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Bullish Sentiment Stays Extremely Strong As Year Draws To Close

The bulls remain in full force, in sentiment at least, with the attitude that the government will continue to print money via fed easing and provide stimulus by extending the bush tax cuts and unemployment benefits. The aaii.com sentiment index … Continue reading

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Bullish Sentiment At An Extreme: Time For Reversal?

After the market exploded in September, and then hit new highs again this past week, everyone has become convinced the Fed will forever propel stock prices higher. According to thestreet.com survey, there is a remarkable explosion of Bullish sentiment: http://apps.thestreet.com/survey/results/rmCustomPollResults.jsp?sid=42898 … Continue reading

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We Need Some States and Countries To Default

Beginning last May, the global financial crisis has moved from primarily an issue with the private sector to one of the public sector. Entire states and countries ability to service their debt is being called into question. When it became … Continue reading

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NY Times On Japanese Deflation

Over the weekend, the NY Times came out with an excellent article describing the effects of decades of slow growth on Japanese culture. Here is a small excerpt: But his living standards slowly crumbled along with Japan’s overall economy. First, … Continue reading

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Some Nighttime Reading

Here’s a few articles I found that would appeal to all the doom-and-gloomers out there: Democracy Is Destroying The US Honestly, the title was much better than the article. After a few paragraphs pointing out the difference between liberty and … Continue reading

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Stocks Higher, Bonds Higher, Gold/Silver Higher As Nothing Matters Anymore

While market cheerleaders can’t wait for the Dow to get past 11,000 again, other assets are going higher too. Notably, gold and silver have surged recently (more so than stocks) and bonds have soared too (the price has gone up, … Continue reading

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States Selling Municipal Bonds Abroad Will Make Eventual Default Much Easier

Bloomberg has recently reported that states are looking to foreign buyers for their debt. Hey, if they buy the crud at the federal level, why not the state? From the article: “U.S. states are among the cheapest sovereign credits in … Continue reading

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Stocks Up A Lot In September But Bond Market Yawns

While stocks have posted impressive gains in September, up about 7% even after factoring in today’s selloff. However, the 10 year treasury is still just over 2.5% While treasuries initially sold off during the rally and yields went higher, things … Continue reading

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Sentiment Is Back To Full Blown Bullishness

After a fairly poor August, investor sentiment has turned overwhelmingly bullish again following a couple of good weeks in the market. The weekly thestreet.com Bull/Bear poll showed bulls with a 15-20% lead over the bears the past two weeks. Likewise, … Continue reading

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Exposing The ‘Clinton Defense’

Those claiming the coming tax increases won’t hurt the economy and economic bulls who believe that the divided government that will come after the midterm elections often use the ‘Clinton Defense.’ The reasoning is simple: we had this during the … Continue reading

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