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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 Caught Between A Rock And A Hard Place (The Wild Investor, 5/13/09) Proceed With Caution (Contrarian Profits, 5/11/09) Economist Gary Shilling: S&P 500 will drop 43% this year? (Value Investing, 4/11/12)
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) First Solar (FSLR) Signs Supply Agreement With Lend Lease (Green Stocks Central, 6/15/09) Paul Van Eeden: Banks Aren't Lending Because They're Still Broke (Blogging the Commodity Bull Market, 5/2/09)
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?) Bonds: The Most Important Asset Class (Expected Returns, 4/18/12) How to Play Low Natural Gas Prices With Bonds (Investment U, 4/17/12) Emerging Market Bonds: Less Risk Than You Think (Investment U, 5/11/12)
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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