Monthly Archives: March 2010

Nightly Recap 3-31-2010

Posted by Investing Freak on March 31, 2010
General / 2 Comments

Market Summary:
DOW      -50.79 (10,856.63)
S&P        -3.84 (1,169.43)
Nasdaq  -12.73 (2,397.96)
____________
Disclaimer:
Open Positions:  SRS at 5.97
___________

Nightly News Links

US Economy:

Ben Bernanke’s Mortgage Buying Will Be Missed (Until Round 2 Begins) (Business Insider)
The mortgage backed security (MBS) purchase program began in earnest on March 18, 2009, when Fed Chairman Bernanke announced an expansion of the program to the size limit of $1.25 trillion. The result of that program saw the S&P 500 rise 55.08% between March 18 and today (March 31, 2010), its end. What will the world be like after?

Obama to Open Offshore Areas to Oil Drilling for First Time (NYT)
The proposal — a compromise that will please oil companies and domestic drilling advocates but anger some residents of affected states and many environmental organizations — would end a longstanding moratorium on oil exploration along the East Coast from the northern tip of Delaware to the central coast of Florida, covering 167 million acres of ocean.

Chicago PMI Dissapoints (Econompic)
Investors were also disappointed Wednesday by a survey of Chicago-area purchasing managers that showed U.S. business activity continued to expand in March, but at a slower pace than the previous month. The Institute for Supply Management-Chicago said its business barometer slipped to 58.8 in March, from a nearly five-year high of 62.6 in February. Economists expected a reading of 60.8.
Still, Croft noted that a reading above 50 still reflects expansion. “We think the economy is marching forward here, but not at an extremely fast pace,” he said.

ADP Employment… Not Yet “Back in Black” (Econompic)
While many are waiting for Friday’s Payroll figure to tell them the state of the US labor market, I’m going to rely on today’s ADP report as a better gauge. That is because it is private sector based and thus won’t be distorted by the likely 100k+ adds of government census workers and the “methodology used to construct it” takes out most of the impact of the Feb snow storms and March snapback. It turns out that +40,000 was a bit optimistic as ADP showed a contraction of another 23,000 jobs. If these figures are to be believed (we will see “official figures” Friday), then we may have to wait for April for the private sector to stop contracting.

Market Call:Down(Zen Trader)
On a daily time frame I received my sell signal today and picked up DXD & SDS. We’ve been trading in a range with multiple distribution days this past week and it appears we’re in for some more selling. Could I be wrong and we rally? For sure. However, a number of other signals are pointing down.

World Economy:

European Unemployment to 11 1/2 Year High (EconomPic)
Euro zone inflation was much higher than expected in March and the unemployment rate reached 10 percent in February, data showed on Wednesday, highlighting the fragility of economic recovery.

The IMF Warns About German Banks… And That’s Bad News For France’s Too (Business Insider)
Mike O’Rourke of BTIG spotlights some interesting comments from a recently released IMF report (.pdf) on Germany:
“Simulation exercises suggest that German banks could suffer significant losses from commercial real estate investments in the U.S. and Spain, and more generally from exposures to Southern Europe. The simulations also suggest that a reassessment of risks associated with claims on Southern Europe could have a large impact on capital flows within Europe, as German (and also French) banks would significantly reduce their foreign claims to restore capital ratios.”

Interesting Links:

The Story Of Bottled Water (2010)
The Story of Bottled Water, released on March 22, 2010 (World Water Day) employs the Story of Stuff style to tell the story of manufactured demand—how you get Americans to buy more than half a billion bottles of water every week when it already flows from the tap. Over five minutes, the film explores the bottled water industrys attacks on tap water and its use of seductive, environmental-themed advertising to cover up the mountains of plastic waste it produces.
httpvh://www.youtube.com/watch?v=Se12y9hSOM0}

Have a Good Night

-K

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Nightly Recap 3-30-2010

Posted by Investing Freak on March 30, 2010
General / Comments Off on Nightly Recap 3-30-2010

Market Summary:
DOW      +11.56 (10,907.42)
S&P        -0.05 (1,173.27)
Nasdaq  +6.33 (2,410.69)
____________
Disclaimer:
Open Positions:  SRS at 5.97
___________

Nightly News Links

US Economy:

Downtown New York Office Vacancy Rate Spikes To 9/11 Levels (Zero Hedge)
Bloomberg TV reports that the office vacancy rate in downtown NY has dropped to September 11th levels, and is about to pass 14%.

