I read an interesting article called “Global capitalism teeters on the brink.” Let’s listen in on some highlights: The U.S. central bank is slashing interest rates, accepting piles of near-worthless securities from commercial banks as collateral for emergency loans, and pumping hundreds of billions of dollars into the economy. A problem that began last summer in the lowest-grade U.S. mortgage …
No Load Fund/ETF Tracker updated through 3/20/2008
My latest No Load Fund/ETF Tracker has been posted at:http://www.successful-investment.com/newsletter-archive.phpThe Fed’s oiling of the markets via lower rates and a new lending structure gave the bulls the upper hand. Our Trend Tracking Index (TTI) for domestic funds/ETFs remains now -0.36% below its long-term trend line (red), which means we are in bear market territory. The international index dropped to -8.78% …
Where’s The Bull?
Bullish hopes were dashed yesterday when the markets did not follow through to the upside, but meandered downward with the Dow losing almost 300 points. My contention has been all along that any intervention from the Fed or any government sponsored plan may evoke feelings of market euphoria, which will be short lived since the underlying issues of the Subprime/housing …
Lift Off
Wall Street got almost all it was looking for from the Fed yesterday. A 75 bps reductions in rates was not quite the hoped for whisper number of 100 bps but good enough to send the markets into orbit in a repeat performance of last Tuesday. Whether this exuberance will last is an entirely different question. Fundamentally, nothing has changed …
Will The Fed’s New Loan Facility Work?
The Fed last week introduced another scheme called “Term Securities Lending Facility,” which allows it to lend to securities dealers on top of funds already injected in the system. I am losing count, but it appears to be the third attempt in the last few months to get a handle on the credit crises. Bill Fleckenstein reflects on this latest …
Too Big To Fail?
The biggest news item last Friday and all weekend has been the collapse of Bear Stearns after their stock value got sliced in half. Had it not been for the intervention of the Fed via JP Morgan, the markets would have tanked big time. To me, it was a clear case of a company being to big to let go …