No one seemed to questioning the vicious buying of Bank of America (BAC) and Citi Group (C) on a Wednesday where stress test leaks suggested the two banks will need an additional $35 billion and $50 billion of common equity. Does the transparency of major U.S. banks' financial needs warrant the KBW Banking Index's gain
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Speculators placed bets against disease fearful consumers during pre-market trading but confidence re-emerged as markets opened and earnings from Humana (HUM), Whirlpool (WHR) and Corning (GLW) beat estimates. Predictions from most corporations and analysts leading into 2009 Q1 were unrealistically low, causing many firms to beat estimates this earnings season. Each time a major corporation reports another “earnings beat” the confidence of bulls increases parallel to the complacency of bears.
The proof may be in the pudding but the pudding isn’t earnings season… The equity market will show its true colors as it faces hard economic data without “better than expected earnings” contributing to the euphoric aura surrounding current market projections.
The United States has lead the global economy throughout this downturn and the U.S. equity market is scrutinized as a forward indicator of global economic health. In early April a survey cited CEO confidence in the market for the remainder of 2009. Two thirds of industry leaders surveyed saw further weakness in sales and further
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Wells Fargo pre-announced earnings for Q1 2009, beating analysts expectations by nearly 50%, sending the financial sector and broad US equity markets higher. Let's take a step back and try to reach deep within ourselves for something we haven't grasped in a while… PERSPECTIVE . The current rally is the result of short positions that
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Excluding the bottomless pit of Wall Street executives now tarred and feathered to satisfy the constituents of the "blameless" U.S. congress, the Big Three automaker CEOs rank second as they were publicly chastised for their own inadequacies. While much blame has been rightfully bestowed on Ford, GM and Chrysler for declining from market dominators to
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The mass of unanswerable questions facing investors navigating this market are nothing less than maddening. Will the economy depreciate back to its lows after such a strong rally? Will the Treasury plan to buy distressed assets help or hurt banks? Yet it is the most pivotal query, concerning when the housing market will recover, that
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Love the fear… ignore the hype. Now is the most crucial time, if there ever was one, to not believe the hype. When no one understands why good companies are basement bargains is precisely when to get long major indexes and sectors that will work given the environment. Bernanke spoke of the banking system again
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An objective stance and pursuit of clarity in a murky marketplace. The beckoning of independent thought and debate so as to better the perspective of all. The mating grounds for thought and criticism, sparing no room for the noise of complacency or sheepishness. Open, honest, "gratuit". The revolt of independent minds grounded in market analysis,
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