages are flattish, we are witnessing wild rotational and sometimes speculative swings (especially of a metals and commodity kind). Hedge funds, the dominant investor, seem to be getting “chase-y” as [...]

Does the Market Look Undervalued?

This chart should be a scary picture for those who believe the stock market is undervalued.  From Barry Ritholtz: NYSE Market Capitalization as % of GDP by Barry Ritholtz Chart Store week continues at the Big Picture. Today’s TCS graph is the NYSE Market Capitalization, shown over time as a percentage of US GDP: > click for larger graphic ~~~

Today’s Wisdom

Quote of the Day from The Big Picture website: “The economy remains on government-assisted life support, and the government has been very successful in creating the illusion of economic prosperity. It is doing this to buy time and help preserve social stability as the adjustment towards housing deflation, consumer deleveraging, and chronic unemployment takes its toll on the growth rate [...]

Frankenstein Rules

The empire continues to collapse. In the last half century, the government has converted a free market economy from a smooth self-functioning, self-equilibrating system into a Frankenstein monster. The smallest problem or discomfort was addressed by government with an ad hoc “solution.” Each intervention spawned multiple new problems which of course had to be “fixed.” Sometimes the new problems became [...]

Social Security

Retired and not yet retired should be concerned about Social Security. Barry Ritholtz lays out the options the government has regarding the sustainability of the fund. See “Saving” Social Security

Wonderful Collection of Forecasts

Below is a link to a wonderful collection of forecasts for the New Year from The Big Picture. It includes forecasts/commentary from Wall Street Banks, Hedge Funds, Investment Advisors, as well as investment ideas and potential problems. International is also dealt with. You can get the information by clicking on Guide to 2010 Outlooks

Anything But Stocks

Stocks 1999-2009: Worst. Decade. Ever. By Barry Ritholtz – December 21st, 2009, 6:00AM From today’s WSJ, comes this (amusing) article about the past decade:  Its the worst equity performance in nearly 2 centuries. Why do I say amusing? Because despite what many fools and asshats were claiming in the 1990s, stocks can only gain so much relative to earnings. Sure, [...]

Geithner Fails, Gets Promoted and Taxpayers get Screwed

Image via Wikipedia Image via Wikipedia Barry Ritholtz, in a post entitled Special Inspector General: NY Fed Screwed Up AIG Bailout, argues that the government can’t seem to get it right even when they have a no-brainer: “The Federal Reserve Bank of New York, in a desperate headlong rush to rescue American International Group, screwed the pooch. Despite holding all [...]

Worst Bill Ever. What About the Constitution?

Here is another, similar take on my previous post. This one via The Big Picture. The frightening thing, at least to me, about Rosner’s commentary, is less the stupidity of the legislation than the abrogation of Congressional oversight in future decisions. If we had a Constitution, clearly such a policy would be deemed unconstitutional. Doesn’t even seem to phase these [...]