Daily Investment Interpretations

November 15, 2010

2010-11-15 (Monday Night):  The markets ended the day mixed: Street takes a late-day hit: The NASDAQ Composite eased downward 4.39 points (-0.17%) to end the day  at 2,513.82  The Dow gained 9.39 points (0.08%) to close at 11,201.97, and the S&P 500 dropped 1.46 points (-0.12%) to end at 1,197.75. Oil dropped to $84.57 a barrel, and Gold ended at $1,360. The VIX climbed 0.41 to 20.20.  
    Path to Irish deficit reduction isn’t austerity  This author is echoing Paul Krugman's observations about Ireland's mistake in embracing fiscal austerity rather than economic recovery.
    Bonds extend selloff, Treasury yields jump by most since April, This sounds spooky to me. A couple of weeks ago, one of China's credit ratings agencies downgraded U. S. creditworthiness from AAA to AA+. "Today, Treasury prices deepened their decline in afternoon trading on Monday, pushing 10-year yields towards the highest level in three months, following a report that a Moody’s Investors Service analyst said extending the Bush tax cuts would be bad for the U.S. credit rating. The Moody’s analyst quoted in the report later told MarketWatch that the tax cuts would make reducing the deficit harder, and at this time the rating agency maintains a stable outlook on the country’s AAA rating."
    Of course, raising interest rates and heading off deflation is the Fed's goal, so maybe this is just what's needed, but any time there's serious talk about downgrading of U. S. sovereign debt and it shows up in rising interest rates, an amateur like me begins wondering what insiders are doing. The problem is that the big dogs are out the door before we, the public, know that anything's wrong.
    This article is from Peter Brimelow: Sound Advice cranky, but still bullish.  
    Bonuses go up in smoke  British bankers, unlike their remarkably wealthier U. S. cousins, won't be pigging out this year.
    U.S. CEOs' paychecks up 3% last year. U. S.-based corporations... or at least big investment backs...  have recently been described by a Marketwatch columnist as "compensation machines" that are focused on delivering their profits to their corporate managements rather than their shareholders. 
    Economy vs. markets in tug of war  This article, by Howard Gold, discusses future outlooks for the economy and their effects upon U. S. stock markets.
    I've listed the following articles about gold positions. 
    George Soros goes for gold  
    Eton Park cut gold ETF bet in third quarter  
    Paulson & Co. kept gold position in third quarter  
    Up-to-date market futures aren't available tonight.