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Enron Mail |
The Daily Reckoning
Weekend Edition June 02-03, 2001 Paris, France By Addison Wiggin MARKET REVIEW: Profit Warnings, Layoffs... And A Rising Market "Profit warnings - and layoffs - are still a regular feature of the landscape..." reports the Daily Reckoning Blue Team, "but you wouldn't know it if you watched the indexes. A global slowdown is underway... and all eyes are on the US consumer. Can Joe Six-Pack spend his way out of a global deflationary bust?" The major indexes seem to think so... the Dow closed up 78 on Friday. Just the kind of response we've come to expect from a schizophrenic market pumped up on Fed-roids. Indeed, "there's a lot of money sloshing around out there waiting to get into the market," one analyst told USAToday. Still the big blue missed regaining the mythical 11,000 closing the week off at 10,990. The Nasdaq end up Friday 38 to 2149 - but lost 101 - or four and a half percent. The S&P 500 gained nearly 5 to close the week down 17 points at 1260. Markets Around The Globe: The Nikkei barely moved... the DAX in Germany rose a mite, the London FTSE 100 remained basically the same... and France, well... it dropped, but not by much. The Russell 2000 finished the day up 5 to close the week at 501. ADD'L PRICES FOR THE WEEK: Relative Stability... Dollar Still Strong. Gold: $268 Crude Oil: $27.85 Natural Gas: $3.92 CRB Index: 210 Dollar Index: 118 The Sad, Sad Euro: $.84 British Pound: $1.42 Japanese Yen: $.84 * * * * * * * * * Advertisement * * * * * * * * * * * The landing approach has begun. The flaps are down. A moderate slowdown has hit the U.S. economy. Investors are still optimistic. It seems that everyone believes that Alan Greenspan has engineered a soft landing for the formerly high-flying tech bubble. But according to one of the world's leading economists - it's worse than blind faith. It's "high-octane 'new paradigm' propaganda." Here's what you need to do -- right now -- to prepare yourself for the current crisis: http://www.agora-inc.com/reports/RCLF/Revelations * * * * * * * * * * * * * * * * * * * * * * * * * * * * THIS WEEK in THE DAILY RECKONING By Bill Bonner 06/01/01 MORE IN THEORY THAN IN FACT "...America has more churchgoers than any other developed nation. It has always had higher levels of religious participation. Looking around the U.S., region by region, the higher the level of church attendance - the more likely the voters are to favor the 'invisible hand' of the free market over the iron fist of government. It is rural areas, and especially, the evangelical, super-church regions of the south and southwest that vote for the free-market..." http://www.dailyreckoning.com/body_index3.cfm?id=567 05/31/01 A FREER PLACE? "...I've begun businesses in both countries. The numbers may be technically correct, but they focus on the wrong part of the story. The big difference between France and America is not the difficulty of starting a business, but the trouble of getting out of an unsuccessful one. Marks and Spencers, the British retailer with a store around the corner from my office, decided to close its doors in France after losing money for years..." http://www.dailyreckoning.com/body_index3.cfm?id=566 05/30/01 AMERICAN HERO "...but the wires that held up the grapevines slowed the plane. Harper jumped out of the cockpit with no further injury. At first, Jacqueline Thomas thought he must be a German. She started to run away. Then by some instinct she decided to go to his aid. His face was covered with blood. And the Germans could arrive at any minute..." http://www.dailyreckoning.com/body_index3.cfm?id=565 05/29/01 I, GREENSPAN ... PART DUH "...the Fed was chartered to protect the currency and ensure the stability of the banking system. But its real mission - now - is to keep the economy expanding. Why? Because that gets politicians re-elected. Not only that, it keeps the money flowing to Washington. Give people the impression that they are better off...and they won't fuss about taxes..." http://www.dailyreckoning.com/body_index3.cfm?id=564 05/28/01 I, GREENSPAN ... PART ONE "...the world's financial press has realized what you and I saw months ago (thanks to Dr. Kurt Richebacher): This is no ordinary inventory correction. It is more like the busts of the 19th century...or maybe even the period leading up to the Great Depression of the 1930s. It is caused by a collapse of capital spending and cannot be readily reversed by interest rate cuts... http://www.dailyreckoning.com/body_index3.cfm?id=563 * * * * * * * * * * * * * * * * * * * * * * * * * * * * HEADLINE, NEWS And INSIGHT: "Don't Fight The Fed"...And Fallacies Of The Market...King Coal Making An Appearance... Fighting The Fed or Fighting History By John Mauldin So, where do we place our faith? Do we trust in Greenspan or do we believe in History? The majority of investors are betting on Greenspan. They believe Fed rate cuts will win the day, avoid a recession in the US and help pull out the world. That - plus the aggressive expansion of the money supply - is the ONLY explanation for the recent in buoyancy of the stock market. http://www.dailyreckoning.com/body_headline.cfm?id=1199 Good Intentions And Their Unintended Consequences by Raymond F. Devoe, Jr. For seven years the Fed's "action" appears on the surface to have worked. However, there were two unintended consequences that will make this year's rapid rate cuts less effective in preventing a hard landing/recession... whatever. The first is a colossal misallocation of capital. The second, well... http://www.dailyreckoning.com/body_headline.cfm?id=1192 The Pros Can't Beat The Monkeys by Lynn Carpenter As you know, most mutual funds are well-near incompetent at picking stocks any better than a monkey throwing darts. John Bogle, creator of another Vanguard titan-the S&P 500 Index fund-calculated from looking at all the funds available in 1969 and tracking them for the next 30 years that you might as well throw darts-over your shoulder. Blindfolded. http://www.dailyreckoning.com/body_headline.cfm?id=1187 Coal Market Heating Up by John Myers It's impressive - U.S. coal producers saw exports surge by a whopping 37% last year compared to 1999. An energy-hungry world seems to have a craving for U.S. coal, a fundamental that will put profits in coal companies and dollars into the pockets of smart resource investors. http://www.dailyreckoning.com/body_headline.cfm?id=1191 * * * * * * * * * * * * * * * * * * * * * * * * * * * * The Blue Team Hotwire: Investment Intelligence Bulletins Money.com reported Merrill's tech strategist, Steve Milunovich as saying that "tech and telecom problems we're experiencing might be more than a blip." The problem? An obvious one for readers of the Daily Reckoning: capital spending bust. "Capital spending and tech stock performance are closely correlated," says Mulkunovich. "The likelihood is that the tech stock decline is foreshadowing a multiyear downturn in capital spending." Further, Mulkunovich also notes what Blue Teamers have known for a long time... that "'old economy' return on assets has at around 5 percent, calls into question whether all the spending on tech really has increased productivity." For investment advice consistent with the ideas and insights you read in The Daily Reckoning please enroll in the DR Blue Service: http://www.agora-inc.com/reports/STRT/BigReturns * * * * * * * * * * Advertisement * * * * * * * * * * * Several top geologists quit big firms, and start out on their own. The new stock pays 100%-2,000% a year. But as usual... Nobody Notices The Good News Until It's Too Late. Early investors make all the money before Wall Street even gets wind of the deal. The pattern is repeated. Again and again. With the right tip you could have bet a whole lot less than the ranch - and still made a killing. For reliable hands-on intelligence - and your shot at 1,000% gains in stocks ignored by Wall Street, please click here: http://www.agora-inc.com/reports/CRIS/GroundFloorOps * * * * * * * * * * * * * * * * * * * * * * * * * * * * ******* To REMOVE yourself from this list, send an email to: StkScape_unsub@agoramail.net or go to our web interface at: http://www.agoramail.net/home.cfm?list=StkScape
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