4/2/05 Liquidity Excesses
The on-going creation of excess liquidity and credit will cause our economic system to lose consciousness. For example, how long can we generate close to $1.2 trillion in mortgage credit on a yearly basis?
Doug Noland: "The market pricing mechanism cannot self-correct in an era of uncontrolled finance."
Yesterday's nonfarm payroll report was pathetic for many reasons-- and not just the low number. The best the Commissioner could say was that 26,000 construction jobs, 16,000 health care jobs, 15,000 wholesale trade jobs, and 5,000 mining jobs were created. That was the extent of the good news. So what did our government do? They compounded the situation with an early release of the ISM Service Index numbers, which weren't due out until Tuesday. They showed greater-than-expected growth in non-manufacturing businesses; however, there was a sharp jump in consumer prices with the ISM Prices Paid Index jumping in March to 73 from 65.5 in February. It was the largest rise in more than one year. So, investors were left with poor job creation and inflation. That's not a tasty meal.
Gasoline futures hit an all-time high of $1.73 per gallon with crude jumping back up to $57.29 a barrel. Heating oil rose to $1.66 a gallon. Natural gas also participated in the inflation onslaught.
UK house prices experienced their biggest monthly fall in almost 10 years as prices fell 0.6% in March.
Sears announced a layoff of at least 250 at their headquarters.
Shanghai Securities News: "The time is right for China to adjust its exchange rate policy and a move may happen at any time."
Best Buy stated their earnings would be below street estimates and Cardinal Health mentioned that their 2005 earnings per share may be 10 cents less than forecast.
Paul Kasriel: "In 2004, total household spending represented a record 75.8% of GDP."
The financing needs of the U.S. government will aproximate $800 billion this year or almost $2.2 billion per day.
Toyota's March U.S. sales rose 12.3% from March 2004. They had the best first quarter sales in its 48 years of business in the U.S.
In the last five weeks, airfares have risen about $60 in price.
Gold is selling at approximately 7.5 times the price of crude oil. This is the lowest historical relationship.
Even with AIG stock selling at a 2-year low, its market cap still is $134 billion. By comparison, Berkshire Hathaway's is $110 billion.
Over the last 26 years, on a daily basis, the Pope has distinguished himself as a leader, and more importantly, as a human being. He will be remembered for his goodness.
Saturday, April 02, 2005
Friday, April 01, 2005
April Fool's Day
4/1/05 April Fool's Day
Would you believe the first quarter turned out the way it did? The dollar gained 4.4%, the biggest increase since the first quarter of 2001, as the Fed continued to raise interest rates and the yield on the 2, 5, and 10-year Treasury bonds all went up. Only the 30-year declined- a mere 5 basis points. You went to the bank owning energy stocks and commodities. Crude rose over 27% to $55.40 per barrel. Heating oil climbed 30%, natural gas just shy of 25%, and unleaded gas a whopping 45.5%. Of course, the Fed stated inflation was not a significant problem; however, workers had a problem as their wages trailed inflation. In addition, personal incomes trailed the rate of spending, and, as a result, savings dropped to 0.6%---essentially no savings at all. Not to worry. We're importing savings from other nations to offset our twin tower deficits. If you owned real estate, the first quarter was certainly kind to you. The insanity continued as the average sale of a Manhattan apartment topped $1.2 million in the first quarter. Unfortunately, equity holders took it on the chin as the quarterly results for the Nasdaq showed a drop of 8.1%, for the Dow 2.59%, and the S&P 500 1.91%. Although the Conference Board's Help Wanted Index remained unchanged at 41, and although jobless claims rose by 20,000 in the latest week, and although the unemployment rate rose in the quarter, non-farm payroll jobs showed increases for each month in the first quarter. Of course, the average workweek did not improve and overtime was not increased. The quality of the jobs remain in question. It's quality not quantity. Even AIG can tell you that. The quarter came to an end with MMM announcing the closing of its plant in Stillwater, Minn. About 200 will lose their jobs as will 700 at DaimlerChrysler, 400 at Blockbuster, and 67 at Transmeta. It wouldn't be right to ignore Qwest's new $27.50 cash and stock bid for MCI. If they raise another 4 times, they'll be on a par with the Fed and the increases in interest rates. Lastly, we cannot ignore the declining consumer confidence in the U.S. It has not hampered spending but why should it? The consumer is borrowing the money. Since when did debt matter? Just look at our federal debt levels? We are not alone in declining confidence as Japan's business confidence fell to the lowest level in 1 year.
Since it is April's Fool Day, maybe a little cheer is in store. Crude spiked to $105 a barrel today. The dollar rose to its highest level in 4 years as nonfarm payrolls zoomed 500,000 in the month of March. Wages increased by 5 cents an hour. The Dow jumped 500 points as ExxonMobil rose to $100 a share. The Nasdaq was able to gain 1 point. Microsoft announced that their next new product would be released on time and without bugs. The Donald will pitch the ads for their new product, and, on the Apprentice, the contestants will have to prepare a market rollout campaign for the product. Coke released a new product-- mystery Coke. The winner must guess correctly what the new flavor is. The hint is--it rhymes with miss.
Back in the real world, all the economists with their doctorate degrees proved once again they know little about hiring. The nonfarm payrolls increased by a mere 110,000, the weakest gain in 8 months. In addition, due to revisions, hiring was reduced by 27,000 jobs for the January-February period. In March, the unemployment rate dropped to 5.2% from 5.4%; however, the average workweek and overtime hours shrank slightly and average hourly wages rose a paltry 4 cents. Nice work if you can get it. Get it if you try.
Would you believe the first quarter turned out the way it did? The dollar gained 4.4%, the biggest increase since the first quarter of 2001, as the Fed continued to raise interest rates and the yield on the 2, 5, and 10-year Treasury bonds all went up. Only the 30-year declined- a mere 5 basis points. You went to the bank owning energy stocks and commodities. Crude rose over 27% to $55.40 per barrel. Heating oil climbed 30%, natural gas just shy of 25%, and unleaded gas a whopping 45.5%. Of course, the Fed stated inflation was not a significant problem; however, workers had a problem as their wages trailed inflation. In addition, personal incomes trailed the rate of spending, and, as a result, savings dropped to 0.6%---essentially no savings at all. Not to worry. We're importing savings from other nations to offset our twin tower deficits. If you owned real estate, the first quarter was certainly kind to you. The insanity continued as the average sale of a Manhattan apartment topped $1.2 million in the first quarter. Unfortunately, equity holders took it on the chin as the quarterly results for the Nasdaq showed a drop of 8.1%, for the Dow 2.59%, and the S&P 500 1.91%. Although the Conference Board's Help Wanted Index remained unchanged at 41, and although jobless claims rose by 20,000 in the latest week, and although the unemployment rate rose in the quarter, non-farm payroll jobs showed increases for each month in the first quarter. Of course, the average workweek did not improve and overtime was not increased. The quality of the jobs remain in question. It's quality not quantity. Even AIG can tell you that. The quarter came to an end with MMM announcing the closing of its plant in Stillwater, Minn. About 200 will lose their jobs as will 700 at DaimlerChrysler, 400 at Blockbuster, and 67 at Transmeta. It wouldn't be right to ignore Qwest's new $27.50 cash and stock bid for MCI. If they raise another 4 times, they'll be on a par with the Fed and the increases in interest rates. Lastly, we cannot ignore the declining consumer confidence in the U.S. It has not hampered spending but why should it? The consumer is borrowing the money. Since when did debt matter? Just look at our federal debt levels? We are not alone in declining confidence as Japan's business confidence fell to the lowest level in 1 year.
