Dow Hits 11,000
As I write this the Dow Jones Industrial Average is over 11,000 for the first time since May. The stock market tends to be a leading indicator. Where it is pointing - as it has been - is toward economic recovery.
Bond Bubble Continued
This week I have been unable due to time constraints to post more on my Is There a "Bond Bubble"? thread. I will get around to saying why I think there is a bond bubble; but not every bond investor will suffer. Some will do just fine, others will get skinned. Explanations of why will come in my next few posts.
Worth Your Time To Read
I read an opinion piece in today's New York Times entitled "Make Wall Street Risk It All" and recommend it highly. During the financial crisis many large banks and investment firms received billions in bailouts to keep them from collapse. Our firm, like many small firms, did not get a taxpayer subsidy, did not fire staff or cut salaries, did not abandon our obligations - facts of which I will always be proud. But we also did not pay ourselves billions in bonuses shortly after being rescued by taxpayers. William D. Cohan's article lays out clearly how Wall Street should work: big rewards if you take risk and succeed; collapse if you fail. Any parent who has ever bailed out a child knows that it is not good for the child in the long run. Wall Street is not a child and should not be so treated.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).