Despite breath-taking hype on Wall Street and President Obama’s budget that assumed economic growth of a glorious 3.1%, corporate executives and directors are quietly dumping their shares in bouts of extreme bearishness, just like they did before the last crash.
Entries in Wall Street shenanigans (156)
By Dan Steinhart, Casey Report: One thing’s for sure: the investment world is enamored with the new green industry. Over the last three months, the worst performer among the purest plays in the marijuana space soared 243%! But wait a minute....
National averages paper over gritty details on the ground and are a crummy indicator as to what is happening in specific metro areas. But even with this caveat, a national average suddenly sounded an alarm for the housing market: the smart money is bailing out.
First-time buyers, a powerful economic energy, create real demand and make the housing market grow. We’ve been praying for their arrival like we’ve been praying for rain in parched California. But the more we pray, the fewer there are.
By Don Quijones: Grupo Bankia, Spain’s biggest basket-case bank, will dip its toes again in the stock market. Bailing out the bank after its last IPO in 2011 cost taxpayers over €20 billion. Customers lost €4 billion. And now the alpha wolves of Wall Street are at it again.
The IPO scene is sizzling: 25 pre-IPO startups, dogged by puny revenues and hefty losses, have “valuations” from $1 billion to $10 billion. But post-IPO debacles, even in the immensely hyped Cloud and Big Data sector, are already hitting the sidewalk.
Last quarter was tough on large US corporations – those in the S&P 500 index. Unperturbed, the index soared all year. But its 343 companies that have reported so far have exposed the ugly underbelly of the worldwide economy: revenue “growth.”
It’s “a technology everyone is going to have,” said a Bay Area real estate broker as he explained why realtors use drones to shoot aerial videos of high-end properties. And it’s illegal. But no one is going to be able to stop it, he implied.
The last stock-market bears have gone into hibernation, browbeaten and humiliated and ridiculed by years of brilliant rallies. Clinging to their analyses and the now silly notion that stocks should trade based on economic realities, they lost clients and money and their jobs.
Monday is Janet Yellen’s first day on the job as Chair of the Federal Reserve, and so, all wishful thinking aside, it’s crucial that we obtain, one way or the other, a clear picture of what her glorious tenure will look like.
Carl Icahn must have tossed and turned Monday night, after the Apple debacle. Reeling from his losses, he was out there on Tuesday hyping the stock with all his might. They're all doing it, from Warren Buffett on down, guys with billions of play-money and a loud voice.
The steep rise in income inequality is a consequence of a spectacular reallocation of income from labor to capital. It repressed wages and created the biggest profit bubble ever. But pressures are rising. The bubble will get pricked. There will be consequences.
Tech isn’t exactly booming, as we’ve seen from numerous revenue and earnings debacles, collapsing sales in China and Russia, massive layoffs.... But that hasn’t kept “valuations” of money-losing tech startups from being pushed into the stratosphere – for the benefit of a very elite club.
The Corporate Malaise That The Stock Market Is Furiously Ignoring (for now) - Societe Generale’s Quant Research
“Thank goodness equities went up in 2013, otherwise it might have been a rather depressing year” – Societe Generale’s exasperated Global Quantitative Research team.
I thought we’d never see “Merger Monday” again, the concept. But now, the unthinkable happened, the zombie phrase has walked back into the scene. Like in the bubble days of 2007: the big numbers were there, the deal exuberance, the craziness, the hoopla.
Germany has its own JP Morgan, mired in a swamp of sordid scandals, investigations, lawsuits, and fines. Now a letter by the banking regulator was leaked that blasts Deutsche Bank's internal investigation of the rate rigging scandal as a senior management whitewash.
How Long Can the Bernanke Asset Bubble Go On? (The thing is, the biggest gains typically happen in the final innings)
By Steve Sjuggerud, Daily Wealth: $10,000 would have turned into $22,832, without doing anything fancy. That's the total return on the S&P 500 from 2009 through 2013. US stocks soared 32% in 2013, a winning streak of five straight years, four with 15%-plus gains. And?
Corporate earnings season has been a doozy before it even got started. The well-scripted song and dance, designed to pull a bag over investors’ heads, works marvelously: stalled revenues and earnings propel stocks higher. But the shenanigans are bumping into limits.
Bernanke wanted to reflect on the “accomplishments of the past eight years," demolish the “sceptics” that still doubted the Fed was the best thing since sliced bread, and pat himself on the back. His policies “have helped promote the recovery," he said. The “recovery” of what?