Investment Capitalist

Geithner III is intended to create “price discovery”. But when you backstop the “buyer” from any downside while at the same time financing said buyer, then the “value” or price discovered becomes artificially inflated. Perhaps this is precisely why the plan is designed this way. Nonetheless, the solution is in and we can get on [...]

Implied dividends of European stocks based off of dividend swaps on the DJ Eurostoxx 50 index, have jumped, indicating growing optimism about equity markets worldwide. Implied dividends were at distressed levels near the end of Q’4 last year. The cause was a scramble by dealers to hedge their long dividend exposures. Worsening dividend forecasts combined [...]

After market euphoria turned into pre-market despair with MSFT spoiling the party. We made new lows but internals became bullish around lunch time.  Looking for successful test of 815 in S&P.  Bullish posture still stands, trade SKF for cash flow and hedging.

There are several good stocks coming up on my radar. So I’m going to provide a quick list of my top choices: HMIN – Huge hotel chain throughout China. NPD- Enormous retail drugstore chain throughout China. Excellent growth and margin ratios. CPSL- Specialty Steel HIMX- Specialty Chipmaker ACTS- Semiconductor Manufacturer SVA- Biotech with H1N1 “hype” [...]

Here’s the point. The markets look sick on the back of some of the bleakest economic indicators we’ve seen since the Great Depression. Yes there are some optimists that see the cup as half full, and to counter them, there are the pessimists who see it as half empty. I see it for what it is: completely dry. Not a drop left in the cup.

That’s all that it is, a prediction. Nothing to get all ruffled up about. Robert Prechter is highly intelligent, has written countless books, and is one of the foremost economists in the country.  An economist I can truly say I respect after reading several of his books. But this is one of those Nuriel Rubini [...]