Posts Tagged “market watch”

A New Year’s Hangover

0 | By Shah Gilani

It’s not even New Year’s Eve yet, and I’m already thinking about hangovers.

(Not mine, of course. I don’t drink any more these days. Then again, I don’t drink any less, either.)

Today I’m thinking about how the world is going to look and feel in the coming year, how the markets might react to likely events, and what might be shining over the investing horizon in 2012.

No matter how optimistic my nature is, and how hopeful I am that global issues will be addressed and eventually fixed, the truth is that it’s always darkest before the dawn.

Another way of saying that is, if you’re going to drink to excess, you’re going to suffer with a hangover. And the more you drink – and especially if you mix your drinks – the more likely it is you’re going to suffer the ill effects of too much indulgence. (At least that’s what I’ve heard.)

Is that some kind of metaphor, you ask? Of course it is – have you been drinking?

Why this “hangover” is here to stay…

Everything Is…What It Is

19 | By Shah Gilani

Some of my very well educated friends have some very simple explanations to complex issues.

For example, I might ask, “So, what do you make of all that?”

One genius (literally) buddy of mine will ponder the imponderable, look at me with a knowing smile (which I presume will yield some incredible insight) and say, after a pause, “Everything is everything.”

On the other hand, I have another good friend who barely got out of high school, and he has a similar saying. I’ll ask him how his life is going, and he’ll answer, “It is what it is.”

I’d keep those sayings in mind, if I were you.

Click here to find out why…

Those “New” E.U. Fiscal Rules Aren’t So New

2 | By Shah Gilani

Very soon we will see if the old market adage “Buy the rumor, sell the news” is true.

While rumors of Europe’s impending demise were momentarily shot down by an array of silver bullets, the actual news out of Brussels of a grand bargain wasn’t… exactly… honest.

Let’s call the half-measures agreed to by European leaders “Brussels sprouts,” because they’re more like “green shoots” than a cabbage patch panacea.

The leaders agreed to agree that they needed an agreement on how to more closely integrate their fiscal and monetary interests.

Yeah, that’s what they said. I say good luck with that.

Actually, they made some other moves, too.

Find out what else these European “leaders” did…

A Rally and a Reality Check (or Two)

2 | By Shah Gilani

“Rudolph with your nose so bright, won’t you guide my sleigh tonight…”

Thank goodness there’s a light out there somewhere, so we can see what’s coming.

And judging by last week’s market action, guess what?

Santa Claus is coming to town!

Ho, ho, ho, what a rally. The Dow Jones Industrials rose 787.64 points, a 7.01% jump, making it the venerable benchmark’s second-best weekly up-move ever! The S&P 500 rocketed up 7.39%. The Nasdaq Composite shot up 7.59%.

But the real winner was the broader market, encompassing the less muscular household names ensconced in the Russell 2000; it rose a whopping 10.34%.

Speaking of the 10% gainers club, guess who else got their tickets punched on this sleigh ride? Not surprisingly (considering a little thing called “short-covering”), Italy was up 10.4%, Spain was up 10.24%. France was up 10.78%, and Germany was up 10.7%.

The week before last, not one single stock market in the world advanced by even a hair. Last week, every single key stock market in the world rose – and very impressively.

Oh, wait a minute. There was one little country that actually fell almost 1%. Good thing they’re not on anybody’s radar and don’t matter much. Who was it, you ask?

China.

Ho ho… uh-oh!

Too Little, Too Late (and a Jab at the Oracle)

1 | By Shah Gilani

Dear Reader,

In yet another sign that markets are broken, yesterday’s huge market advance came on the heels of two presumably separate (yeah, right) central bank moves.

Both were designed to add liquidity and support to shaky and dangerously deteriorating markets.

(That was good news?)

First, China lowered the reserve ratio its banks have to hold against loans they make. They didn’t do that because things over there are rosy. They did it because the property market is teetering and financing has been drying up.

Full story here…

Honesty is the Best Policy…

4 | By Shah Gilani

“Can I be honest with you?”

I hate it when people ask me that. As if I’m going to respond, “No, lie to me.”

But the truth is, it’s usually a preface that suggests we’re not going to want to hear what we’re about to be told.

So… can I be honest with you?

I have no idea what’s going to happen in stock markets or bond markets this week.

We are at a critical juncture for both stocks and bonds, and this week might be huge.

More truth after the break…