Pick of the Week: Cash Is King
“When in doubt, stay out!” Such is the market situation today. A couple of weeks ago we recommended our first short position. Today, we’re making our first recommendation to stay out of the market. We think cash is the best option for a portion of your portfolio. But not all ‘cash’...
AIG to the Market: Can You Spare a Dollar?
AIG: “Hey Buddy – Can I bum a dollar?” The World: “Get lost, Loser!” We’re witnessing a sad event. Here we have a giant insurance company, American International Group (AIG), going hat-in-hand to the banks of the world. Having filled their books with mortgage-backed...
Banks Get Bit in “Once In a Century Event”
Yesterday, former Fed Chairman Alan Greenspan made an appearance on This Week with George Stephanopoulos. Since he retired, Greenspan has become increasingly vocal as the mortgage crisis has grown. He uttered something more ominous than assuring on ABC when he said, “First of all, let’s recognize...
Interview with the Chicago Tribune: My View of the International Markets
I was recently contacted by the Chicago Tribune for a story they were preparing on international investing. Below are the questions they posed along with my responses: ——– Has the lure of international investing suffered any lasting damage, or is this a passing difficulty? No, there...
Long Live Big Foot: Another Conspiracy Theory
A conspiracy is afoot in this fair land, but this time it’s not from the woods of northern Georgia. Chicago-land boasts the latest out-of-the-mainstream idea, but it has nothing to do with Sasquatch. Neither is there a monster swimming in the depths of Lake Michigan, but there is a monstrous apparition...
Google Clicks Torpedo UAL Shares
UAL shares suddenly plunged -25% Monday morning after a news item appeared on Bloomberg screens that they were filing for bankruptcy. The problem with the “news” was that it was a headline and complete story from way back in 2002. Apparently Tribune Co’s South Florida Sun Sentinel’s...
A Contrarian View: The Greatest Mirage Since the Great Depression
—From our Special Guest Contributor— There is a lot of confusion in the markets recently and a lot of uncertainty on the state of our banking industry. Many investors are scratching their heads trying to figure out exactly what certain financial stocks are worth. What the economists,...
Something Brewing Upstream
The stream of bad economic news quickened last week, leading many to believe a flood is building somewhere upriver. On Sunday, the flood seemed to be confirmed as it was announced the Feds would buyout the virtually-defunct government sponsored enterprises (GSEs) Fannie Mae & Freddie Mac. We are...
Jobs, Stocks, & Gross: What’s Going On Out There?
If you’re watching the market, you know there’s a few things going on. Trying to digest all the data points is difficult. Nevertheless, we still try. Instead of expanding one theme today, we’ll take several snapshots of the market. We hope to give you an overview of your money at work...
Lessons
Another hedge fund blew up yesterday. Ospraie Management LLC, a fund run by a guy with lineage to Julian Robertson’s Tiger Management shop and a few years with the world famous Paul Tudor Jones firm, had a “large” drawdown last month. An extremely bright gentleman named Dwight Anderson...
