In the stock market, open market purchases of company stock by senior management (“insiders”) is considered to be bullish. After all, executives may sell stock for many reasons — to diversify, to raise money for things like real estate purchases, college tuition, etc. Presumably, however, there’s only one reason insiders buy: they think their company’s...Read More
Defying the Laws of Supply & Demand The post office wants to increase the price of a stamp by 2 cents to 46 cents starting in January. The agency has been battered by losses and declining mail volume. –“Postal Office Seeks 2-Cent Increase in Stamp Prices“; The NY Times (7/6/10) Let’s see . . ....Read More
Testing “the Bernanke Put”So, the Federal Reserve’s $1.25 trillion program to buy mortgage-backed securities officially ended yesterday. Next up: home buyer tax credits, scheduled to expire at the end of the month. But are the Fed — and U.S. Treasury — really done? In an era of too-big-too-fail, “the Bernanke put” (preceded by “the Greenspan...Read More
Is the Media Right About the 2010 Housing Outlook? Before tackling how well the media understands the state of the housing market, a threshold question: Does the media’s take on the housing market matter? I think it does, because purchasing a home depends so much on one’s expectations about the future. When people are optimistic,...Read More
“Trickle Down” Economics to ‘Bubble Up’?Soft drink aficionado’s may recall “Bubble Up” as a long-ago rival to 7-Up. It may also be the best label for today’s, post-crash, post-Trickle Down economy. Notwithstanding the latest, dire Case-Shiller statistics, Realtors in many cities nationally are reporting more and more instances of multiple offers for deeply discounted, bank-owned...Read More
“Waiting for the Light” “Be aware that the market does not turn when it sees light at the end of the tunnel. It turns when all looks black, but just a subtle shade less black than the day before.” –Jeremy Grantham, “Reinvesting When Terrified“; (March 2009 Newsletter) Grantham, who manages $85 billion and is one...Read More
