Big banks have raised billions since the stress tests and policymakers are now turning their bailout affections to life insurers and automakers. Is the government trying to tell us the crisis in the financial sector (proper) is over?
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
Faced with the choice between changing one's mind and proving that there is no need to do so, almost everyone gets busy on the proof. —John Kenneth Galbraith
Putting aside its incredible product line and pipeline of more, its still attractive valuation relative to earnings, and its $100 per share of cash that may be used for a dividend soon, Apple's stock has gone parabolic. And, parabolic moves always end one way, back to the place where the parabolic move began. Now, AAPL can of course power higher to who knows where in this move but the largest market cap stock in the world has now entered a tenuous phase, strictly technically speaking. But I digress. German investor confidence, the ZEW, in the next 6 months rose back...
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May 21st, 2009 at 10:27 pm
I’m convinced. The crisis is over. Nothing but green shoots as far as the eye can see. Bernanke and Geithner are super duper. Consumer spending is on the march, even though we are losing jobs at a tremendous pace – because unemployment is a lagging indicator and can therefore be completely ignored. I see lots more capex, because CRE is looking really good right now. Second and third derivatives are what to look at, not the actual values. Get out of cash, sell your bonds, and go all into stocks, especially bank stocks. No way you can lose.
Excuse me, I have to take my meds now.
May 21st, 2009 at 11:10 pm
quiddity,
What stocks would you recommend buying? homebuilders, money-center banks, commercial REITs? Let us know because we’ve got trillions “sitting on the sidelines” chomping at the bit to buy at these “cheap” valuations.
P.S. Don’t forget about the mustard seeds and crocuses (or is it croci?).
May 22nd, 2009 at 12:01 am
Wow, just found out those green shoots are really in! Apparently they are using a new fertilizer called Soylent Green which is doing a wonderful job!
May 22nd, 2009 at 12:06 am
tradeking: I like ALL of those categories that you list. In fact, I’d recommend leveraging to the limit so that you get the most action in the coming months. You are right, “cheap” is an accurate description and now you’ve got me even more excited about plunging in to the markets. Tomorrow I’m going to call my sister for a loan and also hock a bunch of stuff, maybe even my car, and go long, long, loooooong!