60 Minutes on the Explosion of Disability Enrollees

60 Minutes this past Sunday did a piece on a story that has been talked about in these pages for a long time – the rapid increase in disability enrollment since the recession half a decade ago.  It is quite remarkable that effectively 5% of the working population is now enrolled. [Apr 7, 2011: Nearly 1 in 20 Working Age Americans Are on Disability, a Doubling Versus 1990]  [Dec…

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WSJ's Hilsenrath on Janet Yellen

With the demise of Larry Summers, all eyes point to Janet Yellen as the next Federal Reserve head.  Frankly it is a bit surprising she was not the leading candidate all along.   Earlier this year, we posted a NY Times piece on the woman [Apr 25, 2013: NY Times Does Janet Yellen] from a more personal level and now we have one on the Fed whisperer himself, Jon Hilsenrath…

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The Most Overbought Point in 2013

Quite an explosive rally yesterday at the 2 PM mark, in fact about 70% of yesterday's gains came in a minute or so per Bespoke Investment; the power of algos.   Obviously the Fed, by surprising just about everyone with "no taper at all", lit another fire under the market but coming off a near vertical rally since late August it is still a bit surprising to see the…

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Mar26

Bernanke really needs to speak about how poor the economy is more often… could be back to NASDAQ 5000 in a few months if he does a Monday morning presser each weak bemoaning the wretched state of affairs.

Disclosure Notice

Any securities mentioned on this page are not held by the author in his personal portfolio.

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Mar26

The most likely answer to the above question if you ask the general populace is "the American citizen."  Unfortunately, it is not quite that simple.  In fact, one can make a wonderful argument that such actions, gaining in popularity among a certain political set, would be neutral to "the American citizen."  One group benefits, and another one would pay for it – there is no net winner from moving obligations from one hand to another.  Someone is owed that money, and with Fannie, Freddie, et al being run as large subsidization schemes guaranteed by the U.S. taxpayer – that is who loses.  That said, per this excellent story by the NYT's Gretchen Morgenson, ,there would be one clear winner – our oligarchy of mega banks.  Which makes me wonder why this proposal has not been approved long ago?  Oh yes, it is not something Congres can be paid off to do.

Disclosure Notice

Any securities mentioned on this page are not held by the author in his personal portfolio.

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Mar26

Barron's was out this past weekend with a negative article on Alexion Pharmaceuticals (ALXN), stating a lot of things that are already known – namely that the current situation is this is a "one drug" story.  [Feb 12, 2012: Alexion Pharmaceuticals - One Drug is Enough When it Costs this Much]  But of course they have a very large megaphone.  Alexion was one of the few stocks in my watch list to actually open down today.

As with any high growth, high beta stock – eventually the super growth era ends, and "valuation once more matters".  When it does, it's usually a dark and ugly point for the stock as you lose the momentum growth investors and the "value" investors won't be touching said stock until a much lower point.  Barron's seems to be making a pre-emptive strike on ALXN in this regard.

Disclosure Notice

Any securities mentioned on this page are not held by the author in his personal portfolio.

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Mar26

The last week of the month has already gotten off to a roaring start in futures as Bernanke is out this morning with a speech saying the labor market remains poor, which the market is translating to more easing.  I am unclear why the market ever has gone off the more easing bandwagon, but they seem to be reassured today than Ben will continue full steam ahead and of course markets love easy money.

Disclosure Notice

Any securities mentioned on this page are not held by the author in his personal portfolio.

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Mar23

This is one of the few days of the year the NASDAQ, and especially QQQ ETF, is not leading the charge.  Apple (AAPL) is actually down while the S&P 500 and DJIA are the stronger indexes; in fact quite a few leading technology names are in the red.  Meanwhile, the most beaten of the "slowdown in China" names are rebounding a bit along with the energy complex which has had a rough week.  The S&P 500 is making an attempt to recapture the quickly rising 10 day moving average at 1397.70… the pullback this morning did not go as far as to touch the 20 day down at 1381-ish.  That is the level from which this leg of the breakout started, so its an important level to hold for sustained movement.

Disclosure Notice

Any securities mentioned on this page are not held by the author in his personal portfolio.

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