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The largest reflation action in human history has not escaped the eyes of the cartoonists. [...]
“The S&P 500 Index, after stalling below resistance for much of May, has now slipped below its lower channel line and is testing price support again at the 875 level. If the 875 level is violated the market will become more defensive and expect selling to materialize quickly as traders will look to lock in remaining profits from this rally,” said technical analyst Kevin Lane. [...] More on this topic (What's this?) S&P 500 Chart – The Art of Technical Analysis (My Trader's Journal, 1/22/12) S&P 500 Chart – Ascending Triangles (My Trader's Journal, 1/8/12) What a Little-Known Market Tool Is Telling Us About U.S. Stocks in 2012 (Money Morning, 1/11/12)
Although the rates at which banks lend to each other have eased considerably from their peaks, banks have cut back significantly on the amount of money they are actually lending. Meanwhile, the excess reserves of banks hit a record $877 billion. A peak in the excess reserves should coincide with the global credit system returning to normal levels and liquidity starting to move freely again. [...] More on this topic (What's this?) Should You Lend Money to Your In-Laws? (Invesmint, 5/21/09) Charts: India’s Banks Lend Very Conservatively (Top Foreign Stocks, 6/25/09) First Solar (FSLR) Signs Supply Agreement With Lend Lease (Green Stocks Central, 6/15/09)
This post provides links to some thought-provoking articles I have read over the past few days that you may also find of interest. [...] More on this topic (What's this?) A Misconception about the Value of Bonds (Michael James on Money, 1/18/12) Why Simply Changing "Mark to Market" Rules Won't Lead to a Happy Ending (Money Morning, 4/10/09) North Dakota Edges U.S. Closer to Energy Independence… and Double-Digit Returns in a Flat Market (Investment U, 12/7/11)
Source: Jimmy Margulies, May 25, 2009. Did you enjoy this post? If so, click here to subscribe to updates to Investment Postcards from Cape Town by e-mail. | ||||||||||||||||||||||||||||||||||||||||
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