Since it is April's Fool Day, maybe a little cheer is in store. Crude spiked to $105 a barrel today. The dollar rose to its highest level in 4 years as nonfarm payrolls zoomed 500,000 in the month of March. Wages increased by 5 cents an hour. The Dow jumped 500 points as ExxonMobil rose to $100 a share. The Nasdaq was able to gain 1 point. Microsoft announced that their next new product would be released on time and without bugs. The Donald will pitch the ads for their new product, and, on the Apprentice, the contestants will have to prepare a market rollout campaign for the product. Coke released a new product-- mystery Coke. The winner must guess correctly what the new flavor is. The hint is--it rhymes with miss.
Back in the real world, all the economists with their doctorate degrees proved once again they know little about hiring. The nonfarm payrolls increased by a mere 110,000, the weakest gain in 8 months. In addition, due to revisions, hiring was reduced by 27,000 jobs for the January-February period. In March, the unemployment rate dropped to 5.2% from 5.4%; however, the average workweek and overtime hours shrank slightly and average hourly wages rose a paltry 4 cents. Nice work if you can get it. Get it if you try.
Wednesday, March 30, 2005
Enthusiasm
3/31/05 Enthusiasm
According to the PricewaterhouseCoopers first quarter 2005 Korpacz
Real Estate Investor Survey(R), “as the U.S. economy continues to expand and market fundamentals continue to improve, more and more investors are feeling confident about the future and are willing to accept more risk,” said Peter Korpacz, director,
PricewaterhouseCoopers' Global Strategic Real Estate Research Practice. "As a
result, an increasing number of investors are pursuing value-added assets and
assets in secondary markets." At the same time, however, a number of investors may be showing a little too much confidence—based on what are perceived to be overly aggressive underwriting assumptions in their acquisitions, Korpacz noted. “The problem with being too aggressive is that underwriting projects may not pan out, especially for assets located in second-tier cities and for less premier assets where rental rates seem to lag national Class-A office trends,” Korpacz stated. And with competition still rampant -- 2004 saw an unprecedented level of capital spent on commercial real estate -- it is just
those secondary markets that are attracting more attention. In addition, with so many potential buyers vying for a limited number of offerings and sellers still controlling the majority of transactions, some potential buyers have begun to approach owners to try to negotiate "offmarket" (unadvertised) deals. By negotiating such deals, potential buyers are hoping to avoid the bidding frenzy that has become all too commonplace and
shows no sign of abating.
As we approached the opening of trading yesterday, only one out of every five stocks were trading above their 40-day moving average. As such, a contrarian would have surmised that a bounce was in order, and that’s what we got—a triple digit bounce in the Dow, the biggest one day advance in 4 months. It helped that the Energy Department stated crude supplies rose 5.4 million barrels for the week ended March 25. As a result, crude dipped below $53 a barrel. However, a rally followed and crude closed at $53.99 as the Energy Department also reported that gasoline inventories fell 2.9 million barrels and distillate supplies dropped 1.1 million barrels.
Johnson Controls plans to close its Goshen, Indiana factory, and 167 workers will lose their jobs. Most of the work will be sent to a company plant in Mexico.
AIG said in a statement today that accounting errors and changes may result in a reduction of as much as 2 percent in shareholders' equity. The company last reported shareholders' equity of $82.9 billion.
We have seen a palace coup at Disney and one may be in the making at Morgan Stanley.
Clif Droke: “A growing list of indicators and data suggest a slowing down of credit growth and a return to a more "normal" level of economic activity. Unfortunately, however, the rate of change slowdown that we'll likely experience this year will seem dramatic to some compared to the opulent growth of the past 2-3 years. Investors who have over-extended themselves with debt will suffer the most while those who have built up ample supplies of cash will fare best.”
The Internal Revenue Service reported Tuesday that the gap between taxes paid and taxes owed stood at more than $300 billion, with a large portion resulting from people not reporting income.
With plummeting profit margins in China, GM’s 2005 net earnings in that country might slide below $100 million, a drop from 2004 of approximately 80%. In my view, China’s housing bubble will be the next to go. China’s economy is on its way to a hard landing.
Robert Wibbelsman: "The problem with the person who thinks he's a long-term investor and impervious to short-term gyrations is that the emotion of fear and pain will eventually make him sell badly."
According to the PricewaterhouseCoopers first quarter 2005 Korpacz
Real Estate Investor Survey(R), “as the U.S. economy continues to expand and market fundamentals continue to improve, more and more investors are feeling confident about the future and are willing to accept more risk,” said Peter Korpacz, director,
PricewaterhouseCoopers' Global Strategic Real Estate Research Practice. "As a
result, an increasing number of investors are pursuing value-added assets and
assets in secondary markets." At the same time, however, a number of investors may be showing a little too much confidence—based on what are perceived to be overly aggressive underwriting assumptions in their acquisitions, Korpacz noted. “The problem with being too aggressive is that underwriting projects may not pan out, especially for assets located in second-tier cities and for less premier assets where rental rates seem to lag national Class-A office trends,” Korpacz stated. And with competition still rampant -- 2004 saw an unprecedented level of capital spent on commercial real estate -- it is just
those secondary markets that are attracting more attention. In addition, with so many potential buyers vying for a limited number of offerings and sellers still controlling the majority of transactions, some potential buyers have begun to approach owners to try to negotiate "offmarket" (unadvertised) deals. By negotiating such deals, potential buyers are hoping to avoid the bidding frenzy that has become all too commonplace and
shows no sign of abating.
As we approached the opening of trading yesterday, only one out of every five stocks were trading above their 40-day moving average. As such, a contrarian would have surmised that a bounce was in order, and that’s what we got—a triple digit bounce in the Dow, the biggest one day advance in 4 months. It helped that the Energy Department stated crude supplies rose 5.4 million barrels for the week ended March 25. As a result, crude dipped below $53 a barrel. However, a rally followed and crude closed at $53.99 as the Energy Department also reported that gasoline inventories fell 2.9 million barrels and distillate supplies dropped 1.1 million barrels.
Johnson Controls plans to close its Goshen, Indiana factory, and 167 workers will lose their jobs. Most of the work will be sent to a company plant in Mexico.
AIG said in a statement today that accounting errors and changes may result in a reduction of as much as 2 percent in shareholders' equity. The company last reported shareholders' equity of $82.9 billion.
We have seen a palace coup at Disney and one may be in the making at Morgan Stanley.
Clif Droke: “A growing list of indicators and data suggest a slowing down of credit growth and a return to a more "normal" level of economic activity. Unfortunately, however, the rate of change slowdown that we'll likely experience this year will seem dramatic to some compared to the opulent growth of the past 2-3 years. Investors who have over-extended themselves with debt will suffer the most while those who have built up ample supplies of cash will fare best.”
The Internal Revenue Service reported Tuesday that the gap between taxes paid and taxes owed stood at more than $300 billion, with a large portion resulting from people not reporting income.
With plummeting profit margins in China, GM’s 2005 net earnings in that country might slide below $100 million, a drop from 2004 of approximately 80%. In my view, China’s housing bubble will be the next to go. China’s economy is on its way to a hard landing.
Robert Wibbelsman: "The problem with the person who thinks he's a long-term investor and impervious to short-term gyrations is that the emotion of fear and pain will eventually make him sell badly."
confidence
3/30/05 Confidence
The Conference Board’s Consumer Confidence Index, a representative sample of 5,000 U.S. households, declined in March to 102.4 from February’s 104.4. It was the second consecutive monthly decline. The Present Situations Index and the Expectations Index both dipped too. The proportion of consumers anticipating their incomes to improve in the months ahead dropped to 16.7% from 18.7% in the prior month.
