My morning afternoon train reads (continues here):

• The Pendulum Takes A Swing Towards Value Stocks (NY Times)
• Biggie Smalls (Reformed Broker) see also Small-cap stocks run into big doubts (WSJ)
• Gary Shilling:  The Boom Is Coming, and Sooner Than You Think (BV)
• What Millennials Want That Their Boomer Parents Hate (Time)

continues here




Category: Financial Press

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.

18 Responses to “10 Tuesday AM Reads”

  1. RW says:

    State’s job growth defies predictions after tax increases

    Dire predictions about jobs being destroyed spread across California in 2012 as voters debated whether to enact the sales and, for those near the top of the income ladder, stiff income tax increases in Proposition 30. …

    So what happened after voters approved the tax increases, which took effect at the start of 2013?

    Last year California added 410,418 jobs, an increase of 2.8 percent over 2012, significantly better than the 1.8 percent national increase in jobs.

    NB: It would have been a more accurate title to state that “job growth defies predictions by those who don’t understand economics, business and psychology” but whatever. As a growing number of red states are discovering there are a number of ways you can make your state less desirable as a business location but raising income taxes and leveraging to improve infrastructure, education, public service, recreation and other important commonwealth goods are definitely not among them.

    • Christopher says:

      Got any stats on the wages of those new jobs?

      Care to explain how CA has used tax $ to “improve infrastructure, education, public service, recreation and other important commonwealth goods”?

      The only thing that matters in CA right now is FRESH WATER.
      All the rest is noise.

      What has Brown done in his years in charge to address that issue?

    • rd says:

      Sam Brownback is providing the control group of the impacts of state-level tax cuts:

      Supply-side economics is alive and well. Well, maybe not well, but certainly alive.

      Clearly the data must be wrong as they are not supported by the theory..

  2. Concerned Neighbour says:

    The pendulum is swinging towards value stocks? What “value stocks” might those be?

    I regularly run screens for value stocks in U.S. “markets” using several variations of Graham’s traditional recipe. At no time in all my years of doing this have such screens returned so few candidates. Everything with or without a pulse has been bought hand over fist to within an inch of its life.

    If you define a value stock to be any stock trading below average market metrics, there will always be value stocks. If on the other hand you stay true to a proven methodology (like Graham’s), there’s no guarantee of finding candidates. And as I said, today is the worst time ever – or at least in the last few decades – for true value investors.

    I suppose I should get with the program and pour my life savings into “blue chips” with no net tangible book, high off-balance sheet liabilities, mediocre earnings growth, high P/E multiples, but that pay a dividend higher than the 10-year yield. I hear those are going to the moon, although to be fair, so is everything else.

  3. hue says:

    James Altucher: Waiting for VC (TechCrunch)

    Collector Gets 422 Million AmEx Points With Cup Purchase (The Terminal) How many Amex points would Ruport Murdoch get if he uses his Centurian card to buy Time Warner? These giant companies will just have Comcastic customer service.

    Millennials’ Political Views Don’t Make Any Sense (The Atlantic) damn kids, where did they get these crazy notions? we all know you can cut taxes and funding and get roads and highways, the best schools, the best VA hospitals yada yada yada.

  4. Willy2 says:

    “Gary Shilling: The Boom Is Coming, and Sooner Than You Think”

    And this is the same man who said that the “US is the best looking horse in the glue factory” ?

  5. VennData says:

    So what did the GOP say will happen? Well the EXACT opposite is what happened, again. Why do you listen to their crackerjack economic “theories?” Lower taxes means more debt and lower services.

    State’s Job Growth Defies Pessimistic Predictions After Tax Increases

    “… So next time someone tries to tell you that raising income taxes will destroy jobs, tell them the evidence just does not support that claim….”

    Declining Private Employment in Wisconsin, Sideways Trending in Kansas

    • VennData says:

      I love the quote about one in Seven jobs in the US is created in California with those incredibly high taxes.

      It’s like watching the Oil Lobbyist on TV this Am demanding more “leadership” out of Washington on Energy policy to build a natural gas distribution system to Europe. But otherwise they want government off their backs.

      Republicans are idiots.

  6. ilsm says:

    Expounding on Schilling that the federal spends too much. Does not enpugh in the areas that matter but it does spend about 3 times too much for the pentagon millstone around the US economy.

    When the politicians stop lying about cuts in the pentagon which is spending as much for war in real terms as during Vietnam…….

    As long as the US pentagon spends three times what the Germans spend as a part of GDP the federal debt will rise.

  7. rd says:

    It looks like the US may end up divided into two houses: one where almost everybody has health insurance; and the other half where they don’t. Having Republicans running your state basically now could mean that many people will not have healthcare insurance based on today’s appeals court ruling.

    Freedom to be poor is a wonderful thing.

    • willid3 says:

      well the GOP doesnt care about them. except at voting time when they have distract them with some thing else. like cutting taxes

      what they neglect to mention thats only for others

  8. Molesworth says:

    Are you going to comment on the Ackman Herbalife kerfuffle? There are lessons, many lessons, to be learned in that one…from effective Powerpoint presentations to sunk cost fallacy to under promise/over deliver, etc.

  9. willid3 says:

    did wall street and banksters undermine their own businesses with their …actions?

  10. BenGraham says:

    Is this the same A. Gary Shilling that has sat out the entire bull market? The one who has been bearish for the last 5 years? Now he’s a bull?!?!? This must be a top!


    ADMIN: Shilling was bearish early in 2005-06-07, but he has been fairly constructive the past 3-4 years

    • BenGraham says:

      “Fairly constructive”??? I cancelled his service just a few months ago because of the CONSTANT “Sell US Stocks Now” recommendation. The only thing consistent was his hate of risk assets and his love of treasuries. Granted, the treasury call was right, but hating risk assets and in particular, US stocks, greatly offsets his other calls.