wall street

PBS Frontline Exposes Ugly Truths About Wall Street

by Barron Maestro on April 27, 2012

PBS Frontline - Money Power Wall StreetIn the first part of a four-part investigation, PBS Frontline focuses on the business with enormous global reach and influence: banking. The topic “Money, Power and Wall Street” is certainly more important than anything being discussed in the presidential campaign. The excesses and aggressive risk-taking of the financial industrial complex dwarf all other influences on the economy. The banking madness was sickeningly exposed during the financial crisis and stock market crash over 3 years ago.

As the first episode states, the recession destroyed $11 trillion of American’s net worth. 8.5 million workers lost their jobs. “Wall Street got bailed out and Main Street didn’t,” is the refrain justifying the Occupy Wall Street protests.

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Pension Funds Struggle to Find Returns

by Barron Maestro on April 4, 2012

Julie Creswell of The N.Y. Times writes about the challenges facing pension funds in a low return world. Apparently the managers of these funds are increasingly turning to alternatives including high fee hedge funds.

Creswell contrasts the $26.3 billion Pennsylvania State Employees’ Retirement System with Georgia’s $14.4 billion municipal retirement system. The Pennsylvania pension fund has bet the house on riskier alternatives with 46% of its assets in 400 private equity, venture capital and real estate funds. Georgia’s state law prohibits alternative investments.

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Harvey Eisen, “The Stock Market is Just Fine”

by Barron Maestro on March 30, 2012

Harvey Eisen - Bedford Oak AdvisorsLou Dobbs interviewed a veteran Wall Street observer from days gone by, Harvey Eisen, regarding his views on the future direction of stock prices. Eisen gained minor fame as a regular on Louis Rukeyser’s Wall Street Week. Its probably been around 20 years since I’ve seen him, but he still looks about the same. Eisen is currently the Chairman of Bedford Oak Advisors.

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Larry Swedroe - Quest for AlphaLarry Swedroe, author of Investment Mistakes Even Smart Investors Make and How to Avoid Them, has written an enlightening and in-depth article entitled, “On Magical Thinking and Investing,” at IndexUniverse.com.

Swedroe is an advocate of investing in index funds and is a principal and the director of research of Buckingham Asset Management and BAM Advisor Services. He has written 10 other highly regarded books on investing.

Swedroe lays out his case as to why investors engage in self-destructive behavior, or as he puts it, “why do the majority of investors keep playing a loser’s game?”

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Marc Faber - Gloom, Doom and Boom ReportMarc Faber, publisher of the Gloom, Doom and Boom Report, was interviewed by Joe Kernan on CNBC yesterday and provided his views on liquidity, the dollar and the Occupy Wall Street protests.

Faber said he is looking for continued volatility although it wouldn’t necessarily be to the downside. He was fairly certain the U. S. dollar would continue to be a good long trade.

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Hedge Funds Disappoint Overall

by Barron Maestro on August 19, 2011

The Economist has exposed the hedge fund complex as a major disappointment for their investors. Even with the market down they’ve been struggling to match the index averages during this miserable period.

A recent standout to the downside has been John Paulson, hailed a genius for profiting immensely from the real estate downturn in 2008. As of August 5th, his Advantage Plus fund was down 31% for the year and its probably gotten worse since then. Paulson was reportedly a big holder of Hewlett Packard (HPQ), an extremely poor performer year-to-date and a huge loser today.

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Using the Rydex Bull/Bear Ratio to Gauge Sentiment

May 23, 2011

Investor sentiment has been seen by many market observers as a useful way to determine if the stock market is overvalued or undervalued. Traditionally, polls of market participants have been used to measure the relative bullishness of investors. The problem with polling is that it’s subjective and prone to staleness. It’s probably more useful to [...]

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An Alternative to Going to Cash in May

May 9, 2011

Selling equities in May and avoiding them for six months has been written about extensively over the years.  The blog Econompic has an alternative to employing cash as the “safe” asset.  Transferring to the Long Government / Credit bond Index (GBF) has demonstrated stronger risk adjusted performance which Econompic refers to as the “Secret Sauce.” SMA Comment:  This [...]

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Market Strategist Joe Battipaglia Dies

April 16, 2011

I was shocked to learn of the untimely passing of Joe Battipaglia, long-time market observer and strategist.  Battipaglia died of a heart attack on Thursday.  His views on the market have been recorded here periodically.  Battipaglia was reasonable in his market predictions, never succumbing to outlandish, attention getting hyperbole.  He will be missed.

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Mark Hebner Explains Why Investors Should Avoid Mutual Funds

April 12, 2011

Mark Hebner, CEO of Index Funds Advisors, recommends investors shun actively managed mutual funds.  Hebner provides a very good explanation to Henry Blodgett in the video below:

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