The Hudson Employment Index declined in March to 101.2 from February’s 102.0. It was the second consecutive decline in worker confidence in the employment market. The crop was driven primarily by declining optimism about personal finances—just 42% of workers now say their finances are getting better, down from 44% a month ago. Additionally, the number reporting that their situation is getting worse rose from 36% to 39%. The current Index figure is significantly lower than one year ago, when the March Index came in at 107.0.
Honda’s U.S. sales declined 8.3% in the first two months of 2005. Over the last 12 months, the company’s U.S. market share has dropped to 6.5% from 7%. The problem lies with declining sales for the Accord and the Civic. Honda offers the lowest incentives in the U.S.
Ralph Waldo Emerson: “ Most of the shadows of this life are caused by standing in one’s sunshine.”
Auto sales in China are expected to increase 10% this year; however, due to rising manufacturing costs, so far this year industry profits are down over 75%. This fact will show up in GM’s quarterly statements.
Daniel Gross: “From the beginning of 2001 to the end of 2003, the economy added $1.317 trillion in GDP and $4.2 trillion in debt. That means that each new dollar of economic output was accompanied by $3.19 in new debt.”
The Nasdaq is trading at a 5-month low. The Dow was recently at 10,900, and last night it settled around 10,400. Last April, Berkshire Hathaway traded at $95,600 a share. Last night it closed at $86,800.
Congressman Ron Paul: “If the federal government won’t stop spending, borrowing, printing, and taxing, we may find ourselves in far worse shape than 30 years ago.”
National Textiles will close its Hodges, Alabama plant and cut 388 jobs. Automotive-parts maker Intermet will close its Decatur, Ill. foundry and 320 employees will lose their jobs. It is too early to tell exactly how the closing could affect its Archer Creek foundry in Lynchburg with its 500 employees.
The British Conservative Party’s commissioned report sated “Britons are facing a $1.92 trillion personal debt time-bomb. The sheer scale of consumer debt has made millions of households extremely vulnerable to shocks in the economy, both from fiscal mismanagement and external factors such as oil price rises, acts of terrorism, and wars. A downturn in the economy would create serious economic and social problems for the 15 million people who struggle with debt repayments.”
Clif Droke, the editor of the daily Durban Deep/XAU Report, mentioned that Dan Ferris, in his Extreme Value Newsletter, referenced a recently published study by real estate economist Michael Sklarz. The latter indicated it is less expensive to rent than to own in Honolulu, New York, Washington, San Francisco, and Southern California. It takes into account the mortgage tax deduction. Ferris observed that “it now makes good financial sense for owners to sell their homes and live in rentals.”
In the week ended March 25, applications for U.S. home mortgages increased 2.4%.
Japan’s February industrial production declined 2.1%, the biggest drop in a year.
China’s stock indexes fell to a 6-year low.
The State Council of China stated “excessive growth in housing prices has directly undermined the ability of city residents to improve their living standards, affected financial and social stability, and even influenced the health of the national economy.”
Ha Jiming, China International’s chief economist: “It’s better for the bubble to burst earlier than later.”
Among Americans who visit a doctor for a new condition, 54% do not treat it with a prescription drug within a year, according to new data from the market research firm Ipsos-Insight.
Albert Szent-Gyorgyi: “Discovery consists of seeing what everybody has seen and thinking what nobody has thought.”
U.S. corporations' before-tax profits from current production jumped 13.4 percent to $1.06 trillion annualized in the fourth quarter, the fastest increase since the second quarter of 1987, the Commerce Department estimated Wednesday. For the year, corporate profits were up 9.5 percent. The government data are adjusted for inventory valuations and capital consumption. There appears to be a disconnect between corporation profits and wages for workers. At what point does employee compensation overtake rising inflation?
The Conference Board’s Consumer Confidence Index, a representative sample of 5,000 U.S. households, declined in March to 102.4 from February’s 104.4. It was the second consecutive monthly decline. The Present Situations Index and the Expectations Index both dipped too. The proportion of consumers anticipating their incomes to improve in the months ahead dropped to 16.7% from 18.7% in the prior month.
The Hudson Employment Index declined in March to 101.2 from February’s 102.0. It was the second consecutive decline in worker confidence in the employment market. The crop was driven primarily by declining optimism about personal finances—just 42% of workers now say their finances are getting better, down from 44% a month ago. Additionally, the number reporting that their situation is getting worse rose from 36% to 39%. The current Index figure is significantly lower than one year ago, when the March Index came in at 107.0.
Honda’s U.S. sales declined 8.3% in the first two months of 2005. Over the last 12 months, the company’s U.S. market share has dropped to 6.5% from 7%. The problem lies with declining sales for the Accord and the Civic. Honda offers the lowest incentives in the U.S.
Ralph Waldo Emerson: “ Most of the shadows of this life are caused by standing in one’s sunshine.”
Auto sales in China are expected to increase 10% this year; however, due to rising manufacturing costs, so far this year industry profits are down over 75%. This fact will show up in GM’s quarterly statements.
Daniel Gross: “From the beginning of 2001 to the end of 2003, the economy added $1.317 trillion in GDP and $4.2 trillion in debt. That means that each new dollar of economic output was accompanied by $3.19 in new debt.”
The Nasdaq is trading at a 5-month low. The Dow was recently at 10,900, and last night it settled around 10,400. Last April, Berkshire Hathaway traded at $95,600 a share. Last night it closed at $86,800.
Congressman Ron Paul: “If the federal government won’t stop spending, borrowing, printing, and taxing, we may find ourselves in far worse shape than 30 years ago.”
National Textiles will close its Hodges, Alabama plant and cut 388 jobs. Automotive-parts maker Intermet will close its Decatur, Ill. foundry and 320 employees will lose their jobs. It is too early to tell exactly how the closing could affect its Archer Creek foundry in Lynchburg with its 500 employees.
The British Conservative Party’s commissioned report sated “Britons are facing a $1.92 trillion personal debt time-bomb. The sheer scale of consumer debt has made millions of households extremely vulnerable to shocks in the economy, both from fiscal mismanagement and external factors such as oil price rises, acts of terrorism, and wars. A downturn in the economy would create serious economic and social problems for the 15 million people who struggle with debt repayments.”
Clif Droke, the editor of the daily Durban Deep/XAU Report, mentioned that Dan Ferris, in his Extreme Value Newsletter, referenced a recently published study by real estate economist Michael Sklarz. The latter indicated it is less expensive to rent than to own in Honolulu, New York, Washington, San Francisco, and Southern California. It takes into account the mortgage tax deduction. Ferris observed that “it now makes good financial sense for owners to sell their homes and live in rentals.”
In the week ended March 25, applications for U.S. home mortgages increased 2.4%.
Japan’s February industrial production declined 2.1%, the biggest drop in a year.
China’s stock indexes fell to a 6-year low.
The State Council of China stated “excessive growth in housing prices has directly undermined the ability of city residents to improve their living standards, affected financial and social stability, and even influenced the health of the national economy.”
Ha Jiming, China International’s chief economist: “It’s better for the bubble to burst earlier than later.”
Among Americans who visit a doctor for a new condition, 54% do not treat it with a prescription drug within a year, according to new data from the market research firm Ipsos-Insight.
Albert Szent-Gyorgyi: “Discovery consists of seeing what everybody has seen and thinking what nobody has thought.”
