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JPMorgan Chase Agrees to buy Bear Stearns
posted 03.17.2008 at 12:03 p.m. by bill
JPMorgan Chase has agreed to buy rival investment bank Bear Stearns for $2.00 per share (Bear’s stock traded as high as $160.00 just 15 months ago).
Please click here for a brief piece related to that event and the markets.
permalink | posted in: Market Alert
March Monthly Commentary Now Posted
posted 03.06.2008 at 3:12 p.m. by bill
Market commentary for March is now posted in the Analysis & Commentary section.
Abstract:
Two fears currently overhang the US economy: recession and inflation. The troubling prospects for a long-running recession and spiraling inflation suggest no quick solution to our financial woes. It started months ago, even years ago, when interest rates encouraged “lenders” to provide money to anyone who could fog a mirror. Irrational exuberance has unraveled into irrational exasperation wherein the financial markets are frozen; finding money is very difficult. The backdrop of frozen credit, akin to clogged plumbing, holds a key to future market recovery. At the moment, it appears this crisis is in slow motion; the credit pipeline is stubbornly plugged and flow is not easily restored. As the clog begins to move, so too will be better days for the stock market.
Other Interesting Thoughts:
Serial Bubbles – The tech bubble peaked in 2000; money then flowed to housing (low interest rates) peaking in 2006; money now flowing into emerging markets and commodities (in particular), which seems priced at irrational exuberant heights. Warning: don’t invest by following the herd or emotions.