Daily Archives: December 22, 2008

The Individual Investor Takes A Holiday

AngrybearIn most big market downturns, individual investors give up the ghost and move money to their mattresses. Not only do they think that a bad economy will continue to drive equities down. They think that the fix is in when they see rich crooks like Madoff rip off the wealthy and the smart money. Even institutions who know what they are doing get gored.

This stock sell-off is no exception. Individual investors appear willing to take no return in money market funds rather than see their net worths hammered further.

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Posted on: December 22, 2008 – 6:03 am in Mutual Funds

Japan Exports: The First Economy To Fall Hard

95129cWhile GDP measurements vary a bit from country to country, Japan is probably the world’s second largest economy. Based on the decade plus economic stagnation in the nation in the 1980s and 1990s, it appears that Japan may be more susceptible to deep and long downturns.

Or, it may be that, with its reliance on exports and imported oil, that Japan is a good early warning system for what is likely to be next for other major developed economies.

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Posted on: December 22, 2008 – 5:50 am in International Markets

Russia And China: Rioting For Fun And Profit

RussiaViolent labor unrest in the US may have seen its best days end with the Columbine Mine Massacre of 1927. There were some incidents after that, but they were not as notorious. American workers have taken to the negotiating tables, and, based on contracts set up in the newspaper and auto industries, the tactic has worked quite well.

The Russians and Chinese may have a greater tendency to hit the streets to settle economic scores which is hardly good for government stability. Recent incidents in the two countries show that a recession can turn especially unpleasant in a relatively short period of time.

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Posted on: December 22, 2008 – 5:28 am in International Markets

Media Digest 12/22/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

NewspaperAccording to Reuters, Japan’s recession deepened as its exports fell sharply.

Reuters reports that Ireland will spend $7.7 billion to bailout its largest banks.

Reuters reports that Toyota (TM) will report its first operating loss.

Reuters writes that gasoline prices hit their lowest level since February 2004.

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Posted on: December 22, 2008 – 3:47 am in Press Digest, , , , , , ,

Asia Market And Europe Open 12/22/2008

ChinaMarkets in Asia were mixed

The Nikkei rose 1.6% to 8,724 despite a big drop in exports. Toyota (TM) fell after cutting output.

The Hang Seng dropped 2.6% to 14,742.

The Shanghai Composite was off 1.5% to 1,989.

At the open in Europe, the FTSE was off .6% to 4,261. The Dax fell .2% to 4,688 and the CAC 40 fell 1% to 3,193.

Data from Reuters.

Douglas A. McIntyre

Posted on: December 22, 2008 – 3:18 am in International Markets,