Stockmarket March

[MetalMeister]

Rick Santelli for U.S. Senate...

Chicago Tea Party in July...

What a difference a year makes, huh?

 

http://www.youtube.com/watch?v=zp-Jw-5Kx8k&feature=player_embedded

[MetalMeister]

FED FOMC notes...

Check out the mortgage backed securities purchases:

http://www.federalreserve.gov/newsevents/press/monetary/20100316a.htm

the Federal Reserve has been purchasing $1.25 trillion of agency mortgage-backed securities and about $175 billion of agency debt; those purchases are nearing completion, and the remaining transactions will be executed by the end of this month.

Same quote was on the January 27 FOMC notes.

[onlooker]

YC:

It can be generally agreed in 2008 and 2009, that the world was focusing on America to figure out if there’s going to be markets recoveries or not, world economic growth or not.

In 2010, it has gotten a lot tougher.   Now prudent investors got to look at what’s happening in countries in other continents as well.

There’s Europe to look at.  Euro bailout or not?  See: http://www.youtube.com/watch?v=BO80ulvIie0&feature=player_embedded

There’s China to look at.  Bubble economy or not?  See:  http://www.nytimes.com/2010/01/08/business/global/08chanos.html

There’s the Middle East.  Let’s not forget about what happened and still is happening to Dubai.

The following article with the title “The Market Domino Effect” says it well on why markets in different continents should be looked at.
See: 

Mostly, it means that all investments are interconnected. Simply owning a U.S.-based company focused on green technology may not make you immune to changes in foreign exchange rates, consumer demand in other parts of the world, or general expectations about the market. For example, what if that green technology company sells its products mostly in Europe? The value of the sale changes with the value of the foreign exchange rate between dollars and euros, and suddenly demand is slowing because the unemployment rate is going up on another continent! When you set your own expectations for investments, or anything in life, you should recognize that we no longer live in a simple financial world and we may need a wet suit, at times, to deal with all the waves.

http://www.tilefinancial.com/library/today-at-tile-the-market-domino-effect

Investing has gotten so much more complicated.  I am now like this:
http://thehallmarketreport.files.wordpress.com/2010/01/head-spinning2.jpg  and "Arrrrgh!" 

And, of course, thanks for your continuing postings on what's really going on in America.   

[sunseeker]

Yellowcaked/Onlooker.

Thanks to both of you for the good links/comments, and for keeping the posting momentum going.
Your efforts are greatly appreciated by yours truly.

ATB 

[sidewinder]

This can't be all good.  Too sick to even think about all the down stream effects. 

A federal judge in New York has breathed new life into the hoary "hot news" doctrine, holding that an online news service that specialized in obtaining information about stock recommendations by financial services firms and reporting them quickly both infringed the firms' copyrights by quoting too extensively from the recommendations, and violated the "hot news" doctrine by "misappropriation" of the fact that "buy" or "sell"  opinions had been expressed.

http://pubcit.typepad.com/clpblog/2010/03/the-hot-news-doctrine-rides-again.html

If you ask me the damn banks ought not to "leak" out the information to begin with.  Man, they want all the advantages and none of the risk or in other words "perfect no lose" trades everytime, everyway and if you figure out what they are doing the courts jerk a knot in your ass.  They already ruled basically the Corporations are people last year.  I guess they will rule that people are not people but widgets soon. 

[MetalMeister]

I'm going to side with Chanos' detractors, for now.

There is so much control within China that the rest of the world does not have.  They reserve the right to change their currency with respect to the US Dollar.  It does not truly float as other currencies do.  If times get tough, they can just lower the yuan's value back to near the 8 to 1 dollar and crush the competition.  Right now I think the yuan as of the other day I checked was about 6.63 to 1.  They hold a tight reign on it's fluctuation.

That is part of why the rest of the world is screaming at them to allow it to fluctuate.  They pretty much ignore the rest of the world and do what is in their best interests.

Since they have huge foreign reserves and can buy up natural resources around the world and have an extremely cheap labor pool, I just don't see anything catastrophic happening over there.

Could a little gas be let out of the balloon at some point?  Yes.

But a while lot of gas?  I don't think so.

There’s China to look at.  Bubble economy or not?  See:  http://www.nytimes.com/2010/01/08/business/global/08chanos.html

[Peter518]

The market may correct itself in the down side next week.

$NYSI has been rallying for 24 days, and last Friday was the first day in the red in this cycle.

[MetalMeister]

Isn't that the same thing as one of us directly quoting privileged stock trade information on one of Dines' recommended stocks?  Remember how much we used to worry about JDH or ourselves getting sued because of that very issue?

The word "leak" is not used in the link.

Would appear the fly on the wall obtained the information questionably "legally" but it's publishing that information does appear to be illegal.  Seems like their source should have been the real target not fly on the wall.  Probably a third party who received that information confidentially then spread it around to his friends so they could be on the insider trading before the market opened.  Then one of those friends said it within hearing distance of the fly on the wall.

Thoughts?

This can't be all good.  Too sick to even think about all the down stream effects. 

A federal judge in New York has breathed new life into the hoary "hot news" doctrine, holding that an online news service that specialized in obtaining information about stock recommendations by financial services firms and reporting them quickly both infringed the firms' copyrights by quoting too extensively from the recommendations, and violated the "hot news" doctrine by "misappropriation" of the fact that "buy" or "sell"  opinions had been expressed.

http://pubcit.typepad.com/clpblog/2010/03/the-hot-news-doctrine-rides-again.html

If you ask me the damn banks ought not to "leak" out the information to begin with.  Man, they want all the advantages and none of the risk or in other words "perfect no lose" trades everytime, everyway and if you figure out what they are doing the courts jerk a knot in your ass.  They already ruled basically the Corporations are people last year.  I guess they will rule that people are not people but widgets soon. 

[MetalMeister]

Tidbits that I missed in early March...

A bright idea!  Use public pension funds to buy failed banks:

http://www.bloomberg.com/apps/news?pid=20601109&sid=aDuLDy3OUFmg&pos=13

Gotta love them investment banks and banks in general.  Just follow the money.  Or lack of it"

http://www.bloomberg.com/apps/news?pid=20601109&sid=anl9vTKXKYyk

JPMorgan Chase & Co., Lehman Brothers Holdings Inc. and UBS AG  were among more than a dozen Wall Street firms involved in a conspiracy to pay below-market interest rates to U.S. state and local governments on investments, according to documents filed in a U.S. Justice Department criminal antitrust case.

[sunseeker]

“Jupiter financials star puts half his fund in cash”

http://www.portfolio.com/business-news/reuters/2010/03/29/jupiter-financials-star-puts-half-his-fund-in-cash

Gibbs, who made his name when a heavy cash position helped his financials fund turn a profit during the credit crisis, had 52 percent of the portfolio in cash as of end-February against 13 percent at the end of 2009, a factsheet showed.

Not everyone has been seduced into thinking that this market has been built on anything but shaky foundations.

Bears fight back....



ATB