Treading water

Happy Friday everyone! You may have noticed that the stock markets have been going sideways for a little while – no dramatic ups or downs of note. This is a very good sign that the markets are beginning to discount facts and not emotions – a good thing. By the way, parenthetically speaking here, the word “discount” is market jargon for “respond to.” So...
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More encouraging news

By now you have all heard me say that what the U.S. consumer does largely determines what the U.S. economy does. You see it’s just a matter of the sheer mass of the U.S. consumer: 66-70% of gross domestic product comes out of our pockets. The Investment Company Institute, which is the leading mutual fund organization, said yesterday that long-term stock funds saw net positive cash inflows...
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Supreme court rules on Chrysler

Yea! That’s what I have to say. About? The Supreme Court’s ruling on the Fiat acquisition of Chrysler. The high court refused to prevent the acquisition from taking place saying that the Indiana pensions funds had not “carried the burden” of proving that their claims merited the court’s attention. This is good news for several reasons. One, lenders to distressed...
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Texas Instruments’ good news

Hello everyone, First off, I had an encouraging meeting yesterday with McGraw-Hill here in New York City. Send good vibes my way and hope that I get a book deal soon. The subject of the book is using your right brain to help make better investment choices. Second, applying my right brain and scanning the news this morning, the most important news story is from Texas Instruments (ticker: TXN). In...
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Dilution of regulatory reforms

The Obama Administration is backing away from consolidating the number of regulatory agencies that oversee the U.S. financial system. However, they are still interested in broadening the authority of the existing agencies to help mitigate and manage risk in the financial markets. I consider this to be a defeat for the Obama Administration and ultimately a defeat for investors in the long-run. In...
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Ruling of the Supreme Court re: Chrysler

Yesterday the U.S. Supreme Court has stayed the Fiat acquisition of Chrysler so that the interests of an Indiana pension fund can be heard. The stay has the potential to cause the multi-billion dollar deal to unravel and leaves tens of thousands of jobs worldwide in the lurch. All over $40 million. My guess is that the pension fund has undertaken this exercise in the hopes that it receives a...
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Chrysler fiat deal held up

Oh my gosh. Have any of you been reading about the Fiat purchasing Chrysler deal being held up? An Indiana pension fund has filed with the U.S. Supreme Court to nullify the deal. The reason is that they are upset that the interests of junior claimants to the assets of Chrysler seem to be receiving preferential treatment to senior claimants. The total amount of their investment, made last year,...
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