Mar 13, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions


Stock Investor Sentiment: Few Words Needed

Posted: 13 Mar 2010 10:19 AM PST

With 3 out of 4 of our measures registering extreme readings, few words are needed to describe investor sentiment this week.

The “Dumb Money” indicator, which is shown in figure 1, looks for extremes in the data from 4 different groups of investors who historically have been wrong on the market: 1) Investor Intelligence; 2) Market Vane; 3) American Association of Individual Investors; and 4) the put call ratio. The “Dumb Money” indicator has turned bullish to an extreme degree. Extreme … [visit site to read more]


The Potential Damage Of The Greek Crisis

Posted: 13 Mar 2010 10:01 AM PST

My main focus on the Greek crisis is how it will impact the global economy, and especially the United States, but nobody covering this issue can avoid the morality lessons.  First, Greece borrowed too much.  That’s bad.  Second, Greece cooked its books to conceal the magnitude of its deficit spending.  That, too, is bad.  Third, other European countries knew that Greece was doing this, but ignored it so as not to embarrass them or weaken the European Monetary Union.  That may have … [visit site to read more]


The Upsides And Downsides Of The Great Recession

Posted: 13 Mar 2010 09:38 AM PST

While it may not be obvious at the time, a dramatic change in economic circumstances can have its upsides and downsides.
On the upside, because fewer people can afford to drive, the number of people who die in traffic accidents is falling. According to preliminary data from the National Highway Traffic Safety Administration, both the number of fatalities and the fatality rate hit record lows in 2009.

On the downside, more people are apparently trying to scam insurers to make up for what … [visit site to read more]


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