Buy Quality Stocks, Sell Treasuries, Says Michael Mauboussin

I found this piece via the MyInvestmentNotebook blog run by the same guys as Farnam Street.Thanks! Click Here To Read Michael Mauboussin’s Thoughts On Investing Introduction (Via Morningstar) His new book, Think Twice , examines why investors make mistakes if they leap to judgment and how they can correct that by carefully examining the possible alternatives and learning from their mistakes. I asked him about where the economy and markets are headed as well as lessons we can lea

Andy Xie: For Economic Stimuli, a Revolving Exit Door

Can interest rate adjustments, currency devaluation and zigzag policymaking help unwind economic stimuli? It depends.Australia recently raised its policy interest rate 25 bps, becoming the first major economy to do so since the financial crisis a year ago prompted all major economies to rapidly cut interest rates to historical lows.Financial markets had been chattering about economic stimuli exits for about a month before Canberra’s move. The consensus was that central banks would keep rates ext

World stocks up as tanking dollar boosts oil, gold

LONDON – World stock markets rallied Wednesday after an upbeat earnings statement from Intel Corp., the world's largest chipmaker, and China's economy showed more signs of a recovery. Meanwhile, oil prices rose to a year high while the dollar slid to a 14-month low against the euro amid the rising appetite for risk. In Europe, the FTSE 100 index of leading British shares was up 89.57 points, or 1.7 percent, at 5,243.72 while Germany's DAX jumped 109.05 points, or 1.9 percent, to 5,823.36.

The WonkLine: October 9, 2009

Welcome to The WonkLine , a daily 10 a.m. roundup of the latest news about health care, the economy, national security, immigration and climate policy. This is what we’re reading. Tell us what you found in the comments section below, and subscribe to the RSS feed . Also, you can now follow The Wonk Room on Twitter . Climate Change Secretary of Energy Steven Chu cut the ribbon for the Solar Decathlon on the National Mall, with twenty prototype solar homes built by un

Five Assets for Hedging Against Dollar Inflation or Deflation

As the stock markets continue to recover (assuming it has not done yet), the talk of inflation is coming back in the news. Our government has pumped in so much of printed money in the system that there is a concern that US economy will experience inflationary times. There is no denying that inflation will take away chunk of our real returns from overall investing returns. Many of the well known economists and investors (including Warren Buffett) have expressed concerns about in

Geithner Sees ‘Broad Signs’ Housing Markets Getting Better

Oct. 8 (Bloomberg) -- Treasury Secretary Timothy Geithnersaid today that housing markets are showing “broad signs ” ofimprovement even though they haven’t yet healed. “We’re still living with some risk that housing is goingto be a source of weakness for the broader economy ,” Geithnertold reporters on a conference call . Geithner said theTreasury’s mortgage-modification program now includes500,000 households, a few weeks ahead of the administration’starget. That represents about 40 percent

Stock Market News for October 8, 2009 – Market News

Investors waiting for corporate earnings reports to start rolling in made only modest moves on Wednesday after stocks posted their best two-day gain since mid-July. With little economic news to direct trading, investors were waiting for earnings reports from the July-September quarter for signals about the economy. Aluminum maker Alcoa released its numbers, but the report did not arrive until after the closing bell. Still, investors were happy with the news that the company was profitable aga

Fed’s Dudley Signals Concern About Risks of Slower Inflation

Oct. 6 (Bloomberg) -- Federal Reserve Bank of New YorkPresident William Dudley said that the risk of slowing inflationis “problematic” for the economy and that interest ratesshould stay low for a while to ensure a “robust recovery.” “Our near-term focus should be to keep significantmonetary accommodation in place for an extended period” toachieve the Fed’s congressional mandates for maximum employmentand stable prices, Dudley said in a speech yesterday in New York.The U.S. jobless rate is “

Economy: Out Of It? Being “Tricked”? Or Is The Worst Ahead???

Previous: Inspector General Finds Henry Paulson And Ben Bernanke Lied About Banks Getting TARP Bailouts World Bank Could Run Out Of Money Within 12 Months Reader BK sends this along, and comments: BK: Not sure how to take this. I’ve believed for several months that this current rise to nearly 10K would turn and drop precipitously again. There are just too damned many banks extremely vulnerable. They haven’[t done anything to influence the kind of recovery that “rights” a saggi

Time to Scale Back Market Exposure

Investors approach the market differently. Some rely upon complex technical patterns and others simple patterns. Some turn to fundamental values and others use big picture ideas. Regardless of the approach taken, we all look to apply our ideas to the markets and search for opportunities. Much has been written over recent months how the current rally is not supported by either an improving economy or stocks offering compelling values. The result is a market based on momentum. Being able to focu

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