U.S. corporations' before-tax profits from current production jumped 13.4 percent to $1.06 trillion annualized in the fourth quarter, the fastest increase since the second quarter of 1987, the Commerce Department estimated Wednesday. For the year, corporate profits were up 9.5 percent. The government data are adjusted for inventory valuations and capital consumption. There appears to be a disconnect between corporation profits and wages for workers. At what point does employee compensation overtake rising inflation?
Tuesday, March 29, 2005
Ebb And Flow
3/29/05 Ebb And Flow
Yesterday, the dollar traded at a 6-week high versus the euro, the Swiss franc, and sterling, and a 5-week high versus the yen. With a vision of higher interest rates in coming months, there has been a greater appetite for the greenback. The rally is welcome; however, it is but a bounce within a bear market for the dollar. We’ll see how large everyone’s dollar balls are after China revalues the yuan.
Crude declined 79 cents to $54.05 a barrel. However, gas at the pump rose to $2.19 a gallon.
The Conference Board’s Consumer Confidence Index likely declined in March. It still stands at lofty levels. Until real estate prices undermine confidence, downward direction will be limited. At the same time, the Rydex Advisor Confidence Index, modeled after the Consumer Confidence Index, captures the sentiments of 150 independent registered investment advisors. The Index has been on the decline since December, but edged up in March to 119.90 from 118.08 in February. In March 2004, the Index stood at 122.06.
Mark Twain: “All you need in this life is ignorance and confidence, and then success is sure.”
Steelcase will close two Eastern Avenue plants in Michigan and cut 600 jobs. Delta Airlines will reduce employment by 6,000 to 7,000.
Frank Zarb will replace Hank Greenberg as chairman of AIG.
Wal-Mart shares are edging closer to $50 and Coke’s stock is approaching $40.
France’s business confidence dropped to its lowest level in 15 months. Japan’s household spending declined and unemployment rose. Presently, about one-fifth of Japan’s trade is with China and rising on a yearly basis.
2-year Treasury bonds are yielding 3.86%. The Treasury is auctioning $24 billion of these notes tomorrow. As the yield approaches 4%, they should represent significant competition for equities.
Howard Silverblatt of Standard & Poor’s noted the spread between operating earnings and generally accepted accounting principles rose to 22.3% in the fourth quarter of 2004 versus only 11.3% in the like period one year earlier. Frequently, a high spread can equate to lower quality of earnings. Silverblatt mentioned GE cutting its tax liability in 2004. This provided a non-operational boost to earnings.
More than $20 billion in major cardiovascular drug revenues will be exposed to patent
expiration in the next three to five years.
On April 1, the Skagit County (WA) Tulip Festival begins. For those of you who have not been to Holland, I strongly recommend a visit to Roozengaarde’s acres upon acres of tulips. They also ship bulbs and fresh tulips. The variety is remarkable.
Earl Gray Stevens: “Confidence, like art, never comes from having all the answers; it comes from being open to all the questions.”
Retail sales fell 1.0 percent in the week ended March 26, compared with a 0.2 percent increase the previous week, the International Council of Shopping Centers and UBS said in a joint report. “This past week, the overall pace of sales was inflated by holiday shopping for Easter food, candy and seasonal apparel,'' said Michael Niemira, ICSC's chief economist and director of research.
Yesterday, the dollar traded at a 6-week high versus the euro, the Swiss franc, and sterling, and a 5-week high versus the yen. With a vision of higher interest rates in coming months, there has been a greater appetite for the greenback. The rally is welcome; however, it is but a bounce within a bear market for the dollar. We’ll see how large everyone’s dollar balls are after China revalues the yuan.
Crude declined 79 cents to $54.05 a barrel. However, gas at the pump rose to $2.19 a gallon.
The Conference Board’s Consumer Confidence Index likely declined in March. It still stands at lofty levels. Until real estate prices undermine confidence, downward direction will be limited. At the same time, the Rydex Advisor Confidence Index, modeled after the Consumer Confidence Index, captures the sentiments of 150 independent registered investment advisors. The Index has been on the decline since December, but edged up in March to 119.90 from 118.08 in February. In March 2004, the Index stood at 122.06.
Mark Twain: “All you need in this life is ignorance and confidence, and then success is sure.”
Steelcase will close two Eastern Avenue plants in Michigan and cut 600 jobs. Delta Airlines will reduce employment by 6,000 to 7,000.
Frank Zarb will replace Hank Greenberg as chairman of AIG.
Wal-Mart shares are edging closer to $50 and Coke’s stock is approaching $40.
France’s business confidence dropped to its lowest level in 15 months. Japan’s household spending declined and unemployment rose. Presently, about one-fifth of Japan’s trade is with China and rising on a yearly basis.
2-year Treasury bonds are yielding 3.86%. The Treasury is auctioning $24 billion of these notes tomorrow. As the yield approaches 4%, they should represent significant competition for equities.
Howard Silverblatt of Standard & Poor’s noted the spread between operating earnings and generally accepted accounting principles rose to 22.3% in the fourth quarter of 2004 versus only 11.3% in the like period one year earlier. Frequently, a high spread can equate to lower quality of earnings. Silverblatt mentioned GE cutting its tax liability in 2004. This provided a non-operational boost to earnings.
More than $20 billion in major cardiovascular drug revenues will be exposed to patent
expiration in the next three to five years.
On April 1, the Skagit County (WA) Tulip Festival begins. For those of you who have not been to Holland, I strongly recommend a visit to Roozengaarde’s acres upon acres of tulips. They also ship bulbs and fresh tulips. The variety is remarkable.
Earl Gray Stevens: “Confidence, like art, never comes from having all the answers; it comes from being open to all the questions.”
Retail sales fell 1.0 percent in the week ended March 26, compared with a 0.2 percent increase the previous week, the International Council of Shopping Centers and UBS said in a joint report. “This past week, the overall pace of sales was inflated by holiday shopping for Easter food, candy and seasonal apparel,'' said Michael Niemira, ICSC's chief economist and director of research.
Ebb And Flow
3/29/05 Ebb And Flow
Yesterday, the dollar traded at a 6-week high versus the euro, the Swiss franc, and sterling, and a 5-week high versus the yen. With a vision of higher interest rates in coming months, there has been a greater appetite for the greenback. The rally is welcome; however, it is but a bounce within a bear market for the dollar. We’ll see how large everyone’s dollar balls are after China revalues the yuan.
Crude declined 79 cents to $54.05 a barrel. However, gas at the pump rose to $2.19 a gallon.
The Conference Board’s Consumer Confidence Index likely declined in March. It still stands at lofty levels. Until real estate prices undermine confidence, downward direction will be limited. At the same time, the Rydex Advisor Confidence Index, modeled after the Consumer Confidence Index, captures the sentiments of 150 independent registered investment advisors. The Index has been on the decline since December, but edged up in March to 119.90 from 118.08 in February. In March 2004, the Index stood at 122.06.
Mark Twain: “All you need in this life is ignorance and confidence, and then success is sure.”
Steelcase will close two Eastern Avenue plants in Michigan and cut 600 jobs. Delta Airlines will reduce employment by 6,000 to 7,000.
Frank Zarb will replace Hank Greenberg as chairman of AIG.
Wal-Mart shares are edging closer to $50 and Coke’s stock is approaching $40.
France’s business confidence dropped to its lowest level in 15 months. Japan’s household spending declined and unemployment rose. Presently, about one-fifth of Japan’s trade is with China and rising on a yearly basis.