SPX Struggling at 1180 (The Art Of Trading)
“The SPX has attempted several times to crack thru 1180 and seems to be having trouble. I think it’s best to sit in cash or be very nimble if you wanna play the short side. 1150 is very strong support for the SPX and pullbacks there would likely see some solid bounce i imagine. If i had it my way, i’d love to see the indexes pullback for another few more days. As i type this, i am noticing lots of stocks turning deeper into the red yet the indexes are only down slightly. I think CASH IS KING and look to buy stocks on dips!”

Interesting Links:

22 Storms in NE: Winter 2009-2010 Radar Loop (AccuWeather)
Today what could be the last Nor’easter of the season is affecting the Northeastern U.S. It’s interesting if you compare the heavy rain area for today’s storm with the heavy snow area from this winter, they are very similar. Major storms are continuing to move up the East Coast as they have all season, it’s just warmer now so we’re seeing rain instead of snow.* These winter storms have dropped 30-40 inches of rain (and liquid snow) in the I-95 corridor, which would normally only receive 20-25 inches over the winter.

That is all for tonight, very boring night link-wise, weather wise and market wise.
Have a Good Night and here’s to a more exciting Wednesday.

-K

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Nightly Recap 3-29-2010

Posted by Investing Freak on March 29, 2010
General / Comments Off on Nightly Recap 3-29-2010

Market Summary:
DOW      +45.50 (10,895.86)
S&P        +6.63 (1,173.22)
Nasdaq  +9.23 (2,404.36)
____________
Disclaimer:
Open Positions:  SRS at 5.97
___________

Nightly News Links

US Economy:

Seasonality Map for April, 2010(MarketSci Blog)
On the link above is a map of expected strong/weak days for the U.S. market for April, 2010 based on historical seasonality patterns. “I want to make clear that I do NOT think that seasonality alone is sufficient to justify a trade; however, all of the seasonality plays included in this report have been powerful enough and consistent enough that I do think they should be one of many tools in the trader’s toolbox.”

Have commodities outpaced fundamentals?(Investment Postcards)
Have metal prices and the prices of other commodities such as oil outrun the underlying fundamentals? The significant strength of the US dollar since December last year has capped rises in commodity prices. However, metal prices continue to be driven largely by Chinese demand, with China’s manufacturing PMI for new export orders and total new orders leading metal prices. The risks of investing in commodities are increasing as we move forward. The metal markets currently smack of speculation and manipulation. Metal stocks on the London Metal Exchange are currently at levels similar to those at the height of the global liquidity crisis

World Economy:

Euro Trashed (New York Times)
Germany and other “euro-optimists” hoped that the introduction of a common currency and the global economic competitiveness it spurred would quickly lead to sweeping economic and societal modernization across the union. But the opposite has occurred. Rather than pulling the lagging countries forward, the low interest rates of the European Central Bank have lured governments and households, especially in the southern part of the euro zone, into frivolous budgetary policies and excessive consumption. In short, the euro is headed toward collapse.

Greek CDS’s Exploding After Horrible Debt Auction, Greeks Blame Weak Demand on Easter(Zero Hedge)
Greek CDS are moving 10 bps wider from 293 to 303 bps as demand for the bailed out country’s bonds was much weaker than expected. Greek weakness is spreading to other European countries: The cost of protecting other euro zone government bonds from default were also mostly higher. The German 5-year credit default swap rose to 30.1 bps from 28.9 bps. In the meantime, and in keeping with the Greek tradition of scapegoating, the very weak demand for the new 7 Year issue was blamed on… Easter. About 175 institutions bid for a slice, sources at the lead managers said, compared to 400 investors for the 10-year issue.
“It is Easter week in Greece and Europe and this explains why demand may seem a bit softer, with the book growing at a slower pace compared to the previous 10-year bond issue,” said a source at one of the five banks leading the issue.

Japanese Production Takes a Breather(Econompic)
Japan’s industrial production retreated in February, snapping an 11-month winning streak that helped to secure a recovery from the country’s worst postwar recession.
Factory output declined 0.9 percent from January, when it rose 2.7 percent, the most in eight months, the Trade Ministry said today in Tokyo. The median estimate of 24 economists surveyed by Bloomberg News was for a 0.5 percent drop.
The slide is unlikely to last as Asian demand for the country’s electronics and machinery continues to fuel exports, Junko Nishioka, chief economist at RBS Securities Japan Ltd. in Tokyo, said before the report was published. Factory output and exports have yet to return to their peak set two years ago, and the recovery remains plagued by deflation.

