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Asian stocks rose for a second day after slower-than-estimated growth in the U.S. economy stoked speculation the Federal Reserve may hold back from reducing stimulus.
According to my dictionary "unfound" is not a legitimate word (at least not in the English language). But that's a quibble- the link is, to use a legitimate technical term, "f-----".
Charles, you noted: "Has to be most distorted logic ever." I will presume your statement is relative to continuing stimulus, per the slant of the linked story. Please correct me, if my assumption is wrong. NOTE: disclaimer/disclosure: I am fighting a nasty head cold, using meds and have just finished a second very large cup of coffee having only 5 hours of restless sleep. Continuing to read what I write here constitutes an electronic "hold harmless" agreement; as I may not know what the heck I'm writing about.
One online dictionary meaning for the word logic is below. Logic: 1. The study of the principles of reasoning, especially of the structure of propositions as distinguished from their content and of method and validity in deductive reasoning. 2. a. A system of reasoning: Aristotle's logic. b. A mode of reasoning: By that logic, we should sell the company tomorrow. c. The formal, guiding principles of a discipline, school, or science. 3. Valid reasoning: Your paper lacks the logic to prove your thesis. 4. The relationship between elements and between an element and the whole in a set of objects, individuals, principles, or events: There's a certain logic to the motion of rush-hour traffic. 5. Computer Science a. The nonarithmetic operations performed by a computer, such as sorting, comparing, and matching, that involve yes-no decisions. b. Computer circuitry. c. Graphic representation of computer circuitry.
Scott noted/linked early yesterday (Wednesday, June 26) the report of GDP at 1.8% versus the forward guess of 2.4%. One may presume this will be adjusted in the future. From my understanding, this number; as well as many other indicators should lead one to believe that the Fed will not reduce the current QE program purchases. Barring any nasty events, I will also suspect that many bond areas will continue to recover from the recent losses; as well some upward pressure movement in the equities areas, more so in the U.S.
So, yes; distorted logic continues to affect we investors. Europe's status is still shakey, in my opinion; and Japan may indeed get their 2% inflation to the citizens by virtue of killing the value of the Yen and the rising cost of imports. Not quite sure if this is a sane policy or not.
I remain conflicted by what I think I see and know, relative to investment areas. In Michigan, I see signs of economic improvement in some areas. Not unlike anyone else here at MFO, the viewpoint of an improving economy is going to vary widely based upon where one lives and their ability to sort out what they think they see as improvement; and then to ask the proper questions to obtain the proper answers. A recent MI story indicated 50 new jobs for a "call center"; which plans to expand to 300 jobs in the next few years. The work pays $10/hour with a benefit package for some healthcare provisions. I salute those who want to work; but the wage is pretty tight on the wallet for anything other than to provide the basics of a family life. But, new engineering jobs are also being created in the auto industry in Michigan. On the other hand, I must also attempt to measure the "old money" that stills resides in Michigan. The "old money" being the hugh population of retired boomers who have benefits from prior union based employment. From the post WWII period in particular, found many moving to MI for the good, union based jobs. The auto industry lead this change and affected many other work positions that were union based for both benefits and wages. Many of these retired folks have enough retirement income and health benefits to continue to spend money in this state. This causes a distortion into what one is able to measure as economic strength at this time. There is indeed a fairly large gap in the have's and have not's, relative to the ability to spend money for whatever. The variables are vast even within our large state; let alone trying to compare the spending abilities as measuread against either Mississippi or Arkansas, as examples. Six hundred miles to the northwest by road; from the fairly well to do outlying suburbs of the greater Detroit area finds a whole different world in the Upper Peninsula of Michigan. Investing today reminds me of the evolution of the "American" auto industry over the past 20 years. Outsourcing of vehicle parts for the auto industry began to take place as the big 3 auto makers attempted to reduce their "own" factory's production of some parts to other countries. Today is even more complex. My wife's Chrysler 300 is built in Ontario, Canada; with majority ownership of the company by Fiat of Italy and minority ownership by the UAW health plan; and as Chrysler really wanted to improve the gas mileage of the vehicle, the 8 speed transmission is from Audi, in Germany. Note: 9 and 10 speed transmissions are currently being engineered and apparently will be built in MI in the next few years. And, at 65 mph, with light wind speeds and fairly level driving elevations, the 300 provides 40 mpg all the day long. The many 1,000's of small machine shops who vendored to the big 3 auto makers 20 years ago are long gone and likely not returning. These changes and the continued changes from technology will continue to impact real working jobs in the future. Announcements of a $500 million upgrade to an auto factory 10 years ago might likely include several hundred new job positions. Today, perhaps only 33 new jobs will be formed.
Well, nothing much new with all of the above words; as it is most difficult to stay ahead of the quality discussions here at MFO; as is the norm, and thankfully so. Our house will continue to attempt to deal with the "distorted logic", as related to investing. Wondering what Star Trek's Spock, with his "logic" would have in a portfolio today.
Lastly, 40%/40%/20%....cash (mostly stable value acct holdings at 1.5%)/mixed bond funds/equity funds. I may place a note about this later...........depending on my head cold, the meds and nap time quality.
