>April 27, 2010 3:15pm
CNBC has spent the entire day on the Goldman hearings. I suggest having it on mute. I don’t know about you, but I am getting sick of these hearings. I view them as a witch hunt regarding matters that have no substance. I will refrain from trying to explain the “real deal” on this, but short selling in hedge funds is done every day and is a normal function of the financial markets. I wish that they would bring Jerry in to help referee these things; at least it would be more interesting. I have noticed the higher the voices at the hearings are raised the lower the markets go. Incidentally, how many of you invested in this fund?
On to good news, business product sales have sharply increased. They have been in a downturn since late 2007, so evidently businesses are feeling better about the future of the economy and are using more paperclips. This kind of action signals that confidence is building, that things are getting better and that the economy is recovering. We just need to end the “Jerry Springer shows” produced by our elected officials.
Slowly the pain of the last 19 months has subsided. Volatility of the financial markets has gotten back to normal and based on my relative strength model US equities have taken back the field from the international markets.
We are entering into a new frontier and possibly what Dr. Ed Yardeni, a highly respected economist, is calling “the greatest global boom of all times.” There are now six billion consumers in the world, and five billion of them in the New World wanting to achieve the same standard of living as the rest of us enjoy in the Old World. So, for many companies around the world, business is somewhere between good and great. Remarkably, earnings are also very strong among industries that do most of their business in the United States.
Unfortunately, I still hear people on the golf course and at my favorite cigar bar holding large amounts of cash because they just don’t get it! They need a disciplined way of investing that takes advantage of all types of market conditions and coaching to turn off the talking heads that prevent them from doing the right thing.