by Wolf Richter • • Comments Off on The Corporate Malaise That The Stock Market Is Furiously Ignoring (for now) – Societe Generale’s Quant Research
“Thank goodness equities went up in 2013, otherwise it might have been a rather depressing year” – Societe Generale’s exasperated Global Quantitative Research team.
by Wolf Richter • • Comments Off on Hang On Tight: ‘Merger Monday,’ Which Died in 2008, Is Back
I thought we’d never see “Merger Monday” again, the concept. But now, the unthinkable happened, the zombie phrase has walked back into the scene. Like in the bubble days of 2007: the big numbers were there, the deal exuberance, the craziness, the hoopla.
by Wolf Richter • • Comments Off on Lies, Damned Lies, and Banks: Deutsche Bank’s Whitewash Of “Senior Management”
Germany has its own JP Morgan, mired in a swamp of sordid scandals, investigations, lawsuits, and fines. Now a letter by the banking regulator was leaked that blasts Deutsche Bank’s internal investigation of the rate rigging scandal as a senior management whitewash.
by Wolf Richter • • Comments Off on Corporate Earnings Goofiness Goes Hog Wild
Corporate earnings season has been a doozy before it even got started. The well-scripted song and dance, designed to pull a bag over investors’ heads, works marvelously: stalled revenues and earnings propel stocks higher. But the shenanigans are bumping into limits.
by Wolf Richter • • Comments Off on Bernanke’s Delirious Praise For His Handiwork, The Concentration Of Power At the Top Banks
Bernanke wanted to reflect on the “accomplishments of the past eight years,” demolish the “sceptics” that still doubted the Fed was the best thing since sliced bread, and pat himself on the back. His policies “have helped promote the recovery,” he said. The “recovery” of what?
by Wolf Richter • • Comments Off on Plug Power, “Exhibit A” Why Most Hot IPOs Suck Long Term
Plug Power soared 68.4% in the first two trading days this year. Not because it got a buyout offer but because it made another one of its promising announcements. The stock is up by a factor of seven since July to close at … $2.61. Down from $1,500 in March 2000.
by Wolf Richter • • Comments Off on Fizzing Optimism For Wild Financial Engineering In 2014
Nothing could have been a more pungent metaphor for the current investment climate than the headline, “Macau gambling revenue hits record $45 bn in 2013.”
by Wolf Richter • • Comments Off on When Soaring Margin Debt, Sign of Investor Confidence, Turns Into A Nightmare On Steroids
There have been three mega-crashes in my investing lifetime, and three concurrent peaks in margin debt. In April, margin debt broke the record set in 2007 and has continued to rise. Over the last three months, it has soared 10.9%. Are we there yet?
by Wolf Richter • • Comments Off on Financial Engineering Wildest Since The 2007 Bubble
Financial engineering had a glorious year. Now finally, after five years, the crazy fun is back, and the good thing is: this time, it’s different. This time, the smart money is selling!
by Wolf Richter • • Comments Off on Junk-Debt Time Bomb: Ticking Till The Fed’s Money Dries Up
Discount retailer Loehmann’s did what other retailers – and a large number of other junk-rated companies – will do once the Fed allows a sense of reality into the markets: it filed for bankruptcy. Investors had refused to fund further losses.
