What sort of insanity is this? How could cash be an opportunity at a time when three-month T-bills yield less than 10 basis points? No one gets excited earning virtually nothing on their cash balances, but stock investors should consider future opportunities... [more]
We've had some questions about China's GDP accounting in the past. Here's an accounting sleight-of-hand the Chinese government is using to support the banking system: [more]
With a first-day gain of just 28% -- less than half the average gain this year -- the IPO of Metallurgical Corporation of China is considered a disappointment. I recognize that China is embarking on a "Great Wall to Nowhere" infrastructure program to stimulate growth, but 42 times trailing earnings for the contractor of the "Bird's Nest" Olympic stadium looks pretty rich to me all the same.  [more]
My take on the recent spectacular price action in AIG (NYSE: AIG) shares.
We are beginning to see sightings of animal spirits in most all quarters of the financial markets. This week promises a surge in IPOs: [more]
It's over -- according the world's most successful investor. Yesterday, Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett effectively called the end of the U.S. recession... [more] [more]
"But if western banks have been turned upside down, in Asia, precisely the opposite has happened: they have been turned downside up. A year after the Lehman implosion, four of the world’s top 10 banks by market capitalisation are Chinese. This April, Industrial and Commercial Bank of China became the largest in the world by deposits, at about $1,300bn, surpassing JPMorgan Chase and Mitsubishi UFJ. (By assets, highly leveraged western banks are still bigger.) Compare this with 2006, when seven of the top 10 banks were western and the only Asian representatives were Japanese." [more]
How extraordinary! Carlyle -- one of the world's largest alternative investment firms -- is apparently examining plans to go public. It's as if the credit crisis had never occurred. [more]
My take on looking for value within AIG:
1 Year Later: Is AIG a Buy?
The following article from the Financial Times relates to a major fundamental trend, which will probably have some positive and negative consequences for the U.S. and Europe. All told, however, it's far from clear that the net impact for Western economies will be positive. [more]
September 2008 was an extraordinary month, even by the standards of an extraordinary crisis. We witnessed... [more]
September got off to a rocky start on Tuesday as the Dow Jones Industrial Average lost 2%, stoking fears concerning what has historically been the worst month in the calendar for stocks. But just how bad could things get this year? [more]
Bank of America (NYSE: BAC) wants the government out of its capital structure (and, by extension, its affairs), and it wants to start Uncle Sam on its way... [more]