Don?t Give Me the Facts, Give Me Something I Can Understand

originally published on Wed, 10 Mar 2010 10:15:42 -0500    submitted by system 2 minutes ago

Here?s the opening of a fascinating article on cognitive fluency from the Boston Globe: Imagine that your stockbroker - or the friend who?s always giving you stock tips - called and told you he had come up with a new investment strategy. Price-to-earnings ratios, debt levels, management, competition, what the company makes, and how well it makes it, all those considerations go out the window. The new strategy is this: Invest in companies with names that are very easy to pronounce. This would ...

Shanghai Life and How to Print Flyers Cheap

originally published on Tue, 09 Mar 2010 20:16:18 -0800    submitted by system 2 minutes ago

© madtpt Life in Shanghai is what you make it. Most big cities are like that. If you let it, a job in most cities will eat your life. If you can set clear boundaries between what's professional and what's personal you can maintain the balance in your life - do a job well and still have time for some sort of private existence. Sometimes your professional life and personal life do manage to overlap, though. And that can be okay. I recently needed ...

139-year monthly database for the U.S. stock market

originally published on Wed, 10 Mar 2010 16:00:23 +0000    submitted by system 31 minutes ago

For the past 42 years, Bob Bronson (BRONSON CAPITAL MARKETS RESEARCH) has applied a disciplined, analytical approach to understanding and forecasting capital markets and advising investment advisors. Through his rigorous analysis of capital markets and economic data and his background in mathematics and financial economics, he has developed a number of unique investment concepts and [...]

Wholesale inventories unexpectedly falls and I/S ratio now at record low

originally published on Wed, 10 Mar 2010 15:22:07 +0000    submitted by system 31 minutes ago

Jan inventories at the wholesale level unexpectedly fell by .2% vs a forecasted gain of .2% and Dec was revised lower by .2 of % pt to a decline of 1%. Durable good inventories fell across the board, in autos, computers and machinery partially offset by a rise in nondurables, led by groceries. Auto wholesale [...]

Genius!

originally published on Wed, 10 Mar 2010 15:16:04 +0000    submitted by system 31 minutes ago

This is dead pan brilliance: Maritime Ship Construction and Environmental Concerns Back to work!

Maritime Ship Construction and Environmental Concerns

originally published on Wed, 10 Mar 2010 15:00:39 +0000    submitted by system 31 minutes ago

Dead pan genius!: ~~~ Reminds me of earlier Bird & Fortune videos: ? Banking with Bird & Fortune ? Silly Money, Part 1 & 2 ? How the markets really work, Subprime Crisis

Arthur Cashin, UBS on Market Volume

originally published on Wed, 10 Mar 2010 14:47:08 +0000    submitted by system 31 minutes ago

A countdown to the opening bell, with Arthur Cashin, UBS Financial Services director, floor operations. Airtime: Wed. Mar. 10 2010 | 8:50 AM ET

Dominant US Burger Chains

originally published on Wed, 10 Mar 2010 14:00:31 +0000    submitted by system 31 minutes ago

From Weather Sealed, we get this terrific map of the 8 largest American burger chains: > click for ginormous map > Hat tip Flowing Data

China today comes back into focus

originally published on Wed, 10 Mar 2010 13:30:39 +0000    submitted by system 31 minutes ago

With the Greece fire out for now and earnings season over, the other factor that was a catalyst for the near 10% correction in stocks late Jan into Feb, China, becomes a focus again. With speculation building that China may soon raise interest rates, they report their CPI tonight. Ahead of it, Feb exports rose [...]

Reaching, Once Again, For Yield

originally published on Wed, 10 Mar 2010 12:18:07 +0000    submitted by system 31 minutes ago

?People are starving for yield because rates are at zero. They?re taking more risk than they think.? -Paul Tramontano, Constellation Wealth Advisors, > One of the factors that caused the great credit crisis to spread far and wide was the reach for yield. This is one of the most expensive ways a fixed income investor can obtain a [...]

COMBINATION FORECASTS

originally published on     submitted by system 43 minutes ago

There is a long history in financial economics of documenting some degree of predictability in asset returns. So why aren't investors doing a better job of earning a risk premium? Is it because the prediction variables aren't so useful after all? Or maybe the evidence showing support of earning higher risk premiums requires looking at longer periods than is the norm. Another possibility is that investors overall are incapable of mustering the emotional discipline required for exploiting forec...

