Just time for a quickie. The stock markets, not just the U.S., but worldwide, had another very bad day. The major indices in the U.S., Dow Jones Industrials, Standard & Poor's 500, NASDAQ, were all down from 4-4.6%. This is on top of 6% decline on Monday and more declines in the last two weeks. … Continue reading A Quickie: Another Serious Down Day
It's Monday, Aug 9. The stock markets are declining significantly, although anybody who says it's panic doesn't remember 2008. Anyway, lots of market commentators, you know the types on cable TV news networks, are all claiming the decline is due to the S&P downgrade. They're wrong. Completely wrong as I pointed out already. But just … Continue reading How To Tell A Market Commentator Doesn’t Understand Markets or Finance or What They’re Talking About
One of the economic theories that dominated a mainstream economic theory during the last few decades is Efficient Markets Hypothesis. Essentially, an important part of the concept is that asset prices, such as stock prices on the stock exchange, accurately reflect all available information about the future earnings of the firm. Further, it implies that … Continue reading RIP: Efficient Markets Hypothesis – 70% of stock trades last 11 seconds or less
One of the enduring myths of 20th century American capitalism is that "anyone can do it". Anyone can get rich, that is. And one of the ways people are encourage to "get rich" is by wisely gambling investing in the stock market. Unfortunately for countless numbers of people hoping to retire soon, it just isn't … Continue reading You’re Not Going to Get Rich in the Stock Market
Popular media like to point to the stock market as a real-time measure of the health of the economy. They particularly like the Dow Industrials average. It makes quick, easy news for lazy journalists. Occasionally they do it right, but it's rare. CNN gets it right here: Don't trust Dow 10,000 The stock market is … Continue reading Dow at 10,000 signals recovery. Or not…
Steven Pearlstein of the The Washington Post explains via this story in the Hamilton Spectator why the run-up in the stock exchange of the last 6 months isn' t necessarily a good thing. Instead of being a predictor of good times to come, the run-up in the stock market is more likely the latest in … Continue reading TheSpec.com – BreakingNews – New bubble created by U.S. policy
From the Comrade Swan on the comments on Calculated Risk, who says it better and funnier than I possibly could: PICTURE the Black Knight scene from Monty Python & Holy Grail, but the script as follows below the fold: REALITY: You fight with the strength of many men, Sir BULL. I am Reality, King of … Continue reading So what do I think of the recent upswing in the stock market?