smart-money-report.com Blog

The Crash of  1929 – Could It Happen Again? Whenever the stock market is weak there is always talk of the Crash of 1929 or the Crash of 1987. The first rule of investing: Anything can happen.

Don’t stick a fork in the crude bull yet.

Hmm… the financial sector has posted its best 6-day run since at least 1962.

How can financial stocks “rise wondrously on woeful results?” It’s called sell the rumor and buy the news.

It’s the short sellers fault! There is nothing new under the sun. Short sellers were blamed for the crash of 1929.

The Fannie Mae gang. The last two paragraphs are telling:

So here we are this week, with the House and Senate preparing to commit taxpayer money to save Fannie and Freddie. The implicit taxpayer guarantee that Messrs. Gray and Raines and so many others said didn’t exist has become explicit. Taxpayers may end up having to inject capital into the companies, in addition to guaranteeing their debt.

The abiding lesson here is what happens when you combine private profit with government power. You create political monsters that are protected both by journalists on the left and pseudo-capitalists on Wall Street, by liberal Democrats and country-club Republicans. Even now, after all of their dishonesty and failure, Fannie and Freddie could emerge from this taxpayer rescue more powerful than ever. Campaigning to spare taxpayers from that result would represent genuine “change,” not that either presidential candidate seems interested.

All you need to know about wind.  Actually, there are some pretty interesting names that are mentioned.

A Value Line indicator turns bullish.

A Barron’s interview with Theresa Gusman:

Q : Back in October of 2006, you told Barron’s Online we were in the midst of a long-term secular bull market in commodities. Given the surge in commodities, do you still believe that to be the case?

A : Absolutely. I would say that we believe that we are in the early stages of a long-term secular bull market in commodities. We believe that it will last several years going forward.

Notice she said “early stages.”

The Bespoke boys offer a very useful chart for asset class correlations. Stocks have become the least correlated with oil, gold, and Treasuries.