I don’t comment about the stock market very often, but something isn’t right. Take a look at the chart below. The S&P 500 is in red, charted on the left axis. Corporate bond spreads are blue and are inverted on the right hand axis. Thus when the blue line “falls” that should mean the economic picture is deteriorating.
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good post on the pitfalls of trying to find a good coach / mentor…
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More TAF coming up, 50% more money for available.
The Federal Reserve will conduct two auctions of 28-day credit through its Term Auction Facility (TAF) in January. It will offer $30 billion in the auction to be held on Monday, January 14 and $30 billion in the auction to be held on Monday, January 28….
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Via Creditflux
In a move to increase trading opportunities in the CMBX indices, Markit added an AJ tranche to all vintages of the CMBX indices beginning today. The tranche is the most subordinate of the triple A rated tranches. It is already on the on-the-run CMBX series 4 index but the new tranche was added to the off-the-run CMBX1, CMBX2, and CMBX3 indices. …
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Citadel Investment Group LLC gained 30 percent in 2007, and has reached $20 billion in assets.
In 2006, Citadel also topped 30 percent, helped by energy bets after it took over some assets from Amaranth Advisors LLC, which imploded in September 2006.
Story here
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Words have the power to both destroy and heal. -The BuddhaIn thinking about where the economy, Fed, and markets will be going in 2008, I find my thoughts dominated by considerations of liquidity. Readers have heard me use the term “liquidity crisis” or “credit crunch” during 2007, but have rarely (if ever) seen me use “credit crisis” or “solvency crisis.” This is purposeful.Why do I avoid calling this a credit or solvency crisis? Surely I am not here to downplay the problems we’re having in residential lending, or even consumer finance in general. I hardly need to enumerate the many problems in consumer lending. I think mortgage foreclosures will break all records in 2008, probably by a long shot. In addition, other types of consumer lending have and will suffer as well. Consumers have been using equity in their homes to help bail them out of other types of debt for many years, but in 2008, this option will be largely unavailable. The result will be weak performance in everything from auto loans to credit cards….
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Dead on target on the first day of the New Year, Byron Wien again published his annual list of surprises to expect in the coming year. Wien, chief investment strategist of Pequot Capital, has been publishing his list of economic, market and political surprises since 1986.
Reviewing Wien’s 2007 list, he got about half of his predictions right.
He [...]
Please visit my website (by clicking on the heading above) for the full article, as well as other interesting investment snippets.
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There appear to be both long-term and short-term connections between the U.S. national election cycle and stock market performance, with presidential term year 3 (1) the best (worst) and a tendency for a brief election-time rally. However, the subsamples for presidential term year analysis are very small, so confidence in related tendencies is very low….
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When arguments can be made that 130/30 investing and portable alpha are cousins, why then has 130/30 become the cat’s meow and portable alpha growth is “muted”? Two academics have a theory….
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