Fed Intervention And The Market: A New Update [View article]
It's an effort to drive yields lower as a means to lower interest rates in general (e.g., apparently the Fed doesn't think the current 30-year fixed rate mortgage of at 4% is cheap enough).
Here is a verbatim quotation from the Fed's website on operation twist:
"By reducing the supply of longer-term Treasury securities in the market, this action should put downward pressure on longer-term interest rates, including rates on financial assets that investors consider to be close substitutes for longer-term Treasury securities. The reduction in longer-term interest rates, in turn, will contribute to a broad easing in financial market conditions that will provide additional stimulus to support the economic recovery."
You've nicely summarized the opposing views. As someone who has been following the market for several decades, I'm skeptical that intangible values have increased significantly over time. Ford had intangible assets in the 1930s. So did IBM -- both with us today -- as did RCA, which has long since lost its distinct market identity.
Perhaps "intangible" book value has some merit, however slight. On the other hand, perhaps "intangible" book value is in fact "not tangible" in the world of valuation.
GDP Q3 Advance Estimate: 2.5 Percent [View article]
WestCharlie, Today's 2.5% was the real GDP (inflation-adjusted with the GDP deflator). Nominal GDP (without the deflator) was 5% (5.04% to two decimal places).
Economists' GDP Forecasts: 2.1 In Q3 And 2.0 In Q4 [View article]
Hypnos7, actually that's a good question. The headline GDP number from the Bureau of Economic Analysis (BEA) is for real (inflation-adjusted) GDP. In fact, the BEA calculates its own deflator to make the adjustment.
The economists surveyed by the WSJ understand that their forecasts are judged on how close they are to the real GDP numbers of the BEA. So, yes, they are making real GDP forecasts.
I've alerted the SA editorial team that they have posted charts from two weeks ago with this commentary. For the correct charts, see the original on my Advisor Perspectives website: http://bit.ly/nJLfB3
Seeking Alpha has erroneously posted a old chart for this commentary. The correct chart, updated daily, is available on my website: http://bit.ly/o5IvXR
World Markets Weekend Review: Deeper In The Red [View article]
I've asked the editors to make the correction.
Inflation: A Five-Month X-Ray View [View article]
However, as I've pointed out elsewhere, individual households can have very different exposures to inflation. More here:
http://bit.ly/tFrjJa
Fed Intervention And The Market: A New Update [View article]
CBOE Interest Rate 10-Year T-Note
http://yhoo.it/sbkK1t=^TNX <= copy the link and paste
30 Year Treasury Yield
http://yhoo.it/sbkK1t=^TYX <= copy the link and paste
I follow mortgage rates here:
http://bit.ly/uGibr3 (weekly)
http://bit.ly/tieEP4 (daily)
Fed Intervention And The Market: A New Update [View article]
Here is a verbatim quotation from the Fed's website on operation twist:
"By reducing the supply of longer-term Treasury securities in the market, this action should put downward pressure on longer-term interest rates, including rates on financial assets that investors consider to be close substitutes for longer-term Treasury securities. The reduction in longer-term interest rates, in turn, will contribute to a broad easing in financial market conditions that will provide additional stimulus to support the economic recovery."
The Q Ratio And Market Valuation [View article]
Perhaps "intangible" book value has some merit, however slight. On the other hand, perhaps "intangible" book value is in fact "not tangible" in the world of valuation.
Forecasting the Market: A Thought Experiment Revisited [View article]
The Q Ratio And Market Valuation [View article]
http://bit.ly/rR8Gdc
Flat Friday Caps A Fine Week On The S&P [View article]
GDP Q3 Advance Estimate: 2.5 Percent [View article]
Economists' GDP Forecasts: 2.1 In Q3 And 2.0 In Q4 [View article]
The economists surveyed by the WSJ understand that their forecasts are judged on how close they are to the real GDP numbers of the BEA. So, yes, they are making real GDP forecasts.
The Tuesday 2% [View article]
http://bit.ly/nJLfB3
S&P 500's Standstill Tuesday [View article]
3-Day Rally Ends For S&P 500 [View article]
http://bit.ly/nNUpHl
3-Day Rally Ends For S&P 500 [View article]
http://bit.ly/nJLfB3
Note: Unless traveling, I overwrite these charts virtually every market day with the latest data.
Weekly Unemployment Claims: Good News, Down 37K to 391K [View article]