And after we consider the impact of the credit boom on S&P 500 earnings we’d say that corporate earnings are never going to be the same again. They may revert to the mean. But it will not be nearly as high as it was at the highs of the credit boom. It’s undeniable that the expansion of the credit bubble and the advent of securitisation and derivatives led to…
July 28th, 2009 | Dan Denning | 13 comments | ContinuedAll Posts Tagged With: "S&P"
There is More to Wealth than Money
Taleb’s point is not a popular one. But it is a realistic one. The fiat money, leveraged finance Western financial system went global in the last twenty years, providing an epic rise in asset prices (and the debt used to purchase them). There’s no doubt that real goods and services have traded hands with world growth.
July 3rd, 2009 | Dan Denning | 9 comments | Continued
Rosenberg Let His Clients Know He Thought the Sucker’s Rally Was Over
“Risk is much higher now than it was 18 weeks ago,” Rosenberg wrote. ” The nine-week S&P 500 surge from 666 at the March lows to 920 as of yesterday has all but retraced the prior nine-week decline from the 2009 peak of 945 on January 6 to the lows on March 9.
May 14th, 2009 | Dan Denning | 6 comments | Continued
A Credit Depression
You don’t need to own subprime loans to take loan losses in a credit depression. Smith said the area that concerned him most was the surge in small and mid-size businesses simply closing up shop unexpectedly. “In the real economy,” he said, “there is no evidence that the world economy is yet bottoming.”
April 30th, 2009 | Dan Denning | 5 comments | Continued
S&P Ends Six Week Run
What a battler that Dow is. It’s got nothing on the S&P 500 though. The S&P is up 28% in the last thirty three trading days. It hasn’t done anything like that since the 1930s. However the index did close down for the week. That broke a six-week run of gains. One more note about that. Four-week winning streaks of ten percent are more are generally followed by much smaller gains or losses over the next four weeks…
April 27th, 2009 | Dan Denning | 3 comments | Continued
Recovery for the Real Estate Market
Sure, we’re not out of the woods yet, not by any stretch of the imagination. But facts are facts, and the recent market action bears that out: We’re moving in the right direction… especially in one of the most important sectors – real estate.
April 9th, 2009 | The Daily Reckoning | 8 comments | Continued
The Problem With a Well-Diversified Portfolio
But of course, it’s not in the interests of fund managers to promote such a strategy. They want to convince you that managing investments is too hard for the average punter – leave it to them, your money will be safe in their hands… No thanks.
March 19th, 2009 | Kris Sayce | 7 comments | Continued
A Time of Contradictions, Paradoxes and Oxymorons
The socialists are the only ones protecting the free market, now. Americans are scuttling it with every chance they get. The stocks of capitalist companies are going up in communist China…but in America, they’re going down. Since November, the Shanghai index has outperformed the S&P by 75%.
March 6th, 2009 | Bill Bonner | 2 comments | Continued