Comments
http://www.bloomberg.com/news/2013-06-27/asian-stocks-gain-as-slow-u-s-growth-lifts-stimulus-bets.html
I will presume your statement is relative to continuing stimulus, per the slant of the linked story. Please correct me, if my assumption is wrong.
NOTE: disclaimer/disclosure: I am fighting a nasty head cold, using meds and have just finished a second very large cup of coffee having only 5 hours of restless sleep. Continuing to read what I write here constitutes an electronic "hold harmless" agreement; as I may not know what the heck I'm writing about.
One online dictionary meaning for the word logic is below.
Logic:
1. The study of the principles of reasoning, especially of the structure of propositions as distinguished from their content and of method and validity in deductive reasoning.
2.
a. A system of reasoning: Aristotle's logic.
b. A mode of reasoning: By that logic, we should sell the company tomorrow.
c. The formal, guiding principles of a discipline, school, or science.
3. Valid reasoning: Your paper lacks the logic to prove your thesis.
4. The relationship between elements and between an element and the whole in a set of objects, individuals, principles, or events: There's a certain logic to the motion of rush-hour traffic.
5. Computer Science
a. The nonarithmetic operations performed by a computer, such as sorting, comparing, and matching, that involve yes-no decisions.
b. Computer circuitry.
c. Graphic representation of computer circuitry.
Scott noted/linked early yesterday (Wednesday, June 26) the report of GDP at 1.8% versus the forward guess of 2.4%. One may presume this will be adjusted in the future. From my understanding, this number; as well as many other indicators should lead one to believe that the Fed will not reduce the current QE program purchases.
Barring any nasty events, I will also suspect that many bond areas will continue to recover from the recent losses; as well some upward pressure movement in the equities areas, more so in the U.S.
So, yes; distorted logic continues to affect we investors. Europe's status is still shakey, in my opinion; and Japan may indeed get their 2% inflation to the citizens by virtue of killing the value of the Yen and the rising cost of imports. Not quite sure if this is a sane policy or not.
I remain conflicted by what I think I see and know, relative to investment areas. In Michigan, I see signs of economic improvement in some areas. Not unlike anyone else here at MFO, the viewpoint of an improving economy is going to vary widely based upon where one lives and their ability to sort out what they think they see as improvement; and then to ask the proper questions to obtain the proper answers.
A recent MI story indicated 50 new jobs for a "call center"; which plans to expand to 300 jobs in the next few years. The work pays $10/hour with a benefit package for some healthcare provisions. I salute those who want to work; but the wage is pretty tight on the wallet for anything other than to provide the basics of a family life. But, new engineering jobs are also being created in the auto industry in Michigan.
On the other hand, I must also attempt to measure the "old money" that stills resides in Michigan. The "old money" being the hugh population of retired boomers who have benefits from prior union based employment. From the post WWII period in particular, found many moving to MI for the good, union based jobs. The auto industry lead this change and affected many other work positions that were union based for both benefits and wages. Many of these retired folks have enough retirement income and health benefits to continue to spend money in this state. This causes a distortion into what one is able to measure as economic strength at this time. There is indeed a fairly large gap in the have's and have not's, relative to the ability to spend money for whatever. The variables are vast even within our large state; let alone trying to compare the spending abilities as measuread against either Mississippi or Arkansas, as examples. Six hundred miles to the northwest by road; from the fairly well to do outlying suburbs of the greater Detroit area finds a whole different world in the Upper Peninsula of Michigan.
Investing today reminds me of the evolution of the "American" auto industry over the past 20 years. Outsourcing of vehicle parts for the auto industry began to take place as the big 3 auto makers attempted to reduce their "own" factory's production of some parts to other countries.
Today is even more complex. My wife's Chrysler 300 is built in Ontario, Canada; with majority ownership of the company by Fiat of Italy and minority ownership by the UAW health plan; and as Chrysler really wanted to improve the gas mileage of the vehicle, the 8 speed transmission is from Audi, in Germany. Note: 9 and 10 speed transmissions are currently being engineered and apparently will be built in MI in the next few years. And, at 65 mph, with light wind speeds and fairly level driving elevations, the 300 provides 40 mpg all the day long.
The many 1,000's of small machine shops who vendored to the big 3 auto makers 20 years ago are long gone and likely not returning. These changes and the continued changes from technology will continue to impact real working jobs in the future. Announcements of a $500 million upgrade to an auto factory 10 years ago might likely include several hundred new job positions. Today, perhaps only 33 new jobs will be formed.
Well, nothing much new with all of the above words; as it is most difficult to stay ahead of the quality discussions here at MFO; as is the norm, and thankfully so. Our house will continue to attempt to deal with the "distorted logic", as related to investing. Wondering what Star Trek's Spock, with his "logic" would have in a portfolio today.
Lastly, 40%/40%/20%....cash (mostly stable value acct holdings at 1.5%)/mixed bond funds/equity funds. I may place a note about this later...........depending on my head cold, the meds and nap time quality.
Take care of you and yours,
Catch