Thursday, July 12, 2007

The Mr. Magoo Market / Comstock

Funny that this survey is just coming out during times when the indices are hitting new (nominal) highs. But this is just one more example that this market is "slightly" decoupling from fundamentals and is enjoying the ride on the monster liquidity wave. As always click on the headline to read the entire report from Comstock

Passenderweise kommt die Umfrage gerade zu Zeiten heraus wenn die Indizes neue nominale Rekorde in den USA erklimmen. Das zeigt aber einmal mehr das es momentan eine "leichte" Abkoppelung von Fundamentaldaten gibt und zur Zeit die gignatische Liquiditäts-Monsterwelle geritten wird. Wie üblich auch hier bitte auf die Überschrift klicken um den vollständigen Report zu lesen.

Hat tip to Steve Barry

It is also not likely that the economy will be bailed out by any strong growth in capital expenditures.
The Conference Board Business Confidence Index fell 8 points to 45 in the 2nd quarter, down from 70 two years earlier.

> from Wikipedia
Quincy Magoo is a wealthy, short-statured retiree who gets into a series of sticky situations as a result of his nearsightedness, compounded by his stubborn refusal to admit the problem
Even more disappointing was the fact that expectations of CEOs for their own industry over the next six months dropped 13 points to the lowest level since the 4th quarter of 2000 and that only 22% expected profits to increase.
Studies by Ned Davis Research indicates that falling business confidence is highly correlated with lower capital expenditures and falling earnings.
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2 Comments:

Anonymous Anonymous said...

Never knew his Vorname was Quincy...

eh

2:58 AM  
Blogger jmf said...

Moin Eh,

if Wikipedia says so.... :-)

3:12 AM  

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