Whitney throws in the towel
Now things are really getting juicy. On Monday, analyst Meredith Whitney of Meredith Whitney Advisory Group upgraded her outlook on Goldman Sachs (GS, trading at roughly $149.65 after hours), raising her price target to $186, helping the stock skyrocket along with the rest of the market to its highest levels in 4 weeks. What’s more is Whitney, one of the most negative prominent analysts in the last few years, essentially waived the white flag just as the market was preparing to fall out of bed based on an important technical level.
Happy America day: Earnings are around the corner
To most of us its known as the Fourth of July. If you have ever traveled to or met someone from another part of the world. they have likely called it “America Day,” and to be honest, I prefer the latter. Regardless of race, gender or religious affiliation, its one of the few holidays everyone in the country observes and hopefully appreciates, and I think it ought to have a more appropriate, prideful nickname.
I’m on the train headed to Boston for the weekend and I thought I’d throw in some thoughts on the past week and a look ahead to the most pivotal time for the market. Continue Reading »
Louis Gerstner’s “brilliant” tax plan
I was going through my normal morning routine of reading the news when I came across a Bloomberg article that I could not disagree with more. Being a trader I’m obviously going to disagree with any type of short term capital gains tax increase, but former IBM CEO Louis Gerstner’s idea was over the top to say the least. Gerstner, claiming that short-term traders “manipulate” the market, says he would like to see ST capital gains taxed at 80%. The scary part for not just traders, but fans of capitalism as well, is that this crazy idea is gaining steam in political circles.
Unfashionably late as usual
Call it beginners luck, but not only have markets sold off since my inaugural post here at Average Joe L-E, but now the White House agrees that unemployment will climb into double digits. Earlier this year Mr Prez and his crew predicted unemployment would peak around 8%. Nice. Those guys have always been a little slow, haven’t they? Speaking of slow, the World Bank today cut its global forecast, citing a 2.9% contraction coming…whatever that means. It’s been pretty humorous over the last 12 months watching these upgrade/downgrade headlines come out so un-fashionably late.
In (un)related news, anyone ever notice how big Timothy Geithner’s head is? (Image only slightly modified). “It” reminds me of Dan Aykroyd in Coneheads, but worse. Aykroyd was an alien, and TG is secretary of the treasury. Anyway… Continue Reading »
Bando Bucks: “Less Bad” economy
Hello to all of you from 50 Broad Street in New York City, and welcome to the newest segment of the Average Joe L-E Blog, Bando Bucks. I’m a twenty-something Wall Street trader and just so happened to start my career as the worst recession in 50 years began. I’ll be chiming in every now and again with a young professional’s perspective on our new financial landscape, economy and trading to complement Joe’s blog. You’ll come to learn that I have many opinions on the stock market and the economy. Trading is a hobby of mine that I enjoy, but it’s also what I do for a living. You can say I’m like any young guy trying to make it in finance…but with 25% of a normal base salary. How I make my living is almost entirely based on trading performance, so I do my homework and take my trading seriously. I’m in this career because of its unlimited upside…sitting in a small room with a few millionaires under 35 doesn’t hurt my motivation either. Continue Reading »
Lazy hiatus
When you live in New Jersey and the shore is so close and your friends have houses there, you can’t really avoid a few good weekends over the summer. But after being surrounded by guidos for a weekend, I’m glad to be back. (Some people are really offended by the stereotype, evidently). Time to step up the summer and get more done on this site.
Part of the things that you will see is MORE WRITERS! We’ll be adding insider financial analysis from a friend of mine, who will be (probably) known as Bando Bucks. He’s got some great insights and even a few good conspiracy theories up his sleeve, which is some every blog needs. (Don’t worry, mine are coming too).
More updates to come.
