Global equities are "vulnerable to correction" after rallying from their March lows and as governments around the world withdraw stimulus measures, says investor Jim Rogers.
"We're overdue for a correction" Rogers says.
"Stock markets around the world have been going up for the past 10 months," he told Bloomberg. [more]
China cannot grow enough to the point that its economy buoys the global economy, says noted economist Nouriel Roubini.
A glut in worldwide industrial capacity is too great and still threatens recovery from the global financial crisis, and consumer demand in China is not strong enough to kick start growth, says Roubini.
“China cannot be the only engine of global economic growth,” Roubini says, according to MarketWatch. [more]
Stock market rallies are likely to fizzle during the second half of the year in developed economies, says investment guru Nouriel Roubini.
That’s because sluggish economic recovery will curb gains in corporate earnings, the New York University professor maintains.
“The real economy is gradually recovering, but since March, asset prices have gone through the roof,” Roubini said in a recent speech, according to Bloomberg. [more]
"THE UNITED STATES has the third greatest per-capita beef consumption of any country worldwide, behind only cattle-crazy Argentina and Uruguay. From Tennessee to Texas, we love our beef. [more]
While this is admittedly clearly a rip-off of JakilaTheHun's Hunnish News Invasion, I figured "what the heck" and in an homage to him, wanted to bring my own version to the Fools on this Martin Luther King Jr. Day, which is not a holiday for this Canadian and therefore for me, is only a regular day, but without the benefit of passing time with CAPS, other than providing some (hopefully) interesting information with this blog. [more]
Superstar bond fund manager Bill Gross of Pimco says the government and Federal Reserve shouldn’t reverse their economic stimulus, because the economy can’t handle it.
He doesn’t think the Fed should stop expanding its balance sheet, let alone consider raising interest rates.
“The economy is far too fragile for the Fed to exit quantitative easing,” he told Bloomberg. [more]
DUBAI—Representatives from the emirate of Dubai announced with disappointment this week that its recent debt crisis has forced developers to halt construction on the city's long-planned 22-mile-long indoor mountain range. [more]
Enron? Bear Stearns? Bernie Madoff? They’re all big stories about big losses and have hurt a lot of employees and investors. But none come close to getting my vote for the decade’s most dastardly deception…
First came Enron, with $65.5 billion in assets, going belly-up and becoming the largest bankruptcy in US history at that time. The stock went from a high of $84.63 in December 2000 to a whopping 26¢ one year later. And what had we been told by the media? Fortune magazine dubbed Enron “America’s Most Innovative Company” for six consecutive years. [more]
THIS WEEKEND, after devaluing the country's supposedly "strong" currency by 50%, Venezuela's Hugo Chavez mobilized the National Guard and announced plans to seize any business that raised prices without government permission. "At this moment, there is absolutely no reason for anyone to raise the prices of anything," Chavez said on his weekly television address. "I want the National Guard in the streets, with the people, to fight speculation," said the dictator, calling higher prices a form of robbery.
If that language sounds familiar, it's because our own country has regularly engaged in a similarly shameful assault. [more]
[I've included two links today because both news items are potentially the same topic. On that note, the timing of the first one in particular was particularly interesting after having read Peter Grandich's newsletter today. He's been calling for a market rally (one day from the March lows) and for the Dow to hit 10,500-11,000. While that has happened, it's happened more quickly than he expected, so still expects another two good quarters before the recession begins its second leg downward.] [more]
David Rosenberg, chief economist for Gluskin Sheff + Associates, takes issue with the consensus view that a sustained economic recovery has begun.
“We are in a post-credit bubble credit collapse that is ongoing,” he writes on Ritholtz.com.
And that doesn’t bode well for financial markets, though the recent rally might continue for a while, Rosenberg says.
“Exponential rapidly rising or falling markets usually go further than you think, but they do not correct by going sideways.” [more]
Choose U.S. investments over emerging markets and buy stocks, not bonds, advises Gloom, Boom and Doom investment letter editor Marc Faber.
“My feeling is that the U.S. will outperform emerging economies in the first six months of 2010,” Faber told CNBC. [more]