- China increased short-term rates 25 basis points in a general tightening of monetary policy in reaction to inflationary pressures.
- China is world's 2nd largest car market.
- $ down slightly
- oil down at $91.04/bbl., copper up slightly
- Europeans made well in excess of 20% buying U.S. stocks in 2010 as Euro dropped in reaction to Europe's credit problems.
- S&P 500 company profits up 42% in 3rd quarter, 79% of cos. beat estimates.
- Most analysts expect $ to continue to appreciate versus Euro.
- Oil consumption up by more than 1 million bbls./day, total exceeding 20 million bbls./day.
- Actively managed fund managers not having a good year.
Monday, December 27, 2010
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I would like to see interest rate edge up in the US as well as China. We seem to be artificially low which tends to drive up consumption and debt, and decrease savings--- the same things that got us into the financial mess in the first place.
ReplyDelete@ The Grouch I agree and I think you'll see rates rise.
ReplyDeleteI also think that rates will be rising, well into 2011 would be my guess. Let's hope a black swan doesn't delay the recovery from taking hold.
ReplyDeleteI like your advice about index funds. What do you think about Buffet's strategy of a focus portfolio?
ReplyDeletere: Mich Interest rates and energy prices are two possibilities.
ReplyDeletere: Clay Ivy I need to read about the focus approach. Buffett focuses but still a big part is his patience and his managing the companies. I saw a lot of focus in the internet sector 10 years ago as investors were convinced that Buffett et. al. were out of touch and the world had changed. I saw investors stay "focused" too long in energy up to the mid 1980s.
I will definitely read up on it but have to say that I'll start out biased against it.
Thanks for stopping by.
re: Clay Ivy-- unless the face you see in the mirror each morning is that of Warren Buffet or Charlie Munger, I'd stick with indexes. Just look at the investment track record of Robert Hagstrom of Legg Mason, author of The Warren Buffett Way and The Warren Buffet Portfolio. They have to keep renaming his funds they do so badly.
ReplyDeletere:Grouch Good reply.
ReplyDelete