Do you tend to buy stocks or real estate when the market is improving? And sell when the market is worsening? If so, join the crowd. This action, of course, creates its own “feedback loop”, also called “price-to-price feedback”.  When the feedback stops, markets often turn around, or a speculative bubble bursts. Astute traders include [...]

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To Our Clients, Colleagues and Friends,

Ichiro Suzuki holds the All-Time record for most hits in a season, and of all active players, he’s number two in batting average, just barely behind the amazing Albert Pujols, at .332.  If we look behind the stats, however, we find that of the almost 2,000 hits he’s had while [...]

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  Obama to renominate Bernanke as Fed chief – By Ross Colvin and Patricia Zengerle – … “Ben approached a financial system on the verge of collapse with calm and wisdom; with bold action and outside-the-box thinking that has helped put the brakes on our economic freefall,” Obama will say. [...]

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  Chart of the Day – Today’s chart illustrates how the recent plunge in earnings has impacted the current valuation of the stock market as measured by the price to earnings ratio (PE ratio). – Chart of the Day  and PE Ratios: On the way to euphoria [...]

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