Billionaire investor George Soros thinks the worst of the global financial crisis is behind us. In a June 20 interview with Polish television, the Hungarian-born Soros acknowledged that this has been the most serious crisis he’s seen in his lifetime, but said, “Definitely, the worst is behind us.”
Fed sees the bright side… Bernanke says worst it over, inflation not a worry… Warren Buffett can’t see any green shoots… even after eye surgery… Alan Knuckman on how to survive a sideways stock market… Byron King says now’s a good time to book profits on this sector… Housing still out of whack… one chart foreshadows the market’s next move…
Fed Holds Funds Rate; Buffett: U.S. May Need More Stimulus; Jobs’ Liver Transplant Confirmed; Fewer Americans Traveling on 4th Despite Lower Gas Prices; Monsanto Profits Drop 14%; SEC Proposes New Rules for Money Market Funds; Recession Yields Fewer Millionaires
This is the age where politicians get their chance to run up huge debts. “Politics is about what works,” said Hillary Clinton. At least, we think it was Hillary Clinton. Someone said it. Someone who is an imbecile.
One of the problems with orthodox economics is it misses the point on human behavior. Orthodox economists build their models around the assumption of rational behavior of large groups of people. There is therefore always a gulf between this type of economic theory and the real world.
Many investors believe that if you want to achieve big returns, you have to take big risks. They believe that safe, boring companies yield nothing but boring results. These investors are wrong. And it has cost them a fortune. It might sound counterintuitive, but if you want to achieve big gains (I’m talking about 1,000% to 5,000% or more), your best bet is to play it safe.
Housing and Construction Stats Improve; Mobius: Emerging Markets Close to Bull Market; Sprint Beats Expectations; Bovespa Hits Seven-Month High; Buffett Says Wall Street Sold “Sewage”; Liberty Spins Off DirecTV; Airlines Low on Cash; Mexico Lifts Work Ban on Flu Scare
In the newspapers there is much discussion of what General Motors (NYSE:GM) should do. This discussion has gone on for many years. Until now, it was a conversation carried on by serious analysts and auto industry experts. They all said the same thing: GM needed to clear out its management, dump much of its expensive, “legacy” overhead, and produce better cars. Why didn’t it do so?
Investors who trade actively and are closely in touch with the ebb and flow of opinion on Wall Street have one enormous barrier to good investment performance: They will often be seduced by what’s fashionable – whether it be in terms of sectors, countries or individual stocks.
Last week, Forbes magazine released its annual list of billionaires. No surprise, the rolls shrank.