A FED HEAD'S SOBERING ANALYSIS OF THE LABOR MARKET

originally published on     submitted by system 43 minutes ago

We've heard this before but we need to hear it again. Today the message comes from Charles Evans, president of the Chicago Federal Reserve Bank. "A number of labor market issues? lead me to think this accommodation will likely be appropriate for some time," he said in prepared remarks delivered at a speech in Washington. In other words, the central bank will keep interest rates low for the foreseeable future. The lack of job growth is the main catalyst. How long will the easy money last? "I t...

Entrepreneurship by music

originally published on     submitted by system 1 hour 15 minutes ago

AIG to sell Alico unit to MetLife for $15.5 billion - Mar. 8, 2010

originally published on     submitted by system 1 hour 15 minutes ago

Real World Evidence for the Laffer Curve from the Government of Washington, DC | Cato @ Liberty

originally published on     submitted by system 1 hour 15 minutes ago

Happy Birthday Mr. Bull!

originally published on Tue, 09 Mar 2010 10:29:58 -0500    submitted by system 1 hour 35 minutes ago

On the first anniversary of the bull market, E.S. Browning looks at the valuation debate between economists Robert Shiller and Jeremy Siegel. Not surprisingly, Dr. Shiller thinks the stock market is expensive and Dr. Siegel thinks it?s cheap. Both men have held their positions for quite some time. For the last decade, Shiller has clearly won the debate (while Dr. Siegel has made some sloppy mistakes). Despite Shiller?s accuracy, I?m skeptical of his methodology (after all, a person can be ri...

Projections for Nicholas Financial

originally published on Tue, 09 Mar 2010 12:51:06 -0500    submitted by system 1 hour 35 minutes ago

This chart below is perhaps the clearest reason why I find Nicholas Financial (NICK) such a compelling buy right now. This shows the company?s pre-tax profit (in millions) along with the provision for credit losses. What you see is just how damaging the credit loss provisions have been. I think it?s interesting that when you combine the two, you can see that NICK?s business appears to be fairly stable. You can also see that the credit loss provisions are declining rapidly. If they get back t...

TFB Invitational Update ? March 2010

originally published on     submitted by system 2 hours 50 minutes ago

Back in January I created a virtual trading game on Investopedia called TFB Invitational. 13 other people joined me in this game. Two months into the game, Im surprised to see that Im currently in first place. My virtual portfolio is up 3%. I made two purchases, both profitable (so far), one for a US stock ETF, another for an international stock ETF. Right now Im 50% in stocks, 50% in cash. Most participants have not made a single trade yet. Maybe they are waiting for that double-dip. If ...

We May Be the First to Not Inherit a Better Future From Our Parents

originally published on     submitted by system 2 hours 50 minutes ago

"We are clearly on an imprudent and unsustainable path, and we need to change course very soon if we want to recapture our future." - David Walker, President and CEO of the Peter G. Peterson Foundation, 3/9/10 There is a good chance that my generation (those born from 1970 - 2000) will be the first generation in American history to not inherit a better future from our parents. You may think that this is nonsense and that I am suffering from deficit hysteria or that I have some political ag...

Easter Baskets ? Some Frugal and Inexpensive Ideas

originally published on     submitted by system 2 hours 50 minutes ago

If youve been in any stores lately, youve most certainly noticed all the displays of Easter related items including candy, bunnies, and of course, Easter baskets. Ive shared previously how I make our own Easter baskets. I wanted to share with you some ideas that our readers had: Patricia writes that she made Easter baskets for her daughters using plastic canvas and wool. The benefit of this type of basket is that they are washable! She also mentions that having a smaller basket made i...

Fed called Western housing ?largely stable"

originally published on     submitted by system 2 hours 50 minutes ago

FRB: Beige Book--San Francisco--March 3, 2010 FRB: Beige Book--San Francisco--January 13, 2010 The Fed?s San Francisco unit noted housing in the West is ?appeared to be little changed on net? in its 2nd ?Beige Book? of 2010. This is a Federal Reserve Board report on regional economic conditions that?s done eight times a year. In January, the Fed called Western housing ?largely stable.? (Note: Note that 2009 started with the Fed calling the region?s housing ?feeble.?) LATEST: The Fed?s n...

