… and everybody cheers … close to being unbelievable …
Buffett offers to take on “all” Muni Bonds … the least risky and juciest of the bond insurers’ portfolios …
Good move for him … but bad move for the bond insurers … even he expects them to PAY UP for this favor to him …
But […]

Welcome to February … After a horrible month … everybody buys …
Here is why …
1. Statistics … If you take the 10 worst Januarys of all time, February average performance is positive and the average additional loss for the year is ONLY around 1%
2. If you battle against your benchmark … just […]

We survived January … and it was NOT the worst start of a year … as we recovered thanks to Uncle Ben …
January was down “only” 6.3% (S&P) … Nasdaq was down 9.9%.
The bond insurer problem still the tail wagging the dog …
Yesterday, CNBC spread rumours, that S&P will downgrade SOME of the bond […]

It could be so “easy” …
We understand, that the FED is fighting to keep the air in the stock market. Because the economy might not be able to withstand the double whammy HOUSING and EQUITIES down the drain.
If I get the Barron’s story on MBIA right (pls. read here) , the problem could be payable […]

Even the European equity markets give up today, selling off around 7% (!!!) on an US holiday … wow
We were not able to go that low last year on very bad news and more uncertainty, now … seemingly ready to have a bounce after 3 down weeks to get the year started, the market jumps […]

As I am a trader, I am always interested in both sides, the bullish and the bearish.
Funny and interestingly enough, sometimes the bleakest outlook creates the best (buying) opportunities.
Today afternoon, I read the title story of tomorrow’s edition of BARRON’S … not really known to the world as a bullish subjective magazine
Here are […]

Bond insurer ACA’s rating was slashed by S&P from A to CCC in December, but they gave them a lifeline, which expired Friday. If the CCC rating now becomes effective, it will create the next round of write offs at financials.
Friday now, Fitch cut Ambac’s rating from AAA to AA. Moody’s warned last Wednesday, that […]

Here the 2008 main investment themes as I see them … as expected … EIGHT of them
1. Housing Sector
The housing sector keeps plummeting and no relief yet to be expected. November figures showed that the seasonally adjusted annual rate of 647.000 new home sales (the number is expected to be revised even […]