Roubini getting more positive about the market

Roubini getting more positive about the market

(This is not an April Fools' Day joke)

Is the Dow's next stop 5,000 or 10,000?

Is the Dow's next stop 5,000 or 10,000?
(Source TIME Permalink Read Article)
To get answers, TIME's John Curran spoke with Jim Paulsen, chief investment strategist at Well Capital Management:
If the stock market rallies in the weeks ahead, is there any reason to believe in it?
Well, I don't know why there wouldn't be. But I'm interested in the way you phrased your question because it is exactly where the consensus is today. There is absolutely every belief that we could go lower; and while we could rally, the belief is that it won't stick. It just says volumes about where we are right now. It's not just you. Even bulls like myself have that same feeling in their depths.

Most expensive real estate markets in 2009

Most expensive real estate markets in 2009
(Source) Global Property Guide

Last Updated: Feb 15, 2009
No surprise - Monte Carlo is No 1 in the Global Property Guide's list of World's Most Expensive Residential Real Estate Markets 2009, more than twice as expensive, at US$45,000 per square metre, as the runner up.
Battling for the number 2 position are prime central Moscow and London. Prime central Moscow's US$20,853 per square metre price tag slightly outpaces core Prime London's US$20,756 per square metre, though it is fairer to say the two cities are neck-and-neck.
London residential property prices have fallen for much of 2008, while Moscow property price declines only started in the last quarter, allowing Moscow to catch up with London. Both countries have experienced strong currency declines.
Tokyo and Hong Kong come in fourth and fifth, respectively.
New York, the only US city included in the survey , is 6th, with an average price of US$15,000 per sq. m.
Completing the top ten most expensive real estate markets are two European cities (Paris at 7th and Rome at 9th) and two other Asian cities (Singapore at 8th and Mumbai at 10th). Average prices range from US$9,000 per sq. m. to US$12,000 per sq. m.
The figures are based on the average price of a 120 sq. m., good-condition high-end used apartment in the city centres of more than 110 cities around the world, typically the economic centres where most foreigners are likely to buy.

http://www.globalpropertyguide.com/investment-analysis/Most-expensive-real-estate-markets-in-2009

4 Fatal Financial Fantasies

4 Fatal Financial Fantasies

Investipedia has some sound advice about Financial Fantasies
Many of us have financial fantasies that help us to remain optimistic in the face of financial hardship. But while there's nothing wrong with dreaming, some fantasies do more harm than good, especially when they affect the way we behave. Why give up the dreams? Because expecting a windfall or a free ride to get you through life isn't going to make you successful - in fact, it will allow you to make excuses that can stand in the way of your financial freedom. Let's take a look at four common financial fantasies - you're better off forgetting about them, but we'll provide some realistic, actionable plans you can put in their place.

Common Financial Fantasies
1. I'll receive a large inheritance.
2. I'll win the lottery.
3. I'll start a website and make a killing off advertising.
4. I'll make a ton off an initial public offering (IPO).

Reality Check
1. I'll start my own business.
2. I'll finish college.
3. I'll make passive supplemental income through investments.
4. I'll buy a house.

Read it all on Investopedia.com

Madoff results were impossible to replicate

Madoff results were impossible to replicate

Michael Markov, chief executive of Markov Processes International, said his company analyzed one of Fairfield Greenwich's funds that invested with Madoff in 2006 and concluded the returns were most likely not real. Such returns would have required perfect foresight and more option contracts than existed in the market, he said.
"It was impossible to replicate," Markov said.
Click on the link to visit the Markov Processes International website

(Since 1992, Markov Processes International has been a preeminent provider of customized solutions to the financial services industry. By harnessing our great expertise in advanced mathematics, financial analysis and software development, we have developed software applications and consulting services that reflect the creative spirit and advanced thinking that define our organization. It is the unique appreciation and understanding of our clients' needs, however, that is most responsible for the flexible and efficient nature our products. We strive to continually provide the most advanced solutions to our clients, regardless of their size or specific needs. As a result, we provide everything from enterprise platforms that serve global financial services organizations to software applications that serve individual investment advisors.)

12.22.2008 | MPI Announces Release of New Research Paper
- PRESS RELEASE - MPI's paper entitled Madoff: A Tale of Two Funds demonstrates how advanced returns-based analysis techniques could have alerted investors to potential inconsistencies. Download PDF

“Titans- Heroes- Mortals” report on Asian Companies

Analysis from Stock Market Guide , Japanese equity research firm, Nomura Securities, released “Titans- Heroes- Mortals” report on Asian Companies

Japanese equity research firm, Nomura Securities, released “Titans- Heroes- Mortals” report on Asian Companies which will give an idea about the future growth prospects of the Indian Companies. Nomura picked 5 Titans and 6 Heroes among Indian Companies which will have better growth prospects. Blog readers should treat it as another aid in their research to pick good companies but not as an investment advice.

Is Warren Buffett Insane?

Is Buffett Insane?
November 28, 2008
In the midst of economic chaos, Warren Buffett recently made a bold prediction. He said that now is the time to buy American stocks. (Full Story on the Motley Fool)
Of course, this call seems utterly insane. Banks are failing, the credit markets are deadlocked, unemployment is skyrocketing, and there's likely to be terrible news for months.
On the other hand, this is Warren Buffett, and he's made these sorts of predictions before.
1974: Stagflation
The years 1973 and 1974 were two very bad ones for the market. OPEC had started flexing its muscles, causing oil to quadruple. This resulted in a long recession, with inflation spiking to 12.3% in 1974, while real GDP growth fell by 0.5%. America experienced stagflation -- the ugly combination of a recession and high inflation rates -- and people were terrified. The situation was even worse in the United Kingdom, where the government was bailing out banks after real estate crashed. Over those two years, the S&P 500 plunged by 42%.
It was then, on Nov. 1, 1974, at the height of the pessimism, that Buffett made his first well-publicized bullish market call. He noted that he was well aware that the world was in a mess, but that stocks were simply too cheap. "If you're only worried about corporate profits, panic or depression, these things don't bother me at these prices."
To be totally clear, Buffett made one of the most direct predictions of his entire career: "Now is the time to invest and get rich." Buffett himself was buying shares of The Washington Post (NYSE: WPO) and advertising agency Interpublic (NYSE: IPG).

(Comment from Trendsbridge: The circumstances are very different nowadays and History does not always repeat itself. But America is an Economic Powerhouse and a leading economic force, and there is no doubt they will get the present problems under control. The Bush years turned out to be quite messy and that's a main part of this situation.)