2-year Treasury bonds are yielding 3.86%. The Treasury is auctioning $24 billion of these notes tomorrow. As the yield approaches 4%, they should represent significant competition for equities.
Howard Silverblatt of Standard & Poor’s noted the spread between operating earnings and generally accepted accounting principles rose to 22.3% in the fourth quarter of 2004 versus only 11.3% in the like period one year earlier. Frequently, a high spread can equate to lower quality of earnings. Silverblatt mentioned GE cutting its tax liability in 2004. This provided a non-operational boost to earnings.
More than $20 billion in major cardiovascular drug revenues will be exposed to patent
expiration in the next three to five years.
On April 1, the Skagit County (WA) Tulip Festival begins. For those of you who have not been to Holland, I strongly recommend a visit to Roozengaarde’s acres upon acres of tulips. They also ship bulbs and fresh tulips. The variety is remarkable.
Earl Gray Stevens: “Confidence, like art, never comes from having all the answers; it comes from being open to all the questions.”
Retail sales fell 1.0 percent in the week ended March 26, compared with a 0.2 percent increase the previous week, the International Council of Shopping Centers and UBS said in a joint report. “This past week, the overall pace of sales was inflated by holiday shopping for Easter food, candy and seasonal apparel,'' said Michael Niemira, ICSC's chief economist and director of research.
Yesterday, the dollar traded at a 6-week high versus the euro, the Swiss franc, and sterling, and a 5-week high versus the yen. With a vision of higher interest rates in coming months, there has been a greater appetite for the greenback. The rally is welcome; however, it is but a bounce within a bear market for the dollar. We’ll see how large everyone’s dollar balls are after China revalues the yuan.
Crude declined 79 cents to $54.05 a barrel. However, gas at the pump rose to $2.19 a gallon.
The Conference Board’s Consumer Confidence Index likely declined in March. It still stands at lofty levels. Until real estate prices undermine confidence, downward direction will be limited. At the same time, the Rydex Advisor Confidence Index, modeled after the Consumer Confidence Index, captures the sentiments of 150 independent registered investment advisors. The Index has been on the decline since December, but edged up in March to 119.90 from 118.08 in February. In March 2004, the Index stood at 122.06.
Mark Twain: “All you need in this life is ignorance and confidence, and then success is sure.”
Steelcase will close two Eastern Avenue plants in Michigan and cut 600 jobs. Delta Airlines will reduce employment by 6,000 to 7,000.
Frank Zarb will replace Hank Greenberg as chairman of AIG.
Wal-Mart shares are edging closer to $50 and Coke’s stock is approaching $40.
France’s business confidence dropped to its lowest level in 15 months. Japan’s household spending declined and unemployment rose. Presently, about one-fifth of Japan’s trade is with China and rising on a yearly basis.
2-year Treasury bonds are yielding 3.86%. The Treasury is auctioning $24 billion of these notes tomorrow. As the yield approaches 4%, they should represent significant competition for equities.
Howard Silverblatt of Standard & Poor’s noted the spread between operating earnings and generally accepted accounting principles rose to 22.3% in the fourth quarter of 2004 versus only 11.3% in the like period one year earlier. Frequently, a high spread can equate to lower quality of earnings. Silverblatt mentioned GE cutting its tax liability in 2004. This provided a non-operational boost to earnings.
More than $20 billion in major cardiovascular drug revenues will be exposed to patent
expiration in the next three to five years.
On April 1, the Skagit County (WA) Tulip Festival begins. For those of you who have not been to Holland, I strongly recommend a visit to Roozengaarde’s acres upon acres of tulips. They also ship bulbs and fresh tulips. The variety is remarkable.
Earl Gray Stevens: “Confidence, like art, never comes from having all the answers; it comes from being open to all the questions.”
Retail sales fell 1.0 percent in the week ended March 26, compared with a 0.2 percent increase the previous week, the International Council of Shopping Centers and UBS said in a joint report. “This past week, the overall pace of sales was inflated by holiday shopping for Easter food, candy and seasonal apparel,'' said Michael Niemira, ICSC's chief economist and director of research.
Monday, March 28, 2005
The Nuance Of Thinking
3/28/05 The Nuance Of Thinking
Yuan deposits continue to mount. The time is approaching for the Chinese Premier to alter the current peg to the dollar by at least 4 to 5%. When he makes that decision, he will sleep better.
Henry Ford: “Thinking is the hardest work there is, which is probably the reason so few engage in it.”
Some weeks back, I mentioned the Motorola iRadio, a new service to download radio and MP3 music collections to cell phones with “seamless mobility.” With 10 hours of continuous programming, the music can be heard in a car, in a gym, or on the beach. Robert Unmacht, partner in In3 Partners, stated “iRadio is the beginning of many things to come.”
Silver Lake Partners and six other LBO firms announced an agreement to purchase SunGuard Data Systems for $36 a hare in cash or $11.3 billion. It is the largest LBO since the 1989 purchase of RJR Nabisco. Hopefully, this latest deal will prove more successful. Big is not necessarily better.
Qatar’s Abdullah bin Hamad al-Attiyah is a former president of OPEC. He stated yesterday that “we believe there is no shortage of supply. Traders aren’t asking for extra cargoes, so any output increase by the group must be carefully considered.” Last week the price of crude declined 3.3%. With well-stocked supplies, crude prices should continue to decline—at least in the short term. This should place a lid on energy related securities.
According to the Miami Herald, more than 55,000 residential condo units are in “some phase” of development. By comparison, only 7,000 condo units, according to the Miami Herald, were built over the last 10 years. The Florida Association of Realtors estimates the median sales price of an existing home at more than $300,000 in Miami-Dade. That’s up more than 28% in a year. As an officer of a large South Florida mortgage told the Herald, “our median incomes would indicate an affordable home is sub-$200,000.”
This Friday is April 1, the beginning of the second quarter. The Labor Department will release its employment report for March and GM and Ford will provide their sales for the month of March. In the meantime, the next four trading days shall be comprised of much window-dressing for the quarter. It can be compared to the world of staging prior to placing a home on the market for sale. Both are an illusion. It requires some original thought to realize what the true inside of a portfolio or the real inside of a home looks like in the day-to-day world.
Albert Einstein: “I think and think for months and years. Ninety-nine times, the conclusion is false. The hundredth time I am right.”
People getting tax refunds this year are averaging amounts of $2,294, according to the IRS.
BlogMatrix is first to market with an integrated podcasting/podcatching application. With BlogMatrix Sparks! podcasters can record podcasts directly on their computer with a microphone and a mouse click. Music can be mixed with the podcast. One can record up to 8 tracks for a single podcast. In addition, podcasts can be automatically stored on the BlogMatrix server for others to enjoy. As previously mentioned, a podcast is an online audio file stored on a website that can be automatically downloaded to your iPod or other portable media player. It enables the development of independent radio station programs as well as a usage for training and promotional messaging.
Yuan deposits continue to mount. The time is approaching for the Chinese Premier to alter the current peg to the dollar by at least 4 to 5%. When he makes that decision, he will sleep better.
Henry Ford: “Thinking is the hardest work there is, which is probably the reason so few engage in it.”
Some weeks back, I mentioned the Motorola iRadio, a new service to download radio and MP3 music collections to cell phones with “seamless mobility.” With 10 hours of continuous programming, the music can be heard in a car, in a gym, or on the beach. Robert Unmacht, partner in In3 Partners, stated “iRadio is the beginning of many things to come.”
Silver Lake Partners and six other LBO firms announced an agreement to purchase SunGuard Data Systems for $36 a hare in cash or $11.3 billion. It is the largest LBO since the 1989 purchase of RJR Nabisco. Hopefully, this latest deal will prove more successful. Big is not necessarily better.
