dr.doolittle

Sector Update as of November 8

interest rates were at 5% one year ago, now they're back at 1%, the rate at which everyone on Wall Street now says caused the chaos. Isn't it appropriate that Wall Street was the one that blew up, then? Having said that, outside of the "financial" class where's the recession? Perhaps more accurately, where's the "market" blow-up? By this I mean the actual trade in goods and services and the commensurate mass bankruptcies? Outside of the auto industry which simply overcharges for an inferior product and some retailers I still don't see it. On top of that, the government is spending like a drunken sailor--how does that tell you the appropriate way to run your business? Once the flow of goods stop then MAYBE we can call that a recession, although I don't see any invading Army on our border and coming for use anytime soon. Until then it seems that we're only in the process of price discovery and it appears to me "bailing out" perfectly healthy banks--and now a select few stocks are moving higher instead of all trending lower. Excepting what Pelosi and Reed are blabbing about, this all strikes me as extremely bullish in a "selective" way.

What's Happened to the Equity Risk Premium?

right on, pangea. stocks are "cheap" in the sense that their price has collapsed. in other words, where's the "p" in the "e"? "winning" the war on terror has always meant profiteering for wall street, which has been done successfully. Sorry that the business is no good, though!

No one has any clue about whether the market is "expensive" or "cheap." Is there demand for the product, though and can it get financed? The 90's was all about one thing: what are your plans for expansion. I see no reason to change that ethos. If a business is executing on its expansion plans, that's a business worth buying in here, especially since it's not just the American people but the whole industrialized world that's gone off the deep end relative to their politics.

Obama to the Rescue?

awesome! ask Kudlow where's the invite. I think you and everyone else misses the most obvious point: the government is already spending trillions. What more can it possibly do? I work for the US Postal Service. Trust me, we're minting money right now. So what can save us in your world view? I myself am voting for an invasion of Russia. What the hell, right? And with Barak and his millions of fanatical supporters, sound like great Waffen SS to me. Having said that, I've never seen a better time to buy. Your teeny-weeny England just slashed interest rates--and zero is on the way. Talk about behind the curve!

Indicator Update for November 3

great stuff. you da' man. barak obama is in and the most worthless repubican presidential candidate in American history just got his ass handed to him. who knows, maybe that ignorant meathead will do the honorable thing and successfully hang himself this time. as for the markets, i'm very interested in this decline in oil, especially relative to the price of natural gas. it seems to me this economy is in fact exploding with growth and the "McCain collapse" is over. will the extraordinary value of natural gas cause oil to fall further? what is the psychology behind high oil prices? (clearly it's neither supply nor demand!)