Multiple Threats
Ben Bernanke testified twice on Capitol Hill this week. “We are facing a situation where we have simultaneously a slowdown in the economy, stresses in financial markets and inflation pressure coming from commodity prices abroad,” he said. “Each of these things represents a challenge.” A...
What Is Google?
Shares in Google (GOOG) dropped almost 5% today, reaching their lowest point in almost a year. This is odd for two reasons. First, today was actually a good day for the stock market. It was also a good day for the technology sector, thanks to IBM’s announcement of a $15 billion stock buyback plan....
A Narrow Range
This week, I’m back from the Sunshine State. Florida was good to me. Sorry, no Disney World or Miami Heat games sans Shaq. It was just business this time around. Let’s talk about the market. Stocks have been moving sideways in a narrow range over the past three weeks. The January 22 lows...
Say Hello to Stagflation
As noted in Tuesday’s update, investors seem to be increasingly preoccupied with the prospect of inflation as well as economic slowdown. This troublesome combination, known as “stagflation,” is not pleasant for anyone. If you are old enough, think back to the early 1970s for an example...
PIMCO’s Bill Gross: Concerned
If you’ve been reading All Star Investor for long, you know how often we quote Bill Gross. Gross manages a mountain of money in Newport Beach, California at PIMCO, a company he founded in the early ’70s. He’s been known for periodic quips and insight on the current market. Today was...
A Plan for Social Security
I just read a terrific interview in Barron’s yesterday with Joe Rosenberg, Chief Investment Strategist at Loews, a New York conglomerate controlled by the Tisch family. Here’s the point blank question: What were his views on the government bond market? Response: “I see no value whatsoever....
Re-Testing the Lows – Is it Necessary?
There is chatter about a re-test of the January 22, 2008 lows. Mark Hulbert writes a nice article about the re-test theory and how many practitioners believe it. His analysis found that many newsletter writers are unwilling to declare the lows are in for the year, and how that is good! Hulbert is taking...
The Trio Testifies
Today’s Congressional testimony by Fed Chairman Bernanke, Treasury Secretary Paulson, and SEC Chairman Cox was the first time the heads of those three agencies appeared together since September 2001. Exactly what the appearance of this economic junta was supposed to communicate to the markets is...
Big Play on Inside Games: PENN
Penn National Gaming (PENN) offers a unique investment opportunity at current prices. They have a private equity buy-out on the table for $67.00 per share at something called a “fully financed” transaction led by Fortress Investment Group (FIG) and Deutsche Bank AG (DB).The terms of the deal...
AP Poll Says We’re In A Recession
61% of the public believes the economy is in recession. So, if the public knows, what does the stock market know? Isn’t the stock market well ahead of broad public sentiment? A market strategist at Bear Stearns says, “Stocks don’t do well because the economy or earnings are strong;...
