Charlie Stromeyer Jr

On Ben Graham, Bank Stocks, Jason Zweig and Tom Brown

I like this piece, and have a question:

A popular trade in Brazil about a month ago was to go long the preferred shares of Petrobras while simultaneously shorting the common shares. This was a very successful trade, but would it qualify as a "related hedge"? Thanks.

Disclosure: I engage in related hedging, trading Brazilian equities, and am long many financial companies but few here in the U.S.

Jason Zweig on Graham and Bank Stocks: 'The Un-Intelligent Investor'

najdorf, please read this piece on why economists look at the prices-to-rents ratio:

www.frbsf.org/publicat...

Jason Zweig on Graham and Bank Stocks: 'The Un-Intelligent Investor'

Sorry, I made a typo. Actually, the total credit default swap (CDS) market doubled in size every year from 2000 to 2007 (which doesn't include the growth of the total collateralized debt obligation (CDO) market.)

Jason Zweig on Graham and Bank Stocks: 'The Un-Intelligent Investor'

Good article, and here is a question:

Do you happen to know if Graham ever invested during a massive credit crunch? For example from 2002-2007 credit derivatives grew about 5X, and also Libor/OIS spreads are now higher than they were in March 2008. Would Graham have known that stocks historically bottom before the credit markets bottom?

Additionally, I can think of about 11 reasons home prices should continue lower but you don't have to take my word for why they should go lower - you can just look at what futures on home prices are pointing to.