A Few Dollars More

“No where to run, no where to hide,” would be my description of world financial markets this week.  Remember last week’s bugaboo: the multi-billion dollar municipal bond auction market? Well, this week investors fretted over the possible reemergence of Stagflation, something I haven’t encountered since watching Johnny Travolta dance his way through “Saturday Night Fever” [...]

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“We’re clearly on the edge, it’s 50% or better,” said Alan Greenspan on Thursday, referring to the chance that the United States will fall into a recession. Six months ago the former Fed Chairman put the odds at no more than one in three. I think we are already in a recession.
We could say the [...]

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Drop a dead cat off a high enough building and it will bounce upon impact.  We on Wall Street call that “a dead cat bounce” which explains last week’s rally.  Those who thought the gains in the S&P, NASDAQ and Dow signaled the end of the correction are hurting right now.  A week’s worth of [...]

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Everyone lives with risk everyday so why, asks a reader recently, “is risk so confusing when it comes to investing my money?”  The answer lies in how most investors interpret the meaning of risk in financial markets.
A simple definition of risk is the probability that an outcome will be different from what you expected.  Most [...]

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You might think the sky had fallen given the coverage of global stock markets events in February and March.  In hindsight, it neither heralded an end to world economies nor the beginning of another DotCom bust.  It was simply a correction, although a painful one for those who were overly invested in stock markets.
In my [...]

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