Archive for November, 2011

A little zig and a little zag…..

Off on another European Vacation

Posted: November 16, 2011 in Uncategorized

Ellen Griswold: [Ellen opens door, seeing there is no bathroom] Clark, there’s no bathroom.
Clark Griswold: Honey, I’m sure Europeans go to the bathroom.
[Clark opens door to his left to find another closet with a mattress inside]
Clark Griswold: … Maybe they don’t.

http://www.cnbc.com/id/45327986

And here we go again, another day and more bad news out of the EuroZone. Now I am sure Clark Griswold and family would disagree but it seems that Europeans do in fact go to the bathroom, just ask any investor, they will tell you how much Europe has dumped on them over the last few months. The tug-of-war between what’s going domestically and what’s going on in Europe has investors at their wit’s end.  Markets rallied a tad with the thought that the Fed and the ECB would coordinate their efforts  and come up with a solution to stem the crisis. However stocks took a leg down today when Fitch signaled trouble for US banks if EuroZone issues worsened. All in all more trouble out of Europe means more trouble for equity markets and the cycle continues…

Homebuilder confidence is up to it’s best levels since May of 2010.

http://www.bloomberg.com/news/2011-11-16/homebuilder-confidence-best-since-may-2010.html

Borrowing costs near a record low and efforts by the Federal Reserve to spur demand may be starting to bear fruit. At the same time, the prospect of more foreclosed properties returning to the market and competing with new construction means a sustained rebound in housing may be years away.

“The trends are pretty flat but not getting worse, so builders may be less depressed,” Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida, said before the report. “We expect there will be some marginal improvement at best, helped by lower mortgage rates”

 

Let’s hope the positive news out of the US will begin to overshadow the mess that is now Europe. Strong Earnings and Strong Housing can’t be a bad thing. Hopefully Angela “the impaler” Merkel and her merry band of Eurocrats can find some sense and get some measures passed.

The Revolution will be Securitized

Posted: November 16, 2011 in Uncategorized

After two month’s of indecision,inaction and indifference the City of New York decided it was time to #vacatewallstreet. Quite honestly I have mixed emotions about the city’s actions; on one hand the Z-Spot had become an unwelcome eyesore/earsoar for locals and Wall Streeters alike on the other hand the protestors opened the dialogue for real social change. It has become apparent to me and I am sure to many others of my generation that “We the people” has become “We the descendents of debt “.  As an aspiring 1%’er I find myself conflicted between aggravation and empathy with the movement. As I was once told “If you put your mind to it you can accomplish anything” for myself that mindset manifested into  a career as a Financial Advisor. I mean outside of catching for the Yankees there is nothing I would rather be doing. But as I take off my Investment Advisor hat and put on my Generation Y hat I recognize that this movement speaks to exactly what I was taught. This all started with an idea, the momentum generated through Facebook and Twitter made it a topic of conversation and the wherewithal of the originators made into a revolution.  Like it or not the movement is real, the participants are real, the voices are real but most importantly the concerns are real.I agree for too long the middle class has been marginalized. Income inequality is larger now than it has been in hundreds of years. The free market system we were taught to love is not such a free market after all. Capitalized gains and socialized losses have replaced true market competition; moral hazard has nothing to do with church; buzz words like TARP,TALF,QE1 QE2 and QE3 have replaced shit, fuck and damn as curse words; High Frequency Trading has replaced true order flow; dark pools dominate the exchange market; leveraged ETF’S are the new growth mutual funds; student loan debt has surpassed credit card debt; municipalities are failing; the NBA is probably going to cancel the season; Kim Kardashian is divorced after 72 days. There are millions of reasons why many in my generation are disenfranchised. There is no hope in the eyes of many. I see it a tad different however, if the “99%” we able to shift the conversation in a matter of 2 months imagine what they can do in 2 years. It is time now to mobilize and securitize this movement, money talks, it always has and always will if the #OWS movement wants to garner the proper attention they must first change the way they allocate their capital. While books, meals, coats, and tents are nice for those at the Z-Spot they do nothing for the movement at large. Now that you are in the conversation, how do you focus politicians on what you want?  How are you going to get the real “99%” on your side? To many this may seem either too daunting or unrealistic, but it is not, actually all you really have to do is take a look at your surroundings. You all decided to occupy Wall Street, tell me who is better at getting everything they want than Wall Street.