Qatar’s Abdullah bin Hamad al-Attiyah is a former president of OPEC. He stated yesterday that “we believe there is no shortage of supply. Traders aren’t asking for extra cargoes, so any output increase by the group must be carefully considered.” Last week the price of crude declined 3.3%. With well-stocked supplies, crude prices should continue to decline—at least in the short term. This should place a lid on energy related securities.
According to the Miami Herald, more than 55,000 residential condo units are in “some phase” of development. By comparison, only 7,000 condo units, according to the Miami Herald, were built over the last 10 years. The Florida Association of Realtors estimates the median sales price of an existing home at more than $300,000 in Miami-Dade. That’s up more than 28% in a year. As an officer of a large South Florida mortgage told the Herald, “our median incomes would indicate an affordable home is sub-$200,000.”
This Friday is April 1, the beginning of the second quarter. The Labor Department will release its employment report for March and GM and Ford will provide their sales for the month of March. In the meantime, the next four trading days shall be comprised of much window-dressing for the quarter. It can be compared to the world of staging prior to placing a home on the market for sale. Both are an illusion. It requires some original thought to realize what the true inside of a portfolio or the real inside of a home looks like in the day-to-day world.
Albert Einstein: “I think and think for months and years. Ninety-nine times, the conclusion is false. The hundredth time I am right.”
People getting tax refunds this year are averaging amounts of $2,294, according to the IRS.
BlogMatrix is first to market with an integrated podcasting/podcatching application. With BlogMatrix Sparks! podcasters can record podcasts directly on their computer with a microphone and a mouse click. Music can be mixed with the podcast. One can record up to 8 tracks for a single podcast. In addition, podcasts can be automatically stored on the BlogMatrix server for others to enjoy. As previously mentioned, a podcast is an online audio file stored on a website that can be automatically downloaded to your iPod or other portable media player. It enables the development of independent radio station programs as well as a usage for training and promotional messaging.
The Nuance Of Thinking
3/28/05 The Nuance Of Thinking
Yuan deposits continue to mount. The time is approaching for the Chinese Premier to alter the current peg to the dollar by at least 4 to 5%. When he makes that decision, he will sleep better.
Henry Ford: “Thinking is the hardest work there is, which is probably the reason so few engage in it.”
Some weeks back, I mentioned the Motorola iRadio, a new service to download radio and MP3 music collections to cell phones with “seamless mobility.” With 10 hours of continuous programming, the music can be heard in a car, in a gym, or on the beach. Robert Unmacht, partner in In3 Partners, stated “iRadio is the beginning of many things to come.”
Silver Lake Partners and six other LBO firms announced an agreement to purchase SunGuard Data Systems for $36 a hare in cash or $11.3 billion. It is the largest LBO since the 1989 purchase of RJR Nabisco. Hopefully, this latest deal will prove more successful. Big is not necessarily better.
Qatar’s Abdullah bin Hamad al-Attiyah is a former president of OPEC. He stated yesterday that “we believe there is no shortage of supply. Traders aren’t asking for extra cargoes, so any output increase by the group must be carefully considered.” Last week the price of crude declined 3.3%. With well-stocked supplies, crude prices should continue to decline—at least in the short term. This should place a lid on energy related securities.
According to the Miami Herald, more than 55,000 residential condo units are in “some phase” of development. By comparison, only 7,000 condo units, according to the Miami Herald, were built over the last 10 years. The Florida Association of Realtors estimates the median sales price of an existing home at more than $300,000 in Miami-Dade. That’s up more than 28% in a year. As an officer of a large South Florida mortgage told the Herald, “our median incomes would indicate an affordable home is sub-$200,000.”
This Friday is April 1, the beginning of the second quarter. The Labor Department will release its employment report for March and GM and Ford will provide their sales for the month of March. In the meantime, the next four trading days shall be comprised of much window-dressing for the quarter. It can be compared to the world of staging prior to placing a home on the market for sale. Both are an illusion. It requires some original thought to realize what the true inside of a portfolio or the real inside of a home looks like in the day-to-day world.
Albert Einstein: “I think and think for months and years. Ninety-nine times, the conclusion is false. The hundredth time I am right.”
People getting tax refunds this year are averaging amounts of $2,294, according to the IRS.
BlogMatrix is first to market with an integrated podcasting/podcatching application. With BlogMatrix Sparks! podcasters can record podcasts directly on their computer with a microphone and a mouse click. Music can be mixed with the podcast. One can record up to 8 tracks for a single podcast. In addition, podcasts can be automatically stored on the BlogMatrix server for others to enjoy. As previously mentioned, a podcast is an online audio file stored on a website that can be automatically downloaded to your iPod or other portable media player. It enables the development of independent radio station programs as well as a usage for training and promotional messaging.
Yuan deposits continue to mount. The time is approaching for the Chinese Premier to alter the current peg to the dollar by at least 4 to 5%. When he makes that decision, he will sleep better.
Henry Ford: “Thinking is the hardest work there is, which is probably the reason so few engage in it.”
Some weeks back, I mentioned the Motorola iRadio, a new service to download radio and MP3 music collections to cell phones with “seamless mobility.” With 10 hours of continuous programming, the music can be heard in a car, in a gym, or on the beach. Robert Unmacht, partner in In3 Partners, stated “iRadio is the beginning of many things to come.”
Silver Lake Partners and six other LBO firms announced an agreement to purchase SunGuard Data Systems for $36 a hare in cash or $11.3 billion. It is the largest LBO since the 1989 purchase of RJR Nabisco. Hopefully, this latest deal will prove more successful. Big is not necessarily better.
Qatar’s Abdullah bin Hamad al-Attiyah is a former president of OPEC. He stated yesterday that “we believe there is no shortage of supply. Traders aren’t asking for extra cargoes, so any output increase by the group must be carefully considered.” Last week the price of crude declined 3.3%. With well-stocked supplies, crude prices should continue to decline—at least in the short term. This should place a lid on energy related securities.
According to the Miami Herald, more than 55,000 residential condo units are in “some phase” of development. By comparison, only 7,000 condo units, according to the Miami Herald, were built over the last 10 years. The Florida Association of Realtors estimates the median sales price of an existing home at more than $300,000 in Miami-Dade. That’s up more than 28% in a year. As an officer of a large South Florida mortgage told the Herald, “our median incomes would indicate an affordable home is sub-$200,000.”
This Friday is April 1, the beginning of the second quarter. The Labor Department will release its employment report for March and GM and Ford will provide their sales for the month of March. In the meantime, the next four trading days shall be comprised of much window-dressing for the quarter. It can be compared to the world of staging prior to placing a home on the market for sale. Both are an illusion. It requires some original thought to realize what the true inside of a portfolio or the real inside of a home looks like in the day-to-day world.
Albert Einstein: “I think and think for months and years. Ninety-nine times, the conclusion is false. The hundredth time I am right.”
People getting tax refunds this year are averaging amounts of $2,294, according to the IRS.
BlogMatrix is first to market with an integrated podcasting/podcatching application. With BlogMatrix Sparks! podcasters can record podcasts directly on their computer with a microphone and a mouse click. Music can be mixed with the podcast. One can record up to 8 tracks for a single podcast. In addition, podcasts can be automatically stored on the BlogMatrix server for others to enjoy. As previously mentioned, a podcast is an online audio file stored on a website that can be automatically downloaded to your iPod or other portable media player. It enables the development of independent radio station programs as well as a usage for training and promotional messaging.
