Man, its hot out there! I’ll just cool off in the A/C, and enjoy some weekend linkage:
From Bubble to Bubble
Greenspan, J’accuse! Everybody’s favorite bear places the blame for most of the world’s economic woes on the shoulders of you know who. (Cant say I disagree much)
Confusing Sentiment Data
Recent polling data about American’s attitudes can get quite confusing. Consumer Sentiment up, Presidential and Congressional ratings down. Go figure.
What If It’s a Bond Bubble and Condo Conundrum?
Caroline Baum wonders why if Housing is a bubble, Bond prices aren’t?
Why Politics Matters to Investors
Its not so much who you voted for but how you invest that may be getting impacted.
US sees big growth in high-risk home loans
The number of ARMs and interest only lonas are skyrocketing.
Its Different This Time Redux
Deustche Bank says the flattening yield curve can be safely ignored. (I say Poppycock!)
How Home Prices Can Be Hot but Inflation Cool
The NYT looks at the history of how CPI substituted cheap rent for dear mortages and home prices.
Bob Lefsetz on Major Label Madness
Lefsetz, an industry legend, dropkicks the labels’ bad business planning
Why Porn Stars are increasingly marketing mainstream products
The Mess That Greenspan Made
How 18 Years of Easy Money Have Changed the World
Don’t be fooled by the title to this piece: "Tracking the Elephants" could just have easily been named "The non Technicians Guide to Technical Analysis (in two parts)." The idea was to reveal to fundamentalists a few of the more significant ways they can use charts to improve their results.
Here’s the ubiquitous excerpt:
"Here’s an interesting question: If you could look at one and only one source before buying your next stock, which would you choose: a fundamental analyst’s report (with no charts in it), or the chart of your choosing? While I like having access to both, I cannot ever imagine buying something without first looking at the chart.
And so we wade into the ongoing battle between technical and fundamental analysts. Frankly, it’s one of the sillier debates in investing. But I’ve heard so many bad arguments and misleading theories about technical analysis that I decided to weigh in."
Before we wade too deeply into the controversy, ask yourself: "Why do I need to choose?" Why wouldn’t you use any tool that can be shown to have value? You wouldn’t build a house using only a hammer, but no drills or saws. Why limit yourself away from a tool that can assist you as an investor?
In the column, I used a chart of Ford — but it could have been just about any company , from JDSU to Lucent to World Con or Enron.
click for larger graph
Prior columns can be found here.
To keep the column a modest length, a discussion about Janus Funds
selling of AOL Time Warner was edited out. For your reading
pleasure, that section is here.