QVM Group

Emerging Markets Lead Global Rally

Uppai Mappla -- I agree that India is interesting and promising. This article, however, is about those country funds with price patterns that have begun to realize their promise. India has not yet, as of the date of the article, made that showing.

Tough Times for Dividend Investors

market ace -- let me clarify -- there is no intention to suggest limitation to US stocks by equity income investors. in fact the article said "the need to think an invest globally more so than in prior years". this was simply an article about the US stocks universe -- I also agree with THolfer that there are substantial income opportunities in US stocks well beyond the 2-3% you mention -- some from trusts as you mention and some from regular corporations -- note that my emphasis was on "conservative" end-stage equity investors, so it may be inappropriate to look at too many small or obscure equities for them -- conservatism by its nature trades some upside for some greater stability

Will China's Ideological Crisis Overwhelm Stimulus Spending?

Interesting article. Thanks

Here is a link to a Foreign Affairs Council article with a supportive theme:

www.foreignaffairs.com...

From the cited article:

Summary --

The financial crisis is challenging Beijing's ability to hold up its end of the deal with the country's elite, leading to a potential threat to the continued rule of the Chinese Communist Party.

It's a Winter Warming Spell - But More Snow Ahead for Markets

basehitz:

Good point. Not sure how to quanitify that or if the overall effect of corporations moving offshore will be material, but it's a good point.

It's a Winter Warming Spell - But More Snow Ahead for Markets

Steve Pasq:

That is an easy "what if". If the index composition changes and the price move differently as a result, I would change my opinion accordingly. But so far neither has happened.

Option Selection for Covered Call Writing

CIK:

Yes, you can place stop order on written calls. You are not correct saying that you cannot sell the stock before the call, unless the investor does not have full options authority. Your are correct that selling the stock before the covered, would convert it to a naked call, but that is not prohibited in general, but it only prohibited for those investors without full options authority.

Option Selection for Covered Call Writing

Oldman:

Yes you can sell the call before you sell the call if you have naked call writing authority. If you have a lower authority, you would be correct, you would not be correct for investors with full authorization.

Option Selection for Covered Call Writing

You can protect on the downside with stop loss orders on both the stock and the call. The call will fall in value if the stock falls and both can be closed by stop loss action (mental and automated).

Stock Markets Likely to Fall Further

max12345
600 S&P500 was my meaning

Stock Markets Likely to Fall Further

Jim Hawthorne,

Thanks for mentioning oil and copper, for example, which I have notice have begun to show some tendency to be flat or slightly rising as of late. However, it's too early to call a trend reversal in them. They may serve as leading indicators of corporate earnings improvements (short of an oil spike due to war of some catastrophe), because they would show increased demand for productive inputs. Input should tend to rise before the outputs convert to revenue and earnings.

Siegel vs. Standard & Poor's

E.D. Hart:

Worst case scenario is probably S&P 500 at 400.

Siegel vs. Standard & Poor's

Augustus:

P/E is important. The P/E today is too high. A low P/E and a falling price is not a good buy. A low or moderate P/E and a rising price is a good buy. That would be one point of the article, but there are others, such as the key topic, which is that S&P publishes reasonable, consistent and useful number, and Siegel does not publish historical data to support his claims. There are even more points, if you care to think about what you read.

Siegel vs. Standard & Poor's

AxelR:

Debate is useful and welcome. Declaring an argument to be "self-evidently right" is either a statement of faith or of arrogance, but it is not a logical argument. Only logical arguments are of use to readers. Perhaps you can share the reasons you find something "self-evidently right".

Richard Shaw

Jeremy Siegel's Silly P/E

I have written to S&P to request a clarification of the matter. If they respond, I will post the answer. More likely than an individualized response, they may prepare some kind of general public document for distribution. Today I have read over 50 comments here and there reacting to the article and it obvious that the exact calculation method is understood, or misunderstood, in widely different ways. Best to have S&P directly say exactly what they do and why they do it that way.

Parallels Between Stock and Real Estate Excess Valuation

345523:

Your point is interesting. We don't have to assume anything, but it could be useful to assume something. Given that return to mean is more probable than establishing a new mean, and given that the current level of housing appears to be unaffordable -- even before the crash (just look at all the communities worried about their children not being able to ever live in the town in which they live with parents due to high home prices).

You may be correct, but assuming that you are is no more valid than assuming you are not correct. In the context of asset deflation all around us and the better odds betting on mean reversion than a new paradigm, I would continue to be comfortable to say homes are overvalued, new space and technology standards or not. Regardless of culture, ability to make the purchase and leverage payments is always a limiting factor.