70 Words

The Good, The Bad, The Ugly

02/17/2011

The Good: Fed lifted its GDP forecast for ’11 to a 3.4% to 3.9% band from 3.0%-3.4% based on minutes from Jan meeting. The Bad: Ongoing frustration with slow progress in the labor market compelled the Fed to say that…

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WWII Bull Markets

02/16/2011

The US has had two huge bull markets since the end of WWII; ’46-’66 and ’82-’00. Each time there was a positive shock to the economy. The 1st bull market resulted from baby boomers and the creation of the Interstate…

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Better Sentiments

02/15/2011

Consumer sentiment came in better than expected in Feb at 75.1 but the expectations component which leads spending growth fell to 67.6 from 69.3 in Jan and all the gains in consumer confidence were in the high income segment; soaring…

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Home Equity

02/14/2011

The fall in house prices and home equity have robbed fledging entreprenneurs of one of the most popular sources of funding; equity in their homes! This loss means fewer basement and garage start-ups in general and many fewer in the…

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Families in the Market

02/10/2011

I am quite bullish on the multi-family area of the market where demand is strong and strengthening and vacancy rates are declining. The apartment space looks good but as the homeownership rate continues to fall, the improvement in MF is…

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New Zealand Recession?

02/09/2011

New Zealand’s finance minister is suggesting his country could be on the precipice of a recession later this year & a flood-induced Q1 contraction in Australia seems assured. Inflationary pressures are building in emerging markets. Thus the need for interest…

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Sellin’ Outside the USA

02/08/2011

S&P 500 sales did quite well in Q4 — up 7.7% and ahead of estimates by a country mile. But, from what I see most growth in sales is coming from outside the USA! Here, revenues are growing at barely…

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MUNI BOND TRADE

02/07/2011

The AA+/AAA 20-year muni bonds are trading above a 5% yield. That means more than 7% on a tax equivalent basis for top US earners!!!! There have been a grand total of 54 bond defaults in the past 4 decades…

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HOUSEHOLD EMPLOYMENT

02/05/2011

If you were to pick just 1 item out of yesterday’s jobs report that accurately depicts the labor market, given the inconsistent messages, it would be the Household employment # on a payroll and population adjusted basis. It came in…

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TOO BIG TO FAIL

02/04/2011

Neil Barofsky, the Special IG for TARP put it well in his latest report: “perhaps TARP’s most significant legacy, the moral hazard and potentially disastrous consequences associated with the continued existence of financial institutions that are ‘too big to fail.’…

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