The Nuance Of Thinking
3/28/05 The Nuance Of Thinking
Yuan deposits continue to mount. The time is approaching for the Chinese Premier to alter the current peg to the dollar by at least 4 to 5%. When he makes that decision, he will sleep better.
Henry Ford: “Thinking is the hardest work there is, which is probably the reason so few engage in it.”
Some weeks back, I mentioned the Motorola iRadio, a new service to download radio and MP3 music collections to cell phones with “seamless mobility.” With 10 hours of continuous programming, the music can be heard in a car, in a gym, or on the beach. Robert Unmacht, partner in In3 Partners, stated “iRadio is the beginning of many things to come.”
Silver Lake Partners and six other LBO firms announced an agreement to purchase SunGuard Data Systems for $36 a hare in cash or $11.3 billion. It is the largest LBO since the 1989 purchase of RJR Nabisco. Hopefully, this latest deal will prove more successful. Big is not necessarily better.
Qatar’s Abdullah bin Hamad al-Attiyah is a former president of OPEC. He stated yesterday that “we believe there is no shortage of supply. Traders aren’t asking for extra cargoes, so any output increase by the group must be carefully considered.” Last week the price of crude declined 3.3%. With well-stocked supplies, crude prices should continue to decline—at least in the short term. This should place a lid on energy related securities.
According to the Miami Herald, more than 55,000 residential condo units are in “some phase” of development. By comparison, only 7,000 condo units, according to the Miami Herald, were built over the last 10 years. The Florida Association of Realtors estimates the median sales price of an existing home at more than $300,000 in Miami-Dade. That’s up more than 28% in a year. As an officer of a large South Florida mortgage told the Herald, “our median incomes would indicate an affordable home is sub-$200,000.”
This Friday is April 1, the beginning of the second quarter. The Labor Department will release its employment report for March and GM and Ford will provide their sales for the month of March. In the meantime, the next four trading days shall be comprised of much window-dressing for the quarter. It can be compared to the world of staging prior to placing a home on the market for sale. Both are an illusion. It requires some original thought to realize what the true inside of a portfolio or the real inside of a home looks like in the day-to-day world.
Albert Einstein: “I think and think for months and years. Ninety-nine times, the conclusion is false. The hundredth time I am right.”
People getting tax refunds this year are averaging amounts of $2,294, according to the IRS.
BlogMatrix is first to market with an integrated podcasting/podcatching application. With BlogMatrix Sparks! podcasters can record podcasts directly on their computer with a microphone and a mouse click. Music can be mixed with the podcast. One can record up to 8 tracks for a single podcast. In addition, podcasts can be automatically stored on the BlogMatrix server for others to enjoy. As previously mentioned, a podcast is an online audio file stored on a website that can be automatically downloaded to your iPod or other portable media player. It enables the development of independent radio station programs as well as a usage for training and promotional messaging.
Yuan deposits continue to mount. The time is approaching for the Chinese Premier to alter the current peg to the dollar by at least 4 to 5%. When he makes that decision, he will sleep better.
Henry Ford: “Thinking is the hardest work there is, which is probably the reason so few engage in it.”
Some weeks back, I mentioned the Motorola iRadio, a new service to download radio and MP3 music collections to cell phones with “seamless mobility.” With 10 hours of continuous programming, the music can be heard in a car, in a gym, or on the beach. Robert Unmacht, partner in In3 Partners, stated “iRadio is the beginning of many things to come.”
Silver Lake Partners and six other LBO firms announced an agreement to purchase SunGuard Data Systems for $36 a hare in cash or $11.3 billion. It is the largest LBO since the 1989 purchase of RJR Nabisco. Hopefully, this latest deal will prove more successful. Big is not necessarily better.
Qatar’s Abdullah bin Hamad al-Attiyah is a former president of OPEC. He stated yesterday that “we believe there is no shortage of supply. Traders aren’t asking for extra cargoes, so any output increase by the group must be carefully considered.” Last week the price of crude declined 3.3%. With well-stocked supplies, crude prices should continue to decline—at least in the short term. This should place a lid on energy related securities.
According to the Miami Herald, more than 55,000 residential condo units are in “some phase” of development. By comparison, only 7,000 condo units, according to the Miami Herald, were built over the last 10 years. The Florida Association of Realtors estimates the median sales price of an existing home at more than $300,000 in Miami-Dade. That’s up more than 28% in a year. As an officer of a large South Florida mortgage told the Herald, “our median incomes would indicate an affordable home is sub-$200,000.”
This Friday is April 1, the beginning of the second quarter. The Labor Department will release its employment report for March and GM and Ford will provide their sales for the month of March. In the meantime, the next four trading days shall be comprised of much window-dressing for the quarter. It can be compared to the world of staging prior to placing a home on the market for sale. Both are an illusion. It requires some original thought to realize what the true inside of a portfolio or the real inside of a home looks like in the day-to-day world.
Albert Einstein: “I think and think for months and years. Ninety-nine times, the conclusion is false. The hundredth time I am right.”
People getting tax refunds this year are averaging amounts of $2,294, according to the IRS.
BlogMatrix is first to market with an integrated podcasting/podcatching application. With BlogMatrix Sparks! podcasters can record podcasts directly on their computer with a microphone and a mouse click. Music can be mixed with the podcast. One can record up to 8 tracks for a single podcast. In addition, podcasts can be automatically stored on the BlogMatrix server for others to enjoy. As previously mentioned, a podcast is an online audio file stored on a website that can be automatically downloaded to your iPod or other portable media player. It enables the development of independent radio station programs as well as a usage for training and promotional messaging.
The Nuance Of Thinking
3/28/05 The Nuance Of Thinking
Yuan deposits continue to mount. The time is approaching for the Chinese Premier to alter the current peg to the dollar by at least 4 to 5%. When he makes that decision, he will sleep better.
Henry Ford: “Thinking is the hardest work there is, which is probably the reason so few engage in it.”
Some weeks back, I mentioned the Motorola iRadio, a new service to download radio and MP3 music collections to cell phones with “seamless mobility.” With 10 hours of continuous programming, the music can be heard in a car, in a gym, or on the beach. Robert Unmacht, partner in In3 Partners, stated “iRadio is the beginning of many things to come.”
Silver Lake Partners and six other LBO firms announced an agreement to purchase SunGuard Data Systems for $36 a hare in cash or $11.3 billion. It is the largest LBO since the 1989 purchase of RJR Nabisco. Hopefully, this latest deal will prove more successful. Big is not necessarily better.
Qatar’s Abdullah bin Hamad al-Attiyah is a former president of OPEC. He stated yesterday that “we believe there is no shortage of supply. Traders aren’t asking for extra cargoes, so any output increase by the group must be carefully considered.” Last week the price of crude declined 3.3%. With well-stocked supplies, crude prices should continue to decline—at least in the short term. This should place a lid on energy related securities.
According to the Miami Herald, more than 55,000 residential condo units are in “some phase” of development. By comparison, only 7,000 condo units, according to the Miami Herald, were built over the last 10 years. The Florida Association of Realtors estimates the median sales price of an existing home at more than $300,000 in Miami-Dade. That’s up more than 28% in a year. As an officer of a large South Florida mortgage told the Herald, “our median incomes would indicate an affordable home is sub-$200,000.”
This Friday is April 1, the beginning of the second quarter. The Labor Department will release its employment report for March and GM and Ford will provide their sales for the month of March. In the meantime, the next four trading days shall be comprised of much window-dressing for the quarter. It can be compared to the world of staging prior to placing a home on the market for sale. Both are an illusion. It requires some original thought to realize what the true inside of a portfolio or the real inside of a home looks like in the day-to-day world.
