Tom Friedman, over the years has, perhaps, been the most quoted columnist in Investor’s411. No one is always right, but he sets himself apart by innovation. (also, 3 Pulitzer’s and many best selling books) Friedman’s column yesterday on socializing the risk and privatizing the gains for finance and the environment pulls two diverse problems together. Also today- other economic editorials & executions for sexuality.

Friedman

There a lot of meat in his NYT editorial “The Price is Not Right” chew on some of it.

After illuminating “creative destruction” he concludes  “Destructive creation” has wounded both the Market and Mother Nature. Smart regulation and carbon taxation can heal both.

Other Editorials

(If you have an editorial or comment you’d like to share post it on the comment section of the blog – Thanks)

Here’s  diverse group of editorials

Executions for Sexuality

Here’s a story American Corporate media will ignor

Ahmadinejad said there were no gays in Iran and his fellow Shia who now dominate Iraq are having a mass execution of 100 supposed “criminals” many of them for the “crime” of just being gay. This is the supposedly wonderful democratic government we created in Iraq that is killing “gays by the batch” (story) “20 criminals” in each batch.

 

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING

 

Stocks

 

Index Percentage % Volume
Dow +1.16% down
NASDQ +1.78% up
S&P500 +1.18% up
Russell2000 +1.63% -

-

Technicals & Fundamentals

Strong selling in the last hour of trading prevented a larger rally.  The volume was again below average for the third straight day.  This market is dominated by traders not investors.

You’d think at the end of the quarter, mutual funds and pension funds would add a few of the latest winners (March was a big up month for almost all stocks)so that they could show their investors that had these stocks.  It sure looks like these major institutions are NOT yet jumping back into stocks.

G 20 meeting, changing Mark to Market accounting (Thursday)  and the monthly unemployment numbers (Friday) are the major evens of the week. The last is although important is a lagging indicator. Earnings season begins next week.

Baltic Dry (Sea) Index - (see chart link on side of blog)  This rather obscure chart measures the flow of goods across the world. (see yesterday’s blog for more on BDI.)

Since 3/10 the BDI has fallen and yesterday was again  no exception. Another @1.9%  Total loss from high @-25%

Bottom Line here – If the flow of goods between countries continues to fall, so too will stock markets across the world. Unless we start to see some sort of rebound in the BDI a long term rally in stocks is dead.

Reading the Tea Leaves - (sticking with yesterday’s tea leaves since it seems to be coming true)  “In the shorter term - Thursday the gov’t committee (Its called something like FASB) meets to supposedly change Mark to Market accounting.  This should give financials a boost.  But longer term watch the BDI, if it keeps falling so will worldwide stocks.”

Note - FASB - the group that will change accounting standards is Federal Accounting Standards Board.

Again – A caution downside risk is growing.


Long Term Outlook CAUTIOUSLY BEARISH

See Changes in STRATEGY, POSITIONS, & OVERVIEW sections of blog 

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING

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