Have a Good Night

-K

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A Special S&P 500 Chart courtesy of Investingfreak

Posted by Investing Freak on March 28, 2010
Market Analysis / Comments Off on A Special S&P 500 Chart courtesy of Investingfreak

This weekend I will share with you a chart that I view at the end of every week.
When I glanced at it last night i saw that we are right at the bottom of a trending channel.

It will be an interesting week coming up so I decided to finally share it with the rest of the world (including the masterminds at Gold in Sachs)

As always click the above image to enlarge.  Since a picture is worth more than a thousand words there is no need for me to comment on it further.

Have a profitable week ahead.

-K

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Current Picks Updated 3-28-2010

Posted by Investing Freak on March 28, 2010
General / 1 Comment

The Current Picks page has been updated. Have a look by clicking Current Picks here or up on the top of the page.
Below I will only mention the new signals that have occurred this week.

IYR   downgraded to SELL on Mar 26th at $50.10     (BUY Feb 16 at $44.40)
AAPL upgraded to BUY on Mar 22nd at $224.75   (SELL Mar 19 at $222.30)

Not much action this week but many equities are giving a sign of rolling over (dont be surprised if you see over a dozen stock upgrades and downgrades one weekend)
As for AAPL i think the sudden turnaround of signal seems to have been caused by unexpected demand for the iPad.

Disclaimer:
I am only giving the latest signal for the stock mentioned. Use at your own risk and make sure to take the date into consideration. If you have been trading for a while you should have realized that relying solely on the strategies of others (think Analyst Opinions) will lead to failure so please only take the signals I provide just as another indicator in making your informed BUY or SELL decision. Now go Make some MONEY!

Have a good weekend.

-K

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Nightly Recap 3-26-2010

Posted by Investing Freak on March 26, 2010
General / Comments Off on Nightly Recap 3-26-2010

Market Summary:
DOW      +9.15 (10,850.36)
S&P        +0.86 (1,166.59)
Nasdaq  -2.28 (2,395.13)
____________
Disclaimer:
Open Positions:  SRS at 5.97
___________

Nightly News Links

US Economy:

Q4 GDP Revised down to 5.6% (from 5.9%) (Calculated Risk)
Real gross domestic product — the output of goods and services produced by labor and property located in the United States — increased at an annual rate of 5.6 percent in the fourth quarter of 2009 … Real personal consumption expenditures increased 1.6 percent in the fourth quarter. Note that PCE and Residential Investment (RI) – the two leading categories – were both revised down for Q4. This suggests that final demand was weaker in Q4 than in the previous two estimates.

Half of US Home Modifications Default Again (Bloomberg)
More than half of U.S. borrowers who received loan modifications on delinquent mortgages defaulted again after nine months, according to a federal report. The re-default rate of loans modified in the first quarter of 2009 was 51.5 percent by the end of the year, the Office of the Comptroller of the Currency and the Office of Thrift Supervision said in a joint report today. The figure, which measures payments at least 30 days late, climbed to 57.9 percent for changes made in the prior 12 months.

Treasury Planning Citi Stake Sale (New York Times)
The Treasury could unveil a preset trading plan next month for the sale of its 27 percent stake in Citigroup Inc, Bloomberg said on Thursday, citing people with direct knowledge of the matter. Citigroup shares rose 2.9 percent to close at $4.27 following the report, which soothed investor fears that the United States would dump large blocks of shares on the market.
The Treasury plan will lock the government into a schedule for selling its shares with the aim of eliminating any concerns that the sales are based on nonpublic information.

World Economy:

Greece is finally given their safety blanket (The Big Picture)
As has been hinted at for the past few days, Germany and France have agreed to involve the IMF in a joint backstop that will be there for Greece ONLY if they run into a funding crisis. Greece needs to raise about 20b euro’s by the end of May to meet upcoming maturities. ECB Pres Trichet who said he wanted to avoid using the IMF yesterday, said he was “extraordinarily happy that the government of the euro area found out a workable solution.” Greek debt is rallying, stocks are up 3% and the euro is higher.

