My morning reads to start your week:

• Here Comes the Next Hot Emerging Market: the U.S. (WSJ)
• The Fundamentals of Market Tops (The Aleph Blog) see also Finding the best four-year market forecaster (MarketWatch)
• Wall Street betting billions on single-family homes in distressed markets (Washington Post)
• Copper Plunges To 18-Month Low– FCX Tumbles With It (ChartWatchers)
• Hedge Fund Gold Wagers Defy Worst Slump in 33 Years (Bloomberg) see also A Technical View for Gold (ChartWatchers)
• Fracking comes to China (CNNMoney)
• Japan Inc. Hesitates to Invest as Yen Spurs Nikkei Rally (Bloomberg)
• How much of Reinhart/Rogoff has survived? (
• Why is a commissioner on the Securities and Exchange Commission giving broad investing advice? (Self-Evident)
• This Is the Modern Manhunt: The FBI, the Hive Mind and the Boston Bombers (Wired)

What are you reading?


Stock Rally Strikes a Defensive Tone

Source: WSJ

Category: Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

17 Responses to “10 Monday Reads”

  1. Mike in Nola says:

    MSFT lumbering towards cool.

    • S Brennan says:

      I wonder if Businesses understand that all these GUI inter-phase changes cost them billions in lost productivity as workers relearn simple tasks all in order to keep Microsoft releases “new”?

      • Mike in Nola says:

        Don’t know if you are referring to MSFT or the business customers.

        The customers are very slow in adopting new versions. That’s why it will still be supporting XP until next year, over a decade after it was released. It has long known it cannot pull a Steve Jobs and say you have to buy new machines if you want support. Businesses would not tolerate that. That is one reason MSFT is viewed as lumbering: it’s business customers are its bread and butter and it has been lumbering along at their pace. That also has been a cushion; Apple has to keep people upgrading to the latest and greatest to keep up spectacular earnings for shareholders while MSFT just keeps collecting their billions of $ each quarter.

        Those businesses with what is basically a business subscription have “downgrade rights,” i.e. that can run any version of Windows they want and it will be supported for a very long period.

        No one except the tech press that likes to dump on MSFT ever expected business to adopt Windows 8 for years. Most are just getting around to Windows 7 three yeasr after release. Win8 is the forward looking release.

        BTW, latest scuttlebutt is that Windows Blue, the update to the newest operating systems, will bring back a version of the start button and incorporate a boot-to-desktop option for those who don’t want Metro, e.g. businesses. These features may be limited to business versions. My guess is that, now that they are free of Sinofsky, they can go by customer feedback instead of his dictates. Sinofsky fancied himself another Jobs and never sought feedback from customers or ran a traditional beta program to get feedback from sophisticated users. Unfortunately, there are not that many Steve Jobs around and even he had some bombs.

        In the meantime, the last earning repost wasn’t bad for a company undergoing what has been trumpeted as a total collapse. I suppose with the press worrying about Apple, no one noticed.

  2. Mike in Nola says:

    Went to look at Reuter’s this morning but that had a headline story about the “aggressive” prosecutor Carmen Ortiz who drove Aaron Swartz to suicide over a victimless crime because she could while the bomb plot was proceeding apace. Nothing like having your priorities straight.

  3. S Brennan says:

    “The bill title is S.744 Border Security, Economic Opportunity, and Immigration Modernization Act,

    The bill increase H-1B Visas from 85,000 to 135,000, allowing the limit to go to 180,000 per year. Basically that’s all of the jobs created each year in STEM occupations…in this bill there would be no limits or instant green cards for the occupational categories below.

    The bill exempts the following categories from the annual numerical limits: derivative beneficiaries of employment-based immigrants (all relatives); aliens of extraordinary ability in the sciences, arts, education, business or athletics; outstanding professors and researchers; multinational executives and managers; doctoral degree holders in STEM field (all middle-class occupations);

    Then the bill creates a nebulously defined startup Visa with no restrictions of type of business, jobs created or employees hired from the summary. On top of that another 250,000 Visas to be based on merit scoring….”

    • willid3 says:

      well Congress is acting normally fr them. they are working corporations as usual. jobs have only been a cover for many laws Congress has put forward. usually the only connection between jobs and the bills has the been the word jobs in the title.

  4. hue says:

    There Goes the Liberal Bias: ‘Darth Vaders’ Eyeing Tribune Newspapers (NYTimes) Koch Brothers will likely bring Tea Party things to media life. If the Grave Dancer couldn’t make it work financially …

    As It Bets Big on Japan, Chalkstream Capital Hopes to Lure Smart Money (Institutional Investor) Hybrid fund profited from the Big Short, investing with Michael Burry.

    Say It Ain’t Zooey, Deschanel Captioned as Bombing Suspect (PuffHo)

  5. Chief Tomahawk says:

    Key paragraph from the “Wall Street betting billions on single-family homes in distressed markets”:

    “Wharton said his company is riding a lucrative wave. It is able to scoop up many homes for $60,000 or $70,000, which is just a fraction of the building costs. After making repairs, the company rents them out for as much as $1,700 a month. The firm’s biggest client is the federal Section 8 program, which subsidizes the rents of low-income tenants. Delavaco notes that Section 8 provides “over 60 percent” of the firm’s revenue.”

    • Citizen38 says:

      I’m a partner in a diversified real estate development & management firm that has always had a little multi family including a 300 pad trailer park (a cash flowing land bank) Long ago we stopped taking Section 8 because the residents simply do not take care of their property. Further, a typical single family home is structurally insuficient to withstand the wear and tear produced by the type of tenant represented by Section 8. A clear case of a finacial analysis based investment devoid of a knowledge of the primary factors that make or break such an investment. So yes it will end badly.

  6. RW says:

    The market didn’t react to the prospect of more economic contraction the way I expected (c’est le vie, c’est le commerce) but the bite on Main Street is deepening none-the-less.

    Sequester Watch

    …don’t have to time to do more than post some links, but check these out and feel free to add others in comments. This is a lousy approach to budgeting at both and the micro and macro levels, but since it’s more of a slow bleed, it’s easy to forget about it. We will work to disallow that!

    An Understandable Mistake

    What the chart shows is that government spending in the advanced economies has grown at a much slower rate in this recovery than in previous recoveries …. In contrast, government spending in the emerging economies has been as rapid during the recovery as before the recession, and they have recovered rapidly from recession.

    …the real mistake …was to push the high debt issue at the wrong time …the mistake would have happened anyway (in part because of Greece, and partly because of those who see reducing the size of the state as the overriding priority) …But when history tells the story of why the Great Recession was so prolonged, charts like the one here will be what is shown.

  7. nofoulsontheplayground says:

    David Rosenberg has found an interesting correlation between the Fed’s balance sheet and the NYSE market cap.

    His thesis is undercut somewhat by the ratio’s performance in the early 1990′s.

  8. theexpertisin says:

    “Wall Street Betting Billions on Single Family Homes in Distressed Markets……

    This is going to end badly. And right soon.

  9. willid3 says:

    that hissing sound we hear? thats the air leaking out of the economy

  10. Mike in Nola says:

    I tweeted this to BR, but it’s too good to wait to see if he posts it: