What a week! After the sort of mayhem that ensued, its good to just kickback and start clicking interesting reading. With that in mind, let’s jump into it:
• When the 2 year bond yield slipped over the 10 year late last year, it made a lot of noise. Why then, did the 3 month inversion on Wednesday over the 10 year cause a deafening silence?
• Google got whacked pretty good yesterday. To their credit ("Do no evil") they were the only ones who tried to keep customer search records private from an intrusive DOJ fishing expedition: DoJ search requests: Google said no; Yahoo, AOL, MSN yes. Kudos to Google, jeers to the spineless weasels at MSN, AOL and Yahoo.
• In response to the above, Wired Magazine reveals How to Foil Search Engine Snoops;
• 2 weeks ago, I told readers to Buy Volatility; That’s still good advice, and I think it will be a winning trade this year;
• Noah Blackstein came up with the moniker "Cult of the Bear;" When I asked readers for counter name suggestions, you guys came up with some hysterical ideas (including, my favorite, Cult of the Man-Cow);
• The WSJ and Bloomberg each discussed the weak job creation and income improvements: Expansion Leaves Workers Behind, Creates Fed Friction and Inequality: an ’80s Legacy Or Worsening Now?;
• Of course, the Soft Spots Go Beyond Employment;
• Here’s my offer to the absurd "Core CPI" crowd: Consume only core elements for 30 days (remember, that’s ex-food and energy). After the month is over, we can discuss the Worst Inflation in 5 years;
• Morgan Stanley on Oil Prices — Tight Markets plus Geopolitics Equals Upside Risks;
• Before the most recent blow up, I addressed The Rising Risk to Earnings;
• Remodeling and New Construction are both slowing;
• The 3% federal excise tax on your phone bill "was imposed in 1898 to help pay for the Spanish-American War." Oh, and 7 courts have ruled it illegal;
• PC World collects The 50 Greatest Gadgets of the Past 50 Years;
• The origins of the Great War of 2007 – and how it could have been prevented
• And just for laughs: The best viral videos of 2005 Note: some of these are not safe for work;
That’s all from sunny NY, where it nearly hit 60 degrees yesterday — in January! I may have to drop the top and go for a cruise today . . .
Alan Abelson, in this morning’s Barron’s, quotes Macro-Maven’s Stephanie Pomboy on why the consumer is soon to be spent-out: “Whatever those worthies were smoking, it must have smelled pretty good because the investment mood until this past week was happily, giddily upbeat. The sentiment readings were almost uniformly bullish. Those blue skies were virtually cloudless:…Read More