Socially Responsible Investment and an Improving Market

originally published on     submitted by system 2 hours 50 minutes ago

Wojciechs Notes: This is a guest post from Ann Logue, author of Socially Responsible Investing For Dummies (aff.). Thanks to her generosity, I had a chance to read her newest book last week. She is the author of three Dummies series books, and of multiple articles in high-profile publications. Its truly an honor to be hosting her on the blog today. First, a few words about Anns book. I honestly did not know what to expect when I heard about the concept of socially responsible investing, b...

Lone Star Puts Korean Bank Back Up for Sale

originally published on     submitted by system 2 hours 50 minutes ago

The private equity fund Lone Star LS.UL plans to resume selling a $3.9 billion majority stake in Korea Exchange Bank, KEB said, in what would rank as South Korea's biggest banking deal to date, Reuters reported. ...

Two Thousand One Hundred Forty Two Reasons You Should Check Out NetQuote

originally published on     submitted by system 2 hours 50 minutes ago

That?s how many of your fellow readers checked out NetQuote last year after reading about it here at The Wisdom Journal. That?s a lot of people! One reader even took the time to email me about how much money he saved on his homeowners insurance using their service. And what exactly IS NetQuote? Think of it as the Grand Pooh-Bah of insurance sites that helps you keep money in your pocket. How? They collect quotes from many different insurers, all high quality and reputable, and then funnel th...

The Lamest Argument Against Index Funds

originally published on     submitted by system 2 hours 50 minutes ago

I totally get why some in the financial media hate writing about index funds: theyre easy to explain, theres no amazing fund manager behind them, and the story generally stays the same over time. In essence, theres only so much to say about index funds. They work. You cant over-analyze and constantly produce content about them, like you can when stock picking. But this latest argument is just lame. And incredibly lazy. Courtesy of The Street (specifically Stan Luxenberg): Index Funds Are...

Cancer Therapeutics: The Jury's Still Out on Pixatrone

originally published on Wed, 10 Mar 2010 02:31:26 -0500    submitted by system 8 hours 35 minutes ago

David Greene submits:With the announcement after yesterday's market close that Abbott Laboratories (NYSE:ABT) is buying Facet Biotech Corp. (NASDAQ:FACT) for approximately $450 million in cash or $27/share - a nice 67% premium to yesterday's closing market price - the focus will be on other potential targets for acquisition. Abbott said the Facet Biotech acquisition expands the company's access in immunology and oncology. The compounds include daclizumab that is expected to move into Phas...

China's Housing Bubble Spells Trouble

originally published on Wed, 10 Mar 2010 02:59:54 -0500    submitted by system 8 hours 35 minutes ago

Rob Abbanat submits: I am loath to rent. I just can’t stomach the idea of paying for someone else’s mortgage. When I first arrived in China back in 2006, I fully intended to buy property once I got the lay of the land. But when I started looking, I quickly realized that residential real estate was pricey, even by Boston standards. And since then, it has only gone up. Conversely, rents are very reasonable and have increased only modestly. Renting here always seems to make more sen...

China Prepares to Transform the Gold Market

originally published on Wed, 10 Mar 2010 02:56:44 -0500    submitted by system 8 hours 35 minutes ago

Peter Cooper submits: The inscrutable Chinese are hardly likely to inform the world that they are on a gold buying spree for fear of sending the gold price through the roof before they can finished their acquisition plans. China’s gold reserves amount to 1,054 tons, ranking fifth in the world, said Yi Gang, central bank vice governor on Tuesday. China is the largest gold producer in the world, with more than 300 tons of gold produced annually, all of it consumed locally and not exporte...

Why M2 Isn't Telling the Whole Story of Broad Money Creation

originally published on Wed, 10 Mar 2010 02:52:42 -0500    submitted by system 8 hours 35 minutes ago

The Hedonic Calculus submits: By now, it's likely you've seen this chart of M2 as justification for why we're not seeing inflation in the economy: Complete Story »

Telecom ETFs: What's Driving PTE?

originally published on Wed, 10 Mar 2010 02:49:42 -0500    submitted by system 8 hours 35 minutes ago

ETF Database submits: This year has not been kind to telecommunication ETFs, as increased competition for existing users has begun to weigh heavily on the sector. In addition, growth opportunities, which long have been a hallmark of the telecom industry, appear to be drying up. According to a new report, two-thirds of all people on earth now use a cell phone, and prices have dropped more than 15% since 2008. While a decline in costs is good news for consumers, funds in the communications ETF...