Some Interesting Business Articles
Stop celebrating. The markets are not rallying. This is a dead cat bounce
Anything is possible in financial markets, but the probability that the plunge in asset prices that began just a month ago could really be over after such a short time — and with so little damage being done to personal fortunes and financial institutions — must surely be very small. Much more likely is that any recovery that may or may not develop in the next day or two will turn out to be a “dead cat bounce” — in market parlance a brief and illusory rebound, whose main effect is to lure over-eager investors back into the market and then quickly deprive them of their wealth.
Earnings Still in Good Shape
With the recent drop in the equity markets, it is important to remember one extremely important thing: earnings are very robust, and there are no signs that they are going to soften up anytime soon. The median firm in the S&P 500 is expected to earn 11.9% more in 2006 than it did in 2005, and 2005 hardly qualified as depressed earnings. On a total earnings basis, the expected growth for the S&P 500 is even more robust at 13.5%.
Curbing microcap-stock touts without walloping free speech
Typically, the stocks involved are tiny issues traded on the OTC Bulletin Board or the Pink Sheets. The touts under current law are legal, so long as the sender discloses the "nature, source and amount" they were paid to pump the stock. The problem is that even that information is vague because it doesn't name any names or show specific dollar or share amounts behind the transaction.
"The ridiculous thing, in all candor, is that I think I've had the greatest run of success in the history of speculation," Niederhoffer said.
Anything is possible in financial markets, but the probability that the plunge in asset prices that began just a month ago could really be over after such a short time — and with so little damage being done to personal fortunes and financial institutions — must surely be very small. Much more likely is that any recovery that may or may not develop in the next day or two will turn out to be a “dead cat bounce” — in market parlance a brief and illusory rebound, whose main effect is to lure over-eager investors back into the market and then quickly deprive them of their wealth.
Earnings Still in Good Shape
With the recent drop in the equity markets, it is important to remember one extremely important thing: earnings are very robust, and there are no signs that they are going to soften up anytime soon. The median firm in the S&P 500 is expected to earn 11.9% more in 2006 than it did in 2005, and 2005 hardly qualified as depressed earnings. On a total earnings basis, the expected growth for the S&P 500 is even more robust at 13.5%.
Curbing microcap-stock touts without walloping free speech
Typically, the stocks involved are tiny issues traded on the OTC Bulletin Board or the Pink Sheets. The touts under current law are legal, so long as the sender discloses the "nature, source and amount" they were paid to pump the stock. The problem is that even that information is vague because it doesn't name any names or show specific dollar or share amounts behind the transaction.
"The ridiculous thing, in all candor, is that I think I've had the greatest run of success in the history of speculation," Niederhoffer said.
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