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About Me

Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!

Friday, May 20, 2011

Stock Market -- Fundamental Bullet Points

> Weekly cyclical coincident indicator trending lower since early Apr. on weaker industrial
commodities prices and higher unemployment insurance claims. SP 500 has been flat over same
period. Players paying less attention to spike in claims, await the monthly jobs #.

> Monthly earnings indicator lost momentum in Apr. but remains well above year ago level.

> Oil above $95 bl. has bothered the market.

> P/e ratio on "500" continues its slow fade. Earnings have been running well ahead of real
economy, inducing some caution.

> Core fundamentals set to accelerate a fade process after Jun. 30, when monetary liquidity
gains from QE2 may terminate. No sell signal in offing, but highly positive return vs. risk profile
will see some deterioration.

> High visibility liquid reserves -- money market funds -- now far under early 2009 levels
when market bottomed.

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