Geopoltical Update: South Korean Ship Likely Hit By North Korean Torpedo, Emergency Security Meeting Held In Seoul (Zero Hedge)
Several South Korean sailors were killed and one of its naval ships with more than 100 aboard was sinking on Friday after possibly being hit by a North Korean torpedo, South Korean media reported. A South Korean vessel fired at an unidentified vessel towards the north and the South’s presidential Blue House was holding an emergency security meeting, Yonhap news agency said. South Korea’s YTN TV network said the government was investigating whether the sinking was due to a torpedo attack by the North. The network also quoted a government source saying it was unclear yet whether the incident was related to North Korea.

Goldman Joins Race for $10 Billion Polish Asset Sales (Bloomberg)
The Polish capital is luring international investment banks, including Goldman Sachs Group Inc., the world’s most profitable, as the government prepares record share offerings this year. The main lure is advisory work for the Polish government, which plans to sell stakes this year in its energy, insurance, chemical and phone companies to raise $10 billion to finance the widening budget deficit. The economy, the only one in the European Union to avoid a recession, and the Warsaw Stock Exchange, where the total value of listed companies has tripled since 2003, are also attractive, bankers said.
“It’s no wonder foreign banks are coming to Poland,”

Have a Good Night

-K

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Nightly Recap 3-25-2010

Posted by Investing Freak on March 25, 2010
General / Comments Off on Nightly Recap 3-25-2010

Market Summary:
DOW      +5.06 (10,841.21)
S&P        -1.99 (1,165.73)
Nasdaq -1.35 (2,397.41)

Nightly News Links

US Economy:

The Social Security Tipping Point (Econompic)
The bursting of the real estate bubble and the ensuing recession have hurt jobs, home prices and now Social Security.
This year, the system will pay out more in benefits than it receives in payroll taxes, an important threshold it was not expected to cross until at least 2016, according to the Congressional Budget Office. The problem, he said, is that payments have risen more than expected during the downturn, because jobs disappeared and people applied for benefits sooner than they had planned. At the same time, the program’s revenue has fallen sharply, because there are fewer paychecks to tax.

The Recession Ans Recovery In Perspective (Minneapolis Fed)
The 2007-2009 recession is widely thought to have ended sometime last summer. How bad was this recession, and how quickly is the economy recovering? How does this recession and recovery compare to previous cycles? Check the Link for interactive Charts.

Ambac to File Bankruptcy ( The Big Picture)
Bond insurer Ambac Financial Group said again that it may seek bankruptcy protection after state regulators took control of some of its most troubled assets.
The news Thursday sent the company’s already devalued stock into a tailspin.

World Economy:

Dell Leaving China In Search Of “Safer Environments” In India (TFTS)
India’s Prime Minister, Manmohan Singh, told the Indian press that Dell chairman Michael Dell assured him that Dell was moving $25 billion in factories from China to India. Original motives were cited for environmental concerns. But later details come up as to dell wanting a ’safer environment conductive to enterprise.’”

China Official: “Will not adjust exchange rate” (Calculated Risk)
After meeting with officials at the Treasury and Commerce Departments on Wednesday, China’s deputy commerce minister, Zhong Shan, told reporters, “The Chinese government will not succumb to foreign pressures to adjust our exchange rate.”
“It is wrong for the United States to jump to the conclusion that China is manipulating currency from the sheer fact that China is enjoying a trade surplus,” Mr. Zhong told reporters in a meeting at the Chinese Embassy. “Besides, it’s wrong for the United States to press for the appreciation of the renminbi and threaten to impose punitive tariffs on Chinese experts. This is unacceptable to China.”
This is more posturing before the Treasury releases the worldwide currencies report on April 15th that might name China a “currency manipulator”.

All Hell To Break Loose: April 15th (Reuters)
U.S. senators have introduced new legislation that threatens China with punitive duties if it fails to lift the value of its currency, boosting pressure on the Obama administration to take action under existing law.
The bipartisan measure, which merges earlier efforts to change the currency law, aims to end what the lawmakers said was Beijing’s deliberate efforts to keep the yuan cheap to subsidize exports and tax imports.

Have a Good Night

-K

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Nightly Recap 3-24-2010

Posted by Investing Freak on March 24, 2010
General / Comments Off on Nightly Recap 3-24-2010

Market Summary:
DOW      -52.68 (10,836.15)
S&P        -6.45 (1,167.72)
Nasdaq -16.48 (2,398.76)

Nightly News Links

US Economy:

Durable Goods Jump on Continued Strength in Aircraft (Econompic)
Orders for big-ticket manufactured goods rose for a third consecutive month in February, bolstered by strong demand for commercial aircraft and machinery. The
hope is that continued strength in manufacturing will help sustain the economic recovery.
The Commerce Department said Wednesday that orders for durable goods advanced 0.5 percent last month, slightly lower than the 0.7 percent gain that economists had expected.

