S&P 500 earnings in the tank

It’s been about a week since I posted an updated earnings report for the S&P 500, and there are a few new items. By far the biggest item is that S&P is now recognizing that Q4 earnings – well, there aren’t any.  This will be the first quarter ever where the 500 companies (which make […]

What a difference a year makes

Last January I was beginning to get tired of reading stuff like “kitchen sink quarter” and “this is a great time to buy real estate” and “this is the time to buy stocks”.  One evening I happened to read a post by Doug Kass entitled “Buy the Financials. Yes, Buy” in which he made a […]

Buy and hold is dead

I posted this in a MarketWatch.com comment a bit ago and decided it was worth putting here.  This post was in response to another comment about the importance of having a long term (10 years) time horizon when investing.  I disagreed.  🙂 Here’s the post: So if you put $100,000 into the S&P 500 10 […]

News Headlines on Friday

I thought the headlines on Friday were interesting.  There was ZERO good news about the economy, and all the economic and earnings reports were worse than expected.  But the stock market went up.  Makes no sense to me. Here are the top headlines from Reuters Business news as of 12:57pm (ET) yesterday. GM, Ford losses […]

The home sales up dirty little secret

It was all over the headlines yesterday – existing home sales rose 5.5% (seasonally adjusted) from August.  The median price dropped too – down 9% to about $191K.  Good news right?  It IS good news except for one minor detail absolutely no one reported.  Here it is straight from the press release that everyone’s story […]

Wow! What a ride!

The DJIA dropped another 675 points today, bringing it down to 8579.  Exactly one year ago, it was at 14,164 – its’ all time high.  Aren’t you glad you pulled all your money out of the market last year? What’s that you say?  You didn’t move to cash because you’re in this for the long […]

The return of Mark to Myth

Want to know the real reason financial stocks rose so much today?  The SEC loosened the accounting rule called “Mark to Market” today.  This accounting rule is blamed for the financial problems of banks and other financial institutions, because it requires companies to value assets on their books at the price they could actually bring […]

$700 Billion Bailout Fails in House!

There’s good news on the bailout bill – it failed to pass the House! I know the DJIA dropped immediately – but that’s a good thing.  The excess credit (and resulting excess debt) need to be wiped out before we can start the recovery.  Personally, I think we need to drop a lot more than […]

Financial Meltdown

I’ve got a lot more to say, but I was reading a story on the NY Times and this caught my attention: “It’s like having a fire in a cinema,” said Hyun Song Shin, an economics professor at Princeton. “Everybody is rushing to the door. You are rushing to the door because everyone is rushing […]

Economy of Bush

Here are the current top three stories in the NY Times Business Section as of 9:30pm ET, July 28th: Record Deficit of $482 Billion Forecast By ROBERT PEAR and DAVID M. HERSZENHORN 4:17 PM ET The White House predicted on Monday that the Bush administration would bequeath a record deficit of $482 billion to the […]