Archive - Jan 3, 2011

asiablues's picture

Social Network: Tech Bubble 2.0?





Talk about another internet bubble. New York Times broke the news that not only Facebook is valued at $50 billion (more than Time Warner, Baidu, and twice the market cap of Dell), but also Goldman Sachs is involved. This most likely means something frothy is brewing.

 

Tyler Durden's picture

Sovereign Man's 2010 Look Back And 2011 Predictions





Simon Black currently in Santiago, Chile, presents a quick introspective on the key events of 2010, before moving on to a few broad forecasts for 2011. We hope his predictive ability is better than that of one Byron Wien. The key among Simon's predictions is that very soon we may see the same kind of power vacuum that brought about the Thermidorian Reaction in that last major systemic overhaul. Of course, the fact that we still have to experience a an actual storming of the Bastille is a little perturbing. But everything in due course...

 

Tyler Durden's picture

Presenting Crestmont Research's Much "Borrowed" S&P Returns Since 1920 Chart





You have seen it it in the New York Times in a much abridged version...So here it is in the original, in both real and nominal terms. Via Ed Esterling, Crestmont Research.

 

Tyler Durden's picture

Is The World's Richest Man, Carlos Slim, Entering The Silver Fray?





A source in mergers and acquisitions out of Europe has alerted King World News that Carlos Slim may be looking to enter the silver market in a big way. Gold and silver are in big bull markets and this is attracting the attention of some of the smartest money around the globe. James Turk commented, “If this deal does happen Eric, this is going to make the silver shorts choke.” Fresnillo has a current market cap of roughly $19 billion.

 

George Washington's picture

Only 35% of Americans Support the Afghanistan War





Is America starting to wake up?

 

Phoenix Capital Research's picture

Graham Summers’ Free Weekly Market Forecast (Hold the Line Edition)





In plain terms, the markets are officially on “borrowed time.” The three key charts for determining when things get ugly again are the Euro, US Dollar, and long-term US Treasuries. At some point one of these is going to breakdown in MAJOR way. When it does, it’s going to drag us back into Crisis mode

 

Tyler Durden's picture

Byron Wien's Prediction Track Record: Zero Out Of Ten





Instead of wasting time with Byron Wien's Top 10 "predictions for 2011" we have decided to skip this latest and greatest worthless charade in prognostication, and instead we believe that presenting the list of what the man whose retirement age has come and gone, thought would happen in the past year, is a great example of why all these so called institutional Wall Street experts are nothing but two bit hacks. As may be expected, somehow Wien got exactly zero out of ten correct! The man is the contrarian indicator on Wall Street. Also keep in mind: it takes a lot of skill to be this bad.

 

Tyler Durden's picture

Dollar Index: One Way Or Another, It's Going To Hurt





I have been constructive on the dollar index for a little while. I had drawn attention a few weeks back when we broke the 60-dma as it has been an excellent envelope since 2008 for the price action bullish or bearish. My thinking was that one should try buying on a retest. Sure enough we almost saw tick-for-tick the moving average on Friday (at a time when most certainly very few bought). What now? Well one cannot ignore that from the lows of early November to the local highs of November 30 the wave pattern looks like a corrective a-b-c in a generally bearish trend. However as you know looking at the chart bigger picture I believe 2008 marked the lows and we are about to embark on a major bullish move. - Nic Lenoir

 

RANSquawk Video's picture

RANsquawk Market Wrap Up - Stocks, Bonds, FX etc. – 03/01/11





RANsquawk Market Wrap Up - Stocks, Bonds, FX etc. – 03/01/11

 

Tyler Durden's picture

Mort Zuckerman: "Home Prices Will Decline For Years"





One can not blame Mort Zuckerman for being bullish on housing (or at least some segments thereof): after all the outspoken Obama critic just splurged $930 million on the John Hancock building (which recently went into foreclosure at a $660 million valuation, but Mort has a story about how improvements in the parking lot and somesuch are worth the 50% hike in price). Yet what the Boston Properties chairman likes in commercial real estate (and for a contrarian and somewhat more lucid view feel free to peruse comparable thoughts by Howard Davidowitz) he loathes in residential real estate, which would be bad news for Bank of America if the bank's real name wasn't Bank of Banana Republic. In an interview with CNBC's finest, the USNews editor said that the record shadow inventory is "what’s going to put downward pressure on residential prices. And in my judgment, that’s going to continue forat’s going to continue for several years. We’ve seen home prices go down now for four months in a row, according to the Case-Shiller Index , by 1.3 percent in the last month. So it’s an accelerating downtrend in those prices. This is on top of three to four years of declines.” Oddly enough, no mention of the fact previously discussed by Davidowitz that "we have 21 square feet of selling space for every man woman and child in this country" but then again that may not be too bullish for CRE. And at the end of the day everyone has an agenda.

 

Jack H Barnes's picture

China’s Grey Swan is changing colors





The Chinese economy is heading toward an economic hard landing; it will overshoot to the downside and become the economic Black Swan event of 2011-2012. Inflation, yes both types, will be the story in China in the coming months.

 

Tyler Durden's picture

US Closes 2010 With $14,025,215,218,708 And 52 Cents In Debt, A $154 Billion Increase Overnight





When we predicted a few weeks ago that the US would end 2010 with $13.8 trillion in debt we miscalculated the settlement dates on all the last round of bond auctions . As a result, we are happy to announce that as of December 31, 2010, the US now has $14,025,215,218,708 and 52 cents in debt (incidentally this is an increase of $154 billion in debt on the US balance sheet overnight). As a reminder the debt ceiling is 14,294,000,000,000. Which means at a run rate of $125 billion in net monthly issuance, the US may not even get to the end of March at the current burn rate. Which also means Congress better start the discussion on raising the debt ceiling as soon as February. Which means someone is about to [win/lose] some serious cash on the Feb 28 debt ceiling hike InTrade contracts.

 

ilene's picture

Manipulated Monday – New Year Starts with a Bang





The futures are so bright, we have to wear shades this morning.

Those shades would be blinders, like we put on horses to keep them from being distracted by reality while they race forward...

 

Tyler Durden's picture

Smithers & Co. Finds That S&P Is Now Over 70% Overpriced Based On CAPE And q





When we last looked at the updated CAPE and q S&P valuation readings as compiled quarterly by Smithers & Co, the market was only 48% overvalued. It is therefore not surprising that following one of the most ridiculous melt ups in the past two years (and we have had many in that period) that following the firm's most recent Z1 update of the CAPE (Cyclically Adjusted PE) and Tobin q chart, the S&P is now well over 70% overpriced. This is obviously amateur hour. With the Bernanke Put having eliminated all risk and stock trading lab rats now concerned about being bumped up in a higher tax bracket, not to mention that the S&P 500 20 day historical vol just hit 39 year lows, please wake us up only when this number is in the 4 digit range.

 
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