Chicago Fed National Activity Index (Chicago Fed) [PDF]
Chicago Fed National Activity Index is a surprisingly good forecaster of economic activity. The Chicago Fed National Activity Index (CFNAI) is a monthly index constructed to summarize variation in 85 data series on U.S. economic activity.

New Home Sales Plunge To New All Time Record Low (Zero Hedge)
New home sales drop to a record low adjusted annual rate of 308K. All of the government’s housing stabilizing measures are now a disaster, as existing home sales inventory surges to nearly 9 months, not counting the shadow inventory, which is more than double.

World Economy:

China: Sale of residential land temporarily halted (China Daily)
The Ministry of Land and Resources has ordered a temporary ban on the sale of land for housing in a renewed measure to ease soaring real estate prices.
Yun Xiaosu, vice-minister of land and resources, said local authorities should not sell land for residential purposes until this year’s housing land supply plan is released in early April.
“Residential land supply will increase and low-income housing projects will top local governments’ agendas,” Yun said during a video-conference on Monday.

Getting Technical: Trouble Brewing in Europe (Barrons)
News that Portugal’s credit rating was downgraded by one of the major ratings agencies sent a shiver across the European Union.
The question on investors’ minds is whether this is the start of something bigger or just a contained incident. After all, Greece’s problems did not take down global markets.The stock market, however, might have the answer and it is not good. Technical death crosses — when key short-term moving averages move below longer-term moving averages — have occurred in several of the troubled markets. Most will agree that the stock market looks forward to events expected to occur perhaps nine months down the road. It is one way we can explain why stocks rallied a year ago when the financial world was in danger of collapse.  “We ain’t seen nuthin’ yet”

Have a Good Night

-K

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Nightly Recap 3-23-2010

Posted by Investing Freak on March 24, 2010
General / Comments Off on Nightly Recap 3-23-2010

Market Summary:
DOW      +102.94 (10,888.83)
S&P        +8.36 (1,174.17)
Nasdaq  +19.84 (2,415.24)

Nightly News Links

US Economy:

Existing Home Sales fall further in February (The Mess That Greenspan Made)
The National Association of Realtors reported that sales of existing homes fell 0.6 percent in February after a drop of more than 7 percent in January and sales are now at their lowest level in eight months.  It’s probably best not to make too much of the winter data for existing home sales because it is a very slow time of the year but, the “Months of Supply” metric certainly looks to be going in the wrong direction right now.

What is the Homebuilders Index pricing in? (Investment Postcards)
David Rosenberg, chief economist and strategist of Gluskin Shedff & Associates, states that his regression analyses show the Homebuilders Index to be pricing in the following:
Housing starts: pricing in a level of 800-900k (versus 575k currently)
Existing home sales: pricing in a level of 5,500k (versus 5,050k)
NAHB Housing Market Index: pricing in a level of 35 versus 15 actual.
Is this the most expensive part of the US stock market?

US Debt Update: 6 Months To Revised Debt Ceiling Breach (Zero Hedge)
As a reminder, the debt limit is $14.3 trillion. We are $1.7 trillion away from the limit. At March’s run-rate of about $300 billion per month, the debt ceiling will be breached by October 2010. If somehow the government manages to reduce the monthly issuance to “just” $200 billion, we have eight and a half months until breach, or January 2011.

World Economy:

Spain to join Portugal in issuing Dollar-denominated Bond (Zero Hedge)
Yet more countries are anticipating the Fed finally killing the dollar sooner or later, as Spain now joins Portugal in issuing dollar-denominated bonds. If Europe’s most insolvent countries are getting on board of the asset side of the Fed’s balance sheet, it can only mean one thing: the odds for the winner of the currency race to the bottom are squarely in favor of the US currency.   (K remark:  I really see this as a contrary indicator being that there is an imbalance in those countries who are betting on a collapse of the dollar.)

Germany Sets tough terms for EU help for Greece (Reuters)
ermany signaled for the first time on Tuesday that it may accept European financial aid for Greece as a last resort, but only if the IMF is involved and euro zone partners accept tougher budget discipline rules.  “The condition for action, as a last resort, is that Greece’s financing on the capital markets is exhausted,” the official said.”Furthermore, it would be necessary for the International Monetary Fund to provide a substantial contribution,” he said, stressing there will be no decision on actual aid at the summit.

