Video-o-rama: Higher bond yields raise caution

By Prieur du Plessis, on May 29th, 2009 posted in: Investment, Markets, Money

While investors’ attention was focused on global government bond yields marching higher, the holiday-shortened week produced a surprisingly small number of video clips.

Some quality footage was nevertheless produced, featuring the likes of David Rosenberg, now in his new role as chief economist and strategist of Gluskin Sheff, Mohamed El-Erian, Barry Ritholtz, Puru Saxena and Mario Gabelli.

And then there is “out of the box” analyst Marc Faber arguing that the US economy will enter “hyperinflation” approaching the levels in Zimbabwe. “I am 100% sure that the US will go into hyperinflation,” Faber said in an interview with Bloomberg. “The problem with government debt growing so much is that when the time comes and the Fed should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate.”

The selection kicks off with a humorous take by Emmy Award winner Hoofy and Boo on “How not to save Detroit”, and concludes with a clip featuring Twitter co-founders Biz Stone and Evan Williams explaining how they plan to attain their goal of generating revenue by the end of the year. (By the way, you can follow me on Twitter by clicking here.)

Hoofy & Boo (Minyanville): How not to save Detroit
“Chrysler is in dire straits and hoping that Fiat will save the company. Join Hoofy and Boo as they watch two turkeys combine in an ill-conceived effort to make an eagle.”

Source: Hoofy & Boo, Minyanville, May 2009.

Financial Times: GM’s future
“Spencer Jakab says once General Motors emerges from almost certain bankruptcy, it may be in surprisingly good shape.”

Source: Spencer Jakab, Financial Times, May 26, 2009.

Fox Business: End of recession? Not so fast
“David Rosenberg, chief economist at Gluskin Sheff & Associates, gives his take on the end of the market downturn.”

Source:Fox Business, May 26, 2009.

CNBC: Outlook from the Bond King - Mohamed El-Erian
“Current perspectives on the future of the economy, with Mohamed El-Erian, Pimco CEO/co-CIO.”

Source: CNBC, May 27, 2009.

Bloomberg: Wachovia’s Vitner says consumers seeing better economy
“Mark Vitner, managing director at Wachovia Corp., talks with Bloomberg’s Erik Schatzker about data showing that confidence among US consumers jumped this month to the highest level since September. The Conference Board’s sentiment index surged to 54.9, higher than forecast and the biggest gain since April 2003, the New York-based research group said today.”

Source: Bloomberg, May 26, 2009.

CNBC: Blitzer on S&P/Case-Shiller home price declines
“The data shows home prices fell at the fastest rate ever in the first quarter. Insight with David Blitzer, Standard & Poor’s managing director/chairman.”

Source: CNBC, May 26, 2009.

CNBC: Ritholtz – how far from the housing bottom?
“Searching for the housing bottom, with Barry Ritholtz, FusionIQ CEO and the Fast Money traders.”

Source: CNBC, May 26, 2009.

John Authers (Financial Times): House prices key to consumer confidence
“John Authers, FT’s investment editor, says that until US house prices recover we will not see consumer confidence return in earnest.”

Click here for the article.

Source: John Authers, Financial Times, May 26, 2009.

The Wall Street Journal: The rise of a financial stability regulator
“Just as the Great Depression led to the creation of new institutions and financial practices, the Obama administration is on track to impact financial regulations. One of the new concepts involves a financial stability regulator, David Wessel explains.”

Source: The Wall Street Journal, May 27, 2009.

The Washington Post: Geithner dismisses GOP socialism charge as “ridiculous”
“Treasury Secretary Timothy Geithner admits private investors are worried about investing in new government-backed commercial mortgage securities and dismisses as ‘ridiculous’ a recent Republican National Committee resolution stating that Democratic policies bordered on socialism.”

Source: The Washington Post, May 24, 2009.

The Wall Street Journal: Mythology of bulls and bears
‘As the bulls gain force, investors must avoid getting trampled in a stampede. Barron’s Steven Sears comments.”

Source: David Ranson, The Wall Street Journal, May 21, 2009.

CNBC: Puru Saxena – expect a mild correction
“As markets have run ahead of themselves, expect a mild correction or consolidation soon, predicts Puru Saxena, money manager and CEO, Puru Saxena Wealth Management. He tells CNBC’s Chloe Cho why this will be positive for the US dollar.”

Source: CNBC, May 27, 2009.

Bloomberg: Gabelli says stock market finding “place of equilibrium”
“Mario Gabelli, chairman and chief executive officer of Gamco Investors Inc., talks with Bloomberg’s Betty Liu about the outlook for the US economy and stocks.”

Source: Bloomberg, May 28, 2009.

CNBC: Faber – market correction will unfold
“Marc Faber, editor and publisher of The Gloom, Boom & Doom Report, says the overbought market will correct but he is uncertain about the magnitude of the correction. He speaks to Sean Callow of Westpac Bank, CNBC’s Martin Soong & Sri Jegarajah.”

Source: CNBC, May 25, 2009.

CNBC: Dr Gloom – paper money will become worthless
“Hold onto gold as paper money will become worthless in the future, warns Marc Faber, editor & publisher of The Gloom, Boom and Doom Report. CNBC’s Martin Soong & Sri Jegarajah asked Faber how he was gaining exposure to the precious metal.”

Source: CNBC, May 25, 2009.

The Street: Gold can hit $1 000
“Is a perfect storm of a weak dollar, weak markets, options expirations and physical demand going to push gold higher? Carlos Sanchez, Associate Director of Research for CPM Group offers his take at TheStreet.com.”

Source: The Street, May 28, 2009.

CNBC: OPEC secretary general – oil should be above $70
“OPEC is looking for a ‘reasonable’ oil price, which is not below $70 a barrel, OPEC secretary general Abdalla Salem El-Badri told CNBC after the organization left output unchanged Thursday.”

Source: CNBC, May 28, 2009.

MarketWatch: Twitter founders aim for revenue by year end
“Twitter co-founders Biz Stone and Evan Williams tell MarketWatch columnist Therese Poletti how they plan to attain their goal of generating revenue by the end of the year.”

Source: MarketWatch, May 27, 2009.

Did you enjoy this post? If so, click here to subscribe to updates to Investment Postcards from Cape Town by e-mail.