Albert Einstein: “I think and think for months and years. Ninety-nine times, the conclusion is false. The hundredth time I am right.”
People getting tax refunds this year are averaging amounts of $2,294, according to the IRS.
BlogMatrix is first to market with an integrated podcasting/podcatching application. With BlogMatrix Sparks! podcasters can record podcasts directly on their computer with a microphone and a mouse click. Music can be mixed with the podcast. One can record up to 8 tracks for a single podcast. In addition, podcasts can be automatically stored on the BlogMatrix server for others to enjoy. As previously mentioned, a podcast is an online audio file stored on a website that can be automatically downloaded to your iPod or other portable media player. It enables the development of independent radio station programs as well as a usage for training and promotional messaging.
Yuan deposits continue to mount. The time is approaching for the Chinese Premier to alter the current peg to the dollar by at least 4 to 5%. When he makes that decision, he will sleep better.
Henry Ford: “Thinking is the hardest work there is, which is probably the reason so few engage in it.”
Some weeks back, I mentioned the Motorola iRadio, a new service to download radio and MP3 music collections to cell phones with “seamless mobility.” With 10 hours of continuous programming, the music can be heard in a car, in a gym, or on the beach. Robert Unmacht, partner in In3 Partners, stated “iRadio is the beginning of many things to come.”
Silver Lake Partners and six other LBO firms announced an agreement to purchase SunGuard Data Systems for $36 a hare in cash or $11.3 billion. It is the largest LBO since the 1989 purchase of RJR Nabisco. Hopefully, this latest deal will prove more successful. Big is not necessarily better.
Qatar’s Abdullah bin Hamad al-Attiyah is a former president of OPEC. He stated yesterday that “we believe there is no shortage of supply. Traders aren’t asking for extra cargoes, so any output increase by the group must be carefully considered.” Last week the price of crude declined 3.3%. With well-stocked supplies, crude prices should continue to decline—at least in the short term. This should place a lid on energy related securities.
According to the Miami Herald, more than 55,000 residential condo units are in “some phase” of development. By comparison, only 7,000 condo units, according to the Miami Herald, were built over the last 10 years. The Florida Association of Realtors estimates the median sales price of an existing home at more than $300,000 in Miami-Dade. That’s up more than 28% in a year. As an officer of a large South Florida mortgage told the Herald, “our median incomes would indicate an affordable home is sub-$200,000.”
This Friday is April 1, the beginning of the second quarter. The Labor Department will release its employment report for March and GM and Ford will provide their sales for the month of March. In the meantime, the next four trading days shall be comprised of much window-dressing for the quarter. It can be compared to the world of staging prior to placing a home on the market for sale. Both are an illusion. It requires some original thought to realize what the true inside of a portfolio or the real inside of a home looks like in the day-to-day world.
Albert Einstein: “I think and think for months and years. Ninety-nine times, the conclusion is false. The hundredth time I am right.”
People getting tax refunds this year are averaging amounts of $2,294, according to the IRS.
BlogMatrix is first to market with an integrated podcasting/podcatching application. With BlogMatrix Sparks! podcasters can record podcasts directly on their computer with a microphone and a mouse click. Music can be mixed with the podcast. One can record up to 8 tracks for a single podcast. In addition, podcasts can be automatically stored on the BlogMatrix server for others to enjoy. As previously mentioned, a podcast is an online audio file stored on a website that can be automatically downloaded to your iPod or other portable media player. It enables the development of independent radio station programs as well as a usage for training and promotional messaging.
Sunday, March 27, 2005
Trends And Services
3/27/05 Trends And Services
Andrew E. Fekete: “There is no valid argument why the Treasury or the Federal Reserve banks should be given the privilege to issue liabilities which they had neither the means nor the intention to honor while the same, if committed by private parties, is treated as a serious crime punishable by severe penalties as specified by the Criminal Code. On the contrary, in jurisprudence the principle of double standard of justice is rejected, not just because it is unfair but, for the stronger reason, because it is self-defeating.” Basically, Professor Fekete is maintaining that the on-going issuance of Treasury debt securities can be likened to check kiting.
With the newly-found strength in the dollar, continued upward commodity prices are suspect at best. This is why I suggested cutting back on positions in both commodities and their sister stocks. Until the dollar fades once again, and it will, I would use short-term rallies to reduce positions in commodities and related stocks.
Wal-Mart, in its weekly Saturday update, stated the sale of Easter merchandise has been running slightly less than last year. In addition, because of unseasonable weather, the company is behind plan to launch sales for spring products.
Amazon recently launched a search engine called A9 that remembers everything you’ve searched for on its website.
Beginning in April, Visa will tack on a 1% charge any time its plastic card is utilized abroad.
The new Napster To Go music service, at $14.95 a month, offers the right to download as much music as you can get into a portable player. You can listen as often as you wish as log as you maintain your monthly subscription to the service.
GE’s finance arm is planning to acquire a bank in India.
India’s Science and Technology Minister stated the country’s biotech industry will achieve its target market size of $1 billion in 2005 and $5 billion by 2010.
Americans ponder what is left of our manufacturing base. The answer is our defense industry. For example, we are selling F-16 fighter planes to Pakistan. Another potential customer for our array of defense products is India.
As of March 15, short interest on the Nasdaq rose to 5.577 billion shares, its highest level ever, up from 5.357 billion in the previous month. Short interest on the NYSE, as of March 15, rose to 8.419 billion shares, up from 8.007 billion shares on February 15.
Andrew E. Fekete: “There is no valid argument why the Treasury or the Federal Reserve banks should be given the privilege to issue liabilities which they had neither the means nor the intention to honor while the same, if committed by private parties, is treated as a serious crime punishable by severe penalties as specified by the Criminal Code. On the contrary, in jurisprudence the principle of double standard of justice is rejected, not just because it is unfair but, for the stronger reason, because it is self-defeating.” Basically, Professor Fekete is maintaining that the on-going issuance of Treasury debt securities can be likened to check kiting.
With the newly-found strength in the dollar, continued upward commodity prices are suspect at best. This is why I suggested cutting back on positions in both commodities and their sister stocks. Until the dollar fades once again, and it will, I would use short-term rallies to reduce positions in commodities and related stocks.
Wal-Mart, in its weekly Saturday update, stated the sale of Easter merchandise has been running slightly less than last year. In addition, because of unseasonable weather, the company is behind plan to launch sales for spring products.
Amazon recently launched a search engine called A9 that remembers everything you’ve searched for on its website.
Beginning in April, Visa will tack on a 1% charge any time its plastic card is utilized abroad.
The new Napster To Go music service, at $14.95 a month, offers the right to download as much music as you can get into a portable player. You can listen as often as you wish as log as you maintain your monthly subscription to the service.
GE’s finance arm is planning to acquire a bank in India.
India’s Science and Technology Minister stated the country’s biotech industry will achieve its target market size of $1 billion in 2005 and $5 billion by 2010.
Americans ponder what is left of our manufacturing base. The answer is our defense industry. For example, we are selling F-16 fighter planes to Pakistan. Another potential customer for our array of defense products is India.
As of March 15, short interest on the Nasdaq rose to 5.577 billion shares, its highest level ever, up from 5.357 billion in the previous month. Short interest on the NYSE, as of March 15, rose to 8.419 billion shares, up from 8.007 billion shares on February 15.
Subscribe to:
Posts (Atom)