Interesting Reads:

Jim Rogers Starts Some Short Positions (Market Folly)
Potentially the most notable bit of his conversation was when he said, “I had no shorts for about 15 months so I started putting out some shorts recently. But the fact that I’ve been putting out shorts means the stock market won’t pull back.” So, it’s interesting to see Rogers fight the current trend. In his mind, it’s the right play, but he knows he’s going to potentially feel some pain first.

Morning Humor- American And Greek Capitalism Explained  (Video) (Zero Hedge)
Explaining US economics (with an emphasis on generally accepted criminal accounting practices).
httpv://www.youtube.com/watch?v=7uUXwakPR1U}

Have a Good Night

-K

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Nightly Recap 3-22-2010

Posted by Investing Freak on March 22, 2010
General / Comments Off on Nightly Recap 3-22-2010

Market Summary:
DOW      +43.91 (10,785.89)
S&P        +5.91 (1,165.81)
Nasdaq  +20.99 (2,395.40)

Nightly News Links

US Economy:

Chicago Fed National Activity Declines in February (Econompic)
The 85 economic indicators that comprise the Chicago Fed’s index are drawn from four categories: production and income; employment, unemployment and hours; personal consumption and housing; and sales, orders and inventories. The three month average fell to -0.64 in February from -0.04 in January.

Tomorrow, Tim Geithner Urges End to Fannie and Freddie ‘Ambiguity’ (Bloomberg)
Tim Geithner is set to deliver unwelcome to news to those who play in the public Fannie Mae (FNM) and Freddie Mac (FRE) casino. Private gains can no longer be supported by the umbrella of public protection, capital standards must be higher and excessive risk-taking must be appropriately restrained,” Geithner said in testimony prepared for the House Financial Services Committee that was obtained today by Bloomberg News. The hearing is scheduled for tomorrow at 10 a.m. in Washington.

The Pressure on Malls: More Store Closings (Calculated Risk)
“Our outlook for retail properties as a whole is bleak … we do not foresee a recovery in the retail sector until late 2012 at the earliest.” Over the next three fiscal years, 25 percent of our store leases will reach maturity … E-commerce is 30 percent of our corporate revenue and it’s very profitable … even in this environment. The Internet and e-commerce have become the focus on our capital investment.”

World Economy:

Global Productivity and Unemployment (Econompic)
Producing more by working less is the key to rising living standards, but in the short term there is a tension between efficiency and jobs. America and Europe have managed this trade-off rather differently. America has gone on a diet: it has squeezed extra output from a smaller workforce and suffered a big rise in unemployment as a consequence. Europe, meanwhile, is hoping to burn off the calories in the future. It has opted to contain job losses at the cost of lower productivity.

The Beginning of the End of the Eurozone As We Know It? (Naked Capitalism)
The widely-extolled idea, that the EU would find a way to muddle through the Greece crisis, looks very much in doubt. The pressure has not simply put the rescue of Greece into disarray, but appears to have led to some positions being taken that, if they hold, look likely to lead to the partial dissolution of the monetary union. This development would have far-reaching ramifications which are far from well understood, to put it mildly.

Interesting Reads:

Dear Evil Speculators (The Reformed Broker)
Dear Evil Speculators,As part of our ongoing program designed to render the US stock market completely dysfunctional, we have added an additional tax to be applied toward your investment income as part of the wildly popular Health Care Bill that we recently finagled through into law: * Individuals earning more than $200,000 a year, or couples earning $250,000 or more, would be hit with a 3.8% surcharge on investment income to help pay for the bill.You see, we are fully aware that in just the past decade, you have been slammed twice – 2000-2002 and 2007-2009 – with two of the most brutal bear markets in history – but we just don’t care.

Health Care Expenses vs. Life Expectancy (The Big Picture)
A very insightful chart comparing Countries using Life expectancy and Health care spending.

Hedge Fund Ebullio Capital: Down 86.25% In One Month (Market Folly)
By now, many of you may have already heard the startling tale of Lars Steffensen’s hedge fund Ebullio Capital Management. For the month of February 2010, they were down a whopping 86.25%. That brought their year to date total return to -95.83%. Immediately, questions swirl in one’s head such as ‘How did this happen? What kind of risk management did they have in place? How will they recover?’ Remarkably, their investor letter had quite a calm tone to it.

Have a Good Night

-K

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