By Chris Sorensen - Tuesday, February 12, 2013 - 0 Comments
Why some experts believe this is the start of a once-in-a-generation boom
Ralph Acampora has nearly 50 years of experience as a stock market technician—someone who attempts to predict future stock movements by studying their historical patterns. But he says he learned one of his most important lessons not by poring over data on a powerful computer, but while eating dinner 43 years ago at Delmonico’s, a Lower Manhattan institution that traces its roots to 1827. He was seated next to a 70-year-old named Kenneth Ward, then one of the oldest market technicians on Wall Street.
Acampora, a founding member of the Market Technicians Association, asked Ward which 20th-century market had been most difficult to grasp, saying he figured it must have been the crash of 1929. But Ward replied in a gravelly voice, “Naw kid, that was a lay-up. Don’t get me wrong. We lost a lot of money, but the most difficult market I ever worked was in the 1960s.” Acampora was perplexed. Other than the “flash crash” of 1962, the Dow Jones Industrial Average—an index that tracks 30 U.S. blue chip companies—spent the rest of the decade marching to new heights. “I said, ‘But Mr. Ward, the market was going up.’ And he said, ‘It sure did, young man, but it rolled over everybody. And that’s because nobody believed it.’ ” Continue…
By the editor - Thursday, August 18, 2011 at 10:20 AM - 0 Comments
The real issue is not how to keep credit rating agencies compliant with official thinking, but how to return the American economy to the robust and dynamic powerhouse it has been throughout its history
Prohibitions against shooting the messenger have been forgotten in the midst of the current financial crisis.
Last week Standard & Poor’s credit rating agency expressed publicly what everyone has been thinking for some time: that the United States does not have a credible plan to address its mounting deficit and debt. Net federal government debt as a percentage of GDP is predicted to rise from 74 per cent to 85 per cent by 2021. (Canada is at 34 per cent.) As a result, S&P stripped the U.S. of its AAA credit rating.
Reaction from the White House was furious. Treasury Secretary Tim Geithner said, “S&P has shown really terrible judgment and they’ve handled themselves poorly, and they have shown a stunning lack of knowledge about basic U.S. fiscal math.” Yet any complaint that the rating agency is being too tough on Washington is the height of hypocrisy.