Abnormal Returns

Emerging market bonds had a good July.  (BusinessWeek) Emerging markets are catching up on yet another measure:  dividends.  (WSJ) Not every Western consumer products company can win in the emerging markets. (Lex) Investors continue to show confidence in the emerging markets as they mature and develop.  (AR Screencast) High yield bond funds continues to see inflows.  (Distressed Debt...
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Last night we did a solo show focusing on our ideas about what has been happening in the economy and market post-crisis.  We focused specifically on the growing schism between corporate America and Main Street and why markets seem to all be trading in unison. Below you can find the broadcast embedded and the links...
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A look at the range-bound S&P 500.  (VIX and More also Bloomberg) Doug Kass, the market is facing “crosscurrents aplenty.”  (TheStreet) Bruce Berkowitz likes Morgan Stanley (MS).  (WSJ also InvestmentNews) Dr. Copper is back.  (MarketBeat) Now that the Baltic Dry Index is rising, no one is talking about it.  (The Money Game) What Ned Davis Research likes right now. ...
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Companies are raising dividends, but continue to hold big slugs of cash.  (Crossing Wall Street, ibid) No matter how you look at it earnings surprises (and guidance) look strong.  (Bespoke, ibid also Markets Blog) Still no reversal in the number of bears.  (Bespoke) Are ETFs the cause of rising stock correlations?  (FT Alphaville) “ETFs and high-frequency traders simply...
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How closely is the market paying attention to rising earnings estimates?  (Crossing Wall Street, Horan Capital) The breadth rebound is pushing towards overbought levels.  (Bespoke) Time to rebalance your portfolio.  (market folly) A graph that shows just how little yield there is out there.  (EconomPic Data) Testing the idea that moving average systems have stopped working of late. ...
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Did the financial crisis, and the subsequent economic recession, make us forget the underlying changes in the nature of corporate America’s earnings? We started answering this question in our screencast earlier today as we discussed the growing gap between how professional investors and individual investors view the market.  This Bloomberg article notes that while institutional...
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Institutions are bullish while individuals stay bearish.  (Bloomberg, The Technical Take) Are equities overvalued? (Pragmatic Capitalism, ibid) If Fedex (FDX) is raising estimates can the economy be all that bad?  (WSJ, Pragamatic Capitalism, MarketBeat) Why the increasingly global nature of commerce is confusing individual investors.  (AR Screencast) Edward Chancellor on the attraction of large, quality US stocks. ...
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Comparing this market recovery to 15 others.  (dshort) Equity sentiment at week-end.  (Trader’s Narrative) Total market cap now exceeds GDP.  (Big Picture) Ten stock market myths.  (WSJ) Stock buybacks vs. dividends:  which wins?  (Points and Figures) The search for a simple investment system is never easy.  (Telegraph UK) The bullish case for equities.  (Trader’s Narrative) Yet another case of yield chasing. ...
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The idea of tail risk and investor’s desire to hedge it has been floating around the blogosphere for a couple of weeks now.  Felix Salmon kicked things off with this post and we weighed in as well.  Eradicating tail risk is a worthy goal, but in all likelihood an elusive one.  That has not...
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17 reasons to be bullish from David Rosenberg?!?  (FT Alphaville) Market timers are not that impressed with the current rally.  (Marketwatch also Bespoke) UPS (UPS) and McDonald’s (MCD) both show global strength.  (NYTimes, FT) The US market is lagging much of the developed world.  (Bespoke) Eddy Elfenbein, “This is the problem with owning a richly valued stock…You...
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