Here's the issue: most fund managers are used to taking some time off in August, or at least in the July-August period at some point. This year, their plans were thwarted by what can only be described as PAIN. So Joe Manager didn't have his time off, and wasn't able to de-stress.
Viewing the remainder of this article requires a Subscription
The euro is starting off 2012 weak - that's not news - Spain is having a tough time with sovereign auctions, and Greece will soon be testing the euro's exit mechanisms.
Viewing the remainder of this article requires a Subscription
I have been thinking about vested interests. It seems like everyone talks about vested interests in some way, and usually the conversation trends towards what happens when interests conflict. Here's the problem: interests always conflict.
Viewing the remainder of this article requires a Subscription
Remember when the USD was gasping for its last breath? Remember when Russia decided to diversify its foreign cash holdings along with China and bought up more euros? Remember . .
Viewing the remainder of this article requires a Subscription
Over the past two years I've brought up 1987 periodically as just a mere possibility that has to be factored. I don't want to think back to those days of currency wars, political grandstanding, and crazy volatility, but alas, every time I try to clear my mind . . .
Viewing the remainder of this article requires a Subscription
Paul Krugman said it better than I could, and while I'm not generally a fan of Krugman, it's worth noting:
What has happened, it turns out, is that by going on the euro, Spain and Italy in effect reduced themselves to the status of third-world countries that have to borrow in someone else’s currency, with all the loss of flexibility that implies.
(H.T.
Viewing the remainder of this article requires a Subscription
This will not be my last thought on the euro . . . Italy is NOT the problem, it is just a manifestation of the problem. Political and economic leaders want investors and citizens to view Greece and/or Italy as the problem.
Viewing the remainder of this article requires a Subscription
I assume Berlusconi is having some sleeping problems this week as his government falls; his only consolation is that prognosticators who predicted Italian bond yields would fall when he's gone have turned out to be completely mistaken. The problem with Italy isn't Berlusconi . . . it's Italy.
Viewing the remainder of this article requires a Subscription
Forget about MF Global's bankruptcy - it's a symptom, not the cause. Forget about Italy - again, symptom. Investors are waking up to the harsh reality that the European Union, through the euro, is structurally flawed.
Viewing the remainder of this article requires a Subscription
The problem with pessimism is that you’re always almost right and almost on time.
Viewing the remainder of this article requires a Subscription
The euro conversations are starting to reflect the futility of the situation, but the market is still not adjusting to the new reality. Why? I'm not sure.
Viewing the remainder of this article requires a Subscription
As the euro continues to disappoint the market, or just live up to my negative expectations, European equities are following the erratic behavior, and for good reason.
Viewing the remainder of this article requires a Subscription
From the
WSJ.com:
Today, Jürgen Stark, Member of the Executive Board and Governing Council of the European Central Bank (ECB), informed President Jean-Claude Trichet that, for personal reasons, he will resign from his position prior to the end of his term of office on 31 May 2014.
Viewing the remainder of this article requires a Subscription
Well, maybe it's just my eyes that are glued to the euro. First, I increased my short euro position, so maybe there's some confirmatory bias in looking at it more closely, but I'm not sure that's it.
Viewing the remainder of this article requires a Subscription
While US markets are closed for Labor Day, Europe is certainly NOT closed today. The German DAX was down 5% and the rest of the continent was off anywhere from 3-5%.
Viewing the remainder of this article requires a Subscription
Strategy/Allocation | | 
January 12, 2012 12:41 pm | 
Comments Off